MARKETING MANAGEMENT

Project
On
DABUR

TABLE OF CONTENTS

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INTRODUCTION ABOUT DABUR 3

STP STRATEGY.. 4
SWOT ANALYSIS 5
PESTEL ANALYSIS. 6
PORTER 5 FORCES. 8
PROPOSALS AND RECOMMENDATIONS. 9
REFERENCES. 11

About the Company:

Setup in 1884 by Dr S K Burman as a proprietary firm for the manufacture of ayurvedic
drugs, the Company was incorporated later by his descendants in the name of Dabur (Dr S
K Burman) Pvt. Ltd. In the late 1970s, Dabur Pvt. Ltd promoted a company to manufacture
high-grade guar gum and a plant was set up at Alwar. However poor performance resulted
in losses and with a view to rehabilitate the company, Dabur Pvt. Ltd was reverse merged
and the new company was named Dabur India Ltd.
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With Revenues of over Rs 8,436 Cr. & Market Capitalization of Rs.44000 Cr., Dabur is today
Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care
Company. Dabur manufactures over 450 products, primarily ayurvedic, covering a wide
range of health and personal care and has manufacturing plants located at 6 different
places in the country.
Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 5.3 million retail outlets with a high penetration in both urban and rural
markets. Also Dabur has a huge presence in the overseas markets and its products are
available in over 120 countries across the globe. The brand is highly popular in the Middle
East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today
accounts for over 30% of the total turnover.

Mission:
"Dedicated to the health & well being of every household"
Principles:

Ownership
Passion For Winning
People Development
Consumer Focus
Team Work
Innovation
Integrity

SEGMENTATION
Geographic Segmentation:Dabur has segmented the domestic consumer market nationally as well as regionally. Rural
India accounts for nearly 50% of the domestic FMCG sales for Dabur. During 2012-13,
company launched Project Double in order to increase its coverage of the rural markets.
Dabur has recognized the international demand of its products and forayed into foreign
markets. The international business now contributes 32.4% to consolidated sales. The major
international markets are Middle East, Africa, Asia (ex-India), Americas and Europe.
Demographic Segmentation:Economic Status Lower, Middle and Upper class

Age (Every age group) Dabur targets kids 6 to 10 years old; Ladies (Mothers), Youths
and Old age people.
Family Life Cycle Stage Family with adolescent, ladies and old
Psychographic segmentation:Lifestyle Dabur targets people who are health conscious, want to replace sugar and old
age people who avoid sugar. Honey is also taken as medicine such as during cough given to
kids. Dabur honey today is associated with a lifestyle of the young and old of all class.
Needs and Benefits
Dabur successfully categorized the consumers on the basis their needs and benefits.
Health conscious customers
Personal care segment such as hair care and skin care
Food and home care segment

TARGETING
Dabur has a distribution network that covers 175 towns and 75 thousand retail outlets
making its product available to the consumers across the country at ease.
The Target Market for Dabur is people of all income levels. The target market of Dabur is
People in the Upper, Middle and Lower class. Also, Dabur has targeted the
overseas market and has become a popular brand with its products available in over 120
countries.
Dabur Honey also re-launched itself in 2014 with a new logo. The product was also made
available in Rs 10 pack, which has been hugely successful and has added new
consumers to the brand. The market had a distinct need of small packs of honey to
feeding children and for religious usages. This has helped Dabur address the need
and it has been hugely successful and has added new consumers to the brand.
POSITIONING
Focused on the growing acceptance of ayurvedic and natural products in the consumer
space.
With #BraveAndBeautiful Campaign, Dabur positioned itself as a brand that cares and
helps to overcome hardship.

 Positioned the personal care products as an ayurvedic and herbal usage. To extract the
max benefit of natural product.
Presented with quality products within the affordable range.

SWOT ANALYSIS

Strengths

Century old established brand. Has a

legacy of over 130 years.
Strong distribution network has a very
extensive supply chain. It has
penetrated to a large extent in rural
markets as well.
Excellent marketing and advertisements
Strategic partnerships
R&D plant is a key strength

Opportunities

Weakness

SWOT
Analysis

Export opportunities (overseas

dealerships)
Increasing income level of middle class
People are becoming more health
conscious

Purity plank didnt work (since it is

anyway synonymous to quality).Problem
is no new uses compared with just
medicinal use.
No retail outlet
Food products have a limited shelf life

Threats

Other brands (Patanjali, Baidyanath,

Zandu,Golden
Meadows,Allieds,Mehsons) have gained
recognition in undifferentiated market
by offering lower pricing
Tough competition from local
manufacturers
Competition from organic food brands,
which are making an immense impact
on upper middle class.

PESTEL ANALYSIS ON DABUR

POLITICAL FACTORS:
Licenses: Dabur has decided to strengthen its portfolio by inking a license agreement with
the government to produce new Ayurvedic drugs. The license was procured thanks to its
greenhouses in the Himalayas where it grows the rare herbs that are used for producing
these medicines. Thus Licenses are procurable from the government without much hassle.
Government interference: Government of India supports the industry to expand & to
export its products & to grow.
Trading policies: Trading policies are also favorable for Dabur Company so it can export its
products & it also helps them to expand & to grow.
ECONOMIC FACTORS:
The steps taken by the government in recent times have shown positive results as India's
gross domestic product (GDP) at factor cost at constant (2011-12) prices 2015-16 is Rs
113.5 trillion (US$ 1.668 trillion), as against Rs 105.5 trillion (US$ 1.55 trillion) in 2014-15,
registering a growth rate of 7.6 percent. This is a favorable economic environment for
Dabur.
Living standard: Rise in the living standard of people has increased Daburs production
level & they continue to produce high quality & variety of products.
Foreign direct investment (FDI) in India have increased by 29 per cent during October
2014-December 2015 period post the launch of Make in India campaign, compared to the
15-month period before the launch. So India is able to attract good amount of investments.
Inflation rate: The decreasing inflation rate in India is favorable to Dabur as the products
sales is not hampered by high prices.
SOCIAL FACTORS:
The rising population is a favorable factor for Dabur as its market size is increasing.
Moreover, people are now more health conscious due to the influence of media. Therefore
they have begun to understand the significance of Ayurveda as it has no side effects and is
natural. This is a favorable to Dabur and it has a wide array of Ayurveda products.
Distribution of income: This shows that how income is distributed in the economy. It
directly affects the purchasing power of the buyers. And ultimately leads to increase or
decrease in the consumption level of the products.
Consumerism: This indicates that a large number of options are available while purchasing
of goods to consumers, so the choice becomes easy & quality products can be chooses by
consumers. So while purchasing a consumer has different choices to select product
according to his needs.

Education levels: Education is one of the most important factors which influence the
buying power of consumer, while selecting a particular good. The Education is getting
increased importance all over the world. Thus the modern customer is able to identify the
quality product, a good thing for Dabur.
Sundesh is a non profit organization engaged in carrying out Health Care, Education and
other socio-economic activities activities with the aim of improving the quality of life of the
people in rural areas.

TECHNOLOGICAL FACTORS:
Basic technology for manufacturing is easily available. Also technology for most of Daburs
products has been fairly stable.
Technology and research development activities of Dabur is spearheaded by Dabur
Research Foundation (DRF) an Indian contract research organization offering pre-clinical
services in drug discovery and development. It was established in 1979.
Advancement in technology: Dabur Focuses on growing their core brands across categories,
reaching out to new geographies, within and outside India, and improve operational
efficiencies by leveraging technology.
Automation: All the works in Dabur are done automatically by the machines as earlier it is
labor oriented. Now all the work is machine oriented.
ENVIRONMENTAL FACTORS:
Environment regulations: The preferred company to meet the health and personal
grooming needs of their target consumers with safe, efficacious, natural solutions by
synthesizing the deep knowledge of Ayurveda and herbs with modern science.
Dabur has been working towards protecting endangered herbs and plant species. It has
undertaken a host of interventions across India to not just protect rare medicinal and
aromatic plants, but also enhance the livelihood of local farmers.
Dabur has initiated a project for providing high quality, affordable solar solution in
households for their daily uses.
Environmental protection: Dabur is a Responsible Company to protect Ecological system
& use Eco-friendly products.
LEGAL FACTORS:
Legal: Different laws are made by the government to safe guard the rights of consumers.
For example- Consumer protection act, this law indicates that a consumer can file a case
against a seller if he finds that he is cheated.
Companys law: The Company fulfillsthe entire law requirement so as to grow, develop &
to sustain in the competitive market.
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Employment law: Employment law provides equal opportunities to every citizen to work &
earn his livelihood. It provides equal opportunities to every citizen.
Consumer protection: This law helps to protect the rights of consumers & he can file a
case against seller if he finds that he is cheated.
Industry-specific regulations: These laws are related to industry for example- no
industry can establish in between cities i.e. it should be outside the cities.

Dabur Porters Five force model:

Threat of substitute products:
1. Dabur is a leader in the herbal digestives segment where its product has 90% of the
market share. This is a clear advantage for Dabur as it has the required core knowledge and
expertise.
2. This is not a significant threat since FCMG or Herbal products esp. Ayurvedic hardly had
any substitute. However, there are substitute products available at competitive prices now
(Eg :Patanjali)
3. Dabur has to constantly re invent itself considering the fact that there competitors to
deal with .
Threat of new entrants:
1. Advantages - Brand loyalty, 100 year legacy , patents .
2. Significant entry barrier not present.
Bargaining power of Customers:
1. Increased drastically due to new entrants into the market ( local and global
competitors) .Wide range of choices available to customers .
2. Quality needs to consistently improve and pricing plays an important role in order to keep
abreast with increasing competition
Bargaining power of Suppliers:
1. Dabur has a 100 years presence and it has a very strong bond with its supplier.
2. Has a policy of accountability to its stakeholders (customers, shareholders, employees
and suppliers ).
Competitors:
Patanjali , Hindustan Unilever Ltd , Tata tea , Nestle India Ltd , Procter &Gamble , Cadbury
India Ltd , Reckitt Benckiser Ltd , Colgate Palmolive Ltd ,Britannia Industries Ltd.
Dabur needs to constantly relook its strategy and keep reinventing and branding itself in
order maintains and increases its market presence.
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PROPOSALS and RECOMMENDATIONS

Segmentation:
Geographical segmentation: Overseas sales & international market segment
which are in a developing should be tapped to a greater extent e.g. South
East Asia and Africa.
Rural-Urban Segmentation: Fair share should be maintained between rural
and urban e.g. maintains 50-50 balance of market share between small towns
and cities.
Demographics Segmentation: Economic Status Middle and Upper
class(Product premiumization will be the focus.
Age (Every age group) Babies 0 to 6 years, Kids 6 to 10 years, Youth,
Ladies (Mothers)
Family Life Cycle Stage Family with babies, adolescent, ladies.
Targeting:
With the Porter and Swot analysis we find that Dabur hasnt explored much
baby healthcare products so this area will be tapped.
Youth market needs to be targeted further considering the market share and
rise in income.
Rural initiatives need to be tapped.
More awareness programs need to be conducted to Medical representatives.
Digital Markets are gaining wide importance so this area must be utilized to
fullest.

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Positioning:
Dabur must position itself as a premium brand across its product spectrum as
it is facing stiff competition with Patanjali and local players. They must target
premium markets
Dabur must position itself as a leading player in Baby healthcare segment.
Dabur must position itself as a leading player in Youth related product
requirements (which may vary based on gender and relative age).

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REFERENCES
http://www.dabur.com
http://timesofindia.indiatimes.com/business/india-business/Dabur- to-makeAyurvedic-drugs- for-diabetes-malaria/articleshow/51115325.cms
https://en.wikipedia.org/wiki/Economy_of_India
http://www.focus-economics.com/countries/india
https://en.wikipedia.org/wiki/Dabur_Research_Foundation
http://marketingofdaburr.blogspot.in
http://www.campaignindia.in/article/dabur-honey- gets-a- new-look/410843
https://www.scribd.com/
http://www.slideshare.net/Bac007/marketing-strategy- for-dabur
http://www.mbaskool.com/brandguide/food-and- beverages/482-daburhoney.html
http://www.managementparadise.com/documents/tag/SWOT%20ANALYSIS
%20ON%20DABUR%20HONEY/

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