Post on 23-Dec-2015
transcript
Introduction: What is that life worth which cannot bring comfort to others…………………………………Dr.S.K.Burman
Founder Dr.S.K.Burman, 1884
A small pharmacy in Kolkata
Public Ltd Company in 1986
3rd largest FMCG
Turnover of Rs.2233 Crore, FY07
Dabur India Consolidated Sales 2002-06
1187.11329.6
1537
1900
0
500
1000
1500
2000
2002-03 2003-04 2004-05 2005-06
year
Sal
es (
Rs.
cro
re)
Diversified Portfolio
Dabur Business category
Consumer caredivision
Consumer health Care division
Dabur foods Ltd(de-merged
With DIL, 07)
“The Brand Dabur” turn-around
Why?
Overall slowdown in FMCG sector
Stiff competition
To target young India- “the largest segment”
Modernize old Brand Equity- “intangible asset”
Streamline/Synergize business operations
Enter new category; innovate offerings
Repositioning as FMCG company
Moved away from Umbrella branding strategy
Retaining Dabur as corporate brand identity
Dabur’s New Brand Architecture5 Power Brands
Dabur Vatika Anmol Hajmola Real
Health care products
Herbal Beauty,
Premium image
Mass market,
Value for money
Naughty n Tasty Digestive
Umbrella brand for juice and other foods; aimed at up market consumer
Special focus on South India
South India contributed only 7% for Dabur Contributed 25% in overall FMCG sector
Dedicated marketing team created
Three step approach:POS promotion and better stocking practiceCustomized packaging and commercialsCustomized product launch Sales increased from 7% to 10% (2002-06)
Other initiatives worth mentioning
Dabur International Ltd, Dubai 2003
11.4% of total sales 2005-06
Introduced SAP ERP System-2005
switched to E-Procurement
Inorganic Expansion; Balsara
The Flip Side
Indiscriminate use of the brand across price points may dilute the brand equity.
A finger in many pies
Brand worth still not 100% satisfactory
The Path Ahead
Changing Demography
Growth in purchasing power
Growth in rural and urban demand
Telecom, lifestyle, entertainment et al sectors competing with FMCG for share in consumer’s wallet
Growth in organized retail sector
Recommendations
Expansion
Keep Innovating
Enter organized retail with exclusive customized formats
Opt out of non-profiting sectors
Crystal Clear Brand and Product Differentiation
Consolidate Herbal and Natural differentiation strategy