Dabur Chyawanprash: Repositioning and Continuous Reinforcement

Code : MM0078

Year :

Industry :FMCG

Region : Asia

Teaching Note:Available

Structured Assignment :Not Available

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A NOTE ON DABUR: In 1884, Dr. S.K. Burman in Calcutta, West Bengal, started Dabur (an acronym of the name Dr Burman) as a proprietary firm to manufacture ayurvedic drugs. Initially, the company marketed an allopathic drug, Plagin, to combat the then prevalent epidemic of plague. In 1896, the company set up its first manufacturing plant at Garhia near Calcutta for large scale production of chemicals and ayurvedic drugs. In the early 1900s, the next generation of Burmans took a conscious decision to focus more on ayurvedic medicines as they believed that it was only through ayurveda that the healthcare needs of poor Indians could be met...

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ABOUT DABUR CHYAWANPRASH: Chyawanprash was a comprehensive herbal tonic with multiple health benefits, prepared according to an ancient ayurvedic formula. It was known as an immunity booster and a preventive for normal cough and cold, especially in the winter season. It was believed that Chyawanprash was founded by sage Chyawan in the fourth century BC. He mentioned the composition of Chyawanprash in ‘Charak Samhita’, an ancient ayurvedic treatise written by the sage himself. This unique composition was a mix of 49 powerful ayurvedic herbs with ‘amla’ (Indian gooseberry) as the base...

REPOSITIONING IN 2003: NEW PACKAGING AND CELEBRITY ENDORSEMENT: In 2003, Dabur Chyawanprash’s traditional packaging received a complete facelift (Refer to Exhibit IV for old vs. new packaging). Dabur realized that with buying power increasing in the youth segment, its Chyawanprash had to be redefined. The company, therefore, did two things. It repositioned the brand from being just an immunity builder to being a holistic health provider. At the same time, to cast the net wider, it embarked on a program to increase market penetration. ..

REPOSITIONING IN 2007: INCREASING RELEVANCE: Over a period of time, Dabur Chyawanprash started facing tough competition not only from other chyawanprash brands but also from other related categories like health drinks, as it was positioned similarly, as enhancing immunity. The company also had to overcome the perception that chyawanprash should be taken only when someone was not feeling healthy. So, it decided to reposition the brand...

CHANGE IN PROMOTIONAL STRATEGIES: EYING ON GEN X: For its flagship brand Dabur Chyawanprash, Dabur signed on the then captain of the Indian cricket team, M S Dhoni, as brand ambassador in November 2008. After selecting Dhoni as a brand ambassador, VS Sitaram, CEO, (consumer care), Dabur India, said, “We, and our consumers, believe that there is a great fit between what MS Dhoni stands for and what consumers expect from Dabur. We look forward to a match-winning partnership between Dabur and Dhoni.” ..

PROMOTION THROUGH BELOW-THE-LINE (BTL) ACTIVITIES: In 2010, Dabur adopted a unique marketing initiative to promote its Chyawanprash. To enhance its brand presence in northern states like Uttar Pradesh and Bihar, core markets for Dabur Chyawanprash, Dabur signed on Ravi Kishan, a famous actor from the Bhojpuri film industry who was popular in UP and Bihar, as its brand ambassador for below-the-line activities, to increase brand visibility in the Bhojpuri-speaking belt. Ravi Kishan was to endorse Dabur Chyawanprash through direct interaction with consumer retailers and stockists...

PROMOTIONAL STRATEGY OF DABUR CHYAWANPRASH VS EMAMI SONA CHANDI CHYAWANPRASH: In 2011, the Indian Chyawanprash market was valued at about Rs. 4 billion. The market had grown at a rate of 15% over the previous year in terms of value and volume. Despite tough competition, Dabur Chyawanprash was the market leader with a 67% share in 2011. Emami was one of the leading competitors of Dabur Chyawanprash with a 20-22% market share. , ..

MADHURI DIXIT ENDORSING DABUR CHYAWANPRASH: In October 2013, Dabur signed on Madhuri as its new brand ambassador to endorse Dabur Chyawanprash. Rajeev John, Marketing Head, Health Supplements, Dabur, said, “With Madhuri herself being a consumer ..

SCIENCE-BASED AYURVEDA: According to experts, ayurveda was always based on faith unlike allopathy medicine which was clinically tested for the promised benefits. But customers had begun asking for scientific evidence of the value promised by ayurveda products. ..

LOOKING AHEAD: Along with the repositioning exercise in 2003 and 2007, Dabur had been continuously engaging with film stars and cricket players to ensure that it remained a market-leading player. However, it remained to be seen whether these reinforcements would help the more than 70-year-old Dabur ..

Exhibit I: Vision and Principles of Dabur
Exhibit II: Various Products of Dabur
Exhibit III: Market Position of Dabur Brand vis-à-vis Competitors in January 2016
Exhibit IV: Old Vs New Packaging of Dabur Chyawanprash in 2003
Exhibit V: Shift in Dabur’s Advertisement from Zaroorat Hai
Exhibit VI: Dabur Chyawanprash Poster
Exhibit VII: Change in Packaging of Dabur Chyawanprash
Exhibit VIII: Emami Zandu Sona Chandi Chyawanprash TVC in June 2016
Exhibit IX: Poster of Sona Chandi Chyawanprash
Exhibit X: Positioning of Dabur Chyawanprash & Zandu Sona Chandi Chyawanprash Plus
Exhibit XI: From ‘Faith-Based Ayurveda’ to ‘Science-Based Ayurveda’

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