Slide 1

Marketing StrategyDabur HajmolaGroup 91Introduction and TimelineRepositioning and VisionStrategy used and SBU structurePortfolio and AcquisitionProduct and its TimelineMichael PorterSTP and Ansoff matrixPricing policy and BCG policyBranding and Distribution ChannelPromotional strategy and Rural marketingCompetitors and Potential marketsSWOT and RecommendationsFlow of presentation2DIL 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 companys 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 DrinksIntroduction31884 : birth of dabur1896 : first production unit1940 : launch of dabur amla hair oil1994 : raises first public issue2000 : crosses rs 1000 crore turnover2004-05 : dabur decided to reposition itself as an FMCG company2005 : accqusition of balsara group2007 : 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

4

Portfolio5Overall 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? 6Reinventing the Mother Logo 7

Enter new category; innovate offerings

Repositioning as FMCG company

Moved away from umbrella branding strategy

Retaining dabur as corporate brand identity 8

Dedicated to the health and well being of every househouldVision 9Strategy used by dabur10Four fold strategy

Expansion

Acquisition

Innovation

Regional branding

Promotional strategy

Distribution strategy

Dabur SBUs Structure11CCD structure12

Dabur Power Brands

Overview of Dabur Products

1414Growing 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) 15World wide presence16

Acquisition17Product

18TimelineKey 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 sales20Segmentation & Target Market

2121Positioningestablish 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 peoples 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

22Existing ProductsNew ProductsExisting MarketMarket Penetration Dabur has to increase its existing market share in urban markets and capturing market share from competitorsProduct Development Other products like Pudin Hara, Hingoli, etc. in the digestive products marketNew MarketsMarket 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 segment23Hajmola Growth Strategy Ansoff MatrixIntegrated pricing policy

Penetrative pricing in the cash cows like Health supplement, digestives and Home care

Premium pricing in dog category like skin and baby carePricing Policy24It 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 companys business unit can be classified into four categories:

Stars Question marksCash cowsDogs

The BCG growth - share matrix

25

26Question 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

27Starsstars 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)

28CASH 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 prashHajmolaReal

29DOGSDogs 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.

30A 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 31People could relate to the product immediately because of the 125 year long trust in DaburBrand has innovated to keep up with the evolution of consumersBrandingHazam sab, chahe jab Hajmola kare khana complete Chatpata swad, jhatpat aaram

32FMCG major Dabur India has planned an agressive marketing strategy to increase its sales in the four southern states.The company, which currently has 10 per cent sales of consumer care products in the south, will rename them in local languages and also come out with special products with distinct local flavour to capture a larger market share."Dabur India is donning a local garb to drive sales in the South. From rechristening brands in local languages like Tamil to creating special products and 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," a Dabur India spokesperson told PTI.

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 southRenaming them in local languagesCome out with special products with distinct local flavourEven roping in local celebrities as brand ambassadors, the company is adopting every trick in the book to drive deeper into the south indian marketsIn tamil nadu- sivappu pal podi- lal dantmanjan.The Astra training consultancy module- Bengali, Tamil, Telugu, Malayalam and Kannada.Regional Branding33T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)

Radio

Newspaper

Wall panting

Video vans

Sales propotion

Contest in melas or haatsPromotion strategy34Dabur 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

35Promotional Strategy

For advertising Amitabh Bachan presently and Kapil Dev in the 1980s Consumer connect Initiatives: Using Dhabas and Road side restaurants for publicity and extending reach Promoted as a product that completes ones 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

Key focus: Rural MarketingDaburs 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 Channels38A mix of 4, 3,1 and 0 levels of distributionAvailability24%4 %39Micro Environment

Porters Five Forces ModelThreat of Substitute ProductsDabur Hajmola a pioneer in its market the buyer propensity to switch brands is lowCompetition from parent company product like Pudin haraThreat of MobilityDabur Hajmola 60% market share threat of Mobility is lowLong Established Brand First Mover advantageIndustry RivalryCompetition from Local markets and other candy brandsProduct attributes of Hajmola provided an advantage over competitionSupplier PowerLow Price product Dabur Hajmola has to control its costs Product is agriculture based suppliers are readily availableBuyer PowerBargaining leverage is due to pricing of the productScarcity of equivalent competitive products in the market drives bargaining power of consumers lower

Contd.42Competitors

43Potential Markets4444SWOT Analysis45The 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.

Recommendations46Thank You47