TERM PAPER
OF
MARTETING OF
IT PRODUCT
DABUR INDIA
First of all I would like to thank the Lovely University and take
the opportunity to do this project as a part of the M.B.A.
Many people have influenced the shape and content of this
project, and many supported me through it. I express my
sincere gratitude to Mrs. Harendra Singh Sir for assigning me
a project of Managerial Economics, which is an interesting and
exhaustive subject.
He has been an inspiration and role model for this
topic. His guidance and active support has made it
possible to complete the assignment.
Last but not the least I would like to thank the Almighty for
always helping me.
DABUR INDIA Limited
Wide and deep market penetration with 50 C&F agents, more than 5000
distributors and over 2.8 million retail outlets all over India
Master brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Réal - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika,
Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool,
Hajmola and Dabur Honey Strategic positioning of Honey as food
product, leading to market leadership (over 75%) in branded honey
market
Vatika Shampoo has been the fastest selling shampoo brand in India
for three years in a row
Has more than 300 products sold through prescriptions as well as over
the counter
f total sales
Leveraging the 'Natural' preference among local consumers to
increase share in perosnal care categories
Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US
Background
The story of Dabur began with a small, but visionary endeavour by Dr.
S. K. Burman, a physician tucked away in Bengal. His mission was to
provide effective and affordable cure for ordinary people in far-flung
villages. With missionary zeal and fervour, Dr. Burman undertook the
task of preparing natural cures for the killer diseases of those days, like
cholera, malaria and plague. Soon the news of his medicines traveled, and
he came to be known as the trusted 'Daktar' or Doctor who came up with
effective cures. And that is how his venture Dabur got its name derived
from the Devanagri rendition of Daktar Burman. Dr. Burman set up
Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching
out to a wide mass of people who had no access to proper treatment. Dr.
S. K. Burman's commitment and ceaseless efforts resulted in the
company growing from a fledgling medicine manufacturer in a small
Calcutta house, to a household name that at once evokes trust and
reliability.
Dabur (an acronym of the name Dr. SK Burman),was set up in West
Bengal as a proprietary firm for manufacturing of ayurvedic drugs. It
started off with a direct mailing system to send medicines to villages in
Bengal. In 1896, Dr. Burman set up a small manufacturing plant at Garhia near
Calcutta for mass production of chemicals and Ayurvedic drugs. In the
early 1900s, the next generation of Burmans took a conscious decision to
focus more on the Ayurvedic medicines market. In 1919, Dabur set up its
Research & Development laboratory for Ayurvedic medicines. In 1936,
Dabur India Pvt. Ltd., was incorporated to take over the business of the
proprietary firm. In 1940, the company diversified into the personal care
products business with the launch of its Dabur Amla Hair Oil. In 1949,
Dabur launched Chyawanprash in a tin pack making it the first branded
Chyawanprash in the country. It expanded its personal care portfolio by
adding oral care products in 1970. Dabur Lal Dant Manjan was the first
product to be launched. In 1972, Dabur shifted base to Delhi from
Calcutta and started production from a hired manufacturing facility at
Faridabad. In 1978, Dabur launched the Hajmola tablet. It set up ‘The
Dabur Research Foundation (DRF),’ an independent company, in 1979 to
spearhead Dabur’s research needs. In the same year, commercial
production started at Sahibabad. In 1986, Dabur became a public limited
company through a reverse merger with Vidogum Ltd. and was
rechristened Dabur India Limited. The next year Dabur set up a facility at
Noida Export Processing Zone to cater to the global markets. In 1990, it
set up a branch office and warehousing operations in London to service
the European markets. In 1991, it set up Dabur Overseas Ltd. in Cayman
Islands to cater to its overseas investment needs. Dabur Overseas Ltd.,
later funded Dabur Egypt Ltd., in Cairo, which manufactured personal
care and food products. In 1992, Dabur entered into 49:51 joint venture
with the Spanish confectionery major Agrolimen group under the name
General De Confeteria India Ltd. (GCI). The same year Dabur entered
into a biscuit joint venture named Excelcia Foods with Nestle. Dabur
came out with its initial public offer in November 1993, raising Rs. 541.5
mn (at Rs. 95 per share). The issue was oversubscribed 21 times. Dabur
used the funds to expand and modernize its production bases and to
develop new production facilities. In the same year Dabur roped in AF
Ferguson to offer advice on a restructuring plan. Based on its
recommendations, Dabur was broken up into seven profit centers and
professionals were brought in.In 1997, Dabur launched its ‘Project
STARS’ (Strive To Achieve Record Successes) to achieve accelerated
growth in the coming years. The scope of this project was identified as
the entire gamut of strategic, structural and operational changes to enable
efficiencies and improve growth rates.
In April 1997, Dabur hired consultants McKinsey & Co to strengthen
its competitive position. Dabur introduced Samara range of herbal skin
and hair care products in early 1997. In 1998, the Burman family handed
over management of the company to a professional CEO and limited their
role to strategic inputs at Board level. Ninu Khanna joined Dabur as CEO
in November 1998 on a three-year contract. In the same year, Dabur
entered into a 50:50 joint venture with Bongrain of France, a Fortune 500
company in processed and specialty cheeses. The venture was named
Dabon International and began manufacturing cheese products in Noida
(UP). In 1999, the company implemented a restructuring template
prepared by McKinsey & Co. It withdrew from the low margin
businesses like merchant exports, veterinary drugs and herbal
intermediates. It also exited from two joint ventures in Excelcia Foods
with Nestle and General De Confiteria Ltd., with Agrolimen. It
discontinued its Samara line of herbal cosmetics and pulled out of
veterinary products and bulk drugs. In 2001, Dabur set up a
manufacturing facility in UK for oncology injectibles at an investment of
$15 mn where commercial production is slated for late 2004. The state-
ofthe- art plant and laboratory in UK have approval from the MCA of
UK. They follow FDA guidelines for production of drugs specifically for
European and American markets. In 2001, Dabur roped in Accenture to
define clear roles and responsibilities of its board of directors and the
chief executive officer to prevent any overlap. In the same year, Family
Council was constituted for formalizing the promoter family’s role in
managing the business interests encompassing all group companies. The
roles of Management Committee, Board of Directors and Family Council
were defined and formalized. In December 2001
IT initiatives, the company now plans to take the battle to its competitors
with an entry into the FMCG sector and believes IT to be an
indispensable weapon in this war. Says Gopal Shukla, chief information
officer, Dabur, “Most industries use IT in certain distinct phases before
evolving into a complete e-business enabled organisation. We are
currently in one of those phases and believe it to be the fourth major asset
of the company (other three being strong brand image, new product
development strengths and an extensive distribution network).” In an
effort to establish itself as a strong player in the FMCG sector, Dabur has
already started implementing IT systems and processes all across the
company. Says Shukla,
.Dabur Vision
The vision is intertwined with below mentioned core values of the company:-
Ownership: This is our company. We accept personal responsibility, and
accountability to meet business needs
People Development: People are our most important asset. We add value
through result driven training, and we encourage & reward excellence
Strategic intent
Following are the defined means to achieve that intent:-
Marketing strategies
Focus on growing our core brands across categories, reaching out to
new geographies, within and outside India, and improve operational
efficiencies by leveraging technology
Dabur provides its products into various segments. Dabur presents range
of herbal personal care products. Bringing together the gentle touch of
nature and Ayurveda’s wisdom. Backed by the unfailing quality of Dabur
Products. Hair oil, Fairness face pack, Shampoo, Tooth paste, red gel, lal
dant manjan, dabur binaca toothbrush, vatika hair oil, anmol sarso aawla,
vatika heena conditioning shampoo, vatika anti-dandruff shampoo.
Instead of this in food range of REAL active natural juice, dabur
homemade, dabur honey etc., are the few Successful brands of company.
Balsara has invested significantly behind these brands over the years. All
these product segments have significant growth potential, owing to low
penetration levels.
Dabur’s international business is profitable and has operating margins
only slightly below those of the domestic business. According to
management, there is further potential for expanding margins for the
international business. International operations have a footprint in 25
countries spread over six continents; however, a major part of its business
is concentrated in the Middle East. The company also has four
manufacturing facilities located in UAE, Bangladesh and Egypt.
According to management, the company is looking to expand its presence
in the Middle East, the Indian Subcontinent, Russia and Africa. For the
developed markets in the US and Europe, Dabur is looking at alliances
with distributors, focusing mainly on over-the counter herbal healthcare
products.
Product mix
.HAIR CARE
ANTI-DANDRUFF SHAMPOO
ANTI-DANDRUFF SHAMPOO
ANMOL SHAMPOO
ANMOL SHAMPOO
SKIN CARE
GULABARI
HEALTH SUPPLEMENTS
DABUR CHYAWANPRASH
DABUR CHYAWANSHAKTI
GLUSOSE D
DIGESTIVES
SHILAJIT RING-RING
BABY CARE
ORAL CARE
RED TOOTHPASTE
BINACA TOOTHBRUSH
RED GEL
BALSARA
BABOOL TOOTHPASTE
MESWAK TOOTHPASTE
PROMISE TOOTHPASTE
HOME CARE
ODOMOS ODONIL
REAL
REAL ACTIV
DABUR HONEY
DABUR HOMMADE
LEMONEEZ
Culinary
Pricing strategies
Dabur India Ltd has decided to cut Vatika shampoo prices by 20 per cent
from next month besides launching the brand in one-rupee sachets to gain
volumes.
Promotion strategies
Distribution strategies
When Dabur India Ltd (DIL) announced its intention to acquire brands
positioned on the herbal plank in the personal and healthcare segments in
September last year, the announcement left many in the industry
wondering.
Where were brands that had perceived equity and potential for further
growth? And if such brands were there in the fast moving consumer
goods (FMCG) space, wouldn't they be already spoken for? What about
ticklish issues such as brand valuation and deal size?
But when the company finally announced the acquisition of three Balsara
group companies in an all-cash deal last week for Rs 143 crore, industry
watchers could not help nodding their approval.
After all, the acquisition is not only synergistic with Dabur's present
product mix, it also comes at a time when the company is trying to
occupy each price point in the oral care market. The deal also allows DIL
to enter the high-growth household product area.
whether the company's appetite for acquisitions was sated, DIL is open to
more acquisitions in areas where the company already operates —
personal care, healthcare, foods and now household care.
Pointing out the synergies with DIL, he says this acquisition brings not
only a complementary brand portfolio but also economies of scale in
marketing, sales and distribution. Balsara has three manufacturing sites at
Kanpur, Silvassa and Baddi. Duggal says there are no plans to rationalise
manpower at Balsara companies where the total headcount is 600.
But while this acquisition makes sense for Dabur, why would Balsara
want to divest all its well-known brands? Duggal explains that this was
necessitated as the brands needed large-scale investments that the
promoters of Balsara were unable to make. Despite several attempts,
Balsara officials remained unavailable for comments.
In addition to the oral care and household care businesses, Balsara also
operates in the high-growth private label and herbal extracts and
complexes businesses. The fate of these two businesses after DIL's
acquisition also could not be ascertained.
Company Dabur India Ltd mark a good impact in india of FMCG product
the target is cover to all rural or urban area’s because 80% in India
Supply there product is a chain