Marketing StrategyDabur Hajmola

Group 9

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

Flow of presentation

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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

Introduction

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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.

DABUR INDIA LIMITED

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Portfolio

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Overall slowdown in FMCG sector

Stiff competition To target young India- “ the largest segment”

Modernize old Brand Equity- “ intangible asset”

Streamline/Synergize business operations

“ The Brand Dabur” turn-around Reasons?

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Reinventing the Mother Logo

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Enter new category; innovate offerings

Repositioning as FMCG company

Moved away from umbrella branding strategy

Retaining dabur as corporate brand identity

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“Dedicated to the health and well being of every househould”

Vision

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Strategy used by dabur

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Four fold strategy

Expansion

Acquisition

Innovation

Regional branding

Promotional strategy

Distribution strategy

Dabur SBU’s Structure

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CCD structure

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Dabur Power Brands

Overview of Dabur Products

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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

International Business Division (IBD)

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World wide presence

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Acquisition

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ProductHajmola

candy

Hajmola

Mast Masa

laHajmol

a Tablets

Hajmola

Anardana

Hajmola

Yumstick

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Timeline

1884 –Dabur established

1978 –Launch of Hajmola Tablet

1989 –Launch of Hajmola Candy

2010 –Launch of Hajmola Kaccha Aam

Key Information

• 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

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Segmentation & Target Market

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DemographicsAge & Income• Candy: Kids

b/w 4-12 years

• Tablets: All age and income groups

GeographicRural/Urban & Country • Tablets &

Anardana for rural markets

• Candy: Rural & Semi Urban

BehaviorKind of users•

Regular/Loyal Users of Dabur

Positioning“establish Hajmola as a 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

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Existing Products New Products

Existing Market

Market Penetration – Dabur has to increase its existing market share in urban markets and capturing market share from competitors

Product Development – Other products like Pudin Hara, Hingoli, etc. in the digestive products market

New Markets

Market Development –Introduced various measures to capture new markets such as interactive promotions with school students to capitalise on the youth segment

Diversification –Introduction of Hajmola Candy in order to appeal to a younger consumer segment

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Hajmola Growth Strategy Ansoff Matrix

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

Pricing Policy

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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

The BCG growth - share matrix

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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

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Starsstars 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)

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CASH COWThey 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

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DOGSDogs 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.

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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.

Branding

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People could relate to the product immediately because of the 125

year long trust in Dabur

Brand has innovated to keep up with the evolution of consumers

Branding“Hazam sab, chahe jab” “Hajmola kare khana complete” “Chatpata swad, jhatpat aaram”

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Dabur is trying to 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.

Regional Branding

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T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)

Radio

Newspaper

Wall panting

Video vans

Sales propotion

Contest in melas or haats

Promotion strategy

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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

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Promotional Strategy

• 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.

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Key focus: Rural MarketingDabur’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

Distribution ChannelsRaw Material Suppliers

Manufacturing Location

C&F Agents

Distributors

Retailers

Mother Depots

Institutions

Export Customers

Intermediate Products

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A mix of 4, 3,1 and 0 levels of distribution

Availability

Retail OutletsMedical ShopsKirani ShopsCanteens General Store

32 %32 %

8 %

24%

4 %

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Micro EnvironmentPorter’s Five Forces Model

Threat of Substitute Products

◦ 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

Supplier Power

◦ Low Price 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

Contd….

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Competitors

Local Markets

•Local vendors who sell digestive products like ajjwain, amla, churan

Other Candy Makers

•Substitute candies like candyman from ITC, eclairs from Cadbury

Intra-Brand •Dabur hingoli and Pudin hara

Pharmaceutical Digestive Products

• Enzymes• Digestive Medicines

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Potential Markets

Urban Markets

•More Penetration Possible•Restaurants like BBQ can have them as after meal tablets

Railway Catering Agencies

•Have tie ups to serve hajmola after every meal•Potentially a huge market

New Flavors

•Introducing new flavors like ajjwain and black salt

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SWOT Analysis Strengths

60% Market ShareParent Brand has 125 years of historyPan India presence

Dabur Hajmola

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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.

Recommendations

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Thank You

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