Description
MARKET STRATEGY OF DABUR HAJMOLA
Group 9
? ? ? ? ? ? ? ? ? ? ? ?
Introduction and Timeline Repositioning and Vision Strategy used and SBU structure Portfolio and Acquisition Product and its Timeline Michael Porter STP and Ansoff matrix Pricing policy and BCG policy Branding and Distribution Channel Promotional strategy and Rural marketing Competitors and Potential markets SWOT and Recommendations
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DIL is one of the leading FMCG companies in India and the world's largest Ayurvedic and natural healthcare company Dabur is today among India's most trusted names. The company‘s FMCG portfolio includes 5 flagship brands with distinct brand identities: “Dabur” - Natural Healthcare Products “Vatika” - Premium Personalcare Products “Anmol” - Affordable Personal care Products “Hajmola” - Digestives “Real Activ” – Fruit Based Drinks
3
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1884 : birth of dabur 1896 : first production unit 1940 : launch of dabur amla hair oil 1994 : raises first public issue 2000 : crosses rs 1000 crore turnover 2004-05 : dabur decided to reposition itself as an FMCG company 2005 : accqusition of balsara group 2007 : became the third most respected fmcg companies in india (Business world november 2007) 2008 : START NEW “U” RETAIL CHAIN UNDER H&V STORE LIMITED.
4
5
?
Overall slowdown in FMCG sector
?
Stiff competition
To target young India- “ the largest segment”
?
?
Modernize old Brand Equity- “ intangible asset”
Streamline/Synergize business operations
?
6
7
?
Enter new category; innovate offerings Repositioning as FMCG company Moved away from umbrella branding strategy Retaining dabur as corporate brand identity
?
?
?
8
“Dedicated to the health and well being of every househould”
9
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Four fold strategy Expansion Acquisition Innovation Regional branding Promotional strategy Distribution strategy
10
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?
?
?
?
?
11
12
14
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Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales
Leveraging the 'Natural' preference among local consumers to increase share in perosnal care categories Focus markets: - GCC - Egypt - Nigeria - Bangladesh - Nepal - US
?
?
15
16
17
Hajmola candy
Hajmola Mast Masala
Hajmola
Tablets
Hajmola Anardana
Hajmola
Yumstick
18
1884 – Dabur established
1978 – Launch of Hajmola Tablet
1989 – Launch of Hajmola Candy
2010 – Launch of Hajmola Kaccha Aam
• Revenues • Hajmola
Rs. 3416 Cr Over Rs. 16000 Cr 60% market share of digestive tablets One of the five major brands of Dabur
• Market Capitalization • Hajmola Digestive Tablets • Rural markets
75% contribution to their sales
20
Demographics
Geographic
Behavior
Age & Income
•Candy: Kids b/w 412 years •Tablets: All age and income groups
Rural/Urban & Country
• Tablets & Anardana for rural markets • Candy: Rural & Semi Urban
Kind of users
• Regular/Loyal Users of Dabur
21
“establish Hajmola as a hygienic, tasty and easy-to-
consume post-meal digestive” & ‘Post meal necessity’
• Positioned as a healthy product on the basis of “ingredients” - An ayurvedic product people’s implicit faith • Positioned as a low priced product (affordable) • Initially positioned as a tablet for grown ups With time
positioned itself as a more youthful product, with launch of candies
• ‘post-meal necessity’ by tapping the roadside eateries
22
Hajmola Growth Strategy
Ansoff Matrix
Existing Products Market Penetration – Dabur has to increase its existing market share in urban Existing Market markets and capturing market share from competitors Market Development – Introduced various measures to capture new markets such as interactive promotions with school students to capitalise on the youth segment New Products Product Development – Other products like Pudin Hara, Hingoli, etc. in the digestive products market
New Markets
Diversification –Introduction of Hajmola Candy in order to appeal to a younger consumer segment
23
?
Integrated pricing policy
?
Penetrative pricing in the cash cows like Health supplement, digestives and Home care
Premium pricing in dog category like skin and baby care
?
24
?
It is based on the combination of market growth and market share relative to the next best competitor
It is based on the observation that a company’s business unit can be classified into four categories: Stars Question marks Cash cows Dogs
?
? ? ? ?
25
26
?
Question marks (?) most businesses start of as question marks.
They will absorb great amounts of cash if the market share remains unchanged, (low). Investments should be high for question marks. Why question marks ? Analysis with dabur indiaChyawanprash
?
?
? ? ?
27
?
Stars stars are leaders in business.
High growth, high market share. Effort should be made to hold the market share otherwise the star will become a cash cow. Analysis with dabur indiaDabur glucose-32% (growth rate) Dabur honey-26%(growth rate) Meswak-39%(growth rate)
?
?
? ? ? ?
28
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CASH COW They are foundation of the company and often the stars of yesterday.
They extract the profits by investing as little cash as possible. They are located in an industry that is mature, not growing or declining. Analysis with dabur indiaChyawan prash Hajmola Real
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?
? ? ? ?
29
?
DOGS Dogs are the cash traps.
Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage.
?
?
?
30
?
A banyan tree has been the logo of the company for since its inception.
The banyan tree stands for what has not been achieved. The company has been branching out. It has seven brands in the oral care category, nine in the hair care space and six brands in foods.
?
?
?
31
People could relate to the product immediately because of the 125
year long trust in Dabur
Brand has innovated to keep up with the evolution of consumers
32
Dabur is trying to capture market by launching product with a regional twist.
?
Example : Planned an agressive marketing strategy to increase its sales in the four southern states. Currently 10 per cent sales of consumer care products in the south Renaming them in local languages Come out with special products with distinct local flavour Even roping in local celebrities as brand ambassadors, the company is adopting every trick in the book to drive deeper into the south indian markets In tamil nadu- sivappu pal podi- lal dantmanjan. The Astra training consultancy module- Bengali, Tamil, Telugu, 33 Malayalam and Kannada.
?
?
? ? ?
? ?
?
T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)
Radio
?
?
Newspaper
Wall panting
?
?
Video vans
Sales propotion Contest in melas or haats
34
?
?
?
Dabur heavily advertised their product through various contestsDabur amla sunder Dabur amla susheel Dabur yogya pratiyogita Hajmola bahana championship Melodious voice of punjab Dabur gulabari miss fresh face
35
?
?
?
?
?
?
• For advertising
Amitabh Bachan presently and
Kapil Dev in the 1980’s
• Consumer connect Initiatives: Using Dhabas and Road side restaurants for publicity and extending reach • Promoted as a product that completes one’s meal • Trendy and catchy tagline like: • “hazam sab, chahe jab” • “hajmola kare khana complete”
• Having pictures of children on the sachets of candies
•Dabur's Hajmola and HUL's Vaseline have resorted to spoofs or tried to piggy ride on the popularity of a rival brand or to cash in on a controversy.
36
Dabur’s promotional focus: 75% of total sales from rural markets
• Increasing Brand awareness through fairs and festivals like the Kumbh Mela and haats & holding reality shows • Project Astra: Enhancing distribution through advanced and local sales training • Hajmola: Dress Me up campaign
C&F Agents
Distributors
Retailers
Raw Material Suppliers
Mother Depots Manufacturing Location Institutions
Intermediate Products
Export Customers
A mix of 4, 3,1 and 0 levels of distribution
38
32 %
32 %
Retail Outlets
Medical Shops
Kirani Shops Canteens
8% 4%
General Store
24%
39
Porter’s Five Forces Model
Threat of Substitute Products ? Dabur Hajmola a pioneer in its market the buyer propensity to switch brands is low ? Competition from parent company product like Pudin hara Threat of Mobility ? Dabur Hajmola 60% market share threat of Mobility is low
? Long Established Brand Industry Rivalry
First Mover advantage
? Competition from Local markets and other candy brands
? Product attributes of Hajmola competition provided an advantage over
Supplier Power
? Low Price product Dabur Hajmola has to control its costs suppliers are readily available
? Product is agriculture based Buyer Power
? Bargaining leverage is due to pricing of the product ? Scarcity of equivalent competitive products in the market drives bargaining power of consumers lower
42
Local Markets Other Candy Makers Intra-Brand Pharmaceutical Digestive Products
•Local vendors who sell digestive products like ajjwain, amla, churan
•Substitute candies like candyman from ITC, eclairs from Cadbury
•Dabur hingoli and Pudin hara
• Enzymes • Digestive Medicines
43
• More Penetration Possible
Urban Markets
• Restaurants like BBQ can have them as after meal tablets
Railway Catering Agencies
• Have tie ups to serve hajmola after every meal • Potentially a huge market
New Flavors
• Introducing new flavors like ajjwain and black salt
44
Strengths
• 60% Market Share • Parent Brand has 125 years of history
Weaknesses
• Lack of innovative culture • Brand is losing its relevance
• Pan India presence
Dabur Hajmola
Opportunities
• Increasing cost of R&D has led to great potential for outsourcing • Penetration in global markets with new culture,like entry into pakistan’s market
Threats
• Local Markets with products like churan, ajjwain, etc. • Inability to cope with technical advancements in industry
45
?
?
?
?
?
The FMCG environment in India and overseas is competition intensive and companies need to focus on branding, product development, distribution and innovation to ensure their survival. It is probably better for a company to create a few champion brands rather than dissipate its energies on too many products, because that is what will result in sustainable margins," says Manish Saigal, associate director, KPMG. Dabur isn't the category leader in any of the consumer product categories where it has a presence: it is No. 4 in shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps. But that doesn't appear to bother the company overmuch -- it is too busy launching new products. The company should discard products where volumes aren't growing fast enough to deliver margins. Dabur isn't ready to be quite so brutal with Meswak (also inherited from Balsara), but the company is working on new ways to rejuvenate and promote the brand.
46
47
doc_544095367.pptx
MARKET STRATEGY OF DABUR HAJMOLA
Group 9
? ? ? ? ? ? ? ? ? ? ? ?
Introduction and Timeline Repositioning and Vision Strategy used and SBU structure Portfolio and Acquisition Product and its Timeline Michael Porter STP and Ansoff matrix Pricing policy and BCG policy Branding and Distribution Channel Promotional strategy and Rural marketing Competitors and Potential markets SWOT and Recommendations
2
?
? ?
DIL is one of the leading FMCG companies in India and the world's largest Ayurvedic and natural healthcare company Dabur is today among India's most trusted names. The company‘s FMCG portfolio includes 5 flagship brands with distinct brand identities: “Dabur” - Natural Healthcare Products “Vatika” - Premium Personalcare Products “Anmol” - Affordable Personal care Products “Hajmola” - Digestives “Real Activ” – Fruit Based Drinks
3
? ? ? ? ? ? ? ? ?
1884 : birth of dabur 1896 : first production unit 1940 : launch of dabur amla hair oil 1994 : raises first public issue 2000 : crosses rs 1000 crore turnover 2004-05 : dabur decided to reposition itself as an FMCG company 2005 : accqusition of balsara group 2007 : became the third most respected fmcg companies in india (Business world november 2007) 2008 : START NEW “U” RETAIL CHAIN UNDER H&V STORE LIMITED.
4
5
?
Overall slowdown in FMCG sector
?
Stiff competition
To target young India- “ the largest segment”
?
?
Modernize old Brand Equity- “ intangible asset”
Streamline/Synergize business operations
?
6
7
?
Enter new category; innovate offerings Repositioning as FMCG company Moved away from umbrella branding strategy Retaining dabur as corporate brand identity
?
?
?
8
“Dedicated to the health and well being of every househould”
9
?
Four fold strategy Expansion Acquisition Innovation Regional branding Promotional strategy Distribution strategy
10
?
?
?
?
?
?
11
12
14
?
Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales
Leveraging the 'Natural' preference among local consumers to increase share in perosnal care categories Focus markets: - GCC - Egypt - Nigeria - Bangladesh - Nepal - US
?
?
15
16
17
Hajmola candy
Hajmola Mast Masala
Hajmola
Tablets
Hajmola Anardana
Hajmola
Yumstick
18
1884 – Dabur established
1978 – Launch of Hajmola Tablet
1989 – Launch of Hajmola Candy
2010 – Launch of Hajmola Kaccha Aam
• Revenues • Hajmola
Rs. 3416 Cr Over Rs. 16000 Cr 60% market share of digestive tablets One of the five major brands of Dabur
• Market Capitalization • Hajmola Digestive Tablets • Rural markets
75% contribution to their sales
20
Demographics
Geographic
Behavior
Age & Income
•Candy: Kids b/w 412 years •Tablets: All age and income groups
Rural/Urban & Country
• Tablets & Anardana for rural markets • Candy: Rural & Semi Urban
Kind of users
• Regular/Loyal Users of Dabur
21
“establish Hajmola as a hygienic, tasty and easy-to-
consume post-meal digestive” & ‘Post meal necessity’
• Positioned as a healthy product on the basis of “ingredients” - An ayurvedic product people’s implicit faith • Positioned as a low priced product (affordable) • Initially positioned as a tablet for grown ups With time
positioned itself as a more youthful product, with launch of candies
• ‘post-meal necessity’ by tapping the roadside eateries
22
Hajmola Growth Strategy
Ansoff Matrix
Existing Products Market Penetration – Dabur has to increase its existing market share in urban Existing Market markets and capturing market share from competitors Market Development – Introduced various measures to capture new markets such as interactive promotions with school students to capitalise on the youth segment New Products Product Development – Other products like Pudin Hara, Hingoli, etc. in the digestive products market
New Markets
Diversification –Introduction of Hajmola Candy in order to appeal to a younger consumer segment
23
?
Integrated pricing policy
?
Penetrative pricing in the cash cows like Health supplement, digestives and Home care
Premium pricing in dog category like skin and baby care
?
24
?
It is based on the combination of market growth and market share relative to the next best competitor
It is based on the observation that a company’s business unit can be classified into four categories: Stars Question marks Cash cows Dogs
?
? ? ? ?
25
26
?
Question marks (?) most businesses start of as question marks.
They will absorb great amounts of cash if the market share remains unchanged, (low). Investments should be high for question marks. Why question marks ? Analysis with dabur indiaChyawanprash
?
?
? ? ?
27
?
Stars stars are leaders in business.
High growth, high market share. Effort should be made to hold the market share otherwise the star will become a cash cow. Analysis with dabur indiaDabur glucose-32% (growth rate) Dabur honey-26%(growth rate) Meswak-39%(growth rate)
?
?
? ? ? ?
28
?
CASH COW They are foundation of the company and often the stars of yesterday.
They extract the profits by investing as little cash as possible. They are located in an industry that is mature, not growing or declining. Analysis with dabur indiaChyawan prash Hajmola Real
?
?
? ? ? ?
29
?
DOGS Dogs are the cash traps.
Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage.
?
?
?
30
?
A banyan tree has been the logo of the company for since its inception.
The banyan tree stands for what has not been achieved. The company has been branching out. It has seven brands in the oral care category, nine in the hair care space and six brands in foods.
?
?
?
31
People could relate to the product immediately because of the 125
year long trust in Dabur
Brand has innovated to keep up with the evolution of consumers
32
Dabur is trying to capture market by launching product with a regional twist.
?
Example : Planned an agressive marketing strategy to increase its sales in the four southern states. Currently 10 per cent sales of consumer care products in the south Renaming them in local languages Come out with special products with distinct local flavour Even roping in local celebrities as brand ambassadors, the company is adopting every trick in the book to drive deeper into the south indian markets In tamil nadu- sivappu pal podi- lal dantmanjan. The Astra training consultancy module- Bengali, Tamil, Telugu, 33 Malayalam and Kannada.
?
?
? ? ?
? ?
?
T.V comercial, like, old, kapil dev, afridi (pakistan),spoof)
Radio
?
?
Newspaper
Wall panting
?
?
Video vans
Sales propotion Contest in melas or haats
34
?
?
?
Dabur heavily advertised their product through various contestsDabur amla sunder Dabur amla susheel Dabur yogya pratiyogita Hajmola bahana championship Melodious voice of punjab Dabur gulabari miss fresh face
35
?
?
?
?
?
?
• For advertising
Amitabh Bachan presently and
Kapil Dev in the 1980’s
• Consumer connect Initiatives: Using Dhabas and Road side restaurants for publicity and extending reach • Promoted as a product that completes one’s meal • Trendy and catchy tagline like: • “hazam sab, chahe jab” • “hajmola kare khana complete”
• Having pictures of children on the sachets of candies
•Dabur's Hajmola and HUL's Vaseline have resorted to spoofs or tried to piggy ride on the popularity of a rival brand or to cash in on a controversy.
36
Dabur’s promotional focus: 75% of total sales from rural markets
• Increasing Brand awareness through fairs and festivals like the Kumbh Mela and haats & holding reality shows • Project Astra: Enhancing distribution through advanced and local sales training • Hajmola: Dress Me up campaign
C&F Agents
Distributors
Retailers
Raw Material Suppliers
Mother Depots Manufacturing Location Institutions
Intermediate Products
Export Customers
A mix of 4, 3,1 and 0 levels of distribution
38
32 %
32 %
Retail Outlets
Medical Shops
Kirani Shops Canteens
8% 4%
General Store
24%
39
Porter’s Five Forces Model
Threat of Substitute Products ? Dabur Hajmola a pioneer in its market the buyer propensity to switch brands is low ? Competition from parent company product like Pudin hara Threat of Mobility ? Dabur Hajmola 60% market share threat of Mobility is low
? Long Established Brand Industry Rivalry
First Mover advantage
? Competition from Local markets and other candy brands
? Product attributes of Hajmola competition provided an advantage over
Supplier Power
? Low Price product Dabur Hajmola has to control its costs suppliers are readily available
? Product is agriculture based Buyer Power
? Bargaining leverage is due to pricing of the product ? Scarcity of equivalent competitive products in the market drives bargaining power of consumers lower
42
Local Markets Other Candy Makers Intra-Brand Pharmaceutical Digestive Products
•Local vendors who sell digestive products like ajjwain, amla, churan
•Substitute candies like candyman from ITC, eclairs from Cadbury
•Dabur hingoli and Pudin hara
• Enzymes • Digestive Medicines
43
• More Penetration Possible
Urban Markets
• Restaurants like BBQ can have them as after meal tablets
Railway Catering Agencies
• Have tie ups to serve hajmola after every meal • Potentially a huge market
New Flavors
• Introducing new flavors like ajjwain and black salt
44
Strengths
• 60% Market Share • Parent Brand has 125 years of history
Weaknesses
• Lack of innovative culture • Brand is losing its relevance
• Pan India presence
Dabur Hajmola
Opportunities
• Increasing cost of R&D has led to great potential for outsourcing • Penetration in global markets with new culture,like entry into pakistan’s market
Threats
• Local Markets with products like churan, ajjwain, etc. • Inability to cope with technical advancements in industry
45
?
?
?
?
?
The FMCG environment in India and overseas is competition intensive and companies need to focus on branding, product development, distribution and innovation to ensure their survival. It is probably better for a company to create a few champion brands rather than dissipate its energies on too many products, because that is what will result in sustainable margins," says Manish Saigal, associate director, KPMG. Dabur isn't the category leader in any of the consumer product categories where it has a presence: it is No. 4 in shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps. But that doesn't appear to bother the company overmuch -- it is too busy launching new products. The company should discard products where volumes aren't growing fast enough to deliver margins. Dabur isn't ready to be quite so brutal with Meswak (also inherited from Balsara), but the company is working on new ways to rejuvenate and promote the brand.
46
47
doc_544095367.pptx