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A project on distribution channel of

Dabur

Submitted to :-

Prof. U.C.MATHUR submitted by:-


PARAMITA
CHATTOPADHYAY (72)

POOJA SHRIVASTAV (74)


SANDEEP KUMAR
(90)

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VAIBHAV
SHRIVASTAV (113)

Content
1. Acknowledgement 3.

2. Overview of FMCG sector in INDIA 4.

3. About DABUR 5.

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Acknowledgement
“If the words are symbol of undiluted feelings and token of gratitude then let
the words play the heralding role of expressing my feelings.”

It gives me immense pleasure to present this project report on distribution channel


of DABUR carried out at INMANTEC B School. This project is the result of time,
efforts and knowledge contributed by various member of the team. It was a the
great experience for us as in this we got the opportunity to learn and experience the
FMCG sector.

No work can be carried out without the help and guidance of various persons. We
are happy to take this opportunity to express my gratitude to those who have been
helpful to us in completing this project report. They have been the source of guide
and motivation for the completion of the project.

We would like to thank our faculty guide Prof. U.C.MATHUR without whom
this project would not be possible.

"We are responsible for what we are, and whatever we wish


ourselves to be, we have the power to make ourselves. If what we
are now has been the result of our own past actions, it certainly
follows that whatever we wish to be in future can be produced by
our present actions; so we have to know how to act. "

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- Swami Vivekananda

OVERVIEW OF FMCG SECTOR IN INDIA


The Indian FMCG sector is the fourth largest sector in the economy with
a total market size in excess of US$ 13.1 billion. It has a strong MNC
presence and is characterized by a well established distribution
network, intense competition between the organised and unorganized
segments and low operational cost. Availability of key raw materials,
cheaper labor costs and presence across the entire value chain gives
India a competitive advantage. The FMCG market is set to treble from
US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as
well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly
the middle class and the rural segments, presents an opportunity to
makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading' in
the matured product categories. With 200 million people expected to
shift to processed and packaged food by 2010, India needs around US$
28 billion of investment in the food-processing industry.

India is one of the largest emerging markets, with a population of over


one billion. India is one of the largest economies in the world in terms
of purchasing power and has a strong middle class base of 300 million.
Around 70 per cent of the total households in India (188 million) reside
in the rural areas. The total number of rural households is expected to
rise from 135 million in 2001-02 to 153 million in 2009-10. This
presents the largest potential market in the world. The annual size of
the rural FMCG market was estimated at around US$ 10.5 billion in
2001-02. With growing incomes at both the rural and the urban level,
the market potential expected to expand further.

An average Indian spends around 40 per cent of his income on grocery


and 8 per cent on personal care products. The large share of fast
moving consumer goods (FMCG) in total individual spending along with

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the large population base is another factor that makes India one of the
largest FMCG markets.

ABOUT DABUR:-
In its 125 years of existence, the Dabur brand has stood for goodness
through a natural lifestyle. An umbrella name for a variety of products,
ranging from hair care to honey, Dabur has consistently ranked among
India’s top brands. Its brands are built on the foundation of trust that a
Dabur offering will never cause one harm.

Brief history:-
The evolution of Dabur is quite interesting and its root takes us
back to the 19th century where it all started in Bengal by a
visionary by name Dr. S.K Burman, a physician by profession.
His mission was to provide effective and affordable cure for
ordinary people in far-flung villages. With missionary zeal and
fervor, 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 travelled, 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. The
name is formed by joining the first half of Daktar and Burman.

Some milestones:-

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 Set up in 1884 to produce and dispense ayurvedic medicines to a wide
mass of people who had no access to proper treatment.

 1896 - With popularity of Dabur products increasing, Dr. S.K. Burman


expands his operations by setting up a plant for mass production.

 Early 1900s – Entered the specialized area of nature based Ayurvedic


Medicines(for which there was no standardized drugs were not available)

 1919 – Establishment of research laboratories (The need to develop


scientific processes and quality checks for mass production of ayurvedic
medicines led to the establishment of research laboratories)

 1920- Expanded further by setting up manufacturing units at Narendrapur


and Daburgram and distribution spread to neighboring states like Bihar and
north-east.

 1936 – Dabur became a full-fledged company [Dabur India


(Dr.S.K.Burman) Pvt. Ltd.]

 1972 – Shifted operations to Delhi by setting up a manufacturing plant in


Faridabad.

 1979 – Dabur Research Foundation (launch of full-fledged research


operations in the field of health care and also setting up Sahibabad factory
for commercial production.

 1986 – Public Limited Company (Dabur India ltd. came into being after
reverse merger with Vidogum limited)

 1992 – Entered a strategic partnership with Agrolimen of Spain.( To


manufacture and market confectionery items in India)

 1993 – Entered specialized health care area of cancer treatment with its
oncology formulation plant at H.P

 1994 – Raised its first public issue, due to market confidence in the
company shares issued at a premium were oversubscribed 21 times.

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 1995 – Joint ventures with Osem of Israel for food and Bongrain of France
for cheese and other dairy products.

 1996 – Three separate divisions were created according to their product


mix – Health Care products division, Family products division and Dabur
ayurvedic specialties limited.

 1997 – Dabur entered the nascent processed food market with the creation
of Food division / project stars, strive to achieve record successes.

 1998 – Professionals to manage the company to inculcate a spirit of


corporate governance and for the first time, a non-family member became
the CEO of Dabur.

 2000 – Entered the august league of large corporate businesses along with
market leadership and a turnover of 1000 crore.

 2003 – Dabur demerges pharma business from the FMCG business into a
separate company so as to concentrate on both the business.

 2005 – Acquired Balsara and entered the oral care and household
healthcare market in India.

 2005- Company announced a 1:1 bonus share to its shareholders.

 2006 – Dabur crossed the 2 billion US dollar market capitalization and


adopted US GAAP in line with its commitment to follow global best
practices and allow a transparent work culture.

 2007 – Forayed into organised retail, H&B stores ltd. and also Dabur India
merged with Dabur foods.

 2008—acquiresFEM care pharma

 2009—Dabur red toothpaste joins billion rupee brand club

 2009 – Celebrated 125 years of existence.

Dabur At-a-Glance
Dabur India Limited has marked its presence with significant achievements

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and today commands a market leadership status. Our story of success is
based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results of
our policies and initiatives speak for themselves.
 Leading consumer goods company in India with a turnover of Rs.
2834.11 Crore (FY09)

 3 major strategic business units (SBU) - Consumer Care Division


(CCD), Consumer Health Division (CHD) and International
Business 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 Care
(Bangladesh), Asian Consumer Care (Pakistan), African Consumer
Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield
International (UAE) and Jaquline Inc. (USA).

 17 ultra-modern manufacturing units spread around the globe

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 Products marketed in over 60 countries

 Wide and deep market penetration with 50 C&F agents, more than
5000 distributors and over 2.8 million retail outlets all over India
Consumer Care Division (CCD) adresses consumer needs across the entire
FMCG spectrum through four distinct business portfolios of Personal Care,
Health Care, Home Care & Foods

 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

 Dabur Chyawanprash the largest selling Ayurvedic


medicine with over 65% market share.

 Vatika Shampoo has been the fastest selling


shampoo brand in India for three years in a row

 Hajmola tablets in command with 60% market


share of digestive tablets category. About 2.5 crore
Hajmola tablets are consumed in India every
day

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 Leader in herbal digestives with 90% market share

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Consumer Health Division (CHD) offers a range of classical Ayurvedic
medicines and Ayurvedic OTC products that deliver the age-old benefits of
Ayurveda in modern ready-to-use formats

 Has more than 300 products sold through


prescriptions as well as over the counter

 Major categories in traditional formulations include:


- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils

 Proprietary Ayurvedic medicines developed by


Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol

 Division also works for promotion of Ayurveda


through organized community of traditional
practitioners and developing fresh batches of
students
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, EU and the US with its brands Dabur &
Vatika

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 Growing at a CAGR of 33% in the last 6 years and
contributes to about 20% of total sales

 Leveraging the 'Natural' preference among local


consumers to increase share in personal care
categories

 Focus markets:
- Gulf countries
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

 High level of localization of manufacturing and sales


& marketing.

CORE VALUES AT DABUR:-

"Dedicated to the health and well being of every household"

“This is our company. We accept personal responsibility, and


accountability to meet business needs.”

“We all are leaders in our area of responsibility, with a deep


commitment to deliver results. We are determined to be the best
at doing what matters most.”

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“People are our most important asset. We add value through
result driven training, and we encourage & reward excellence.”

“We have superior understanding of consumer needs and develop


products to fulfill them better.”

“We work together on the principle of mutual trust & transparency


in a boundary-less organisation. We are intellectually honest in
advocating proposals, including recognizing risks.”

“Continuous innovation in products & processes is the basis of our


success.”

“We are committed to the achievement of business success with


integrity. We are honest with consumers, with business partners
and with each other.”

PRODUCT LINE:-
Foods--
· Real, Real Active , Homemade· Lemoneez Capsico

Baby Care--

· Dabur Lal Tail, Dabur Baby Olive Oil, Dabur Janma Ghunti

Health Supplements--

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· Dabur Chyawanprash, Dabur Glucose D

Digestives--

· Hajmola Yumstick, Hajmola Mast Masala, Anardana, Hajmola,


Hajmola Candy,

· Hajmola Candy Fun, Pudin Hara (Liquid and Pearls), Pudin Hara
G, Dabur Hingoli

Natural Cures--

· Shilajit Gold, Sat Isabgol, Shilajit, Ring Ring, Itch Care, Backaid,
Shankha Pushpi ,Dabur Balm,Sarbyna Strong

Personal Care --

Hair Care Oil , Amla Hair Oil, Amla Lite Hair Oil,Vatika Hair Oil,
Anmol Sarson Amla

Hair Care Shampoo--

· Anmol Silky Black Shampoo ,Vatika Henna Conditioning


Shampoo, Vatika AntiDandruff Shampoo , Anmol Natural Shine
Shampoo

Oral Care--

· Dabur Red Gel ,Dabur Red Toothpaste,· Babool Toothpaste,


Dabur Lal Dant Manjan, Dabur Binaca Toothbrush

Skin Care--

· Gulabari Vatika, Fairness Face Pack


And many
more………………………………………………………………………………………
…..

Corporate Governance at dabur:-

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Good corporate governance and transparency in actions of the
management is key to a strong bond of trust with the Company’s
stakeholders. Dabur understands the importance of good governance
and has constantly avoided an arbitrary decision-making process.

Our initiatives towards this end include:

• Professionalisation of the board

• Lean and active Board (reduced from 16 to 10 members)

• Less number of promoters on the Board

• More professionals and independent Directors for better


management

• Governed through Board committees for Audit, Remuneration,


Shareholder Grievances, Compensation and Nominations

• Meets all Corporate Governance Code requirements of SEBI

Corporate Citizenship at dabur:-


When our Founder Dr. S. K. Burman first established Dabur, he had a
vision that saw beyond the profit motive. In his words, "What is that life
worth which cannot bring comfort to others." This ideal of a humane
and equitable society led to initiatives taken to give back some part of
what Dabur has gained from the community.

• Our major initiatives in the Social sector include:

• Establishment of the Sustainable Development Society, or


Sundesh, in 1993 - a non-profit organisation to promote
research and welfare activities in rural areas;

• Promoting health and hygiene amongst the underpriviledged


through the Chunni Lal Medical Trust; and

• Organising the Plant for Life programme for schoolchildren -


to create environmental awareness amongst young minds

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Dabur upholds the tradition:-
Today, we at Dabur also value nature's bounty. Without the fruits of
nature, the vision of Dabur would never have been fulfilled. And that is
the reason for our unfailing commitment to ecological conservation
and regeneration. We would like to follow the principles of our ancient
texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from
which all our products are derived. Due to overexploitation of these
resources and unsustainable practices, these plants and herbs are
fast reaching the point of extinction. In view of this critical situation,
Dabur has initiated some significant programmes for ecological
regeneration and protection of endangered plant species.

Plants for Life


We have set up the "Plants for Life" project in the mountainous
regions of the Himalayas. Under the project, a high-tech greenhouse
facility has been set up for developing saplings of rare and
endangered medicinal plants. Fully computer-controlled and
monitored, this greenhouse maintains the highly critical
environmental parameters required for their survival. We are also
developing quality saplings of more than 20 herbs, 8 of them
endangered, through micro propagation.

In addition, satellite nurseries spread across mountain villages and


contract cultivation of medicinal herbs helps in maintaining the
ecological balance. These measures have also helped provide local
cultivators the scientific knowledge for harvesting herbs and a steady
source of income. So that they are not forced to exploit the
environment to earn a livelihood.

Living a Green Heritage


These are significant steps that can contribute to a better world for
coming generations. To whom we would like to bequeath a world not

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bereft of nature. But full of flowering and fruit bearing trees, animals,
birds and humans living in good health and complete harmony.
Business Strategies and ''Vision 2010'' of Dabur:-
Dabur India Ltd. (Dabur), a leading Indian fast moving consumer
goods (FMCG) company andIts product range included Toothpastes
and Toothpowder, Hair Oils, Shampoos, Digestives, Fruit Juices,
Nature Care, Medicated Oils, Ayurvedic products (such as Churnas,
Asav Arishtas, Ras Rasayanas, and Chyawanprash), and Honey.

The company had adopted a combination of the organic and


inorganic routes in fuelling its growth. Organically, the company
started serving the southern region of the country in 2002, which was
neglected earlier, to increase its sales. Further, it enhanced its
product portfolio in the various product categories. For instance,
Homemade cooking pastes like ginger, garlic, tomato puree, etc.
were added to the food business. On the inorganic growth front, the
company acquired the Balsara group of companies in 2005. This
acquisition gave Dabur new brands in toothpaste (Promise, Babool,
and Meswak), mosquito repellants (Odomos), toilet cleaners (Sani
Fresh), and air freshners (Odonil). The acquired toothpaste business
balanced the oral care products portfolio as Dabur's sales came from
the northern and the eastern parts of the country while Balsara's
were from the southern and the western parts of the country.

Dabur‘s ''Vision 2010'', which it had unveiled way back in 2006,


was to double its turnover by FY 2009-10. The company is
clearly targeting growth at a breakneck pace.

References:---
Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane
Keller
www.dabur.com
www.superbrandsindia.com
www.brandchannel.com
www.4psbusinessandmarketing.com

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www.scribd.com

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