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DABUR INDIA LIMITED
Dabur India Ltd. (DIL) is the fourth largest FMCG company in India with a turnover of Rs. 2834.11 Crore (FY09) and has a significant presence in the consumer segments of health care, personal care, home care and food products. Its master brands include Dabur for natural health care, Vatika for personal care, Hajmola for digestives and Real for fruit beverages. They have a reach extending beyond India to over 60 countries across the globe.DIL, through its wholly owned subsidiary H&B Stores Ltd., has recently forayed into organized retail with a concept of selling health, beauty and wellness products under the brand name new u. The company currently operates 7 stores with a target of 16-18 new u stores by FY10. DIL has built strong brand equity by superior management of its ever-expanding product portfolio through innovative launches, systematic relaunches and rewarding acquisitions. However considering the current economic slowdown, growth expectations could get strained.
COMPANY BACKGROUND
DIL, founded in 1884 by Dr. S. K. Burman, has emerged as one of the leading FMCG companies in India. It has a strong presence in the ayurvedic space with a focus in the health care, personal care, home care and food segments.The company has 17 manufacturing units spread across the globe.In FY05, DIL acquired Balsara's Hygiene and Home products businesses, a provider of Oral Care and Household Care products in the Indian market for the consideration of Rs1.43bn. The company also acquired 72.15% stake in Fem Care Pharma Ltd. (FCPL) inNov'08 for Rs2.04bn.
BUSINESS SEGMENTS
DIL's operations are segmented into the Consumer Care Division (CCD), ConsumerHealth Division (CHD), International Business Division (IBD) and the recently startedretail division. CHD & CCD : CHD provides the foundation for smaller brands to develop into future growth drivers for the CCD, the largest segment for the company comprising the consumer products business.CCD is the largest revenue and earnings contributor for the consolidated group. It houses a vast range of products from health care and personal care to homecare along with the latest inclusion of foods. IBD : DIL's products are available in more than 50 countries spread across the markets of Middle East, S.E. Asia, Russia, Africa, Australia, the EU and America. In the early stages of international business, the approach was to primarily tap the Indian diaspora across the globe. However, the strategy has presently evolved to a more zone centric approach. RETAIL : The company’s new u stores boast of branded personal care products, fashion accessories & jewellery products. Apart from housing its own products, it also sells products of other companies like P&G, Hindustan Unilever and Johnson & Johnson. In addition, they offer high end products like Lancome, Clinique and MAC.
Building on a legacy of quality and experience for 125 years, Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods.
Dabur's Health Care , a wide selection of Ayurvedic and natural products that offer complete care for varying individual needs
Health Supplements
Dabur Chyawanprash, still strictly follows the original recipe that was laid down centuries ago.
The two new variants -- the sugar-free Dabur ChyawanPrakash and the chocolate-flavoured granular Dabur Chyawan Junior
Dabur Glucose, a ready source of energy to fight tiredness
Dabur Honey, the purest branded Honey
Oral care
Dabur’s range of Oral Care products -- designed to suit every individual’s special needs
Dabur Red Toothpaste, the Power of Ayurveda to keep all your dental problems away
Babool Toothpaste, a natural toothpaste packed with medicinal benefits of Babul tree
Babool Mint Fresh Gel, Start the day with a pleasant, fresh feeling
Lal Dant Manjan, the Ayurvedic toothpowder for strong teeth and healthy gums
Meswak Toothpaste, a Herbal toothpaste with pure extract of Miswak plant
Promise Toothpaste, a unique toothpaste containing natural and time-tested clove oil
Digestives
Dabur's range of Digestives tablets and candies, Ayurveda-based solutions to aid digestion as well as cure distressing stomach disorders, safely and instantly
Hajmola Tablets
Tasty, fun-filled digestive that makes every meal complete
Hajmola Candy
The zingy tangy candy that's fun to have any time of the day
Dabur Personal Care, a range of Herbal & Ayurvedic Personal Care products, created to make you look and feel good
Hair Care
Dabur's range of natural Hair Oils
Dabur Amla, nourishment of AmlaDabur Amla Flower Magic, with the magic of white flowers Vatika Enriched Coconut Hair OilVatika Enriched Almond Hair Oil
Dabur range of Natural & Ayurvedic shampoos
Smooth & Silky, Root Strengthening and Black Shine Vatika Dandruff Control Shampoo
Dabur Total Protect Shampoo
Vatika range of conditioners
Vatika Smooth & Silky Conditioner Vatika Root Strengthening Conditioner
Dabur Skin Care
Dabur Gulabari, offering the goodness of rose for skin care.
Dabur Uveda, an all-new skincare range, works from within to give you an inner glow
Dabur Home Care Products
Keeping your family healthy...
Odonil, keeping your home fresh and smelling great
Odomos, protecting your family from disease causing mosquitoes
Odopic, leaving your dishes clean and smelling fresh
Sanifresh Shine, keeping your toilet sparkling clean and free from germs
Dazzl, adding a mirror like shine to your floors, kitchen and glass surfaces, while keeping them germ-free
Dabur Foods
Réal , India's No. 1 Fruit Juice brand, choose from 14 exciting variants
Real Activ Juices contains
0% addedsugar No added Colour or Preservatives Naturally rich in Antioxidant Nutrients
Réal Burrst’s range of light & refreshing fruit beverage, available in 4 exciting flavours
Lemoneez, offering consistent lemon taste and flavour, anytime of the year
Hommade, Dabur's culinary range
Hommade Cooking PastesEnjoy freshly ground ginder, garlic and tamarind
Hommade Tomato Puree, for tasty, wholesome meals.
Hommade Coconut Milk,the first pressing extract of superior coconuts
Capsico, devilishly hot!The hot & fiery red pepper sauce.
Consumer Health – Ethical
Today, Dabur's Consumer Health Division -- which looks after marketing of Ayurvedic medicines and Ayurvedic Over-The-Counter products -- has redefined the Ayurvedic market and healthcare promotion activities involving leading Ayurvedic practitioners across the globe.
At Dabur, we have more than 350 Shastriya (Classical) Ayurvedic preparations, which form an important part of every Ayurvedic practitioner’s daily practice.
Consumer Health-OTC Making Ayurveda more contemporary for the modern day consumer
Dabur Pudin Hara, a completely natural, safe and quick relief from stomach ache, gas and indigestion.
Dabur Active Antacid, a quick and effective relief from acidity and gas.
Dabur Balm Strong, the 1-minute action on headache
Dabur Balm Double Action, get 2 times the action on cold & headache
Dabur's Honitus Cough Syrup, effective relief from cough, without side-effects.
Shilajit Gold, a powerful sex stimulant and rejuvenator
Dabur Active Blood Purifier, an easy, permanent solution from pimples
Dabur Shankha Pushpi, a natural tonic for mental development of children
Dabur Lal Tail, the most effective massage oil for height and weight growth for infants
Dabur Janma Ghunti, for all-round growth of infants
Dabur Gripe Water, guarding your baby against common stomach problems
Dabur Badam Oil, enjoy its multiple benefits, from a sharper brainto glowing skin and strong & healthy hair
Dabur Super Thanda Oil, with superior cooling properties gives instant relief from headache, fatigue, tension & ensures a good night's sleep
Top 3 Brands of Dabur
1.) Dabur Amla Hair Oil :
Turnover : Rs. 300 crores(approx.)
Market Share : 70%
Major Competitors: Marico’s Shanti Amla, Bajaj Bramhi Amla
2.) Dabur Vatika :
Dabur Vatika Oil –
Turnover : Rs. 110 crores
Market Share : 6.4%
Major Competitors : Marico, Keo Karpin, HUL, Bajaj
Dabur Vatika Shampoo –
Turnover : Rs. 120 crores .
Market Share : 6.8%
Major Competitors : HUL, P&G.
3.) Dabur Real Juice :
Turnover : Rs. 200 crores .
Market Share : 56.9%
Major Competitors : Pepsi Tropicana, Godrej Xs, NDDB Safal, Parle Appy.
Sub-brands : Real, Activ, Burst, Twist, Junior, Coolers.
Strategies over the years...
Dabur and Marketing Mix
PRICE: As Dabur had different sub-categories, it came out with variable pricing to
reach out to each and every target segmentE.g. One- litre bottle of Real (juice) was priced at Rs.50
Selective Price Reduction to increase DemandEg. Dabur came out with Rs.1 sachet of Vatika Shampoo/ Amla Hair Oil to increase market share
Cutting Price to stand out against competitionEg. Dabur joined the shampoo price war in Aug 2004 and slashed prices of its Vatika shampoo.
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, middle east, west Africa, North Africa, US
PRODUCT: Dabur has a variety of products in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods.
PROMOTION: Different brands have their own marketing and advertising team Dabur utilized the popularity of Indian films in the domestic and global markets
to promote its brands In order to further deepen the brand's penetration in the rural
pockets, the company also announced the launch of special low-priced packs
Dabur heavily advertised its products through various contests• Dabur Amla ‘Sunder aur Susheel pratiyogita’• Dabur Amla 'Banke Dikhao Rani'- In an attempt to give better
exposure to rural women, 'Dabur Amla' is going to conduct 'Rural Beauty Pageant' across 52 distritcts in Madhya Pradesh, Uttar Pradesh and Bihar, covering 2,000 villages.
• Dabur Gulabari ‘Miss U.P. Fresh Face 2009’ beauty contest
Dabur and Ansoff’s Matrix
Market Penetration
Dabur relaunched the Vatika brand with a fresh brand image, a new logo and an expanded brand portfolio. They changed the overall brand proposition to suit the urban youth by highlighting the naturalness of our products
Product Development
Dabur launched a new flavour ' Apple Nectar' under Real to leverage the growing preference for fruit-based beverages.
Dabur staged an entry into the light hair oil sub category with the launch of two variants - Vatika Enriched Almond Hair Oil and Dabur Amla Flower Magic Hair Oil
Market Development
Dabur has successfully aligned its Activ range of fruit juices to its 'health & wellness' strategy through a new ‘No Sugar' campaign
Product Diversification
Dabur first launched Vatika hair oil in 1995. Then they diversified into the shampoo market by launching Vatika shampoo in 1999 followed by further diversification into the soap segment in 2005.
The ‘Dabur’ Brand Rejuvenation
With youth forming a major population of India, Dabur decided to revamp its brand identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in 2003-04.
The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was replaced with a new, fresh Banyan tree.
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.
Dabur Amla hair oil
Hair care segment recorded impressive growth of 22.8% during the fiscal 2008-09. The star performer in the hair oil segment was the flagship brand Dabur Amla hair oil, which reported a growth of 20.4%.The strong growth in Amla hair oil was led by the brand's focus on conversion of customers from loose mustard oil and a number of customer activation programmes were launched to bring more consumers into its fold and enhance usage. Dabur India repositioned its lead brand, Dabur Amla Hair
Oil, by launching its extension christened Dabur Amla Lite which failed to gain critical mass. The company has changed its packaging so as to target the youth segment as well as dedicating to its products an image of "health and well being”.
Vatika Hair Oil
The growth of Vatika Hair Oil was driven by a total revamp, encompassing qualitative change in the product, new packaging and a new communication strategy, which saw 1.5 lakh households being directly contacted on the new platform of ‘scientifically proven to be better than normal coconut oil' The growth in the oils segment happened despite a hike in prices, primarily on account of a stronger leverage of the distribution reach and an excellent price proposition, combined with a geographically segmented strategy focusing on East and North India, where the market was previously dominated by smaller discounted brands.
Vatika Shampoo
Vatika range of shampoos' emerged as the fastest growing shampoo brand in India for the third consecutive year reporting 31.5% growth. With the anti-dandruff shampoos constituting more than one-third of the total shampoo market in India, Dabur sees great growth potential in this category. As a step in this direction, Dabur created a new sub-brand Vatika Dandruff control under which three anti dandruff shampoo variants are being launched. Dabur marked its entry into the health shampoo segment by test marketing a new product - Dabur Total Protect Health Shampoo.
Real
Dabur’s food segment comprises mainly of fruit beverages under the Real & Activ brands and culinary additives under the Hommade brand.
A new ‘Weekend' campaign to promote various flavours of Real was launched during the year which was quite effective in increasing awareness about its range and variety. In an effort to further sharpen the brand positioning of Real fruit juice range; the company has launched a campaign focusing on ' fruit power' and what it means for consumers, especially children.
COMPETITORS FOR DABUR’S TOP BRANDS
REAL JUICE Vs TROPICANA
With the growing demand for healthier beverages, Tropicana, PepsiCo’s juice brand, has expanded its ‘Tropicana 100%’ portfolio with the launch of a new mixed fruit variant. This also puts it in direct competition with Dabur’s Real Activ brand, which claims to address the health needs
of consumers. Dabur already has an edge in the unsweetened 100 per cent juice segment, with 10 variants in the market.
Real’s idea was to educate the consumer about the difference between fruit drink (less than 20 per cent fruit pulp content), fruit nectar (20-85 per cent fruit pulp content) and fruit juice (more than 85 per cent fruit pulp content) so that he can make an informed choice. While Réal Twist is in the fruit drink category with products like Frooti, Maaza, Minute Maid, Slice and Tropicana Twister, Real’s mango, litchi and guava flavours and Tropicana Twirl are in the fruit nectar category. The fruit juice category has brands such as Real Juice, Real Activ, Tropicana Premium Gold and Tropicana Premium.
Real’s target group consists of kids, but the campaign is also targeted at mothers, who ultimately make the purchasing decision.
Tropicana focused on the central idea of a fruit rush, connoting the rush of refreshment that comes from taking the best of Tropicana fruits to create a thirst-quenching juice drink that revives the senses. This idea of a fruit rush is symbolised through the iconic device of an orange fruit balloon. The orange fruit balloon cues authentic and luscious oranges that have been made more refreshing, reflected in the transformation of the oranges into orange fruit balloons.
Tropicana targets to spread its consumer base and reach out to the youth, who form its core target audience.
POPs
Health Drink Refreshing Drink Alternate to carbonated drinks
PODs
Target Group
Dabur Amla Hair Oil Positioning :
1.) Dabur Amla has changed with the times and is in sync with its target audience — the new age woman. The new identity modernizes this 70-year-old Dabur Amla brand, making it more contemporary and relevant in consonance with today’s lifestyle.
2.) The brand has always beingsynonymous with beauty & has been endorsed by reigning beauty queens ofBollywood like Jayaprada, Sridevi, Juhi Chawla, Karishma Kapoor and Rani.The new look — with its brand ambassador Rani Mukherjee on the front label – maintains the continuity with the brand’s beauty association while infusing a youthful appeal.
3.) The company has changed its packaging so as to target the youth segment as well as dedicating to its products an image of "health and well being".
4.) The Company also announced the expansion of a new consumer initiative– a rural beauty pageant christened Dabur Amla ‘Banke Dikhao Rani’, which recognises and rewards facets such as Sundarta, Susheelta and Yogyata amongst young girls.
5.) In order to further deepen the brand’s penetration in rural pockets, Dabur India Ltd also announced the launch of special low-priced packs of Dabur AmlaHair Oil – a Re 1 sachet & a Rs 10 pack (25ml) – making their preferred beauty brand more affordable.
6.) Dabur India is going the Hindustan Unilever way by tying up kirana stores much on the lines of the latter's 'Super Value Store' programme.
7.) Launched Dabur Amla Lite to attract the new age woman.
8.) Advertised heavily, especially in the rural market, through – TV, Radio, newspapers, POP(point of purchase) displays, wall paintings, contests , video vans and sales promotions.
Vatika hair oil
Vatika hair oil has 6.4% of total market share with annual turnover of 1.1billion. The major competitors are bajaj hair oil, marico parachute, keo karpin & navratna. It is an important brand in terms of revenue, profitability, extension opportunities and strategic fit. It has a premium image.
Parachute coconut hair oil has 45% of market share and is targeted for the all-aware young Indian woman who is demanding as she knows that there are a slew of other hair care products available to her. It is promoted by MARICO and is market leader in coconut oil category.
Key marketing communications & the evolution of the top three products
The top three Dabur brands as mentioned above are Dabur Amla Hair Oil, Dabur Vatika and Dabur Real Juice.
DABUR AMLA
Dabur Amla Hair Oil is today the largest hair oil brand in the country with over 35
million consumers. Dabur Amla Hair Oil has constantly evolved as the epitome of
beauty for Indian women. It was introduced in the early 50’s in Northern India. Today it is the Flagship brand in Hair Care category of Dabur.
The golden ‘Amla ka Karishma’ campaign which featured Karishma Kapoor.
BEFORE NOW
Rani Mukherjee now endorses Dabur Amla and features on the new revamped hair oil pack.
Dabur Amla was targeted at the mass market. Various high profile film stars have endorsed Dabur Amla over the years including Waheeda Rehman, Jaya Prada, Sridevi, Juhi Chawla and then Karishma Kapoor in the 90s
DABUR VATIKA
The key products that come under the Vatika Umbrella are Dabur Vatika Hair Oil and Dabur Vatika Shampoos. Dabur India Ltd. re-launched the Vatika Brand in 2007 with a fresh brand image, a new logo and overall brand proposition to suit the urban youth.
VATIKA HAIR OIL
Dabur first launched the Vatika brand in 1995 by introducing Vatika Hair Oil. Vatika Hair Oil’s first promotion focused on the key benefit- beautiful hair without hair problems. Snapshots of the keys advertisements that were aired since its launch have been shown below.
In 2007 Vatika changed the packaging of Vatika Hair Oil
VATIKA SHAMPOO
Genelia D’souza is the new brand ambassador for Dabur Vatika
Preity Zinta appears in Vatika Almond Oil Ads
The Vatika Women campaign that focussed on celebrities who use Vatika Hair Oil.
Vatika used different brand ambassadors for different variants
Vatika Shampoo was introduced in 1999 after the success of Vatika Hair Oil in the market. The Vatika shampoo brand was also rejuvenated in 2007 along with the other variants under the Vatika Umbrella. A jog down memory lane to revisit the successful marketing campaigns of Dabur Vatika.
DABUR REAL JUICES
Has now diversified into
The famous mime Ad Riya Sen was roped in to endorse Vatika Shampoos
Genelia D’souza now endorses Vatika Black Shine, Root Strengthening & Smooth and Silky Shampoo
Preity Zinta endorses the anti-dandruff shampoo range
Two celebrities endorsing the four variants
Dabur Real Juices was launched in 1996. Dabur captured the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. Real Juices was the first local brand of 100% pure natural fruit juices made to international standards, Real became the fastest growing and largest selling brand in the country.
DABUR ACTIV was launched to cater to the ever growing population of health conscious consumers. They were the first to launch completely natural fruit juices with no added ingredients.
Animated ad launched to emphasize the benefits of “FRUIT POWER”. The ad was targeted at kids.
Another Ad to drive home the message of “FRUIT POWER”
The emphasis during the Dabur ACTIV campaign was that this was the only fruit juice with no added, preservatives and colours.
The ‘Those who drink real do it all’ cam
Real Twist was another variant launched by Dabur in order to counter Frooti, Slice, Mangola etc.
Plan 2010
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. The main objectives are:
Doubling of the sales figure from 2006 The new plan will focus on expansion, acquisition and innovation. Although
Dabur's international business has done well — growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.
Growth will be achieved through international business, homecare, healthcare and foods.
The “Aao Twist kare” campaign. It helped in positioning Twist as a youthful, vibrant fruit drink.
Real Burrst was launched in May 2009 in 4 new flavours. Real Burrst is targeted towards consumers in the Indian cities.
Southern markets will remain as a focus area to increase its revenue share to 15 per cent.
Also taking their retail (H&B stores) to the next level.
Company Adjustments
1. Reengineering: Focusing on Functional departments to reorganize the keybusiness processes, each managed by multidiscipline teams.On the inorganic growth front, the company acquired the Balsara group of companies in 2005. This acquisition gave Dabur new brands in toothpaste (Promise, Babool, and Meswak), mosquito repellants (Odomos), toilet cleaners (Sani Fresh), and air freshners (Odonil). The acquired toothpaste business balanced the oral care products portfolio as 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. Analysts felt that the combined manufacturing facilities were also likely to yield synergistic effects for Dabur. Besides, the acquisition was expected to result in exploiting economies of scale in marketing, sales, and distribution.
2. Outsourcing: From making everything inside to buying more goods and services outside, to obtain them cheaper and better. The packaging for beverages (Coolers) is done in Nepal, the pulp will soon be sourced from the company's Siliguri plant. The Siliguri pulp plant, a wholly-owned subsidiary of Dabur Foods, will witness Rs 20 crore investment this year which would be part financed through long-term debt and equity.3. Market-Centred: From organized around the product to organized around the Market segment. Home foods- Dabur Foods has also been test marketing chutnies like imli saunth but has decided against launching these since the market response has not been encouraging. However, it is going ahead with plans to launch tomato puree under Hommade. 4. Global and Local: From being local to being Globally local & locally global. Dabur India has recently opened their chain of retail outlets across the country. It has announced the appointment of Peter Gerard Baker as CEO for its newly formed retail subsidiary H&B Stores Ltd. Baker will look after the new retail initiatives of Dabur India, including establishing the new subsidiary and stores on a pan-India footprint.
5. Decentralized: Empowering employees and encouraging entrepreneurship.Employee stock option benefits (ESOPs) to make employees feel like shareholders , an incentivised employee referral programme was kicked off in 2005,
AREAS OF SUGGESTIONS
1. E-Commerce: Making all products available on the Internet. 2. Alliances: Network of partners for distribution, marketing and production.3. Partner-Suppliers: From many suppliers to a few reliable suppliers who workmore closely in Partnership relationships with the company.
HOW TRENDS WILL DRIVE CONSUMPTION POST RECESSION
Advancing Trends
Arrested Trends
Recoveries typically unleash pent-up demand, and people will celebrate this one by buying a few indulgences and replacing their aging durables.Many postrecession purchases, will be less extravagant versions of the originals. The discretionary thrift trend should regain momentum over the long term as consumers continue to find personal and practical satisfaction in it.
THE RECESSION,is
exerting a broad
influenceon consumer
trendsand
attitudes, propelling
some trends forward while
slowing, halting, and
evenreversing
others. Here we
see a snapshot of the current
impact of the recession
on trends, relative to
one another.
Dabur as an organization stands for various qualities which include commitment to society, transparency, empowerment etc. It always gave extra attention for its stakeholders (employees and consumers). Even after the onslaught of foriegn companies, they were able to withstand the challenge and maintain their position in the industry as an organization which provides service of the highest quality. This reputation has been carefully crafted and created over the last century through its employee friendly and empowerment policies. The innovative HR policies of the firm is a revelation for the industry and many of the management students who consider it as one of the best places to work. Dabur has always tried to change the organizational structure according to the changing environment and they were extremely successful in adapting to those changes also.
