DABUR CASE STUDYPresented by:Gaurav Gupta (29)Kiran Jain (35)Shilpa Kher (43)Ranjana Mandal (50)MARKETING MANAGEMENT

AGENDADabur The BrandProduct OfferingsBrand Equity-AnalysisBrand EquityWhy Restructuring?Branding strategySWOT AnalysisMarketing Mix

Dabur India is the 4th Largest FMCG Company in IndiaLegacy of over 100 yearsStrategic Business Units in Health care, Personal care and Food productsDabur has a turnover of Rs.1899.57 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and HajmolaBottom Line Driven CompanyProduct marketed in over 50 countriesLeader in Herbal Digestives with 90% market share

PRESENT SCENARIO

Established : 1884Founder : Dr. S K BurmanBasic Motive : Manufacture of Ayurvedic DrugsAchieved : By setting up manufacturing units and setting up Research and Development LabsExpanded its product line in the mid 1900s by launching Dabur Hair Oil and ChyawanprashAdded Oral Care Products in the 1970sShifted base from Kolkata to New Delhi in 1972Launched Hajmola tablet in 1978

DABUR -THE BRAND

In 2004, restructured its portfolio and structured itself into three main SBUsHas 5 power brands under its portfolioEntered new markets like the Juice segment, branded packaged soups segmentDeveloped its Oral Care MarketIncreasing its geographical spreadAims at doubling its revenue and profit by the end of 2009-2010

DABUR -THE BRAND (contd)

PRODUCT OFFERINGSPERSONAL CARE SEGMENT :Hair Care Oil and Shampoo (VATIKA)Skin Care (FAIRENESS FACE PACK)Oral Care (DABUR RED GEL AND TOOTHPASTE)

FOODS PRODUCT RANGE:Juice ( REAL/ REAL ACTIV)Dabur HoneyHommade (Packaged Soups)

PRODUCT OFFERINGS (contd)AYURVEDIC HEALTH PRODUCTS:Digestive Segment (HAJMOLA)Dabur ChyawanprashPudin HaraAYURVEDIC DRUGSPHARMACEUTICALS

BRAND EQUITYThe Brand Equity of Dabur can be judged by the model BRAND ASSET VALUATORFour Key components :DifferentiationRelevanceEsteemKnowledgeAs Dabur is a well- established brand all the four components are highHERBAL has been Daburs Brand equity since centuries

HOW DABUR BUILD ITS BRAND EQUITY?Identities making up the brand- Choice of its logo, symbol, slogan, packaging

Marketing Activities

Associations of the brand

WHY RESTRUCTURING?Image : Ayurvedic CompanyAssociation: 35 - plus age groupProblems :Diversified into too many product rangesImageAssociation with a particular age group and hence losing on the other potential customersLower Sales and Profits

THE RESTRUCTURING PROCESSCut down on all its low Contribution BrandPositioned itself as an Herbal specialist in the FMCG sectorSet Higher TargetsIdentified Growth DriversFilling up the gaps in Oral Care as well as Hair Care marketSet itself a new Brand Strategy Entered new potential areas and targeted the youth as well school children

BRANDING STRATEGYChanged its branding strategy by moving from the Umbrella Strategy to the Key brand StrategyCategorized itself into five power brandsDabur (HEALTHCARE)Vatika (HAIR CARE)Anmol (PERSONAL CARE)Real ( JUICES)Hajmola (DIGESTIVE SUPPLEMENTS)

BRANDING STRATEGY (contd)PRODUCT LINE EXTENSIONIn the JUICES range Dabur introduced :Coolers (Low fruit Content)Real ( High fruit pulp Content)Real ACTIV (Health Conscious Youth)Real Juniors (for the children below 6 years of age)Real Schoolpack

WHY THESE STRATEGIES?Line Extension Strategy was adopted by Dabur because: It could attract different target audienceCould renew Interest and liking for the brand by introducing new variantsIt could increase its market shareDiversify without much riskMoved from its Core strategy and hence could give customers something better and different

POSITIONINGDabur through its diversified brands has tapped various target segments like the :YouthHealth Conscious PeopleSchool ChildrenMothersExisting Old age group

SWOT ANALYSISSTRENGTHS:Century Old CompanyEstablished BrandAyurvedic/ herbal Product lineLeader in Herbal Digestives where the product has 90% of the market shareInnovativeness in PromotionsWEAKNESS:Profitability is uneven across product line

SWOT ANALYSIS (contd)OPPORTUNITIES:Extend Vatika brand to new categories like Skin Care and body wash segmentsLaunch several OTC brandsSouthern India MarketExploring new geographical areas- local as well globalOral Care SegmentLaunching new Products like Hair oils, Herbal and Gel Toothpastes etc.

SWOT ANALYSIS (Contd)THREATS:Competition in the FMCG sector from well established namesOther fields of medicine- Allopathic and HomeopathicMarkets where Herbal products are not recognised

MARKETING MIXPRODUCT:Products have been divided into 5 power brandsQuality: High Sizes: Available in different sizesDesign: Available in Tetra Pack, Bottles, Sachets

MARKETING MIX (contd)PRICE:As, Dabur had different sub-categories it came out with variable pricing to reach each and every target segmentE.g. : One- litre bottle of Cooler (juice) was priced at Rs.50Selective Price Reduction to increase DemandIntroduction of Smaller packs at Rs.5Came out with Rs.1 sachet of Vatika Shampoo to increase market shareCutting Price to stand out against competition

MARKETING MIX (contd)PLACE :Dabur constantly kept on increasing its geographic spread to increase its sales revenuesEntered the South Indian MarketExpanding in the International MarketPresence in over 50 countries Subsidiaries established in Nepal, Nigeria, Bangladesh and PakistanFocus areas : Asia Pacific, Afghanistan, Russia and other CIS countries

MARKETING MIX (contd)PROMOTIONS :Different brands have its own marketing and advertising teamDifferent brands had different promotionsUtilized the popularity of Indian films in the domestic and global markets to promote its brandsUndertook the most advertising campaign with Mr. Bachchan endorsing Dabur brandsSigned cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products

MARKETING MIX (contd)Adopted the INTEGRATED MARKETING COMMUNICATION programme in 2003 to increase its market shareTargeted the Institutional market which included hotels and airlinesPartnered with Institutional clients to provide value added servicesHeld various contests Training sessions and workshops for food and beverage professionalsTie-up with Discovery Channel

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