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How Dabur Red Saw Rise To A Turnover Of Rs. 1000 Crores

| Published on August 31, 2020

It was the year 2001 when the brand, Dabur, had been given a fair warning about how its competitors would eat it alive. By then the company had not entered the toothpaste segment but was just weighing its options. Toothpaste powder was soon coming to a halt, and for the company to compete fair, it had to go up against ‘Colgate’. Since the company already had a dedicated fan base, it just had to retarget them with a new proposition.

In the next 2 years, it definitely came across to its customers with the message – ‘your powder now comes in the form of a paste” and customers were definitely eager to try it. Almost two decades later, Dabur has a turnover of Rs. 1000 crores in 2020.

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Who is Dabur Red’s Clientele?

Red has been a big name in South India and has slowly gone up focusing on the North and East regions of the country as well. In states like Bihar and Andhra Pradesh, the brand is number one. This growth was also prevalent at the beginning of the pandemic situation when the toothpaste sector was growing at 2.1% but Dabur came out with a whopping 8.1%.

Dabur is competing with Patanjali Daant Kaati, but has managed to wow its audience with its affordable price point. A 100 gm tube costs Rs. 50. The repurchasing strategy definitely kept the brand going as well. First-time buyers wouldn’t choose anything else, and the repeat purchase up to two or three times kept the brand soaring high.

What is Dabur Red’s Future Strategy?

Red wants to focus on providing a toothpaste gel that will help in maintaining a healthy oral hygiene. Till date, it focused on the freshness and pricing but is now going to reposition the packaging and gel to tackle oral issues as well. They are going to focus on the colour ‘red’ and as the saying goes, ‘paint the town red’ in their future marketing strategies.

Source: Moneycontrol

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