Intergrated Marketing Communication Campaign of Dabur India Ltd.

Intergrated Marketing Communication Campaign

Of

Dabur India Ltd.

A report submitted to

Instructor: Prof. Soumya Mukhopadhyay

Academic Associate: Javed Shaikh 

In partial fulfilment of the requirements of the course

Marketing – II (2016-17)

By

On 26th October 2016

• Purpose and objective of Integrated Marketing Campaign(IMC):

The purpose of the new IMC Campaign is:

• Capture the new users converting from non-Ayurvedic products to Ayurvedic products.
• Regain the lost market share through competitive pricing on its products.

The objective of the new IMC is building consumer preference for Dabur brand by focussing on science-based Ayurveda backed by research, hard evidence and validation of its products’ benefits rather than faith- based Ayurveda.

• Current Marketing mix:

Product: 

There are 109 Dabur products in its various categories. 60% of its sales came from Ayurvedic products in the previous financial year. The product lines and their market share are given in Exhibit 1.

Life-Cycle Analysis

Growth Engines (Star): Dabur currently is currently seeing growth in its juices, healthcare, skincare, international business and home care segments which are expected to grow further in the future.

Maturity (cash Cows): The segments - hair oils, digestives, health supplements and toothpaste act as its cash cows currently.

Price:

Current pricing strategy of Dabur is determined by the following factors:

• Cost: Costing sets the floor for pricing decisions. Stability in commodity prices has led to low input costs, leading to high margins for packaged goods companies like Dabur. However, this will lead to a lot of pricing activities by competitors like reduction in prices and aggressive promotions.
• Competition: In recent times, the pricing strategy of Dabur has been affected by competition from brands like Patanjali. Patanjali has been offering products like honey which are as much as 40% lesser in price compared to Dabur’s offerings and capturing their market share and also has had to narrow the price gap through price-offs, weight reductions and other promotions.
• Demand: Consumer demand for “natural” Ayurveda based product is high in India, and Dabur takes advantage of this fact. Apart from being a competitive threat, it is expected that marketing by Baba Ramdev will further increase penetration of Ayurveda in India across all product segments, further helping companies like Dabur.

Place: 

• Dabur has an extensive distribution channel covering Rural & urban markets through their 600+ distributors & network of 5.3 million, throughout India. In comparison, HUL & ITC reaches about 6.3 million ITC Ltd reaches 4.3 million retail stores respectively of the estimated 8 million retail outlets in India.
• Dabur’s products are now available in the departmental stores, grocery/ pops & mums, etc. using a 3 - tier distribution system consisting of C&F (Carried & forwarding agent), stockist, wholesalers and Retail outlets. In the case of supermarket stores, the products are made available to Institutions through C& F.
• Dabur has also launched its e-store: LiveVEDA in collaboration with the e-commerce giant Snapdeal. Apart from this, Dabur products are available on all the major e-commerce platforms like Amazon, Flipkart, big basket, etc.

Promotion:

• The rise of Patanjali in the Indian FMCG market led Dabur to rethink its marketing strategy. Dabur has now renewed its marketing communications with a new tagline—“The Science of Ayurveda” from “celebrate life”.
• TV is Dabur’s primary medium for advertising– especially for reaching out to customers in Tier 2 cities and beyond. It has adopted a very agnostic approach when it comes to social media marketing. The organic reach of its brands via Facebook or Twitter has been very low. Nonetheless, it has been building communities since 2012, by engaging directly with the customers on a regular basis. As part of its customer engagement programme, Dabur owns portals like  ‘mybeautynaturally.com’.
• Dabur has mostly tried to stay away from giving discounts. It provides customers with the only options of ‘buy now’ or ‘try now’ on its website.
• Dabur is known for its well-crafted campaigns. It has been featured in a Google case study for its ‘brave and beautiful’ campaign of Vatika Shampoo which made it being the only FMCG Company to have done so.

• Target audience (Profile)

The market for Dabur can be broadly divided into rural and urban based on geodemographic lines. The rural market forms a major chunk of revenues for the company, amongst which the upper socio-economic segments form a large customer base for the company.

In the urban sphere, a typical consumer would look like: