Académique Documents
Professionnel Documents
Culture Documents
(BATCH: 2018-20)
SUBMITTED BY:
KAJAL SINGH
PGDM
SECTOR INFORMATION
INTRODUCTION
FMCG sector is the 4th largest sector in the Indian economy with household and personal care
accounting 50% FMCG sales in India.
MARKRET SIZE
The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in
2017 , with modern trade expected to grow at 20%-25% per annum , which is likely to boost
revenues of FMCG companies.
Revenues of FMCG sector reached RS 3.4 lakh crore (US$ 52.75 billion) in FY18 and are
estimated to reach US$ 103.7 billion in 2020.
The sector witnessed growth of 16.5% in value terms between July - September 2018.
INVESTMENTS / DEVELOPMENT
The government has allowed 100% Foreign Direct Investment (FDI) in food processing and
single-brand retail and 51% in multi-brand retail.
The sector witnessed healthy FDI inflows of US$ 14.67 Billion during April 2000 to March 2019.
GOVERNMENT INITIATIVES
The Government of India has approved 100% Foreign Direct Investment (FDI) in the cash and
carry segment and in single-brand retail along with 51% FDI in multi-brand retail.
The Government Of India has drafted a new Consumer Protection Bill with special emphasis on
setting up an extensive mechanism to ensure simple , speedy , accessible , affordable and
timely delivery of justice to consumer
ACHIEVEMENTS
Number of mega food parks ready increased from 2 between 2008-14 to 13 between 2014-18.
Preservation and processing capacity increased from 308,000 during 2008-14 to 1.41 million
during 2014-18
The number of food labs increased from 31 during 2008-14 to 42 during 2014-18.
CONTRIBUTION
OTHERS
22% FMCG
27%
REAL ESTATE
3%
CONS .DURABLES
4%
SERVICES AUTO
4% 9%
EDUCATION
5%
BFSI E-COMMERCE
5% 8%
TELECOM RETAIL
6% 7%
FMCG AUTO E-COMMERCE RETAIL TELECOM BFSI
EDUCATION SERVICES CONS .DURABLES REAL ESTATE OTHERS
HISTORICAL GROWTH OBSERVED IN FMCG IN LAST FIVE YEARS
2014
38.8
2015
43.1
2016
49
2017
52.8
2018
68.4
0 10 20 30 40 50 60 70 80
US$ BILLION
HISTORY OF DABUR
In 1884, Dr. S. K Burman launches his mission to make health care products in Calcutta.
In Early 1900s, Production of Ayurvedic medicines Dabur identifies nature-based
Ayurvedic medicines as its area of specialization. It is the first Company to provide
health care through scientifically tested and automated production of formulations
based on our traditional science.
In 1930, Automation and up gradation of Ayurvedic products manufacturing initiated.
In 1936, Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
In 1972, Dabur’s operations shift to Delhi. A new manufacturing plant is setup in
temporary premises in Faridabad on the outskirts of Delhi.
In 1975, The Company was incorporated on 16th September for manufacture of high
grade edible & industrial guargum powder and its sophisticated derivatives. It was
incorporated in the name of Vishal Chemical (India) Ltd.
In 1979, Commercial production starts in the new Sahibabad factory of Dabur, one of
the largest and best equipped production facilities for Ayurvedic medicines.
In 1984, Dabur completes 100 years
In 1992, Beginning a new chapter of strategic partnerships with international
businesses, Dabur enters into a joint venture with M/s. Guldenhorst BV Netherland. This
new venture is to manufacture and market confectionery items in India.
In 1994, New products launched were `Dentacare,' Vatika and Lactonic which were well
received in the market. Also company signed a MOU with Osein Internatinal Ltd. for
manufacture of biscuits, snack, foods & other products in India.
In 1995, Extending its global partnerships, Dabur enters into a Joint Venture (JV) with
Osem of Israel for food and Bongrain of France for Cheese & other dairy products.
In 1996, The company launched Madhuvanni an anti-cough preparation
In 2000. Dabur establishes its market leadership status with a turnover of Rs.
1,000crores.
In 2002, Dabur India Ltd has informed that Mr. Ninu Khanna has resigned as Chief
Executive Officer and Director of the Company and the resignation has been accepted.
The Board of Directors of Dabur India Ltd has appointed Mr. Sunil Duggal as Chief
Executive Officer of the company wef July 01, 2002
In 2006, Moving forward on the inorganic growth path Dabur India decides to raise up
to $200 million from the international market through bonds, FCCBs, GDR, ADR, QIPs or
any other securities.
In 2008, Dabur India - Launch of First Retail Store by Subsidiary Company
In 2009, Dabur launched Odomos Naturals, a range of personal application mosquito
repellents packed with Aloe Vera and Citronella with two options, cream and lotion.
Also Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red
Toothpaste crosses the billion rupee turnover mark within five years of its launch.
In 2012, Dabur India Ltd. surpasses the billion-dollar turnover mark during the 2011-12
fiscal to end the year on a high note with net sales of INR 5283.17 Crores.
In 2015, Brand Real, Vatika and Amla cross the Rs. 1,000-Crore turnover mark.
In 2016. Dabur Gulabari and Dabur Lal Dant Manjan clock a turnover of Rs. 100 Crore
each.
In 2017, Dabur India has tied up with e-commerce major Amazon for an online Ayurveda
marketplace which will house all ayurvedic brands and products available in the country.
MARKET SHARE
6%
14% Oral care
Skin care
5%
23% Foods
Health supplements
Digestives
19%
OTC & Ethicals
9%
Hair care
6% Home care
18%
www.blog.sanasecurities.com%2Fdabur-india
COMPETITOR ANALYSIS
4 RUCHI
NEWS
SWOT ANALYSIS
STRENGTH- WEAKNESS-
Strong distribution network
Strong brand image and product Dabur doesn’t have direct company
development strength of Dabur outlets
It has presence in around 60 Lack of awareness of products by
countries across the world customers
It is the world’s largest ayurvedic Doctors prescribe allopathy medicines
medicine provider as they get more incentives from
Dabur product categories include medical companies and the share of
health care, personal care, foods, ayurvedic companies are less
home care, consumer health – compared to allopathy
OTC/ethical, professional range Fake product sold under the name of
Dabur
OPPORTUNITIES- THREATS-
Favorable environment in India: With Low barriers to entry: There are low or
the government supporting “Make in no barriers to entry in the fruit drinks
India” domestic companies have a lot sector and competition comes in all
to gain in terms of government shapes and forms. Even small to
support. medium-sized businesses set up local
Tapping rural markets and increase production units that make fruit juices.
penetration in urban areas can boost Competition: Some of the major
Dabur competitors of Dabur Real are Minute
Maid, Coca-Cola, Pepsi, Mirinda, Slice,
Maaza, Frooti, and Tropicana.
The allopathy players are of major
threat as they invest heavily on
advertising and distribution of their
products through medical
representatives etc.
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:-
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.
Dabur successfully categorized the consumers on the basis their needs and benefits.
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
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.
STP OF MESWAK-
MARKET SHARE
H
(HEALTH CARE (ORAL & SUPPLEMENTS)) (PERSONAL AND HOME CARE)
I
G
Dabur red toothpaste Odomos
H
Real fruit juice Oxylife facial
MARKET GROWTH
Gulabari FEM beauty care
L
O
(FOOD PRODUCT AND HEALTH CARE) (PERSONAL CARE(BODY))
W
Hajmola Honitus
Dabur chyawanprash Dabur balm strong
Pudin hara Dabur red powder
Dabur glucose
Dabur amla oil
HIGH LOW
S
A
L
E
S
INTRODUCTION GROWTH MATURITY DECLINE
6000
5000
4000
2016
3000
2017
2018
2000
1000
0
SALES PAT PAT MARGIN
BUSINESS FINANCE-
(3247.42-2993.49)Cr.*100 = 8.48%
2993.49Cr.
(1424-941.27)Cr.*100 = 5.44%
941.27Cr.
3. FIXED ASSETS ADDED DURING THIS YEAR
CURRENT ASSET 2019 (IN CR.) CURRENT LIABILITIES 2019 (IN CR.)
INVENTORIES
FINANCIAL ASSETS FINANCIAL LIABILITIES
1. INVESTMENT 725.40 1. BORROWINGS 108.72
STRENGTH WEEKNESS
Made from the rare herb of the famous Toothpaste brands are overshadowed by
‘Toothbrush Tree’ Colgate.
One of the largest premium toothpaste Limited customer base
brand in the country
Contains trusted Ayurvedic products for
protection against tooth decay, plaque
and attack of germs
Does not contain any harsh chemicals
Good distribution and presence in the
rural market
OPPORTUNITIES THREATS
Export potential Lack of brand loyalty of customers
Untapped rural and semi-urban potential Aggressive competitors
Better promotion and expansion Easy availability of substitutes at similar
prices
MARKETING STRATERY
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.
Marketing strategy consists of the analysis, strategy development, and implementation activities
in: “Developing a vision about the market of interest to the organization, selecting market target
strategies, setting objectives, and developing, implementing, and managing the marketing
program positioning strategies designed to meet the value requirements of the customers in each
market target”.
The marketing strategy analysis, planning, implementation and management process is described
below. The strategic situation analysis considers market and competitor analysis, market
segmentation, and continuous learning about markets. Designing marketing strategy examines
customer targeting and positioning strategies, marketing relationship strategies and planning for
new products. Marketing program development consists of product, distribution, price, and
promotion strategies designed and implemented to meet the value requirements of targeted
buyers. Strategy implementation and management consider organizational design and marketing
strategy implementation and control.
Marketing Mix of Dabur analyses the brand/company which covers 4Ps (Product, Price, Place,
PRODUCT-
Dabur has a wide range of product portfolio. The following are the products in the marketing
mix strategy offered by Dabur globally.
Hair Care: Dabur Amla and Vatika Naturals are the brands in this category. This
category includes Products such as Hair oils, Shampoos, Conditioners, Hair Cream, Hair
oil treatment, Shampoo Replacement, Men’s hair tonic, Men’s hair cream and kids oil.
Oral Care: Dabur Herbal and Dabur Meswak are the two brands offered in this category.
The products Include a range of natural toothpastes from the house of Dabur (Classic
range, Gel range, Premium range, New ingredient range)
Skin Care: Dermo Viva USA, Fem and Jacqueline are the brands offered in this
category. The products include face wash, face scrub, face mask, body creams, body
lotions, sun care, soap, body wash and hand wash.
Baby Care: Dermo Viva Baby is the brand offered in this category. The product list
includes Hair Oils Massage Oils, Soaps, Shampoos, Body lotions, Creams, Enriched
powder and baby wipes.
PRICE-
Dabur follows different pricing strategies in its marketing mix for different product offerings.
For its premium products such as Dabur Herbal (Premium range) Sun care, body wash, body
creams are priced at a premium as they are targeted at high end target segment. For its low cost
products, the prices are kept low and competitive pricing strategy is followed. More emphasis is
given on the product quality and its products are priced low to gain more customer base. Its main
aim is to sell more units although through a lesser margin. Since it a competitive industry with
major players, Dabur has to follow a competitive pricing policy for its non-premium products to
sustain itself in the long run.
PLACE-
Dabur is one of the leading FMCG companies in India. The main aim of the FMCG Company is
to make its products available at most number of outlets and also to ensure that there is no stock
out. Shelf space also plays an important role in creating visibility. Being in the industry for many
years, Dabur has built an extensive network of distribution channels. The marketing mix
promotional strategy of Dabur is dependent upon its manufacturing plants, distributors and
retailers. The distribution is not only in India but abroad as well. In India, Dabur has various
plants manufacturing located throughout the country. Most of its plants are located in Himachal
Pradesh, Rajasthan and Madhya Pradesh. From these plants, the products are transported to the
carrying and forwarding agents. From there they are passed down to the stockiest, distributors,
wholesalers and then retailers and Kirana stores from where the final consumers can purchase the
products. Sometimes the products are transported directly to the supermarkets and modern retail
through the distributors. Dabur exports products to:
Dubai
Bangladesh
Egypt
UK
Nigeria
US and Nepal, where they have overseas offices which manage the distribution and sales
PROMOTION-
Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.
Dealer loader: An incentive given to induce a retailer to purchase and display the
products of dabur.
Trade contest: A contest to reward retailers those sells the most product of dabur foods
and after a specific period they are rewarded.
Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales,
like danglers, posters, banners etc. helps in promoting sales.
Push money: Also known as "spiffs". An extra commission paid to retail employees to
push products. This kind of practice Dabur hardly follows.
Free samples: Dabur foods gives free samples are given to retailers so that they can try
that product if the product is new, or gives some discounts.
Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.
Discount Sales: Some special discounts are given to retailers from time to time, like 1%
cash discounts if payment is made in cash.
Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.
Higher Margins: Retailer has the highest margins and dabur foods also have the same
criteria, and retailer can further sell the Dabur product to consumer at discount keeping
his margin safe.
Price deal: A temporary reduction in the price is given to consumer during some festival
session by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
Coupons: Dabur foods gives coupons during different sampling activities to consumers
and it have become a standard mechanism for sales promotions.
Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
Contests/sweepstakes/games: if a customer wins some game or contest at the time of
sampling activities then they are given a discount coupon of products of dabur foods.
Point-of-sale displays: Displays helps the consumer easily recognize their products,
dabur keeps a special check on the displays and merchandising of dabur products.
Sampling Activities: Dabur organizes different sampling actives at different retail
outlets.