Repositioning at Dabur *

Abstract:

The case deals with the restructuring initiatives Dabur took in the early 2000s. In order to cater to a wider audience, Dabur decided to reposition itself as an FMCG company with a herbal plank, moving away from its earlier image of an Ayurvedic medicine manufacturer. In order to convey a new vibrancy, the company has adopted new product offerings and new packaging. Dabur's promotional campaigns includes leading Bollywood actors and sportstars. Dabur moved away from an umbrella branding strategy and went in for individual branding. It pruned products which were not aligned with its brand architecture. It also took concerted steps towards geographical expansion to international markets, and within India, focused on regions like southern India, which it had earlier neglected. The company's revenues in 2004-05 reveal that the changes undertaken by the company have started showing results.

Issues: » Understand why a company moves away from its core platform. » Understand the strategies adopted by a company to change its core platform. » Understand how confusion about a brand sets in in the mind of consumer because of the use of the same brand name for diversification into different areas. » Understand how a brand is repositioned. » Understand how alignment of product, price, promotion and place is brought about. » Understand the marketing activities undertaken to rejuvenate a brand. » Understand how changes in demographics and psychographics affect an organisation's vision. » Understand how acquisitions can add value to the marketing strategy of a company.

Questions for Discussion:

1. Analyse the reasons that impeeled Dabur to refine its Ayurvedic image to that of a herbal FMCG company?
2. What were the action plans Dabur undertook as part of its restructuring? How did they help close the chinks in its marketing armour?
3. Dabur targeted sales of Rs 200 billion by 2006. Hence it needed to grow annually at a rate of 15-20 percent in years 2004, 2005 and 2006. Comment on the growth strategies adopted by Dabur.

Key words:
Dabur, Brand Repositioning, Brand Architecture, Brand Equity, Umbrella Branding, Brand Management, 4Ps of Marketing, FMCG Industry, Vision, Strategic Intent, Core Values, Vatika, Anmol, Real and Hajmola

*Note : This case is a simplified version of a longer case study, and is intended for learners for whom English is a foreign language. The longer version of this case study (MKTG099) is available at: http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG099.htm