Repositioning Dabur
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Case Details:
Case Code : MKTG099
Case Length : 17 Pages
Period : 2001-2004
Pub Date : 2005
Teaching Note : Available
Organization : Dabur
Industry : FMCG
Countries : India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Restructuring Exercise
Though Dabur diversified into number of areas, the image of Dabur was that of an Ayurvedic company. In the public perception, Dabur products were associated with the 35-plus age group. With almost seventy percent of India's population below 35, it appeared that Dabur would be missing out on this mass market, which also had high disposable income...
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Aligning the Brand Architecture
Dabur was looking for growth drivers which could leverage the herbal brand equity of the company. "We decided to set the scale high, targeting at least a strong double-digit growth," said Sunil Duggal (Duggal), CEO, Dabur speaking about the growth plans the company set in 2003.
In order to achieve the targeted sales of Rs 20 billion by 2006, which translated to annual growth of 15-20 percent for three years from 2004 to 2006, the company identified personal and healthcare products as growth drivers. But there were gaps in Dabur's product range...
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Getting the 4Ps Right
In 2004, Dabur launched a new range in juices called Coolers which included traditional preparations like Aam Ka Panna,
along with others like pomegranate and water melon juice. "Consumers
perceive this as the next best thing to having a fresh fruit...
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Outlook
Dabur's repositioning exercise seemed to have achieved some success with a perceptible increase in sales and net profit margin of the company in 2004 (Refer Exhibit IX).
Nikhil Vora, Vice President, Research, SSKI Securities commented, "What the company had done is pretty positive and credible; it continues to innovate and renovate.
However, the company needs to keep the growth momentum in the categories in which it leads like Chyawanprash, honey and herbal digestives."... |
Exhibits
Exhibit I: Products of Dabur in 2004
Exhibit II: Products of Dabur in 2000
Exhibit III: Shareholding Pattern for Dabur India Ltd.
Exhibit IV: Vision, Stratgic Intent and Core Values of Dabur
Exhibit V: Summary of Financials from 1998-99 to 2002-03 for Dabur (Fmcg + Pharma)
Exhibit VI: Financials for Dabur FMCG for 2002-03 and 2003-04
Exhibit VII: The old and New Logo of Dabur
Exhibit VIII: What the New Logo Stands for
Exhibit IX: Earnings for Dabur for 2004-05
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