Emerging from the shadows

Dabur Case Study

Brought to You By
Chaitayna
Neelam
Pramita
Vibha
 SOME VIEWS ABOUT CASE STUDY

• The case deals with the restructuring initiatives Dabur took

in the early 2000s.
• Dabur decided to reposition itself as an FMCG company
with a herbal plank, moving away from its earlier image of
an Ayurvedic medicine manufacturer.
• In order to convey a new vibrancy, the company has adopted
new product offerings and new packaging.
• Dabur's promotional campaigns includes leading Bollywood
actors and sportstars.
• Dabur moved away from an umbrella branding strategy and
went in for individual branding.
• It pruned products which were not aligned with its brand
architecture.
• It also took concerted steps towards geographical expansion
to international markets, and within India, focused on
regions like southern India, which it had earlier neglected.
• The company's revenues in 2004-05 reveal that the changes
undertaken by the company have started showing results.
 THE CASE IS DESIGNED TO UNDERSTAND

• Why a company moves away from its core platform and the
strategies adopted by it to do so.
• How confusion about a brand sets in in the mind of consumer
because of the use of the same brand name for diversification into
different areas.
• Understand how a brand is repositioned.
• Understand how alignment of product, price, promotion and
place is brought about.
• Understand the marketing activities undertaken to rejuvenate a
brand.
• Understand how changes in demographics and psychographics
affect an organisation's vision.
• Understand how acquisitions can add value to the marketing
strategy of a company.
 BACKGROUND - DABUR -THE BRAND

• In 1884,Dr S K Burman in West Bengal Set up a

proprietary firm for the manufacture of ayurvedic
drugs, Dabur.

• In 1896, Dr. Burman set up a small manufacturing

plant at Garhia near Calcutta for mass production of
chemicals and Ayurvedic drugs.

• In the early 1900s, the next generation of Burman’s

made conscious decision to focus more on Ayurvedic
medicines market

• In 1919, it set up a Research & Development

laboratory to conduct research on Ayurvedic medicines
and their manufacturing processes and to develop
processes utilizing modern equipment to manufacture
these medicines without reducing their efficacy.
• In 1936, the company was incorporated under the name
Dabur India Pvt. Ltd.
• In 1940, Dabur launched Dabur Amla Hair Oil, and in
1949, Chyawanprash in a tin pack making it the first
branded Chyawanprash in the country.
• In 1970 Dabur expanded its portfolio by adding Dabur
Lal Dant Manjan. It was the first product to be
launched under its oral care portfolio.
• In 1972, Dabur shifted base to New Delhi and started
production from a hired manufacturing facility at
Faridabad.
• In 1978, Dabur launched the Hajmola tablet. ‘
• Dabur set up The Dabur Research Foundation (DRF),'
an independent company, in 1979 to spearhead its
research needs.
• In 1986, Dabur became a public limited company and
launched its first public issue in 1994
 DABUR -THE BRAND (contd)

 In 2004, restructured its portfolio and structured itself

into three main SBU’s
 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
 RESTRUCTURING PROCESS
 A four-year strategy, Vision –I was crafted, which
targeted sales of Rs 2000 crore by the year 2006.

 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
 Why
Restructuring?
 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
 TRANSFORMATIONAL
INITIATIVES
• Demerge its pharmaceuticals business as a separate
entity- Dabur Pharmaceuticals Ltd.

• Restructure brand architecture.

• Revisiting the corporate identity

• Leveraging internal efficiency.

• Acquistion of Balsara Hygiene & Home products.

• Introducing a stream of new products and creating a
niche for "herbal and natural” products segment.
• Conscious efforts toward becoming an employee friendly
organization
 Customer Care Products
• Merged two divisions- Family product and healthcare
products into Customer Care Division.

• Introduced new categories and innovate new product

offerings. New products contributed about 42% off
CCD’s growth during period of 2002-06.

• Successful communication strategy through focused

positioning and celebrity endorsers.

• Mandate of increasing contribution from the south

markets.
 Consumer Healthcare
Divisions
• In 2004, second phase of organizational restructuring.

• Consumer Healthcare Division (CHD) was created for

Ayurvedic healthcare products .

• Expansion of distribution network to cover urban

pharmacy outlets.

• OTC products were included in CHD.

• Build healthcare professional endorsement .

 Dabur Foods
• Designed a well segmented product strategy of Real-
Real , Activ and Coolers.
• Dabur Food recognized an important channel of sales,
institutional channel to cater hotels, restaurants &
Airlines.
• Dabur Food decided to look across border for business
opportunities. It recorded a turnover of Rs 14.7 cr and
received one star export house certification
• Streamlining manufacturing and procurement process
 International Business

• Dabur International ltd, based at Dubai was created to reorganize

international operations .

• Identify 20 Focus countries to set up manufacturing and/or marketing

presence.

• Egypt and Bangladesh recorded

sales growth of 49% and 54% resp.

• Established 7 manufacturing
units overseas.
 HOW DABUR BUILD ITS
BRAND EQUITY ?
 Identities making up the brand-
Choice of its logo, symbol, slogan,
packaging

 Marketing Activities

 Associations of the brand

 BRAND EQUITY

 The Brand Equity of Dabur can be judged by the model

BRAND ASSET VALUATOR
 Four Key components :
 Differentiation
 Relevance
 Esteem
 Knowledge
 As Dabur is a well- established brand all the four
components are high
 HERBAL has been Dabur’s Brand equity since
centuries
 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)
 BRANDING STRATEGY
(CONTD)
 PRODUCT LINE EXTENSION
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.
 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
 POSITIONING
 Dabur through its diversified brands has
tapped various target segments like the :

Youth
Health Conscious People
School Children
Mothers
Existing Old age group
 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)

 AYURVEDIC HEALTH PRODUCTS:

 Digestive Segment (HAJMOLA)
 Dabur Chyawanprash
 Pudin Hara

 AYURVEDIC DRUGS
 PHARMACEUTICALS
 SWOT ANALYSIS

 Century Old Company

 Established Brand  Profitability is uneven
 Ayurvedic/herbal Product line across product line
 Leader in Herbal Digestives
where the product has 90% of
the market share
 Innovativeness in Promotions

Extend Vatika brand to new

categories
Launch several OTC brands
Southern India Market
Exploring new geographical
areas.
Oral Care Segment
Launching new Products like
Competition in the FMCG
sector from well established
names
Other fields of medicine-
Allopathic and Homeopathic
Markets where Herbal
products are not recognized
 MARKETING
MIX
PRODUCT: Sr. Brand Type
 Products have No
been divided
1. Dabur Healthcare
into 5 power
brands (Chyawanprash)
 Quality: High 2. Vatika Herbal Beauty
 Sizes: Available Brand
in different sizes 3. Anmol Personal Care
 Design: Market
Available in
Tetra Pack, 4. Real Foods
Bottles, Sachets 5. Hajmola Digestives
 MARKETING MIX
(contd)
PRICE:
 As, Dabur had different sub-categories it came out
with variable pricing to reach each and every target
segment
 E.g. : One- litre bottle of Cooler (juice) was priced at
Rs.50
 Selective Price Reduction to increase Demand
 Introduction of Smaller packs at Rs.5
 Came out with Rs.1 sachet of Vatika Shampoo to
increase market share
 Cutting Price to stand out against competition.
 MARKETING MIX
(contd)
PLACE :
 Dabur constantly kept on increasing its
geographic spread to increase its sales revenues
 Entered the South Indian Market
 Expanding in the International Market
 Presence in over 50 countries
 Subsidiaries established in Nepal, Nigeria,
Bangladesh and Pakistan
 Focus areas : Asia Pacific, Afghanistan, Russia
and other CIS countries
 MARKETING MIX
(contd)
PROMOTIONS :
 Different brands have its own marketing and advertising team
 Different brands had different promotions
 Utilized the popularity of Indian films in the domestic and global
markets to promote its brands
 Undertook the most advertising campaign with Mr. Bachchan
endorsing Dabur brands
 Signed cricketer Virender Sehwag and his wife for selected Oral,
Hair and Healthcare products
 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
2003:Mr Amitabh Bachchan was signed as the
brand ambassdor and Dabur chyanwanprash
packaging underwent a major facelift. 2009: Zaheer Khan is Dabur
Glucose brand ambassador

2010Bipasha Basu to endorse

2008: M.S. Dhoni Is Youth Dabur Réal Activ juice
Ambassador for New-Look
 Present Scenario
 Dabur India is the 4th Largest FMCG Company in India

 Legacy of over 100 years

 SBU’s in Health care, Personal care and Food products

 Dabur has a turnover of Rs.3000 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

THANK
YOU!!!!