Professional Documents
Culture Documents
ABOUT DABUR
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
bylanes 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
130 years, we have been dedicated to providing nature-based solutions for a healthy and
holistic lifestyle.
Through our comprehensive range of products, we touch the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our
consumers. That guarantees you the best in all products carrying the Dabur name
DABUR AT-A-GLANCE
Dabur India Limited has marked its presence with significant achievements and today commands a
market leadership status. Our story of success is based on dedication to nature, corporate and process
hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our
policies and initiatives speak for themselves.
Leading consumer goods company in India with a turnover of Rs. 5,283 Crore (FY12)
2 major strategic business units (SBU) - Consumer Care Business and International
Business Division (IBD)
2 Subsidiary Group companies - Dabur International and NewU and several step down
subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer
Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer
Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE)
and Jaquline Inc. (USA)
17 ultra-modern manufacturing units spread around the globe
Products marketed in over 60 countries
Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and
over3.4 million retail outlets all over India
Consumer Care Business adresses consumer needs across the entire FMCG spectrum through four distinct
business portfolios of Personal Care, Health Care, Home Care & Foods
Master brands:
12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, Dabur Honey, Glucose,
Fem and Odonil
Strategic positioning of Honey as food product, leading to market leadership
(over 75%) in branded honey market
Dabur Chyawanprash 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
Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and
Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-touse formats
Has more than 300 products sold through prescriptions as well as over the counter
Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
Division also works for promotion of Ayurveda through organised community of traditional
practitioners and developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of customers across different
international markets, spanning Nepal, Bangladesh, the Middle East, North & West Africa, EU and the US with its
brands Dabur & Vatika
CORE VALUES
VISION
PRINCIPLES
OWNERSHIP
This is our company. We accept personal responsibility, and accountability to meet business needs.
PASSION FOR WINNING
We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are
determined to be the best at doing what matters most.
PEOPLE DEVELOPMENT
People are our most important asset. We add value through result driven training, and we encourage
& reward excellence.
CONSUMER FOCUS
We have superior understanding of consumer needs and develop products to fulfill them better.
TEAM WORK
We work together on the principle of mutual trust & transparency in a boundary-less organisation.
We are intellectually honest in advocating proposals, including recognizing risks.
INNOVATION
INTEGRITY
We are committed to the achievement of business success with integrity. We are honest with
consumers, with business partners and with each other.
COMPANY HISTORY
HISTORY
1884
1896
Early1900
s
1919
Birth of Dabur
Setting up a manufacturing plant
Ayurvedic medicines
Establishment of research laboratories
1920
Expands further
1936
1972
Shift to Delhi
1979
1986
1992
1993
Cancer treatment
1994
Public issues
1995
Joint Ventures
1996
3 separate divisions
1997
1998
2000
2003
2005
2005
2006
2006
2007
2007
2007
2008
2009
2010
2011
2011
2012
FOUNDING THOUGHTS
the retail market in India with a chain of stores on the Health & Beauty format.
2007 - Dabur Foods merged with Dabur India
Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to
extract synergies and unlock operational efficiencies. The integration will also help Dabur
sharpen focus on the high growth business of foods and beverages, and enter newer product
categories in this space.
2008 - Acquires Fem Care Pharma
Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market.
Besides an entry into the high-growth skin care market with an established brand name FEM,
this transaction also offers Dabur a strong platform to enter newer product categories and
markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club
Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste
crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition
Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a leading
personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab
Dabur acquired 100% equity in Namast Laboratories LLC of the US for $100 million. This
marks Daburs entry into the fast-growing ethnic hair care products market in U.S., Europe and
Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours
Dabur launches Indias first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched
in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records
Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of hosting the
longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market
Dabur enters professional skin care market with the launch of OxyLife Professional Facial Kit,
created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal
Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com With this,
Dabur is the first Indian FMCG company to launch a dedicated online shopping portal for its
beauty products range. The portal will be the online gateway for consumers to know, understand,
buy and gift the exclusive Dabur Uveda range of skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma
Dabur India Ltd acquired Ajanta Pharmas over-the-counter energizer brand 30-Plus.
2011 - Dabur to enter Sri Lanka
Dabur India Ltdsets up new subsidiary in Sri Lanka Dabur Lanka (Pvt.) Ltd. The company will
establish a new export-oriented manufacturing facility for producing a range of fruit-based
beverages in Gampaha, north of Colombo.
2011 - Dabur enters Almond Hair Oil market
Dabur India Ltd launches Dabur Almond Hair Oil, a one-of-its-kind product that offers superior
nourishment for 100% damage-free hair.
2012 - Dabur crosses Billion-Dollar turnover mark
Dabur India Ltd surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal to end the
year with Net Sales of Rs 5,283.17 Crore.
All the activities listed above create what a marketeer offers to the market. It is through these that
market is created and managed. The above list of marketing mix elements was reclassified by
McCarthy into four categories popularly known as four Ps of marketing -: product, price, place and
promotion.
PRODUCT
PLACE
Product mix
Channel strategy
Packaging
Intermediaries
Labeling
Channel conflict
Product quality
Channel selection
Branding
Physical distribution
PRICE
PROMOTION
Price methods
Promotion mix
Pricing strategies
Advertising
Price policy
Sales promotion
Price changes
Personal selling
Publicity
Public relations
PRODUCT
The product is the physical good or service offered to the consumer. The product is the most
visible element of the marketing mix. When a firm introduces a number of products over
time gradually, its offerings become many. That is, the firm becomes a multi product firm.
Similarly, Dr. S. K. Burman started a small pharmacy in Calcutta in 1884 where he launched
his mission of providing health care products. Which was later made a full fledged company
Dabur (Dr. S. K. Burman) India Limited started with only few ayurvedic medicines. But now
it has a bigger portfolio of products of variety of brands like hair care, health care, baby care
& other different types of Home & Personal care products along with food and digestive
products. Further the company can increase the depth of an item in the line by adding new
variants. For example Dabur has added different flavours like orange and lime to its Glucon
D.
Daburs diverse product range is today manufactured in 9 manufacturing facilities within
India and 5 other worldwide. Dabur's Ayurvedic Specialities Division has over 260
medicines for treating a range of ailments and body conditions-from common cold to chronic
paralysis.
Over the past two years, Daburs product portfolio has been systematically overhauled
through re-launches and brand extensions, even as fresh forays have been made into new
categories such as hair, skin care and home care. Recently two new products, disinfectant
cleaner and kitchen cleaner under Dazzl brand. All these launches of new kinds of products
will help the company to capture the potential market arising from the growing needs of the
fast expanding market, especially the aspiring and affluent Indian household categories.
DABUR BRANDS ARE BROADLY DIVIDED IN TO SIX CATEGORIES:1)
2)
3)
4)
5)
6)
Health Care
Personal Care
Home Care
Ayurvedic Specialities
Foods
Guar Gum
Restora - restorative
Gulabari Face Pack - natural recipe for younger looking glowing skin
Vatika Fairness Face Pack enriched with the goodness of natural ingredients giving
your skin radiant fairness
Dabur Red Toothpowder - herbal combination for strong teeth & healthy gums
Dabur Red Toothpaste - herbal combination for strong teeth & healthy gums
PRICE
Price is normally expressed in monetary terms. It is worth of a product or service in monetary terms.
Price is the value which a buyer passes on to the seller in lieu of the product or service provided.
Price is a crucial determinant of the fact whether the exchange between the buyer and seller should
materialize or not. While pricing the products three main factors should be kept in mind -:
1. Cost
2. Competition
3. consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend and marketing.
The entire product portfolio is also tweaked to include premium offerings such as more variants
under almost every category, like Dabur Vatika Hair Oil is available in 3 different versions .
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented company.
Across the whole organization the company have one definition of winning, and that means not just
growing, but growing completely. Over the last two years, Dabur has maintained its operating
margins through judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below -:
I.
COST
One of the most important factor to take care while pricing is the cost costs set the floor for pricing
decisions. There are two types of cost variable cost and fixed cost. It is important that the price
should recover all costs including a fair return for undertaking the marketing effort and risk.
II.
COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors selling
the same or similar products, the pricing freedom is considerably reduced. Its price must fall in line
with the competitors. Similarly Dabur India Limited also has many competitors. But Daburs top
selected competitors are:1.
2.
3.
4.
5.
6.
III.
Dabur learned that the majority of Indian population tends to go towards the Indianised natural and
herbal products thus they made it their USP. Dabur is efficiently leading the market with this product
range, providing the customers with special products easily.
PLACE
Place in the context of marketing mix refers to a set of decisions that need to be taken in order to
make the products available to the customers for purchase and consumption. Making the products
available to the customers require development of channels of distribution and physical distribution
of products.
CHANNELS OF DISTRIBUTION
Channels of distribution refers to the path taken by the goods in their movement to the customers.
For instance, the toothpaste we use is manufactured in the factory of a company Dabur. But before it
reaches us it passes through the hands of many middlemen who help it come to you in right time, at
right place and in right quantity.
Daburs distribution network is recognised as one of its key strengths. Its focus is not only to enable
easy access to our brands, but also to touch consumers with a three-way convergence - of product
availability, brand communication, and higher levels of brand experience.
The above diagram it shows channel of distribution of dabur foods, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing And
Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest
or Distributors, from here goods reaches to large number of Retailers and it is the duty of Stockiest
to take orders from retailers and then supply the goods to them, this work is generally done by
stockiest salesman through ready stock or by taking orders first and then placing the order. From
here the goods finally reaches to Customers. Customer purchases the product from retailer
Manufacturing Plant
Stockist A
Retailers
Retailers
Stockist B
Retailers
Retailers
Stockist C
Retailers Retailers
C O N S U M E R S
MANUFACTURING PLANT
Dabur Foods has Number of products in its product line but its main area of interest or the product
on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured and tested.
Getting the raw material and packaging material requirement from the production unit in
charge
Production details and ingredient content information from the different personnel and
coordinating this activity
PACKAGING
Approval and coordination of the supply of packaging material to the production unit
From manufacturing plant the stock is transported or supplied to clearing and forwarding
agents.
Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so
company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.
They charge Dabur for stocking the good and even Dabur dont mind doing so as it is a
measure of cost cutting as well as there is no need for gowdowns and maintenance.
STOCKIEST OR DISTRIBUTORS
Stockiest store the products in their godowns, C&FA supplies the goods to them as per their
order.
Stockiest has some sales men working under him, they are known as stockiest sales man.
Their work is to place the products in the market and take order from retailers and then
supply goods to them.
Sales man either take ready stock with them or they first take orders and then supply goods
later on.
There is a beat which is a schedule route of sales man, means sales man has to daily cover the
route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners, and seeing that
goods are properly placed in the retail outlets is also the duty of stockiest sales man.
Companies sales officer keeps a check on the stockiest and monthly report is also prepared
which is further analyzed by ASM & ZSM.
RETAILERS
Retailers are backbone of the company as they are the one who can take the product on new
heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the brand special
displays (using merchandising tools) to get affective brand presence, and arranging it in more
noticeable manner.
Retailers are the ones who have direct contact with the customers.
Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail outlets making
its product available to the consumers across the country at
PROMOTION
Once the product has been manufactured, priced rightly and is distributed, the next task of the
marketer is to inform potential customer about the product and persuade them to buy the same. The
promotion element of marketing mix is concerned with activities that are undertaken to
communicate with both customers and participants in the channel of distribution such that sales
goals are realized. There are different promotional activities like-: Advertising, Sales promotion,
trade promotion, personal selling etc. but one of the most convenient and effective one that most of
the industries uses is the Advertising and Sales Promotion.
ADVERTISING
Advertising is a form of communication that typically attempts to persuade potential customers to
purchase or to consume more of a particular brand of product or service. Many advertisements are
designed to generate increased consumption of those products and services through the creation and
reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes
embed their persuasive message with factual information. Every major medium is used to deliver
these messages, including television, radio, cinema, magazines, newspapers, video games, the
Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company
or other organization.
Dabur has created the huge brand image and a vast product following by associating mega-names
like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150
crore just on the advertising of Real Fruit Juice and Real Active. So far the company has been
successful in this mission as the people now know the brand and ask for its products by name.
SALES PROMOTION
An activity designed to boost the sales of a product or service. It may include an advertising
campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps,
arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary
price reductions, door-to-door calling, telemarketing, personal letters on other methods.
In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the
promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions
are non-personal promotional efforts that are designed to have an immediate impact on sales.
Sales promotion involves short-term incentives to encourage buyers to purchase a product. It's aim is
to encourage immediate purchase of a product. If used too often however, sales promotion can create
a situation where consumers will not buy unless there is a bonus offer. This will result in loss of
profit for the company.
More than any other element of the promotional mix, sales promotion is about action. It is about
stimulating customers to buy a product. It is not designed to be informative a role which
advertising is much better suited to.
Sales promotion can be directed at: The ultimate consumer (a pull strategy encouraging purchase)
The distribution channel (a push strategy encouraging the channels to stock the product). This is
usually known as selling into the trade
Price promotions
Coupons
Money refunds
Point-of-sale displays
Free samples
Contest /demos
Festival Sales
Retailer coupons
Multi-packs
Merchandising
Sales contest
Incentives
Premium gifts
Sales Meetings
Samples/product sampling
Exchange Offers/buyback
Refund / Rebate
Higher Margins: Tries to give higher margins to stockiest so that they dont loose interest in
the product and can earn good profits after meeting all the expenses.
Sales Contests: Sales contest are held annually and which ever stockiest has the best sales
record a prize is given to him, like free holiday to the family etc.
Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.
Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some
money on the promotional schemes, like conducting a sampling activity.
Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.
Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by
the company for stockiest sales man so that they dont face any problem while placing their
products and taking orders from retailers.
Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.
Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once
a year.
Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and their
sales man.
Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
Buyback: Dabur foods has a scheme of replacement of products which gets expired.
Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.
Dealer loader: An incentive given to induce a retailer to purchase and display the products
of dabur.
Trade contest: A contest to reward retailers those sells the most product of dabur foods and
after a specific period they are rewarded.
Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like
danglers, posters, banners etc helps in promoting sales.
Push money: Also known as "spiffs". An extra commission paid to retail employees to push
products. This kind of practice dabur hardly follows.
Free samples: Dabur foods gives free samples are given to retailers so that they can try that
product if the product is new, or gives some discounts.
Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.
Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash
discounts if payment is made in cash.
Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.
Higher Margins: Retailer has the highest margins and dabur foods also have the same
criteria, and retailer can further sell the dabur product to consumer at discount keeping his
margin safe.
Allowances for additional shelf space: Company as such does not pay anything to retailer
but gives some additional benefits for giving them shelf space which is visible to customer
when ever they enter the shop.
Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising
dabur products. When ever the Stockiest sales man goes to take orders then he also
merchandises dabur products.
Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with
that.
Trade Allowance: Dabur comes with different types of trade discounts from time to time,
like sometime price discounts, sometimes gifts etc.
Free goods: Dabur gives free goods on the purchase of specific number of goods.
Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in
cash at the time of purchase.
Product sampling: Dabur organizes sampling activities for its products which are new, these
activities are generally at the place where footfall is very high.
Displays: Dabur tries to give special displays to the retailers, so that they can display their
products on that.
Price deal: A temporary reduction in the price is given to consumer during some festival session
by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for
the same price (for example, 25 percent extra).
Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.
Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps
a special check on the displays and merchandising of dabur products.
Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
Money Refunds: Customer can claim for refund of money if they face some problem with
the product.
Contest /demos: There are different contests where customers play games and win contests.
Festival Sales: Dabur foods come out with some special offers during festival seasons like
buy one get one free.
Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.
Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it
easier for customers to know about product line and choose the best out of that.