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dabur hajmola
Dabur is one of India's leading FMCG companies known for its Ayurvedic and natural products portfolio. It has five flagship brands with distinct identities covering healthcare, personal care, and beverages. Dabur was established in 1884 and has grown over the decades through new product launches, acquisitions, and repositioning itself as an FMCG company in 2004. It uses an expansion, acquisition, innovation, and regional branding strategy. Hajmola is one of Dabur's major brands and digestive product with over 60% market share that is promoted through integrated strategies targeting rural consumers. Porter's five forces analysis indicates threats from substitutes but lower risks of new competition or supplier power given Dab
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dabur hajmola
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- 2. Introduction and Timeline Repositioning and Vision Strategy used and SBU structure Portfolio and Acquisition Product and its Timeline Michael Porter STP and Ansoff matrix Pricing policy and BCG policy Branding and Distribution Channel Promotional strategy and Rural marketing Competitors and Potential markets SWOT and Recommendations 2
- 3. DIL is one of the leading FMCG companies in India and the world's largest Ayurvedic and natural healthcare company Dabur is today among India's most trusted names. The company„s FMCG portfolio includes 5 flagship brands with distinct brand identities: “Dabur” - Natural Healthcare Products “Vatika” - Premium Personalcare Products “Anmol” - Affordable Personal care Products “Hajmola” - Digestives “Real Activ” – Fruit Based Drinks 3
- 4. 1884 : birth of dabur 1896 : first production unit 1940 : launch of dabur amla hair oil 1994 : raises first public issue 2000 : crosses rs 1000 crore turnover 2004-05 : dabur decided to reposition itself as an FMCG company 2005 : accqusition of balsara group 2007 : became the third most respected fmcg companies in india (Business world november 2007) 2008 : START NEW “U” RETAIL CHAIN UNDER H&V STORE LIMITED. 4
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- 6. Overall slowdown in FMCG sector Stiff competition To target young India- “ the largest segment” Modernize old Brand Equity- “ intangible asset” Streamline/Synergize business operations 6
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- 8. Enter new category; innovate offerings Repositioning as FMCG company Moved away from umbrella branding strategy Retaining dabur as corporate brand identity 8
- 9. “Dedicated to thehealth and well being of every househould” 9
- 10. Four fold strategy Expansion Acquisition Innovation Regional branding Promotional strategy Distribution strategy 10
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- 15. Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales Leveraging the 'Natural' preference among local consumers to increase share in perosnal care categories Focus markets: - GCC - Egypt - Nigeria - Bangladesh - Nepal - US 15
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- 18. Hajmola candy Hajmola Mast Masala Hajmola Tablets Hajmola Anardana Hajmola Yumstick 18
- 19. 2010 – Launch of 1989 – Hajmola Launch of Kaccha Aam Hajmola 1978 – Candy Launch of Hajmola Tablet 1884 – Dabur established
- 20. • Revenues Rs. 3416 Cr • Market Capitalization Over Rs. 16000 Cr • Hajmola One of the five major brands of Dabur • Hajmola Digestive Tablets 60% market share of digestive tablets • Rural markets 75% contribution to their sales 20
- 21. Demographics Geographic Behavior Age & Income Rural/Urban & Kind of users •Candy: Kids b/w 4- Country • Regular/Loyal Users 12 years • Tablets & Anardana of Dabur •Tablets: All age and for rural markets income groups • Candy: Rural & Semi Urban 21
- 22. “establish Hajmola asa hygienic, tasty and easy-to- consume post-meal digestive” & „Post meal necessity‟ • Positioned as a healthy product on the basis of “ingredients” - An ayurvedic product people‟s implicit faith • Positioned as a low priced product (affordable) • Initially positioned as a tablet for grown ups With time positioned itself as a more youthful product, with launch of candies • „post-meal necessity‟ by tapping the roadside eateries 22
- 23. Hajmola Growth Strategy Ansoff Matrix Existing Products New Products Market Penetration – Dabur Product Development – has to increase its existing Other products like Pudin market share in urban Hara, Hingoli, etc. in the Existing Market markets and capturing digestive products market market share from competitors Market Development – Diversification –Introduction Introduced various measures of Hajmola Candy in order to to capture new markets such appeal to a younger New Markets as interactive promotions consumer segment with school students to capitalise on the youth segment 23
- 24. Integrated pricing policy Penetrative pricing in the cash cows like Health supplement, digestives and Home care Premium pricing in dog category like skin and baby care 24
- 25. It is based on the combination of market growth and market share relative to the next best competitor It is based on the observation that a company’s business unit can be classified into four categories: Stars Question marks Cash cows Dogs 25
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- 27. Question marks (?) most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Investments should be high for question marks. Why question marks ? Analysis with dabur india- Chyawanprash 27
- 28. Stars stars are leaders in business. High growth, high market share. Effort should be made to hold the market share otherwise the star will become a cash cow. Analysis with dabur india- Dabur glucose-32% (growth rate) Dabur honey-26%(growth rate) Meswak-39%(growth rate) 28
- 29. CASH COW They are foundation of the company and often the stars of yesterday. They extract the profits by investing as little cash as possible. They are located in an industry that is mature, not growing or declining. Analysis with dabur india- Chyawan prash Hajmola Real 29
- 30. DOGS Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage. 30
- 31. A banyan tree has been the logo of the company for since its inception. The banyan tree stands for what has not been achieved. The company has been branching out. It has seven brands in the oral care category, nine in the hair care space and six brands in foods. 31
- 32. People could relateto the product immediately because of the 125 year long trust in Dabur Brand has innovated to keep up with the evolution of consumers 32
- 33. Dabur is tryingto capture market by launching product with a regional twist. Example : Planned an agressive marketing strategy to increase its sales in the four southern states. Currently 10 per cent sales of consumer care products in the south Renaming them in local languages Come out with special products with distinct local flavour Even roping in local celebrities as brand ambassadors, the company is adopting every trick in the book to drive deeper into the south indian markets In tamil nadu- sivappu pal podi- lal dantmanjan. The Astra training consultancy module- Bengali, Tamil, Telugu, Malayalam and Kannada. 33
- 34. T.V comercial, like, old, kapil dev, afridi (pakistan),spoof) Radio Newspaper Wall panting Video vans Sales propotion Contest in melas or haats 34
- 35. Dabur heavily advertised their product through various contests- Dabur amla sunder Dabur amla susheel Dabur yogya pratiyogita Hajmola bahana championship Melodious voice of punjab Dabur gulabari miss fresh face 35
- 36. • For advertising Amitabh Bachan presently and Kapil Dev in the 1980‟s • Consumer connect Initiatives: Using Dhabas and Road side restaurants for publicity and extending reach • Promoted as a product that completes one‟s meal • Trendy and catchy tagline like: • “hazam sab, chahe jab” • “hajmola kare khana complete” • Having pictures of children on the sachets of candies •Dabur's Hajmola and HUL's Vaseline have resorted to spoofs or tried to piggy ride on the popularity of a rival brand or to cash in on a controversy. 36
- 37. Dabur‟s promotional focus:75% of total sales from rural markets • Increasing Brand awareness through fairs and festivals like the Kumbh Mela and haats & holding reality shows • Project Astra: Enhancing distribution through advanced and local sales training • Hajmola: Dress Me up campaign
- 38. C&F Agents Distributors Retailers Mother Depots Raw Material Suppliers Manufacturing Location Institutions Intermediate Products Export Customers A mix of 4, 3,1 and 0 levels of distribution 38
- 39. 32 % 32 % Retail Outlets Medical Shops Kirani Shops Canteens 8% General Store 4% 24% 39
- 40. Porter‟s Five ForcesModel
- 41. Threat of SubstituteProducts ◦ Dabur Hajmola a pioneer in its market the buyer propensity to switch brands is low ◦ Competition from parent company product like Pudin hara Threat of Mobility ◦ Dabur Hajmola 60% market share threat of Mobility is low ◦ Long Established Brand First Mover advantage Industry Rivalry ◦ Competition from Local markets and other candy brands ◦ Product attributes of Hajmola provided an advantage over competition
- 42. Supplier Power ◦ LowPrice product Dabur Hajmola has to control its costs ◦ Product is agriculture based suppliers are readily available Buyer Power ◦ Bargaining leverage is due to pricing of the product ◦ Scarcity of equivalent competitive products in the market drives bargaining power of consumers lower 42
- 43. •Local vendors whosell digestive Local Markets products like ajjwain, amla, churan Other Candy •Substitute candies like candyman from ITC, eclairs from Cadbury Makers •Dabur hingoli and Pudin hara Intra-Brand Pharmaceutical • Enzymes • Digestive Medicines Digestive Products 43
- 44. • More PenetrationPossible Urban Markets • Restaurants like BBQ can have them as after meal tablets • Have tie ups to serve hajmola Railway Catering after every meal Agencies • Potentially a huge market • Introducing new flavors like New Flavors ajjwain and black salt 44
- 45. Strengths Weaknesses • 60% Market Share • Lack of innovative culture • Parent Brand has 125 years of history • Brand is losing its relevance • Pan India presence Dabur Hajmola Opportunities Threats • Increasing cost of R&D has led to great • Local Markets with products like potential for outsourcing churan, ajjwain, etc. • Penetration in global markets with new • Inability to cope with technical culture,like entry into pakistan’s market advancements in industry 45
- 46. The FMCG environment in India and overseas is competition intensive and companies need to focus on branding, product development, distribution and innovation to ensure their survival. It is probably better for a company to create a few champion brands rather than dissipate its energies on too many products, because that is what will result in sustainable margins," says Manish Saigal, associate director, KPMG. Dabur isn't the category leader in any of the consumer product categories where it has a presence: it is No. 4 in shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps. But that doesn't appear to bother the company overmuch -- it is too busy launching new products. The company should discard products where volumes aren't growing fast enough to deliver margins. Dabur isn't ready to be quite so brutal with Meswak (also inherited from Balsara), but the company is working on new ways to rejuvenate and promote the brand. 46
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