Monday, June 3, 2019

Case Study of Dabur India Limited Marketing Essay

Case Study of Dabur India Limited Marketing Essay entryDabur India Limited is a leading Indian consumer goods keep company with interests in copper C atomic number 18, spoken solicitude, Health C be, Skin Care, Home Care and Foods. From its humble beginnings in the by lanes of Calcutta way back in 1884 as an Ayurvedic treats company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India.The founder, Dr.S.K.Burman, was a practicing exclusivelyopathic doctor. At that time Malaria, Cholera and Plague were the common diseases. He was a physician who brought Ayurvedic medicines to the masses of Bengal. Initially effected as a copyrighted firm for the manufacture of chemicals and ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt.Ltd. to blow ones stack the operations by setting up production facilities 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 company was renamed DABUR INDIA LIMITED.For the past cxxv years, they have been dedicated to providing spirit-based solutions for a healthy and holistic lifestyle. Through their comprehensive range of products, they cater to all consumers, in all age groups, crossways all social boundaries. And this legacy has helped them develop a bond of trust with the customers.VISIONDedicated to the health and well being of every house hold.Dabur is a company with a set of established worry values, which direct its functioning as well as all its operations. The guiding forces for Dabur are the words of its founder, Dr.S. K. Burman, what is that life cost that cannot give comfort to others. The familiarity offers its customers, the products to suit their postulate and give them good values for money. The company is committed to follow the ethical practices in doing business. At Dabur, nature acts as not only the source of raw materials but also an inspiration and the company is committed to product the ecological balance.Journey so farhttp//www.dabur.com/pages/by4hm8ur/116/dabur_build.jpg1884 The birth of Dabur1972 The company shifts base to Delhi from Kolkata1986 Registered as Public Limited Company1994 Listed on the Bombay Stock Exchange1998 Professional team inducted to run the company2000 Crosses Rs. 1000 Crore overthrow2003 Pharmaceutical Business de-merged to instruction on core FMCG2004 Profit exceeds Rs. 100 Crore2005 Acquire Balsara strengthening Oral care provided entry into Homecare divide2006 Dabur figures in vertex 10 Great Places to Work2007 Dabur ranked among Asias best under a Billion enterprises by Forbes2008 Acquired Fem Care Pharma entering the mainstream Skin care segment2009 Strong goth momentum continued in spite of general economic downturn. Also Dabur Red Toothpaste becomes Daburs 9th Billion Rupee grass.2010 Touched US$4 billion securities industry cap. Overseas acquisition, Hobi conclave, Turkey to strengthen presence in MENA and adjacent regions.Dabur At-a-GlanceDabur India Limited has marked its presence with significant achievements and today commands a mart leadership status. Their story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to their partners and stakeholders.Leading consumer goods company in India with a turnover of Rs. 3417 Crore (FY10)3major strategic business units (SBU) Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD)3Subsidiary Group companies Dabur International,Fem Care Pharma and newuand8 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 (reticular activating system Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).17 ultra-modern manufacturing units pass around around the globeProducts tradeed in over 60 countriesWide and deep securities industry penetration with50 CF agents, more than 5000 distributors and over 2.8 million retail outlets all over IndiaDabur India Ltds manufacturing activities spanning various consumer products categories are carried out in 17 factories spread across India and abroad.Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal).http//www.dabur.com/images/india-map.jpgDaburs Business StructureNote Percentage share in tax revenue based on FY10 Financials Femcare included in Consumer Care DivisionConsumer Care Division (CCD)Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Ca reFoods. overwhelm brandsDabur Ayurvedic healthcare productsVatika Premium hair careHajmola Tasty digestivesRal yield juices beveragesFem Fairness bleaches skin care products9 Billion-Rupee brands Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur edulcorateStrategic positioning of Honey as food product, leading to grocery leadership (over 75%) in branded honey marketDabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.VatikaShampoo has been the fastest selling shampoo brand in India for three years in a rowHajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every dayLeader in herbal digestives with 90% market shareCategory-wise Share of CCD http//www.dabur.com/pages/by4hm8ur/115/GlanceImg1.jpgBrand OverviewConsumer Care Categories whisker Care pilus anele ShampooSource Value share-ACN June, 09 Val ue Share-ACN Mar, 10Oral CareValue Share-ACN March, 2010Health SupplementsValue Share-ACN March, 2010FoodsCompany Est. Mar, 2010 for Fruit Juice categoryCUsersUser 11Desktopuntitled2.bmpCUsersUser 11DesktopimagesCAXZ8F24.jpgCUsersUser 11Desktopimages.jpgCUsersUser 11DesktopPG-IIIRKSDabur Real- Mrktg Planburrst.jpgCUsersUser 11Desktopuntitled6.bmpSkin Care*Company estimates Includes Fem skin care portfolioCUsersUser 11AppDataLocalMicrosoftWindowsTemporary meshing FilesContent.Worddabur-health_06.jpgDigestivesValue Share-ACN March, 2010CUsersUser 11DesktopimagesCALG7F5C.jpgCUsersUser 11AppDataLocalMicrosoftWindowsTemporary Internet FilesContent.Worddabur-personal_08.gifCUsersUser 11Desktopdabur-digestive_09.gifHome CareValue Share-ACN Mar,2010 for Aerosols category OdonilOdomosOdopicSani FreshConsumer Health Division (CHD)Consumer Health Division (CHD) offers a range ofclassical Ayurvedic medicinesand Ayurvedic OTC products that deliver the passe benefits of Ayurveda in modern ready -to-use formats. Daburs Consumer Healthcare business is the Companys oldest business, and today has a growing portfolio of OTC products to address a variety of problems ranging from Womens Health to Baby Care and cough up Cold to Rejuvenation.Has more than 300 products sold through prescriptions as well as over the counterMajor categories in traditional formulations include Asav Arishtas Ras Rasayanas Churnas Medicated OilsProprietary Ayurvedic medicines developed by Dabur include Nature Care Isabgol Madhuvaani TrifgolDivision also works for promotion of Ayurveda through organised community of traditional practitioners and exploitation fresh batches of studentsCUsersUser 11Desktopuntitled.bmphttp//www.dabur.com/pages/by4hm8ur/115/GlanceImg2.jpgThe Consumer Health Division, CHD witnessed a ripening 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 has been wide by launching Pudin Hara Lemon Fizz in the acidity segment.International Business Division (IBD)International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North West Africa, European Union and the USwith its brands Dabur VatikaGrowing at a CAGR of 33% in the tolerate 6 years and contributes to about 20% of total gross revenueLeveraging the Natural preference among local consumers to increase share in perosnal care categories steering markets GCC Egypt Nigeria Bangladesh Nepal USHigh level of localization of manufacturing and sales marketingworldmapDaburs International businessThe Companys key markets for international business are the Middle East, Africa, UK and south Asian geographies, with manufacturing plants located across regions. The Company also has a private label business in USA and UK, along with Guar gum exports, which takes place from its Indian plants.The Companys International Business Division reco rded 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 overall consolidated sales. The operating margins of the business improved significantly during the year reflecting the strength of the brands even though the external conditions were punk rocker and the environment was plagued by recessionary trends, currency depreciations and demand contraction.Robust sales growth in international markets was possible due to Strong Brand portfolio positioned on herbal and natural platform Aggressive new product launches and brand extensions Geographical expansion into new markets Strong sales and dissemination network Strong manufacturing backbone and expansion of own manufacturing in key geographies Localised and economic supply chain.Product PortfolioThe company has built good and robust brand architecture with two mega brands for international business across all geographies Dabur and Vatika and most of its offering s are under either of these two brands.Dabur Amla Dabur Amla franchise achieved a growth of 38% along with all the extensions. Basis Nielsen Retail Audit in KSA, Dabur Amla Hair Oil with a market share of 34.2% is the biggest brand in the hair oil segment. Dabur Amla Gold has market share of 6.8% while Dabur Amla Jasmine is at 5.1%. The Amla franchise has now been extended to the Hair Cream Category with the launch of Dabur Amla Hair Cream. It has become the fastest growing brand in the Hair Cream segment notching up sales of more than INR 13 Crore in first year of launch.Vatika thither has been a robust growth of 36% in the Vatika franchise which includes Vatika Enriched Hair Oil, Coconut Hair Oil, Hair Creams and Hamam Zaith. Vatika brand is now worth Rs.185 Cr built from a negligible base over the inhabit four years in the Arab belt. There was a successful re- launch of Shampoos and Conditioners, launch of one more variant in Hamam Zaith and re-launch of Vatika Coconut Hair Oil. Light hair oil range of Vatika Hair oils registered 51% growth in MENA. Vatika Hair Cream is now an INR 64 Cr brand in MENA. Vatika Hair Cream gained 370 bps in market share and becoming 12.7% of the market in volume terms. It grew by 44% in volume terms over LY in a category that has remained flat. Vatika Hair Cream is now the no. 2 player in Modern Trade with a 15.6% volume mkt share despite raptorial competition from established brands.Vatika DermoViva a new sub- brand launched for the Personal Wash and Skin Care segment had its first launch in the Bar Soap category and has managed to take consumer equity in a category dominated by strong MNC players.FEM The FEM brand was strengthened in the overseas markets through ATL and BTL inputs which saw the brand grow by 100% in just nine months of operation since the takeover.Daburs International MarketThe key contributing markets/ regions to the International Business growth have been GCC, Egypt, Nigeria, Algeria, Morocco, Libya, Ye men, Syria and South Africa.GCC, the largest market in the International Business Division and despite being a mature market, has registered a strong growth of 42% over last year fuelled by innovations and new product launches in the Hair Care, Personal Wash and Oral Care segments.Dabur Egypt Limited has witnessed another spectacular performance with 30% growth in sales.African Consumer Care, Nigeria has grown by 17% over last year in local currency terms, aided by strong growth of Dabur Herbal Toothpaste and Dabur Herbal Gel in the Oral Care category.Asian Consumer Care, Pakistan has grown by 26% in revenue with Hajmola and Dabur Amla emerging as the two strong brands for the region.Dabur Internationals UK Branch has seen a 23% growth over previous year which has been the highest growth rate for this region in the last 8 years.Markets of North Africa, Levant and Yemen have seen an impressive performance with 49% growth over previous year.Asian Consumer Care, Bangladesh, has perform ed well with a growth of 47% during the fiscal 2009-10. The growth has been led by increased distribution penetration and focussed brand approach.Dabur Nepal Pvt Limited which manufactures fruit juices and also caters to local consumer market in Nepal recorded impressive growth of 26% in its sales to the domestic market of Nepal.Dabur recently has acquired Turkey-based personal care company Hobi Kozmetik Group in a deal at Rs. $ 69 million. The company, in a move to expand its presence across Middle East and North African region, has make the acquisition. Hobi Kozmetik is a market leader in the hair gel category with 35% market share. Companys products sold under Hobby and New Era brands across 35 countries. The transaction is expected to be completed by Q3 of FY11. Dabur, which is the largest FMCG in India with large market capitalization, has huge investment and expansion plans as the company aims to expand its foreign sales.Exports from IndiaThe company also exports guargum and p rivate label oral care products from India. During 2009-10 the company recorded Guargum exports to the tune of Rs.43.3 crore as compared to Rs.48.3 crore in the previous year. The sales were demoralise due to weak world(prenominal) demand and recessionary environment.Exports to USA recorded 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 US sales comprise Private Label and Ethnic business. severalize markets in USA and Europe contributed to the growth. Innovative product developmentsin Oral care private label- such as Pro-age, Sensitive and Herbal toothpastes were launched. Ethnic Sales in USA and Canada also performed well recording 80% growth albeit on a low base. Various new products were successfully launched in the market and penetration ofmainstay Dabur products exchangeable Hair Oils and Chyawanprash into Canadian mainstream retail chains s uch as Walmart was achieved.Competitor AnalysisCategoryDaburs ShareMain CompetitorsFruit Juice58% Real and ActiveTropicannaFruit Drinks (coolers)1% CoolersFrooti And MaazaHair oil Coconut base6.4% VatikaHLLShampoo Vatika7.1%HLL and PGHair care (overall)27%HLL, PG and HimalayaChyawanprash64%Himani, Zhandu and HimalayaHoney40%Himani, Hamdard and local PlayersDigestives37%Paras and local playersCompetitionMarket Cap.(Rs. cr.)SalesTurnoverNet ProfitTotal AssetsHUL60,897.6317,725.332,202.032,583.52Dabur India18,851.772,874.60433.15859.35Godrej Consumer12,917.721,267.88248.12839.87Colgate11,244.571,770.82290.22330.70Godrej Ind7,770.69880.9719.331,570.31Marico7,641.542,030.85235.02948.58PG7,169.93904.46179.76440.02Emami6,891.491,006.86165.40878.42Gillette India5,953.64852.48137.10490.89Jyothy Labs2,440.33579.8780.05399.10Source moneycontrol.comRecommendationsEntering coarse marketDabur should target more towards the rural market and tier 2 and tier 3 cities. These markets have traditional ly been loyalists to Daburs ayurvedic range of personal products.Tapping rising global demand of herbal and Ayurvedic productsThere is a new trend in the global market that has increased the demand of herbal/ ayurvedic products. This is the time when Dabur should relaunch itself as a key international player in the global arena.Also in the domestic market, there is a huge scope for Dabur to launch niche/ highlife segment products catering to specific target groups.i) Development of new markets for Products ServicesNew avenues for growth were opened up with expansion into the new markets of Cambodia, Philippines, Belarus, Gambia and Bolivia. The Sales Distribution infrastructure has been augmented by appointing new distributors in CIS, Mozambique, Guinea and Rwanda. Local resources have been deployed in key markets of Yemen, Syria, Kuwait, Malaysia and Tanzania to strengthen the SD structure.ii) Entering US MarketThe Company is also trying to break into the US Market where it is at tempting to build a full fledged distribution channel. It is also worthwhile to mention that some of its products like Chyawanprash are selling in the US via Indirect channels. But this task is going to be a difficult one since US laws are tough and the preferences of consumers also vary greatly than that of markets which are usually catered to by Dabur.iii) Target- South AfricaIn Africa the company is looking at markets like South Africa where it currently is not present. It already has a personal care unit in Egypt and a toothpaste unit in Nigeria. Dabur can do well in these markets since the profile and preferences of these consumers are very much like India.iv) Export PlansThe focus, going forward, is to continue expanding the Companys presence across geographies and to exploit the opportunities that exist in existing and potential segments. The Company testament continue to invest in brand building, manufacturing and human capital in order to maintain and improve the existing robust growth path.Vision 2010 after(prenominal) the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. The main objectives areDoubling of the sales figure from 2006The new plan will focus on expansion, acquisition and innovation. Although Daburs international business has done well growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.Growth will be achieved through international business, homecare, healthcare and foods.Southern markets will remain as a focus area to increase its revenue share to 15 per cent.With smoothly sailing through its previous plans, this vision seems possible. Time and again, Dabur has made decisions that have led to its present position. However, if Dabur could be more aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year performance table from Daburs website.

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