Marketing is the management process responsible for identifying, anticipating and satisfying

consumers' requirements profitably. The societal marketing concept holds that the

organization’s task is to determine the needs, wants, and interests of target markets and to

deliver the desired satisfactions more effectively and efficiently than competitors, in a way

that preserves or enhances the consumer's and the society's well-being. 

(Kotler, Philip. Marketing management: analysis, planning, implementation and control 8th

ed. Prentice-Hall, 1994) 

The term marketing has changed and evolved over a period of time, today marketing is

based around providing continual benefits to the customer, these benefits will be provided

and a transactional exchange will take place. Philip Kotler defines marketing as ‘satisfying

needs and wants through an exchange process’ 

...... 

2. About Dabur India Limited 

Dabur India Limited is one of the leading consumer goods companies of India with interests

in healthcare, personal care and foods. Dr.S.K. Burman established Dabur in the year 1884. 

For more than a century Dabur has worked in active collaboration with nature to provide the

best of herbal health and personal care products to its consumers. Today, Dabur is all set to

take this abundant knowledge of Ayurveda to global frontiers. Knowledge is the key to

growth in today's world. Whatever the industry is, it is the knowledge, which provides

cutting edge to individual and organizations. For more than a century nature has been a rich

source of knowledge for Dabur. Nature has not only given us the ingredients for all our

products but has also taught us how to create a harmony within and without the

organisation. Nature has inspired us in all our acts. Ayurveda - the science of life is based on

principles of nature. All Ayurvedic preparations have their ingredients derived from Nature.

Dabur has converted the healing properties of natural ingredients and the age-old

knowledge of Ayurveda into contemporary healthcare products to improve health problems

of its consumers. 

Dabur India Limited understands its responsibility as a corporate house. “We have not only

set our sight on increasing turnover and profitability of the company but also on propagating

Ayurveda - the Indian system of medicine.” 

Abstract 

The caselet provides an overview of brand management strategy adopted by Dabur for

its personal care brand Dabur Vatika. The caselet follows the meticulous brand building

initiatives taken by the company, from the launch of Dabur Vatika in 1995 to it

becoming a Rs 1 bn brand by 2003. The caselet also examines the objectives and

elements that were involved in Vatika’s brand building exercise. 

Issues:

  » Brand management strategies

  » Product differentiation

  » Packaging as a marketing communication tool

  » Importance of choosing the right celebrity and its

influence on the brand equity 

  » Brand extensions and communication strategy

Introduction

Until the early 1990s, Dabur, the 100-year old ayurvedic

products manufacturer, was looked upon as a rather staid

company that marketed herbal and ayurvedic products.

But the launch of Dabur Vatika in 1995 brought about a sea change in that perception.

Within six years of its launch, Vatika had become the market leader in the value-added

hair oils segment. Its success pushed Dabur into the league of top FMCG product

companies in India. Dabur Vatika’s success can be attributed to the company’s

differentiated product offering and meticulous brand building initiatives. The company

concentrated on differentiating the brand in all aspects, right from positioning to

packaging. At the time of its launch, Dabur positioned Vatika as value-added hair oil

that contained pure coconut oil enriched with natural ingredients such as henna, amla

(gooseberry), and lemon. Till then, the hair oil market had been dominated by plain

coconut oil brands with Marico’s flagship brand, Parachute, being the market leader. 

Questions for Discussion:

1. Dabur Vatika, one of the youngest brands in the country (launched in 1995), has

become a leading brand in the natural personal care product segment. What were the

factors that enabled Vatika to become a flagship brand of Dabur in such a short span of

time?

2. Marketing communications play an important role in building brands. Discuss the role

played by marketing communications in making Dabur Vatika a successful brand.

Here is an interesting example of rural marketing in India FMCG major Dabur is unleashing a marketing blitz across the country through beauty pageants, singing contests and model hunts to penetrate rural and semi-urban market.Dabur is focusing on states like UP, Punjab, Bihar, Rajasthan and MP for promoting various brands, including Dabur Amla Hair Oil, Vatika hair care range and Gulabari skin care products.

Target Segment:Rural sales accounts for 50 per cent of Dabur's turnover and hence this push into Rural heartland, with these activities Dabur seems to be targeting young ambitious youth in rural India. Dabur's strength has always been in North India and it is aiming to build upon its strengths by focusing on these core 5 North Indian states with huge populations and some amount of purchasing power

Activities:

Dabur is planning to tap the existing users of loose mustard oil, around 80 per cent of whom reside in rural India, and convert them into loyal customers of its brand. In order to reach out to them Dabur Amla has launched "Banke Dikhao

Rani Pratiyogita" in Rural India which is a rural beauty and talent show. This will be spread across 5 states UP, Punjab, Bihar, Rajasthan and MP spread across 1000 cities.

Dabur is also launching a singing and talent hunt contest "Dabur Vatika Koyal Punjab Di" to mark the launch of its range of natural conditioners, including the Vatika conditioners and a college beauty contest 'Dabur Gulabari Miss fresh face of UP'.

via ET

 

Labels: Dabur Marketing Strategy, rural marketing, rural marketing casestudies, Rural marketing examples, rural marketing in india,Technology, traditional marketing

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R E L A T E D P O S T S

In 2004, Dabur India Limited (Dabur) which started as a medicine manufacturer in 1884, was ranked at number four in terms of sales among the Fast Moving Consumer Goods (FMCG) companies in India. The company now has interests in hair care, health care, oral care and foods as well (Refer Exhibit I). Though its spread into various segments has ensured that the company's bottom-line has improved over the years, Dabur's positioning was not clear. In the early 2000s, the company went in for a restructuring which included aligning Dabur's brand architecture2 with Dabur's brand equity3; pruning products that did not align with the brand architecture and launching new products (Refer Exhibit I and II).

The company focused on improving its sales revenue from southern India, which contributed only 8 percent of the company's total revenue in 2003. At this time, Dabur

identified its ayurvedic platform as a driver of future growth and got its business units better aligned.

Moving away from using Dabur as an umbrella brand, the company shifted to individual branding and came out with a new logo. The company tried to bring to its consumers its Ayurvedic legacy with a contemporary feel. All these changes have improved the financial performance of the company in 2004 as compared to 2003.

Background Note

Set up in 1884 by Dr S K Burman in West Bengal as a proprietary firm for the manufacture of ayurvedic drugs, Dabur (an acronym of the name Dr Burman), started off with a direct mailing system to send medicines to villages in Bengal.

Repositioning Dabur - Next Page>>

Initially, the target market for Dabur’s products was households with Indian ethnic origins aware of ayurvedic practices. Now this target market will be extended to European community which not necessary grasp ayurvedic philosophy but still perceptive to new approaches in medicine, food and cosmetics and tend to follow a healthy lifestyle.In order to meet the main requirements of European consumers, joint ventures and joint laboratories will be established together with Italian, French and Czech specialists. It will facilitate the adjustment of Dabur’s initial herbal strategy with local strategies of its subsidiaries.The significant health advantages of Dabur’s products will justify its price strategy. Highly differentiated brand strategy will enable to cover all segments and to charge a premium on some lines of products within skincare, healthcare and food, on the one hand, and to ensure a deep penetration into the market charging affordable prices for the major part of prospects.In India Dabur is supported by 47 agents, more than 5000 distributors and over 1,5 retail units. This system will be extended to at least 18 additional wholesalers who will deliver products to retail chains.Besides, Dabur will construct a franchising network for selling its products through it. It implies establishment of food supermarkets and specialized cosmetics stores.Historically, Dabur has had a steady increase in sales revenues, with the exception of2001-2002. But to meet the targeted results, Dabur should intensify its expansion and implement all steps suggested above.A help with writing essays can be quite useful if you don’t know what to start from or how to convey your thoughts. Every custom essay composed by professional paper writers is double-checked by the specially employed team of editors to ensure that the work is original and meets all your requirements.

Marketing activities undertaken to   In order to understand better the relevance and the efficiency of marketing activities handled in Dabur, first I will examine particular marketing activities for its Real brand. Real is a unit with a high market share, significant brand strength and in a fast-growing and perspective segment. It means that sustaining this leadership needs extra investments, but this is worthwhile.First, I would like to admit that while evaluating the packaged fruit juice market attractiveness it was taken into account that Dabur hold 55% of the market share in 2003-04 and showed 35% pace of growth with a turnover of Rs 650 million.

Thus, product differentiation turned out to be quite essential and ensured the coverage of the entire Indian audience. Differentiating based on education, occupation and wealth of the prospects: Real Active (premium), Real (medium), Real Junior (under 6), Real Schoolpack (students). The price was set at the rate of Rs 57,5 per 1 liter package of Real juice. It was 15% more expensive than its another brand Cooler because of its higher pulp content. However, Dabur took an advantage of low material cost due to sourcing fruits directly from the farmers. Promotion involved a wide range of marketing activities, like mass media advertising, PR activities, such as a health run with athlete, sampling exercises, cooperation with HORECA and marketing tie-ups with Discovery Channel.I consider that these activities firmly appealed to Dabur’s health strategy and therefore ensured Real’s leading position in the market.  If your goal is a profound analysis of this topic you can use the help with writing essays from professional paper writers specializing in all academic areas.

Development of DaburSince 1884, Dabur has developed into one of the top four FMCG companies in India possessing the most modern production facilities for ayurvediс medicines and operating in hair care, health care, oral care and foods segments. Initially, it followed an umbrella brand strategy. But soon the company realized that one brand could not straddle so many categories. So, Dabur shifted to individual branding and came out with a new logo conveying the message of healthy life.They made bold plans, targeting sales of 20 billion by 2006, which implied annual growth of 15-20% for three years. The company identified personal and health care products as growth drivers. Additionally, they had to prune its low contribution brands in oral care and launch a new toothpaste brand, as well as a new range in juices.In 2003, Dabur adopted integrated marketing communication programme, which included ground promotions, sampling exercises, mass media advertising, institutional promotions, PR activities and marketing tie-ups. In addition to boosting sales in southern India, the less occupied region by Dabur, the company has identified international expansion as number one priority. After acquisition of healthcare, cosmetics and toiletries manufacturing facilities at Dubai and Sharjah, Dabur established its subsidiaries in Nepal, Bangladesh, Nigeria and Pakistan. In 2003 the company entered the North American markets by appointing distributors and counting on the ethnic Indian segment.Dabur’s approach proved its success by significant increase in sales and net profit margin of the company in 2003-2004 due to perfect repositioning and constant improvement.   If you are interested in further economic analysis you may require help with writing reports.Professional essay writers providing paper writing services guarantee premium quality ofcustom term papers ,  thesis, dissertations and other academic assignments.

Dabur – successful Indian companyDabur is the fourth FMCG Company in India. Its exclusive ayurvedic approach to health, personal care products, food and digestives ensured a steady growth over years. However, its umbrella brand strategy appeared to be quite outdated, not matching with young population and incapable to meet all requirements of wide range of products. But Dabur’s repositioning strategy proved its success.Everything from a new logo to innovative promotions facilitated conquering oversees markets as well as coverage of the entire Indian population. We should admit that focus

on youth which pursued healthy way of life was seen through all strategic activities. Even Dabur’s contemporized logo in green and orange was firmly associated with naturalness, as well as its motto “Celebrate life” which also demonstrated a shift from rational positioning toward emotional positioning.Because Dabur does not aspire for market leadership, realizing that competition with multi-national companies for the time being is barking up the wrong tree, it tends to pursue the follower-leader strategy, looking for stable, long-term, profitable growth.To convince a western consumer, for instance, in an expertise, safety and high quality of Dabur’s ayurvedic cosmetics, one should elaborate a scrutiny price policy based on the distinctive features of its products. Anyway, this brand is also worth developing and investing into.Thus, marketing plan suggested to the consideration in the previous chapter will be an essential pill for achieving targeted sales revenue of Rs 20 billion in 2006. Taking into account the specificity of your academic requirements professional paper writers are able to produce similar marketing report. Besides, depending on your academic assignments different authors are involved in creation of a custom research project, which means that you get an exclusive paper from an experienced professional.