Dabur India Ltd. PRESENTED BYBARUN KUMAR BRIJESH SINGH BHAVNA SINGH ASHISH KUMAR TRIPATHI ATUL SINGH ASHISH RANA

CASE STUDY MARKETING MANAGEMENT

AGENDA

Dabur The Brand Product Offerings Brand Equity-Analysis Brand Equity Why Restructuring? Branding strategy SWOT Analysis Marketing Mix

Dabur India is the 4th Legacy of over 100 years Strategic Business Units in Health care, Personal care and Food products Dabur has a turnover of Rs.1899.57 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and Hajmola Bottom Line Driven Company Product marketed in over 50 countries Leader in Herbal Digestives with 90% market share

PRESENT SCENARIO Largest FMCG Company in India

Introduction: Dabur India is the 4th Largest FMCG Company in India Legacy of over 100 years Strategic Business Units in Health care, Personal care and Food products Dabur has a marketed in over 50 countries Leader in Herbal Digestives with 90% market share Turnover of Rs.1899.57 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and Hajmola Product Bottom Line Driven Company. Leader in Herbal Digestives with 90% market share.

DABUR -THE BRAND Established : 1884 Founder : Dr. S K Burman. Basic Motive : Manufacture of Ayurvedic Drugs Achieved : By setting up manufacturing units and setting up Research and Development Labs Expanded its product line in the mid 1900s by launching Dabur Hair Oil and Chyawanprash Added Oral Care Products in the 1970s Shifted base from Kolkata to New Delhi in 1972 Launched Hajmola tablet in 1978.

DABUR -THE BRAND (contd)

In 2004, restructured its portfolio and structured itself into three main SBUs Has 5 power brands under its portfolio Entered new markets like the Juice segment, branded packaged soups segment Developed its Oral Care Market Increasing its geographical spread Aims at doubling its revenue and profit by the end of 2009-2010

Diversified Portfolio

Dabur Business category

Consumer care division

Consumer health Care division

Dabur foods Ltd

PRODUCT OFFERINGS PERSONAL 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 Honey Hommade (Packaged Soups)

PRODUCT OFFERINGS (contd) AYURVEDIC HEALTH PRODUCTS: Digestive Segment (HAJMOLA) Dabur Chyawanprash Pudin Hara AYURVEDIC DRUGS

Reinventing the Mother Logo

WHY Image : Ayurvedic Company Association: 35 - plus age group Problems : Diversified into too many product ranges Image Association with a particular age group and hence losing on the other potential customers Lower Sales and Profits

RESTRUCTURING?

RESTRUCTURIN G Cut down on all its low Contribution Brand Positioned itself as an Herbal specialist in the FMCG sector Set Higher Targets Identified Growth Drivers Filling up the gaps in Oral Care as well as Hair Care market Set itself a new Brand Strategy Entered new potential areas and targeted the youth as well school children

PROCESS

IMPACT OF THE RESTRUCTURING EXERCISE GROWTH RATE OF CHAWAYANPRASH HAS BEEN INCREASED UP TO 10%. IT ALSO HELP TO INCREASE THE SALE OF BALSARAS PRODUCT. TOOTHPOWDER OF THE SAME NAME GREW BY9.6% IN 2003-04

BRANDING STRATEGY Changed its branding strategy by moving from the Umbrella Strategy to the Key brand Strategy Categorized itself into five power brands Dabur (HEALTHCARE) Vatika (HAIR CARE) Anmol (PERSONAL CARE) Real ( JUICES) Hajmola (DIGESTIVE SUPPLEMENTS)

In 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 School pack.

BRANDING STRATEGY (contd) PRODUCT LINE EXTENSION

WHY THESE STRATEGIES? Line Extension Strategy was adopted by Dabur because: It could attract different target audience Could renew Interest and liking for the brand by introducing new variants It could increase its market share Diversify without much risk Moved from its Core strategy and hence could give customers something better and different

Dabur India Consolidated Sales 2002-062000 Sales (Rs. crore) 1500 1187.1 1000 500 0 2002-03 2003-04 2004-05 2005-06 year 1329.6 1900 1537

POSITIONING Dabur through its diversified brands has tapped various target segments like the : Youth Health Conscious People School Children Mothers Existing Old age group

SWOT ANALYSIS STRENGTHS: Century Old Company Established Brand Ayurvedic/ herbal Product line Leader in Herbal Digestives where the product has 90% of the market share Innovativeness in Promotions WEAKNESS: Profitability is uneven across product line

SWOT ANALYSIS (contd) OPPORTUNITIES: Extend Vatika brand to new categories like Skin Care and body wash segments Launch several OTC brands Southern India Market Exploring new geographical areas- local as well global Oral Care Segment Launching new Products like Hair oils, Herbal and Gel Toothpastes etc.

SWOT ANALYSIS (Contd) THREATS: Competition in the FMCG sector from well established names Other fields of medicine- Allopathic and Homeopathic Markets where Herbal products are not recognized

PRODUCT: Products have been divided into 5 power brands Quality: High Sizes: Available in different sizes Design: Available in Tetra Pack, Bottles, Sachets

Sr. No 1. 2. 3. 4. 5.

MARKETING MIXBrand Type Dabur Vatika Anmol Real Hajmola Healthcare (Chyawanprash) Herbal Beauty Brand Personal Care Market Foods Digestives

MARKETING MIX (contd) Targeted the Institutional market which included hotels and airlines. Partnered with Institutional clients to provide value added services. Held various contests. Training sessions and workshops for food and beverage professionals. Tie-up with Discovery Channel.

The Brand Dabur turn-around Why? Overall slowdown in FMCG sector Stiff competition To target young India- the largest segment Modernize old Brand Equity- intangible asset Streamline/Synergize business operations

Special focus on South India South India contributed only 7% for Dabur Contributed 25% in overall FMCG sector Dedicated marketing team created Three step approach: POS promotion and better stocking practice Customized packaging and commercials Customized product launch Sales increased from 7% to 10% (2002-06)

Other initiatives worth mentioning Dabur International Ltd, Dubai 2003 11.4% of total sales 2005-06 switched to E-Procurement Inorganic Expansion; Balsara

DABUR FUTURE OUTLOOK DABUR PLANNED TO LAUNCH SEVERAL OTC HEALTH CARE BRAND. THE COMPNAY AIMS TO EXPAND ITS PRODUCT PORTFOLIO AND GAIN FOOTHOLD IN HEALTH FOOD BEVERAGE MARKET. THE COMPNAY HAD DECIDED TO MERGE THE FAMILY PRODUCT & HEALTHCARE PRODUCT DIVISION IN TO ONE. COMPNAY HAS ALSO BEEN TRYING TO INCREASE THE MARKET OF NEW FLAVOURS BISCUITS AND INSTALLING VENDING MACHINE. DABUR PLANS TO INVEST Rs100 CRORE FOR RAMPING UP CAPACITY AT ITS UTTRANCHAL FACILITY. CURRENT TURNOVER OF DABUR IS CLOSE TO Rs 1000 CRORE & IT AIM TO DOUBLE IT.

The Flip Side Indiscriminate use of the brand across price points may dilute the brand equity. A finger in many pies Brand worth still not 100% satisfactory

QUESTIONS(1).HOW WOULD THE RESTRUCTURING EXERCISE HELP DABUR? WAS IT RIGHT MOVE TO REALIGN ITS BRAND ARCHITECTURE,AND NOT USE DABUR AS AN UMBRELLA NAME ON ITS PRODUCTS?

ANSWER: It will help to Moved away from Umbrella branding strategy Retaining Dabur as corporate brand identity

Opt out of non-profiting sectors Crystal Clear Brand and Product Differentiation Consolidate Herbal and Natural differentiation strategy

(2).HOW CAN DABUR ASSES THE DEGREE OF SUCCESS OF ITS RESTRUCTURING EXERCISE?WHAT KIND OF RESEARCH CAN BE CONDUCTED FOR THIS PURPOSE? ANSWER: Enter new category; innovate offerings. Repositioning as FMCG company. Moved away from Umbrella branding strategy. Retaining Dabur as corporate brand identity. Enter organized retail with exclusive customized formats Expansion Opt out of non-profiting sectors Crystal Clear Brand and Product Differentiation Consolidate Herbal and Natural differentiation strategy

(3).IS HERBAL A RELEVANT DIFFRENTIATING FACTOR FOR THE CUSTOMER?IF YES ,HAS DABUR BEEN ABLE TO ESTABLISH ITSELF AS THE MOST PREFERABLE HERBAL BRAND IN INDIA .WHAT SHOULD DABUR DO TO STRENGTHEN ITS BRAND IN THE FACE OF SUCH STRONG COMPETITORS? ANSWER No, it has not been able to establish itself as the most preferable herbal brand in India. Dabur should do to Changing Demography Growth in output power Growth in rural and urban demand growth in organized retail sector

(4).Dabur is using the inorganic route of expansion route to enter in to new

product categories. is it spreading its resources too thin? should it enter in to so many FMCG categories without consolidating its existing portfolio? what is the likely future of these acquired brand as well as the existing brands of dabur ?which of these brand are likely to be most successful and why? ANSWER:Yes, it is spreading its resource too thin. It should enter in to so many FMCG product like HLL,ITC,MARICO ETC. 1.Hajmola, one of the strongest brands in Daburs portfolio 2.Chyawanprash one of the strongest brand . 3.Dabur honey. 4.Pudinhara 5.Real become the master brand of food 6.vatika. 7.Glucon-d 8.Dabur anmol

Thank You! ANY QUERY?