Marketing Strategy

Dabur Hajmola
Group 9

Flow of presentation

Introduction and Timeline

Repositioning and Vision
Strategy used and SBU structure
Portfolio and Acquisition
Product and its Timeline
Michael Porter
STP and Ansoff matrix
Pricing policy and BCG policy
Branding and Distribution Channel
Promotional strategy and Rural marketing
Competitors and Potential markets
SWOT and Recommendations
2

Introduction

DIL is one of the leading FMCG companies in India and the

world's largest Ayurvedic and natural healthcare company
Dabur is today among India's most trusted names.
The companys FMCG portfolio includes 5 flagship brands
with distinct brand identities:
Dabur - Natural Healthcare Products
Vatika - Premium Personalcare Products
Anmol - Affordable Personal care Products
Hajmola - Digestives
Real Activ Fruit Based Drinks

DABUR INDIA LIMITED

1884 : birth of dabur

1896 : first production unit
1940 : launch of dabur amla hair oil
1994 : raises first public issue
2000 : crosses rs 1000 crore turnover
2004-05 : dabur decided to reposition itself as an FMCG company
2005 : accqusition of balsara group
2007 : became the third most respected fmcg companies in india
(Business world november 2007)
2008 : START NEW U RETAIL CHAIN UNDER H&V STORE LIMITED.

Portfolio

 The Brand Dabur turn-around

Reasons?

Overall slowdown in FMCG sector

Stiff competition

To target young India- the largest segment

Modernize old Brand Equity- intangible asset

Streamline/Synergize business operations

Reinventing the Mother

Logo

Enter new category; innovate offerings

Repositioning as FMCG company

Moved away from umbrella branding strategy

Retaining dabur as corporate brand identity

Vision
Dedicated to the health and well
being of every househould

Strategy used by dabur

Four fold strategy

Expansion

Acquisition

Innovation

Regional branding

Promotional strategy

Distribution strategy
10

Dabur SBUs Structure

11

CCD structure

12

Dabur Power Brands

Overview of Dabur
Products

14

International Business Division

(IBD)

Growing at a CAGR of 33% in the last 6 years and contributes to

about 20% of total sales

Leveraging the 'Natural' preference among local consumers to

increase share in perosnal care categories

Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

15

World wide presence

16

Acquisition

17

Product

18

Timeline

Key Information
Revenues

Rs. 3416 Cr

Market Capitalization
Hajmola

Over Rs. 16000 Cr

One of the five major brands of

Dabur
Hajmola Digestive Tablets
of

60% market share

digestive tablets

Rural markets 75% contribution to their sales

20

Segmentation & Target

Market

21

Positioning
establish

Hajmola as a hygienic, tasty and easy-toconsume post-meal digestive

& Post meal necessity

Positioned as a healthy product on the basis of ingredients - An

ayurvedic product

peoples implicit faith

Positioned as a low priced product (affordable)

Initially positioned as a tablet for grown ups

post-meal necessity by tapping the roadside eateries

With time positioned itself as a more youthful product, with launch of candies

22

Hajmola Growth Strategy

Ansoff Matrix
Existing Products
Market Penetration Dabur
has to increase its
existing market share in
Existing
urban markets and
Market
capturing market share
from competitors
Market Development
Introduced various
measures to capture
new markets such as
New Markets
interactive promotions with
school students to
capitalise on the youth
segment

New Products
Product Development
Other products like Pudin
Hara, Hingoli, etc. in the
digestive products market

Diversification
Introduction of Hajmola
Candy in order to appeal to
a younger consumer
segment

23

Pricing Policy

Integrated pricing policy

Penetrative pricing in the cash cows like Health

supplement, digestives and Home care

Premium pricing in dog category like skin and baby care

24

The BCG growth - share matrix

It is based on the combination of market growth and market share

relative to the next best competitor

It is based on the observation that a companys business unit can

be classified into four categories:

Stars
Question marks
Cash cows
Dogs

25

26

Question marks (?)

most businesses start of as question marks.

They will absorb great amounts of cash if the market share

remains unchanged, (low).

Investments should be high for question marks.

Why question marks ?

Analysis with dabur indiaChyawanprash

27

Stars
stars are leaders in business.

High growth, high market share.

Effort should be made to hold the market share otherwise

the star will become a cash cow.
Analysis with dabur indiaDabur glucose-32% (growth rate)
Dabur honey-26%(growth rate)
Meswak-39%(growth rate)

28

CASH COW
They are foundation of the company and often the stars of
yesterday.

They extract the profits by investing as little cash as

possible.

They are located in an industry that is mature, not growing

or declining.
Analysis with dabur indiaChyawan prash
Hajmola
Real

29

DOGS
Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage.

30

Branding

A banyan tree has been the logo of the company for since
its inception.

The banyan tree stands for what has not been achieved.

The company has been branching out.

It has seven brands in the oral care category, nine in the

hair care space and six brands in foods.

31

Branding
Hazam sab, chahe jab
Hajmola kare khana complete
Chatpata swad, jhatpat aaram
People could relate to the product immediately because of the 125
year long trust in Dabur
Brand has innovated to keep up with the evolution of consumers

32

Regional Branding
Dabur is trying to capture market by launching product with a
regional twist.

Example :

Planned an agressive marketing strategy to increase its sales in

the four southern states.
Currently
10 per cent sales of consumer care products in the
south
Renaming them in local languages
Come out with special products with distinct local flavour
Even roping in local celebrities as brand ambassadors, the
company is adopting every trick in the book to drive deeper into
the south indian markets
In tamil nadu- sivappu pal podi- lal dantmanjan.
The Astra training consultancy module- Bengali, Tamil, Telugu,
33
Malayalam and Kannada.

Promotion strategy

T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)

Radio

Newspaper

Wall panting

Video vans

Sales propotion

Contest in melas or haats

34

Dabur heavily advertised their product through various

contests-

Dabur amla sunder

Dabur amla susheel

Dabur yogya pratiyogita

Hajmola bahana championship

Melodious voice of punjab

Dabur gulabari miss fresh face

35

Promotional Strategy
For advertising

Amitabh Bachan presently and

Kapil Dev in the 1980s

Consumer connect Initiatives: Using Dhabas and
Road side restaurants for publicity and extending
reach
Promoted as a product that completes ones meal
Trendy and catchy tagline like:
hazam sab, chahe jab
hajmola kare khana complete
Having pictures of children on the sachets of
candies
Dabur's Hajmola and HUL's Vaseline have resorted to
spoofs or tried to piggy ride on the popularity of a rival

36

Key focus: Rural Marketing

Daburs promotional focus: 75% of total sales
from rural markets
Increasing Brand awareness
through fairs and festivals like the
Kumbh Mela and haats & holding
reality shows
Project Astra: Enhancing
distribution through advanced and
local sales training

Hajmola: Dress Me up campaign

Distribution Channels

A mix of 4, 3,1 and 0 levels of distribution

38

Availability
32 %

32 %

8%

Retail Outlets
Medical Shops
Kirani Shops
Canteens
General Store

4%

24%

39

Micro Environment
Porters Five Forces Model

Threat of Substitute Products

Dabur Hajmola

a pioneer in its market

the buyer

propensity to switch brands is low

Competition from parent company product like Pudin hara
Threat of Mobility
Dabur Hajmola

60% market share

threat of Mobility is

low
Long Established Brand
Industry Rivalry

First Mover advantage

Competition from Local markets and other candy brands

Product attributes of Hajmola
competition

provided an advantage over

Contd.
Supplier Power
Low Price product

Dabur Hajmola has to control its costs

Product is agriculture based

Buyer Power

suppliers are readily available

Bargaining leverage is due to pricing of the product

Scarcity of equivalent competitive products in the market
drives bargaining power of consumers lower

42

Competitors

43

Potential Markets

44

SWOT Analysis

45

Recommendations

The FMCG environment in India and overseas is competition

intensive and companies need to focus on branding, product
development, distribution and innovation to ensure their survival.
It is probably better for a company to create a few champion
brands rather than dissipate its energies on too many products,
because that is what will result in sustainable margins," says
Manish Saigal, associate director, KPMG.
Dabur isn't the category leader in any of the consumer product
categories where it has a presence: it is No. 4 in shampoos, No. 3
in toothpastes and nowhere in the reckoning in toilet soaps.
But that doesn't appear to bother the company overmuch -- it is
too busy launching new products.
The company should discard products where volumes aren't
growing fast enough to deliver margins. Dabur isn't ready to be
quite so brutal with Meswak (also inherited from Balsara), but the
company is working on new ways to rejuvenate and promote the
brand.
46

Thank You

47