The Hindu Business Line : Dabur India plans realignment of advertising agencies

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Chennai Jan. 30 FMCG major Dabur India, which works with a plethora of ad agencies, plans to consolidate its ad planning and spend with fewer agencies. This plan, which will evolve during the course of this year may see Dabur working with two agencies in each of the three marketing groups it has structured itself into: health, personal care and home care.

Mr V.S. Sitaram, Executive Director (Consumer Care Division), Dabur India Ltd, told Business Line that he would like to consolidate and work differently with advertising agencies and hence the need to prune the way the relationships have been structured as of now. "I am trying to create areas where I can get strategic direction from the agencies."

Dabur, which expects to have an ad spend of Rs 150 crore this fiscal, and Rs 200 crore including below-the-line promos, works with six ad agencies now: JWT handles Meswak and Promise; Lowe Hajmola and Dabur Honey; O&M Dabur Amla. McCann Erickson handles the home care brands such as Sanifresh as well as Chyawanprash; Bates Dabur Red toothpaste; Contract Vatika shampoo and the baby care range, while Mudra handles Vatika hair oil.

Mr Sitaram said that Dabur may look at two agencies for each marketing group or may consolidate with four agencies altogether. "We need great branding and strategy ideas and that needs us to give terrific briefs for agencies to come up with good creatives," said Mr Sitaram. He said the consolidation will not be a "big bang affair" but done over the next year as so far Dabur has enjoyed a deep relationship with all its agencies. Its media planning business, with four agencies earlier, has been consolidated with WPP's Maxus while buying is done in-house. "It pays to have fewer people involved with bigger stakes," he added.

Dabur will also be tying up with Ramms to improve its visual merchandising. Talking about the Balsara brands which Dabur had taken over, Mr Sitaram said the mosquito repellent brand Odomos has shown strong growth, especially with the scare over chikungunya.

A Rs 30-crore brand, Odomos in Q2 of this year grew by over 50 per cent. Dabur brands such as Chyawanprash and Dabur Honey too are seeing good growth rates in the high double digits, said Mr Sitaram.

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