2. ๏ฝ Introduction and Timeline
๏ฝ Repositioning and Vision
๏ฝ Strategy used and SBU structure
๏ฝ Portfolio and Acquisition
๏ฝ Product and its Timeline
๏ฝ Michael Porter
๏ฝ STP and Ansoff matrix
๏ฝ Pricing policy and BCG policy
๏ฝ Branding and Distribution Channel
๏ฝ Promotional strategy and Rural marketing
๏ฝ Competitors and Potential markets
๏ฝ SWOT and Recommendations
2
3. ๏ฝ DIL is one of the leading FMCG companies in India and the
world's largest Ayurvedic and natural healthcare company
๏ฝ Dabur is today among India's most trusted names.
๏ฝ The companyโs FMCG portfolio includes 5 flagship brands
with distinct brand identities:
โDaburโ - Natural Healthcare Products
โVatikaโ - Premium Personalcare Products
โAnmolโ - Affordable Personal care Products
โHajmolaโ - Digestives
โReal Activโ โ Fruit Based Drinks
3
4. ๏ฝ 1884 : birth of dabur
๏ฝ 1896 : first production unit
๏ฝ 1940 : launch of dabur amla hair oil
๏ฝ 1994 : raises first public issue
๏ฝ 2000 : crosses rs 1000 crore turnover
๏ฝ 2004-05 : dabur decided to reposition itself as an FMCG company
๏ฝ 2005 : accqusition of balsara group
๏ฝ 2007 : became the third most respected fmcg companies in india
๏ฝ (Business world november 2007)
2008 : START NEW โUโ RETAIL CHAIN UNDER H&V STORE LIMITED.
4
6. ๏ฝ Overall slowdown in FMCG sector
๏ฝ Stiff competition
๏ฝ To target young India- โ the largest segmentโ
๏ฝ Modernize old Brand Equity- โ intangible assetโ
๏ฝ Streamline/Synergize business operations
6
8. ๏ฝ Enter new category; innovate offerings
๏ฝ Repositioning as FMCG company
๏ฝ Moved away from umbrella branding strategy
๏ฝ Retaining dabur as corporate brand identity
8
15. ๏ฝ Growing at a CAGR of 33% in the last 6 years and contributes to
about 20% of total sales
๏ฝ Leveraging the 'Natural' preference among local consumers to
increase share in perosnal care categories
๏ฝ Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US
15
19. 2010 โ
Launch of
1989 โ
Hajmola
Launch of
Kaccha Aam
Hajmola
1978 โ
Candy
Launch of
Hajmola
Tablet
1884 โ
Dabur
established
20. โข Revenues Rs. 3416 Cr
โข Market Capitalization Over Rs. 16000 Cr
โข Hajmola One of the five major brands of Dabur
โข Hajmola Digestive Tablets 60% market share of
digestive tablets
โข Rural markets 75% contribution to their sales
20
21. Demographics Geographic Behavior
Age & Income Rural/Urban & Kind of users
โขCandy: Kids b/w 4- Country โข Regular/Loyal Users
12 years โข Tablets & Anardana of Dabur
โขTablets: All age and for rural markets
income groups โข Candy: Rural & Semi
Urban
21
22. โestablish Hajmola as a hygienic, tasty and easy-to-
consume post-meal digestiveโ
& โPost meal necessityโ
โข Positioned as a healthy product on the basis of โingredientsโ - An
ayurvedic product peopleโs implicit faith
โข Positioned as a low priced product (affordable)
โข Initially positioned as a tablet for grown ups With time
positioned itself as a more youthful product, with launch of candies
โข โpost-meal necessityโ by tapping the roadside eateries
22
23. Hajmola Growth Strategy
Ansoff Matrix
Existing Products New Products
Market Penetration โ Dabur Product Development โ
has to increase its existing Other products like Pudin
market share in urban Hara, Hingoli, etc. in the
Existing Market markets and capturing digestive products market
market share from
competitors
Market Development โ Diversification โIntroduction
Introduced various measures of Hajmola Candy in order to
to capture new markets such appeal to a younger
New Markets as interactive promotions consumer segment
with school students to
capitalise on the youth
segment
23
24. ๏ฝ Integrated pricing policy
๏ฝ Penetrative pricing in the cash cows like Health supplement,
digestives and Home care
๏ฝ Premium pricing in dog category like skin and baby care
24
25. ๏ฝ It is based on the combination of market growth and market share
relative to the next best competitor
๏ฝ It is based on the observation that a companyโs business unit can be
classified into four categories:
๏ฝ Stars
๏ฝ Question marks
๏ฝ Cash cows
๏ฝ Dogs
25
27. ๏ฝ Question marks (?)
most businesses start of as question marks.
๏ฝ They will absorb great amounts of cash if the market share
remains unchanged, (low).
๏ฝ Investments should be high for question marks.
๏ฝ Why question marks ?
๏ฝ Analysis with dabur india-
๏ฝ Chyawanprash
27
28. ๏ฝ Stars
stars are leaders in business.
๏ฝ High growth, high market share.
๏ฝ Effort should be made to hold the market share otherwise the
star will become a cash cow.
๏ฝ Analysis with dabur india-
๏ฝ Dabur glucose-32% (growth rate)
๏ฝ Dabur honey-26%(growth rate)
๏ฝ Meswak-39%(growth rate)
28
29. ๏ฝ CASH COW
They are foundation of the company and often the stars of
yesterday.
๏ฝ They extract the profits by investing as little cash as possible.
๏ฝ They are located in an industry that is mature, not growing or
declining.
๏ฝ Analysis with dabur india-
๏ฝ Chyawan prash
๏ฝ Hajmola
๏ฝ Real
29
30. ๏ฝ DOGS
Dogs are the cash traps.
๏ฝ Dogs do not have potential to bring in much cash.
๏ฝ Number of dogs in the company should be minimized.
๏ฝ Business is situated at a declining stage.
30
31. ๏ฝ A banyan tree has been the logo of the company for since its
inception.
๏ฝ The banyan tree stands for what has not been achieved.
๏ฝ The company has been branching out.
๏ฝ It has seven brands in the oral care category, nine in the hair
care space and six brands in foods.
31
32. 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
33. Dabur is trying to capture market by launching product with a regional
twist.
๏ฝ Example :
๏ฝ Planned an agressive marketing strategy to increase its sales in the
four southern states.
๏ฝ Currently 10 per cent sales of consumer care products in the
south
๏ฝ Renaming them in local languages
๏ฝ Come out with special products with distinct local flavour
๏ฝ 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
๏ฝ In tamil nadu- sivappu pal podi- lal dantmanjan.
๏ฝ The Astra training consultancy module- Bengali, Tamil, Telugu,
Malayalam and Kannada. 33
34. ๏ฝ T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)
๏ฝ Radio
๏ฝ Newspaper
๏ฝ Wall panting
๏ฝ Video vans
๏ฝ Sales propotion
๏ฝ Contest in melas or haats
34
35. ๏ฝ Dabur heavily advertised their product through various
contests-
๏ฝ Dabur amla sunder
๏ฝ Dabur amla susheel
๏ฝ Dabur yogya pratiyogita
๏ฝ Hajmola bahana championship
๏ฝ Melodious voice of punjab
๏ฝ Dabur gulabari miss fresh face
35
36. โข For advertising Amitabh Bachan presently and
Kapil Dev in the 1980โs
โข Consumer connect Initiatives: Using Dhabas and Road
side restaurants for publicity and extending reach
โข Promoted as a product that completes oneโs meal
โข Trendy and catchy tagline like:
โข โhazam sab, chahe jabโ
โข โhajmola kare khana completeโ
โข Having pictures of children on the sachets of candies
โขDabur's Hajmola and HUL's Vaseline have resorted to
spoofs or tried to piggy ride on the popularity of a rival brand
or to cash in on a controversy.
36
37. Daburโs promotional focus: 75% of total sales
from rural markets
โข Increasing Brand awareness
through fairs and festivals like the
Kumbh Mela and haats & holding
reality shows
โข Project Astra: Enhancing
distribution through advanced and
local sales training
โข Hajmola: Dress Me up campaign
38. C&F Agents
Distributors Retailers
Mother Depots
Raw Material
Suppliers Manufacturing
Location
Institutions
Intermediate
Products
Export
Customers
A mix of 4, 3,1 and 0 levels of distribution
38
39. 32 %
32 %
Retail Outlets
Medical Shops
Kirani Shops
Canteens
8%
General Store
4%
24%
39
41. Threat of Substitute Products
โฆ Dabur Hajmola a pioneer in its market the buyer
propensity to switch brands is low
โฆ Competition from parent company product like Pudin hara
Threat of Mobility
โฆ Dabur Hajmola 60% market share threat of Mobility is low
โฆ Long Established Brand First Mover advantage
Industry Rivalry
โฆ Competition from Local markets and other candy brands
โฆ Product attributes of Hajmola provided an advantage over
competition
42. Supplier Power
โฆ Low Price product Dabur Hajmola has to control its costs
โฆ Product is agriculture based suppliers are readily available
Buyer Power
โฆ Bargaining leverage is due to pricing of the product
โฆ Scarcity of equivalent competitive products in the market drives
bargaining power of consumers lower
42
43. โขLocal vendors who sell digestive
Local Markets products like ajjwain, amla, churan
Other Candy โขSubstitute candies like candyman
from ITC, eclairs from Cadbury
Makers
โขDabur hingoli and Pudin hara
Intra-Brand
Pharmaceutical โข Enzymes
โข Digestive Medicines
Digestive Products
43
44. โข More Penetration Possible
Urban Markets โข Restaurants like BBQ can have
them as after meal tablets
โข Have tie ups to serve hajmola
Railway Catering after every meal
Agencies โข Potentially a huge market
โข Introducing new flavors like
New Flavors ajjwain and black salt
44
45. Strengths Weaknesses
โข 60% Market Share โข Lack of innovative culture
โข Parent Brand has 125 years of history โข Brand is losing its relevance
โข Pan India presence
Dabur Hajmola
Opportunities Threats
โข Increasing cost of R&D has led to great โข Local Markets with products like
potential for outsourcing churan, ajjwain, etc.
โข Penetration in global markets with new โข Inability to cope with technical
culture,like entry into pakistanโs market advancements in industry
45
46. ๏ฝ 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.
๏ฝ 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.
๏ฝ 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.
๏ฝ But that doesn't appear to bother the company overmuch -- it is
too busy launching new products.
๏ฝ 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
