11/18/2015

DABUR

GLUCOSE-D

Increasing Market share of Glucose-D | Sejal | Sreekant K Group 5

Contents
Dabur- A primer ............................................................................................................................................ 3
Industry Analysis of Glucose Market ............................................................................................................ 3
5 Forces Analysis of Glucose Drink Market ............................................................................................... 4
Daburs Performance in the Glucose Drink Industry .................................................................................... 6
USP of Glucon-D vis--vis Glucose-D............................................................................................................. 6
Glucon-D ................................................................................................................................................... 6
Positioning............................................................................................................................................. 7
Product Line .......................................................................................................................................... 7
Advertised Features and Benefits ......................................................................................................... 8
SWOT Analysis........................................................................................................................................... 8
Perceptual Map......................................................................................................................................... 9
CPM Matrix ............................................................................................................................................. 10
Sector Chart ............................................................................................................................................ 11
Analysis ................................................................................................................................................... 11
Glucose-D .................................................................................................................................................... 12
Positioning .............................................................................................................................................. 12
Product Line ............................................................................................................................................ 12
SWOT Analysis......................................................................................................................................... 12
Perceptual Map....................................................................................................................................... 13
Strategies to be employed by Dabur .......................................................................................................... 13
1.

A renewed Segmentation plan ................................................................................................... 13

2.

Improved IMC campaign ............................................................................................................. 14

3.

Glucose-D Ready-To-Drink Solution............................................................................................ 14

4.

Improved Distribution Network .................................................................................................. 14

IMC Campaign and Objectives .................................................................................................................... 14

Creative Recommendations ................................................................................................................ 15

DABUR Increasing the Market Share of Glucose-D

Justification: According to analysts, the Rs. 1000 crore Powder Glucose category is growing at 16 per
cent per annum. The category, however, is dominated by Glucon D from Heinz, which holds 55 per cent
share, followed by Glucose-D from Dabur(25 per cent). The other players are GSKCH-Boost Glucose and
Glaxose D.
This project would attempt at suggesting strategies for increasing market share for Daburs Glucose-D
product by analyzing the industry, competitors, external environment and finding a cognizance of the
same with the firms own internal processes.

Market Share
4% 2%
11%

Glucon-D
Glucose-D

26%

Glaxose-D

57%

GlucoVita
GlucoCharge

Project scope description: The characteristics of the products, services, and/or results your project will
produce. The category
Brand

Category

Segment

Product

Major competitors

Dabur

Powdered Glucose

Health

Glucose-D

Heinz Glucon-D

Supplement
The project would entail detailed study of FMCG market under the subcategory of Powdered Glucose
market. The glucose market is still in the growth phase in Indian market.
Deliverables:
1

Current market research report on powdered glucose in India

Current situation of Dabur in the segment

USP of competitors vis--vis Dabur

Strategies to be employed by Dabur to increase its market share

Constraints: Data available is restricted to secondary research on account of unavailability of primary

first-hand information.

Dabur- A primer
About Dabur
Dabur India Limited is a leading Indian consumer goods company with interests in Hair
Care, Oral Care,Health Care, Skin Care, Home Care and Foods. From its humble beginnings in
the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd
has come a long way today to become a leading consumer products manufacturer in India. For
the past 130 years, we have been dedicated to providing nature-based solutions for a healthy
and holistic lifestyle.
Through its comprehensive range of products, it touches the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped Dabur develop a bond of trust
with its consumers. That guarantees the consumers the best in all products carrying the Dabur
name .
Their strategic intent can be described as follows:

Focus on growing core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology

Be the preferred company to meet the health and personal grooming needs of our
target consumers with safe, efficacious, natural solutions by synthesizing our deep
knowledge of ayurveda and herbs with modern science

Provide consumers with innovative products within easy reach

Build a platform to enable Dabur to become a global ayurvedic leader

Be a professionally managed employer of choice, attracting, developing and retaining

quality personnel

Be responsible citizens with a commitment to environmental protection

Provide superior returns, relative to its peer group, to its shareholders

Industry Analysis of Glucose Market

In recent years, the glucose drink industry has been faced with new opportunities and
challenges, as changing consumer preferences call for new ways of keeping current customers
and attracting new ones. Competition is increasing and beverage manufacturers must offer
high-quality products, distribute them efficiently, ensure safety, keeping prices low at the same
time. Venturing to new markets by launching new products is very important to succeed and

players must be able to quickly capitalize on emerging opportunities. Buyers include

independent retailers, on-trade establishments and supermarkets. The presence of the latter
increases buyer power as their large size grants them greater negotiating power. Players in this
market may opt for an integrated business, in which they sell ready-to-consume drinks to
retailers. Another option is to adopt a business model in which players sell raw materials
(concentrates) to a network of bottling companies (i.e. independent companies or owned to
some extent by the players). Both are common within the market. Supplier power is limited as
most inputs are readily available commodities. New entrants must contend with the global
reach and strong brands enjoyed by the incumbents, although niche markets remain to be
exploited. Substitutes exist in the form of tap water, non-ready-to-drink hot drinks such as tea
and coffee, and alcoholic beverages.

5 Forces Analysis of Glucose Drink Market

Threat of
New
Entrants

Bargaing
Power of
Suppliers

Competitive
Rivalry

Bargaining
Power of
Buyers

Threat of
Substitutes

Buyer Power
In India, the main distribution channels for the glucose drinks market are independent retailers,
which account for 47.7% of the total market volume. Distribution channels are more
concentrated than in other regions with on-trade establishments also accounting for 28.1% of
sales. In most other countries, supermarkets are the leading distribution channel and in this
way, India is something of an anomaly. The degree of consolidation in the food and beverage
retail market varies considerably from country to country. Developing economies, such as China
and India, are characterized by fragmented food and beverage markets. In such cases, buyer
power is relatively weak. Consumers in this market are likely to be strongly influenced by brand,
and many players have managed to develop strong brands, which will tend to decrease buyer
power as buyers feel obliged to stock certain products to meet their customers' preferences.
Overall, buyer power is moderate.

Supplier Power
The primary inputs for glucose drinks manufacturers include concentrates, a range of natural
and synthetic sweeteners such as corn syrup and refined sugar (sucrose), aspartame, and
similar ingredients. Some of these commodities, although available from several sources, are
subject to price fluctuations. Others (e.g. aspartame) are provided by only one or two major
suppliers. However, even in these cases, there are usually substitutes available. For example, if
aspartame becomes expensive or unobtainable then it can be substituted by saccharine and
other similar products.
Overall, supplier power is moderate in this market.
New Entrants
The Indian glucose drinks market is characterized by the presence of large, multinational
players like GluconD by Heinz, GlucoseD by Dabur. The larger players wield significant power
and benefit from scale economies, strong brands, and a diverse range of products. Although it
would be difficult for a new entrant to compete with the brand strength and reach of existing
players, it may be possible to achieve small-scale success stressing a unique production method
or nutritional benefits. This has been seen in recent years with the growing popularity of
functional drinks, but ultimately many of the successful players have then been acquired by
major corporations. Even if a new player opts for a business model in which much of the
production process is performed by bottling partners under license, there will still be a need to
invest in manufacturing capacity in order to produce the concentrates. This will generally be
fairly capital-intensive and can restrict market entry. However, market niches can be exploited
by new entrants.
Overall, there is a moderate likelihood of new entrants.
Threat of Substitutes
The substitutes for glucose drinks primarily include rasana, neembu paani and soft drinks.
Overall, there is a moderate threat from substitutes.
Degree of Rivalry
The players in this market are fairly similar. This increases rivalry, and means that market
fluctuations are likely to affect companies in the same way. Switching costs are low: buyers can
switch from one player to another without incurring costs. This boosts rivalry. The ease of exit
depends to some extent on the business model of the company. A company which
manufactures ready for-consumption soft drinks in a single integrated process will need to
dispose of assets such as specialized equipment in order to exit the market. On the other hand,
a company of the same size that operates in conjunction with a network of bottling partners
will tend to have fewer assets, and exit is therefore easier. Dynamic market growth, both in
recent years and forecast for the future, alleviates competition.

Overall, the threat is moderate in the Indian glucose drinks market.

Daburs Performance in the Glucose Drink

Industry
Dabur Glucose performed well driven by a combination of marketing efforts and seasonal
factors. The year saw Dabur Glucose move away from the generic positioning of energy to a
more focused and differentiated proposition of cooling energy. This shift, communicated
through a mega campaign featuring cricketer Sourav Ganguly and a high decibel school contact
programme in key markets helped the brand gain market share. The various Glucose flavours
are increasingly becoming popular. With summers already knocking on our doors, we have
prepared a number of initiatives to drive growth for Dabur Glucose, going ahead. As part of
these, the company has signed up cine star Ajay Devgn as the new brand ambassador to
endorse the product and new campaigns featuring him will hit the television screens this
summer.
According to analysts, the Rs 550-600 crore category is growing at 16 per cent per annum. The
category, however, is dominated by Glucon D, which holds 55 per cent share, followed by
Glucose D (25 per cent). The other players are GSKCH-Boost Glucose and Glaxose D.
Powder glucose consumption cuts across socio-economic classes but is largely a nondifferentiated product, and Dabur has been working towards creating differentiation in the
market with newer variants, flavours and packaging. These initiatives have garnered a good
response and helped us grow our share of the powdered Glucose market.

USP of Glucon-D vis--vis Glucose-D

The major competitors of Dabur Glucose-D are Heinzs Glucon-D, Glaxos Glaxose-D and Wipros
GlucoVita to some extent.

Glucon-D
The brand positioning of Glucon-D is that of Instant Energy, as is visible from the promotional images.

Positioning - A family feeling refreshed even with a hot burning sun typical of Indian summers. The
product is positioned as an agent of instant energy and one that provides instant gratification.
Product Line The iconic Glucon-D brand comes in the most recognizable container. It has improved
its flavor category from pure original glucose to Orange, Nimbu Pani and Aam Panna as well.

Apart from the Cuboid shaped cardboard packaging Glucon-D also comes in various airtight plastic
covers. They also have sachets of Rs. 5 aimed primarily at the rural segments. To capture the kids
section, they have also come out with candy format Energy bites.

Advertised Features and Benefits

Features

Benefits

Glucon D orginal has 99.4%

pure Glucose

1. Provides instant energy when you are tired due to physical activities
and heat.
2. Glucose is the only source of energy for the brain.

Contains Calcium, Phosphorus

and Vitamin D

Calcium and Phosphorus are important nutrients for healthy bone

development and Vitamin D helps in the absorption of Calcium.

Available in 4 delicious
flavours-Regular, Orange,
Nimbu Pani and Aam Panna

Provides energy with delicious taste to cater to all age groups.

SWOT Analysis
A simple SWOT Analysis of Heinz Glucon-D shows the various aspects owing to which there is so much
disparity in market shares of the brand against its competitors.

SWOT Analysis
Strength

1.Extremely strong brand name

2.Excellent branding and advertising
3.Excellent distribution and availability
4.High brand loyalty and top of the mind recall

Weakness

1.Not good for diabetic patients

Opportunity

1.Leverage successful brand

2.Avenues for more advertisement
3. Similar looking products pose significant competition

Threats

1.Threat from locally made glucose

2. Seasonal product

Perceptual Map
Quality
LOW

Economy
Brand

Bargain
Brand

Cowboy
Brand

Premium
Brand

Price

LOW

HIGH

HIGH

Glucon-D is considered high on quality and high on price thus enabling it to get a preferred position in
the minds of the consumer. It is currently a Premium Brand.

CPM Matrix
Competitor Profile Mapping Matrix shows various parameters based on which we can compare the
various competitors against the market leader and assess their weaknesses and strengths.

Factor

Glucon-D

Glucose-D

Rating Score

Rating Score

Glaxose-D

GlucoVita

Weight
Rating

Score

Rating Score

Advertising

20%

0.8

0.6

0.4

0.2

Product Quality

30%

1.2

0.9

0.9

0.9

Price

20%

0.6

0.8

0.6

0.6

Market Share

10%

0.5

0.2

0.1

0.1

Loyalty

10%

0.5

0.2

0.1

0.1

Competitiveness

10%

0.4

0.3

0.1

0.1

2.2

The competitive profiling matrix clearly shows the disparity in scores between the supreme market
leader Glucon-D and the trailing followers like Glaxose-D etc. Glucose-D however is making impressive
strides and not too far behind.

Sector Chart
25%

20%

15%

10%

0.1

0.2

0.3

0.4

0.5

0.6

5%

0%
Market Share

Glucon-D

Glucose-D

Glaxose-D

The glucose industry barring the glucose monitoring medical devices is growing at a rapid pace of 12.5%.
However, the major player Glucon-D has lost its initial run. It is lagging although slightly. However,
Daburs Glucose-D has clinched a respectable lead. With over 20% growth rate, its certainly the most
exciting brand to watch out for.

Analysis
The above analysis proves that the major reasons for Glucon-D being the major market share holder in
the glucose segment are the following
1. Strong advertising and branding capabilities. Heinz acquired the Glucon-D product from
GlaxoSmithKline at a point when the brand was already well known. Over time however the
growth has stagnated signaling a weakness in the chain.
2. Glucon-D has maintained itself a Premium Brand. To capture major market share in all areas
possible, it has opined that the only way forward is to provide best quality at above market
pricing. This strategy has worked owing to the ategory of health supplement which warrants a
premium on quality.
3. The various flavors that come out of the brand have resulted in a favorable positioning for
Glucon-D. With flavors like Orange, Lemon etc it has tried to cover all tastes commonly likened
to Indian taste buds.
4. It has proper place for sachet formats of Product flanking. This strategy has resulted in attracting
larger market share from the rural populace.
5. To target the kids, it has come up with the candy version.

Glucose-D

The current positioning of the brand of Glucose-D is All-round energy, as is visible from the
promotional image.
Positioning The product is aimed at the kids with promotional images showcasing kids playing various
sports.
Product Line The packaging of Glucose-D is closely related to the iconic Glucon-D brand. It has only
one flavor other than the original glucose-D mix. The Litchi Flavor is the only additional flavor in use.
SWOT Analysis
A simple SWOT Analysis of Heinz Glucon-D shows the various aspects owing to which there is so much
disparity in market shares of the brand against its competitors.

SWOT Analysis
Strength

1.Stong Parent brand name

2.Good branding and advertising

Weakness

1.Not good for diabetic patients

Opportunity

1.Leverage successful brand

2.Avenues for more advertisement

Threats

1.Threat from lawsuits due to similar looking packaging

2. Seasonal product

Perceptual Map
Quality
LOW

Economy
Brand

Bargain
Brand

Cowboy
Brand

Premium
Brand

Price

LOW

HIGH

HIGH

Glucose-D is considered high on quality and low on price thus enabling it to get a slightly preferable
position in the minds of the consumer. It is currently a Bargain Brand.

Strategies to be employed by Dabur

Using the analysis at our disposal we have come at following conclusions for Dabur Glucose-D

1. A renewed Segmentation plan

The various user groups that are targeted by this product flanking can be segmented as
1.
2.
3.
4.

Family unit
Individual one-timers
Kids
Rural segment

Family Unit
This particular segment of customer is the one comprising of a female that takes decisions of which
energy drink to buy for the family.
Solution: Family Pack
Individual One-Timers
This segment of customers do not want to be bothered about the big-sized containers but rather want a
mobile pack dosage of energy drink owing to their fast paced lifestyle.

Solution: Mobile Pack Glucose-D Mixer

Kids
Kids are not fans of powdered stuff. They want variety and creativity in the offerings.
Solution: Glucose-D Candy
Rural Segments
Rural segment people are not habitual users of energy drinks. They need a one off dose of these drinks
when they need it.
Solution: Glucose-D sachets of Rs. 5

S/No
1
2
3
4

Segment
Family Unit
Individual One-Timers
Kids
Rural Segments

Issue
Female centric
Non portability
Powdered form
Quantity

Solution Type
Package
Package
Product
Package

Solution
Family Pack
Mobile Pack Glucose-D Mixer
Glucose-D Candy
Glucose-D sachets of Rs. 5

2. Improved IMC campaign

Print Advertisements + Media Advertisements + Public Relations + Social Media

3. Glucose-D Ready-To-Drink Solution

There is ample proof in the market studies that customers who require instant energy would rather visit
the visicooler of the nearest mom and pop store rather than buy a carton of powdered Glucose. Dabur
should come up with Ready-To-Drink cartons filled with Glucose-D solution. This should be an ideal
product to go with the powdered glucose format.

4. Improved Distribution Network

Dabur has an extensive network of rural distributors that help them in the supply chain management.
However, they have restricted their reach to the urban market. To properly use their bargain brand
image in the context of sales, they should sell their products in the rural segment and thus maintaining
status quo with the market leaders.

IMC Campaign and Objectives

Objectives must meet the requirements for sound communications objectives as discussed in the text.
Preference: It is used when the target audience is aware of the product, knows about it, and likes it but
does not prefer it to other brands. When compared to the brands with more flash and sheen, Godrej
products are considered to be of lesser quality even though they may be value for money.

Creative Recommendations
Advertising Objectives:

To be the first choice of the target customers in the glucose drink category.
To be perceived as an energy giving product that provides relief on hot sunny afternoons

Message Strategy

The idea here is to appeal to the masses by conveying its functional attributed of providing
instant energy

Product Recommendation

Dabur can release the product in small packages or sachets that are priced less and hence cater
to the rural market

Message Appeals

Functional and Humor Appeal: The idea is to tell the consumers about the product benefits but
not in a preachy manner. Instead use humor to highlight the attributes and associating with a
cartoon character for the same would be better.

Rationale for Creative Recommendations

It is generally seen that a cartoon character can do any sorts of things and associating an energy
drink with that of a cartoon character would bring consistency in the message.

Media Recommendations
Traditional Media

National Cable Television: Above-the-line channels like Television are the best medium to
showcase any product. Product placement in a popular TV serial will also help drive preference
towards the product. Also increase the frequency of TVC in coastal cities like West Bengal,
Chennai, Mumbai and others where people perspire a lot.
Print Newspaper: Another major above-the-line channels like Newspaper to showcase a new
product to the customers.
Outdoors: Banners and Posters that showcase the newest flavors of GlucoseD should be
publicized as much as possible.

Interactive Media

Events and promotions: City wide events that promote the product especially in the coastal
cities to drive awareness and preferences.