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Brand Updation on Dabur !

Submittedby
Tanya Sinha PROV/E/59

INTRODUCTION
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, they have been dedicated in providing nature-based solutions for a healthy and holistic lifestyle. Through there comprehensive range of products, they touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped them develop a bond of trust with their consumers. That guarantees you the best in all products carrying the Dabur name. Dabur India Limited is the fourth largest FMCG Company in India. It is the first Company to provide health care through scientifically tested and automated production of formulations based on India traditional science. The company`s other products include anti allergic & anticancer drugs and guar gum. It is most famous for Dabur Chyawanprash and Hajmola. It exports primarily to the Middle East through Redrock. Currently, the company has nine production facilities organized around three main factories at Baddi (Himachal Pradesh), Uttaranchal and Nepal and six support factories at Sahibabad (Uttar Pradesh), Jammu, Alwar, Katni, Narendrapur and Jaipur. Currently the capacities for hair oils, oral care products, chywanprash, hajmola and asvarishta stand at 20,000 tonnes, 7,200 tonnes, 22,000 tonnes, 6,000 tonnes and 12,000 tonnes respectively. The company is engaged in trading of a sizeable proportion of hair oils, oral care products, hajmola and others. DIFFERENT PRODUCTS OF DABUR Foods Real Real Active Hommade Lemoneez Capsico Shankha Pushpi Sarbyna Strong Personal CareHair Care Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla Hair Care Shampoo Anmol Silky Black Shampoo

Vatika Henna Conditioning Shampoo Vatika Antidandruff Shampo Anmol natural line shampoo Oral Care Dabur Red Gel Dabur Red Toothpaste Babool Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush

Skin Care Gulabari Vatika Fairness Face Pack 17

SWOT ANALYSIS
STRENGTHS Strong presence in well defined niches(like value added Hair Oil and Ayurvedaspecialties) Core knowledge of Ayurveda ascompetitive advantage Strong Brand Image Product Development Strength Strong Distribution Network Extensive Supply Chain IT Initiatives R & D a key strength

WEAKNESS Seasonal Demand( like chyawanprashin winter and Vatika not in winter) Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3 Rd of the total market(Vatika)

OPPORTUNITIES Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation Increasing income level of the middleclass Creating additional consumption pattern

THREATS Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo Karpin,HLL and Bajaj for Vatika Hair Oil) New Entrants Threat from substitutes (like Bryllcream for Vatika hair oil)

PEST ANALYSIS OF DABUR


POLITICAL

Transportation and infrastructure development in rural areas help in distribution network Tax exemption in exise duty Restriction in import policies. Help for agricultural sector.

ECONOMIC

Increasing GDP. Inflation rate: -1.27 Increase in disposable income. DABUR Recorded 16% Sales Growth in Last Fiscal

DABUR is the 5th largest sector of FMCG Companies with market size of more than 60,000 crore.

SOCIAL

The Indian culture, social& life styles are changing drastically. Indian consumer of today is clearly seeking healthier alternatives. Consumer buying behavior is changing. Social mobility

TECHNOLOGICAL

Technology has been simplified and available in the industry . Foreign players helps in high technological development. Rate of obsolescence. Government providing thrust on R&D. Internet IT

BCG MATRIX OF DABUR


It is based on the combination of market growth and market share relative to the next best competit or It is based on the observation that a companys business unit can be classified into four categories: Stars Question marks Cash cows Dogs

STARS stars are leaders in Business. High growth, High market share. Effort should be made to hold the market share otherwise the star will becomea CASH COW. Analysis with DABUR INDIAIBD(29.4%) GROWTH RATE ANALYSIS WITH CCDDABUR GLUCOSE-32%(GROWTH RATE) DABUR HONEY-26%(GROWTH RATE) MESWAK-39%(GROWTH RATE)

QUESTION MARK Most businesses start of as question marks. They will absorb great amounts of cash if the market share remainsunchanged, (low) Investments should be high for question marks. Analysis with DABUR INDIADazzl Chyawan Prakash

CASH COWS They are foundation of the company and often thestars of yesterday. They extract the profits by investing as little cash aspossible. They are located in an industry that is mature, notgrowing or declining. Analysis With DABUR INDIA%(GROWTH RATE) CHYAWAN PRASH HAJMOLA REAL

DOGS Dogs are the cash traps. Dogs do not have potential to bring inmuch return. Number of dogs in the company should beminimized. Business is situated at a declining stage. ANALYSIS WITH DABURCCD CHD-0.6%GROWTH

High

Market growth

low

STAR Question mark Chyawanprash Amla Dazzle vatika Chyawan prakash hajmola real fem honey glucose Cash Cow DOG Gulabari Dazzle Dabur uveda Odopic Odonil Lemoneez Babool Burst Meswak Dabur laltoothpowder &past Market share low

high

Top 10 FMCG companies 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestl India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries

Through this list we can analyze that the main competitors of DABUR are HUL, ITC, NESTLE & GCMMF(AMUL). By analyzing this list we can also come to a conclusion that in FMCG sector HUL is the MARKET LEADER. DABUR,GCMMF(AMUL), ASIAN PAINTS & CADBURY comes under the CHALLENGER group because they have companies leading them. But DABUR CHYAWANPRASH is the MARKET LEADER.It is the highest selling ayurvedic medicine with 65% market share. DABUR HONEY is also a MARKET LEADER in branded honey market. It has around 75 % market share. HAJMOLA Tablets are also in command with 60% market share.2.5 crore HAJMOLA tablets are consumed in India every day.

MARKETING MIX
we shall be discussing the 4 Ps of marketing mix with respect to Dabur. The mix shall be analyzed as followed: Product Price Place Promotion PRODUCT: Products have been divided into 5 power brands

Quality: High Sizes: Available in different sizes Design: Available in Tetra Pack, Bottles, Sachets

PRICE: As, Dabur had different sub-categories it came out with variable pricing to reach each and every target segment E.g. : One- litre bottle of Cooler (juice) was priced at Rs.50 Selective Price Reduction to increase Demand Introduction of Smaller packs at Rs.5 Came out with Rs.1 sachet of Vatika Shampoo to increase market share Cutting Price to stand out against competition PLACE :

Dabur constantly kept on increasing its geographic spread to increase its sales revenues Entered the South Indian Market Expanding in the International Market Presence in over 50 countries Subsidiaries established in Nepal, Nigeria, Bangladesh and Pakistan Focus areas : Asia Pacific, Afghanistan, Russia and other CIS countries PROMOTIONS :

Different brands have its own marketing and advertising team Different brands had different promotions Utilized the popularity of Indian films in the domestic and global markets to promote its brands Undertook the most advertising campaign with Mr. Bachchan endorsing Dabur brands Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products Adopted the INTEGRATED MARKETING COMMUNICATION programme in 2003 to increase its market share Targeted the Institutional market which included hotels and airlines Partnered with Institutional clients to provide value added services Held various contests Training sessions and workshops for food and beverage professionals Tie-up with Discovery Channel

STP ANALYSIS OF DABUR


Dabur is the 5th largest FMCG companies in India. The segments that it considers are growing kids, competitive youth, ever-busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient.For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all responsibilities .For the aged: Old age weakens a person physically and mentally.After segmenting the population into these categories it aims to keep them fit and healthy . TARGETING Traditionally,DABUR was mainly for the aged and kids. Dabur is now targeting adults, housewives, youth and kids. This it is trying to achieve through it spromotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in todays demanding lifestyle. Vivek. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads compliment each other and connect very well with the targeted consumers VATIKA hair oil It targeted the high income urban category of hair oil users. POSITIONING "Andar se strong : Dabur chyawanprash has the tag line "Andar se strong By using a natural language instead of scientific language it is able to connect with the consumers and is able to achieve a better positioning in the minds of the Indian health conscious consumer. A category like Chyawanprash for instance needs to understand that in employing the category language it loses any chance of expressing its own benefi tdistinctively. Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveysthis health conscious holistic view of the product .Brand Trust: Over 100 years of Daburs experience in Ayurveda ensures selection, processing and quality control of right herbs along withscientific and clinical studies makes DCP a trustworthy offering forconsumers. Consumers view DCP as a product by a trusted brand andtherefore do not need to think twice before making a purchasing decision.

Porters GENERIC STRATEGY on DABUR Product


The generic strategies are:- 1. Cost leadership, 2. Differentiation, and 3.Focus. DABUR is one of the oldest companies of INDIA in FMCG sector. Thecompany have 3 major strategic business units (SBU) - Consumer CareDivision(CCD), Consumer Health Division (CHD) and International Business Division(IBD). Consumer Care Division (CCD) addresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, and Home Care & Foods. COST LEADERSHIP Generic Strategy being followed by Dabur is based on the SBUs 1)Consumer Care Division (68% of revenue) Low Cost Leadership in this division they are fighting for market share, and since there are already several top players, they are forced to follow the Overall cost leadership generic strategy.. It has been regularly attracting regional celebrities to endorse its products, which is likely to strengthen its position in this sector.It should keep pursuing its current strategy, by learning from its mistakes. Thus it should try to retain market share by building layers of strategic advantage .2) International Business Division (22% of revenue) Low Cost Leadership Catering to health and personal care needs of customers across different international markets 22% spanning Middle East and Africa, South Asia, EUand U.S.Dabur is continuously looking to expand into new geographies and has been focusing on organic growth etc 3)Consumer Health Division (8% of revenue) Differentiation roducts that deliver the age old benefits of Ayurveda in modern ready use formats FOCUS STRATEGY Earlier without the competitor it was the market leader where we can say It follows FOCUS STRATEGY as only targeting Young and Old people. Which can clearly visible from their Advertisement campaigns. But after the entry of the market DABUR has kept its FOCUS strategy more actively by introducing two new product known as the sugar-free Dabur ChyawanPrakash and the chocolate-flavoured granular Dabur Chyawan Junior to create a niche in the market.

DIFFERENTIATION STRATEGY
DABUR has maintain a clear DIFFERENTIATION Strategy in TOOTHPASTE segment by its product Dabur lal Dant manjan. It is a pure ayurvedic product with

ingredients like Lavang KaTail, Kaali mirchi , Pudina Satva , Pippali, , unthi, Karpoor &Tomar seed, Sugandhi Dravaya, Kasni, Gairic powder, Othernatural ingredients. No other brand able to produce such kind of toothpaste, so it is clearly a differentiation strategy of DABUR.

PORTERS FIVE FORCE MODEL ANALYSIS OF DABUR


It is a framework for the industry analysis and business strategy development.It uses concepts developed in IndustrialOrganization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. The 5 forces are: The threat of substitute product The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand). Buyer propensity to substitute ,Relative price performance of substitutes, Buyer switching costs, Perceived level of product differentiation. In case of Dabur since it is in major areas of FMCG and health care products so it need not fear threat of substitute products in the recent future. But it has to constantly re invent its existing product lines in order to cope up with the innovations of its competitors. The threat of the entry of new competitors: Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). The existence of barriers to entry (patents, rights, etc.), Economies of product differences, Brand equity, Switching costs or sunk costs,Capital requirements, Access to distribution , Absolute cost advantages, Learning curve advantages ,Expected retaliation by incumbents , Government policies The intensity of competitive rivalry: For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. No. of competitor Rate of industry growth
Intermittent industry overcapacity

Informational complexity and asymmetry Fixed cost allocation per value added Level of advertising expense Economies of scale Sustainable competitive advantage through improvisations The bargaining power of customers: Also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes.

Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyers Switching cost relative to firm switching costs Buyer information availability Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis Bargaining powers of buyers have increased dramatically with the advent of Globalisation. With increased presenc entioned previously, suppliers have got wide range of choices. So Dabur India has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period.

The bargaining power of suppliers: Also described as market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Presence of substitute inputs

Supplier concentration to firm concentration ratio Employee solidarity (e.g. labor unions) Threat of forward integration by suppliers relative to the threat of backward integration by firms Cost of inputs relative to selling price of the product. Due to its over 100 years presence Dabur does have a very strong bond with the suppliers. Also Dabur does follow the policy of having good relations with all the peoples with which it deals. This helps in having a good relation with the suppliers. Also the policy of being accountable to stakeholders be its customers, without whom it will not be in business, shareholders, who have an important stake in our business and the employees, suppliers who have a vested interest in making it all happen- are their stakeholders.

RECOMMENDATIONS
The company needs to provide a better quality toothpowder at reasonable price to increase sales. The rural consumer usually uses neem and datun. Here Dabur has an advantage as all its products are Ayurvedic in nature In order to compete with the existing brand, the company should provide the consumer with various skus - 25gm, 50gm, 100gm and 300gm. And specially the 1 Rs sachets to initially induce the consumer to use. Consumer preference needs to be assessed regularly because of fluctuating preferences. A company representative should pay a regular visit to the market and ask the retailers for any change in preferences of their regular customers. In order to launch product it the wtp segment Dabur has to launch the product at a lower price or with value propositions and price at par with Colgate. Retailers complain of irregularity in taking of orders and non-delivery of goods on time by the distributors, as a result of which stock is not available at the outlet, resulting in loss of customers. Company should look into the matter of this ignorance in part of the distributors. Focus on national branding Work on new products Should give E-purchasing facility

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