The FMCG company will use a combination of high advertising and promotional spends and different formats of its products
Dabur, one of India's leading Ayurvedic and natural health care companies, is working on an aggressive push for its power brands like Amla, Vatika, Red, Hajmola, Real, etc.
The homegrown fast-moving consumer goods (FMCG) company will use a combination of high advertising and promotional (A&P) spends and different formats of its products in the foods, beverages, hair care, oral care and health supplement categories to further enhance visibility and penetration in the market.
Mohit Malhotra, chief executive officer, Dabur India, said, the company's initiatives to invest strongly behind its power brands, expanding distribution footprint, streamlining supply chain have enabled it to remain competitive and expand market shares.
PREMIUM FOCUS
|
- The FMCG company will use a combination of high advertising and promotional spends and different formats of its products
- It could introduce new variants and formats for its power brands like Honitus, Pudin Hara, Lal Tail
|
"We will continue to stay the course on our strategy and invest strongly behind our business, brands and infrastructure going forward as well," Malhotra said in a recent earnings call.
Focusing on both above the line (ATL) and below the line (BTL) activities, the company will direct a sizeable portion of its media spends towards the power brands. This will entail a disproportionately higher media investments in such brands. The company has kickstarted this exercise in the June quarter wherein media spend on power brands has been increased considerably.
The power brands, according to Malhotra, need to be supported through advertising and demand building. Accordingly, the company is redirecting money from other fringe brands in the portfolio to the power brands that are witnessing around 15% growth. For Q1 of this fiscal, Dabur spent Rs 166 crore towards advertising and promotional activities.
Additionally, the company will also be looking at newer things with the power brands. So there could be new variants and formats for its power brands like Honitus, Pudin Hara, Lal Tail to name a few that will get introduced in the market gradually.
In line with this strategy to expand its direct reach both in urban and rural markets, the company has added 40,000 additional outlets, taking the total direct reach to 1.14 million. "In addition to this, our village coverage went up to 48,000 from 44,000, giving our rural business a good momentum. We intend to continue to expand the reach and productivity of our distribution network to enhance the availability and penetration of our products," Malhotra said.
The company has also earmarked some capex that will enable it to launch smaller stock-keeping units (SKUs) that can straddle the rural route to market. For instance, its Real brand is still very urban and the penetration of juices as a category is also around 3-4% in the country.
"If you want to increase the penetration, we have to get into rural, for which we have to get the price points lower. That's what we are working on," said Malhotra.
For the current fiscal, Dabur has earmarked capex of Rs 250-300 crore, to be invested in India and Nepal to augment capacity.
"We got a policy that anywhere we have a 75% capacity utilisation, we will be augmenting new capacities. And because we are also embarking on a lot of innovation and making accessible SKUs for the rural markets, so the capex is required for that objective," said Malhotra.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Dabur India")
)
"We will continue to stay the course on our strategy and invest strongly behind our business, brands and infrastructure going forward as well," Malhotra said in a recent earnings call.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}