Dabur is reworking soaps push
[2008-5-20]
Tag: Medicated Soap
MUMBAI: Dabur India is reworking its strategy in soaps category, where it has a marginal presence, which could potentially see it exiting the category, a senior company executive said Thursday.
In other consumer care and consumer health categories, the company is planning a slew of brand launches and relaunches this fiscal, as it aims for a 15% topline growth this fiscal.
“The soaps category has become unattractive and our idea is to cut losses and deploy resources somewhere else. But we haven’t given up on the category. We are thinking of having products with differentiators like medicated soaps, which have better margins. If we don’t have differentiators, then we might as well exit the category.
Our overall portfolio is diverse enough,” chief executive Sunil Duggal told analysts.
The soap category is highly competitive and in spite of rising input costs, companies are finding it difficult to pass on price hikes.
“There are only two ways to increase your market share in this business. One is to spend huge amounts in AMP (advertising, marketing, and promotion) and another is downtrading, which means offering same quality at lower price points,” said a marketing executive of a rival soap manufacturer.
Dabur has only one brand —- Vatika —- in soap, which contributes less than a percentage to its overall revenues. The category is part of baby and skin care group, which is 6% of its consumer care division’s revenues, which in turn is 76% of Dabur India’s topline.
MUMBAI: Dabur India is reworking its strategy in soaps category, where it has a marginal presence, which could potentially see it exiting the category, a senior company executive said Thursday.
In other consumer care and consumer health categories, the company is planning a slew of brand launches and relaunches this fiscal, as it aims for a 15% topline growth this fiscal.
“The soaps category has become unattractive and our idea is to cut losses and deploy resources somewhere else. But we haven’t given up on the category. We are thinking of having products with differentiators like medicated soaps, which have better margins. If we don’t have differentiators, then we might as well exit the category.
Our overall portfolio is diverse enough,” chief executive Sunil Duggal told analysts.
The soap category is highly competitive and in spite of rising input costs, companies are finding it difficult to pass on price hikes.
“There are only two ways to increase your market share in this business. One is to spend huge amounts in AMP (advertising, marketing, and promotion) and another is downtrading, which means offering same quality at lower price points,” said a marketing executive of a rival soap manufacturer.
Dabur has only one brand —- Vatika —- in soap, which contributes less than a percentage to its overall revenues. The category is part of baby and skin care group, which is 6% of its consumer care division’s revenues, which in turn is 76% of Dabur India’s topline.
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