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Analysis of Case Study Repositioning Dabur

Analysis of Case Study Repositioning Dabur
Dabur India Ltd. was ranked among the top four Fast Moving Consumer Goods Company in India. Even
though, the agency had maintains to boom income over the years, its positioning become not clear
within the minds of its consumers. The assignment accessible changed into to reposition the logo in
order that its brand architecture could be aligned with its brand equity. Dabur was located as an
umbrella logo and focused on corporate or umbrella branding more. Leaving this approach behind, it
moved to person branding. It additionally developed a new logo. The aim of repositioning changed into
a try to give its customers an Ayurvedic historical past with a modern-day feel.
Dabur India Ltd. started out off in 1884 as a small pharmacy. Today, one hundred twenty five years later
it has located itself as an FMCG in India. Dabur has come a long way in generating and advertising a
wide form of products primarily based on the conventional science of Ayurveda (Dabur, 2009).
These advertising efforts have seemed to work properly for the employer. It has established this sort
of robust position within the minds of its consumers that repositioning
to become a purchaser goods agency with a turnover of Rs. 28341.1 million (Dabur, 2009)
was feasible and without difficulty accepted.
The enterprise is split into three predominant SBUs or strategic enterprise units, namely, Consumer Care
Division, Consumer Health Division and International Business Division (Dabur, 2009). Furthermore, the
Consumer Care Division meets the varying needs of consumers by growing business portfolios of
Personal Care, Health Care, Home Care and Foods (Dabur, 2009).
Moreover, it operates in the international quarter in markets, namely, GCC, Nepal, Egypt, Nigeria,
Bangladesh and the US (Dabur, 2009). It effectively markets its manufacturers Dabur and Vatika
in these places.
Driving Factors
It repositioned itself to attraction to the younger era via giving the brand a present day attraction.
It changed into a brand that resorted to umbrella branding and catered to people of 35 years of age or
older (IMCR, 2005). The image of the logo become that of a hardcore Ayurvedic employer that
made remedy for older human beings. For this motive and plenty of others that follow,
the corporation had to reposition itself. This allowed it to grow by means of increasing turnover with the
aid of a big amount. Thus, the reasons for this repositioning are as follows
Potential of Growth of FMCGs in India
Dabur India Ltd. attempted to reposition itself as an FMCG in India from a conventional Ayurvedic
provider. One of the major motives for this changed into the potential increase within the lucrative,
US13.1 billion FMCG industry of India. Dabur moved the point of interest to FMCG because
it was doing a long way better (Menon Mogra, n.A.).
Already Dabur operated in hair care and woman personal care.
Therefore, there's immense ability for growth in these industries for Daburs Vatika and Fem. This need
to were an attractive sufficient motive for Dabur to transform itself to a Fast Moving Consumer Goods
company. Moreover, there's even more potential for boom inside the rural areas of India because of the
12.2 percentage of the population living there (Naukri Hub, 2009). In such areas, Ayurvedic
or conventional Indian remedy might have finished well. For
all these motives revolving around the capacity of increase inside the FMCG enterprise in India, Dabur
opted for this worthwhile and fast growing industry. This is evident in the CEO Duggals
growth plan assertion in 2003 in which he stated that We determined to set the size high, targeting at
least a robust double-digit boom. (IMCR, 2009). Dabur was searching for such growth drivers that
might give gain to the Ayurvedic brand equity.
Catering to the Younger Market
The largest segment of the total population in India is that of younger people. The youth of India makes
up the largest segment with almost seventy percent of people being younger than 35 years of age
(IMCR, 2009). This had important implications for DIL it needed to change its focus to position to a more
effective market.
It is also true that this segment of Indias population has the highest disposable income (IMCR, 2009).
Therefore, the younger segment of India was not only the largest segment, but also had the potential of
being the most profitable one. It was a wider target audience with even more money to spare on
branded goods.
Modernizing the Brand
The third motive why Dabur India decided to restructure and reposition itself changed into the want to
modernize the brand and its photo. As stated earlier, the emblem photo and positioning had a
very traditional and outdated touch to it. What Dabur needed to do so one can cater to a much
wider and unique market was to present a modern-day contact to the brand, to make it
updated, colorful and ultimately contemporary. It needed to be made a logo that each one the human
beings in India may want to relate to and consume.
Stiff Competition
Another purpose why Dabur felt the needs to reposition become due to the opposition in
the Ayurvedic market. It had to reposition itself so that thru all this clutter, it is able
to nevertheless make an area for itself in the minds of its consumers. It changed into affected by a case
of under-positioning. Dabur Chyawanprash additionally commenced to
face opposition from health food drinks market (Marketing Practice, 2008). Another main competitor for
Dabur within the ayurvedic enterprise became Himalaya herbals which additionally produced
and advertised herbal goods, like Dabur. Even although there has been little opposition, however there
has been still competition.
Streamline Business Operations
A factor that drove Dabur to reposition was the need to systemize and streamline its business processes
and operations. There was need to synergize the processes so that Dabur could establish itself as a
strong player in the industry. Dabur believes that Information Technology is an essential weapon.
Therefore, in order to become stronger in the industry, the company had to reposition itself to become
an IT intensive company and so had to streamline its processes by introducing IT initiatives.
Profits Under Pressure
Finally, Dabur opted for repositioning because there was a continuous downward pressure on the
profitability of the company in the year 2001 through 2002, as shown in Figure 1 below.
Insufficient Range
Another motive why the employer desired to reposition become because there had been gaps in
its pores and skin care and oral care categories. For example, its pores and skin care product Gulabari
did not appeal lots to more youthful people. In the oral care category, no longer an awful
lot attraction become created inside the toothpaste categories.
Companys Strategic Goals
One more cause the organisation desired to reposition was because this method turned into in step
with the companys desires and objectives. Dabur focuses on increase and expansion (Dabur, 2009).
Therefore, repositioning seemed like a good concept to hold up with the tradition and dreams.
Marketing Activities
Developing a Brand Strategy
Once the corporation determined to reposition itself to an FMCG agency in the starting of 2000, some
of advertising efforts and sports were finished so that the repositioned
message could be correctly positioned through. According to a employer spokesperson, Daburs first
priority changed into to get the emblem method right.
Move from Umbrella Branding to Unique Branding
The company, within the past, had centered on umbrella branding. It desired to trade this
to awareness more specific branding for 5 of its principal manufacturers Dabur, Hajmola, Vatika, Anmol,
and Real. Each of these changed into assigned to the FMCG operations. For example,
these five precise brands then have become umbrella brands for associated categories. For example,
Hajmola turned into the umbrella brand for all digestive manufacturers whilst Dabur was the umbrella
band for all fitness merchandise which includes the Dabur Chyawanprash.
Changing the Logo
The brand of the parent employer was modified. It had continually been a banyan tree.
This was changed to some thing more modern-day and relevant to the developing nature of
the emblem. Hence, a new identity for the organization turned into founded. The
new brand is clean and shows firmness. It advocates a emblem this is affirmative, sensible and
progressive (Menon Mogra, n.A.). The explosion of leaves and the colors of this new
tree specific growth, rejuvenation and internal strength
The company also introduced a new campaign for its Hajmola Candy. Hajmola was though to be a
digestive candy that performed the function well. Other than that there was nothing special about it.
Dabur wanted to target this digestive solution to the youth. As a result, they added an element of fun in
According to the company website, in the logo, the tree trunk depicts three people with their arms
raised. This expresses exultation (Dabur, 2009). The branches symbolize growth and expansion while the
roots suggest stability. The leaves show rejuvenation. The color (orange) depicts warmth and energy
while the font is similar to older font, preserving the identity of the company. Overall, the logo expresses
harmony (Dabur, 2009).
Celebrity Endorsements
To create a excessive profile for the emblem, the agency also were given their
brands encouraged via celebrities. In the case of Dabur Chyawanprash, Amitabh Bachan turned
into chosen as the celebrity endorser. This worked nicely for many markets, within
the international sector also as it allowed Dabur to capitalize on Amitabh
Bachans popularity in predominant parts of all its markets.
Introduction of Brands in New Product Categories
As another repositioning activity, Dabur launched a range of juices called Coolers in 2004. This worked
well with the consumers as they thought it to be more natural than anything else and this is what
mattered to them the most. Another market that Dabur expanded into was the soups market when it
introduced its first tomato soup in 2003. Furthermore, Dabur jumped into the oral care market to
introduce its tooth powder and red toothpaste. As an attempt to contribute more to this market, Dabur
acquired the herbal company Balsara. This was a good move for Dabur as increased its market share in
the category.
Expanding into Different Geographic Regions
Dabur also focused on promotional efforts in the rural areas where it sent mobiles that promoted its
Chywanprash, as a health supplement and a protection against germs. It also focused on different
markets such as that of Southern India. It carried out marketing activities there by customizing labels
and encouraged better stocking activities in these parts also. As a result, sales from this division grew.
Finally, Dabur grew in international markets also. Dabur took over a company called RedRock Ltd. in the
Middle East and later renamed it to Dabur International Ltd. Later, in 2003, subsidiary businesses in
countries such as Nepal, Pakistan, Nigeria and Bangladesh were also added to the market profile and
contributed to a significant amount of the total sales revenue.
Marketing Strategy
The advertising and marketing strategy can be tons of what Dabur has used inside the past. It have to,
very importantly, role itself as a correct first-rate brand. This is due to the fact India is looked as if it
would be a bad country. Consumers immediately link poverty with bad first-rate. For this motive, Dabur
will want to awareness on the great and positioning itself successfully, in the light of this.
Other than that, charges need to remain aggressive. Premium pricing, especially out of doors of India,
will not work properly. Therefore, it should price its products accordingly. It
msut also recognition on powerful distribution channels in these overseas markets, wherein there may
be little knowhow. In order to steady boom, it must advantage the accept as true with of
its supply chain companions and maintain exact relatiosnw ith them in order that Dabur products can
be marketed and distributed correctly.
Finally, as a ways as promotions are concerned, it have to continue to use celebrities which might
be known to be genuinely Indian and are famous globally. A accurate capability endorser could
be Shahrukh Khan who's liked by means of people everywhere in the international and is thought to
be one among the maximum a hit Indians.
Budget and Controls
Finally, Dabur need to have a separate finances and financials for its overseas markets. The
controls should additionally be one-of-a-kind and more powerful. The reason for this is that it's
far relatively hard to reveal how a success a campaign changed into in a overseas market. Therefore, as
a control, it have to rent specialists that will allow it to look the consequences of marketing
campaign in these markets and then give suggestions on how to enhance them.
Many different steps can be taken to enhance and keep controls in these markets.