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MARKETING MANAGEMENT 1

DABUR OXYLIFE
CASE STUDY ANALYSIS

Submitted to:
Prof. Shivendra Kumar Pandey

Submitted by: GROUP 3


KHUSHDIL VIRDI
ABHISEKH KALRA
SHUBHAM SEN
ROHIT BATHLA
Dabur (Dabur India Ltd.) derived from Daktar Burman is one of India's leading fast-moving
consumer goods (FMCG) companies listed on the Bombay Stock Exchange (BSE) and
National Stock Exchange (NSE). It has niche positioning of "Science based Ayurveda" which
has made Dabur a leading Indian FMCG. It has a market cap of over 50,000 crores.
Building on a legacy of quality and experience of a hundred and thirty-three years, Dabur
today, is a very trusted name in India. It has Consumer Care, Foods, and International
Business as its three strategic business units (SBUs).

Dabur Oxylife was launched in 2011 exclusively for the network of professional beauty
parlours after extensive in-house R&D. Parul Tyagi, National Parlour Head, having 2 years
work experience Dabur, disappointed to see $400,000 sales compared to the current month
target of $490,000. Parul Tyagi missed her monthly targets consecutively for two months.
Currently, the skin care portfolio contributes 5% of Dabur's Indian FMCG business. Skin
care segment is currently growing at 25 percent CAGR and has more than 30 percent margin.
Skin care segment a) Growth rate 25% (CAGR) and b) Margin High; 30%+ gross
contribution. Sales network of 30,000 beauty parlours serviced by 300+ sales professionals

PROBLEM STATEMENT
To identify the existing problems in the beauty parlor sales network and chart a course and
action plan for the sales force in the channel to boost revenues and increase the return on
investment on the 300+ sales team

SWOT

Strengths Weaknesses
a vast distribution network, Lack of Trained Professionals
covering over 5.3 million retail Only 5-10% of all beauty parlor
outlets revenue comes from the organized
Strong in-house R&D players
access to over 26,000 beauty parlors
innovative composition and instant
fairness results
large dedicated team of 300+
professionals
Reputation of Dabur

Opportunities Threats
The shift in consumers towards Declining sales figure
natural, organic and Ayurvedic reduced dependency on parlors
products globally Failing to keep up with the decision
fast growing (25% CAGR) and high makers
margin (30%+ gross contribution) Strong competition like Nature's,
skin care segment VLCC, O3+
45% of urban women visited beauty
parlors once a month in 2016
Growing international market
NEED OF DECISION MAKERS
Salon managers/owners of the Upmarket section needed discount on products which would
give them more revenues. They also focused on Tailored services. Customers of suburban
areas wanted product should have sufficient quantity to serve higher no. of customers and
improvement of their parlour as it was not that much aesthetically good enough. Other
regular customers wanted additional products that would help in providing a better service
to the end customers.

RECOMMENDATIONS
Prioritize the needs of all three segments of the beauty parlour channel and give solution
according to them.Concentrate on the growing international market and introduce a new
beauty parlour chain globally.

For Upmarket :- We need to explain to parlour owners that this 5-10% discount wont matter
to them as what they earn is not from the margins in product but from the exclusivity of
service they provide, so better the product better the customer satisfaction. Moreover
,Oxylife Natural Radiance(SKU = 310 gms) has the most market contribution of 33.9% but
the margin to the parlour is only 5.5%. We can give some discount on this type of items to
boost the sell and also gain a higher penetration in the up market.

For Suburban market: - We can use Daburs strong R&D facility to improve upon the
usability of Oxylife products. It will help the parlours to use for more customers and
generate additional revenue

International Business accounts for 30% of the total sales of Dabur and has a presence in
120 countries across the globe. Globally customers are shifting towards natural, organic and
Ayurvedic products. So, strategy of a new global parlor chain would be an alternate option

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