Dabur
Dabur
Dabur
If no, strategies.
Anser:
In so far is Dabur is concerned we can say Yes, Dabur has a very strong
brand image:
For more than a century Dabur has worked in active collaboration with nature
to provide the best of herbal health and personal care products to its
consumers. Today, Dabur is all set to take this abundant knowledge of
Ayurveda to global frontiers. Knowledge is the key to growth in today's world.
Whatever the industry is, it is the knowledge, which provides cutting edge to
individual and organizations. For more than a century nature has been a rich
source of knowledge for Dabur. Nature has not only given us the ingredients
for all our products but has also taught us how to create a harmony within
and without the organisation. Nature has inspired us in all our acts. Ayurveda
- the science of life is based on principles of nature. All Ayurvedic preparations
have their ingredients derived from Nature. Dabur has converted the healing
properties of natural ingredients and the age-old knowledge of Ayurveda into
contemporary healthcare products to improve health problems of its
consumers.
Dabur India Limited understands its responsibility as a corporate house. “We
have not only set our sight on increasing turnover and profitability of the
company but also on propagating Ayurveda - the Indian system of medicine.”
Dabur India Limited is the fourth largest FMCG Company in India with
interests in Health care, Personal care and Food products. Building on a legacy
of quality and experience for over 100 years, today Dabur has a turnover of
Rs.2233.72 crore with powerful brands like Dabur Amla, Dabur
Chyawanprash, Vatika, Hajmola & Real.
Himani & Baidyanath have emerged as significant competitors with about 15%
& 13% market share respectively. Other national players in segment include
Zandu besides a host of unorganized sector players.
Dabur has recently launched Sugar Free “Chyawanprash” targeted to the
segment of people with high sugar level. Its sales have been very
encouraging.
Dabur Chyawanprash’s position in the product life cycle has been analyzed
and its position as per Value equivalence line has been studied. Marketing mix
with its four elements viz product, place, promotion and price with respect to
the product has been studied.
Dabur went ahead and built a system using Visual Basic and ASP with SQL
Server 2000 as the database. It decided not to use a packaged SCM solution
due to the high cost and relative lack of complications in its supply chain.
The initiative
The hardware is mostly owned by the primary CFA (Carry and Forward Agent)
except for the networking equipment, which is owned by Dabur. In the case of
the secondary systems, stockists wholly own the hardware.
The primary rollout began in April 2001 and took 16 months. The first six
months were used to create a business model common to all divisions (family
products, healthcare, ayurvedic products, and pharmaceuticals), and testing
and piloting the same.
The Innovation
Dabur
Sales and Distribution Continioued focus on improving penetration, increasing
product availability and re alignment of the distribution framework were the
key highlights of the company’s sales and distribution strategy 2008-2009.
Significant investment to strengthen market presence, through activation
program targetd at key urban channels and rural markets, was a major
initiative aims at strengthening the sales and distribution system, that today
covers 25 lakhs retail outlets across the country.
Further the integration of Dabur foods with consumer care division gave the
food portfolio access to platforms of strategic channel activation programs
created by CCD, besides providing scale and cost benefit to enable greator
reach and efficiency for food portfolio.
Going forward, the company is revamping it’s sales structure by dividing it’s
foods soldiers in to three focus groups of home and personal care, health care
and foods. This division is being effected in 100 key markets, which have been
identified as high growth business market. This restructuring is aimed at
creating focus groups within the company’s sales force and sales personnel
with the company’s stockiest, to enable them to sale products more efficiently
an effectively.
Wholesale sale trade plays a crucial role in ensuring that Dabur brands reach
the most inaccessible terrain in a highly cost effective manner during the
year, the activation programme for wholesale trade was extended to 350
towns covering almost 30% of the CCD business during the year, resulting in
increased brand availability across market.
Dabur is synonymous with nature care for more than hundred years. Two, is
its products portfolio, with products that are always in high demand. Dabur's
third strength is its distribution system that helps its products reach 47
stocking points, 10,000 stockiest and 1.2 million retailers.
DABUR is India is renowned FMCG company that has grown into the largest in
personal & health care products, with its niche interest in Ayurvedic medicines
that has not only covered Indian market but also is being exported to almost
50 countries around the globe. The consumer care division and Consumer
health division are the two major strategic business units along with its three
subsidiary groups known as Dabur International, Dabur Foods and Dabur
Nepal that contributes to the company is overall performance in the FMCG
market. In 2007 -2008, company generated the revenue of $2 billion, racing
towards achieving its position in being the top ten companies in India. Being
the pioneer in the FMCG market, Dabu r is known to have its strengths in
terms of revenue, ownership, customer focus, quality management, passion
and encouragement on team building and individual excellence. Dabur has got
its established business valu es, which are based on the guiding principles of
its founder , Dr SK Burman, who always believed in the meaningfulness of
living by comforting others. This force the company to follow ethical business
practices in its percolated down to its functioning and operations. The
geniuses lies within its punch line ³dedicated to the health and wellbeing of
every household´. The company basis its niche excellence in sourcing out raw
materials from nature that also acts as an inspiration and its commitment to
produce maintaining the ecological balance (Dabur, 2010).
Dabur India Limited is the fourth largest Company in India with interests in
Health Care, Personal Care and Food Products. It is most famous for Dabur
Chyawanprash, Hajmola, Glucose-D, Vatika. Dabur had a turnover of
approximately Rs. 19 billion (approx. US$ 420 million) during the fiscal year
2005-2006, with brands like Dabur Amla, Dabur Chyawanprash, Vatika,
Hajmola & Real. The company’s growth rate rose from 10% to 40%. The
expected growth rate for two years was two-fold. Dabur operates in more
than 5 countries and distributes its products worldwide. The company was
founded by Dr. S. K. Burman in 1884 as a small pharmacy in Calcutta (now
Kolkata), West Bengal, India. The company headquarters are in Ghaziabad,
Uttar Pradesh, India, near the Indian capital of New Delhi, where it is
registered. Dabur’s manufacturing operations are in India, Africa and the
United Arab Emirates.
The company, through Dabur Pharma Ltd. does toxicology tests and markets
ayurvedic medicines in a scientific manner. They have researched new
medicines which will find use in O.T. all over the country therein opening a
new market.
Brand Rejuvenation
With youth forming a major population of India, Dabur decided to revamp its
brand identity. Dabur associated itself with Juhi Chawla, Amitabh Bachchan,
Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New
packaging and advertising campaign saw the sales of Chyawanprash grow by
8.5 per cent in 2003-04.
The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan
tree was replaced with a new, fresh Banyan tree.
The logo was changed to a tree with a younger look. The leaves suggesting
growth, energy and rejuvenation, twin colors reflecting perfect combination of
stability and freshness, the trunk represented three people raising their hands
in joy, the broad trunk symbolized stability, multiple branches were chosen to
convey growth, and warmth and energy were displayed through the soft
orange color. ‘Celebrating Life’ was chosen as a new tag that completely
summarized the whole essence.
The Chairman in his annual report message said, “If I were to summarize your
Company’s performance during the year under review (2004-2005), it would
be ‘Pursuit of Profitable Growth’”.
Question No. 2. What sector the company belongs to?
Answer:
During this passage of time, Dabur went through several structural and
strategic changes to maintain its market strength. The real mass production
started in 1896. Early 1900’s saw Dabur emerge as the first company to
provide health care through scientifically tested methods. It achieved
significant improvements after setting up Research and Development centers
and manufacturing automation. The launch of Dabur’s Amla hairoil and
Chyawanprash was a boon to the expanding business. To keep up with the
times, Dabur computerized its operations in 1957. Its Dant Manjan and
digestive tablets were widely accepted as well.
However with a large product portfolio in the market, Dabur had to maintain
operational efficiency. To make sure it adjusted to the business environment it
became a public limited company in 1986 followed by diversification in Spain
in 1992. A major change came when Dabur came up with its IPO in 1994.
Because of its position, Dabur’s issue was 21 times oversubscribed. Dabur
further divided its business into three separate groups:
In 1998, for the first time in the history of Dabur, a non-family member took
charge. Dabur handed over the operations to professionals. Successful
implementation of procedures, timely changes and maintaining its essence,
Dabur achieved its highest-ever sales figure of Rs 1166.5 crore in 2000-01.
As FMCG sector was struggling with the slow growth in the Indian economy,
Dabur decided to take numerous strategic initiatives, reorganize operations
and improvise on its brand architecture beginning 2002. It decided to
concentrate its marketing efforts on Dabur, Vatika, Anmol, Real and Hajmola
to strengthen their brand equity, create differentiation and emerge as a pure
FMCG player recognized as a herbal brand. This was chosen after a study with
Accenture, which revealed that Dabur was mainly perceived as a Herbal brand
and connected more with the age group above 35.
Also, larger retailers were making their foray into the FMCG market. Apart
from HLL, P&G, Marico and Himalya, ITC was also posing a challenge. The
supply chain of Dabur was becoming complex because of the large array of
products. Southern markets share in the sales figure was negligible. These
factors posed a threat to Dabur and hence small changes were not enough.
Given below is the product portfolio of Dabur (Consumer Care Division 2006):
Product Products
Category
Hairoil Vatika, Amla, Sarso, (Anmol coconut)
Shampoo Vatika heena conditioning, root-strengthening, Anmol-
natural shine, silky
Baby & Skin Care Vatika fairness, Gulabari, Vatika fairness face pack
Janmaghutti, Olive oil, Gripewater, Dabur lal tel
Digestive Hajmola range, Hingoli, Pudin hara
Health, Chyawanprash, chyawanshakti, Dabur Honey, Glucose
Supplements
Oral Care Babool (rural market), Meswak (unani method), promise,
Lal paste, Binaca, Promise
Home Care Odomos, Odonil, Odopic, Sanifresh
Answer:
Dabur is one of the leading Indian companies; bagging the fourth position in
FMCG industry with its turnover of $ 2 billion (2008-2009), has attained
significance in consumer’s segments of health, personal, home care and food
products. The products are expanded to major 50 countries worldwide,
through its wholly owned subsidiary. Over the years, the company has built
up its str ong brand equity in the retail market and its strengths lies in the
strong employee management, innovative product portfolio and reward
acquisitions and its corporate social responsibility. The company is striving
towards achieving the number one position in FMCG industry, strengthening
the competitive advantage and retaining its relationship with its stakeholders.
D A B U R , A Compan y Prospective
DABUR is India is renowned FMCG company that has grown into the largest in
personal & health care products, with its niche interest in Ayurvedic medicines
that has not only covered Indian market but also is being exported to almost
50 countries around the globe.
The consumer care division and Consumer health division are the two major
strategic business units along with its three subsidiary groups known as Dabur
International, Dabur Foods and Dabur Nepal that contributes to the company
is overall performance in the FMCG market. In 2007 -2008, company
generated the revenue of $2 billion, racing towards achieving its position in
being the top ten companies in India. Being the pioneer in the FMCG market,
Dabu r is known to have its strengths in terms of revenue, ownership,
customer focus, quality management, passion and encouragement on team
building and individual excellence. Dabur has got its established business valu
es, which are based on the guiding principles of its founder , Dr SK Burman,
who always believed in the meaningfulness of living by comforting others. This
force the company to follow ethical business practices in its percolated down
to its functioning and operations. The geniuses lies within its punch line
³dedicated to the health and wellbeing of every household´. The company
basis its niche excellence in sourcing out raw materials from nature that also
acts as an inspiration and its commitment to produce maintaining the
ecological balance (Dabur, 2010).
Consumer focus:
The short term revenues are generated through focusing on short term
projects that would just gather short term revenues and long term activities
are ignored( such as building human potential and knowledge), though
Dabur,has built relationship with consumers but they are required to design
proactive solutions to align to long term objectives of consumer.
Selecting on innovative product:
Focus on Specialization:
The multiple groups and projects have caused replication of many common
avoidable tasks because knowledge sharing at Dabur is very limited to the
immediate group, whereas there should a formal system that would
encourage people to share the µbest practices through increased interaction
and intergroup coordination.
Concepts of Intervention:
However, Dabur in regard to its operational paradigm is coping with its little
area of concerns at this point of time. Following are the targets of the
organization to be achieved through organizational development :
The short term revenues are generated through focusing on short term
projects that would just gather short term revenues and long term activities
are ignored( such as building human potential and knowledge), though Dabur,
has built relationship with consumers but they are required to design
proactive solutions to align to long term objectives of consumer.
Focus on Specialization:
Answer:
Marketing professionals and specialist use many tactics to attract and retain
their customers. These activities comprise of different concepts, the most
important one being the marketing mix. There are two concepts for marketing
mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps of the marketing
mix. The concept of 4Ps has been long used for the product industry while the
latter has emerged as a successful proposition for the services industry.
Price - Pricing must be competitive and must entail profit. The pricing strategy
can comprise discounts, offers and the like.
Place - It refers to the place where the customers can buy the product and
how the product reaches out to that place. This is done through different
channels, like Internet, wholesalers and retailers.
Answer:
The following SWOT analysis looks at dabur india which is operating in fmcg
industry. The analysis shows dabur india's Strengths, Weaknesses,
Opportunities and Threats. The SWOT analysis will give you a clear picture of
the business environment dabur india is operating in at the present time.
Strengths:
Having alliances with other strong and popular businesses is a major plus
point for dabur India as it helps bring in new customers and make business
more effective.
Being a market leader, as dabur india is, is key to their success as it boosts
reputation, profit and market share.
Riding high in the niche market in fmcg industry has helped boost dabur india
and raised reputation and turnover.
Keeping costs lower than their competitors and keeping the cost advantages
helps dabur india pass on some of the benefits to consumers.
Experienced employees are key to the success of dabur india helping to drive
them forward with expertise and knowledge.
High quality machinery, staff, offices and equipment ensure the job is done to
the utmost standard, and is a strength of dabur india.
dabur india’s reputation is strong and popular, meaning people view it with
respect and believe in it.
Being financially strong helps dabur india deal with any problems, ride any dip
in profits and out perform their rivals.
dabur india has a high percentage of the market share, meaning it is ahead of
many competitors.
dabur india’s distribution chain can be listed as one of their strengths and
links to success.
Development and innovation are high at dabur india with regard to their
products/services, which is a sure strength in its overall performance.
dabur india’s position in the market is high and strong – a major strength in
this industry as they are ahead of many rivals.
Having little competition, being one of very few companies providing this
service/product is a major factor in dabur india’s performance.
The online presence of dabur india is strong, meaning it is ahead of many
competitors.
The lucrative location of dabur india adds to its strengths due to its
accessibility (road, rail, air etc).
Supplier relationships are strong at dabur india, which can only be seen as
strength in their overall performance.
Weaknesses:
A serious weakness for dabur india is the fact their products/services are of
low quality, meaning people will have better-quality substitutes.
Not reducing costs in the same way as their competitors\' means dabur india
is outlaying more of their profits. Having higher costs than competitors is a
major weakness.
dabur india’s R&D work is low and insignificant, which is a major weakness in
fmcg asit is constantly creating new products.
The lack of staff experience is a major downfall for dabur india as it could lead
to mistakes or negligence.
Old and outdated technologies hold dabur india back and limits success, as
other firms are making use of better and more reliable technologies.
Over pricing, setting too high prices for dabur india products/services makes
them uncompetitive, which is a major weakness.
The lack of business alliances is a major weakness for dabur india, as they will
struggle to get deals, favours and partnerships.
dabur india is in a poor financial position which makes it weaker than its
competitors.
Good companies need loyal employees, but dabur india has a poor
relationship with staff which affects performance.
dabur india does not function internationally, which has an effect on success,
as they do not reach consumers in overseas markets.
Problems with stock are a weakness for dabur india as they need to keep up
with demand.
Online presence is vital for success these days, and lack of one is a limitation
for dabur india.
The weak brand name compromises success for dabur india as it doesn\'t
inspire people to buy their products/services.
A limited customer base is a major weakness for dabur india as it means they
have less people to sell or market to.
Opportunities:
Opportunities are external changes, trends or needs that could enhance the
business or organisation’s strategic position, or which could be of a benefit to
them. This section will outline opportunities that dabur india is currently
facing.
dabur india could benefit from Governmental support, in the form of grants,
allowances, training etc.
dabur india could benefit from expanding their online presence and making
more money from online shoppers/internet users.
The changes in the way consumers spend and what they buy provides a big
opportunity for dabur india to explore.
The growth of the fmcg industry is an opportunity for dabur india to grasp.
dabur india has the opportunity to enter a niche market, gain leading position
and therefore boost financial performance.
Reaching out into other markets is a possibility for dabur india, and a big
opportunity.
Expanding the product/service lines by dabur india could help them raise sales
and increase their product portfolio.
Reduction in interest rates could benefit dabur india as business costs would
come down.
Forming strategic alliances and joint ventures is an opportunity for dabur india
to maximise profit and gain new business.
dabur india has a number of highly skilled staff, which is an opportunity for
them to explore as expertise of their staff can help dabur india to bring the
business forward.
Structural changes in the industry opens other doors and opportunities for
dabur india.
Threats:
Threats are factors which may restrict, damage or put areas of the business or
organisation at risk. They are factors which are outside of the company's
control. Being aware of the threats and
being able to prepare for them makes this section valuable when considering
contingency plans and strategies. This section will outline main threats dabur
india is currently facing.
Consumer lifestyle changes could lead to less of a demand for dabur india
products/services.
Changes in the way consumers shop and spend and other changing consumer
patterns could be a threat to dabur india\'s performance.
Slow growth and decline of the fmcg market is a threat to dabur india.
Extra competition and new competitors entering the market could unsteady
dabur india and be a threat.
The actions of a competitor could be a major threat against dabur india, for
instance, if they bring in new technology or increase their workforce to meet
demand.
Price wars between competitors, price cuts and so on could damage profits for
dabur india.