Repositioning Dabur

Repositioning Dabur

Understand why a company moves away from its core platform.

The case deals with the restructuring initiatives Dabur took in the early 2000s. In order to cater to a wider audience, Dabur decided to reposition itself as an FMCG company with a herbal plank, moving away from its earlier image of an Ayurvedic medicine manufacturer. In order to convey a new vibrancy, the company has adopted new product offerings and new packaging. Dabur’s promotional campaigns includes leading Bollywood actors and sportstars. Dabur moved away from an umbrella branding strategy and went in for individual branding. It pruned products which were not aligned with its brand architecture. It also took concerted steps towards geographical expansion to international markets, and within India, focused on regions like southern India, which it had earlier neglected. The company’s revenues in 2004-05 reveal that the changes undertaken by the company have started showing results.

Issues:

The case is designed to help the students to:

  1. Understand why a company moves away from its core platform.

  2. Understand the strategies adopted by a company to change its core platform.

  3. Understand how confusion about a brand sets in in the mind of consumer because of the use of the same brand name for diversification into different areas.

  1. Understand how a brand is repositioned.

  2. Understand how alignment of product, price, promotion and place is brought about.

  3. Understand the marketing activities undertaken to rejuvenate a brand.

  1. Understand how changes in demographics and psychographics affect an organisation’s vision.

  2. Understand how acquisitions can add value to the marketing strategy of a company.

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