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 health care company in the world with a product range of more than 250+ herbal & 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 in-depth about Dabur and it’s marketing strategies. We have included SWOT Analysis and 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 professional from day 1.
Without further ado, let us learn more 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, skincare, 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 for improving 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 per cent of the overall turnover.
Dabur is always dedicated and focused on the good health and well-being of every household with a tagline- celebrate life justifying the vision.
Dabur aims to provide 100% natural products for its customers, as its believes-health is wealth.
Dabur Product Mix
Product mix refers to the graphical representation of a company’s product portfolio to understand all the industries and needs they fulfil. Dabur being a massive organisation with 250+ products covers multiple industries but focuses largely on FMCG or Fast-Moving-Consumer-Goods.
Currently, Dabur operates in consumer products such as Haircare, Oral care, Healthcare, Homecare, skincare, and Foods. It has an exclusive supply chain network, covering 6.7 retail outlets(in both urban and rural areas). Dabur is a leading producer of Ayurveda with 250+ herbal and ayurvedic products.
Dabur’s FMCG sector includes 5 flagship brands with their distinct identities-Dabur for being the master brand of natural healthcare products, Vatika for premium personal care, Hajmola for best digestive products, Real for fruit juices, and beverages, and Fem for skincare products.
Business Model of Dabur
Dabur follows a very unique business model called Umbrella Branding Strategy. It means that all products are under one brand name. The logo of Dabur is an old banyan tree that conveys Dabur’s heritage, dedication, and stability.
Dabur uses a 3 tier distribution system, i.e., from stockist – to wholesaler – to retailers – to final consumers. With this system, the products are made available in departmental stores, grocery shops, etc, across the country.
- The price of the different products of Dabur is reasonable to the people of every class. As one of the company’s key dreams is ‘back to nature’, all Dabur products are made with natural ingredients. Dabur’s brand-loyal consumer base claims that all of the company’s products are essentially organic.
- FMCG and pharmaceutical businesses were separated in 2003 to ensure a better clarification of products. This led to the discontinuation of the umbrella strategy that existed before.
- Sales Promotion is one of the main tools of the company’s successful marketing strategy. There are different sales marketing instruments that have been introduced by the organization for various goods so far. Coupons, gift sets, refunds on money, and festive sales are some of them. To improve the consumer base, merchandising, rewards, and exchange deals are also offered to clients.
MARKETING STRATEGIES 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’s marketing strategy aims at continuing its brand image by providing a variety of products and using print media and sales promotion for reaching out to its customers.
We will discuss the marketing strategy of Dabur in more detail now. Let us begin by learning more about the advertising strategy used by Dabur.
Dabur Advertisements Strategy
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.
And in the case of Dabur amla hair oil, Dabur featured Priyanka Chopra for the promotion of the product and she is seen getting a hair massage from her mother, which shows how Dabur amla hair oil improves mother-daughter relation while getting hair massage.
Digital Marketing 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 it’s marketing efforts to a newer medium.
The rationale for such a shift of marketing strategy comes from the acknowledgement 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 promotions. Dabur has been increasing its digital spend 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 capitalise on is the e-commerce store trend. These e-commerce stores have shown their efficiency and effectiveness in the Indian market. Dabur pushes it’s products through multiple e-commerce stores and targets fitness-conscious millennials as a part of its digital strategy.
SWOT Analysis of Dabur
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a technique used by the company to determine its competitive position, to form strategies and plans accordingly, and to achieve the organizational objective. A SWOT analysis measures internal and external factors, as well as current and future possibilities.
We have done in-depth research and have developed this SWOT analysis of Dabur for you, have a look:
- Dabur has a wide variety of products for each age group.
- Being a century-old brand, it has a strong brand image in the eyes of customers.
- Currently operating in over 60 countries, with 5000 distributors and 3 million outlets.
- Many unbranded and duplicate products are being sold under the name of Dabur.
- Dabur not only has competition from local brands, but also international players like Colgate.
- The era of modernization and instant food has led to an unhealthy lifestyle, and people are forced to take ayurvedic medicines and supplements like Chyawanprash, Hajmola, etc.
- Dabur products have an equally high demand in foreign markets.
- Expansion of the product line and introducing ayurvedic beverages can boost their business.
- Stiff competition from big MNC’s like ITC, HUL, Patanjali.
- With an increasing trend of ayurvedic medicines and supplements, many local brands have also entered the market.
We can see that being a global leader in Ayurveda and a century-old brand, Dabur has a strong brand image. Dabur has intense competition from big MNC’s like HUL, PATANJALI, ITC, etc. Dabur seeks the attention of customers by providing a variety of products, which also become a threat to the brand as many duplicates and unbranded goods are sold under the same name. Expanding the production line and introducing new products will give Dabur a better share in the market.
COMPETITOR ANALYSIS OF DABUR’S MARKETING STRATEGY
Dabur does not afford to have one single strategy to compete against its competitors effectively. It operates in the highly competitive FMCG industry consisting of large MNCs, such as HUL, P&G, PATANJALI, ITC, etc. It cannot afford to go for purely offensive strategies that directly affect the bottom line. Moreover, the basic nature of the marketplace is dynamic.
The deciding criteria for any policy adoption are that it should be based on the company’s strength, clear sustainable competitive advantage, and consumers’ needs and requirements.
- Dabur has a very strong and wide supply chain network that covers both rural and urban areas through 600+ distributors&2.8 million retailers. This network has helped Dabur reach every corner of India, which gives it a competitive edge over well-established players like HUL, P&G, ITC, etc.
- The FMCG & pharma industry is already overcrowded with local & national players. Dabur has many brands that don’t have a stronghold in the market like Home care & personal care products while it is the market leader in some of the product categories Chyawanprash, Health supplements, Glucose-D & Real Fruit juice.
- All the sections of society are targeted by Dabur, like other companies, but middle-class customers form the major group because of more purchasing power.
BCG MATRIX IN MARKETING STRATEGY OF DABUR
BCG Matrix is created by the Boston Consulting Group – It is also known as Boston or Growth-Share Matrix. This planning tool is used by companies to gain insights from which products are generating better profits, which products need more improvements, and helps businesses identify the strategic position of the brand and its potential. This tool uses two aspects to measure the growth of the products, which are:-
- Relative market share- Relative market share is one of the dimensions used to measure a company portfolio. Increased corporate market share results in higher returns on cash.
- Market growth rate- High growth rates in the sector mean higher earnings and often income, but they also absorb lots of cash that is used as an investment to drive more growth.
The BCG growth-share matrix contains four distinct categories: “Dogs,” “Cash cows,” “Stars,” and “Question marks.”.
These are the products that are low in growth rate but have a high market share. They are leaders in their industry and do not require much investment to maintain their position. They prove to be money churners for the company and because of major competitors in the same sector they are not expected to show any growth soon and are considered cash cows.
Stars are the products that are high in growth rate as well as market share. These are the best-selling products and have an important role in boosting up the financial strength of an organization. They have a constantly rising demand and high opportunity for future growth.
As the BCG matrix considers the current position of the products, the products that are not financially contributing and have an uncertain performance at present are put under this category, but there are some chances of future growth and demand of these products.
Products that are not performing well and prove to be a liability for the firm, rather than an income source, are considered under the dog category. There are very few chances of future growth and the company often decides to discontinue these types of products.
Dabur is one of the biggest Indian suppliers of FMCG and ayurvedic/health products. It has a global presence on almost all of the world’s continents. Dabur went through a tie-up in 2017 with Amazon, the largest e-commerce platform. So, the company has got exposure to a marketplace to sell Ayurvedic products online. The company has established a laboratory to examine the key food products such as honey to remove the condition of adulteration. Dabur is often responsible for providing consumers with authentic Ayurvedic medicines and FMCG products. 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 per cent 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.
Thank you for reading this case study. If you like this please comment below and let us know your views and if you want to connect with us please comment down your email id, we will try to reach out to you.