The Ayurvedic game of Dabur to attract young people – Industry News

Many Indians start their day with a spoonful of Dabur Chawanprash, an Ayurvedic immunity booster. For people put off by the gooey consistency of the product, the company has launched Chawanprash capsules. That’s not all. There is a sugar-free variant of Dabur Chawanprash available for diabetics and a jaggery variant for those who want to enjoy the benefits of palm sugar. The company has also launched a powder variant of Chawanprash for those looking for convenience and ease of consumption.

Dabur India, worth Rs 11,530 crore (consolidated revenue), among the oldest ayurvedic companies in the country, is implementing a strategy to attract young consumers into its fold. The 138-year-old brand is prioritizing e-commerce, direct-to-consumer channels, new product formats and modern packaging to stay relevant among young people.

“The objective,” as Mohit Malhotra, CEO of Dabur India, explains, “is to increase the company’s addressable market and remain contemporary for consumers.”

“There are several aspects to this. One is go-to-market strategy, second is product format and variants and third is communication and packaging,” says Malhotra about the company’s modernization drive, adding that he considers this a “virtuous circle” to stay in the future. adjust.

For example, Dabur’s total spend on digital advertising today accounts for 33% of its total ad spend. Five years ago, this figure represented around 5-6% of its total ad spend, Malhotra says.

On a broader level, the company, according to analysts, hopes to achieve Rs 7,000 crore in revenue from the home care and personal care sectors over the next few years, up from Rs 3,846 crore reported in during FY23 within its national activities (constituting 75% of consolidated turnover). The company hopes to achieve this by bringing more consumers into its fold, says G Chokkalingam, founder of Mumbai-based Equinomics Reseach and Advisory.

The Ghaziabad-based company is also targeting a turnover of Rs 5,000 crore in healthcare, up from Rs 2,581 crore reported in FY23. While the third vertical – the food and beverages – reported a turnover of Rs 1,724 crore in FY23, with the company targeting a turnover of Rs 2,000-3,000 crore in the future.

To ensure that these objectives are achieved, the company relies on the main growth levers. This involves promoting its eight energy brands within its domestic operations, including names such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste and Real fruit juice. Vatika is Dabur’s powerful international brand offering a range of personal care products for a global audience.

While Dabur Red Paste, Dabur Amla and Vatika have a turnover between Rs 1,000 crore and Rs 1,500 crore, Dabur Chawanprash and Dabur Honey fall between Rs 500 crore and Rs 1,000 crore in terms of size. And Dabur Real is targeting the Rs 2,000 crore mark in terms of turnover in the next few years, up from Rs 1,600 crore currently.

Within retail, the e-commerce vertical, Malhotra says, accounts for about 10% of the company’s overall sales. The aim is to increase this figure to around 15-20% over the next few years, supported by an aggressive online push (via third-party websites/marketplaces) as well as a direct-to-consumer approach via the online store. company line. .

At the same time, the company is also working with its existing modern retail partners (such as Reliance Retail) to help understand buyer behavior, offer relevant products and help manage inventory in real time. This strategy is also deployed within general commerce.

To leverage new product formats and variants, Dabur, says Malhotra, puts its heart and soul into work, conducting consumer gauges and studies to determine what will and will not click with the target audience. While the company
For example, Odomos mosquito repellents are now available in convenient sprays, lotions, roll-ons and gels, in addition to creams to improve brand visibility. The company has already launched body washes and soaps under its Gulabari brand, besides aerosols under Odonil air fresheners. It has also expanded its Real fruit drink brand to plant-based drinks like soy and almond, carbonated fruit drinks, milkshakes, coconut water and peanut butter. It has also forayed into ready-to-cook gulab jamun mix with the Hommade brand.