In-Depth Case Study on Marketing Strategy of Dabur

Dabur India is a household name in the natural foods and ayurvedic industry, and a company that is famous for its marketing efforts. Based on the background of around 135 years of experience and quality, Dabur India Limited is the largest Ayurvedic and natural healthcare company in the world with a product range of more than 250+ herbal and Ayurvedic items. It is the 4th Largest FMCG Company in India, with headquarters in Ghaziabad and Mohit Malhotra as the CEO.

Let us begin this case study by learning more about Dabur.

In this case study, we will decode and understand the SWOT Analysis of Dabur and its marketing strategy. We have also included the BCG matrix analysis to further your understanding of the topic. This case study is curated with the help of our Virtual Interns who connect and work with us from across the country. At IIDE, we believe in teaching through action. Our students learn through live projects and practically oriented classes to become reliable professionals from day 1.

Without further ado, let us learn more about Dabur.

About Dabur

Dabur India Ltd is one of the most trusted and leading FMCG companies in India. It was founded by Dr. S.K. Burman in 1884. In the last 100+ years, the small firm has grown ginormous. Currently, Dabur has accumulated a market share of over Rs 80,000 crore with annual returns of Rs 8,700 crore. Their main product ranges deal with hair care, oral care, health care, skin care, home care, and packaged food.

Dabur became a public limited company in 1996 and within 4 years it marked the leading position with a turnover worth Rs 1,000 Crore. Three distinct divisions were established to improve operations and management, namely, Goods for Health Care, Family Products, & Dabur Ayurvedic Specialties.

Internationally, Dabur’s goods enjoy a large reach and are available in more than 100 countries. Overseas revenue from Dabur today accounts for more than 27 percent of the overall turnover.

Current News about the brand

• The Delhi High Court has issued a restraint against Dabur from selling its product “Cool King Thanda Tel.” This restraint is due to the product’s packaging being deemed deceptively similar to Emami’s “Navratna Ayurvedic Oil”.
• Dabur plans to spend more money on ads and promotions, as the prices of raw materials used for the products are getting cheaper, which can make more profit in the fiscal year 2024.

Buyer Persona

Marketing Strategy of Dabur

A marketing strategy is a long-term plan carried out to promote the goods and services of a company. Strategies are the long-term plans made to achieve the organizational goal and marketing deals in the selling or promotion of goods and services with a primary aim of customer satisfaction.

Dabur launched its community-based initiative called “My 10 Kg Plastic” in Jammu city on 6th September 2023. It serves as a form of promotion, fostering consumer engagement and stronger emotional connections. This aligns with Dabur’s CSR efforts and positions the brand as socially conscious in the market.

In August 2023, Dabur Lal Tail’s new ad for Independence Day speaks about building a stronger India and celebrating a mother’s love through generations. This ad revolve­s around the heartwarming tale of a young mothe­r who embraces the use­ of Dabur Lal Tail for her child’s well-being. The ad beautifully illustrates a flashback to when the mother herself was just a child, and how her own mother utilised the same oil for her soothing massages.

Dabur’s marketing strategy aims to continue its brand image by providing a variety of products and using print media and sales promotion to reach out to its customers.

Digital Marketing Strategy of Dabur

Dabur is known for its use of traditional promotional mediums but they are shifting their marketing strategy to a digital-first approach. In an insightful interview taken by BrandEquity of A.C. Burman, the Chairman of Dabur, he talked very intensely about the digital-first approach for Dabur and how the company will shift its marketing efforts to a newer medium.

The rationale for such a shift in marketing strategy comes from the acknowledgment of the fact that social media and other digital platforms provide far more to a marketer in terms of effectiveness than any previous medium of promotion. Dabur has been increasing its digital spending over the last few years. From the year 2017, they have increased their digital marketing spending by 33% in 2018. They spent a total of RS1.99 billion in the year 2018-19.

Another aspect that Dabur wishes to capitalize on is the e-commerce store trend. These e-commerce stores have shown their efficiency and effectiveness in the Indian market. Dabur pushes its products through multiple e-commerce stores and targets fitness-conscious millennials as a part of its digital strategy.

Marketing and Advertising campaigns of Dabur

Dabur already holds on to print and television advertising and recently is planning to take over digital media as a medium for advertising its products.

As we have seen, the cancer patients were paid homage in the advertising of Dabur Vatika, as a salutation notice for battling with the disease. The commercial will reach the consumer’s emotional side; mostly the ladies who use the Dabur Vatika.

In recent Dabur Amla hair oil ads, Dabur featured Deepika Padukone for the product’s promotion where she shops with a friend, choosing Dabur Amla and saying that as the original. She highlights its benefits, like vitamin C, antioxidants, and omega-3, for stronger, healthier hair.

Celebrity endorsements have helped Vatika reach a wider audience and attract new customers. Many of their television advertisements feature Kareena Kapoor Khan and Samantha Ruth Prabhu which is likely to have been an advantage for the brand in terms of increasing visibility and credibility in the market.

Top 5 Competitors of Dabur

• Hindustan Unilever Limited (HUL) was established in 1933 and has been a part of India’s consumer goods market for more than 90 years. They offer products in domestic care, personal care, meals, and liquid. Brands like Surf Excel, Vaseline, Dove, Lipton, and many others come under HUL, which Indian families rely on for its quality and convenience.
• Emami was founded in 1974. It is a well-established company, celebrated for its variety of personal care and healthcare products. Their portfolio includes popular brands like Navratna, Boroplus, Fair and Handsome, and Zandu, offering a variety of skincare, wellness, and grooming solutions. 
• Patanjali Ayurved Limite­d was established in 2006 by Ramdev and Balkrishna. Their core focus revolves around traditional Indian Ayurve­dic principles, with a strong emphasis on incorporating natural ingredie­nts such as herbs and spices into their products. They utilize natural re­medies for personal care and overall health enhance­ment.
• Himalaya Herbals is a popular brand, established in 1930. It is renowned for its commitme­nt to Ayurveda and offers a range of natural and herbal products including skincare, haircare­, and wellness. Their face wash and soap are more popular than others.
• Marico is a le­ading company in health, beauty, and wellne­ss products and has a presence in over 25 countries in Asia and Africa. It was established by Harsh Mariwala in 1990 and has gained recognition for nurturing top brands across hair and skin care, cooking oils, immunity-boosting foods, male grooming, and fabric care.

Example of failed campaigns

Fem Bleach Ad Controversy: 

Issue: The advertisement for Dabur’s Fem Creme bleach shows two ladies celebrating their first Karva Chauth. The commercial drew mixed reactions: whilst many people praised it for its inclusivity, there have been a few who objected to Hindu festivals being misused. 

Backlash: Madhya Pradesh Home Minister Narottam Mishra said he had directed the Directed General of Police (DGP) to ask the company to withdraw the advertisement. He also told the reporters that he considered this as a serious matter because the clippings were made on the rituals of Hindu festivals. The ad showed lesbians celebrating the fest by seeing through the sieve was objectionable and hurt religious sentiments.

Brand Response: The advert sparked outrage and discussions approximately LGBTQ+ representation and sensitivity in advertising and marketing. Dabur took down the Fem Bleach ad after the controversy and MP Minister’s warning, spotting the need for extra accountable advertising and marketing.

Conclusion

Dabur India’s brand portfolio now has 23 brands, each with sales higher than Rs 100 crore. In the last year, they added five new brands. Their juice brand, Real, achieved remarkable growth, with revenues surpassing Rs 1,600 crore and a target to reach Rs 2,000 crore soon. Dabur plans to spend more money on ads and promotions amid softening commodity prices, which would help them make more profit in the fiscal year 2024.

Dabur has primarily faced the challenge of rigid competition and because of its brand name and high-quality product, customers believe that Dabur provides 100 percent natural products, it has always overcome the issue. The social factors that influenced the clients’ emotions were targeted by Dabur. The desire to change ahead of others and to always set new standards in corporate governance & creativity is what separates Dabur from others.

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