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INDIAN INSTITUTE OF MANAGEMENT ROHTAK
Background of Dabur
Dabur India Ltd. is one of leading FMCG Companies of India with revenues of more than Rs.
7,680 Crore and market capitalization worth more than Rs. 48,800 Crore. Dabur has built on a
legacy of quality and experience of over 133 years. Today Dabur is considered as India's one
of the most trusted names, and it is the most significant Ayurvedic and Natural Health Care
Company in the world. Today Dabur operates in key consumer product categories like Hair
Care, Oral Care, Health Care, Ethical, Skin Care, Home Care and Foods. Dabur covers 6
million retail stores in India and has an extensive distribution network with a high penetration
in both rural as well as urban markets.
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Dabur India is the world leader in Ayurveda with a portfolio of more than 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today contains five flagship brands with
distinct brand identities -- Dabur as the leading brand for natural healthcare products, Vatika
for personal care, Hajmola for digestives, Ral for beverages and fruit juices, and FEM for skin
care products and fairness bleaches. Dabur's products also have a massive presence in the
overseas markets and are today available in over 120 countries across the globe. Its brands are
highly prevalent in the SAARC countries, Middle East, Africa, Europe, US, and Russia. The
overseas revenue of Dabur today account for more than 30% of its total turnover.
Dabur, a 133-year-old ayurvedic company which is promoted by the Burman family, started
operating in 1884 as an Ayurvedic medicines company. From its humble beginnings in the
streets of Calcutta, Dabur India Ltd has come a long way to become one of the largest Indian-
owned consumer goods companies with the most extensive natural and herbal product portfolio
in the world. Largely, Dabur has successfully transformed itself from being a family-run
business to become a professionally managed enterprise. What sets Dabur apart from its
competitors is its ability to adapt to changes ahead of others and to continually set new
standards in innovation and corporate governance.
Since its conception in 1884 Dabur had focused only on Ayurvedic/Natural ingredients for
their products for the next 113 years to come. In 1997, the home-grown Ayurvedic products
maker launched Project STARS (Strive to Achieve Record Successes) to accelerate growth
through diversification, when the decision was taken to introduce its first non-Ayurvedic
product in the market, which was Dabur Real, a fruit-based beverage. Although Dabur was
probably the only Indian company that was selling products made of Ayurvedic formulations
nationwide before the launch of Real, it was unsure about how far it could take Ayurveda. The
rationale behind Dabur's new communication was its history. The Burmans have marketed
Ayurveda for more than 130 years. But it seemed that Dabur just couldn't bank on its "history
or legacy". "The platform that we are going to leverage is the science-based Ayurveda, backed
by research, validation and hard evidences. It will appeal to a lot of people who may not believe
in faith-based Ayurveda (unlike Ramdev's followers)," said K.K. Chutani.
Distribution Channels
Dabur has more than 600 SKU which are delivered to about 2500 stockists
Dabur developed its distribution through its unique retail excellence program
DARE (Driving Achievement of Retail Excellence)
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Dabur uses Direct Shipment Strategy which was implemented to bypass warehouses
and distribution centers. This strategy helps in:
a. Retailer avoids the expense of operating a distribution channel
b. Reduced lead time
Reduction in lead time has added to reduction in Bullwhip Effect of the Supply Chain
By implementing Milk run' system for small truckloads, Dabur has managed to redue
the increased transportation costs in the chain
Highlights of Dabur
Dabur Red Paste and Dabur Hajmola have been ranked amongst the biggest gainers
in the latest Brand Equity Most Trusted Brands List
Dabur Red Paste moved up 66 places and was ranked 34th in the Brand Equity Most
Trusted Brands 2016 list, released by The Economic Times, up from its ranking of 100
in the previous year
In the Oral Care category list, Dabur Red Paste took the 3rd place, a gain of one rank
over the prior year
The year 2016 had seen Dabur Red Paste also break into the Top 3 in the market,
becoming the third most abundant toothpaste brand in the country
Hajmola gained 38 places and was ranked 85 on the list. Hajmola was also ranked in
the Top 5 in the Over The Counter category for 2016
Country showcasing has turned into the most recent advertising mantra of FMCG companies.
The developing Indian populace, especially the country portions, makes an open door for the
organizations to change over customers to marked items. India has a huge expending class with
41 for each penny of India's white-collar class and 58 for every penny of the aggregate extra
cash. There is a ferocious rivalry in urban markets, with a wide assortment of selections of
items. It's getting to be noticeably troublesome for existing organizations to keep up their
business sectors partakes in urban markets. In this way, the new organizations locate the
country showcase for the great chances to contribute. Endeavors are to be made now to
comprehend the state of mind of the rustic purchasers and to stroll with their pace.
The ascent of provincial markets has been an essential showcasing wonder of the 1990s,
providing volume development, to every single driving organization. Many organizations are
attempting to take a grasp of the rustic market. Be that as it may, the difficulties are many: how
to make the item reasonable, how to infiltrate the towns with little populaces, network,
correspondence, dialect obstructions and so forth. Higher rustic salaries driven by agrarian
development, expanding enrolment in grade schools, high infiltration of TV and different broad
communications have expanded the penchant to expend marked, and esteem included items in
the rustic region. The media blast and satellite intrusion have brought about extreme changes
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in the devouring propensities for provincial Indians, and the future would hold a considerable
measure in store for the organizations entering rustic markets. New players like Nestle, Mc
Donald, are looking at the provincial market and the organizations like Hill, Dabur, Asian
paints and LG have entered the provincial market. Driven by the ascent in the white collar class
and the interest for FMCG items, the Indian rustic market offers a gigantic open door for
speculation. With higher soaked urban markets, the future development in the FMCG division
will originate from expanded provincial and residential area entrance.
Rural marketing is growing in importance in coming years. The Indian rural market is much
larger when compared to the urban market regarding population and number of household. The
penetration level of the rural market is upgrading with the improvement in the distribution
channel. As discussed, the predominant area of marketing for FMCG product is a rural area,
and so Dabur also adopted the same strategy for dant manjan. The usage pattern of Dabur Lal
Dant manjan and the paste is quite different from the rural people. The researchers have tried
to distinguish the Dabur Lal Dant manjan and the paste users.
The following inferences have been derived from research,
1. It is observed that the people of comparatively higher age (35+) are using powder.
2. The rural people nearer to an urban area (2 to 3 km) are using the paste more, and the
people who are far away (10 to 12km) from an urban area are using powder more.
3. The families of large size (6+) are using the powder more in comparison to paste.
4. It is found that the sale of dance manjan is affected by price and the combined effect of
price, colour and flavour.
5. The discriminant score seems to be affected more by "Distance from town" followed
by "Size of the family," "age" and then the "income."
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Dabur Red Paste Kick-Starts Campaign on Dental Care with Ayurvedic Remedies
Dabur undertook a campaign to construct Oral Hygiene mindfulness among school kids in
Maharashtra. On 12th January 2017, this campaign was announced. The battle is gone for
enhancing oral wellbeing in the nation with an uncommon concentration of class kids. Not just
this, the crusade will likewise instruct the school kids on Ayurvedic solutions for guarantee
general wellbeing and prosperity.
Under this activity, a group of specialists would contact more than 75,000 school understudies
from 250 schools in Seven areas of Maharashtra, i.e., Aurangabad, Ahmednagar, Nanded,
Dhule, Hingoli, Akola, and Jalgaon to teach them different parts of Oral Care.
Discussing the activity, Dabur India Ltd Consumer Activation Head Mr. Sunil Sharma stated:
"Dabur is focused on its proverb of being committed to the wellbeing and prosperity of each
family. Oral cleanliness is an imperative piece of being fit and solid. On the off chance that
you care for your body and your dietary patterns, it's likewise similarly vital to take care of
your essential oral and dental cleanliness. Be that as it may, brushing your teeth is for the most
part observed as a commonplace and routine action. Along these lines, there's a need to instruct
buyers about oral-care and its effect on general prosperity. With this activity, Dabur has taken
the onus of advancing oral cleanliness among school kids in Maharashtra."
Dabur, alongside SODC (Society for Oral and Dental Care), will lead dental cleanliness session
of an expected more than Eight Lakh school kids from more than 800 schools Pan India. The
activity intends to impart the significance of oral cleanliness in school kids
He claimed to be aware of the ever-changing demands in the market and therefore their
initiative to launch an unexpected product an ayurvedic gel along with expanding on their
legacy and propelling this new item that has the astuteness of Ayurveda and is sponsored by
solid, innovative work. The organization trusts it is a compelling detailing for keeping up oral
cleanliness, fundamental for regular support of teeth.
He said "Dabur has dependably had confidence in the integrity of Ayurveda and has been
working towards making items that offer the same attempted and tried advantages of Ayurveda,
however in advanced helpful arrangements. Dabur Red Gel is stuffed with powerful ayurvedic
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fixings like Laung, Pudina, Clove Oil, Tomar, and has the invigorating properties of Gel,
making it the ideal mix for security from dental issues while giving dependable freshness."
To further expand its market, Dabur Red Gel has been launched in the Nepali market on 12
October 2017; it has been launched in 3 SKU: 150 gm costing Rs. 100, 80 gm costing Rs. 60
and 25 gm costing Rs. 24.
Singh states that Dabur invites rivalry (targeting Patanjali), in the ayurvedic business as it
enables growth, referring to how Patanjalis campaign helped them while hurting MNCs at
the same time
Dabur works in the toothpaste showcase with exceptionally separated item portfolio covering
Dabur Red Paste, Babool, and Meswak.
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50
40
30
22.8
19.1
20 15.3
13.4
10
2.8
0.4
0
Colgate HUL Dabur Patanjali Dant Kanti
35
30 28.729.3
25
20
15 13.7
12.3
0
Colgate Dental Close-Up Dabur Red Colgate Max Cibaca Dant Kanti Colgate Active Pepsodent Sensodyne
Cream Paste Fresh Salt
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Exhibit 3: Product Mix of Dabur
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References:
i
https://economictimes.indiatimes.com/industry/cons-products/fmcg/ramdevs-dant-kanti-bites-into-mncs-
but-makes-dabur-shine/articleshow/58711873.cms
ii
https://economictimes.indiatimes.com/industry/cons-products/fmcg/market-share-of-baba-ramdevs-
patanjali-toothpaste-trebles-in-one-year/articleshow/59853002.cms
iii
http://www.moneycontrol.com/news/business/exclusive-dabur-targets-no-2-slot-in-toothpaste-on-the-back-
of-red-shakes-up-vatika-with-relaunch-2399077.html
iv
http://m.thehindubusinessline.com/companies/dabur-launches-ayurvedic-gel-
toothpaste/article9522187.ece
v
http://www.myrepublica.com/news/28935/
vi
http://www.dabur.com/in/en-us/media/dabur-red-paste-kick-starts-campaign-on-dental-care-with-
ayurvedic-remedies
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