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Repositioning Dabur

Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate
either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details: Price:
Case Code : MKTG099 For delivery in electronic format: Rs.
Case Length : 17 Pages 400;
Period : 2001-2004 For delivery through courier (within
Pub Date : 2005 India): Rs. 400 + Rs. 25 for Shipping &
Teaching : Available Handling Charges
Organization : Dabur Themes
Industry : FMCG
Countries : India Repositioning

The case deals with the restructuring
initiatives Dabur took in the early 2000s. In
order to cater to a wider audience, 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.

we decided to embark on a brand recast to identify brands based on their product . Our research showed that consumers found it difficult to distinguish Dabur as a corporate brand and as a master brand. Contents: Page No. • Understand how a brand is repositioned.It also took concerted steps towards geographical expansion to international markets. The company's revenues in 2004-05 reveal that the changes undertaken by the company have started showing results. • Understand the marketing activities undertaken to rejuvenate a brand. Brand Repositioning. focused on regions like southern India. The positioning was unclear to the public. Anmol. Vision. Issues: The case is designed to help the students to: • Understand why a company moves away from its core platform. 4Ps of Marketing. Core Values. price. • Understand how alignment of product. So. FMCG Industry. • Understand the strategies adopted by a company to change its core platform. • Understand 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. promotion and place is brought about. • Understand how changes in demographics and psychographics affect an organisation's vision. Brand Architecture. • Understand how acquisitions can add value to the marketing strategy of a company. and within India. Brand Management. Vatika. Brand Equity. which it had earlier neglected. Introduction 1 Background Note 1 The Restructuring Exercise 3 Outlook 8 Exhibits 11 Keywords: Dabur. Real and Hajmola. Strategic Intent. Umbrella Branding.

the company shifted to individual branding and came out with a new logo. was ranked at number four in terms of sales among the Fast Moving Consumer Goods (FMCG) companies in India. The company tried to bring to its consumers its Ayurvedic legacy with a contemporary feel. Though its spread into various segments has ensured that the company's bottom-line has improved over the years. where its entire product portfolio was under one roof. The company now has interests in hair care. Dabur India Limited (Dabur) which started as a medicine manufacturer in 1884. Dabur (an acronym of the name Dr Burman). All these changes have improved the financial performance of the company in 2004 as compared to 2003. In the early 2000s. Background Note Set up in 1884 by Dr S K Burman in West Bengal as a proprietary firm for the manufacture of ayurvedic drugs. which contributed only 8 percent of the company's total revenue in 2003. Moving away from using Dabur as an umbrella brand. pruning products that did not align with the brand architecture and launching new products (Refer Exhibit I and II). the company went in for a restructuring which included aligning Dabur's brand architecture2 with Dabur's brand equity3. CEO. Dabur's positioning was not clear. This essentially means that Dabur is shedding its age-old umbrella brand strategy. .Sunil Duggal. health care. started off . Introduction In 2004. At this oral care and foods as well (Refer Exhibit I). Dabur identified its ayurvedic platform as a driver of future growth and got its business units better aligned. Dabur India Limited in 20041. The company focused on improving its sales revenue from southern India.

the next generation of Burmans took a conscious decision to focus more on the Ayurvedic medicines market.. Dabur launched the Hajmola tablet. . Plagin. and in 1949. Dabur shifted base from Kolkata to New Delhi and started production from a hired manufacturing facility at Faridabad.. In 1936. Burman set up a small manufacturing plant at Garhia near Calcutta for mass production of chemicals and Ayurvedic drugs. the company launched Chyawanprash in a tin pack making it the first branded Chyawanprash in the country. Dr. Dabur also expanded its distribution network in Bihar and the North Eastern regions. In the early 1900s. Dabur Lal Dant Manjan was the first product to be launched under its oral care portfolio. In 1978. the company marketed an allopathic drug. In 1919. the company was incorporated under the name Dabur India Pvt. Background Note Contd. as they believed that it was only through Ayurveda that the healthcare needs of poor Indians could be met. and to develop processes utilizing modern equipment to manufacture these medicines without reducing their efficacy. In 1940. Dabur launched Dabur Amla Hair Oil. In 1972. Dabur set up 'The Dabur Research Foundation (DRF). to combat the then prevalent epidemic of plague. in 1979 to spearhead its research needs. Initially. Dabur set up a Research & Development laboratory to conduct research on Ayurvedic medicines and their manufacturing processes as described in ancient Indian scriptures. with a direct mailing system to send medicines to villages in Bengal. The company expanded its portfolio by adding oral care products in 1970. Ltd. In 1896. The following year. Dabur set up manufacturing facilities for Ayurvedic Medicines at Narendrapur (near Calcutta) and Daburgram (in Bihar).' an independent company.

. the company identified personal and healthcare products as growth drivers. which translated to annual growth of 15-20 percent for three years from 2004 to 2006. In the same year Sahibabad factory became operational and this unit was one of the largest and most modern production facilities for Ayurvedic medicines in India at that time. 28 percent and 27 percent respectively to Dabur's sales revenue in 2003-04. With almost seventy percent of India's population below 35. Aligning the Brand Architecture Dabur was looking for growth drivers which could leverage the herbal brand equity of the company. Vision. "Consumers perceive this as the next best thing to having a fresh fruit. along with others like pomegranate and water melon juice.. . "We decided to set the scale high.. Strategic Intent and Core Values of Dabur). Dabur became a public limited company in 1986 and launched its first public issue in 1994 (Refer Exhibit III & 1V for the shareholding pattern." said Sunil Duggal (Duggal). Excerpts The Restructuring Exercise Though Dabur diversified into number of areas. Dabur products were associated with the 35-plus age group.. In 2004. But there were gaps in Dabur's product range. Getting the 4Ps Right In 2004. In the public perception. the image of Dabur was that of an Ayurvedic company. Health Care Products Division (HCPD) and Dabur Ayurvedic Specialties (DASL) which contributed 45 percent. it appeared that Dabur would be missing out on this mass market... targeting at least a strong double-digit growth. Dabur launched a new range in juices called Coolers which included traditional preparations like Aam Ka Panna. In order to achieve the targeted sales of Rs 20 billion by 2006.. CEO. which also had high disposable income. Dabur had three strategic business units: Family Products Division (FPD).. Dabur speaking about the growth plans the company set in 2003.

it continues to innovate and renovate. it began talking to non-users and ‘non-believers’ to convince them they could benefit from it. Dabur India. General Manager (Marketing).. "What the company had done is pretty positive and credible. this year uses the tactic of having a husband and son swap roles with the homemaker to bring to light the stress the homemaker faces and the amount of energy she expends in her daily running of the house. The campaign. Chutani.". Mr K. SSKI Securities commented. Nikhil Vora. treats herself as the least important person . honey and herbal digestives.. Sravanthi Challapalli Chennai. has launched a new advertising campaign featuring Amitabh Bachchan. It plans to contact 4-6 lakh consumers across the top 10-15 cities in the country through interactive events. which goes with the tagline ‘Zaroorat Hai’ (‘It’s necessary’). Research. 28 After the kids. Speaking to Business Line. who has the most stressful job. Ever since the company took upon itself the onus of expanding the Chyawanprash category three years ago. Mr Chutani said. The focus this time is on the homemaker. Outlook Dabur's repositioning exercise seemed to have achieved some success with a perceptible increase in sales and net profit margin of the company in 2004 (Refer Exhibit IX). “The mother. Nov. Vice President.K. it’s Mom! Dabur. said the company would also take up consumer activation activity. which is marketing Chyawanprash as a health supplement for all sections of consumers. However. 2007 promotion strategy 4 dabur chyanwanprash Mom’s the word in new ad campaign for chyawanprash ‘Role reversal’ script features Amitabh Bachchan It plans to contact 4-6 lakh consumers across the top 10-15 cities in the country through interactive events. Activation has started in the rural markets which account for 40 per cent of the brand’s sales. the company needs to keep the growth momentum in the categories in which it leads like Chyawanprash. November 29. Thursday.

with market share of about 11 per cent and 9 per cent respectively. Mr Chutani said. the segment grew 19.8 per cent. Last year. Dabur is rolling out the sugar-free variant of Chyawanprash nationally this year.” Mr Chutani said. the former accounting for 50-55 per cent. a Rs 180-crore market. is still a small market. meant to combat stress. so we tried the ‘role reversal’ strategy to show that homemakers too need Chyawanprash. Elaborating. estimated at Rs 225 crore. Dabur grew 24. a chocolate-granule adaptation to the malted drink form. a Rs 1. the industry grew 17.8 per cent. The Chyawanprash market. in West Bengal and Maharashtra. And the other members in the family don’t see a conflict there.4 per cent.Growth factor However. meant for children. The other major players are Baidyanath and Emami. Dabur used the campaign to tell mothers that school exacted a lot from children and Chyawanprash would help revitalise them. It has also launched Chyawanshakti. . Mr Chutani says that in the last three years. From April 2006 to March 2007. and Dabur grew 21. with the exception of malted drinks.000-crore market. Dabur accounts for 65 per cent of the sales. probably because of the taste and consumers’ perceptions of her household.5 per cent by value. It is test-launching Chyawan Junior. said Mr Chutani. he said honey is a Rs 120-crore market (organised sector) and glucose. By volume. That’s the case with most health supplements. both the brand and the market have been growing. Variants After last year’s test-launch. The North and the East are the biggest markets for Chyawanprash. Mr Chutani said.

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