Dabur India Limited (DIL) is the fourth largest FMCG Company operating in India with a turnover of Rs. 21,113 mn during the year ending March 31, 2008. It operates under three major business categories namely Consumer Care Division, Consumer Healthcare Division and Foods Division (Dabur Foods Limited was merged with DIL in July 2007). Many of the company’s products are based on traditional medicine – ‘ayurveda’. Dabur’s flagship fruit juice brand– Real, launched in 1996, carved out a niche for itself amid mainstream players like Coca-Cola, Pepsi, Godrej, and Parle Agro by claiming to be the only fruit juice in packaged form that is 100% preservative free. Since 2005, there has been an increase in the level of health consciousness among consumers in case of foods and beverages. Sensing this opportunity, Dabur repositioned its Real Activ as a health drink instead of fruit juice. This repositioning also meant that Real Activ would stop being a mass juice brand and cater to a niche market that accepts a premium health drink. The case deals with the dilemma whether the repositioning would help Dabur shed its mass marketer tag and also highlights the sustenance of the repositioned Real Activ in the long run.

Dabur India Limited (DIL) is the fourth largest Fast Moving Consumer Goods (FMCG) company in India with interests in health care, personal care and food products. Dabur foods' flagship brand, Real, which offers fruit juices, was launched in 1996 amidst the branded fruit drinks of several players like Coca-Cola, Pepsi, Godrej and Parle Agro, i.e., Minute Maid, Tropicana, Jumpin and Frooti respectively. At the time of the launch, the acceptance of packaged juices was low as Indian consumers preferred fresh juice to packaged juice. But, Dabur challenged this consumer perception by claiming that its juices contained no preservatives. Over the last two years, i.e., 2006-08, the fruit juice market in India grew at a rate of 25% per annum. According to a report by Frost & Sullivan (F&S), exceptional growth in the Indian economy and increasing awareness of healthy functional ingredients is driving the Indian foods and beverages market. Realizing the opportunities in the Indian health drinks segment, Dabur began re-orienting its focus on health conscious-consumers who are willing to pay a premium for healthy beverages by repositioning its brand as `Real Activ'.

Dabur is not only India's fourth largest FMCG company but also a world leader in Ayurveda with a portfolio of over 250 herbal/ayurvedic products. Dabur Group's principal activity is to manufacture healthcare, personal care and food products. The Group operates in five segments: Consumer Care, Consumer Health, Food, Retail and Other. The Group's products include health supplements, digestives, baby care, hair care, skin care and oral care products.

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