Dabur honey (1)

Presentation byFinal Year MMS Students of JBIMS

A project of the IMC Workshop conducted byProf Aughi Dalton

Dabur Honey

Chintan Kalla – M06Jishan Ali – M11Moin Punjani – M18Vikrant Hatwalne M43Viraj Sheth – M45Aayushi Jajodia – M48

Introduction

• Dabur is 130 year old company started by Dr. S. K. Burman

• It is the world’s largest organization in Ayurvedic Healthcare

• Dabur has expanded its portfolio to include Consumer Care which

is segmented into Home Care and Personal Care and within Health

Care it caters to Health Supplements, Digestives, OTC and Ethicals.

It also has a Foods Department

• Dabur’s portfolio has 14 brands each valuing 1 Billion Rupee

• Its sales are growing at close to 20% annually

• In 2011 Dabur marked its presence globally by inorganic growth

when it acquired Hobi Group and Namaste LLC

Situation AnalysisMarket Analysis - Total Honey production for the year 2012-2013 was over 40,000 – 50,000 tonnes per annum. Although the production output depends on weather conditions but with the advent of technological advancements the dependency on weather conditions is fast decreasing.

23000

30000

Total Honey Production (in tonnes)

Export

Domestic

16000

34000

Sectoral Division(in tonnes)

Organised SectorUnorganised Sector

Growth - The food and beverage industry in India is growing at 17% CAGR and it is worth 135 billion dollars.

Potential – Honey is being seen as a natural healthy supplement for sugar and as the citizens are becoming more health conscious there is huge potential market for expansion as many users are switching from sugar to other forms of sweeteners like honey.

Situation Analysis

Seasonality – Consumer Perception is that honey consumption is undesirable in summers. So the sales of honey drops during this time but it again soars in the winters.

AD CLAP

Taste Price Purity Viscosity Colour2

2.5

3

3.5

4

4.5

Dabur Honey

Fondaghat

Lion Honey

Unorganised

AD CLAP

Taste Price Purity Viscosity Colour2.6

2.8

3

3.2

3.4

3.6

3.8

Dabur HoneyIndustry

POD

POE

Taste - Dabur has to improve on this attribute as people still perceive to be a synthetic product and not compared with natural honey of the unorganised sector Price - Premium price is charged due to the brand value and the quality Dabur provides and is not much of a pain point for Dabur

Purity - Purity is one such aspect Dabur will have to categorically work on as it is positioning itself as the health substitute for sugar

Viscosity& Colour- Not much of a pain point for Dabur

AD CLAP

Taste Price Purity Viscosity Colour2.8

2.9

3

3.1

3.2

3.3

3.4

3.5

3.6

3.7

Consumer Industry

6 R’s

The 6 R's

Raise Taste

Remove - -

Reduce - -

Retain Viscosity, Colour

Rock

Rip

Value Chain Analysis

Inbound•Procurement from Kashmir Majorly•Major Inventory in Winter as consumed more in that sesaon

Processing

•Processing in Manufacturing Units in Baddi

Customer•Warehousing and Distribution to be provided by Distributor•After Sales Replacement Policies in case of Broken Bottles, Expired Goods

High Involvement

Low Involvement

Rational Emotional

As honey is still falls under the commodity space hence a proper branding strategy is required to increase top of the mind recall. Increased frequency of spots and insertions for achieveing the same

FCB Analysis

SEGMENTATION MAPPINGFitness Use Medicinal Use Additive Usage Traditional Usage

18-25 25-35 35-50

SEC-A SEC-B SEC-C

Natural

Taste

Ayurvedic

Pure

Golden Yellow Colour

Healthy

HealthyPure

Taste

Sweet Taste of Life

Healthy

Taste

Brand Association – Value Propositions - Positioning

Launch Growth Maturity Decline

Overall category is growing at 14% and

Dabur Honey is growing at 20% last

year

Position in the PLC

Sustainable Competitive AdvantageVery Strong Distribution

System• Direct Reach: Over 800,000 outlets

• Indirect Reach: ~ 5.8 million outlets

Access of All Dabur Brands

Brand Dabur Fondaghat Lion Honey

Reach Pan India Maharashtra South India

SKU Availability Kirana Store, Chemist Store and MT

Kirana Store, Few Chemist Store, MT

In Major Towns in all formats and not much in Rural

Customer Touch points

More Small SKU’s in Kirana Store

Price Centric Customer Come to buy

Kirana Store

Availability of all SKU’s

Consumer more health oriented and better class

Modern

Trade

Availability of all SKU’s

Flyers explaining the health benefits of Honey Chemist

Outlets

40% 10% 50%

Growing at 17% CAGR Major Selling Point and SEC B as target

Sales Promotion

Implementation of Project CORE – Chemist Outreach and Range Extension

Project Implemented in December 2013Increase in Sales and Revenue By 12%

Sales of Dabur Honey of all SKU’s observed20 gm Honey which is the smallest SKU sold

the most to make customer start the consumption of Product

To Increase Sales at Chemist Outlets

Honey 20gm 3 pc - 4.17%

400 500 1KG  50 100 250 6 p c - 2.5 %

Branding Strategy Centred around Fitness

Sweet Taste of LifeWe are proposing Dabur Honey as a healthy natural additive to be used in place of Sugar or other Sugar free Substitutes and as a Fitness product

Target Audience would be Health Conscious segment who frequent Gyms and jogging parks

- Dabur would be putting up hoardings and promotional activities in and across popular Gyms and Jogging parks.- Free sampling would be done in these areas- Also target Corporate offices as part of a health conscious lifestyle propagation

- ‘Say no to Diabetes’ Campaign starting from the World Diabetes day by stopping the use of any sugar or synthetic sugar free additives and going the healthy way. Also tie up Gyms like Gold Gym, Standard Chartered Marathon etc.

Sweet Taste of Life

ATL BTL

Print : Ads in newspapers and

fitness magazines

Out of Home: Billboards like Amul with a

creative theme to portray goodness

of honey

Radio: Sponsorships

and tie ups with radio shows

TV: Commercials to attract people in

between daily soaps

PR: Micro blogging and website SP: Added Incentives in extra sales Mob Adv: Apps and games (Wheres my Honey) Word of mouth : Personal promotion in gyms, parks and fitness clubs Events and sponsorships

IMC

Thank You