Question

Dabur India Ltd. is one of India’s leading FMCG Companies with Revenues of over Rs 8,500 Crore & Market Capitalisation of over Rs 72,500 Crore. Building on a legacy of quality and experience of over 135 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The ayurvedic company has a wide distribution network, covering 6.7 million retail outlets with a high penetration in both urban and rural markets. Dabur's products also have huge presence in the overseas markets and are today available in over 100 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 27% of the total turnover. The 135-year-old ayurvedic company, promoted by the Burman family, started operating in 1884 as an Ayurvedic medicines company. From its humble beginnings in the by lanes of Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation. Dabur follows Principles such as Ownership, Passion For Winning, People Development, Consumer Focus, Team Work, Innovation and Integrity. Dabur also recommends various Ayurvedic Home Remedies formulated using ayurvedic plants & herbs which are natural & chemical free. Also the Vision of Dabur is "Dedicated to the health & well being of every household".

1. What are the different types of Point of Parity and Point of Differentiation of Dabur India Ltd.?

Answer 1

To unerstand Point of Parity and Point of Differentiation better, it is important to take in consideration the SWOT analysis of Dabur India Ltd. since understanding ones own strenghths and weakness adds extra points and helps in the betterment.

Strenghths:

• Century old company ( A major advantage to the company, point of differentiation )
• Established Brand ( Point of Parity )
• Ayurvedic Herbal Product Line ( Both point of Parity and Differentiation according to the situation )
• Leader in Herbal digestives where the product has 90% of the market share ( Point of differentiation )
• Core knowledge of Aurveda as competitive advantage ( Point of Differentiation )
• Strong Brand image ( Point of Differentiation )
• Strong Distribution Network ( Point of Differentiation )
• Extensive supply chain ( Point of Differentiation )
• R & D- A key strength ( Point of Differentiation )

Weakness:

• Lack of brand stores
• Lack of awareness regarding Ayurvedic products and medicines ( Point of Parity )
• Seasonal Demand Products
• Profitability is uneven among product line ( Point of Parity )

Opportunity:

• Growing awareness of yoga and Ayurveda in international markets
• Expansion of product line
• Growing popularity of herbal beverages
• Brand promotion through Ayurvedic health clubs and brand retail stores
• Extended Vatika Brand to new categories like skin care and body wash segments (Point of Differentiation )
• Market Development ( Point of Parity )
• Export Opportunities ( Point of Differentiation )
• Innovation ( Point of Differentiation )
• Creating additional consumption pattern ( Point of Differentiation )

Threat:

• Rising competition in Indian market like Himami, Baidyanth and Zandu for Dabur Chyawanprash and Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil
• Competition from alleopathic medicines
• Competition from foreign brands in beauty care and homecare segment
• New Entrants

Main Competitors for Dabur:

Category	Dabur's share	Main Competitors
Fruit Juice	58% Real Active	Tropicana
Hair Oil	6.4% Vartika	HUL, P&G, Marico
Shampoo	7.1% Vartika	HUL, P&G
Hair Care	27%	HUL, P&G, Himalaya
Chyawanprash	64%	Himani, Pathanjali, Himalaya
Honey	40%	Himani, Hambard, Local players
Digestive	37%	Paras and Local players

Dabur Product Strategy:

Health Care

• Dietary Health Supplements
• Natural Health Products
• Food Supplements
• Digestive
• OTC-Health care
• Ayurveda Medicines
• Traditional Herbal Medicinal products

Hair Care

• Amla
• Almond
• Jasmine
• Coconut
• Shampoo:
• Anti-Dandruff
• Hair Fall Control
• Smooth & Shine
• Conditioner
• Hair Mask
• Hair Gel, Wax & Cream

Oral Care

• Toothpaste
• Mouthwash
• Denture Adhesive

Skin Care

• Facial Bleaches
• Face Fresheners
• Face Pack
• Face Wash
• Face Scrub
• Moisturizer Cream & Lotion
• Body Wash
• Hair Removing cream

Home Care

• Mosquito Repellent
• Air Freshener
• Liquid Soap
• Wet Wipes

Food

• Packaged Juices

Dabur Price/Pricing Strategy:

Dabur follows different pricing strategies in its marketing mix for different product offerings. For its premium products such as Dabur Herbal (Premium range), Sun care, body wash, body creams are priced at a premium as they are targeted at high end target segment. For its low cost products, the prices are kept low and competitive pricing strategy is followed. More emphasis is given on the product quality and its products are priced low to gain more customer base. Its main aim is to sell more units although through a lesser margin. Since it a competitive industry with major players, Dabur has to follow a competitive pricing policy for its non-premium products to sustain itself in the long run.

Dabur Place & Distribution Strategy:

Dabur is one of the leading FMCG companies in India. The main aim of the FMCG company is to make its products available at most number of outlets and also to ensure that there is no stock out. Shelf space also plays an important role in creating visibility. Being in the industry for many years, Dabur has built an extensive network of distribution channels. The marketing mix promotional strategy of Dabur is dependent upon its manufacturing plants, distributors and retailers. The distribution is not only in India but abroad as well.

In India, Dabur has various plants manufacturing located throughout the country. Most of its plants are located in Himachal Pradesh, Rajasthan and Madhya Pradesh. From these plants, the products are transported to the carrying and forwarding agents. From there they are passed down to the stockists, distributors, wholesalers and then retailers and Kirana stores from where the final consumers can purchase the products.

Sometimes the products are transported directly to the supermarkets and modern retail through the distributors.

Dabur also exports its products to Dubai, Bangladesh, Egypt, UK, Nigeria, US and Nepal where they have overseas offices which manage the distribution and sales.

Dabur Promotion & Advertising Strategy:

Dabur does its major promotions through TV advertisements. In India, famous celebrities and sportsmen endorse their products. Amitabh Bachchan is seen in ads like Dabur Chyawanprash and Dabur Hajmola. Sonakshi Sinha endorses for Dabur Vatika. It also advertises on newspapers. Hoardings are put up at retailers and supermarkets. This covers the marketing mix of Dabur.

Sales Promotional Tools:

• Price Promotions
• Coupons
• Gift with Purchase
• Competitions and Prizes
• Money Refunds
• Point of sale displays
• Free samples
• Contests
• Festival Sales
• Retailer coupons
• Multi-packs
• Special price for two's
• Allowances for additional shelf space
• Sales contest
• Premium Gifts
• Sales Meetings
• Exchange offers

Promotional schemes for stockists:

• Higher Margins
• Sales Contests
• Allowances
• Subsidy for promotion budget
• Danglers and Posters
• Training
• Annual Gathering
• Fun Trip
• Gathering while launch of new products
• Special Trade Schemes
• Buyback

Promotional Schemes for Retailers:

• Trade Allowances
• Dealer Loader
• Trade Contest
• Point of purchase displays
• Push Money
• Free Samples
• Demos
• Discount Sales
• Retailer Coupons
• Higher Margins
• Allowances for additional shelf space
• Merchandising allowance
• Bonus packs
• Trade allowance
• Free Goods
• Cash Rebate
• Product Sampling
• Displays

Promotional Schemes used for consumers:

• Price Deal
• Price-pack Deal
• Coupons
• Loss Leader
• On-shelf Coupons
• Rebates
• Contests
• Point of sale displays
• Sampling Activities
• Gift with Purchase
• Money Refunds
• Festival Sales
• Multi-packs
• Trade Fairs and Exhibitions

Key Highlights of Point of Differentiation in the FY 2019-20:

Over 1 crore samples of Dabur Hajmola distributed at Restaurants, Schools, Airlines and through Dabbawalas in Mumbai.

A series of digital campaigns and memes, focussing on moment marketing to take advantage of current events like the Cricket World Cup, Chandarayaan launch, were rolled out to deliver relevant and spontaneous interactions with consumers. Some of these memes and campaigns were widely shared on social media by consumers and helped build a real-time connect with consumers and create a high brand recall.

The brands popular promotional activity Hajmola Chunavi Dangal, which was created a year ago around the Elections to promote awareness on Voting was extended to Nauchandi Mela in Meerut this year. A special booth was created, where a mock election was held to identify the consumers favourite flavour from the Hajmola digestive tablets range. Various Hajmola flavours were sampled with the consumers, who were then asked to vote for their favorite flavour, and the winning flavour was declared the ‘Mukhya Flavour Mantri 2019. Hajmola Chunavi Dangal received the ACEF Award for innovative customer engagement.

Hajmola was ranked amongst Indias 100 Most Trusted Brands by The Economic Times-Brand Equity Survey.

To celebrate the unique bond between brothers and sisters on Rakshabandhan, Hajmola came up with #BaatHazamNahiHui campaign showcasing the chatpata moments people experience with their siblings. As a part of this campaign, a set of three digital films were launched with three different yet relatable stories on the bond between siblings.

A profile pouch for Hajmola Candy was introduced in Modern Trade outlets during the year.

Pudin Hara: A proven Ayurvedic remedy for digestion issues, Pudin Hara is available in three formats of Liquid, Pearls and powder Fizz. It is an iconic proprietary formulation which addresses stomach pain and indigestion through herbal ingredients such as pudina satva (mint).

Sampling is the biggest lever to drive consumer trials in this category. The brand undertook large- scale consumer connect initiatives at religious and social fairs, like Magh Mela and Chitrakoot Mela, across the country.

The brand undertook a high-decibel activation at the Nauchandi Mela in Meerut this year with the ‘largest Glass Bottle of Dabur Pudin Hara, an actual replica containing over 400 litres of Pudin Hara liquid. Dabur Pudin Hara entered the Limca Book of Records for this feat.

A special digital video was also created around the mela - with a catchy tune ‘Pudin Hara Banke that became one of the most widely shared videos on digital platforms

Sampling activities were also undertaken in Rajdhani and Shatabdi trains.

Television star Kapil Sharma was signed as the new face of Pudin Hara and a new TVC will be rolled out soon.

  Ayurvedic OTO and Ethicals category for Dabur was flat in 2019-20 and grew by 6.7% in YTD Feb20.

Dabur is the leading player in the Ayurvedic products category with a wide range of products. Daburs OTC portfolio today includes products in categories such as Immunity Boosters, Cough & Cold, Womens Health Care, Baby Care and Rejuvenation. We also have a large Ayurvedic Ethicals portfolio.

In the days and weeks following the COVID-19 outbreak, the demand for immunity boosters witnessed a surge. As the world scrambled to find a cure for COVID-19, health experts suggested that boosting the bodys immune system may help in preventing the onset, minimize the infection and hasten recovery from the disease. Ayurvedic herbs such as Tulsi, Cinnamon, Black Pepper, Shunthi (dry ginger) and Raisins were recommended as potent aids to increase the bodys immunity against harmful viruses. To meet this emerging need, Dabur fast-tracked the launch of a host of immunity boosters, besides increasing production of its existing range of products containing highly effective immunity building herbs like Ashwagandha, Giloy, Amla etc.

Immunity Boosters: Immunity, as we understand it through modern medicine, is the function of certain cells, enzymes and immunomodulatory chemicals that attack pathogens and prevent them from creating diseases. As a branch of holistic healing, Ayurveda lays emphasis on strengthening your bodys immunity to deal with chronic infections and illnesses. These Ayurvedic products and remedies can be consumed regularly to charge the bodys immunity, naturally.

The company launched Dabur Tulsi Drops, a 100% Ayurvedic remedy that is a natural Immunity Booster and also helps build respiratory health and provides effective protection from Cough and Cold. Dabur Tulsi Drops is a mixture of 5 types of rare Tulsi leaves like Vishnu Tulsi, Rama Tulsi, Shyama Tulsi, Bisva Tulsi and Amrit Tulsi.

Launched Dabur Haldi Drops, which has curcumin extract and helps boost immunity and reduce inflammation. It also has antioxidant properties and helps to cure cough and cold and is beneficial for skin and joint health.

Launched a range of eight single herb Churnas, which includes three Immunity-boosters like Giloy Churna, Amla Churna and Ashwagandha Churna.

Introduced Ashwagandha capsules. A true superfood, Ashwagandha herb is known for its healing effect on the body and protection from infections. The herbs natural immuno- boosting properties can also help deal with chronic stress and fatigue which happen with viral infections.

Ventured into the immunity-building juices market with the launch of Dabur Amla Juice and Dabur Giloy-Neem-Tulsi Juice.

Special campaigns launched in Digital media and Mainstream media, to highlight the various Immunity booster products in the Dabur portfolio and generate awareness about their benefits.

Cough & Cold: Changing weather conditions, high levels of pollution have led to increasing incidence of cough, cold and allergy in India.

Demand for Ayurvedic products, particularly in the area of cough and cold remedy, has been on the rise. Dabur is a leading player in this market with its brand Dabur Honitus, which features an array of Ayurvedic products like Honitus cough syrup, Honitus Lozenges, Honitus Hot Sip (a ready-to-use Ayurvedic kadha) and Honitus Madhuvani (a traditional Ayurvedic Medicine for Cough and Cold). Given its non-drowsy Ayurvedic formulation, Honitus Cough Syrup is a scientifically proven remedy for cough. It is fortified with Tulsi, Mulethi & Banapsha to provide fast relief against acute cough and throat irritation.

Special tie-ups with Bollywood movie ‘Mission Mangal and Bengali movie ‘Professor Shanku to promote the brand.

Introduced Honitus Adulsa, a cough syrup containing the Adulsa herb. This product has been created especially for the western markets where

The herb is known for its soothing effect for coughs and as a treatment for respiratory disorders.

Womens Health Care: Dabur has a range of authentic Ayurvedic products for Womens Health Care. The product range includes Dashmularishta Asav, Ashokarishta Asav, Dabur Activ Blood Purifier, Dabur Woman Restorative Tonic and Dabur Lauhasava. Dashmularishta is a potent formulation for women, which combines the goodness of dashmool with other herbs, and helps in recovering from post-delivery related stress and weakness effectively and naturally. Known as the ‘natural friend of a woman, Ashokarishta provides hormonal balance and improves reproductive health. A new television commercial was launched this year for Dabur Lauhasava, an Ayurvedic medicine for Iron Deficiency and Anaemia. All products in this portfolio performed fairly well in the market during the year.

Baby Care: Dabur Lal Tail is an ayurvedic baby massage oil formulated with potent herbs recommended in Ayurveda to help babys overall healthy development. It is clinically proven to help healthy muscle development and strengthen the babys bones.

As part of local communication strategy, we signed Marathi film and television actress Shruti Marathe as the new face of the brand in Maharashtra.

To reach out to new mothers, Dabur is working with mother bloggers to create awareness about the health benefits of Dabur Lal Tail.

A special Gift Box with Dabur Lal Tail was developed and distributed in Maternity Homes.

Rejuvenators: Daburs Rejuvenator portfolio, which includes products like Dabur Shilajit, Shilajit Gold, reported steady growth during the year, driven mainly by ecommerce. The range is good for general health and well-being, and helps increase strength, stamina, vigour and vitality.

Ayurvedic Ethicals: Ayurveda is at the core of Dabur, and this business is the foundation on which Dabur was born in 1884. This portfolio covers over 250 products and medicines, prepared on the basis on formulations written in ancient scriptures, to treat and manage a variety of ailments, including several lifestyle diseases that people are facing today.

Dabur has always believed in the goodness of Ayurveda and has been introducing products that offer the benefits of Ayurveda to meet the ever-changing needs of consumers. Alongside, we have been working towards contemporizing and popularizing Ayurveda among the new generation.

A host of new products were launched during the year to expand the Dabur Ayurvedic Ethicals portfolio. The business demonstrated a robust performance during the year, increasing Daburs share in the market.

In addition to the three immunity boosting churnas mentioned before, Dabur launched five new Churnas: Trikatu Churna, Hareetaki (Harad) Churna, Neem Churna, Arjun Chhal Churna and Brahmi Churna.

Five new Ayurvedic medicines were also launched during the year: Arshoghani Vati for Piles; Punarnavadi Mandoor for Anaemia; Amla Pittantak Lauh for treating acidity and stomach pain; Navayas Lauh for liver function improvement and Saptamrit Lauh for toning eye muscles.

The year also saw the national launch of Dabur Ratnaprash (the premium health tonic) and Dabur Keratex Hair Oil (an Ayurvedic hair oil).

During the year 2019-20, Dabur conducted 1,280 Health Camps across the country, offering free consultations and subsidized medicines to the poor and needy. Over 150,000 patients benefited from these Health Camps.

Reached 4.9 million consumers through the Mensta #NoWomensDay Campaign across digital platforms highlighting that women need to be given respect and care on all 365 days of the year and not just on Womens day. The Campaign received overwhelming response across the country and was featured on prestigious platforms.

Reached 8 lakhs+ consumers in 7 days with Active Antacid Suhana Safar with RSRTC (Rajasthan Road Transport Corporation) across 10 cities in Rajasthan

OPD camps for Gynaecology and General Practitioners were organized daily with doctors offering free consultations to patients. Free medicines were also offered to the needy.

Health camps were organised during regional religious fairs like Pandarpur Yatra, where the pilgrims were offered services like Health checkups, Ayurvedic foot and back massage with Dabur

These are the Point of Parity and Point of Differentiation of Dabur India Ltd.