Group Members:

Omkar AvhadBijal VoraAnita SinghAbhishekMD HasnainAshwini HaritwalAnurag Singh

Vision:"Dedicated to the health and well being of every household“

Principles:Ownership : This is our company. We accept personal responsibility,

and accountability to meet business needs.Passion For Winning : 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.People Development : People are our most important asset. We add

value through result driven training, and we encourage & reward excellence.

Consumer Focus: We have superior understanding of consumer needs and develop products to fulfill them better.

Team Work : 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.Innovation: Continuous innovation in products & processes is the basis

of our success.Integrity : We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners

and with each other.

Dabur India is the 4th Largest FMCG Company in India Legacy of over 100 years Strategic Business Units in Health care, Personal care

and Food products Dabur has a turnover of Rs.1899.57 crore with powerful

brands like Dabur Amla, Dabur Chyawanprash, Real, Vatika and Hajmola

Bottom Line Driven Company Product marketed in over 50 countries Leader in Herbal Digestives with 90% market share

PRESENT SCENARIO

Established : 1884 Founder : Dr. S K Burman Basic Motive : Manufacture of Ayurvedic Drugs Achieved : By setting up manufacturing units and

setting up Research and Development Labs Expanded its product line in the mid 1900’s by launching

Dabur Hair Oil and Chyawanprash Added Oral Care Products in the 1970’s Shifted base from Kolkata to New Delhi in 1972 Launched Hajmola tablet in 1978

DABUR -THE BRAND

In 2004, restructured its portfolio and structured itself into three main SBU’s

Has 5 power brands under its portfolio Entered new markets like the Juice segment, branded

packaged soups segment Developed its Oral Care Market Increasing its geographical spread Aims at doubling its revenue and profit by the end of

20011-2012

DABUR -THE BRAND (contd)

PRODUCT OFFERINGS

PERSONAL CARE SEGMENT : Hair Care Oil and Shampoo (VATIKA) Skin Care (FAIRENESS FACE PACK) Oral Care (DABUR RED GEL AND TOOTHPASTE)

FOODS PRODUCT RANGE: Juice ( REAL/ REAL ACTIV) Dabur Honey Hommade (Packaged Soups)

PRODUCT OFFERINGS (contd)

AYURVEDIC HEALTH PRODUCTS: Digestive Segment (HAJMOLA) Dabur Chyawanprash Pudin Hara AYURVEDIC DRUGS PHARMACEUTICALS

WHY RESTRUCTURING?

Image : Ayurvedic Company Association: 35 - plus age group Problems : Diversified into too many product ranges Image Association with a particular age group and hence

losing on the other potential customers Lower Sales and Profits

THE RESTRUCTURING PROCESS

Cut down on all its low Contribution Brand Positioned itself as an Herbal specialist in the FMCG

sector Set Higher Targets Identified Growth Drivers Filling up the gaps in Oral Care as well as Hair Care

market Set itself a new Brand Strategy Entered new potential areas and targeted the youth as

well school children

BRANDING STRATEGY

Changed its branding strategy by moving from the Umbrella Strategy to the Key brand Strategy

Categorized itself into five power brands Dabur (HEALTHCARE) Vatika (HAIR CARE) Anmol (PERSONAL CARE) Real ( JUICES) Hajmola (DIGESTIVE SUPPLEMENTS)

BRANDING STRATEGY

(contd)

PRODUCT LINE EXTENSION In the JUICES range Dabur introduced : Coolers (Low fruit Content) Real ( High fruit pulp Content) Real ACTIV (Health Conscious Youth) Real Juniors (for the children below 6 years of age) Real Schoolpack

WHY THESE STRATEGIES?

Line Extension Strategy was adopted by Dabur because: It could attract different target audience Could renew Interest and liking for the brand by introducing

new variants It could increase its market share Diversify without much risk Moved from its Core strategy and hence could give customers

something better and different

SWOT ANALYSIS

STRENGTHS: Century Old Company Established Brand Ayurvedic/ herbal Product line Leader in Herbal Digestives where the product has 90% of

the market share Innovativeness in Promotions WEAKNESSES: Profitability is uneven across product line The lack of business alliances is a major weakness for

dabur india

SWOT ANALYSIS (contd)

OPPORTUNITIES: Extend Vatika brand to new categories like Skin Care and

body wash segments Launch several OTC brands Southern India Market Exploring new geographical areas- local as well global Oral Care Segment Launching new Products like Hair oils, Herbal and Gel

Toothpastes etc.

SWOT ANALYSIS (Contd)

THREATS: Competition in the FMCG sector from well established

names Other fields of medicine- Allopathic and Homeopathic Markets where Herbal products are not recognised

DABUR’S GROWTH STRATEGY – EXPANSION, INNOVATION & ACQUISITION.

• Dabur India outlined a three-pronged strategy involving an aggressive expansion in domestic and foreign market, new product launches and acquisitions, which is expected to double sales and profits by 2012.

• The company, which is looking at double-digit growth across all product segments over the next four years, expects its sales to be around Rs 4,000 crore and profits around Rs 400 crore by the end of 2012.

• This strategy has paid rich dividends for Dabur and has delivered sales growth ahead of the consumer non-durable sector average, over the past 1 year already.

• Dabur laid down a business strategy called ASTRA to boost rural sales and to achieve a steady growth in retail.

• Taking help of ACCENTURE to improve the supply chain and distribution network and with the demerger of Dabur’s FMCG and pharma business.

• Dabur also aims at achieving doubled sales by the end of 2012 through aggressive ACQUSITIONS.

• The growth strategy for international markets would revolve around EXPANSION.

• Dabur India has also chalked out its plans to enter the health and beauty RETAIL market in the country.

• Dabur is targeting sales growth of above 15 per cent after implementing Astra, and expects nearly 40 per cent growth in sales.

• It runs refresher-training courses every six months. About 75 per cent of the company's sales come form rural areas, hence, it has created the Astra training consultancy module in five vernacular languages - Bengali, Tamil, Telugu, Malayalam and Kannada.

• Under Astra, Dabur has categorized its sales and distribution channels into finer segments, such as key grocers, mass grocers, chemist, wholesale, small outlet and modern trade.

• Accenture suggested separation of Dabur`s pharmaceutical and FMCG business to provide greater focus and growth to each business under separate business heads.

• Accenture and Dabur team optimized the company’s internal logistics and distribution processes for mega retail customers.

• How Accenture helped DABUR?-Implementing a new sales and distribution strategy-Developing a new supply chain management capability-Optimizing Dabur’s ERP capabilities.-Leveraging IT for business initiatives.-Outsourcing IT operation

• The company acquired the Balsara group of companies in 2005. This acquisition gave Dabur new brands in toothpaste, mosquito repellants, toilet cleaners, and air freshners.

• In line with its strategy of growing aggressively in foreign markets, it acquired a Nigerian firm - African Consumer Care in late 2007.

• Dabur has successfully acquired 72.15% of Fem Care Pharma Ltd.

• The acquisition offers Dabur a strong platform to enter newer product categories and markets. The acquisition of these firms will serve as fuel for the company’s growth and enhance the shareholder value.

• International business will be spearheaded by two business heads – one based in Dubai and the other in India.

• 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.

• The company had initiated talks with local FMCG players in the neighboring countries and finalized a deal to start manufacturing hair oils and shampoos initially by the end of 2005.

• In order to drive its retail subsidiary H&B Stores Ltd, Dabur has appointed Peter Gerard Baker as the Chief Executive Officer.

• As part of the growth initiative of this brand, the company plans to set up 350 retail stores across India in 5 years and expand it to over 1,000 stores by its 10th year of operation.

• The ‘newu’ brand image presents a new dimension to lifestyle branded retail in India, designed by Pikefell, UK-based brand agency.

• Accenture is the technology partner for ‘newu’ retail operations.

As they are focusing on rural selling, Dabur should give more stress on making more competitive logistics and inventory management system so that reach in every nook and corner of the country in the given span of time is possible.

• Dabur should come up with advertising strategy like radio adds or television adds which are directly targeting the rural people so that they could get high results.

• The retail stores currently opened by Dabur is only one, in northern region i.e. in Delhi, and they have proposed 7,300 retail outlets. Atleast they should open one in south region so as to have reality check of their distribution. Also giving clear view of their strategy for retail.

• Rural plan i.e. ASTRA is only operated in south region of India which should be implemented in northern area as well since it is the main hub of Dabur.