The company was hoping for margins in the 40-45% category, but ended up receiving just around 20%, which they found quite unattractive.

ZEE BUSINESS BEST B SCHOOL SURVEY

That is why, Fem Care, with its portfolio of bleaches, hair removing creams and liquid soaps, was considered lucrative. Similarly, Balsara was considered as the company''s portfolio in oral care was something Dabur felt it could create wealth with. There are segments that Dabur doesn''t feel it can do much with, like laundry, where the company would not wish to enter, even if the brand is lucrative enough.

The same goes for soaps, where Dabur had attempted an extension of the Vatika brand into the soap category, which they have exited as of now. A company spokesperson told us that it was done because they did not find the soaps category lucrative enough. The company was hoping for margins in the 40-45% category, but ended up receiving just around 20%, which they found quite unattractive. However, with Fem, they now have a separate brand that may help fuel their aspirations in soaps, but that would still count as a far-fetched thought as of now.


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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