Positioning, Repositioning, Reverse Positioning Strategies Case Study

Indian FMCG Player Dabur: Repositioning its 'Real Activ'

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Abstract:
Dabur India Limited is the fourth largest FMCG (fast moving consumer goods) company operating in India with a turnover of 5,322.9 million rupees as at 30 September 2008. It operates under three business categories namely the consumer care division, consumer health care division and Dabur Foods Limited (in July 2007, Dabur announced the demerger of Dabur Foods Limited with DIL). The company's products are based on traditional medicine - 'ayurveda'. Dabur's flagship brand Real fruit juice was launched in 1996 and the brand carved out a niche for itself amid mainstream players like Coca-Cola, Pepsi, Godrej, and Parle Agro by claiming to be the only fruit juice in packaged form that is 100% preservative free. Since 2005, there has been an increasing heath consciousness among consumers for foods and beverages. Sensing this opportunity, Dabur repositioned its Real Activ as a health drink instead of fruit juice. This repositioning also meant that Real Activ would stop being a mass juice brand and cater to a niche market that accepts a premium health drink. The case deals with the dilemma as to whether the repositioning would help Dabur shed its mass marketing tag. The case also highlights the sustenance of repositioning Real Activ in the long run.

Pedagogical Objectives:

• To food and health market scenario in India.
• To Dabur's growth as an FMCG company.
• To strategies employed by Dabur in repositioning its healthy fruit juice, Real Activ.

Keywords :  Financial crisis, Capital adequacy ratio (CAR), World Trade Organisation (WTO), Retail banking, Soviet Union (USSR), Non-performing loan (NPL), Sberbank, Vneshtorgbank, Financial soundness, Credits to households, Inorganic growth, Expansion strategy, Gene