Marketing strategy

By: Group 5
Krishna Ballal Santhosh Shubha Mishra Sapna Syed Adil V Ram Kumar

Dabur at a glance

Established in 1884 More than 125 years of trust and excellence Among top 4 FMCG companies in India Worlds largest in ayurveda and natural healthcare Revenues of Rs 53.2 billion and profits of Rs. 6.4 billion in FY 2011-2012 12 brands with saes of over 1 billion each One of the largest distribution networks covering 5.8 million retailers across India

Dabur India Ltd: Business Divisions

CONSUMER CARE DIVISION Range of personal care and health care products viz. hair care, oral care, skin care, baby care, health supplements and digestives

CONSUMER HEALTH DIVISION

Range of health care products comprising Ayurvedic medicines OTC Ayurvedic product

INTERNATIONAL

BUSINESS DIVISION

Daburs international business based in Dubai ; Having operations in Middle East, Asia, Africa, Australia, UK , US and Canada

FOODS

Dabur Foods Ltd, a 100% subsidiary comprising Real Fruit Juices,Hommade cooking pastes & Lemoneez

Cornerstones of Dabur Marketing

Enter new category; innovate offerings

Growth strategy

Repositioning as FMCG company

Changing branding strategy from umbrella to key brand strategy

Associations of the brand

Cornerstones of Dabur Marketing

Change of logo

New Logo : Significance

The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness,. The trunk represented three people raising their hands in joy, the broad trunk symbolized stability, multiple branches were chosen to convey growth, and warmth and energy were displayed through the soft orange color. Celebrating Life was chosen as a new tag that completely summarized the whole essence.

Cornerstones of Dabur marketing

The company had adopted a combination of the organic and inorganic routes in fueling its growth. Organically, the company started serving the southern region of the country in 2002, which was neglected earlier. Further, it enhanced its product portfolio in the various product categories. On the inorganic growth front, the company acquired the Balsara group of companies in 2005. This acquisition gave Dabur new brands in toothpaste and balanced the portfolio Dabur's sales came from the northern and the eastern parts of the country while Balsara's were from the southern and the western parts of the country.

Growth Strategy
EXPAND

DABUR INDIA LIMITED

ACQUIRE

INNOVATE

THREE PRONGED STRATEGY FOR SUSTAINING GROWTH

Cornerstones of Dabur Marketing

Cut down on all its low Contribution Brand Positioned itself as an Herbal specialist in the FMCG sector Filling up the gaps in Oral Care as well as Hair Care market Entered new potential areas and targeted the youth as well school children

Cornerstones of Dabur Marketing

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)

PRODUCT 1. Products have been divided into 5 power brands 2. Quality: High 3. Sizes: Available in different sizes 4. Design: Available in Tetra Pack, Bottles, Sachets

PRICE 1. variable pricing to reach each and every target segment 2. Selective Price Reduction to increase Demand 3. Cutting Price to stand out against competition

Marketing Mix
PLACE 1. Increasing its geographic spread to increase its sales revenues 2. Entered the South Indian Market 3. Expanding the International Market 4. Currently Presence in over 50 countries PROMOTIONS 1. Different brands had different promotions 2. Undertook the most advertising campaign with Mr. Bachchan endorsing Dabur brands 3. Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products

Cornerstones of Dabur Marketing

Adopted the INTEGRATED MARKETING COMMUNICATION programme for Real in 2003 to increase its market share Dabur invested Rs. 150 crore just on the advertising of Real Fruit Juice and Real Active. Targeted the Institutional market which included hotels and airlines Partnered with Institutional clients to provide value added services Training sessions and workshops for food and beverage professionals Tie-up with Discovery Channel

Execution of strategy

Expand Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories Calibrated international expansion local manufacturing and supply chain to enhance flexibility / reduce response time to change in market demands Innovate Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire Acquisitions critical for building scale in existing categories & markets Should be synergistic and make a good strategic fit Target opportunities in our focus markets

Execution of strategy
Subsidiary units under the umbrella of the Dabur India Organisation

Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India Limited, is spearheading Dabur's foray into food processing industry. Dabur was the first company in India to introduce fruit juices in packaged form without any artificial additive. Real is today the market leader in this category with more than 50 per cent market share. Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for Dabur group. The company is today the leading exporter of Nepal and the third largest and most modern manufacturing base for Dabur. Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base set up a couple of years back to cater to the demands of Middle East and African market is producing Hair Care, Skin Care Products and foods.

Execution of marketing strategy

Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail outlets making its product available to the consumers across the country at ease. Dabur decided to revamp its brand identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements.

Changes in packing across all products. New packaging

and advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in 2003-04.

Execution of marketing strategy

Tie-up with IOC for rural marketing. IOCs rural retail outlets, called Kisan Seva Kendras, sell a host of products including financial services, agricultural implements, farm inputs such as seeds and pesticides as well as vegetables and stationery. Astra - Shopkeepers selling Dabur India's consumer products would now learn marketing through role-plays staged by professional actors at their shops. Daburs 2nd biggest brand Real has carried a powerful outdoor campaign to promote Real in a new avataar, with brand ambassador Sonali Bendre Behl. The company has concentrated its outdoor campaign in the four major markets Mumbai, Chandigarh, Bengaluru and Delhi NCR.

Trade-off

Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player Similarly Pan Masala product was discontinued to retain the image of Healthcare company. Cut down on all its low Contribution Brand and consolidated the product line.

Risk

With increase in Celebrity Endorsement to connect with consumers, may result in overkill i.e consumer gets tired or confused about the same star endorsing various products. Incase of animated commercials consumers may not be able to understand the difference between real world and fantasy. Product is lost in various ad campaign shuffle. With so many products, building awareness of each could become expensive.

Thank You