Business Strategy

Student’s Name- Bishal Singh.

Along with an adverse effect on peoples' health, the pandemic has no surprisingly crippled
economy of any nation. Initiating from Wuhan, China the virus has spread two to three people at
a time—across 212 countries and territories. Starting at July 16, 2020, the virus has affected in
excess of 13,580,303 individuals, with 584,205 deaths. Europe is the most exceedingly terrible
struck district as far as case and fatalities; however significant focal points are developing in
North and South America[ CITATION Nat20 \l 1033 ] . In the context of Nepal there are 6056 active
cases and 39 deaths as of today. Our leaders took effective decision on time to go for a lock
down and minimized loss of lives. However, normal life of people is vulnerable. The more
constant hardheartedness is Corona going on for longer than anybody hopes in this expanded
globalization. The circumstance is disturbing; despite the fact that we are yet to encounter full
effect and repercussions of the pandemic, this novel threat has already assimilated economic
vulnerability among us all. Individuals are stressed as still we don't think a lot about this fatal
situation and how profound and across the board the financial aftermath will be. However,
striving to digitally accelerate banking and other sector, FMCG and education is good but
perhaps not possible to meet needs of all level of citizens.  Political pioneers ought not to make
inside rebellion and see personal responsibility, notwithstanding work collectively towards
mitigation and economic progress. 

Since working as an assistant marketing manager in a Dabur Nepal Pvt.ltd, I have been obliged
to provide a competitive analysis, evaluation of internal and external environment along with a
short term strategic management plan in the context of mitigating aftermath of pandemic.

Short overview of company

Dabur today has become international’s biggest ayurveda and natural healthcare business
enterprise. Dabur entered Nepalese marketplace within the year 1989 and started commercial
manufacturing in year 1992. Considering the fact that then it has contributed substantially to
Nepal’s exports developing about 1,000 direct employments and approximately 20,000 indirect
employments in the nation. Dabur Nepal Pvt. Ltd is one of the subsidiary of Dabur India Pvt.Ltd
(home country) established by Nepalese investors and Dabur India Pvt.Ltd with a concrete aim
of serving Nepalese people with homemade products and hygiene products and to carter
remarkable hand in, economic development of the country. As of Managing Director of Dabur
Nepal Pvt Ltd Mr. Rukma Shumsher Rana, with a starting turnover of Rs 5.3 million in 1992,
Dabur Nepal has crossed the annual turnover of Rs 10 billion by the year 2016-17 [ CITATION
The17 \l 1033 ].

The two most effective and widely used framework in business SWOT and PESTLE help in a
large extent for any venture to grow and grasp organizational productivity. It is conspicuous fact
that SWOT analysis is aligned to comprehend company’s internal strengths and weakness
whereas PESTLE emphasizes on external factors. Thereby, before stepping into any other
strategic direction and formulation it becomes significant to viably analyze strengths, weakness,
opportunities and threats of a business venture.

Key strengths of DNPL(Dabur Nepal Private Limited )

 Variety of products
 Having a range of products and services are itself an immense strength for a company.
DNPL is the subsidiary of leading Multinational Company of Dabur India Pvt. Ltd. The
company has been providing large number of alternatives, the key manufacturers for Dabur
Nepal over the years have been Real, Burrst, Dabur Chyawanprash, Hajmola, Dabur Glucose-D,
Dabur Red Toothpaste, Dabur Amla Hair Oil, PROstyle and Dabur Honey and other variety of
skin care, oral care, shampoos and health supplements[ CITATION DAv95 \l 1033 ].

Dabur Nepal has been concerned in more than a few fields and sectors such as fitness care, non-
public care, food products, home care and purchaser health- moral alongside with expert range.
Therefore, this multiple brands have advantages over competition. Since, filling the market
complementary product of the same company is likely to make niche space for substitute
products in market.

 Efficient distribution

A viable distribution strategy has a significant role to successfully place company’s product in a
marketplace. In FMCG industry, conveyance assumes a crucial role. In order to make the items
accessible to each niche and Corner Company needs to pick the most correct system thus Dabur
has a three tier distribution system (carrying and forwarding agent-to authorized distributors-to
wholesalers-to retailers and final consumers.)

 Consistent planning

In consideration to altering enterprise surroundings Dabur has been successful to continue its
company image via making Nepalese market get entry to large spectrum of products, and
subsequently has been restructuring its target by focusing on people as per the age groups and
buying behavior. Also, the Dabur products has upperhand in advertising. Recently, the Nepali
actor Rajesh Hamal became the brand endorsement for Dabur Chyawanprash to amuse the
customers and lot more others strategy through proper optimization of Digital marketing
strategy.

Key weakness of DNPL(Dabur Nepal Private Limited )

 Expensive

The Dabur Products are quite expensive as compared to other products. For, e.g. Real juice costs
more than that of cola, BRU Litchi, and Pepsi, additionally real fruit juices are perceived less
value for money option by Nepalese consumers as compared to Coca-cola and Pepsi. Thus,
consumers have perception that Dabur’s products are quite expensive thus setting price becomes
the most conscious factor when it comes to Nepalese market.

 Consumer habit

Somewhat in contrast to in western countries fruit juices are related to each time meal, right here
in Nepal people are probably to purchase rarely, for. e.g. during the exclusive occasions, to serve
guest, for that reason in has have an effect on upon the discount of purchase. In the context of
fairness cream women in cities area already have more inclination towards Lakme, L'Oreal,
Nivia and Ponds.

 Packaging issues:

Real Fruit Juices do no longer have components or preservatives and therefore the corporation
has had to invest profusely into determining new innovations for packaging in order to keep the
freshness and nice quality of their drinks. On the other hand, customers often argue that the fruit
juice have failed to keep the fresh test and is alleged to add medicinal flavor to it due to which
clients are not getting the desired taste.

Major opportunities for DNPL

Having said that every problem bring opportunities, likewise DNPL could enhance their service
and make their products easily approachable at a door step of every people via effective strategic
planning. This would help to gain more consumer perceived value as well as brand loyalty.
Additionally, there is huge possibilities of creating monopoly as there are few MNCs operating
in Nepal, therefore tapping the market of Nepal and adopting the penetration pricing can be
beneficial for the company to have economies of scale. Ayurveda has become a platform to gain
much more concern throughout Nepal, and thus better scope for the health related supplements
of Dabur to capitalize the market sentiment. Besides, unsuitable and unhealthy meals habit as
well as fear of corona has compelled people to obtain ayurvedic complementary which is also a
plus point for the company since Dabur has also been well known for ayurveda.

Threats
The numb competition has become huge threats for DNPL. The company has been facing
decline rate of sales in ayurvedic products due to the inclination of people towards Patanjali and
other competitors like Coca-Cola, Pepsi, Mirinda, Slice, Maaza, Frooti, and Tropicana etc. After
launching the fairness cream the company is likely to embrace competition with FMCG
Patanjali, Himalayn, Ponds, Nivia, Lo’real paris and other domestic and foreign brands in Nepal [
CITATION Ste12 \l 1033 ]. The political instability of Nepal can become a large barrier to the
smooth operation of the company as they might impose high tax rates to the products and shut
down of organization is also likely if the political insurgence occur. Thus, inflation rates are
bound to increase the price of goods and likely to have impact upon the selling frequency. In
respect to Nepal, Dabur is highly depended on distributors and retailers, thus unable to maintain
interpersonal relationship can create losses. Apart from all these, the Nobel fear has been caused
by pandemic situation because profitability of the company has massively declined and the
products are not in the process of assembling which would create a massive problem if continues
and being deficient in implementing viable plan. DNPL had strategic plan to launch new product
which has got stacked because of pandemic.

Internal environment and capabilities

Internal environment and capabilities are somehow manifested by SWOT as it concerns hugely
on internal environment. Unlike, internal factors micro environment are controllable to some
extent. The micro components of DNPL include shareholders, suppliers, marketing
Intermediaries, competitors, customers and employees.

The following internal environment and capabilities would act as a tonic for the smooth
operation of business during pandemic. These components include mission and objectives of
organization, value system, organizational culture, system, business structure, leadership styles,
resources and Philosophy of management.

Mission

The mission statement of an organization is an affirmation of what they do each day. It

characterizes the everyday task of their work and each individual who works for the association
adds to that mission. It is current-focused and can change rapidly relying upon the conditions of
the business' market. For DNPL's employees it gives feeling of direction about the estimation of
their work The statements of mission build up a system for the conduct of those working in the
organization regardless of whether they do numerous and differed sorts of work in their
individual department. At present, the statement of purpose for DNPL remains similar to “Being
a leader in natural FMCG industry and aims in offering quality products and distributors higher
returns to stakeholders.”

Vision

Since a vision proclamation is utilized to coordinate by and large key objectives for an
organization, they tend not to change all the time. Every objective is another progression on the
way toward accomplishing the general vision of the organization. Vision explanations are written
in the present tense yet at the same time serve the future of the undertaking. The vision
statement of Dabur refers to “Dedicated to the health & well being of each household" this vision
statement clearly portrays the vision of DNPL( Dabur Nepal Pvt.Ltd.).

Objective (HOW MUCH OF WHAT WILL BE ACCOMPLISHED BY WHEN)

When an organization has built up its mission, its subsequent stage is to build up the particular
objectives that are centered on accomplishing that mission. Objectives allude to explicit
quantifiable outcomes for the organizational growth. A company's objective by and large spread
out the amount of what will be practiced by when. In order to have competitive advantage there
should always be SMART objective[Specific, Measurable, Achievable, Realistic and Time
specific]. For instance, by November of this year, enhance 30% revenue from Dabur’s Ayurveda
product segments.

Strengths of setting SMART goals

It is obvious that DNPL focuses on setting smart goals and objectives. It explains end vision
because without an appropriate vision and objective setting, the individual will be meandering
around without a legitimate aim. Setting SMART objectives doesn't let association to endeavor
on those points which are not distinct and are uncertain in nature while it would just prompt
wastage of capital and time. It also helps to meet and identify the missed targets as it makes it
easier to measure what the status of the objective is.

Organizational values-

DNPL emphasizes on implementing three core values within organization, namely innovation
(not imitation), honesty and respect. These values help to create high-performing team who
acknowledge duty and obligations as an individual and as a group. Colleagues don't accuse each
other for errors and disappointments. Anyone rarely spend time in personal justifications.
Concentrating on problem solving is a basic characteristic thing for effective groups. There can
be trust between colleagues when each team member feels free to share their opinions which
help in effective decision making process.

Integrity and ethics- DNPL simply put the principle of integrity and ethics. The company
endeavor to devise whole business on the establishment of genuineness and trustworthiness goes
far into building a solid, confiding in relationship within organization.

Respect- An organization has an obligation towards its individuals and, in the event that one of
its employees is demonstrating most extreme regard to colleague, it's the fact that company will
have a low worker turnover.

Innovation( Not Imitation)- Organizations that emphasis on being in front of their

overwhelming competitors and presenting new thoughts in the commercial center follow the
standard of "innovation, not imitation."

Goal/Purpose driven organizational culture

The purpose driven culture of DNPL has major strengths over achieving set targets smoothly. It
is because it has devised several cultures to meet any goals and objectives of the company such
as effective communication flow, culture of feedback, teamwork, focusing on persistent growth
and development. Furthermore, DNPL has maintained work-life balance of employees through
flexible working hours, rewards as employee of the year, sales award and various other
incentives like free holiday trip, bonuses etc. which greatly contribute to motivate towards goal
achievement.
Resources
DNPL has major strengths over employees, technological abilities and budget or fund that is
generated from revenues and shareholders. ERP Individual's capabilities, profound knowledge of
operations, productive working flair, teamwork capacity they can produce goods or services
more efficiently and effectively than another commercial enterprise and their overall
performance in all of the useful departments lead to success of goals and organization. DNPL
supports employee participation in decision making that leads to more accurate and effective
implementation of plans and strategies on behalf of organizational success. For instance,
involvement of staffs and workers in decision process with top level management on a same
table, allow more efficient plans and polices due to combines sharing of thoughts, knowledge
and ideas, besides this process enhances morale, and commitment toward the organization.

Implication of functional business structure and SBUs

The entire organization is categorized into numerous divisions based on significant tasks to be
performed. Every division has a head of department. These produces more and better work being
executed in a lot lesser time. Consequently, the advantages of specialization become accessible.
All the people working inside an office are expertise of their individual employments. It makes
coordination simpler at the departmental level. It helps in expanding administrative proficiency
due to which duplication of work is not possible. For instance, the financial function is just
completed by the account office. It makes it conceivable to use the human and different resource
successfully.

SBUs( Strategic Business Unit) has made it easier for DNPL to handle multiple brands and make
the strategies work better for each product. Four major SBU’s ( Strategic Business Units) under
DNPL are CCD(Consumer Care Division), International Business Division(IBD), Consumer
Health Care Division(CHD) and retail. It is extremely easy to change procedure and strategy for
every specialty unit in light of the fact that each unit is independent of the other. The directors of
the specialty units get more autonomy to deal with their own unit which offers them the chance
to be increasingly innovative and enables them for improved decision.

Hence, the internal environment of DNPL is so exceptional that it could make endeavor to make
an effective strategic planning to run consistently during the situation of pandemic.
Analyzing competitive environment

Porter's Five Forces model is a system that helps dissecting the degree of competition inside a
specific industry. It is particularly valuable when beginning another business or when entering
another industry division. As indicated by this model, competitiveness doesn't just originate from
contenders. Additionally, the condition of rivalry in an industry relies upon five essential powers:
threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of
substitute products or services and rivalry among existing competitors[ CITATION Ass09 \l 1033 ].

Competetive
rivalry within
industry

Bargaining Bargaining
power of power of
suppliers buyers

Threat of
Threat of
substitute
new entrants
products

Thereat of Substitute Products or Services

  This power concentrates how simple it is for buyers to change from a business' item or
services to that of competitors. The presence of items outside of the domain of the
common product line builds the inclination of clients to change their options when
change in price and other factors that allure them. For example, Dabur Red Colgate and
patanjali’s Dant kanti, however there is more chances that consumer can incline their
preference when one brand’s price increases. Substitutes present for DNPL are of high
quality however are much progressively costly. Comparatively, DNPL sell at a lower cost
than substitutes, with sufficient quality. This notifies that purchasers are more averse to
change to substitute items. This implies the danger of substitute items is powerless inside
the business.

Threat of new entrants

 In terms of DNPL, the product differentiation is strong inside the business, where firms
within the industry sell differentiated items rather a normalized item. Clients additionally
search product differentiation. There is a solid focus on promoting and client benefits too.
These variables make the risk of new entrants a weaker power inside this industry in case
of DNPL. The capital prerequisites inside the business are high, hence, making it hard for
new entrants to set up because of higher expenses and overheads. Capital use is
additionally high in the context of high Research and Development costs. The legal
procedures and government policies inside the business require severe permitting and
legitimate necessities to be satisfied before a new entrant can begin selling. These
variables make threat of new entrant weaker force for DNPL.

Rivalry among existing firm

 This looks at how exceptional the present competition is in the market that is determined
by the number of existing competitors and what they are capable of doing to beat the
competition. Rivalry is high when there are fewer organizations selling their product and
services, when the business is developing and when purchasers can easily alter to change
competitor's product and services at low price. It could lead to insecure business’s bottom
line due to massive competition in price, promotion and advertising [ CITATION Hil07 \l
1033 ]. In case of DNPL not all the rivals compete through pricing but competition exists
 in the form of innovation and marketing these days. The less number of competitors have
huge piece of market share. This implies these will participate in serious activities to pick
up position and become market leader. This makes the competition among existing firms
a stronger power within the industry which signifies that DNPL should remain alert and
put on strategic actions wisely.
 DNPL is developing each year and is relied upon to keep on doing this for a couple of
years ahead. A positive Industry development implies that competitors are unlikely to
participate in serious activities since they don't have to catch piece of the overall industry
from one another. This makes the competition among existing firms weaker within the
industry.
 The techniques and strategies of the organizations inside the business are various and
diverse. This lead to running head-on into one another in regards to strategy. This makes
the competition among existing firms a powerful component.
 Key current competitors for DNPL are Hindustan Unilever Ltd., Tata Tea, Nestle,
Britannia Industries Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo Smithkline
customer, Cadbury India ltd., Reckitt Benckiser Ltd., Procter and Gamble. Since the
business is developing at a quick pace as is the number of players. So DNPL needs to
continually should have keen insight at its procedure so as to build its worldwide
predominance.

Bargaining power of suppliers

This factor analyzes how much power a business' provider or supplier has and how much control
it has over the possibility to raise its costs, which in consequence brings down a business'
productivity and profitability[ CITATION Jaw18 \l 1033 ]. It is the fact that suppliers are likely to
have more power when business have less number of suppliers for their raw materials and other
resources. In contrast, reduced power when businesses have multiple suppliers. The number of
suppliers in the industry in which DNPL executes has great deals with purchaser. This implies
the providers have less command over costs and this makes the bargaining power of suppliers a
weak force. The suppliers of DNPL has already established huge consumer base due to which it
has great control towards buyers. In consequences, more bargaining power of suppliers within
the industry.
Bargaining power of Customers

This alludes to the pressure that consumers can exert to businesses in terms of pricing, quality
and so on. Buyers have power when they are less in number however there are various sellers
offering the same item and it's simple for purchasers to switch [ CITATION Kim12 \l 1033 ]. On the
other hand, purchasing power is low when buyers buy items in limited quantities and the dealer's
item is totally different from that of its rivals and when any business has created monopoly in
market.

 The product differentiation of the business is high, which implies that the purchasers can't
discover alternative for a specific item. This trouble in making changes in brand
preference. Thus, reduced bargaining power of consumer within the industry where
DNPL operates.
 It is obvious that disposable income of Nepalese consumer is low due to which they are
compelled to procure at low costs, making the purchasers more price sensitive which
makes low bargaining power of buyer.

After having a critical insight on various strategic direction and concepts along with
environmental analysis of DNPL(Dabur Nepal pvt.ltd.).Now time has come to formulate and
implement strategic management planning in the context of smooth operation on business even
in pandemic situation. This short term strategic management plan would only focus on short term
objectives to be fulfilled within six month of time.

Strategic Planning for Dabur Nepal Pvt. Ltd. (DNPL)

Acknowledgement

This field of report is prepared for the requirements of Business strategy programs under the
faculty of BTEC HND in Business 3rd semester at ISMT College, Kathmandu, Nepal. I wish to
acknowledge my guide to Mrs.Hema Poudel, course tutor for ISMT College who provided us
significant guidelines and suggestion during lecture hours for the preparation of this strategic
management planning.

Stage 1- Situational analysis

Dabur real juice is the quickest selling product amongst the FMCGs (Fastest Moving Consumer
Goods) because of the product's comfort, high-quality, affordable pricing and brand loyalty. The
Dabur Nepal has enhanced its products in FMCGs varieties due to maximum achievements; in
addition Dabur Nepal has been producing quite number FMCG products from fruit juice to
Ayurvedic proprietary fitness care gadgets to special sanitary/toiletry goods[ CITATION New17 \l
1033 ]. The company is encountering large competitors in market, mostly in fast moving
consumer goods like edible products, skin care and other health care ayurvedic products. The
Nepalese customers have end up smarter, conscious, and satisfactory-, rate- and logo-conscious
and organization ought to preserve the consumers satisfied if we're to stay in the long run.

In terms of skin care, apart from Nivea, ponds, Loreal and Unilever the Korean and Japanese
brands hold a huge portion of the cosmetic market in Nepal. As per a Korean dealer, month to
month deals of Korean and Japanese excellence items aggregate around Rs2.5 million. Ximiso,
Miniso and Mumuso brands of cosmetic have increased huge notoriety in the Nepali market
inside a brief timeframe. On the other hand, after having porter’s analysis in terms of DNPL
shows the strengths over threat of new entrant which is one of the advantages that DNPL can
compete with its new product.

Step 2- Significance of strategic plan

Since the day of lockdown due to pandemic, the corporate has not been able to operate viably
which has created several impacts such as lack of resources, manufacturing inefficiencies and
deficit in profitability in general. Though work from home has been given priority, would it
become a perfect fix? What technologies additions and strategic action plan would leverage the
current situation?

Step 3- Measureable goals and objectives

 To enhance the market share of DNPL’s product segment and make a stable growth by
the end of the December 2020.
 Maintain consistency in innovation of new product and restructuring the existing
products if required.
 To adopt cost leadership approach so as to enhance competitiveness.

Step 4- Strategy formulation and implementation.

PFM People-First-Mindset

The absolute main goal of an association during a pandemic ought to be the wellbeing and
prosperity of its workforce. Employees can't concentrate on work duties when their prosperity
and that of their family are in danger. The workforce environment should be made exceptional
that no one would have fear of getting infected. The organization should incubate all the social
distancing and guidelines from WHO and work accordingly. Employees should feel like they are
being taken care which in return would create efficiency and consistency at work.

Distribution strategy

Being a FMCG, the products are more often on demand and it becomes significant to fill racks of
distributors and retailers. It would be viable option for company to invest more in e-commerce
sites so that all the online distribution sites would have DNPL’s product always on stock.
Strategic allies with food service distributors would further assist to meet demand on time.

Product strategy

The consistency should only be given to those products which are high in demand in this
pandemic situation. New and innovative product can be developed in Ayurveda segment with
regards to stimulating immunity power which would gain massive market share during this
pandemic as well as benefit people’s health.

Warehousing strategy

It is the fact that action plans for the product would only remain formulated if FMCG corporate
like DNPL lacks perfect warehousing and stock management strategies.

The product needs to remain durable and fresh during this pandemic situation since product
cannot move fast often. The warehouse strategy would further help to reduce operating expenses
and achieve economies of scale.

Implication of hybrid strategy-

Differentiate the product in marketplace in terms of quality, better delivery and uniqueness. In
addition, establishing penetration pricing would help to maintain cost leadership among the
competitors and alternative products. Since price penetration refers to lowering the price of new
products while placing in market initially. Thus, it helps to accomplish the hybrid strategy where
aim is to maintain product differentiation and cost leadership in marketplace that eventually
leads to beat the fear of rivalry or competition. Hence, making the price affordable amongst the
competitors would devise cost leadership and boost up sales during pandemic.

Promotional strategies-

Now it’s time to give more effort to promote highly used and demanded product segments after
assuring the company has fulfilled above mentioned strategies. The promotional schemes like
free sanitizers while procuring of DNPL’s product. This would help to differentiate product and
enhances competencies. Investing in advertisement would help to gain more attention as people
are at home due to lock down. Advertisements ought to manifest consumer health and safety in
an influential way.

CSR (Corporate Social Responsibility)

This is a two-way road. Similarly as the society impacts the organization, the organization is
likewise ready to impact the economy and society where it works. This implies it's difficult to
totally isolate an organization from the outside world. The CSR activities during pandemic
would accelerate the brand image thus this part should not be taken as granted.

Step 5-Strategic Control

Regular monitoring of outside and inner determinants of action and progress in attaining
strategic goals, assessment about effectiveness and advertising and marketing excellence, this
could be completed by way of top degree management or marketing auditor in DNPL.
Furthermore, profitability and efficiency control is all depended upon marketing manager is
accountable for effectiveness of tactics like advertising, sales, promoting, distribution and have
leverage over profitability of the product, place, consumer phase, etc.

Conclusively, these efforts would help to protect potential and present consumer in long
term. These strategies would help to make them content in crisis that would create more impact
on consumer’s mind.