Abstract:
The case discusses the entry of Indian FMCG giant Dabur India Ltd (Dabur) into the ready-to-drink beverage category with the launch of Hajmola Yoodley (Yoodley), an ethnic drinks range. Yoodley is an extension of Dabur’s popular digestive brand Hajmola into the fast growing ethnic beverages category in India. Yoodley is an example of Dabur’s continued focus on innovation to drive strong growth. The case discusses the rationale behind the launch of Yoodley, product attributes, and competition in the ethnic beverages category. It concludes by discussing whether Yoodley would be able to make a dent in the crowded beverages market in India and give its competitors a run for their money.
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Issues:
» Understand the reasons behind Dabur’s entry into the ethnic drinks market.
» Study the dynamics and risks involved in brand extension.
» Understand the issues and constraints involved in entering a new market segment.
» Examine the challenges faced by Dabur with respect to its foray into the ready-to-drink beverage category in India.
» Explore the strategies that Dabur could adopt in the future to succeed in the ethnic beverages market.
Introduction
On July 27, 2015, Indian Fast-Moving Consumer Goods (FMCG) giant Dabur India Ltd (Dabur) extended its popular digestive brand Hajmola into the growing ready-to-drink beverage category with the launch of Hajmola Yoodley (Yoodley). Priced at Rs 30 (US$ 0.45) for a 250ml pack, Yoodley, an ethnic drinks range, was available in six flavors – Ajooba Aam Panna (green mango drink), Nimboora Shikanji (a spicy lemon drink), Guava No.1 (guava flavor), Jazbaati Jaljeera (a digestive cumin drink), Golmaal Golgappa (Indian water ball), and Kabhi Kala Kabhi Khatta (a tangy blackberry drink). According to Sanjay Singal (Singal), Marketing Head, Foods, Dabur India, “Innovation has always been an essential part of our business strategy and our vision. From its birth as a digestive tablet in the 1970s, brand Hajmola was later extended to the candy market. The previous year saw the brand strengthening its presence in the Confectionery space with the launch of Hajmola Chuzkara. Hajmola Yoodley is the latest example of Dabur’s continued focus on innovation to drive strong growth. The product, with its amazing taste and bold communication, would stand out in the ready-to-drink beverage category....
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Key words:
Brand extension, Hajmola, Hajmola Yoodley, Ethnic beverages, Ready-to-Drink Ethnic Beverages, Dabur, Indian beverage industry, ‘Yoodley Shararat University’">
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