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Dabur India SWOT Analysis and Marketing Mix

Dabur India SWOT Analysis and Marketing Mix

Most of us can recall the famous ‘Hajmola Sir’ ad and that of Dabur Chyawanprash. For years, Dabur has remained the hallmark of good health for Indians. Years of marketing and television advertising combined with its brand image made it a familiar Indian name. Dabur, which was founded in 1884 has grown to become one of the foremost names in Ayurveda. It has acquired some other important brands including Fem care pharma during the course.

It achieved international expansion through strategic partnerships with key foreign brands. Dabur has continued on its growth spree and is aiming to acquire several more foreign brands to improve its presence there. Acquiring these brands can leverage its growth in the foreign markets since the government regulations are stricter there. Dabur had crossed the billion dollar turnover mark only in 2012. However, the Indian market has seen increased competition in the herbal products sector. Several other brands are competing with Dabur for market share including Zandu, Baidyanath, and Patanjali. Dabur should rather quicken its process of foreign acquisitions to tap the large customer base available overseas.

Presented below is a SWOT analysis of Dabur India Ltd.

 Strengths:

  • Established, more than 100 years old brand name.
  • Diverse product portfolio
  • Leadership position in herbal products in Indian market.
  • Innovative and financially strong brand.

Dabur is among the oldest herbal brands in India which was founded in 1884. It has a diverse product portfolio that consists of health care products, beauty products, juices as well as dental care products. It is also one of the financially strong herbal care brands in India. Dabur acquired a few significant brand names in the Indian market including Fem care pharma and the hygiene and home care businesses of Balsara. These acquisitions have helped it diversify its product line. Its deal with Balsara helped it expand its product line to home care through Odonil products.

Apart from it, Dabur is also into strategic partnership with several international brands. It has entered into joint ventures with Israeli and French companies. In terms of marketing and packaging of its products, Dabur has always taken an innovative approach. Several of its products are best sellers in their respective categories. Now, Dabur is aiming to expand its foreign presence further by acquiring more of the foreign brands. Dabur Vatika hair oil, Hajmola, Real juices, etc are some of the best selling products by Dabur.

 Weaknesses:

  • Limited presence in foreign markets.
  • Lack of brand stores
  • Lack of awareness regarding Ayurvedic products and medicines.

The foreign presence of Dabur is still limited. To a large extent, it is because the strict regulations in overseas markets. These regulations make it difficult to gain market share without strategic partnerships with the local brands. Apart from it Dabur, has not focussed on promoting its products through brand retail stores. Its products are sold alongside the other brands in general stores or medicine stores. Several of its herbal health care products do not enjoy a high degree of awareness either. Even in the Indian market, Ayurvedic medicines and products are still lagging in terms of market share before alleopathic medicines or chemical products. While the trends might be shifting, Ayurvedic products are still a lot behind the chemical products in terms of brand awareness.

Opportunities:

  • 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.

The awareness of yoga and Ayurveda is growing fast in the international markets. More and more people are adopting herbal products for personal care. Yoga and meditation for physical and mental wellness are also getting popular. The increasing health consciousness among people around the world has boosted the sales of herbal products in overseas markets. It is an opportunity that  Dabur could exploit to increase its revenue.

It presents an opportunity of rapid growth for brands like Dabur in the international markets including the Western markets and the Middle East. Dabur can also expand its product line to increase the number of home care and beauty products. The popularity of herbal beverages is also growing. Dabur can open its own brand outlets for the promotion of its brand throughout India. It can partner with health clubs and healthcare institutions to help its brand grow at a faster rate.

 -Threats:

  • Rising competition in Indian markets
  • Competition from alleopathic medicines.
  • Competition from foreign brands in beauty care and homecare segment.

The competition against Dabur from other rival brands has kept rising. The advent of Patanjali brought a new and potent competitor to the market. Patanjali has established its presence in a short period through its brand retail outlets. However, Dabur is years ahead in terms of brand name and market presence. Zandu, Emami and a number of other smaller brands are already there. Apart from that the competition from the alleopathic medicines is also high.

The Ayurvedic medicines are still considered a secondary option. They are taken as supplements mainly. Even if people’s reliance on them might have increased a bit, they are still not considered as reliable and effective as the alleopathic medicines. The competition in home care and beauty care segment also poses a major threat. There are both herbal and non-herbal brands in this segment fighting for market share. The competition only keeps intensifying.

Dabur Marketing Mix:

Product:

Dabur has entered several product lines including home care, personal care, beauty and hygiene products as well as juices. It has an extensive product line that consists of personal care products including herbal oils and beauty products like Dabur Vatika oil and Dabur Gulabari. Apart from that, Dabur extended its product line to include Fem bleaches as well as home care products like Odonil freshners. Its products are also available in varying sizes including large and small as well as medium sized packages.

Place:

Dabur has an extensive presence in the Indian market. It has focused on improving its presence in the South Indian markets too where its sales had generally remained low.  The brand has also extended its presence globally. However, the international sales still account for only one third of its total sales. It has extended its presence into neighboring countries like Nepal, Bangladesh and Pakistan as well as western markets. The brand is present in more than 50 countries. However, its presence in the foreign markets is not as extensive as in the Indian markets.

Price:

Dabur products are available in varying sizes. To tap into a larger customer base the brand has also made its products available in smaller sizes. Its shampoo and oil are available in small sachets of 1 INR onwards. Dabur has generally kept the prices of its products under control to remain profitable and to grow its customer base.

Promotion:

Dabur has devoted significant resources to the promotion of its products. The several brands under Dabur’s portfolio have their dedicated marketing and advertising teams. Its innovative marketing strategy is also a reason behind its leadership position and high popularity. Its products are promoted using both the traditional and digital channels. Its advertisements appear in regional newspapers, and magazines as well as on television and the internet.

Apart from these channels, the brand also promotes itself through contests and campaigns. Bollywood celebrity Amitabh Bachhan has appeared in a large number of Dabur ads. Dabur also signed several sports personalities and celebrities from other fields for the promotion of its products. Despite the challenge of competition, Dabur continues to grow and expand its customer base.