the dabur
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Executive Summary
This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur. Pioneering role that it has played in
the evolution of the categories it has had a presence in. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent.
In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement.
This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyse the marketing mix of
Dabur Chyawanprash. The report also enlists various recommendations based on BCG Growth
Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis
etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles.
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DABUR INDIA LTD.
INTRODUCTION TO DABUR –
“Dabur is derived from the word ‘Da’ for ‘Daktar’ or ‘Doctor’ and ‘bur’
from Burman.”
Dabur India Ltd is one of India’s leading FMCG Companies
with Revenues of about US$750 Million (over Rs 3416 Crore) & Market
Capitalization of over US$3.5 Billion (over Rs 16,000 Crore). Building on a
legacy of quality and experience of over 125 years, Dabur is today India’s most
trusted name and the world’s largest Ayurvedic and Natural Health Care
Company.
Dabur India is also a world leader in Ayurveda with a portfolio of over
250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five
flagship brands with distinct brand identities -- Dabur as the master brand for
natural healthcare products, Vatika for premium personal care, Hajmola for
digestives, Real for fruit juices and beverages and Fem for fairness bleaches and
skin care products.
Dabur today operates in key consumer products categories like Hair Care,
Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a
wide distribution network, covering over 2.8 million retail outlets with a high
penetration in both urban and rural markets.
Dabur's products also have a huge presence in the overseas markets and
are today available in over 60 countries across the globe. Its brands are highly
popular in the Middle East, SAARC countries, Africa, US, Europe and
Russia. Dabur's overseas revenues stand at over Rs 500 Crore in the 2008-09
fiscal, accounting for about 20% of the total turnover.
The 125-year-old company, promoted by the Burman family, had started
operations in 1884 as an Ayurvedic medicines company. From its humble
beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way today
to become one of the biggest Indian-owned consumer goods companies with the
largest herbal and natural product portfolio in the world. Overall, Dabur has
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successfully transformed itself from being a family-run business to become a
professionally managed enterprise . What sets Dabur apart from the crowd is its
ability to change ahead of others and to always set new standards in corporate
governance & innovation.
COMPANY PROFILE -
Type -Public (NSE, BSE)
Founded –1884
Headquarters –Ghaziabad
Key people -V. C. Burman
Business -Dabur’s product range encompasses health care, personal care,
ayurvedic specialties and food segments.
Brands -Well-known brands include Amla, Chyawanprash, Hajmola, Lal
Dantmanjan, Nature Care and Pudin Hara.
Location- Dabur has been marketing its products in more than 50 countries all
over the world. The company has offices and representatives in Europe, America
and Africa. Manufacturing facilities are spread across three overseas locations.
Revenue –Turnover of approx Rs 3417,1 Crore (FY-2010) & Market
Capitalization of Rs. 15500 Crore.
Official Website -www.dabur.com
Dabur over the Years:
More than a century ago, a young doctor started with a vision to Provide
innovative and affordable health care products to Indian masses. Thus, was born
an organization today known as Dabur India Limited. The twelve hundred
crores corporate today started with a small dispensary at Calcutta, the noble
thoughts of Dr.S.K.Burman being the main source of inspiration behind the
project. From that humble beginning, the company has grown into India’s leading
manufacturer of consumer health care, personal care and food products. This
phenomenal progress has seen many milestones, some of which are mentioned
below:
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1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India
Limited. Started from a small shop at Calcutta, he began a direct mailing system
to send his medicines to even the smallest of villages in Bengal. The brand name
Dabur is derived from the words "DA" for
Daktar or doctor and "BUR" from Burman.
1896: As the demand for Dabur products grows, Dr. Burman felt the need for
mass production for some of his medicines. He set up a small manufacturing plant
at Garhai near Calcutta.
Early 1900s: The next generations of Burman’s take a conscious
decision to enter the Ayurvedic medicines market, as they believe that it is only
through ayurveda that the healthcare needs of poor Indians can be met.
1919: The search for processes to suit mass production of Ayurvedic medicines
without compromising on basic ayurvedic principles lead to the setting up of the
first Research and Development laboratory at Dabur. This initiate a pain staking
study of ayurvedic medicines as mentioned in age old scriptures, their
manufacturing processes and how to utilize modern equipment to manufacture
these medicines without reducing the efficacy to manufacture these medicines
without reducing the efficacy of these drugs.
1920s: A-manufacturing facility for Ayurvedic Medicines is set up at
Narendrapur and Daburgram. Dabur expands its distribution network to Bihar and
northeast.
1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.
1940: Dabur diversifiers into personal care products with the launch of its Dabur
Amla Hair Oil. This perfumed hair oil catches the imagination of the common
man and film stars alike and becomes the largest hair oil brand in India.
1949: Dabur Chyawanprash is launched in a tin pack and becomes the first
branded Chyawanprash of India.
1956: Dabur buys its first computer. Accounts and stock keeping are one of the
first operations to be computerized.
1970: Dabur expands its personal care portfolio by adding oral care products.
Dabur Lal Dant Manjan is launched and captures the Indian rural market.
1972: Dabur shifts base to Delhi from Calcutta. Starts production
From a hired manufacturing facility at Faridabad.
1978: Dabur launches the Hajmola tablets. This is the first time that a classical
Ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.
1979: The Dabur Research Foundation (DRF), an independent
Company is set up to spearhead Dabur's multi- faceted research.
Commercial production starts at Sahibabad. This is one of the largest and most
modern production facilities for Ayurvedic medicines in India at this time.
1984: The Dabur brand turns 100 but is still young enough to
Experiment with new offerings in the market.
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1986: Dabur becomes a public Limited company through reverse
merger with Vidogum Limited, and is re-christened Dabur India
Limited.
1989: Hajmola Candy is launched and captures the imagination of
Children and establishes a large market share.
1992: Dabur enters into a joint venture with Agrolimen of Spain far
manufacturing and marketing confectionery items such as bubble gums in India.
1993: Dabur set up the oncology formulation plant at Baddi,
Himachal Pradesh.
1994: Dabur India Limited comes out with its first public issued at a premium of
Rs.85 per share. The issue is subscribed over 21 times.
1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this
product. The Dabur Research Foundation develops the unique eco-friendly
process of extracting the drug from the leaves of the Asian Yew Tree.
1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain
of France for cheese other dairy products.
1996: Dabur launches Real fruit juices, which heralds the company's entry into
the processed food market.
1997: The foods division is created, compromising of real fruit juices and
Homemade cooking paste to form the core of this division's product portfolio.
1998: Project STARS (Strive to Achieve Record Successes) is Initiated by the
company to achieve accelerated growth in the coming years. The scope of this
project is strategic, structural and operational changes to enables efficiencies and
improves growth rates.
1998: The Burman family hands over the reins of the company to a professional,
Mr. Ninu Khanna joins Dabur, as the Chief Executive Officer.
1999-2000: Dabur achieves the Rs.1000 crores turnover mark.
2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava,
apple active, orange active, homemade pappad, Vatika- an- anti-dandruff
shampoo.
2002: New launches homemade coconut milk (in south), Tang,
Tomato puree, Vatika light.
2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per
cent. Turnover of FMCG reaches to Rs l048.5 crores, which shows a profit of Rs.
72 crores. Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of
Rs.13 crores.
2005: Dabur Acquires Balsara in Rs -143 crore in all-cash deal.
Dabur Announces Bonus after 12years.
2007: Dabur Crosses $2 Bil of market capitalalization
2008: Acquires Fem care Pharma a leading player in the women’s skin care
market.
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Awards and Achievements-
1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes
2. Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods space in India
3. Dabur ranked among Top 10 Best Companies to Work For in the Consumer Goods
and Durables sector
4. Dabur ranked 45 among Most Trusted Brands In India, according to Brand Trust
Report, India Study, 2011
5. The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100 Richest Indians' list
6. Dabur listed among the enterprises that are
'Doing India Proud' in Limca Book of Records 2010
7. Dabur ranked 200 in the Fortune India 500 list That ranks India's 500 largest corporations
8. Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company
9. Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace bag international Promotion Marketing Award of Asia 2010
Dabur (Company History) –
Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he
prepared Ayurvedic medicines to treat diseases like malaria, plague and cholera
that had no cure during that period. It was his dedication, commitment and
empathy that made Dabur a renowned name among the masses. And today, after
more than 120 years, Dabur is known for its trustworthiness more than anything
else.
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
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after setting up Research and Development centers and manufacturing
automation. The launch of Dabur’s Amla hair oil and Chyawanprash was a boon
to the expanding business. To keep up with the times, Dabur computerized its
operations in 1957. It’s 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:
Health Care Products Division
Family Products Division
Dabur Ayurvedic Specialties Limited
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.
MANAGEMENT & OWNERSHIP STRUCTURE Board of Directors
Dabur has an illustrious Board of Directors who are committed to take the
company onto newer levels of human endeavour in the service of mankind. The
Board comprises of:
Chairman
Dr. Anand Burman
Vice-Chairman
Mr. Amit Burman
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Whole Time Directors
Mr. P.D. Narang, Mr. Sunil Duggal, Mr.Pradeep Burman
Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
Maharaja Gaj Singh Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan
The C.E.O
Sunil Duggal
(Chief Executive Officer)
Dabur India Limited
PRODUCTS
LOCATIONS OF OPERATIONS
ALL UNITS OF PRODUCTION
ALL JOINT VENTURE PRODUCTS
SUBSIDIARIES
ALL DABUR PRODUCTS
LOCATION OF OPERATIONS –
Head office: Sahibabad, Ghaziabad (U.P.)
Regd. Office: Asaf Ali Road, New Delhi
Corporate office: Kaushambi, Ghaziabad (U.P.)
Sales & Marketing: New Delhi
OFFICES: Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna
(Bihar), Ahmadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hyderabad (A.P.), Chennai (TamilNadu), Bangalore (Kamatka),
Kochi (Kerela), Guwahati (Assam), Kathmandu (Nepal), Russia, U.K.
FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani
& Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.
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C&Fa:
Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad
(U.P.), Dehradun (U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati
(Assam), Calcutta(West Bengal), Jaipur (Rajasthan), Ahmadabad (Gujarat),
lndore (M.P.) Raipur(M.P.), Bhubaneswar (Orissa), Cuttak (Orissa), Mumbai
(Maharashtra), Hyderabad (A.P.), Chennai (TamilNadu), Bangalore (Karnataka),
Cochin (Kerela).
MANUACTURING UNITS OF DABUR:
Dabur India Limited has 12 manufacturing plants in India,
Nepal and Egypt.
Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The Key
product line of this unit includes Asavs, Hajmola, Hingoli, Oncology medicines,
Dabur Amla hair oil, Chyawanprash and Ashokarisht. The unit operated on
these shifts as well as a general shift, with product lines running for one, two or
three shifts according to the market demand and supply chain requirell1ents.
Sahibabad unit 2: Recently established for manufacturing and packing Dabur
hair oil in Pet Bottles.
Baddi unit 1: The most modern plant for manufacturing ayurvedic
Medicines and honey, this unit was built following stringent guideline for
pharmaceutical units.
Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur
Chyawanprash, this unit also boasts of the most modern processing and
packaging unit for the medicated oil Asavrishthas.
Baddi Injectibles: This unit manufactures Oncologicals, and is certified by
OGYI of Hungary and South Africa.
Alwar: This unit manufactures food and print grade Natural gums,
Psyllium Husk and Ayurvedic Veterinary products.
Narendrapur: One of Dabur oldest plant. It produces Ayurvedic
medicines and Honey.
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Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to
manufacture oncology bulk drugs of critical importance.
Katni: Set up in the heart of Amla producing belt of India. This unit
manufactures Amla pishi, an essential ingredient in Dabur Chyawanprash.
Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most
important besides Sahibabad and Baddi. This modern manufacturing unit churns
out Ayurvedic Medicines, Oral Care and Hair Care Products, Honey and
Fruit Juices. It also has the facility to process leaves of the Asian Yew Tree to
extract Paclitaxel, an important part of all anti-cancer products.
Egypt: This part was established to serve Saudi Arabia and the fast growing
African market. It manufactures Hair and Skin Care and Food products.
CORPORATE STRETEGY:
JOINT VENTURES:
Dabur International Limited:
Dabur has also collaborated with Bongrain of France for the manufacture and
marketing of speciality cheese and other Dairy Products. This joint venture
company has already made its presence felt in the Indian cheese market through
the launch of processed cheese under the brand name Lebon, and a specialty
cheese under the brand name Delicieux.
SUBSIDIARIES:
Dabur has six subsidiary units, which come under the umbrella of the Dabur
India Organisation. These are:
Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur
India Limited, is spearheading Dabur's foray into food processing industry. The
company, set up in April 1999,is marketing a range of fruits juices under the
brand name Real, Homemade Cooking Paste and Sauces and Lemoneez -- lemon
juice. Dabur was the first company in India to introduce fruit juices in packaged
form without any artificial additive. Real is today the market leader in this
category with more than 50 per cent market share. Homemade cooking paste is
the only national brand in this category. Lemoneez is the only product in its
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category available in unique drop and trickle pack and uniquely shaped tabletop
pack.
Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base
overseas for Dabur group. The company is today the leading exporter of Nepal
and the third largest and most modern manufacturing base for Dabur. Dabur
Nepal is today involved in promoting cultivation of herbs and apiculture activities
inNepal. The Company has set up state of the art greenhouse at Banepa for
developing sampling for 20 medicinal plants. Dabur Nepal has also set up an
Apiculture center for promoting bee-keeping activity in Nepal and developing
queen bee colonies for exports.
Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This
manufacturing base set up a couple of years back to cater to the demands of
Middle East and African market is producing Hair Care, Skin Care Products and
foods.
Dabur oncology Place: Set up recently in UK, this subsidiary of Dabur India
Limited will be manufacturing anti-cancer formulations for European market. The
company is in the process of setting up manufacturing base near London and is
expected to start operation from year 2001.
Dabur Research Foundation (DRF): Incorporated in 1979, is a
Premier research organisation recognized by Department of Scientific and
Industrial Research, Government of India. It is situated at Sahibabad, Ghaziabad,
Uttar Pradesh. DRF today is known for its path breaking research in the field of
health care and personal care. The foundation is on the forefront of oncology
research and is in the process of developing many new molecules to fight with a
dreaded disease like Cancer. In fact DRF was the first organisation in the world to
develop a process for extraction of Paclitaxel, a drug, for cancer without harming
its source tree. This process has now become a universal one. Herbal health care
is an area where Dabur Research Foundation has made immense contribution by
doing research and development work using modern pharmaceutical protocols.
PRODUCTS – Given below is the product portfolio of Dabur (Consumer Care
Division 2010):
HAIR CARE
Hair oil –
Dabur Amla,
Dabur Amla Flower magic,
Dabur Vatika coconut,
Vatika Almond.
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Dabur Anmol
Shampoo –
Smooth & Silky,
Root Strengthening and Black Shine shampoo,
Vatika Dandruff Control,
Dabur Total Protect.
Conditioner –
Vatika Smooth & Silky Conditioner,
Vatika Root Strengthening Conditioner
ORAL CARE –
Dabur RED Paste,
Meswak,
Promise,
Babool Mint Fresh,
Babool
Dabur Lal Dant Manjan
HEALTH SUPPLEMENTS –
Dabur Chyawanprash
Dabur ChyawanPrakash -Orange an Mango flavors available
Dabur Chyawan Junior. (Chocolate-flavored)
Dabur Honey, the purest branded Honey.
Dabur Glucose
DIGESTIVE –
Hajmola
(Keep your digestion toned up with Dabur's range of Digestives tablets and
candies.)
SKIN CARE –
Gulabari
Gulabari Rose water
Gulabari Face Freshener
Gulabari Moisturising Cream
Gulabari Moisturising Lotion
Uveda Range
Fairness Cream
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Moisturising Face wash
Clarifying Face wash
2 in 1 Moisturiser
FEM
Fem Pink Bleach
Fem Blue Bleach
Fem Gold Bleach
Fem Herbal Bleach
OXY Bleach
SAKA Bleach for men
Fem Hair Removing Cream
Fem Liquid Hand Wash
FOOD PRODUCTS –
Real Active Juice
Real Juice (12 delicious variant)
Real Burrst
Hommade
Lemoneez
Capsico Red Pepper Sauce
HOME CARE –
Surface Cleaner
Dazzil
SaniFresh
Odomos (Mosquito Repellent)
Odomos Cream
Odomos Lotion
Air Care
Odonil Room Freshener
Odonil Block
Dish wash
Odopic Dish wash
Odopic Dish washing powder
Consumer Health - Ethical –
Stresscom
Antistress immune modulator
Trifgol Isabgol based natural fibre laxative.
Broncorid
Madhuvaani
For the management of stable asthma and breathlessness.
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Lipistat Hypolipidaemic and Cardioprotective.
Rheumatil gel
Rheumatil oil Quickly absorbed and relieves joint pain
Mensta Complete Control 30 days a month
.
CONSUMER HEALTH - OTC –
Gastro-Intestinal
Dabur Pudin Hara
Cough & Cold
Dabur's Honitus Cough Syrup
Rejuvenation
Shilajit
Women’s Health
Dabur Active Blood Purifier
Memory Enchancer
Dabur Shankha Pushpi
Medicated Oils
Dabur Badam Oil
Baby Care
Dabur Lal Tail
Dabur Janma Ghunti
Dabur Gripe Water
Rubs & Balms
Dabur Balm Strong
Dabur Balm Double Action
PRICE Price is normally expressed in monetary terms. It is worth of a product or service
in monetary terms. Price is the value which a buyer passes on to the seller in lieu
of the product or service provided. Price is a crucial determinant of the fact
whether the exchange between the buyer and seller should materialize or not.
While pricing the products three main factors should be kept in mind -:
1. Cost
2. Competition
3. consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend
and marketing. The entire product portfolio is also tweaked to include premium
offerings such as more variants under almost every category, like Dabur Vatika
Hair Oil is available in 3 different versions.
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Dabur is today seen as far more proactive in the market. Dabur is now an external
oriented company. Across the whole organization the company have one
definition of winning, and that means not just growing, but growing completely.
Over the last two years, Dabur has maintained its operating margins through
judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below :
I.COST
One of the most important factor to take care while pricing is the cost costs set the
floor for pricing decisions. There are two types of cost variable cost and fixed
cost. It is important that the price should recover all costs including a fair return
for undertaking the marketing effort and risk.
II.COMPETITION Competition is another important consideration while pricing. When a firm does
not face any competition it can enjoy complete freedom in fixing its price. But
when there are competitors selling the same or similar products, the pricing
freedom is considerably reduced. Its price must fall in line with the competitors.
Similarly Dabur India Limited also has many competitors. But Dabur’s top
selected competitors are:-
1. Hindustan Unilever Limited
2. Proctor and Gamble
3. Pepsi co.
4. Colgate Palmolive
5. Godrej Industries
6. Marico Ltd. etc.
III.CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the
Indianised natural and herbal products thus they made it their USP. Dabur is
efficiently leading the market with this product range, providing the customers
with special products easily.
AIMS AND OBJECTIVES
To understand the demand pattern of Dabur products in the market. To know the amount of household income spent on the consumption of FMCG
products of Dabur. To understand the image of the products in the eyes of the consumers. To analysis market petition strategy of Dabur in the market.
To study the present marketing strategy of “Dabur India Limited”. To study the effectiveness of marketing strategy Of “Dabur India Limited”.
To know about the portfolio of “Dabur India Limited”.
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FUNCTIONAL STRATEGIES:
MARKETING STRATERY
Marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase sales and
achieve a sustainable competitive advantage. Marketing strategy consists of the analysis, strategy development, and
implementation activities in: “Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and
developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each
market target”. Strategic marketing is a market-driven process of strategy development,
taking into account a constantly changing business environment and the need to
deliver superior customer value. The focus of strategic marketing is on organizational performance rather than a primary concern about increasing sales.
Marketing strategy seeks to deliver superior customer value by combining the customer-influencing strategies of the business into a coordinated set of market-driven actions. Strategic marketing links the organization with the environment
and views marketing as a responsibility of the entire business rather than a specialized function.
Because of marketing’s boundary orientation between the organization and its customers, channel members, and competition, marketing processes are central to the business strategy planning process. Strategic marketing provides the
expertise for environmental monitoring, for deciding what customer groups to serve, for guiding product specifications, and for choosing which competitors to
position against. Successfully integrating cross-functional strategies is critical to providing superior customer value. Customer value requirements must be transformed into product design and production guidelines. Success in achieving
high-quality goods and services require finding out which attributes of goods and service quality drive customer value.
Marketing Strategy Process
The marketing strategy analysis, planning, implementation and management process is described below. The strategic situation analysis considers
market and competitor analysis, market segmentation, and continuous learning about markets. Designing marketing strategy examines customer targeting and positioning strategies, marketing relationship strategies and planning for new
products. Marketing program development consists of product, distribution, price, and promotion strategies designed and implemented to meet the value
requirements of targeted buyers. Strategy implementation and management
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consider organizational design and marketing strategy implementation and control.
Stage 1: Strategic Situation Analysis Marketing management uses the information provided by the situation
analysis to guide the design of a new strategy or change an existing strategy. The situation analysis is conducted on a regular basis after the strategy is under way to
evaluate strategy performance and identify needed strategy changes.
Market Vision, Structure, and Analysis
Markets need to be defined so that buyers and competition can be
analyzed. For a market to exist there must be (1) people with particular needs and wants and one or more products that can satisfy buyers’ needs, and (2) buyers willing and able to purchase a product that satisfies their needs and wants. A
product-market consists of a specific product (or line of related products) that can satisfy a set of needs and wants for the people (or organizations) willing and able
to purchase it. The term product is used to indicate either a physical good or an intangible service.
Analyzing product-markets and forecasting how they will change in the
future are vital to business and marketing planning. Decisions to enter new product-markets, how to serve existing product-markets, and when to exist in
unattractive product-markets are critical strategic choices. The objective is to identify and describe the buyers, understand their preferences for products, estimate the size and rate of growth of the market, and find out what companies
and products are competing in the market. Evaluation of competitors’ strategies, strengths, limitations and plans is
also a key aspect of the situation analysis. It is important to identify both existing and potential competitors. Competitor analysis includes evaluating each key competitor. The analyses highlight the competition’s important strengths and
weaknesses. A key issue is trying to figure out what each competitor is likely to do in future.
Segmenting Markets
Market segmentation looks at the nature and extent of diversity of buyers’ needs and wants in a market. It offers an opportunity for an organization to focus
in business capabilities on the requirements of one or more groups of buyers. The objective of segmentation is to examine differences in needs and wants and to identify the segments (sub-groups) within the product-market of interest. Each
segment contains buyers with similar needs and wants for the product category of interest to management. The segments are described using the various
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characteristics of people, the reasons that they buy or use certain products, and their preferences for certain brands of products. Likewise, segments of industrial
product-markets may be formed according to the type of industry, the uses for the product, frequency of product purchase, and various other factors.
Continuous Learning about Markets
One of the major realities of achieving business success today is the necessity of understanding markets and competition. Sensing what is happening
and is likely to occur in the future is complicated by competitive threats that may exist beyond traditional industry boundaries. For example, CD-ROMs compete
with books.
Stage 2: Designing Market-Driven Strategies
The strategic situation analysis phase of the marketing strategy process
identifies market opportunities, defines market segments, evaluates competition, and assesses the organization’s strengths and weaknesses. Market sensing information plays a key role in designing marketing strategy, which includes
market targeting and positioning strategies, building marketing relationships, and developing and introducing new products.
Market Targeting and Strategic Positioning
Marketing advantage is influenced by several situational factors including industry characteristics, type of firm (e.g., size), extent of differentiation in
buyers’ needs, and the specific competitive advantage(s) of the company designing the marketing strategy. The core issue is deciding how, when, and
where to compete, given a firm’s market and competitive environment. The purpose of the marketing targeting strategy is to select the people
(or organizations) that management wishes to serve in the product-market. When
buyers’ needs and wants vary, the market target is usually one or more segments of the product-market. Once the segments are identified and their relative
importance to the firm determined, the targeting strategy is selected. The objective is to find the best match between the value requirements of each segment and the organization’s distinctive capabilities. The targeting decision is
the focal point of marketing strategy since targeting guides the setting of objectives and developing a positioning strategy. The options range from
targeting most of the segments to targeting one or few segments in a product-market. The targeting strategy may be influenced by the market’s maturity , the diversity of buyers’ needs and preferences, the firm’s size compared to
competition, corporate resources and priorities, and the volume of sales required to achieve favorable financial results. Deciding the objectives for each market
target spells out the results expected by management. Examples of market target objectives are desired levels of sales, market share, customer retention, profit
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contribution, and customer satisfaction. Marketing objectives may also be set for the entire business unit and for specific marketing activities such as advertising.
The marketing program positioning strategy is the combination of product, value-chain, price, and promotion strategies a firm uses to position itself
against its key competitors in meeting the needs and wants of the market target, the strategies and tactics used to gain a favorable position are called the marketing mix or the marketing program.
Marketing Relationship Strategies
Marketing relationship partners may include end user customers, marketing channel members, suppliers, competitor alliances, and internal teams.
The driving force underlying these relationships is that a company may enhance its ability to satisfy customers and cope with a rapidly changing business
environment through collaboration of the parties involved. Relationship strategies
gained new importance in the last decade as customers became more demanding and competition became more intense. Building long-term relationships with
customers and value-chain partners offers companies a way to provide superior customer value. Although building collaborative relationships may not always be
the best course of action, this avenue for gaining a competitive edge is increasing in popularity.
Strategic partnering has become an important strategic initiative for many
well known companies and brands. Many firms outsource the manufacturing of their products. Examples include Motorola cell phones, Calvin Klein jeans, Pepsi
beverages, and Nike footwear. Strong relationships with outsourcing partners are vital to the success of these powerful brands. The trend of the 21st century is partnering rather than vertical integration.
Planning for New Products
New products are needed to replace old products because of declining
sales and profits. Strategies for developing and positioning new market entries involve all functions of the business. Closely coordinated new-product planning is essential to satisfy customer requirements and produce products with high quality
at competitive prices. New-product decisions include finding and evaluating ideas, selecting the most promising for development, designing the products,
developing marketing programs, use and market testing the products, and introducing them to the market.
The new-product planning process starts by identifying gaps in customer
satisfaction. The differences between existing product attributes and those desired by customers offer opportunities for new and improved products.
Stage 3: Market-Driven Program Development Market targeting and positioning strategies for new and existing products
guide the choice of strategies for the marketing program components. Product,
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distribution, price, and promotion strategies are combined to form the positioning strategy selected for each market target.
The marketing program (mix) strategies implement the positioning strategy. The objective is to achieve favorable positioning while allocating
financial, human, and production resources to markets, customers, and products as effectively and efficiently as possible.
Strategic Brand Management
Products (goods and services) often are the focal point of positioning strategy, particularly when companies or business adopt organizational approaches emphasizing product or brand management. Product strategy includes:
(1) developing plans for new products, (2) managing programs for successful products, and (3) deciding what to do about problem products (e.g., reduce costs
or improve the product). Strategic brand management consists of building brand value (equity) and managing the organization’s portfolio for overall performance.
Value-Chain, Price, and Promotion Strategies
One of the major issues in managing program is deciding how to integrate the components of the mix. Product, distribution, price, and promotion strategies
are shaped into a coordinated plan of action. Each component helps to influence buyers in their positioning of products. If the activities of these mix components are not coordinated, the actions may conflict and resources may be wasted. For
example, if the advertising messages for a company’s brand stress quality and performance, but salesperson emphasize low price, buyers will be confused and brand damage may occur.
Market target buyers may be contacted on a direct basis using the firm’s sales force or by direct marketing contact (e.g., Internet), or instead, through a
value-added chain (distribution channel) of marketing intermediaries (e.g., wholesalers, retailers, or dealers). Distribution channels are often used in linking procedures with end user household and business markets. Decisions that need to
be made include the type of channel organization to use, the extent of channel management performed by the firm, and the intensity of distribution appropriate
for the product or service. The choice of distribution channels influences buyers’ positioning of the brand.
Price also plays an important role in positioning a product or service.
Customer reaction to alternative prices, the cost of the product, the prices of the competition and various legal and ethical factors establish the extent of flexibility
management has in setting prices. Price strategy involves choosing the role of price in the positioning strategy, including the desired positioning of the product or brand as well as the margins necessary to satisfy and motivate distribution
channel participants. Price may be used as an active (visible) component of marketing strategy, or, instead, marketing emphasis may be on other marketing
mix components (e.g., product quality).
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Advertising, sales promotion, the sales force, direct marketing, and public relations help the organization to communicate with its customers, value-chain
partners, the public, and other target audiences. These activities make up the promotion strategy, which performs an essential role in communicating the
positioning strategy to buyers and other relevant influences. Promotion informs, reminds, and persuades buyers and others who influence the purchasing process.
Stage 4: Implementing and Managing Market-Driven Strategy
Selecting customers to target and the positioning strategy for each target moves marketing strategy development to the action stage. This stage considers
designing the marketing organization and implementing and managing the strategy.
Designing Effective Market-Driven Organizations
An effective organization design matches people and work responsibilities in a way that is best for accomplishing the firm’s marketing strategy. Deciding how to assemble people into organizational units and assign responsibility to the
various mix components that make up the marketing strategy are important influences on performance. Organizational structures and processes must be
matched to the business and marketing strategies that are developed and implemented. Organizational design needs to be evaluated on a regular basis to assess its adequacy and to identify necessary changes.
Strategy Implementation and Control
Marketing strategy implementation and control consist of: (1) preparing the marketing plan and budget; (2) implementing the plan; and (3) using the plan
in managing and controlling the strategy on an ongoing basis. The marketing plan includes details concerning targeting, positioning, and marketing mix activities.
The plan spells out what is going to happen over the planning period, who is responsible, how much it will cost, and the expected results (e.g., sales forecasts).
The marketing plan includes action guidelines for the activities to be
implemented, who does what, the dates and location of implementation, and how implementation will be accomplished. Several factors contribute to
implementation effectiveness including the skills and commitment of the people involved, organizational design, incentives, and the effectiveness of communication within the organization and externally.
Marketing strategy is an ongoing process of making decisions, implementing them, and tracking their effectiveness over time. In terms of its time
requirements, strategic evaluation is far more demanding than planning. Evaluation and control are concerned with tracking performance and, when necessary, altering plans to keep performance on track. Evaluation also includes
looking for new opportunities and potential threats in the future. It is the concerning link in the strategic marketing planning process. By serving as both
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the last stage and the first stage (evaluation before taking action) in the planning process, strategic evaluation assures that strategy is an ongoing activity.
PLACE AND PROMOTION PLACE:
Place in the context of marketing mix refers to a set of decisions that need to be taken in order to make the products available to the customers for purchase
and consumption. Making the products available to the customers require development of channels of distribution and physical distribution of products
. CHANNELS OF DISTRIBUTION
A channel of distribution refers to the path taken by the goods in their
movement to the customers. For instance, the toothpaste we use is manufactured in the factory of a company Dabur. But before it reaches us it passes through the
hands of many middlemen who help it come to you in right time, at right place and in right quantity.
Dabur’s distribution network is recognized as one of its key strengths. Its
focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence - of product availability, brand communication, and
higher levels of brand experience. A Diagram explaining the channels of Distribution is given below The diagram shows channel of distribution of dabur foods, here first the
products are manufactured and from Manufacturing plants the packed goods are supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest or Distributors, from here goods
reaches to large number of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the goods to them, this work is generally done by
stockiest salesman through ready stock or by taking orders first and then placing the order. From here the goods finally reaches to Customers. Customer purchases the product from retailers.
Manufacturing Plant
Clearing and forwarding agent (different regions) Stockist A Stockist B Stockist C
Retailers Retailers Retailers Retailers Retailers Retailers
Consumers
Supply Chain Management
Supply chain management starts before physical distribution: it involves
procuring the right inputs (raw materials, components and capital equipment), converting them into finished products and dispatching them to the final
destinations. The supply chain perspective can help identify superior suppliers
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and distributors and help them improve productivity, which ultimately brings down the company’s costs.
A broader view sees a company at the center of a value network that includes its suppliers, its immediate customers and their end customers. The value
network includes valued relations with others such as university researchers, government approval agencies and so on.
MANUFACTURING PLANT Dabur Foods has Number of products in its product line but its main area of
interest or the product on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is
manufactured and tested.
PROCUREMENT & TRANSPORT Getting the raw material and packaging material requirement from the production
unit in charge
Constant updates on the procurement of materials and transport details Production details and ingredient content information from the different personnel
and coordinating this activity PACKAGING
Approval and coordination of the supply of packaging material to the production unit
CLEARING AND FORWARDING AGENTA (C&FA) From manufacturing plant the stock is transported or supplied to clearing and
forwarding agents. Clearing and Forwarding Agents is a third party and Dabur gives contract to them,
so company has nothing to do in building the relationship with them. Here C&FA keep or stock the goods with them. They charge Dabur for stocking the good and even Dabur don’t mind doing so as
it is a measure of cost cutting as well as there is no need for gowdowns and maintenance.
STOCKIEST OR DISTRIBUTORS Stockiest store the products in their godowns, C&FA supplies the goods to them
as per their order. Stockiest has some sales men working under him, they are known as stockiest
sales man. Their work is to place the products in the market and take order from retailers and then supply goods to them.
Sales man either take ready stock with them or they first take orders and then
supply goods later on. There is a beat which is a schedule route of sales man, means sales man has to
daily cover the route as mention in the beat.
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Merchandising, making products visible, pasting posters, putting banners, and seeing that goods are properly placed in the retail outlets is also the duty of
stockiest sales man. Companies’ sales officer keeps a check on the stockiest and monthly report is also
prepared which is further analyzed by SM & ZSM.
RETAILERS
Retailers are backbone of the company as they are the one who can take the product on new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the brand special displays (using merchandising tools) to get affective brand presence, and arranging it in more noticeable manner.
Margin of retailers is always higher than stockiest. Retailers are the ones who have direct contact with the customers.
Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail outlets making its product available to the consumers across the country at ease.
PROMOTION
Once the product has been manufactured, priced rightly and is distributed, the
next task of the marketer is to inform potential customer about the product and persuade them to buy the same. The promotion element of marketing mix is concerned with activities that are undertaken to communicate with both customers
and participants in the channel of distribution such that sales goals are realized. There are different promotional activities like-: Advertising, Sales promotion, trade promotion, personal selling etc. but one of the most convenient and effective
one that most of the industries uses is the Advertising and Sales Promotion.
Advertising Advertising is a form of communication that typically attempts to persuade
potential customers to purchase or to consume more of a particular brand of
product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and
reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including
television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a
company or other organization. Dabur has created the huge brand image and a vast product following by
associating mega-names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi,
Mandira Bedi etc. Dabur invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the company has been successful in this
mission as the people now know the brand and ask for its products by name.
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Sales promotion “An activity designed to boost the sales of a product or service. It may include
an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up
competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods”.
In marketing, sales promotion is one of the four aspects of promotion. (The
other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts
that are designed to have an immediate impact on sales. Sales promotion involves short-term incentives to encourage buyers to
purchase a product. It's aim is to encourage immediate purchase of a product. If
used too often however, sales promotion can create a situation where consumers will not buy unless there is a bonus offer. This will result in loss of profit for the
company. More than any other element of the promotional mix, sales promotion is about
“action”. It is about stimulating customers to buy a product. It is not designed to
be informative – a role which advertising is much better suited to. Sales promotion can be directed at:-
•The ultimate consumer (a “pull strategy” encouraging purchase) •The distribution channel (a “push strategy” encouraging the channels to stock the product). This is usually known as “selling into the trade”
SALES PROMOTIONAL TOOLS OF DABUR FOODS Price promotions Coupons
Gift with purchase Competitions and prizes
Money refunds Point-of-sale displays Free samples
Contest /demos Festival Sales
Retailer coupons Multi-packs Special price for twos
Allowances for additional shelf space Merchandising
Sales contest Incentives Awards & prizes
Premium gifts Sales Meetings
Samples/product sampling Contests & Sweepstakes
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Exchange Offers/buyback Refund / Rebate
Price / Bonus Packs
PROMOTIONAL SCHEMES USED FOR STOCKIESTS
Encourage stockiest to participate in displays and sales contests.
Higher Margins: Tries to give higher margins to stockiest so that they don’t loose interest in the product and can earn good profits after meeting all the expenses.
Sales Contests: Sales contest are held annually and whichever stockiest has the best sales record a prize is given to him, like free holiday to the family etc.
Allowances: Special allowances are given to both stockiest and stockiest sales
man if they achieve their monthly target. Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who
spend some money on the promotional schemes, like conducting a sampling activity.
Danglers and Posters: Company gives posters and danglers to stockiest which
are further pasted and distributed by stockiest sales man. Training: Special Training is given to Stockiest Sales Man, a training workshop is
organized by the company for stockiest sales man so that they don’t face any problem while placing their products and taking orders from retailers.
Annual Gathering: All the stockiest meet under one roof at least once a year and
then the stockiest whose performance was best in term of sales is awarded. Fun Trip: A zone wise fully paid fun trip is organized by the company for all the
stockiest once a year. Gathering While Launch of New Products: All the stockiest and their sales man
gather when there is a launch of a new product. Company gives free samples &
gifts to stockiest and their sales man. Special Trade Schemes: Special trade schemes like two SKU free with the 12
SKU. Free danglers and posters for publicity. Buyback: Dabur foods have a scheme of replacement of products which gets
expired.
PROMOTIONAL SCHEMES USED FOR RETAILERS
Trade allowances: Short term incentives are offered to induce a retailer to stock
up more dabur products. Dealer loader: An incentive given to induce a retailer to purchase and display the
products of dabur. Trade contest: A contest to reward retailers those sells the most product of dabur
foods and after a specific period they are rewarded.
Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like danglers, posters, banners etc helps in promoting sales.
Push money: Also known as "spiffs". An extra commission paid to retail employees to push products. This kind of practice dabur hardly follows.
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Free samples: Dabur foods gives free samples are given to retailers so that they can try that product if the product is new, or gives some discounts.
Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.
Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash discounts if payment is made in cash.
Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the
retailer buys and sells a specific amount of products. Higher Margins: Retailer has the highest margins and dabur foods also have the
same criteria, and retailer can further sell the dabur product to consumer at discount keeping his margin safe.
Allowances for additional shelf space: Company as such does not pay anything
to retailer but gives some additional benefits for giving them shelf space which is visible to customer when ever they enter the shop.
Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising dabur products. When ever the Stockiest sales man goes to take orders then he also merchandises dabur products.
Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with that.
Trade Allowance: Dabur comes with different types of trade discounts from time to time, like sometime price discounts, sometimes gifts etc.
Free goods: Dabur gives free goods on the purchase of specific number of goods.
Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at the time of purchase.
Product sampling: Dabur organizes sampling activities for its products which are new, these activities are generally at the place where footfall is very high.
Displays: Dabur tries to give special displays to the retailers, so that they can
display their products on that. Point-of-Purchase Material: POP material is available in the form of stickers,
banners, displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible purchase locations.
PROMOTIONAL SCHEMES USED FOR CONSUMERS
Price deal: A temporary reduction in the price is given to consumer during some festival session by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of
the product for the same price (for example, 25 percent extra). Coupons: Dabur foods gives coupons during different sampling activities to
consumers and it have become a standard mechanism for sales promotions. Loss leader: Dabur foods temporarily reduce the price of its popular product in
order to stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
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Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling activities then they are given a discount coupon of products of
dabur foods. Point-of-sale displays: Displays helps the consumer easily recognize their
products, dabur keeps a special check on the displays and merchandising of dabur products.
Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
Money Refunds: Customer can claim for refund of money if they face some
problem with the product Contest /demos: There are different contests where customers play games and
win contests. Festival Sales: Dabur foods come out with some special offers during festival
seasons like buy one get one free.
Multi-packs: Dabur foods has some products in multiple packaging which are comparatively priced lower to the products sold in a single pack.
Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier for customers to know about product line and choose the best out of that.
Customer feedback: dabur foods consider its customer most important and in case of any complaint by customer the foods department will leave all its
important work and will contact the customer. Contact points: Customer can contact dabur foods by writing the mail or letter on
the addresses given at the back of dabur products, or even they can call and visit
the dabur web site.
THE PATH AHEAD:
Dabur intends to significantly accelerate profitable growth. To do this, Dabur
will: Focus on growing their core brands across categories, reaching out to new
geographies, within and outside India, and improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of their
target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science.
Provide the consumers with innovative products within easy reach. Build a platform to enable Dabur to become a global ayurvedic leader. Be a professionally managed employer of choice, attracting, developing and
retaining quality personnel. Be responsible citizens with a commitment to environmental protection.
Provide superior returns, relative to their peer group, to the shareholders.
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VISION:
“HEALTH AND WELL BEING OF EVERY HOUSEHOULD” Dabur is a company with a set of established business values, which direct it's functioning as well as all its operations. The guiding forces for Dabur are the
words of its founder, Dr.S. K. Burman, "What is that life worth that can not give comfort to others."
The Company offers its customers, the products to suit their needs and
give them good values for money. The company is committed to follow the ethical practices in doing business. At Dabur, nature acts as not only the source of
raw materials but also an inspiration and the company is committed to product the ecological balance.
FUTURE VISION After the successful implementation of the 4-year business plan from 2002 to
2006, Dabur has launched another plan for 2011. The main objectives are:
Doubling of the sales figure from 2006
The new plan will focus on expansion, acquisition and innovation. Although
Dabur’s international business has done well — growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.
Growth will be achieved through international business, homecare, healthcare and foods.
Southern markets will remain as a focus area to increase its revenue share to 15
per cent.
With smoothly sailing through its previous plans, this vision seems possible.
Time and again, Dabur has made decisions that have led to its present position. However, if Dabur could be more aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year performance table from
Dabur’s website.
PRINCIPLES OWNERSHIP:
This is our company. We accept responsibility and accountability to meet
business needs.
PASSION FOR WINNING: We all are leaders in our responsibility, with a deep commitment to deliver
the results. We are determined to be the best at doing what matters the most.
PEOPLE DEVELOPMENT:
People are our most important asset. We add value through result- driven training and we encourage rewards and excellence.
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CONSUMER FOCUS: We have superior understanding of consumer needs and develop products
to fulfill their demands.
INNOVATION: Continuous innovation in products and processes and is the base of our
success.
SWOT ANALYSIS STRENGTHS
Century Old Company Established Brand
Ayurvedic/ herbal Product line Leader in Herbal Digestives where the product has 90% of the market share Core knowledge of Ayurveda as competitive advantage
Strong Brand Image Strong Distribution Network
Extensive Supply Chain R & D - a key Strength
WEAKNESS Seasonal Demand (like Chyawanprash in winter and Vatika not in winter)
Profitability is uneven across product line Low Penetration (Chyawanprash) Limited differentiation (Vatika)
Unbranded players account for 2/3rd of the total market (Vatika)
OPPORTUNITIES Extend Vatika brand to new categories like Skin Care and body wash
segments
Market Development Export Opportunities
Innovation Increasing income level of the middle class Creating additional consumption pattern
THREATS
Existing Competition like Himami, Baidyanth and Zandu for Dabur
Chyawanprash and Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil) New Entrants
Other fields of medicine- Allopathic and Homeopathic
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COMPETITORS Given Below is a Segment Wise Competitor list:
Category of products Dabur’s Share Main Competitors
Fruit Juice 58% Real and Active Tropicana.
Fruit Drinks (coolers) 1% Coolers Frooti, Mazza, and Slice.
Hair oil Coconut Base 6.4% Vatika HUL, Marico.
Shampoo Vatika 7.1% HUL and P&G.
Hair Care (overall) 27% HUL, P&G and Himalaya.
Chyawanprash 64% Himami, Zandu and
Himalaya.
Honey 40% Himami, Hamdard and local players.
Digestive 37% Paras and local players.
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Recent Initiatives
Following its plans, Dabur made significant changes in the time period
2002-2007.
Brand Rejuvenation With youth forming a major population of India, Dabur decided to revamp
its brand identity. Dabur associated itself with 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’”.
HR Initiaves The culture at Dabur gives full autonomy to its employees. Various
training and development programs like Young Manager Development Program,
Prayas, Leading and Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to performance evaluation, helps employees realize their
potential. Recently, Dabur has adopted an innovative HR program of offering
ESOPs to new engineering and management trainees at the time of joining. Also
in 2005, Dabur gave Bonus to its employees after 12 years. This boosted the employee morale further.
Dabur was listed as a “Great Place to Work”, in a survey conducted by Grow Talent & Company and Great Place to Work Institute, USA. Dabur was listed as the 10th “Great Place to Work”. The results were published in Business
World dated February 2006.
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DABUR’S SOCIAL INITIATIVES Sustainable Development Society (Sundesh)
Sundesh is a non – profit organization engaged in carrying out welfare activities with the aim of improving the quality of life of the people in rural
areas. Mr. Pradip Burman is the Founder Chairman. Sundesh is majorly involved in Health Care, Education and other socio economic activities.
Sundesh started with Health Care and today its activities have diversified
into various other projects like education, veterinary services and income generation activities. These projects were implemented after the need assessment
survey of the rural community. The enthusiastic volunteers support the society in implementing various projects in the rural areas through their consistent efforts. Sundesh is executing various integrated rural development projects in the villages
of Ghaziabad and Gautam Budh Nagar Districts (Uttar Pradesh) in India. SUNDESH is associated with the following activities
Education Health Care Self Help Groups (Micro Credit Society)
Income Generation Veterinary Services
IT initiatives Dabur installed centralized SAP ERP system from 1st April 2006 for all
business units. It also implemented a country wide new WAN Infrastructure for running centralized ERP system. Further it set up new Data Center at KCO Head
Office.
Supply chain Initiatives
Dabur has undertaken e-procurement in a big way. Dabur India procured Rs.210 crore of raw materials through e-sourcing — or almost 50 per cent of total
raw material expenditure — and, in the process, considerably controlled raw material costs which were on a rise.
For better production and operation management, Dabur included
automation, debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax holidays to reduce cost and improve efficiency.
Other important changes Dabur made its largest acquisition by taking over Balsara hygiene and
home products business. Dabur bought the entire promoters’ stake of three Balsara companies through an all-cash deal of Rs.140 crore. This was done to
ensure Dabur’s presence in all price segments in the herbal oral care market. Moreover, it allowed Dabur’s entry in the household care segment, where Balsara has well-established brands.
Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player
Dabur estimated that the southern region was contributing as low as 7% to its overall growth. For this purpose, the south team adopted a three-phase
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approach. First, it focused on point of sale promotions and stocking practices. Second phase included better marketing efforts in terms of advertising and
packaging. Finally, it envisioned customized product launches for the Southern states. The completion of first two phases by 2005-06 resulted in increasing
contribution to 10%.
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RECOMMENDATION AND CONCLUSION
Recommendations:
Focus on growing core brands across categories.
Reaching out to new geographies areas.
Improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by
synthesizing the deep knowledge of ayurveda and herbs with modern science.
Provide consumers with innovative products within easy reach.
Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic,
Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. It could have hair care experts to solve hair problems.Services could include dandruff treatment, straightening of
hair, treatment for split ends,etc.
Position Dabur Chyawanprash as not more of a medicine but as
something which is necessary for health.
More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is
an initiative to occupy shelf space.
Conclusion:
It was really a very great experience to study this FMCG Company “Dabur India Limited”. After going into all its aspects i.e. its marketing strategies, policies, pricing strategies etc. we can conclude that the company is excellent on all the
fronts. The company’s different projects like Sundesh and its social initiatives in Nepal etc. indicates that the company is also loyal towards the society, and all
such social responsibilities are very necessary to build a strong customer base and brand loyalty Through its comprehensive range of products it touches the lives of all
consumers, in all age groups, across all social boundaries. And this legacy has helped them develop a bond of trust with our consumers. That guarantees us the
best in all products carrying the Dabur name. Dabur has Strong distribution network. Dabur is the Fourth largest FMCG Company of India. Dabur is one of the most trusted brand.
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Bibliography:
http://marketingofdaburr.blogspot.in/
www.dabur.com