Dabur Case Study

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Dabur Case Study

  1. 1. AGENDA <ul><li>Dabur – The Brand </li></ul><ul><li>Product Offerings </li></ul><ul><li>Brand Equity-Analysis </li></ul><ul><li>Brand Equity </li></ul><ul><li>Why Restructuring? </li></ul><ul><li>Branding strategy </li></ul><ul><li>SWOT Analysis </li></ul><ul><li>Marketing Mix </li></ul>
  2. 2. <ul><li>Dabur India is the 4 th Largest FMCG Company in India </li></ul><ul><li>Legacy of over 100 years </li></ul><ul><li>Strategic Business Units in Health care, Personal care and Food products </li></ul><ul><li>Dabur has a turnover of Rs.1899.57 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and Hajmola </li></ul><ul><li>Bottom Line Driven Company </li></ul><ul><li>Product marketed in over 50 countries </li></ul><ul><li>Leader in Herbal Digestives with 90% market share </li></ul>PRESENT SCENARIO
  3. 3. <ul><li>Established : 1884 </li></ul><ul><li>Founder : Dr. S K Burman </li></ul><ul><li>Basic Motive : Manufacture of Ayurvedic Drugs </li></ul><ul><li>Achieved : By setting up manufacturing units and </li></ul><ul><li>setting up Research and Development Labs </li></ul><ul><li>Expanded its product line in the mid 1900’s by launching Dabur Hair Oil and Chyawanprash </li></ul><ul><li>Added Oral Care Products in the 1970’s </li></ul><ul><li>Shifted base from Kolkata to New Delhi in 1972 </li></ul><ul><li>Launched Hajmola tablet in 1978 </li></ul>DABUR -THE BRAND
  4. 4. <ul><li>In 2004, restructured its portfolio and structured itself into three main SBU’s </li></ul><ul><li>Has 5 power brands under its portfolio </li></ul><ul><li>Entered new markets like the Juice segment, branded packaged soups segment </li></ul><ul><li>Developed its Oral Care Market </li></ul><ul><li>Increasing its geographical spread </li></ul><ul><li>Aims at doubling its revenue and profit by the end of 2009-2010 </li></ul>DABUR -THE BRAND (contd)
  5. 5. PRODUCT OFFERINGS <ul><li>PERSONAL CARE SEGMENT : </li></ul><ul><li>Hair Care Oil and Shampoo (VATIKA) </li></ul><ul><li>Skin Care (FAIRENESS FACE PACK) </li></ul><ul><li>Oral Care (DABUR RED GEL AND TOOTHPASTE) </li></ul><ul><li>FOODS PRODUCT RANGE: </li></ul><ul><li>Juice ( REAL/ REAL ACTIV) </li></ul><ul><li>Dabur Honey </li></ul><ul><li>Hommade (Packaged Soups) </li></ul>
  6. 6. PRODUCT OFFERINGS (contd) <ul><li>AYURVEDIC HEALTH PRODUCTS: </li></ul><ul><li>Digestive Segment (HAJMOLA) </li></ul><ul><li>Dabur Chyawanprash </li></ul><ul><li>Pudin Hara </li></ul><ul><li>AYURVEDIC DRUGS </li></ul><ul><li>PHARMACEUTICALS </li></ul>
  7. 7. BRAND EQUITY <ul><li>The Brand Equity of Dabur can be judged by the model BRAND ASSET VALUATOR </li></ul><ul><li>Four Key components : </li></ul><ul><li>Differentiation </li></ul><ul><li>Relevance </li></ul><ul><li>Esteem </li></ul><ul><li>Knowledge </li></ul><ul><li>As Dabur is a well- established brand all the four components are high </li></ul><ul><li>HERBAL has been Dabur’s Brand equity since centuries </li></ul>
  8. 8. HOW DABUR BUILD ITS BRAND EQUITY? <ul><li>Identities making up the brand- </li></ul><ul><li>Choice of its logo, symbol, slogan, packaging </li></ul><ul><li>Marketing Activities </li></ul><ul><li>Associations of the brand </li></ul>
  9. 9. WHY RESTRUCTURING? <ul><li>Image : Ayurvedic Company </li></ul><ul><li>Association: 35 - plus age group </li></ul><ul><li>Problems : </li></ul><ul><li>Diversified into too many product ranges </li></ul><ul><li>Image </li></ul><ul><li>Association with a particular age group and hence losing on the other potential customers </li></ul><ul><li>Lower Sales and Profits </li></ul>
  10. 10. THE RESTRUCTURING PROCESS <ul><li>Cut down on all its low Contribution Brand </li></ul><ul><li>Positioned itself as an Herbal specialist in the FMCG sector </li></ul><ul><li>Set Higher Targets </li></ul><ul><li>Identified Growth Drivers </li></ul><ul><li>Filling up the gaps in Oral Care as well as Hair Care market </li></ul><ul><li>Set itself a new Brand Strategy </li></ul><ul><li>Entered new potential areas and targeted the youth as well school children </li></ul>
  11. 11. BRANDING STRATEGY <ul><li>Changed its branding strategy by moving from the Umbrella Strategy to the Key brand Strategy </li></ul><ul><li>Categorized itself into five power brands </li></ul><ul><li>Dabur (HEALTHCARE) </li></ul><ul><li>Vatika (HAIR CARE) </li></ul><ul><li>Anmol (PERSONAL CARE) </li></ul><ul><li>Real ( JUICES) </li></ul><ul><li>Hajmola (DIGESTIVE SUPPLEMENTS) </li></ul>
  12. 12. BRANDING STRATEGY (contd) <ul><li>PRODUCT LINE EXTENSION </li></ul><ul><li>In the JUICES range Dabur introduced : </li></ul><ul><li>Coolers (Low fruit Content) </li></ul><ul><li>Real ( High fruit pulp Content) </li></ul><ul><li>Real ACTIV (Health Conscious Youth) </li></ul><ul><li>Real Juniors (for the children below 6 years of age) </li></ul><ul><li>Real Schoolpack </li></ul>
  13. 13. WHY THESE STRATEGIES? <ul><li>Line Extension Strategy was adopted by Dabur because: </li></ul><ul><li>It could attract different target audience </li></ul><ul><li>Could renew Interest and liking for the brand by introducing new variants </li></ul><ul><li>It could increase its market share </li></ul><ul><li>Diversify without much risk </li></ul><ul><li>Moved from its Core strategy and hence could give customers something better and different </li></ul>
  14. 14. POSITIONING <ul><li>Dabur through its diversified brands has tapped various target segments like the : </li></ul><ul><li>Youth </li></ul><ul><li>Health Conscious People </li></ul><ul><li>School Children </li></ul><ul><li>Mothers </li></ul><ul><li>Existing Old age group </li></ul>
  15. 15. SWOT ANALYSIS <ul><li>STRENGTHS: </li></ul><ul><li>Century Old Company </li></ul><ul><li>Established Brand </li></ul><ul><li>Ayurvedic/ herbal Product line </li></ul><ul><li>Leader in Herbal Digestives where the product has 90% of the market share </li></ul><ul><li>Innovativeness in Promotions </li></ul><ul><li>WEAKNESS: </li></ul><ul><li>Profitability is uneven across product line </li></ul>
  16. 16. SWOT ANALYSIS (contd) <ul><li>OPPORTUNITIES: </li></ul><ul><li>Extend Vatika brand to new categories like Skin Care and body wash segments </li></ul><ul><li>Launch several OTC brands </li></ul><ul><li>Southern India Market </li></ul><ul><li>Exploring new geographical areas- local as well global </li></ul><ul><li>Oral Care Segment </li></ul><ul><li>Launching new Products like Hair oils, Herbal and Gel Toothpastes etc. </li></ul>
  17. 17. SWOT ANALYSIS (Contd) <ul><li>THREATS: </li></ul><ul><li>Competition in the FMCG sector from well established names </li></ul><ul><li>Other fields of medicine- Allopathic and Homeopathic </li></ul><ul><li>Markets where Herbal products are not recognised </li></ul>
  18. 18. MARKETING MIX <ul><li>PRODUCT: </li></ul><ul><li>Products have been divided into 5 power brands </li></ul><ul><li>Quality: High </li></ul><ul><li>Sizes: Available in </li></ul><ul><li>different sizes </li></ul><ul><li>Design: Available in Tetra Pack, Bottles, </li></ul><ul><li>Sachets </li></ul>Sr.No Brand Type 1. Dabur Healthcare (Chyawanprash) 2. Vatika Herbal Beauty Brand 3. Anmol Personal Care Market 4. Real Foods 5. Hajmola Digestives
  19. 19. MARKETING MIX (contd) <ul><li>PRICE: </li></ul><ul><li>As, Dabur had different sub-categories it came out with variable pricing to reach each and every target segment </li></ul><ul><li>E.g. : One- litre bottle of Cooler (juice) was priced at Rs.50 </li></ul><ul><li>Selective Price Reduction to increase Demand </li></ul><ul><li>Introduction of Smaller packs at Rs.5 </li></ul><ul><li>Came out with Rs.1 sachet of Vatika Shampoo to increase market share </li></ul><ul><li>Cutting Price to stand out against competition </li></ul>
  20. 20. MARKETING MIX (contd) <ul><li>PLACE : </li></ul><ul><li>Dabur constantly kept on increasing its geographic spread to increase its sales revenues </li></ul><ul><li>Entered the South Indian Market </li></ul><ul><li>Expanding in the International Market </li></ul><ul><li>Presence in over 50 countries </li></ul><ul><li>Subsidiaries established in Nepal, Nigeria, Bangladesh and Pakistan </li></ul><ul><li>Focus areas : Asia Pacific, Afghanistan, Russia and other CIS countries </li></ul>
  21. 21. MARKETING MIX (contd) <ul><li>PROMOTIONS : </li></ul><ul><li>Different brands have its own marketing and advertising team </li></ul><ul><li>Different brands had different promotions </li></ul><ul><li>Utilized the popularity of Indian films in the domestic and global markets to promote its brands </li></ul><ul><li>Undertook the most advertising campaign with Mr. Bachchan endorsing Dabur brands </li></ul><ul><li>Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products </li></ul>
  22. 22. MARKETING MIX (contd) <ul><li>Adopted the INTEGRATED MARKETING COMMUNICATION programme in 2003 to increase its market share </li></ul><ul><li>Targeted the Institutional market which included hotels and airlines </li></ul><ul><li>Partnered with Institutional clients to provide value added services </li></ul><ul><li>Held various contests </li></ul><ul><li>Training sessions and workshops for food and beverage professionals </li></ul><ul><li>Tie-up with Discovery Channel </li></ul>
  23. 23. <ul><li>THANK YOU!!!! </li></ul>

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