Case Research of Dabur India Limited Marketing Essay
Case Research of Dabur India Limited Marketing Essay
Dabur India Small is a leading Indian consumer goods organization 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 business, Dabur India Ltd provides come a long way today to become a leading consumer products manufacturer in India.
The founder, Dr.S.K.Burman, was a practicing allopathic doctor. In those days Malaria, Cholera and Plague had been the normal diseases. He was rhetorical analysis essay your physician who brought Ayurvedic medicines to the masses of Bengal. In the beginning founded as a proprietary firm for the manufacture of chemical substances and ayurvedic drugs it was later on 19th November 1930 incorporated as personal limited company. Past due Shri C.L.Burman, son lately Dr S.K. Burman and his son past due Shri P.C.Burman in the brand of Dr S.K.Burman Pvt.Ltd. to broaden the operations by setting up production services at Garia and Narendrapur, West Bengal and Daburgram, Bihar. Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st July1985 and the amalgamated business was renamed DABUR INDIA LIMITED.
For the past 125 years, they have been focused on providing nature-based solutions for a wholesome and holistic way of life. Through their comprehensive selection of products, they cater to all consumers, in every age ranges, across all social boundaries. Which legacy offers helped them create a relationship of trust with the customers.
“Dedicated to medical and well being of each house hold.”
Dabur is a company with a set of established business topics for annotated bibliography ideals, which direct it’s operating along with all its operations. The guiding forces for Dabur will be the words of its founder, Dr.S. K. Burman, “what is that life worth that cannot give comfort to others.” THE BUSINESS offers its customers, the merchandise to suit their needs and give them good values for the money. The company is committed to follow the ethical methods in doing business. At Dabur, mother nature acts as not only the source of recycleables but also an inspiration and the company is focused on product the ecological harmony.
Journey so far…http://www.dabur.com/pages/by4hm8ur/116/dabur_build.jpg
1884 The Birth of Dabur
1972 The company shifts basic to Delhi from Kolkata
1986 Registered as Public Limited Company
1994 Listed on the Bombay Stock Exchange
1998 Professional team inducted to run the company
2000 Crosses Rs. 1000 Crore Turnover
2003 Pharmaceutical Organization de-merged to concentrate on core FMCG
2004 Income exceeds Rs. 100 Crore
2005 Acquire Balsara strengthening Oral care & furnished entry into Homecare segment
2006 Dabur figures in Top 10 10 Great Areas to Work
2007 Dabur ranked among ‘Asia’s greatest under a Billion’ enterprises by Forbes
2008 Acquired Fem Attention Pharma getting into the mainstream Skincare segment
2009 Strong expansion momentum continued in spite of general economic downturn. Also Dabur Crimson Toothpaste becomes Dabur’s 9th Billion Rupee brand.
2010 Touched US$4 billion marketplace cap. Overseas acquisition, Hobi Group, Turkey to strengthen presence in MENA and adjacent areas.
Dabur India Small has marked its existence with significant achievements and today commands a market leadership status. Their history of success is based on dedication to aspect, corporate and process hygiene, powerful leadership and commitment with their partners and stakeholders.
Leading consumer goods provider in India with a turnover of Rs. 3417 Crore (FY10)
3 major strategic business units (SBU) – Consumer Care Division (CCD), Consumer Health Division (CHD) and International Organization Division (IBD)
3 Subsidiary Group companies – Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Good care (Bangladesh), Asian Consumer Health care (Pakistan), African Consumer Good care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).
17 ultra-contemporary manufacturing systems spread around the globe
Products marketed in over 60 countries
Wide and deep marketplace penetration with 50 C&F agents, a lot more than 5000 distributors and over 2.8 million retail outlets all over India
Dabur India Ltd’s making activities spanning various client products categories are completed in 17 factories pass on across India and abroad.
Dabur has 11 making facilities in India, out of which two main units are in Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal).
Dabur’s Business Structure:
Note: Percentage show in revenue based on FY10 Financials ; Femcare contained in Consumer Care Division
Consumer Good care Division (CCD):
Consumer Good care Division (CCD) adresses buyer needs across the entire FMCG spectrum through four specific business portfolios of Personal Care and attention, Health Care, Home Care & Foods.
Dabur – Ayurvedic healthcare products
Vatika – Premium hair care
Hajmola – Tasty digestives
Réal – Fruit drinks & beverages
Fem – Fairness bleaches & skincare products
9 Billion-Rupee makes: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Crimson Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey
Strategic positioning of Honey as food product, resulting in market leadership (over 75%) in branded honey industry
Dabur Chyawanprash the major selling Ayurvedic drugs with over 65% marketplace share.
Vatika Shampoo provides been the most effective selling shampoo manufacturer in India for three years in a row
Hajmola tablets in order with 60% market talk about of digestive tablets category. About 2.5 crore Hajmola tablets will be consumed in India every day
Leader in natural digestives with 90% industry share
Category-wise Share of CCD :
Consumer Care Categories:
Hair Oil Shampoo
Source: Value share-ACN June, 09 Benefit Share-ACN Mar, 10
Value Share-ACN March, 2010
Value Share-ACN March, 2010
Company Est. Mar, 2010 for Fruit Juice categoryC:\Users\User 11\Desktop\untitled2.bmpC:\Users\End user 11\Desktop\imagesCAXZ8F24.jpgC:\Users\User 11\Desktop\pictures.jpgC:\Users\User 11\Desktop\PG-III\RKS\Dabur Real- Mrktg Method\burrst.jpgC:\Users\Individual 11\Desktop\untitled6.bmp
*Business estimates; Includes Fem skincare portfolioC:\Users\User 11\AppData\Local\Microsoft\Home windows\Temporary Internet Files\Content material.Word\dabur-health_06.jpg
Value Share-ACN March, 2010C:\Users\Individual 11\Desktop\imagesCALG7F5C.jpgC:\Users\Customer 11\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Word\dabur-personal_08.gifC:\Users\End user 11\Desktop\dabur-digestive_09.gif
Value Share-ACN Mar,2010 for Aerosols category OdonilOdomosOdopicSani Fresh
Consumer Health and wellbeing Division (CHD)
Consumer Health Division (CHD) offers a range of classical Ayurvedic medications and Ayurvedic OTC goods that deliver the age-old benefits associated with Ayurveda in modern day ready-to-use formats. Dabur’s Consumer Healthcare business is the Company’s oldest business, and today has a developing portfolio of OTC goods to address a number of problems which range from Women’s Overall health to Baby Care and Cough & Chilly to Rejuvenation.
Has a lot more than 300 products sold through prescriptions and over the counter
Major categories in traditional formulations include:
– Asav Arishtas
– Ras Rasayanas
– Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
– Nature Care Isabgol
Division likewise works for advertising of Ayurveda through organised community of traditional practitioners and developing fresh new batches of students
The Consumer Health and wellbeing Division, CHD witnessed a growth of 10.2% during the quarter led by ethical portfolio which grew by 14.5%. In OTC, Pudin Hara grew by 12.8%. The Pudin Hara portfolio possesses been extended by launching Pudin Hara Lemon Fizz in the acidity segment.
International Business Division (IBD)
International Business Division (IBD) suits the health and personal care demands of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US using its brands Dabur & Vatika
Growing at a CAGR of 33% in the last 6 years and plays a part in about 20% of total sales
Leveraging the ‘Natural’ choice among local consumers to improve share in perosnal treatment categories
High degree of localization of manufacturing and sales & marketing
Dabur’s International business:
The Company’s key markets for international business will be the Middle East, Africa, UK and South Asian geographies, with manufacturing crops located across regions. THE BUSINESS also has an exclusive label business in USA and UK, along with Guar gum exports, which takes place from its Indian plants.
The Company’s International Organization Division recorded an impressive sales growth of 26.3% from Rs.477.0 crore in 2008-09 to Rs.602.5 crore in 2009-10, contributing to 18% of total consolidated sales. The operating margins of the business improved significantly during the year reflecting the effectiveness of the brands despite the fact that the external conditions were tough and the environment was suffering from recessionary trends, currency depreciations and demand contraction.
Robust sales expansion in international markets was possible due to:
– Strong Manufacturer portfolio positioned on herbal and natural platform
– Aggressive new item launches and brand extensions
– Geographical expansion into new markets
– Strong Product sales and Distribution network
– Strong manufacturing backbone and expansion of own production in key geographies
– Localised and successful supply chain.
The company has generated strong and robust company architecture with two mega brands for international organization across all geographies – Dabur and Vatika and the majority of its offerings are under either of these two brands.
– Dabur Amla franchise realized a growth of 38% along
with all the extensions.
– Basis Nielsen Retail Audit in KSA, Dabur Amla Head of hair Oil with market share of 34.2% is the biggest manufacturer in the hair oil segment. Dabur Amla Gold features market talk about of 6.8% while Dabur Amla Jasmine reaches 5.1%.
– The Amla franchise has been expanded to the Hair Cream Category with the release of Dabur Amla Head of hair Cream. It has become the fastest growing company in the Hair Cream segment notching up revenue of more than INR 13 Crore in first year of launch.
– There’s been a robust progress of 36% in the Vatika franchise which includes Vatika Enriched Hair Essential oil, Coconut Hair Oil, Wild hair Lotions and Hamam Zaith. Vatika brand is now worthy of Rs.185 Cr designed from a negligible basic over the last four years in the Arab belt.
– There was a successful re- start of Shampoos and Conditioners, launch of 1 additional variant in Hamam Zaith and re-release of Vatika Coconut Head of hair Oil.
– Light hair oil selection of Vatika Hair natural oils registered 51% development in MENA.
– Vatika Hair Cream is currently an INR 64 Cr manufacturer in MENA. Vatika Hair Cream gained 370 bps in market share and turning into 12.7% of the marketplace in volume terms. It grew by 44% in volume terms over LY in a category that has remained flat. Vatika Head of hair Cream is now the no. 2 player in Contemporary Trade with a 15.6% volume mkt talk about despite intense competition from established makes.
Vatika DermoViva – a fresh sub- company launched for the non-public Wash and SKINCARE segment had its first of all release in the Bar Soap category and features managed to create consumer equity in a category dominated by strong MNC players.
– The FEM manufacturer was strengthened in the overseas marketplaces through ATL and BTL inputs which observed the manufacturer grow by 100% in just nine months of operation because the takeover.
Dabur’s International Market:
The key contributing market segments/ areas to the International Business growth have been GCC, Egypt, Nigeria, Algeria, Morocco, Libya, Yemen, Syria and South Africa.
GCC, the largest market in the International Business Division and despite being a mature industry, has registered a strong progress of 42% over this past year fuelled by innovations and new merchandise launches in the Head of hair Care, Personal Wash and Oral Care and attention segments.
Dabur Egypt Limited has witnessed another spectacular performance with 30% progress in sales.
African Consumer Good care, Nigeria is continuing to grow by 17% over this past year in local currency terms, aided by strong growth of Dabur Organic Toothpaste and Dabur Plant based Gel in the Oral Care and attention category.
Asian Consumer Care and attention, Pakistan is continuing to grow by 26% in income with Hajmola and Dabur Amla emerging as both strong brands for the region.
Dabur International`s UK Branch features found a 23% growth over earlier year which has been the best growth rate because of this region in the last 8 years.
Markets of North Africa, Levant and Yemen have observed an extraordinary performance with 49% progress over previous year.
Asian Consumer Health care, Bangladesh, has performed well with a rise of 47% during the fiscal 2009-10. The progress has got been led by improved distribution penetration and focussed brand approach.
Dabur Nepal Pvt Small which manufactures fruit juices and also caters to local consumer industry in Nepal recorded impressive expansion of 26% in its revenue to the domestic market of Nepal.
Dabur recently has acquired Turkey-structured personal care enterprise Hobi Kozmetik Group in a package at Rs. $ 69 million. The business, in a move to expand its occurrence across Middle East and North African region, has manufactured the acquisition. Hobi Kozmetik can be a market leader in the wild hair gel category with 35% market share. Company’s items distributed under ‘Hobby’ and ‘New Era’ brands across 35 countries. The transaction is likely to be finished by Q3 of FY11. Dabur, which may be the most significant FMCG in India with large market capitalization, has enormous investment and expansion programs as the business aims to increase its international sales.
Exports from India:
The company also exports guargum and private label oral maintenance systems from India. During 2009-10 the company documented Guargum exports to the tune of Rs.43.3 crore in comparison with Rs.48.3 crore in the previous year. The product sales were lower due to weak global demand and recessionary environment.
Exports to USA documented impressive growth with sales increasing to Rs.38.4 Cr in 2009- 10 versus Rs.27.6 in 2008-09 reflecting a growth of 39% despite the recessionary environment in developed markets. THE UNITED STATES sales comprise Private Label and Ethnic organization. Key marketplaces in USA and Europe contributed to the growth. Innovative product developments
in Oral care exclusive label- such as for example Pro-age, Sensitive and Organic toothpastes were introduced. Ethnic Sales in USA and Canada also performed well recording 80% growth albeit on a minimal base. Various new products were successfully launched on the market and penetration of
mainstay Dabur items like Hair Oils and Chyawanprash into Canadian mainstream retail chains such as for example Walmart was achieved.
58% Serious and Active
Fruit Drinks (coolers)
Frooti And Maaza
Hair oil Coconut base
HLL and P&G
Hair care (overall)
HLL, P&G and Himalaya
Himani, Zhandu and Himalaya
Himani, Hamdard and native Players
Paras and local players
Entering rural market:
Dabur should target additional towards the rural market and tier 2 and tier 3 metropolitan areas. These markets have traditionally been loyalists to Dabur’s ayurvedic selection of personal products.
Tapping increasing global demand of natural and Ayurvedic products:
There is a new trend in the global industry that has heightened the demand of organic/ ayurvedic products. This is the time when Dabur should relaunch itself as a key international person in the global arena.
Also in the domestic market, there is a huge scope for Dabur to release niche/luxury segment goods catering to specific target groups.
i) Development of fresh markets for Products & Providers:
New avenues for progress were opened up with expansion into the new marketplaces of Cambodia, Philippines, Belarus, Gambia and Bolivia. The Revenue & Distribution infrastructure provides been augmented by appointing latest distributors in CIS, Mozambique, Guinea and Rwanda. Regional resources have already been deployed in key market segments of Yemen, Syria, Kuwait, Malaysia and Tanzania to fortify the S&D structure.
ii) Entering US Industry:
The Company can be trying to break into the united states Market where it is attempting to create a full fledged distribution channel. Additionally it is worthwhile to say that a few of its goods like Chyawanprash are available in the US via Indirect channels. But this task will likely be a hard one since US laws and regulations are difficult and the choices of consumers also vary greatly than that of market segments which are usually catered to by Dabur.
iii) Concentrate on- South Africa:
In Africa the company is looking at markets like South Africa where it currently is not present. It already includes a personal care product in Egypt and a toothpaste unit in Nigeria. Dabur can do well in these markets since the profile and preferences of the consumers are incredibly much like India.
iv) Export Plans:
The focus, in the years ahead, is to keep expanding the Company’s presence across geographies and to exploit the opportunities which exist in existing and potential segments. THE BUSINESS will continue to spend money on brand building, manufacturing and human capital as a way to maintain and improve the existing robust growth way.
After the successful execution of the 4-season business plan from 2002 to 2006, Dabur possesses launched another arrange for 2010. The primary objectives are:
Doubling of the product sales figure from 2006
The new approach will concentrate on expansion, acquisition and creativity. Although Dabur’s international business did well – growing by nearly 29 per cent to Rs.292 crore in 2006-07, strategies are to increase it by leaps and bounds.
Growth will be performed through international business, homecare, healthcare and foods.
Southern markets will stay as a focus area to increase its income share to 15 %.
With efficiently sailing through its previous plans, this vision seems possible. Over and over, Dabur has produced decisions that have led to its present position. Nevertheless, if Dabur could be more extreme in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year efficiency table from Dabur’s site.http://foodimg.com/case-research-of-dabur-india-limited-marketing/articleMarketing