LOVELY PROFESSIONAL UNIVERSITY

TERM PAPER
OF

MARTETING OF
IT PRODUCT

DABUR INDIA

Submitted to: Submitted by:

HARENDRA SINGH SIR Anil Kumar Newar
RS1906A21
10904838
 DECLARATION

I, Anil Kumar Newar student of Lovely Professional

University have completed my Term Paper:

DADUR INDIA Ltd

The information given in this project is true to the best of

my knowledge.

Anil Kumar Newar

MBA (IT)
RS1906A21
10904838
 ACKNOWLEDGEMENT

First of all I would like to thank the Lovely University and take
the opportunity to do this project as a part of the M.B.A.
Many people have influenced the shape and content of this
project, and many supported me through it. I express my
sincere gratitude to Mrs. Harendra Singh Sir for assigning me
a project of Managerial Economics, which is an interesting and
exhaustive subject.
He has been an inspiration and role model for this
topic. His guidance and active support has made it
possible to complete the assignment.

I also would like to thank my Friends who have helped and

encouraged me throughout the working of the project.

Last but not the least I would like to thank the Almighty for
always helping me.
DABUR INDIA Limited

Dabur India Limited is a leading Indian consumer goods company with

interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and
Foods. From its humble beginnings in the by lanes of Calcutta way back
in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a
long way today to become a leading consumer products manufacturer in
India. For the past 125 years, we have been dedicated to providing nature-
based solutions for a healthy and holistic lifestyle.

Through our comprehensive range of products, we touch the lives of all

consumers, in all age groups, across all social boundaries. And this
legacy has helped us develop a bond of trust with our consumers. That
guarantees you the best in all products carrying the Dabur name .
Dabur India Limited is the fourth largest FMCG Company in India with
Revenues of US$600 Million (Rs 2834 crore) & Market Capitalisation of
over US$2.2 Billion (Rs 10,000 Crore). Building on a legacy of quality
and experience for 125 years, Dabur operates in key consumer products
categories like Hair Care, Oral Care, Health Care, Skin Care, Home
Care & Foods.

Dabur India Limited has marked its presence with significant

achievements and today commands a market leadership status. Our story
of success is based on dedication to nature, corporate and process
hygiene, dynamic leadership and commitment to our partners and
stakeholders. The results of our policies and initiatives speak for
themselves.

3 major strategic business units (SBU) - Consumer Care Division

(CCD), Consumer Health Division (CHD) and International Business
Division (IBD)

3 Subsidiary Group companies - Dabur International, Fem Care

Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd
(Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care
(Bangladesh), Asian Consumer Care (Pakistan), African Consumer
Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield
International (UAE) and Jaquline Inc. (USA).

17 ultra-modern manufacturing units spread around the globe

Products marketed in over 60 countries

Wide and deep market penetration with 50 C&F agents, more than 5000
distributors and over 2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the

entire FMCG spectrum through four distinct business portfolios of
Personal Car

e, Health Care, Home Care & Foods

 Master brands:
 Dabur - Ayurvedic healthcare products
 Vatika - Premium hair care
 Hajmola - Tasty digestives
 Réal - Fruit juices & beverages
 Fem - Fairness bleaches & skin care products
 9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika,
Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool,
Hajmola and Dabur Honey Strategic positioning of Honey as food
product, leading to market leadership (over 75%) in branded honey
market

Dabur Chyawanprash the largest selling Ayurvedic medicine with

over 65% market share.

Vatika Shampoo has been the fastest selling shampoo brand in India
for three years in a row

Hajmola tablets in command with 60% market share of digestive

tablets category. About 2.5 crore Hajmola tablets are consumed in
India every day

Leader in herbal digestives with 90% market share

Consumer Health Division (CHD) offers a range of classical Ayurvedic

medicines and Ayurvedic OTC products that deliver the age-old benefits
of Ayurveda in modern ready-to-use formats

Has more than 300 products sold through prescriptions as well as over
the counter

Major categories in traditional formulations include:

- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils

Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol
- Madhuvaani
- Trifgol
Division also works for promotion of Ayurveda through organised
community of traditional practitioners and developing fresh batches of
students

International Business Division (IBD) caters to the health and personal

care needs of customers across different international markets, spanning
the Middle East, North & West Africa, EU and the US with its brands
Dabur & Vatika

 f total sales
 Leveraging the 'Natural' preference among local consumers to
increase share in perosnal care categories
 Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

High level of localization of manufacturing and sales & marketing

Background

The story of Dabur began with a small, but visionary endeavour by Dr.
S. K. Burman, a physician tucked away in Bengal. His mission was to
provide effective and affordable cure for ordinary people in far-flung
villages. With missionary zeal and fervour, Dr. Burman undertook the
task of preparing natural cures for the killer diseases of those days, like
cholera, malaria and plague. Soon the news of his medicines traveled, and
he came to be known as the trusted 'Daktar' or Doctor who came up with
effective cures. And that is how his venture Dabur got its name derived
from the Devanagri rendition of Daktar Burman. Dr. Burman set up
Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching
out to a wide mass of people who had no access to proper treatment. Dr.
S. K. Burman's commitment and ceaseless efforts resulted in the
company growing from a fledgling medicine manufacturer in a small
Calcutta house, to a household name that at once evokes trust and
reliability.
Dabur (an acronym of the name Dr. SK Burman),was set up in West
Bengal as a proprietary firm for manufacturing of ayurvedic drugs. It
started off with a direct mailing system to send medicines to villages in
Bengal. In 1896, Dr. Burman set up a small manufacturing plant at Garhia near
Calcutta for mass production of chemicals and Ayurvedic drugs. In the
early 1900s, the next generation of Burmans took a conscious decision to
focus more on the Ayurvedic medicines market. In 1919, Dabur set up its
Research & Development laboratory for Ayurvedic medicines. In 1936,
Dabur India Pvt. Ltd., was incorporated to take over the business of the
proprietary firm. In 1940, the company diversified into the personal care
products business with the launch of its Dabur Amla Hair Oil. In 1949,
Dabur launched Chyawanprash in a tin pack making it the first branded
Chyawanprash in the country. It expanded its personal care portfolio by
adding oral care products in 1970. Dabur Lal Dant Manjan was the first
product to be launched. In 1972, Dabur shifted base to Delhi from
Calcutta and started production from a hired manufacturing facility at
Faridabad. In 1978, Dabur launched the Hajmola tablet. It set up ‘The
Dabur Research Foundation (DRF),’ an independent company, in 1979 to
spearhead Dabur’s research needs. In the same year, commercial
production started at Sahibabad. In 1986, Dabur became a public limited
company through a reverse merger with Vidogum Ltd. and was
rechristened Dabur India Limited. The next year Dabur set up a facility at
Noida Export Processing Zone to cater to the global markets. In 1990, it
set up a branch office and warehousing operations in London to service
the European markets. In 1991, it set up Dabur Overseas Ltd. in Cayman
Islands to cater to its overseas investment needs. Dabur Overseas Ltd.,
later funded Dabur Egypt Ltd., in Cairo, which manufactured personal
care and food products. In 1992, Dabur entered into 49:51 joint venture
with the Spanish confectionery major Agrolimen group under the name
General De Confeteria India Ltd. (GCI). The same year Dabur entered
into a biscuit joint venture named Excelcia Foods with Nestle. Dabur
came out with its initial public offer in November 1993, raising Rs. 541.5
mn (at Rs. 95 per share). The issue was oversubscribed 21 times. Dabur
used the funds to expand and modernize its production bases and to
develop new production facilities. In the same year Dabur roped in AF
Ferguson to offer advice on a restructuring plan. Based on its
recommendations, Dabur was broken up into seven profit centers and
professionals were brought in.In 1997, Dabur launched its ‘Project
STARS’ (Strive To Achieve Record Successes) to achieve accelerated
growth in the coming years. The scope of this project was identified as
the entire gamut of strategic, structural and operational changes to enable
efficiencies and improve growth rates.
 In April 1997, Dabur hired consultants McKinsey & Co to strengthen
its competitive position. Dabur introduced Samara range of herbal skin
and hair care products in early 1997. In 1998, the Burman family handed
over management of the company to a professional CEO and limited their
role to strategic inputs at Board level. Ninu Khanna joined Dabur as CEO
in November 1998 on a three-year contract. In the same year, Dabur
entered into a 50:50 joint venture with Bongrain of France, a Fortune 500
company in processed and specialty cheeses. The venture was named
Dabon International and began manufacturing cheese products in Noida
(UP). In 1999, the company implemented a restructuring template
prepared by McKinsey & Co. It withdrew from the low margin
businesses like merchant exports, veterinary drugs and herbal
intermediates. It also exited from two joint ventures in Excelcia Foods
with Nestle and General De Confiteria Ltd., with Agrolimen. It
discontinued its Samara line of herbal cosmetics and pulled out of
veterinary products and bulk drugs. In 2001, Dabur set up a
manufacturing facility in UK for oncology injectibles at an investment of
$15 mn where commercial production is slated for late 2004. The state-
ofthe- art plant and laboratory in UK have approval from the MCA of
UK. They follow FDA guidelines for production of drugs specifically for
European and American markets. In 2001, Dabur roped in Accenture to
define clear roles and responsibilities of its board of directors and the
chief executive officer to prevent any overlap. In the same year, Family
Council was constituted for formalizing the promoter family’s role in
managing the business interests encompassing all group companies. The
roles of Management Committee, Board of Directors and Family Council
were defined and formalized. In December 2001

Dabur restructured its Pharmaceutical business and separated it from its

FMCG business. Now, Dabur is busy with restructuring its operations in
line with the recommendations. As a first step in this exercise, Dabur
identified six Over-the-counter (OTC) brands under the ayurvedic
specialities division, which will be moved to the healthcare division.
These include Isabgol, Nature’s Cure, Madhuvani and Stresscom.

IT initiatives, the company now plans to take the battle to its competitors
with an entry into the FMCG sector and believes IT to be an
indispensable weapon in this war. Says Gopal Shukla, chief information
officer, Dabur, “Most industries use IT in certain distinct phases before
evolving into a complete e-business enabled organisation. We are
currently in one of those phases and believe it to be the fourth major asset
of the company (other three being strong brand image, new product
development strengths and an extensive distribution network).” In an
effort to establish itself as a strong player in the FMCG sector, Dabur has
already started implementing IT systems and processes all across the
company. Says Shukla,

“The distribution network is the lifeline for an FMCG company and is a

greater value add in terms of IT returns than manufacturing. In line with
this, we have outlined our IT focus on streamlining complete outward
logistics of the company in the true spirit of an FMCG.” With IT assisting
in the very build-up of its new image, it surely is an exciting time for IT
at Dabur.

According to Shukla, the IT department of the company will have

important role to play in its IT initiatives. From its early beginnings, the
implementation of simple COBOL and Foxpro based applications to the
implementation of the manufacturing ERP system, intranet and extranet
based applications and establishment of a robust communication and
networking system, the team has played an active role in ensuring that the
IT infrastructure lives up to expectations and perform its task. After
successfully implementing Baan ERP and MFG/PRO Dabur at present is
undergoing process of implementing SAP to work along with
aforementioned systems.

.Dabur Vision

Dedicated to the health and well

Being of every household

The vision is intertwined with below mentioned core values of the company:-
Ownership: This is our company. We accept personal responsibility, and
accountability to meet business needs

Passion for Winning: We all are leaders in our area of responsibility,

with a deep commitment to deliver results. We are determined to be the
best at doing what matters most

People Development: People are our most important asset. We add value
through result driven training, and we encourage & reward excellence

Consumer Focus: We have superior understanding of consumer needs

and develop products to fulfill them better
Team Work: We work together on the principle of mutual trust &
transparency in a boundary-less organization. We are intellectually honest
in advocating proposals, including recognizing risks

Innovation: Continuous innovation in products & processes is the basis

of our success

Integrity: We are committed to the achievement of business success

with integrity. We are honest with consumers, with business partners and
with each other

Strategic intent
Following are the defined means to achieve that intent:-

Focus on growing our 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 our target consumers with safe, efficacious, natural solutions by
synthesizing our deep knowledge of ayurveda and herbs with modern
science

Provide our 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 our peer group, to our shareholders

Marketing strategies
 Focus on growing our 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 our target consumers with safe, efficacious, natural solutions
by synthesizing our deep knowledge of ayurveda and herbs with
modern science

Provide our consumers with innovative products within easy

reachBuild 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 our peer group, to our

shareholders

Market Position -Dabur India

Dabur India Limited is an Indian trans-national with a turnover o

approximately US$255 million which is engaged in the manufacturing
and marketing of a variety of natural and herb based products in the
categories of Personal care, Oral care, Health care, Foods and
Pharmaceuticals such as Dabur Amla Hair oil, Dabur Vatika Hair oil and
Shampoos, Dabur Honey,Dabur Chyavanprash, Dabur Real Fruit Juice,
etc. As summarized in the Annual Report (2000-01), the company’s story
is that of a more than a century old partnership with nature using the
theories of Ayurveda (the ancient Indian system of alternative therapies),
to create a wide range of products. In contrast, the leading multinational
players in the fast moving consumer goods sector such as Unilevers,
SmithKline Beecham, Proctor and Gamble, Johnson and Johnson, etc. are
known for manufacturing and marketing primarily chemical based
products in each of the product categories whether hair oils, shampoos,
toothpowders, baby care or healthcare products. Differentiation is the
name of the game The operations of Dabur India Limited are a story of
continuous differentiation through a variety of means discussed by
Alderson (1965) as the bases of differential advantage including product
differentiation, market segmentation, differentiated appeals, transvection
re-engineering and continuing advancements in technology and
processes. Market segmentation is the policy of selecting a group of
customers with relatively homogenous demands and deriving production
economies from that selection (Alderson, 1965). Dabur’s 2000 launch of
Vatika Anti Dandruff Shampoo, which has natural lemon extracts for
fighting dandruff, is a prime example of this. By focusing its marketing
efforts towards targeting women suffering from dandruff but who are
scared to use chemicals for dandruff control, Dabur created a sizeable sub
segment of natural anti-dandruff shampoos. The advantage is attested to
by response of Head and
Shoulders who launched a variant with lemon extracts to win back
consumers. Similarly, Dabur’s Vatika Henna Conditioning Shampoo
tapped the market segment of people who use shampoo very rarely as
they are scared of the harmful effects of chemicals on their hair.
Marketing efforts are concentrated on promoting its key herbal
ingredient, henna, as many Indian consumers have grown up using
homemade henna paste on their hair. This marketing campaign yielded
unprecedented results with sales of the brand now over AU $14 million.
And Dubar is confident of retaining this advantage. In response to a query
on the likely counter attack by the leading multinational brands such as
Pantene and Sunsilk a member of the marketing teamhead
replied, “They may be multinationals, but we have the mother of all
Indian
conditioners – henna, on our side.” Differentiation by selection of
appeals implies the use of advertising to situate products in market
preference niches (Blair and Uhl, 1976) without any physical change in
the product (Alderson, 1965). Dabur Honey, has been built as the leading
brand of honey in India entirely through the use of mass media
advertising.

Traditionally in India honey occupied an image of a medicinal tonic for

coughs and colds during winter. Dabur used advertising to position Dabur
Honey as a taste enhancer and additive housewives could use with their
everyday food. ``While that effort yielded results…the brand needed to
find a way to increase the width and depth of usage to continue the pace
of growth,'' says Sunil Duggal, vice-president, sales and marketing (c.f.
Kaul, 2000). To maintain the advantage, advertising appeals now target
children, who have been classified by research as the primary consumers
of honey in the Indian household, while simultaneously zeroing in on
breakfast as the key consumption occasion. Similarly Dabur Gulabari, a
pure rose water has, successfully used mass media advertising since the
past 2 years to move to a the position of a skin care product and has
expanded its sales two fold from the earlier days when it was being sold
as just another rose water in the market. Differential appeals can also
occur in the intermediate rather than final market. Dabur’s Anmol
Coconut Oil was differentiated by transvection. It occupied a commodity
position in a crowded coconut oil market containing larger competitors.
Dabur decided to stop all advertising and spend the money saved on
attractive bulk
purchase discounts for retailers. The brand now occupies a leadership
position in the northern part of the country with steady sales from the rest
of India. As a marketing team participant put it
Another example of transvectional differentiation is that of Dabur Honey
who has managed to establish semi-exclusive relationships with some of
the leading suppliers of raw honey in the country. This has helped it
maintain its image of the ‘best quality’ honey. To further consolidate
their position of leadership, Dabur has now also started a venture called
Honey Bee Products, which undertakes activities such as manufacturing
of beekeeping equipment and management of an apiculture center that
rears high breed queen bees. Differentiation by product improvement
occurs when improvements to an already existing product are done, either
to be used as the basis for product promotion, or for further product
development without being communicated externally (Alderson 1965).
Several products and brands in Dabur have been through either a gradual
or a more comprehensive and noticeable product improvement program.
When Dabur Red Tooth Powder, which is the second largest brand
marketed by the company, experienced an large decline in sales a couple
of years ago, research revealed that the target consumers relied mainly on
herbal ingredients for dental care, were not sure of the ingredients in
Dabur’s toothpowder and their efficacy for dental care. The company not
only reformulated the product by increasing the existing herbal extracts
and adding new ones known to be beneficial for the teeth, but to also
highlighted this fact in the packaging as well as advertising. This not only
stemmed the decline but also led to healthy growth figures. Dabur Vatika
Henna Conditioning shampoo on the other hand, has followed a more
gradual and subtle program of product improvements in key product
aspects such as lathering, conditioning and fragrance. These product
improvements have not been communicated to the consumers through the
brand’s advertising, but are simply part of the company’s effort to
continually deliver a consistently better product to the consumer in line
with the brand promise of a superior natural conditioning shampoo.

Differentiation by process improvement pertains to production processes

rather than the product. Alderson (1965) suggests that by employing
process improvement the producer enjoys a very favored position with a
generic difference between the product and anything else available.
Unlike advantage attained by product differentiation it does not involve
sacrificing all other segments of a market in order to have a more secure
position in the target segment. There are some brands in Dabur such as
Dabur Honey and Dabur Anmol Coconut Oil where there is no
manufacturing involved and the products are simply processed and
packed by the company. In the case of Dabur Honey, constant
improvements in processing capabilities coupled with systematic research
to understand consumer perceptions of product quality, have ensured that
Dabur has been able to deliver a more consistent, superior and
international quality blend of honey.

Products & Services—

Dabur provides its products into various segments. Dabur presents range
of herbal personal care products. Bringing together the gentle touch of
nature and Ayurveda’s wisdom. Backed by the unfailing quality of Dabur
Products. Hair oil, Fairness face pack, Shampoo, Tooth paste, red gel, lal
dant manjan, dabur binaca toothbrush, vatika hair oil, anmol sarso aawla,
vatika heena conditioning shampoo, vatika anti-dandruff shampoo.
Instead of this in food range of REAL active natural juice, dabur
homemade, dabur honey etc., are the few Successful brands of company.

After demerging its consumer and pharmaceutical businesses in FY04,

Dabur laid out a growth strategy -- new product introductions, brand
extensions to new segments, and focus on new geographies. This strategy
has paid rich dividends for Dabur and has delivered sales growth ahead of
the consumer non-durable sector average. Balsara’s acquisition
complements Dabur’s growth strategy as it provides entry to a new
product segment (household care), extends Dabur’s oral care portfolio
(‘white’ toothpaste), and improves its distribution muscle in Western and
Southern India (focus areas for Dabur), as well as strengthening its
international business because Balsara exports to Middle East markets
where Dabur is trying to grow its business.
Balsara is Dabur’s first major acquisition and marks its first departure
from the herbal platform, it remains to be seen how Dabur will integrate
the non-herbal brands into its product portfolio. Balsara operates in the
oral care and household product segments. In oral care, Balsara has a 6%
market share and has three brands, Promise, Babool and Meswak based
on herbal formulations. In the household care segment, Balsara’s product
range includes air fresheners under the Odonil brand, insect repellant
branded Odomos, toilet cleaners under the Sanifresh brand and
dishwashers under the Odopic brand. All of these have fairly strong brand
equity and

Balsara has invested significantly behind these brands over the years. All
these product segments have significant growth potential, owing to low
penetration levels.
Dabur’s international business is profitable and has operating margins
only slightly below those of the domestic business. According to
management, there is further potential for expanding margins for the
international business. International operations have a footprint in 25
countries spread over six continents; however, a major part of its business
is concentrated in the Middle East. The company also has four
manufacturing facilities located in UAE, Bangladesh and Egypt.
According to management, the company is looking to expand its presence
in the Middle East, the Indian Subcontinent, Russia and Africa. For the
developed markets in the US and Europe, Dabur is looking at alliances
with distributors, focusing mainly on over-the counter herbal healthcare
products.
Product mix

Dabur’s product range encompasses health care, personal care,

ayurvedic specialities and food segments

Dabur's Health Care range brings for you a wide selection of

Ayurvedic and natural products that offer complete care for varying
individual needs. Our products are derived from the time-tested
heritage of Ayurveda, and backed by the most modern scientific test &
trials that ensure unfailing quality and safety in anything you pick.

.HAIR CARE

AMLA HAIR OIL

AMLA LITE HAIR OIL

AMLA LITE HAIR OIL

VATIKA HAIR OIL

VATIKA HAIR OIL

ANTI-DANDRUFF SHAMPOO

ANTI-DANDRUFF SHAMPOO

ANMOL SARSON AMLA

ANMOL SARSON AMLA

ANMOL SHAMPOO

ANMOL SHAMPOO

ANMOL SILKY BLACK SHAMPOO

ANMOL SILKY BLACK SHAMPOO

HEENA CONDITIONING SHAMPOO

 ANMOL NATURAL SHINE SHAMPOO

SKIN CARE

GULABARI

HEENA CONDITIONING SHAMPOO

VATIKA FAIRNESS FACE PACK

VATIKA SAFFRON GLOW SOAP WITH SANDAL

HEALTH CARE PRODUCT RANGE

HEALTH SUPPLEMENTS

DABUR CHYAWANPRASH

DABUR CHYAWANSHAKTI

GLUSOSE D

DIGESTIVES

HAJMOLA YUMSTICK HAJMOLA MAST MASALA

ANARDANA HAJMOLA CANDY FUN 2HAJMOLA

CANDY HAJMOLA PUDIN HARA G

PUDIN HARA DABUR HINGOLI

HAJMOLA CANDY FUN 2

 NATURAL CURES

SHILAJIT GOLD NATURE CARE

DABUR BALM SAT ISABGOL

SHILAJIT RING-RING

ITCH CARE BACK AID

SHANKH PUSHPI SARBYNA STRONG

BABY CARE

DABUR LAL TAIL

DABUR BABY OLIVE OIL

DABUR JANMA GHUTTI

ORAL CARE

RED TOOTHPASTE

BINACA TOOTHBRUSH

RED GEL

BALSARA

BABOOL TOOTHPASTE

LAL DANT MANJAN

MESWAK TOOTHPASTE

PROMISE TOOTHPASTE

HOME CARE

ODOMOS ODONIL

ODOPIC SANI FRESH

 FOODS

REAL

REAL ACTIV

DABUR HONEY

DABUR HOMMADE

LEMONEEZ

CAPSICO PEPPER SAUCE

Culinary

Pricing strategies

Dabur India Ltd has decided to cut Vatika shampoo prices by 20 per cent
from next month besides launching the brand in one-rupee sachets to gain
volumes.

Babool has lost considerable share due to aggressive pricing by market

leaders. What Dabur wants is to give Babool new pricing, improved
packaging and fresh communication.”

Promotion strategies

Dabur’s promotional campaigns include leading Bollywood actors and

sport stars. IN 2005-2006, key brand endorsements by celebrities
included Amitabh Bachhan for chyawanprash and Rani Mukherjee for
vatika hair oil and dabur anmol. The company also signed up Vivek
Oberoi to endorse babool toothpaste and Dabur chyawanprash.
They plan to reach out to our consumers through not only the
conventional methods of television and print advertisements but they also
plan to do a lot of outdoor activities that will include stockists, doctors
and the consumer himself.

To strengthen its presence in the southern market, FMCG company

Dabur India is all set to localise some of its products through regional
names and advertising campaigns. The company is going the whole hog
from re-christening its brands in local languages like Tamil to creating
special products with a distinct local flavour and even roping in local
celebrities as brand ambassadors. The idea being to make the brands
more easily understood to the Tamil-speaking populace.

Distribution strategies

When Dabur India Ltd (DIL) announced its intention to acquire brands
positioned on the herbal plank in the personal and healthcare segments in
September last year, the announcement left many in the industry
wondering.

Where were brands that had perceived equity and potential for further
growth? And if such brands were there in the fast moving consumer
goods (FMCG) space, wouldn't they be already spoken for? What about
ticklish issues such as brand valuation and deal size?

These doubts lingered as no announcement came from the company for

more than three months thereafter. And the general lack of acquisitions
and mergers in the FMCG segment seemed to prove the sceptics rights —
that though DIL was on the prowl, it would find acquisition a tricky
business.

But when the company finally announced the acquisition of three Balsara
group companies in an all-cash deal last week for Rs 143 crore, industry
watchers could not help nodding their approval.

After all, the acquisition is not only synergistic with Dabur's present
product mix, it also comes at a time when the company is trying to
occupy each price point in the oral care market. The deal also allows DIL
to enter the high-growth household product area.

According to industry estimates, the toothpaste market is estimated at Rs

1,900 crore, whereas the combined pie for utensil and toilet cleaners,
mosquito repellents and air fresheners is at Rs 2,000 crore. So, in one
stroke, the company has gained entry into the latter while consolidating
its position in the oral care market, analysts say.

whether the company's appetite for acquisitions was sated, DIL is open to
more acquisitions in areas where the company already operates —
personal care, healthcare, foods and now household care.

Dabur expects 10 per cent growth immediately in revenues after this

acquisition. Balsara's businesses recorded sales of Rs 199.6 crore in
2003-04 with losses of about Rs 8 crore, Duggal says, adding that the
three acquired companies will become DIL's subsidiaries. These could be
merged into DIL at a later date.

Pointing out the synergies with DIL, he says this acquisition brings not
only a complementary brand portfolio but also economies of scale in
marketing, sales and distribution. Balsara has three manufacturing sites at
Kanpur, Silvassa and Baddi. Duggal says there are no plans to rationalise
manpower at Balsara companies where the total headcount is 600.

This acquisition brings DIL toothpaste brands Promise, Babool and

Meswak; Odonil air freshener and Sanifresh toilet cleaner, Odopic dish-
washing detergent and Odomos insect repellent.

Terming the acquisition of Balsara's herbal oral care as a "good strategic

fit," Duggal says the acquired brands will strengthen the company's
existing oral care portfolio and provide DIL with regional saliency. While
45 per cent of Balsara's revenues come from the West and South of the
country, DIL's strength lies in servicing the Northern and Eastern
markets. Also, the manufacturing facilities of Balsara are expected to
provide significant cost synergies and economies of scale to Dabur India.

But while this acquisition makes sense for Dabur, why would Balsara
want to divest all its well-known brands? Duggal explains that this was
necessitated as the brands needed large-scale investments that the
promoters of Balsara were unable to make. Despite several attempts,
Balsara officials remained unavailable for comments.

In addition to the oral care and household care businesses, Balsara also
operates in the high-growth private label and herbal extracts and
complexes businesses. The fate of these two businesses after DIL's
acquisition also could not be ascertained.

Company Dabur India Ltd mark a good impact in india of FMCG product
the target is cover to all rural or urban area’s because 80% in India
Supply there product is a chain

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