The document discusses Dabur India Ltd, an Ayurvedic and herbal healthcare company. It underwent restructuring in 2000 to address issues like a narrow target segment. It developed five power brands, expanded markets geographically and by segment. Dabur aims to double revenue by 2010 through international alignment, new markets, and a differentiated approach against competitors in healthcare, home care, foods and personal care. It uses market segmentation across geographic, demographic, psychographic and behavioral factors. Recommendations include creating a niche in integrating Ayurveda with science, innovative products, e-commerce, awareness of herbal benefits, and a focus on South India.
2. 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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5. 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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6. 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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8. Dabur Vatika Anmol Hajmola Real
Health
Care
Product
s
Herbal
Beauty,
Premiu
m
Image
Mass
Market,
Value
For
Money
Tasty
and
Digestiv
e
Umbrell
a Brand
for Juice
& Other
Foods
FIVE POWER BRANDS
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9. SEGMENTATION
Geographic
• Region
• City
• Rural & semi-urban
Demographic
• Age
• Gender
• Income
Psychographic
• Socio-economic
• Lifestyle
• personality
Behavioral
• Consumer preference
• Taste /Benefits
Market
Segmentation
10. 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
13. 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
14. 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
16. 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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17. 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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18. 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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19. 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
20. 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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22. 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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23. 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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24. 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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