NAME- RICHARD ANJAN GOMES ROLL NO- 4

DISTRIBUTION AND LOGISTICS MANAGEMENT PROJECT

Dabur India LimitedCompany Profile

Dabur derived from Daktar Burman is India's largest Ayurvedic medicine manufacturer. Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis.The story of Dabur goes back to 1884, to a young doctor armed with a degree in medicine and a burning desire to serve mankind. This young man, Dr. S.K. Burman, laid the foundations of what is today known as Dabur India Limited. The brand name Dabur is derived from the words 'Da' for ‘Daktar’ or ‘Doctor’ and 'bur' from Burman. From those humble beginnings, the company has grown into India's leading manufacturer of consumer healthcare, personal care and food products. Over 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 anyone slightest of harm. The trust levels that this brand enjoys are phenomenally high.

Distribution Model

Dabur’s distribution network is recognised as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience.

A Diagram explaining the channels of Distribution is given below

The above diagram it shows channel of distribution of dabur foods, here first the products are manufactured and from Manufacturing plants the packed goods are 

supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the goods to them, this work is generally done by stockiest salesman through ready stock or by taking orders first and then placing the order. From here the goods finally reaches to Customers. Customer purchases the product from retailers.

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A Stockist B Stockist C

Retailers Retailers Retailers Retailers Retailers Retailers

C O N S U M E R S

SWOT ANALYSIS OF DABUR INDIA LTD.

STRENGTHS

Strong presence in well defined

niches( like value added Hair Oil and

Ayurveda specialties)

Core knowledge of Ayurveda as

competitive advantage

Strong Brand Image

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D – a key strength

WEAKNESS

Seasonal Demand( like chyawanprash

in winter and Vatika not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

Limited differentiation (Vatika)

Unbranded players account for the 2/3rd

of the total market(Vatika)

OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the middle

class

Creating additional consumption

pattern

THREATS

Existing Competition( like Himani,

baidyanath and Zandu for Dabur

Chyawanprash and Marico,Keo Karpin,

HLL and Bajaj for Vatika Hair Oil)

New Entrants

Threat from substitutes (like

Bryllcream for Vatika hair oil)

Cipla : Caring for life

Cipla–A Global Leader in Generics •Leading pharmaceutical company in India in terms of retail sales and one of the largest exporters of pharmaceutical products from India. •Legacy of innovation and an entrepreneurial spirit ingrained by the founder, Dr. K.A Hamied, and propounded by the present Chairman and Managing Director, Dr. Y.K. Hamied. •Wide range of products across all major therapeutic categories and in most dosage forms. •Business model based on international strategic alliances and focus on pursuing organic growth while reducing capital commitment and regulatory/litigation risks. •Result driven R&D ensuring efficient utilization of resources and generating substantial technical know-how fee income. Company turnover is $1billion

Distribution Model

Cipla has a business model based on STRATEGIC PARTNERSHIP. API and formulations exported to approximately 175 countries through strategic alliances, including partnerships and agency arrangements. Export sales contributed 51.5% and 49.5% to FY09 and Q1 FY10 revenues, respectively. Total of approximately 7,000 product registrations in place across various export markets.

International partnerships with governments and social service organizations to supply products and/or technology, which helps strengthen relationships abroad.

Partnership model helps in: -Leveraging in-depth local expertise of partners. -Limiting the need to set up own facilities or sales and distribution networks. -Lowering fixed costs and capital commitment -Reducing potential risks from litigation, regulatory or employee related matters

Strategic partnership model structured as per: -Developed markets which are highly regulated and exposed to litigation risks. -Emerging markets which offer higher growth opportunities, due to lower entry barriers, limited competition and higher profitability.

SWOT ANALYSIS OF CIPLA STRENGTHS - Ranks #2 in the retail prescription market in India; - 18 brands that feature among the top-300 brands; - Large basket of 1,500 formulations; and - Partnered 8 leading generics companies in the US for nearly 125 projects.

WEAKNESSES - Impact of IPR regime.

OPPORTUNITIES - Biotherapeutics – A new and promising area; - Agreement with Avesthagen; and - Venturing towards areas of cardiology and anti-cancer.

THREATS

- Partnership related; and - Potential de-rating.

ACC Limited

Company Profile

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, more than 30 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 9,600 persons and a countrywide distribution network of over 9,000 dealers

Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry.

Distribution Model

The cost of transportation and distribution constitutes a large chunk of the price the customer pays for cement - it can be as much as 30% at many locations in the country. For a low value basic product like cement, minimizing of transportation and distribution is in national interest to make the economy more cost competitive. Today nearly 60% of cement of production units to supply points is transported by road and rest by rail. For long distance movement of cement, rail is still the preferred option due to its lower cost. Nearly all the cement from supply points to customer is transported by road. The cost competitiveness of both rail and road transport has important bearing on the price of cement. restrictions Railways have been steadily losing cement on the customer. The recent traffic due to the inflexibility of freight and the operational; imposed improvements of operational efficiencies of railways is 

indeed laudable but if this is achieved by passing on the entire burden to its customers, We fear that the cost competitiveness of railways will worsened in a long run - at least for a large volume low price product like cement. Railways must examine all secondary incurred by cement producer in transportation of cement from rail heads if the cost competitiveness of rail movement is to be improved. Railway should also considerallowing cement producer to operate point-to-point rakes, with multiple unloading points. Road transportation during the last years was adversely effected due to sharp and repeated increase in the price of diesel.

Taking advantages of the effective caring capacity of trucks, road transporter were offering competitive freight rate by carrying mare than stipulated loads. However the enforcement of carrying load restriction in the recent past in many states has seriously disrupted road transport system in the country. Freight has shot up with the demand for a higher number of vehicles for the same impact on the cement industry will ever more severe. Also pollution and traffic will increase if the same volume is transported by large number of vehicle.

It is apparent that motor Vehicles produced in the country have the capacity to carry large loans per axle than is currently stipulated, with out compromising safety. It will in the national interest to consider upward revision of the present stipulated permissible loads per axle is that the existing stock of vehicles is more productively used. This will also meet the needs of the cement industry which one of the largest used of road transport. Indian railway has revised upward the effective capacity of their wagons; a similar move is called for in respect of road transport to tie over the looming crisis.

ACC is the biggest consumer of Indian Railways, and a considerable user of the country’s road transport network services for inward and outward movement of materials and products.

SWOT ANALYSIS OF ACC CEMENT

STRENGTHS.

· It is having a good image and brand loyalty among consumers.· Service is good· “Dhalai karne ke liye” people ask for ACC· Perceived to be of very superior quality cement when compared to others· Selling form the very first day the shop came in to being & sells easily· They have same price prevailing for wholesale at dealers/stockiest  retailers end.

WEAKNESS.

· The competitors are doing much promotional activity rather than ACC Limited that’s why it facing more problems in selling of product in the market.· Lack of awareness program for consumers. 

OPPORTUNITY.

· Rapid growth is taking place in Bihar and Madhya Pradesh.People are opting for more stable structures and intensive use of cement is taking place, even government is spending heavily on infrastructure projects. Thus, this is     the right time to fully tap these markets.· As Indian core industry is also growing at rate of nearly 10% per annum,it is having     a good future.· Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement.· Roads are undergoing through the transformation process through which the traditional method of road building will be replaced by modern concrete roads.

THREATS:

Large number of players in cement industry makes it more competitive for ACC to carefully price its product and at the same time satisfy its dealers and customers.

· Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up considerable market share.

· Due to India’s exponential growth many new international cement companies are expected in coming years which will bring a tide of change and can start price war.

· The emergence of small players in this market may increase the    competition and start the malpractices, and heavy discounts to retailers. They can also influence many retailers by giving better profit margin,     and other Benefits.