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Dr. S.K Burman started Dabur in 1884 4th largest FMCG company in India Revenues of US$750 Million (Rs 3416 Crore) Market Capitalisation of US$3.5 Billion (Rs 16,000 Crore) Perceived as a Herbal brand Took over Balsara hygiene and home products business- Largest Acquisiton Launch of NUTRiGO in January, 2011
Management Founder: Dr. S K Burman (1884) Chairman: Dr. Anand Burman Vice Chairman: Amit Burman CEO: Mr. Sunil Duggal
Vision & Values Vision Statement "Dedicated to the health and well being of every household" .
Values Ownership Passion For Winning People Development Consumer Focus Team Work Innovation Integrity .
PESTLE. ) which will cut business costs . Uttaranchal and Jammu & Kashmir encouraged companies to set up manufacturing facilities in their regions through a package of fiscal incentives FMCG companies eagerly awaits goods and services tax (a single nationwide tax. resulted in a boom in the FMCG market through market expansion and greater product opportunities Excise and import duty reduced substantially Various states governments like Himachal Pradesh.Political factor Abolishment of µlicense raj¶ and liberalization of Indian economy.
the FMCG companies have to tackle inflation .Pestle.Economic factors India is one of the largest economies in the world in terms of purchasing power The demand in FMCG sector is expected to triple in value by 2015 from its 2008 value. driven by the rise in the share of the middle class According to the BRIC's report indicates that India's per capita disposable income is expected to rise to USD 1150 by 2015. However. The fast rising economic performance of Indian Economy has created an environment of optimism on the part of the investors to invest more.
2 per cent of the total households in India (742 million) reside in the rural areas (2001 census) Rapid urbanization.18 billion people (estimate for April. 2010) Around 72.Pestle. leading to an explosion of new opportunities . with over 1. increased literacy and rising per capita income have all caused rapid growth and change in demand patterns.Social factors India is the second most populous country in the world.
15 crores in hardware and software for its go downs and branches to be directly linked with its headquarters through direct emails Legal Indian Laws pertaining to Consumers.Technological and Legal factors Technological Indian consumers are becoming internet savvy FMCG firms need to be up-to-date to stay ahead of the competition The country is seeing technological developments like the EDI (Electronic Data Interchange) Dabur invested Rs. Health and safety are applicable for Dabur .Pestle. labour. Employments.
SWOT Analysis .
Strengths Strong presence in well defined niches(like value added Hair Oil and Ayurvedaspecialties) Core knowledge of Ayurveda as competitive advantage Strong Brand Image Product Development Strength Strong Distribution Network Extensive Supply Chain IT Initiatives R & D .a key strength .
Weakness Seasonal Demand( like chyawanprash in winter and Vatika not in winter) Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd of the total market(Vatika) .
Opportunities Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation Increasing income level of the middle class Creating additional consumption pattern .
Threats Existing Competition( like Himani.HLL and Bajaj for Vatika Hair Oil) New Entrants Threat from substitutes (like Bryllcream for Vatika hair oil) .baidyanath and Zandu for DaburChyawanprash and Marico.Keo Karpin.
new product launches and acquisitions.Strategic Planning Corporate Level strategy: Focus is on expansion in domestic and foreign market. This strategy has paid rich dividends for Dabur and has delivered sales growth ahead of the consumer non-durable sector average . which will increase sales and profits.
The growth strategy for international markets would revolve around EXPANSION. Dabur India has also chalked out its plans to enter the health and beauty RETAIL market in the country. . Taking help of ACCENTURE to improve the supply chain and distribution network. Dabur also aims at achieving doubled sales by aggressive ACQUSITIONS.Strategic Planning Business Level Strategy Dabur laid down a business strategy called ASTRA to boost rural sales and to achieve a steady growth in retail.
small outlet and modern trade. mass grocers. Dabur has categorized its sales and distribution channels into finer segments. and expects nearly 40 per cent growth in sales. wholesale. Malayalam and Kannada. . About 75 per cent of the company's sales come form rural areas. it has created the Astra training consultancy module in five vernacular languages . It runs refresher-training courses every six months.Strategic Planning Functional Level Strategy Dabur is targeting sales growth of above 15 per cent after implementing Astra. hence. chemist. Under Astra. Telugu. Tamil.Bengali. such as key grocers.
Dabur SBU s: Dabur India Limted has 3 major strategic business units: Consumer Care Division Consumer Health Division International Business .
Dabur. 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.Their Strategic Intent Focus on growing our core brands across categories. 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. within and outside India. reaching out to new geographies. attracting. developing and retaining quality personnel . efficacious.
The Dabur Strategy Dabur is present in categories ranging from mosquito repellents and juices to face packs and honey. some acquired and some developed in-house Dabur believes in in few power brands that are nurtured to offer huge returns It aims to create a few champion brands to result in sustainable margins .
e. a new brand must contribute to common overheads and by the fifth year. Dabur and Vatika Dabur the strategy for a new brand launch.by the third year.The Dabur Strategy Dabur leverages under its two power brand i. it should make "some profit³ The company does not intend to be the market leader but aims at growing faster than the market Dabur is consciously entering only those categories that offer a platform for herbal products .
Dabur outsources To build competitive edge. Dabur asked Accenture to help identify specific opportunities that would lead to short-term advantage and long-term growth Accenture recommended a two-pronged strategy: ± migration to a nimbler outsourcing model that would generate value through agility ± support business initiatives and maintenance of its SAP enterprise resource planning (ERP) system .
± Developing value realization project .Measures Taken Accenture launched a three-phase ERP improve-ment program that involved: ± Correcting the transactional and management information systems. ± Conducting change management and synchronizing Dabur¶s business processes with realities in an ERP context.
Leveraging IT for business initiatives ± By designing a Web-based demand planning and trade promotion forecasting tool. and installed point-of-sale software at select retail and wholesale sites Outsourcing IT operations New sales and distribution strategy was implemented .
Market share and Growth rate for SBU s .
BCG matrix as per SBU s International Business Division Consumer Healthcare Division Consumer Care Division .
.Growth rate and market share of business categories in Dabur IL.
Honey. Fem) . Babool.BCG matrix as per business categories HealthSupplements(Chyawa nprash. Activ) HomeCare(Odonil. Odomos. Glucose) Foods(Real. Vatika Shampoos) Digestives(Hajmola) Skin Care(Gulabari. Sanifresh) Oral Care(Dabur Red. Meswak) Hair Care(Dabur Amla. Vatika Hair Oil.
Porter s Five Forces Model .
1) The threat of substitute products: threat of generic substitution happens where products and services compete for disposable income sells a lot of varied products in all price range should ensure that it offers quality products for all income groups 2) The threat of the entry of new competitors: Dabur should focus on product differentiation one of the most trusted names in the FMCG sector enjoys a loyal customer base .
Tata Tea.. as the demand increases. strategy in order to increase its global dominance If a company doesn't differentiate its products leads to an increased rivalry between competitors . should focus on aggressive marketing strategy should focus on targeting middle aged consumers 3) The intensity of competitive rivalry: players and competitors are Hindustan Unilever Ltd. Marico Ltd. Britannia Industries Ltd. Colgate Palmolive Ltd... Nestle India Ltd..
shareholders .4) The bargaining power of customers: have increased dramatically with Globalisation Improve the quality and reduce the prices over the period 5) The bargaining power of suppliers: very strong bond with the suppliers policy of having good relations This helps in having a good relation with the suppliers being accountable to stakeholders.
Future Strategies Focus on growing its core brands .reaching out to new geographies leveraging technology Strive for top recall Become global ayurvedic leader Innovation of Products Be a professionally managed employer Provide superior returns to shareholders & customers .
Future Strategies Stress on making more competitive logistics and inventory management system Advertising strategy for rural markets Retail Stores Implementation of ASTRA .
Presented By: Sanjeev Vishwakarma 76 Shilpa Panda 93 Rashmi Vishth 95 Megha Gandhi 96 Varidhi Agarwal 117 Jitendra Sharma 118 .
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