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OF MARKETING MANAGEMENT ON
SUBMITTED TO: MISS. SONALI PUNJ SUBMITTED BY: MUKESH VERMA BBA-MBA (INTG.)
IIIrd SEM. R346A29
Dabur India Limited is India’s fourth largest FMCG Company. The first Dabur plant was set up in 1896 and research laboratories established in 1919. Dabur became a public limited company in 1986. In 1998, the Burman family, the original promoters, handed over the day-to-day running of the company to professionals. With effect from 1 April 2005, Balsara Home Products became a subsidiary of Dabur. Apart from Balsara, Dabur has five other subsidiaries — Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma. Dabur ended Q1 2008-09 with a net profit of Rs 70.14 crores.
Business Dabur’s product range encompasses health care, personal care, ayurvedic specialities 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.
PROFILE OF DABUR
Type Founded Headquarters Key people Industry
Public (NSE, BSE) 1884 Ghaziabad V. C. Burman Health Care, Food
Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real
Rs 1375,03 crore
NEWS RELATING TO DABUR
1. Big B, Dhoni to feature together in Dabur ad campaign New Delhi, Dec 18 (PTI) FMCG firm Dabur India today said cricketer Mahendra Singh Dhoni and Bollywood star Amitabh Bachchan would appear for the first time together in an ad campaign to promote its honey brand. Bringing the two celebrities together for the first time, the company said the campaign would make an "aggressive" pitch to establish the relevance of Dabur Honey in an increasingly tough and demanding lifestyle. 2. Hold Dabur India, target of Rs 89: PINC
PINC Research has recommended a hold rating on Dabur India with a target of Rs 89 in its December 18, 2008 research report. "The company acquired 72.15% stake in Fem Care Pharma Ltd. (FCPL) in Nov'08 for Rs 2.04 billion.
3. Dabur launches Hajmola Pudina In a bid to push the growth of its Hajmola brand, homegrown FMCG company Dabur India has extended the digestive range with the launch of a new variant - Hajmola Pudina. Further, the company also plans to undertake a host of consumer connect initiatives - by way of tie-ups with Highway Dhabas - to increase frequency of consumption by promoting post-meal consumption. 4. Anand Rathi Securities maintains SELL on Dabur 5. Dabur to integrate Fem Care by March - official MUMBAI (Reuters) - Personal care products maker Dabur India Ltd said Fem Care Pharma will become subsidiary of the company around March 2009, a top official said. Dabur, which bought a 72.15 percent stake in the fairness bleach maker, had said it would make an open offer for 20 percent in Fem Care. Shares of the company were down 5.36 percent at 80.4 rupees each in a weak Mumbai market. 6. Dabur’s growth appetite Dabur’s recent acquisition of skincare brand Fem and the price it paid for it, Rs 203 crore, has raised a few eyebrows. But the FMCG company, that owns popular brands such as Chyawanprash, Vatika hair oil and Hajmola amongst others, has met with such reactions in the past too, when it acquired the Balsara range of products. 7. Dabur freezes retail expansion plan FMCG major Dabur India has decided to hold back the expansion plan of its newly launched retail arm with an aim of capitalising more from further downslide in retail rentals that the company is expecting.
CHANGE IN MARKETING MIX OF DABUR
1. PRODUCTS The company has decided to enter businesses of soups and tomato puree under the Hommade brand and fruit drinks under Coolers. As the all companies are trying to cover the market by launching the new product therefore Dabur is also trying to cover the marker with the launch of `Coolers', a fruit-based beverage in a ready-todrink format, Dabur Foods Limited on Thursday introduced its new brand in seven years. After major success of its `Real' brand of fruit juices, through `Coolers' the company hopes to corner a chunk of beverages market that protects from excessive effects of heat during summer. The company invested Rs. 12 crores for the development of the new brand, which will be available in three variants — Aam Panna, Pomegranate and Watermelon — while Jamun drink will be launched shortly. `Coolers' brand of products will be 25-30 per cent cheaper than the `Real' juices. The new offering will be initially available in top 30 towns and 50,000 outlets. In the second phase, the distribution network would be expanded to 50 towns and one lakh outlets. The company enjoys 55 per cent market share in the Rs. 120-crore fruit juice market. Dabur is planning to expand: Aiming to tap the fast growing home cleaning products market in the country, homegrown FMCG major Dabur is planning to expand its range of kitchen and home cleaners and freshners. Dabur launches Hajmola Pudina: As I have mentioned in the previous page that Dabur launched the Hajmola Pudina In a bid to push the growth of its Hajmola brand, homegrown FMCG company Dabur India has extended the digestive range with the launch of a new variant - Hajmola Pudina. Further, the company also plans to undertake a host of consumer connects initiatives - by way of tie-ups with Highway Dhabas - to increase frequency of consumption by promoting post-meal consumption. 2. PRICE Price is one of the most effective marketing tools to promote a business because price conveys image, affects demand, and can help target a market segment. ... Every marketing strategy will have its own related pricing strategy. After running as a family business for over 100 years, when in late 1990s, the management of the Dabur was handed over to a team of professional managers, the new management faced a gigantic task of improving performance in several critical areas. In particular, working capital and cost management required urgent attention as the company's performance in these areas had been far from satisfactory. The then prevailing current ratio of 3:2 and quick ratio of 2:4 were considered too high and indicative of heavy unnecessary investments in working capital that would have a negative effect on company's profitability. Efforts to improve the working capital efficiency were met with stiff resistance from various quarters, but finally yielded results. The case study discusses the measures taken to improve the
working capital and cost management performance, and how with concerted efforts the management turned around a highly inefficient working capital management into one of the most efficient in the FMCG sector of the Indian industry. In fact, the company seemed to have taken the matter to the other extreme of negative working capital, with the current ratio declining to 0:8 and the quick ratio to just 0.4 in 2004–05. 3. PLACE Shopkeepers selling Dabur India's consumer products would now learn marketing through roleplays staged by professional actors at their shops. As part of a recent initiative titled Astra, advanced sales training for retail ascendance, FMCG major has recruited 75 sales and HR managers across the country who would educate over 2,000 distribution channel partners of the firm about the complexities of sales and distribution through the audio-visual medium. Dabur is targeting sales growth of above 15 per cent after implementing Astra, which was unveiled in May, and expects nearly 40 per cent growth in sales through modern trade and institutions, like hotels. The company also will keep a tab on its performance on a monthly and quarterly basis. Dabur has a distribution reach of 25 lakh retail outlets across the country. About 75 per cent of the company's sales come form rural areas, hence, it has created the Astra training consultancy module in five vernacular languages, Bengali, Tamil, telungu, Malayalam and Kannada. The company also expects rise in consumer spending in the rural areas and plans to spread the initiative in the rural market. Changing retail landscape in the country has compelled FMCG companies to relook at their sales and distribution models. Under Astra, Dabur has categorised its sales and distribution channels into finer segments, such as key grocers, mass grocers, chemist, wholesale, small outlet and modern trade. The programme will address specific needs and expectations of each channel in the areas such as, trade activation programmes, trade promotion programmes, brand/SKU focus, merchandising and managing channel conflict. Astra is a step ahead of Dare, driving achievement of retail excellence, introduced by the company in 2006. Dare was aimed at leveraging Dabur's brands performance in modern retail. Astra will encompass all the distribution channels including modern retail. 4. PROMOTION DABUR is focusing on the customer service and to serve their customers they are customizing their products according to the customers needs. Customized Marketing To customize = to build, fit, or alter according to individual specifications. Customized service Customized service firms offer a variety of research services that are tailored to meet the clients specific needs.
DABUR Foods has identified several new product areas it will enter to meet the Rs 200-crore turnover target it has set for itself by 2006-07. The company is targeting a 10 per cent market share of the Rs 1,500 crore home cleaning products segment in the country, over the next two years. For the promotion of the company Dabur is developing the communicating information between seller and potential buyer or others in the channel which will influence consumer’s behavior Integrated Marketing Communication on Pharmaceutical industry Integrated Marketing Communication (IMC) means involves coordinating the various promotional elements and other marketing activities that communicate with a firm’s customers Effects of Reccesion on Dabur There is no doubt that the world economic outlook has turned unfavourable. According to a recent report by the International Monetary Fund (IMF), the world GDP growth estimates have been cut to 3.7 per cent for 2008 and 2.2 per cent for 2009, which is significantly lower as compared to 5 per cent achieved in 2007. 1. Due to the reccesion Dabur India Ltd. is one of the leading FMCG companies in India. The company has a market capital of Rs. 6,532.01 corers and is next to Hindustan Unilever Ltd,, who has a market capital of Rs 43,386.21 crores in the country. The financial health of the company is to be measured based on the combination of a number of factors, such as profitability, short-term liquidity and long term liquidity. The key profitability ratios that reflects the business environment at present s given below; Return on Total Assets (ROTA) 36.04% Return on capital employed (ROCE) 58.12% Net profit margin 15.07% As FMCG companies reel under inflationary and rising input costs pressures, homegrown major Dabur is turning to its employees to improve productivity and cost saving by rewarding them for their engagements in decision making. 2. As FMCG companies reel under inflationary and rising input costs pressures, homegrown major Dabur is turning to its employees to improve productivity and cost saving by rewarding them for their engagements in decision making. Under a programme 'Applause' Dabur is recognising employees in different categories, including the trailblazer employee, the best newcomer, best suggestion for their actions which are innovative, save cost, promote team spirit, institute new initiative and raise standards of performance. 3. The FMCG sector is largely a domestic consumption story, with exports contributing around 45 per cent of total sales. However, for companies like Tata Tea, Dabur and Godrej Consumer, the contribution of their overseas subsidiaries is significant (over 20 per cent of sales). These companies haven't observed any slowdown from their international operations. Says Amit Burman, vice chairman, Dabur India, “The international business is, in fact, the fastest growing business division within Dabur, growing at almost three times the domestic growth rate.”