Jan 28, 2005

Is Dabur up to task of shedding old image?

Can Dabur shed its image as an old brand to appeal to a younger segment in line with shifts in the demographic profile of India?

Is Dabur up to task of shedding old image?
In the last four years, consumer goods company Dabur India, established in 1884, has restructured, hired more professionals, brought in McKinsey and Accenture, and de- merged its pharma business. Surveys showed that a clearer brand identity was needed, because Dabur's brand meant everything to everybody. "The mother brand was all-pervasive, and that limited differentiation," said one competitor. In addition, the surveys showed that Dabur's identity as a 'heritage' brand was a problem, with the Indian demographic profile swinging dramatically in favour of young people. Studies also pointed out that the meaning of healthcare had undergone a change; it was thus time for Dabur to shift to a herbal positioning from an ayurvedic one. "The herbal positioning works as it is a wider platform and it's the 'in thing' currently," said an Ogilvy & Mather executive on the Dabur account. The start of the transformation dates back to the 1980s, when Dabur Healthcare (worth $159 million) and the face of the company underwent a makeover. The old banyan tree logo was replaced by a colourful, 'younger' tree with the tagline 'celebrate life'. A new brand architecture for its 50-plus brand portfolio was put in place, segregating all smaller brands into five power brands: Dabur Healthcare (natural health brand), Hajmola (a digestive), Vatika (hair care), Anmol (value-for-money), and Real (juices). "We felt that Dabur's brand equity had to become more cohesive and in sync with its brand architecture," said Sunil Duggal, CEO, Dabur India. The company has set an ambitious target of achieving $456 million turnover by 2007. Today, Dabur faces competition from players such as Himalaya, Zandu, and Hamdard. Its new advertising push, by Ogilvy Delhi, has movie icon Amitabh Bachchan as brand ambassador. Dabur has missed some opportunities, like its plan to get back into milk products (joint-ventures with a Spanish and a French company didn't work out) or its skincare range Samara. According to industry watchers, the efforts have not been systematic, but this time round, Dabur is determined not to repeat its errors.
Source:
Campaign Asia
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