Table of Contents

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TOPIC
Introduction Companys Product Strategic Intent of Dabur India Limited Vision Mission Goals Objectives SWOT Analysis

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3 4 5-7 5 5 6 6 7 8-9 8 9 9 9 9 10-14 10-12 13-14 15-17 18-20 21

Strategic Intent of Hindustan Unilever Limited Introduction Vision Mission Goals Objectives

Environmental Analysis of Dabur India Limited PESTEL Framework Porters 5 forces Model Market Analysis

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Major Strategies followed by Dabur India Limited BCG MATRIX Of DABUR India Limited

Introduction
Dabur India Limited is the fourth largest FMCG Company in India with Revenues of US$1 Billion (over Rs. 5,300 Crores) and Market Capitalization of US$4 Billion (Rs. 20,000 Crores). Building on a legacy of quality and experience of more than 125 years, Dabur operates in various consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. Dabur India Limited is Indias leading FMCG Company with interests in health care, personal care and foods. It was founded by Dr. S.K. Burman in 1884 as a small pharmacy in Kolkata, West Bengal, India. The Company headquarters are in Ghaziabad, Uttar Pradesh, India. Dabur became a Public Limited Company in 1986 and Dabur India Limited came into existence after reverse merger with Vidogum Limited. Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. The products of Dabur are marketed in more than 60 countries worldwide. The company has two major Strategic Business Units (SBU) i.e. 1. Consumer Care Division (CCD) and 2. International Business Division (IBD) Dabur also has three Subsidiary group companies namely: 1. Dabur Foods 2. Dabur Nepal and 3. Dabur International; Dabur International has three subsidiaries: Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. Dabur is the Leading consumer goods company in India with a turnover of Rs. 5,283 Crore (FY12). Dabur has 2 major strategic business units (SBU) - Consumer Care Business and International Business Division (IBD) and has 17 ultra-modern manufacturing units spread around the globe. Dabur Products are marketed in more than 60 countries. Dabur has a wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 3.4 million retail outlets all over India.

Companys Products
Dabur Products
1.

Health Care: Health Supplement: Dabur Chyawanprash, Dabur Honey. Digestives: Dabur Pudin Hara, Dabur Hajmola. OTC Health Care: Dabur Honitus, Dabur Lal Tail etc. Personal Care:

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Hair Care: Dabur Amla Hair Oil, Dabur Vatika Hair Oil etc. Oral Care: Dabur Red etc. Skin Care: Dabur Gulabari, Fem, Dabur Uveda etc. Foods: Real, Activ, Hommade etc. Home Care: Odomos, Odonil, Odopic, Sani Fresh.

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Strategic Intent Vision

Dedicated to the Health and Well Being of every Household. The vision of Dabur India is one of creating health and wellbeing in every household. The company aims to provide products that will improve the lifestyles of individuals through the easing of medical conditions and the improvement of the state of the mind and body; this is its primary mission. Dabur India is India's fourth largest FMCG company, and sells a range of products relating to hair care, oral care, and other such wellbeing aspects

Mission
To be the leader in the Natural Foods and Beverages Industry. This can be done by: Consistently delighting the customer through quality products. Being the company of choice for business partners. Delivering higher returns to stakeholders.

To transform an ayurvedic company to a growing modern FMCG Player based on herbal platform one that would embody all the characteristics of a FMCG Company. Dabur is a company with a set of estab lished 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 p r a c t i c e s i n d o i n g business. At Dabur, nature acts as not only the source of raw materials but also an inspiratio n.

Goals of Dabur India Limited

To focus on growing the core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology. To be the preferred company to meet the health and personal grooming needs of target consumers with safe and detail knowledge of ayurveda and herbs with modern science. To provide the consumers with innovative products within easy reach. To build a platform to enable Dabur to become a global ayurvedic leader. To provide superior returns, relative to the peer group, shareholders etc.

Objectives of Dabur India Limited

The objective of Dabur is: To grow the business in the FMCG Sector. To build Real, Activ and Coolers into Mega brands. To Efficiently leverage the sales infrastructure, both in retail & foods services; and To Utilize and build the operations with the two new plants i.e. - Multi fruit processing facility in Silliguri and the packaging plant in Jaipur. To build exports with both the retail brands and pulp/concentrates.

SWOT ANALYSIS of Dabur India Limited

STRENGHTS
There is an Unique Ayurvedic and Health Positioning. There is an extensive market penetration with 50 C&F agents, more than 5000 distributors and over 3.4 million retail outlets all over India which acts as a strenght. There is a wide distribution network with high penetration in rural and urban areas. There is an extensive Supply Chain. There is a very high Brand Awareness of Dabur as a Brand in the market.

WEAKNESSES
There is a low penetration in Food segment of Dabur as Dabur Chyawanprash is not available in rural areas. There is a limited differentiation in Hair Oil category of Dabur.

OPPORTUNITIES
Tapping the Untapped market. Innovation building. Increase in the income level of the middle class families.

THREATS
Threats from existing competitors. Threats from new entrants. Threats from substitute products. Increase in the competition in the Food and Home Care Category.
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Strategic Intent of Hindustan Unilever Limited

Introduction
Hindustan Unilever Limited (HUL) is Indias largest Fast Moving Consumer Goods Company of over 75 years in India. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe. Unilever has about 52% shareholding in HUL.

Companys Products
1. Home Care: Surf Excel, Activ Wheel, Rin, Vim, Domex etc. 2. Personal Care: Dove, Lifebuoy, Pepsodent, Ponds, Pears, Clinic Plus, New Clear etc. 3. Food and Drink: Bru, Knorr, Kissan, Kwality Walls, Brooke Bond Red Label, Brooke Bond Taj Mahal etc. 4. Water Purifier: Pureit.

Vision
To Earn the Love and Respect of India, by making a real difference to every Indian.

Mission

To add vitality to life. To meet everyday needs for nutrition, personal care etc to make people feel good and get more out of life.

Goals of Hindustan Unilever Limited

To set out the long term direction for the company i.e. where we want to go and how we are going to get there.

To create a better future every day. To help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

To inspire people to take small everyday actions that can add up to a big difference for the world.

To develop new ways of doing business with the aim of doubling the size of our company while reducing our environmental impact.

Objectives of Hindustan Unilever Limited

To improve the quality of peoples lives and in doing the right thing. To understand the importance of global challenges such as climate change.

Environmental Analysis PESTEL Framework

Political Factors
Political factors includes tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors also includes goods and services which the government wants to provide or be provided and those that the government does not want to be provided. Various political factors that takes place in the growth of Dabur India for the FMCG industry includes reduction in excise duties, relaxation of licensing restrictions and reduction in the dominance of an unorganized sector. The government thrust on agriculture and rural economy has facilitated improved demand for the FMCG products.

Economic Factors
Economic Factors includes economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Due to various economic factors, FMCG Sector is rising with a growing GDP. The growth is expected to come from various new segments through increased rural penetration. Use of Internet and e-commerce will improve the Procurement, Distribution and selling efficiencies of the companies. Better reforms and investment policies attract foreign investments which improves the standard of living of the people. Thus as a result, with improved standard of living more and more consumers prefer using branded FMCG products will upgrade themselves to premium products. Dabur made retail venture under the health and beauty segment though a wholly subsidiary by selling products.

 Social Factors
Social Factors includes the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Dabur Toothpaste as the consumer shifts themselves from toothpowder to toothpaste. More of the total shampoo sales were through sachets. Thus, the company launch Dabur Shampoo sachets.

Technological Factors
Technological Factors includes ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. The market size of bleach products in India is around Rs 85 crore and isgrowing at 15% with Fem holding 60% market share in it. The market sizeof hair removing cream is around Rs 110 crore and is growing at 22% withFem having around 7% market share. Dabur acquired 72.15% stake in Fem Care to provide the company with technology to enter high growth skin care market. Production & technology center is being set, to ensure that the brand maintains the

highest level of quality & innovation. Dabur Chyawanprash is adding technology for launching its new product of Chyawanprash, the sugar free Chyawanprash for diabetes patient and the Dabur Chyawan junior in chocolate flavor for children, with the aim of improving customer experience and increasing supply chain efficiency.

Environmental Factors
Environmental Factors includes weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance.Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new markets and diminishing or destroying existing ones.

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 Legal Factors
Legal Factors includes discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Marketing decisions are strongly affected by development in the political & legal environment. This environment is composed of laws, government agencies and groups that influence and limit various organization and individuals. This law also creates new opportunities for business.

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Porters 5 Forces Model of Dabur India Limited

Threat of New Entrants

Threat of Bargaining Power of Buyers

Threat of Competitors

Threat of Bargaining Power of Suppliers

Threat of Substitute Products

1. Threat of New Entrants

The entry barriers are low in case of home care segments due to low manufacturing cost.

Firms can enter and exit easily as the exit barriers are low. 2. Threat of Competitors
Existing players are entering new segments which increases the competition. Premium personal care products favce competition from international brands. The threat of competition is high because of lots of players in the market. Threat of competition in the ayurvedic segment products from Emami and Ayur. The competitors of Dabur India are: Hindustan Unilever Ltd, Nestle India Ltd., Britannia Industries Ltd, Colgate Palmolive Ltd., Marico Ltd Glaxo Smith line consumer, Cadbury India ltd, Procter & Gamble etc.
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3. Threat of Substitute Products

Product Innovation is high. Threat of substitute product is high in Food category.

4. Threat of Bargaining Power of Suppliers

Low number of Suppliers. There are low number of suppliers especially in the home care category. Suppliers switching cost relative to firms switching cost. Degree of differentiation.

5. Threat of Bargaining Power of Buyers

There is a very high level of Price Sensitivity in the Food and Home Care category. The bargaining power of buyers is low as they cannot influence the prices. Buyers switching cost relative to firms switching cost. Availability of existing substitute products.

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Market Analysis
The Strategic positioning of Honey as a food product is leading to market leadership of over 75% in branded honey market. Dabur Chyawanprash is the largest selling Ayurvedic medicine with over 65% market share. Vatika has been the fastest growing hair care brand in the Middle East. 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.

Market Share-Health Supplements

3% 13% 11% 67% 7% Dabur Others Baidyanath Emami Zandu

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Market Share- Digestives

36% Hajmola 56% 8% Satmola Others

Market Share- Foods

13% 52% 35% Dabur Pepsi Others

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Market Share- Oral Care

14% 13% 23% Dabur HUL 50% Colgate Others

Market Share- Skin Care

7% 18% 7% Dabur HUL Cavin Kare 6% 3% 59% L'Oreal Othes Emami

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Major Strategies followed by Dabur India Limited

1. Marketing Mix Strategy: It includes the 4 ps namely:
Product:

It focus on high quality product. Price:

It includes Integrated pricing policy, Penetrative pricing in the cash cows like Health Supplements, Digestives and Home Care and Premium Pricing in Skin Care category. Place:

It includes Intensive Distribution for Hair Care, Home Care, Food Division and Health Supplement and Exclusive Distribution for Skin Care products. Promotion:

It includes the Use of Celebrity Endorsements, Change of Logo and Design, use of shampoo sachets, conducting various events etc.

2. Expansion Strategy: Strengthening the presence in existing categories, markets and entering new geographies. Maintaining dominant share in categories like Health Supplements and expanding market share in other categories.

3. Acquisition Strategy:
Acquisitions in existing categories and markets. Targeting opportunities.

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4. Innovation Strategy:
Strong focus is on innovation. Changing of existing products to respond to changing demands. For example: Toothpowder to Toothpaste. 5. Distribution Strategy: Distribution strategy includes: Dealer Wholesaler Agents Retailers Departmental Stores

Dealer

Wholesaler

Agents

Retailers

Departmental Stores

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6. Differentiation Strategy:
Differentiated approach is applied in all the business segments. For Health Care, Food Division and Home Care segment or category: Expand the total market and Expand the market share. For Hair Care segments and Oral Care segments: Challenger Strategy. For Skin Care segments: Nicher Strategy.

7. Regional Branding Strategy. 8. Promotional Strategy.

Principles of Dabur India Limited

Ownership Passion for Winning People Development Consumer Focus Team Work Innovation Integrity.

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BCG MATRIX OF DABUR INDIA LIMITED

Stars Real Juice Market Growth Rate: 30% Market Share: 60%

Question Mark Vatika Shampoos (Hair Care Segment)

BCG Matrix
Cash Cow Vatika Hair Oils (Hair Care Segment) Chyawanprash Market Growth Rate: 5% Market Share: 60% Dogs Dabur Amla (Hair Care Segment)

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