SUBMITTED BY Bappadittya Mondal Bhargab Dhar Debajyoti Ghosh Kushal Gaykawad Suneel Akula Surya Kiran Meduri
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CASE HIGHLIGHTS
In 2000, the company went for restructuring. Has 5 power brands under its portfolio. Entered new markets. Developed its Oral Care Market. Expanding its geographical & demographical segments. International alignment. Aims at doubling its revenue and profit by the end of 2009-2010
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INTRODUCTION
Largest Indian Personal & Health Care Co. World Leader in Ayurveda
Professionall y Managed
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Strong Internal Competency
BUSINESS SEGMENTS
Persona Health l Care Care
Hair care Body care Skin care
Foods
Home Care
Air Freshener Hard Surface Cleaner
Oral Juice & Care Drinks Baby Honey Care Digestiv e
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WHY RESTRUCTURING
Earlier Image: Ayurvedic Company Consumer Perception: 35+ age group Growth in FMCG. 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 Increasing Competition.
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THE RESTRUCTURING PROCESS
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
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BRAND ARCHITECTURE
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FIVE POWER BRANDS
Dabur Vatika Anmol Hajmola Real
Health Herbal Mass Tasty Umbrell Care Beauty, Market, and a Brand Product Premiu Value Digestiv for Juice s m For e & Other Image Money Foods
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SEGMENTATION
Geographic Region City Rural & semi-urban Demographic Age Gender Income
Market Segmentation Psychographic Socio-economic Lifestyle personality Behavioral Consumer preference Taste /Benefits
GEOGRAPHIC SEGMENTATION
The market is differentiated into geographical units like nations, regions, cities etc. as customer preferences vary across regions.
For example
Dabur Sivappu palpodi in south India. Red tooth paste in East india
DEMOGRAPHIC SEGMENTATION
In Demographic Segmentation the market is divided into groups on the basis of variables like - Age, gender, income, generation .
Age
Chyawanprash junior Real junior
PSYCHOGRAPHIC SEGMENTATION
Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics. According to Indian eating habit Hajmola Churan
BEHAVIORAL SEGMENTATION
Here the marketers divide the consumers into groups on the basis of their knowledge of, use of, or response towards a product.
Benefits from Hair oil and shampoo
TARGET MARKET
Dabur through its diversified brands has tapped various target segments like the : Youth Health Conscious People School Children Mothers Existing Old age group Targeted the Institutional market which included hotels and airlines Partnered with Institutional clients to provide value added services
POSITIONING
Earlier Position
An Ayurvedic company. Everything to everybody.
New Position
Herbal Based Product Celebrating life.
MARKETING MIX
PRODUCT:
Products have been divided into 5 power brands Quality: High Sizes: Available in different sizes Design: Available in Tetra Pack, Bottles, Sachets
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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. :Cooler (juice) was 15% cheaper than Real. PLACE : Dabur constantly kept on increasing its geographic spread to increase its sales revenues. Special focus on the South Indian Market Expanding in the International Market.
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MARKETING MIX (Contd.)
PROMOTIONS : Different brands have
its own marketing and
advertising team Utilized the popularity of Indian films in the domestic and global markets to promote its brands Undertook the most advertising campaign with Mr. Bachchan and yash raj film endorsing Dabur brands and captured his image in abroad Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products
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SWOT ANALYSIS
STRENGTHS: Century Old Company Established Brand Ayurvedic/ herbal Product line Leader in Herbal Digestives where
the product has 90% of the market share Innovativeness in Promotions WEAKNESS: Profitability is uneven across product line
OPPORTUNITIES: Extend Vatika brand to new categories like Skin Care and body wash segments Southern India Market Exploring new geographical areas- local as well global Launching new Products like Hair oils, Herbal and Gel Toothpastes etc. THREATS: Competition in the FMCG sector from well established names Other fields of medicine- Allopathic and Homeopathic Markets where Herbal products are not recognized
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MAJOR COMPETITORS
BRANDS Shampoo COMPETITORS HUL-Clinic P&G-H&S
Oral
Juice Skin Care
Colgate
Pepsi HUL
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Emami
WINING COMPETITIVE STRATEGIES
Differentiated approach in all business segments.
Expand Total Market Expand Market Share Challenger Strategy Niche Strategy
Health Care Home Care Food Division
Hair Care
Oral Care Skin Care
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HERBAL vs CHEMICAL
Introducing new packaging for dandruff control range. Preity Zinta as brand ambassador. Going by consumer insights, Dabur leveraged idea Chemicals Ki maad dhaad kyon, Dandruff hataye pyar se Vatika dandruff control has been positioned as nonviolent option. Rural areas demand has been driven mostly by sachets.
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RECOMMENDATIONS
Create niche market by integration of ayurvedic knowledge with modern science. Provide innovative products to its customers Should give e-purchasing facility Should focus more on South India Awareness about superiority of herbal products. Expansion
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THANK YOU
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