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PGDM 2009-
11
ISSUES
1.Dabur –The Brand What
Branding Strategy?
2.Product Offerings
3.Brand Equity (Strength,
Analysis)
4.Restructuring (Why and How-
the Approach?)
5.SWOT (What)?
6.Marketing Mix (What)?
SOME FACTS
•Dabur India is the 4th Largest FMCG Company in
India
•Legacy of over 100 years
•Strategic Business Units in Health care, Personal
care and Food products
•Dabur has a turnover of Rs.1899.57 crore with
powerful brands like Dabur Amla, Dabur
Chyawanprash, Real, Vatika and Hajmola
•Bottom Line Driven Company
•Product marketed in over 50 countries
•Leader in Herbal Digestives with 90% market
share
•Established : 1884
•Founder : Dr. S K Burman
•Basic Motive : Manufacture of Ayurvedic
Drugs
•Achieved : By setting up manufacturing units
and setting up Research and
Development Labs
1.Dabur
1.Dabur Finance.
2.Dabur
2.Dabur Nepal Pvt Ltd.
3.Dabur
3.Dabur Egypt Ltd.
4.Dabur
4.Dabur Overseas Ltd.
5.Dabur
5.Dabur International Ltd.
1 . Health care ,
2 . Food products ,
Produ 3 . Natural gums &
cts allied
chemicals ,
Group 4 . Pharma , and
s 5 . Veterinary
products .
1.Dabur Amla,
2.Dabur,
3.Chyawanaprash,
Leading 4.Vatika,
Brands 5.Hajmola,
6.Lal Dant Manjan,
7.Pudin Hara,
8.Real range of fruit
juices.
PERSONAL CARE SEGMENT
•Hair Care Oil and Shampoo (VATIKA)
•Skin Care (FAIRENESS FACE PACK)
•Oral Care (DABUR RED GEL AND
•TOOTHPASTE
AYURVEDIC DRUGS
HARMACEUTICALS
•Different brands have its own marketing and advertising team
•Different brands had different promotions
•Utilized the popularity of Indian films in the domestic and global
markets to promote its brands
•Undertook the most advertising campaign with Mr. Bachchan endorsing
Dabur brands
•Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair
and Healthcare product
•Adopted the INTEGRATED MARKETING COMMUNICATION programme in 2003 to
increase its market share
•Targeted the Institutional market which included hotels and airlines
Partnered with Institutional clients to provide value added
services
•Held various contests
•Training sessions and workshops for food and beverage professionals
•Tie-up with Discovery Channel
BRAND EQUITY
•Choice of its
a.logo,
b.symbol,
c.slogan,
d.packaging
Marketing Activities
Problems
1 . Diversified into too many groups
•Lower Sales and Profits
2 . Image
•Ayurvedic Company
3 . Association
•Particular Age Group - 35 Plus
Age
Restructuring Process
1.Cut down on all its low Contribution Brand
2.Position(ed) itself as an Herbal specialist
in the FMCG sector
3.Set Higher Targets
4.Identify/ied Growth Drivers
5.Filling up the gaps in Oral Care as wellas
Hair Care market
6.Set itself a new Brand Strategy
7.Enter(ed) new potential areas and targeted
the youth as well school children
Branding Strategy
Changed its branding strategy by moving from
the Umbrella Strategy to the Key brand
Strategy. Dabur has categorized itself
into five power brands
1.Dabur (HEALTHCARE)
2.Vatika (HAIR CARE)
3.Anmol (PERSONAL CARE)
4.Real ( JUICES)
5.Hajmola (DIGESTIVE SUPPLEMENTS
PRODUCT LINE EXTENSION
In the JUICES range Dabur introduced :
Coolers (Low fruit Content)
Real ( High fruit pulp Content)
Real ACTIVE (Health Conscious Youth)
Real Juniors (for the children below 6
years of age)
Real School Pack
Why these Strategies
Line Extension Strategy was adopted by Dabur because:
1 . Youth
2 . Health Conscious People
3 . School Children
4 . Mothers
5 . Existing Old age group
PRODUCT
Quality : High
Sizes : Available in different sizes
Design : Available in Tetra Pack, Bottles, Sachets
Sr . No Brand Type
OPPORTUNITIES THREATS
2 . WHERE DO WE WANT TO
GO?
THREE BIG STRATEGIC •Business
QUESTIONS positions
management wants
to stake out
•FINANCIAL
outcomes to
achieve
•STRATEGIC
outcomes to
achieve
3 . HOW WILL WE GET
THERE?
FIVE TASKS OF STRATEGIC MANAGEMENT
DEVELOPING A
VISION
&
MISSION
DEVELOPING A VISION & MISSION
in The mission is to
chemicals AMERICAN RED CROSS improve the
and quality of human
electronic life; to enhance To be America’s best
imaging. self-reliance and quick service
concern for restaurant chain. We
others; and to will provide each
guest great tasting,
LONG JOHN
help people
SILVER ’ S
avoid, prepare healthful, reasonably
for, and cope priced fish, seafood,
with emergencies. and chicken in a
fast, friendly manner
on every visit.
Why Bother to Define “ Who ,” “ What ,” &
“Where?
SETTING
OBJECTIVES
1 . Purpose of setting OBJECTIVES is to
2.
•Convert mission into performance targets
•Create yardsticks to track performance
•Establish performance goals requiring stretch
•Push firm to be inventive, intentional, focused
1 . Financial Objectives
•Increase earnings growth from 10 to 15% per year
•Boost return on equity investment from 15 to 20%
•Achieve & maintain a AA bond rating
2 . Strategic Objectives
•Up firm’s market share from 18 to 22%
•Overtake rivals on quality or customer service
•Attain lower overall costs than rivals
•Become leader in new product introductions
•Achieve technological superiority
CORPORATE OBJECTIVES
Nike : •Protect & improve Nike’s position as the number one
athletic brand in America.
•Build a strong momentum in growing fitness market.
as it continues to develop.
•Continue the drive for increased margins through
CRAFTING
A
STRATEGY
Strategy Making Concerns Strategy as Planned
and
HOW to Reactive to Changing
Circumstances
1.Achieve desired
strategic & financial Actual Strategy
objectives
2.Out-compete rivals & win
a competitive advantage
3.Respond to changing Planned
industry & competitive
conditions Strategy
4.Defend against threats
to firm’s well-being
5.Grow the business Adaptive Reaction
Crafting A Strategy
Actions to Responses to
Improve Changing
Conditions
Short
Term ProfitsThe Pattern of Actions That
How Key Define Strategy Fresh
Functions are Offensive to
Managed Gain Market
Edge
Defensive Product
Moves Line ,
Quality ,
or
Pursuing Geographic
Service
New Coverage
Forward
/
Backward
Opportuniti Integrati
es on
Why Good Management of Strategy
Matters?
1 . Powerful execution of a powerful strategy is a
proven recipe for success
2.
3 . Crafting & implementing strategy are CORE
management functions
4.
5 . To qualify as WELL - MANAGED , a firm should
• Have an attractive strategy
• Demonstrate proficiency in executing
strategy
9.
10 . A good strategy is strong enough to overpower
rivals & flexible enough to overcome obstacles
11.
12 . Without proficient strategy execution , firm
cannot achieve peak performance
Why is a Firm ’ s Strategy Constantly
Evolving?