Case Study: How Dabur made a revenue of 115 billion INR

One of the greatest gifts that India has given to the world is Ayurveda.

This 5000-year-old medicine system is still practiced by about 80% of people in the Indian subcontinent.

I’m sure you would have, at some point, tried home cures to help with colds, coughs, and other diseases.

(Unpopular opinion: I love a warm bowl of kaadha!)

Anyways, do you know the largest Ayurvedic company in the world?

It’s Dabur! (No points for guessing, the name is in the title.)

Founded way back in 1884 by Dr. S.K. Burman, Dabur started as a small Ayurvedic medicine company.

Today, it’s a leading player in the FMCG sector, offering a wide range of health, personal care, and food products.

They marry the roots of Ayurveda with modern medicine to create products for a healthy lifestyle.

Do you remember this old ad?

he product is same, the branding is different – Lal Dant Manjan = Red Paste!

Dabur has created many brands that serve the audience holistically.

In FY 2023, they made a revenue of 115 billion INR!

Let’s look at the strategies hat made this possible.

Get your gear on and let’s plunge!

Founding Story

In the 19th century, modern healthcare was still in its infancy. Dr. S.K. Burman began his mission to create effective yet affordable medicines, inspired by traditional Indian remedies.

Source: Dabur

This humble beginning in a small clinic in Kolkata set the stage for what would become a healthcare empire. Over the years, Dabur has achieved numerous milestones.

From introducing iconic products like Dabur Chyawanprash in the early 1900s to expanding its portfolio with products like Dabur Honey and Real Fruit Juices, the company has continually evolved. Each product launch marked a new chapter in their journey, solidifying Dabur’s position in the market. Today, it has a 15.8% market share in India!

STP Analysis

Segmentation:

Essentially, segmentation is all about dividing the broad market into smaller, more manageable groups based on certain criteria. Dabur does this across four key dimensions:

• Demographic:
  Dabur targets health-conscious individuals with products like Dabur Honey and Dabur Chyawanprash, while their personal care range appeals to different age and gender groups.
• Geographic:
  They cater to urban markets with premium products and rural markets with affordable, value-for-money options.
• Psychographic:Dabur segments the market based on consumers’ inclination towards natural and Ayurvedic products, tapping into the growing wellness trend.
• Behavioral:
  Dabur also looks at consumer behavior, such as buying patterns and brand loyalty. They target segments that prefer traditional remedies and natural ingredients.

Targeting:

Dabur has identified several key segments, including health-conscious adults, young urban professionals, and families looking for natural and safe products. Each of these segments is targeted with specific products and marketing messages that resonate with their unique needs and preferences.

With the increasing awareness of natural and organic products, Dabur targets urban professionals who are willing to pay a premium for health and wellness. Similarly, they target families with products that promise safety and natural goodness, like Dabur Baby Oil.

Positioning:

Dabur’s positioning strategy is all about establishing a strong brand image in the consumer’s mind. Their value proposition centers around the promise of natural, safe, and effective products derived from Ayurveda.

From their website, the brand positioning statement could be summarized as: “Dabur provides natural and trusted healthcare and personal care solutions, combining the wisdom of Ayurveda with modern science to promote a healthier lifestyle.”

SWOT Analysis

Strengths:

Firstly, they have strong brand equity, built over more than a century. Their diverse product portfolio spans health supplements, personal care, food, and beverages, catering to various consumer needs. Additionally, their deep-rooted expertise in Ayurveda gives them a unique edge.

Weaknesses:

Dabur’s dependency on certain markets or product categories can be a vulnerability. For instance, any significant downturn in the health supplements sector could impact their overall performance.

Opportunities:

On the brighter side, there are numerous growth opportunities. Emerging markets present vast potential, and increasing global demand for natural and organic products aligns perfectly with Dabur’s offerings.

Product innovation, especially in the wellness and personal care segments, can further drive growth.

Threats:

Intense competition from both local players like Patanjali and global giants can pressure market share and margins. High sugar content in some of the products have also raised concerns from the consumers.

Marketing Mix

Product:

Dabur’s product lines have over 250 products, including health supplements, personal care items, food products, and over-the-counter medications.

Iconic products like Dabur Chyawanprash, Dabur Honey, and Dabur Amla Hair Oil have become household staples.

Innovation is at the heart of Dabur’s product strategy. They continually research and develop new products, combining the ancient wisdom of Ayurveda with modern science.

For instance, their introduction of Real Fruit Juices revolutionized the fruit juice market by providing a healthier alternative to synthetic beverages.

This ensures they stay ahead of market trends and consumer needs.

Dabur’s R&D centers are at the forefront of developing new products and patents that blend Ayurvedic wisdom with modern science.

Price:

Dabur’s pricing strategy is both strategic and consumer-friendly.

They employ various pricing models to cater to different market segments.

Dabur’s pricing is competitive yet slightly higher, reflecting its established brand equity and product quality.

They strike a balance between affordability and perceived value, ensuring consumers feel they are getting their money’s worth.

Dabur’s products are perceived as offering high value due to their natural ingredients and health benefits.

Consumers are willing to pay a premium for the assurance of quality and the trust associated with the Dabur brand.

To make it more accessible, they create products in different sizes.

Place:

Through Dabur’s distribution strategy, its products are available in 120 countries!

They leverage a mix of traditional and modern distribution channels, including wholesalers, retailers, and e-commerce platforms.

Their products are available in supermarkets, local kirana stores, and online marketplaces, making them accessible to a broad audience.

Dabur’s efficient supply chain management ensures product availability and timely delivery.

They have a robust logistics network that minimizes delays and maintains product quality during transit.

With a retail presence spanning urban and rural areas, Dabur’s reach is extensive.

Their strategic partnerships with retail giants and local stores ensure widespread availability, contributing to their market leadership.

Promotion:

Dabur follows a 360° marketing approach where it invests heavily in advertising across TV, print, and digital media.

Their campaigns often feature relatable themes and highlight the natural benefits of their products.

They also partnered with celebrities to increase credibility and aspirational value.

For instance, here is one of their older ads featuring Sridevi:

Source: Pinterest

Currently, strengthening the digital presence is a major focus of the brand. They have partnered with different celebrities to create ad films for various products. For instance, Amitabh Bachchan is featured in this fun ad film for Dabur Red Paste:

This comic ad for Dabur Hajmola features Ajay Devgun:

And this ad film for Dabur Cool King Thanda Tel features Nora Fatehi:

But all of their efforts are not solely promotional.

They think beyond the brand and stand for a cause. For instance, loss of hair during the treatment of cancer is a major side effect that can be emotionally taxing. In this inspirational video, Dabur attempts to show the strength of cancer survivors:

Dabur also created an awareness campaign against the use of Tobacco. But people already know that Tobacco is bad. So how was Dabur’s approach different?

By showing how their teeth could look like without tobacco, they target an aspirational quality which is more incentivizing to quit it.

In a Nutshell:

Because of these continuous efforts, Dabur has built consumer trust and enjoys strong brand recognition and brand loyalty. Its success is a blend of strong market presence, consumer trust, and continuous innovation.

Their focus on innovation and sustainability will likely drive their success, ensuring they remain a trusted name in every household. To ensure continued success, Dabur should focus on deepening their digital presence, enhancing their product lines with innovative offerings, and expanding their global reach.

Key Takeaways from Dabur’s Marketing

• Create valuable and beneficial products for the consumers by applying old methods for the modern day.
• Develop a compelling brand narrative that resonates with your target audience’s values and aspirations.
• Continuously innovate products to stay ahead of market trends and meet evolving consumer demands.
• Use a multi-channel marketing approach and partner with celebrities + create awareness campaigns.