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Dabur India Ltd. Brand Revisited. 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 3 rd largest FMCG Turnover of Rs.2233 Crore, FY07.
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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
“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
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 practice • Customized packaging and commercials • Customized 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