Rejuvenating the Market Segment by way of Advertisement

Transcription

1 Rejuvenating the Market Segment by way of Advertisement Sheel Chand Inter College Aminagar Sarai, Bagpat, Utter Pradesh ABSTRACT Change is a response to internal and external stimuli. The most important internal stimuli spurring change is the desire and vitality to grow and advance. This is somewhat similar to the human system. A major difference is that while human life has finite life cycle, an organization may not have that limitation. Modern business history in our country has witnessed the phenomenon of sickness which is often the symptom of stagnation and decline of organization. Therefore change originates from vitality and is a positive and necessary sign of growth and progress. Absence of change should be a matter of concern as it could be a sign of internal decay. Another major set of stimuli which originates from the outside environment is technological advancement which can often change the nature of a business. Habits and preferences of consumers can stimulate change in products and activities of an organization. The main reason behind the success of a company is its planning which includes vast changes from product launching to production, packaging and also in management in accordance with market strategy closely correlated with consumer s need and wants. Many companies launched their products, but only some of them could survive and the rest disappeared after few years. In the present context Dabur India Limited has been selected as a representative of national company. The reason for the selection of this company is that this company s item of everyday needs in households. These items may be divided in three groups e.g. food, health and cosmetics importance of these items among the products of the company may be seen in their use by majority of people in the society. Change is a response to internal and external stimuli. The most important internal stimuli spurring change is the desire and vitality to grow and advance. This is somewhat similar to the human system. A major difference is that while human life has finite life cycle, an organization may not have that limitation. Modern business history in our country has witnessed the phenomenon of sickness which is often the symptom of stagnation and decline of organization. Therefore change originates from vitality and is a positive and necessary sign of growth and progress. Absence of change should be a matter of concern as it could be a sign of internal decay. Another major set of stimuli which originates from the outside environment is technological advancement which can often change the nature of a business. Habits and preferences of consumers can stimulate change in products and activities of an organization. Many companies launched their products, but only some of them could survive and the rest disappeared after few years. The main reason behind the success of a company is its planning which includes vast changes from product launching to production, packaging and also in management in accordance with market strategy closely correlated with consumer s need and wants.in the present context Dabur India Limited has been selected as a representative of national company. The reason for the selection of this company is that this company s item of everyday needs in households. These items may be divided in three groups e.g. food, health and cosmetics importance of these items among the products of the company may be seen in their use by majority of people in the society. Dabur is the brand name known to almost every household. The roots of its business strategies can be traced to a vast range of products, a tradition of innovative marketing and a modern analytical approach to 88

2 ancient Ayurvedic remedies. The credit goes to Dr. S.K. Burman, the founder of the company. Active medicines became famous: By 1906, the company was making and marketing 42 medicines in all a large range in those days. Dr. Burman advertised regularly and heavily. When he started receiving letters from people living in areas where his distribution did not reach, he was quick to recognise an opportunity. He became possibly India s first mail order marketer, sending his products by VPP and advertising this facility. In 1928, with imitation of its medicines flooding the market, the company decided to patent all its products under the umbrella brand name Dabur, which combined Da of Daktar, (the Bengali pronounciation of Doctor and Bur of Burman. The logo read: Dabur (Dr. S. K. Burman) Pvt. Ltd. This is how it remained till early 1980s when the third generation of Burmans changed it to simply Dabur, to make the Dabur logo as easily recognisable as the Tata or Bata logos. 120 years old, Dabur India Ltd s brands are big. The biggest one, Dabur Amla Hair oil, Chyawanprash, LalDantManjan, Hajmola, Chyawanshakti, Pudin Hara and Nature Cure. All are leaders in their categories. The majority of its products are still based on Ayurvedic formulation given in the ancient scriptures. 89

3 Dabur was one of the first Indian companies to computerize its operations way back in It pioneered the Video On Wheels concept for rural marketing in the 60s. In the early 80s it was one of the first marketers to recognise the potential of television as an advertising medium. And it is one of the first Indian companies to have all its offices linked through satellite. Reliance on latest technology and marketing methods to produce and sell its traditional products is the Dabur s success formula. 90

4 Another striking aspect of the company is its range of products: 451, not counting different pack sizes. The Dabur range is divided into targeted products and non-targeted products. The non-targeted products serve as a vast base from which the company picks up a few products to promote every year. Every year company takes two or three products and give them advertising support. The company also adds at least half a dozen new products to the base. And may be, delete another half a dozen. To look at products in a more dynamic way, without surveys company don t do anything. It research consumer preferences in every thing, from ad concept to execution, from dealer promotion schemes to calendars. The Dabur calendar has over the years carried themes attractive to the Dabur consumer: Taj Mahal, Sridevi, and of course mythology. The company prints 22 lakh calendars every year. The company s name is emblazoned in huge letters along the bottom of the plane. One of the uses of the plane is to drop thousands of pamphlets on large melas: KumbhMela, PushkarMela, NauchandiKaMela etc. Anybody who travelled in the rural areas of Bengal or Bihar couldn t have missed them. Dabur station wagons were travelling through villages 40 years ago with 16mm projectors to show ad films to community. The company was using this video on wheels concepts much before anyone else thought of it. Recently, a vaidya contact programme has been stared withayurvedic equivalents of medical representatives touring the villages. To beat advertising restrictions in the region in some countries, ads are not allowed to show women, Dabur advertises heavily on Hindi videocassettes. 91

5 But it observed that, Dabur s sales are still skewed regionally. More than 60 percent comes from three states: Bihar, Uttar Pradesh and Madhya Pradesh. A dipstick study showed that consumers perceived it to be a small, backward company. This Ayurvedic product marketer wants to build the foundation of its 92

6 growth on the changing consumer tastes and preferences, not only within the country but the world over. And for this, its new gameplanis : Break up the company into lean divisions. Brand all the generic Ayurvedic products, taking both the ethical as well as OTC routes. Give greater attention to advertising, packaging, distribution. Expand and diversify in India with or without strategic alliances. Identify overseas markets for its products. Seven profit centers- consumer health care, family products, ayurvedicspecialities, veterinary products, pharmace- uticals, bulk drugs and exports-have been created. The company has more than 450 products in its portfolio. Family products division with 34 products. The Health Care Product Division has 38, Pharmaceutical has 40 and some, 330 are with Dabur Ayurvedic specialties (DAS). DAS s role is the most fascinating. IT has taken to innovative packaging of ethical products in a way that will make doctors more comfortable with them. Like Hajmola, digestive tablets used to be sold in a pack of 130 tablets. To increase penetration, two years ago Dabur introduced a sachet pack of four tablets for 50 paise following it up recently with a sachet pack of six for Rs 1.0. Few years back, it had got in candy under the Hajmola name, using a range of four Indian flavours to draw in custom an instance of innovation while leaving the core values of the brand intact. Hajmola, which was a Rs 22 core brand in 1990, is now worth Rs 60 crore, digestive tablets and candies contributing equally. Indigestion reliever Pudin Hara was available only in a liquid form until Since it came in a bottle and needed to be pre-mixed with water, it was inconvenient to consume. So Dabur launched Pudin Hara pearls, which are priced nearly 15 percent higher than an equivalent liquid dosage. While the liquid continues to grow, at about 6 percent, the pearls are growing at 22 percent and have helped Pudin Hara become ars 15 crore brand. Simultaneously the marketer is trying to change the brand image. The attempt is to point Dabur, the brand, as modern and promote it emphatically as a part of the urban consumer s lifestyle. 93

7 Packaging innovation has been at the heart of Dabur s attempt to rap with the urban consumer. It spends large sums annually on packaging research. The company has been laying emphasis on aesthetics, selfappeal and convenience for consumers. The department s role is to reconcile marketing needs with an executable option. While deciding on the choice of design, efforts are made to match the packaging with the marketing brief, the brand s positioning, cost effectiveness, appeal and operational feasibility. A professional agency is involved in creating designs. For Lemoneez, a cap-cum-dispenser permit lemon juice to be extricated either drop by drop or in a stream. For Dabur Vatika, a herbal enriched coconut oil, the packaging solution to its freezing is a metal can, similar to the one used for soft drinks or beer. This allows heating and can be sealed with an High Density Polythylene (HDPF) cap after use.the method of floating new products had its merits, as it was slow but cost-effective. The company is changing its approach in the interest of speed. The company tried to present its products in a better, friendlier format. And advertising is much more modern. Like Chyawanprash, a seasonal product earlier because it was used as a cure for cough and cold, has been repositioned as a complete health tonic. Dabur honey, which had a strong medicinal association, has been repositioned as a tasty product with strong nutritional values. Meanwhile, Dabur has consciously played down products such as Shilajit, which have strong aphrodisiacal connotations. The company feels that these could adversely affect its other products. 94

8 Dabur is also investing in training stockist salesmen to ensure better merchandising. Dabur is also working hard at expanding its retail coverage. Currently it covers less than 50 percent of the outlets in most of the large cities. The company is bringing systems and processes into place in coverage and distribution plan. In the past it used to focus more on distributors. Now, it is redressing and focusing on the retailer too so that brand display improves. The South still sees Dabur as a North Indian company. To crack the market, the company wants to use products with a sour flavour since these go down well in this region. For instance, two flavours of Hajmola candy, ChulbuliImli and NakhareeliKamrakh, were launched with the Southern market in mind.to keep up the momentum, Dabur expects new products, which includes improvements in generic products, to account for percent of incremental growth. That explains new launches like Lactonic, an all naturalgalactogogue which stimulates milk secreation, and Lemoneez, a natural lemon juice which does away with the inconvenience of squeezing the fruit. It is being test marketed in Bangalore, where vegetable hawkers are being used along with conventional retail outlets. Old remedy Drakshasav, which is grape-fruit-based, has got modern packaging, and has been, renamed Restora in an attempt to change the market from rural to urban. Sithopaladi Churn, which when consumed with honey is effective in treatment for upper respiratory tract ailments, has been presented in a 95

9 pre-mixed format. Available in a new, neat pack, its new name is Madhu Vani. As for its major existing brands, Dabur expects most of them to grow by 30 percent annually for at least the next two years. The company has set up a joint venture with Agrolimen of Spain to make and market confectionery products and chewing gum; with Osem of Israel for snack foods; and now it has signed a memorandum of understanding with a French company, Bograin, to make dairy products, such as cheese and butter. Dabur also wants to launch soaps and detergents and leverage its distribution strengths. With the rise of the green movement in the West, Dabur has developed ambition plans to go global. REFERENCES [1] Govil, K. L., Marketing in India, 1954, pp 6 [2] Lorenzo, A. M., Market Reports, 1948, pp 2 [3] Advertising and Marketing, 31 October, 1995, pp 80 [4] Saptahik Hindustan, [5] Advertising and Marketing, 15 January, 1996, pp 65 [6] Dharmyug, 1973 [7] Advertising and Marketing, September, 1991, pp 25 [8] Advertising and Marketing, 31 January, 1996 [9] Advertising and Marketing, 15 September, 1995, pp