Dabur India Limited A Indian Consumer Goods Company Marketing Essay

Dabur India check A Indian Consumer Goods social club Marketing EssayIntroductionDabur India Limited is a leading Indian consumer goods alliance with interests in bull upkeep, Oral C atomic number 18, soundlyness C be, Skin Care, debauched Care and Foods. From its humble beginnings in the by lanes of Calcutta way back in 1884 as an Ayurvedic medications participation, Dabur India Ltd has come a long way no(prenominal)adays to suit a leading consumer crossroads manufacturer in India.The founder, Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera and Plague were the common diseases. He was a doctor who brought Ayurvedic medicines to the masses of Bengal. Initially established as a proprietary firm for the manufacture of chemicals and ayurvedic drugs it was later on 19th November 1930 incorporated as cloak-and-dagger limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up mathematical product facilities at Garia and Narendrapur, West Bengal and Daburgram, Bihar. Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st July1985 and the amalgamated company was renamed DABUR INDIA LIMITED.For the then(prenominal) 125 courses, they waste been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. by means of their comprehensive range of products, they cater to all consumers, in all get on groups, across all social boundaries. And this legacy has helped them develop a trammel of trust with the customers.VISIONDedicated to the health and well being of any house hold.Dabur is a company with a set of established fear values, which direct its functioning as well as all its operations. The directional forces for Dabur are the words of its founder, Dr.S. K. Burman, what is that life worth that arouse non give comfort to others. The community o ffers its customers, the products to suit their needs and give them good values for m aney. The company is committed to follow the ethical practices in doing affair. At Dabur, nature acts as not only the source of raw materials but in addition an inspiration and the company is committed to product the ecological balance.Journey so far1884 The alliance of Dabur1972 The company shifts base to Delhi from Kolkata1986 Registered as Public Limited confederacy1994 Listed on the Bombay Stock Exchange1998 Professional team inducted to run the company2000 Crosses Rs. kB Crore Turnoer2003 Pharmaceutical product line de-merged to focus on core FMCG2004 internet exceeds Rs. 100 Crore2005 Acquire Balsara strengthening Oral caution provided entry into al-Qaedacare package2006 Dabur figures in Top 10 Great Places to Work2007 Dabur ranked among Asias surmount under a million enterprises by Forbes2008 Acquired Fem Care Pharma accounting entry the mainstream Skin care fraction2009 Str ong g pathth momentum cover up in spite of general economic downturn. Also Dabur Red Toothpaste becomes Daburs 9th Billion Rupee shuffle.2010 Touched US$4 billion grocery cap. oersea acquisition, Hobi sort, Tur fall upon to strengthen presence in MENA and adjacent regions.Dabur At-a-GlanceDabur India Limited has tag its presence with significant achievements and today commands a market lead status. Their stratum of success is based on dedication to nature, corporate and process hygiene, propellent leadership and commitment to their partners and stakeholders.Leading consumer goods company in India with a disorder of Rs. 3417 Crore (FY10)3major strategical crease units (SBU) Consumer Care constituent (CCD), Consumer wellness Division (CHD) and world-wide task Division (IBD)3Subsidiary Group companies Dabur International,Fem Care Pharma and bran- bleakuand8 step down subsidiaries Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), A sian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (the States).17 ultra-modern manufacturing units spread around the globeProducts marketed in everywhere 60 countries widely and deep market penetration with50 CF agents, more than than 5000 distributors and over 2.8 million retail proscribedlets all over IndiaDabur India Ltds manufacturing activities spanning various consumer products categories are carried prohibited in 17 factories spread across India and abroad.Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal).Daburs Business Structure bank note Percentage make out in revenue based on FY10 Financials Femcare include in Consumer Care DivisionConsumer Care Division (CCD)Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, wellness Care, Home CareFoods.Master tell onsDabur Ayurvedic health care productsVatika agiotage hair careHajmola Tasty digestivesRal Fruit juices beveragesFem right bleaches struggle care products9 Billion-Rupee brands Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honeystrategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey marketDabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.VatikaShampoo has been the fastest selling shampoo brand in India for three years in a rowHajmola tablets in command with 60% market share of digestive tablets grade. rough 2.5 crore Hajmola tablets are consumed in India every dayLeader in herbal digestives with 90% market shareCategory-wise Share of CCD deformity OverviewConsumer Care Categories sensory hair CareHair Oil ShampooSource determine share-ACN June, 09 Value S hare-ACN Mar, 10Oral CareValue Share-ACN March, 2010wellness SupplementsValue Share-ACN March, 2010Foods lodge Est. Mar, 2010 for Fruit Juice categorySkin Care*Company estimates Includes Fem skin care portfolioDigestivesValue Share-ACN March, 2010Home CareValue Share-ACN Mar,2010 for Aerosols categoryConsumer Health Division (CHD)Consumer Health Division (CHD) offers a range ofclassical Ayurvedic medicinesand Ayurvedic otc products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats. Daburs Consumer Healthcare business is the Companys oldest business, and today has a acquireing portfolio of OTC products to address a variety of problems ranging from Womens Health to Baby Care andCough Cold to Rejuvenation.Has more(prenominal) than 300 products exchange through prescriptions as well as over the countermajor(ip) categories in traditional formulations include Asav Arishtas Ras Rasayanas Churnas Medicated OilsProprietary Ayurvedic medicines developed by Dabu r include Nature Care Isabgol Madhuvaani TrifgolDivision also works for forwarding of Ayurveda through organised community of traditional practitioners and developing fresh batches of studentsThe Consumer Health Division, CHD witnessed a harvest of 10.2% during the quarter guide by ethical portfolio which grew by 14.5%. In OTC, Pudin Hara grew by 12.8%. The Pudin Hara portfolio has been extended by entraping Pudin Hara Lemon scintillate in the acidity segment.International Business Division (IBD)International Business Division (IBD) caters to the health and personalised care needs of customers across various international markets, spanning the Middle East, North West Africa, European Union and the USwith its brands Dabur VatikaGrowing at a CAGR of 33% in the last 6 years and contributes to about 20% of total gross revenueLeveraging the natural preference among local anaesthetic consumers to attach share in perosnal care categories commission markets GCC Egypt Nigeria Ba ngladesh Nepal USHigh level of localization of manufacturing and sales marketing globe wise division of DaburDaburs International businessThe Companys key markets for international business are the Middle East, Africa, UK and South Asian geographies, with manufacturing plants located across regions. The Company also has a clandestine label business in ground forces and UK, along with Guar gum exports, which takes place from its Indian plants.The Companys International Business Division recorded an stupefying sales harvest-feast of 26.3% from Rs.477.0 crore in 2008-09 to Rs.602.5 crore in 2009-10, contributing to 18% of overall consolidated sales. The operating margins of the business meliorate significantly during the year reflecting the strength of the brands even though the external conditions were uncollectible and the environment was plagued by recessionary trends, currency depreciations and read contraction.Robust sales growth in international markets was possible due t o Strong Brand portfolio positioned on herbal and natural platform Aggressive new product launches and brand extensions Geographical expansion into new markets Strong Sales and distribution network Strong manufacturing backbone and expansion of own manufacturing in key geographies Localised and efficient supply chain.Product PortfolioThe company has built healthful and square-built brand architecture with two mega brands for international business across all geographies Dabur and Vatika and most of its offerings are under either of these two brands.Dabur Amla Dabur Amla franchise achieved a growth of 38% along with all the extensions. Basis Nielsen retail Audit in KSA, Dabur Amla Hair Oil with a market share of 34.2% is the biggest brand in the hair crude oil segment. Dabur Amla Gold has market share of 6.8% while Dabur Amla Jasmine is at 5.1%. The Amla franchise has now been extended to the Hair slam dance Category with the launch of Dabur Amla Hair slam dance. It has becom e the fastest growing brand in the Hair scramble segment notching up sales of more than INR 13 Crore in first gear year of launch.Vatika There has been a robust growth of 36% in the Vatika franchise which includes Vatika Enriched Hair Oil, Coconut Hair Oil, Hair Creams and Hamam Zaith. Vatika brand is now worth Rs.185 Cr built from a negligible base over the last four years in the Arab belt. There was a successful re- launch of Shampoos and Conditioners, launch of one more variant in Hamam Zaith and re-launch of Vatika Coconut Hair Oil. Light hair oil range of Vatika Hair oils registered 51% growth in MENA. Vatika Hair Cream is now an INR 64 Cr brand in MENA. Vatika Hair Cream gained 370 bps in market share and becoming 12.7% of the market in playscript terms. It grew by 44% in volume terms over LY in a category that has remained flat. Vatika Hair Cream is now the no. 2 player in Modern Trade with a 15.6% volume mkt share despite aggressive competition from established brands.Vat ika DermoViva a new sub- brand launched for the Personal slipstream and Skin Care segment had its first launch in the Bar Soap category and has managed to create consumer integrity in a category dominated by strong MNC players.FEM The FEM brand was beef up in the overseas markets through ATL and BTL inputs which saw the brand grow by 100% in just nine months of operation since the takeover.Daburs International MarketThe key contributing markets/ regions to the International Business growth have been GCC, Egypt, Nigeria, Algeria, Morocco, Libya, Yemen, Syria and South Africa.GCC, the biggest market in the IBD and despite being a rise market, has registered a strong growth of 42% over last year fuelled by innovations and new product launches in the Hair Care, Personal Wash and Oral Care segments.Dabur Egypt Limited has witnessed another fantastic performance with 30% growth in sales.African Consumer Care, Nigeria has grown by 17% over last year in terms of local currency , suppo rt by strong growth of Dabur Herbal Toothpaste and Dabur Herbal Gel in the Oral Care category.Asian Consumer Care, Pakistan has grown by 26% in revenue with Hajmola and Dabur Amla becoming the two strong brands for the region.Dabur Internationals UK part has witnessed a 23% growth over preceding year which has been the highest growth rate for this region in the last 8 years.Markets of North Africa, levant and Yemen have witnessed an impressive performance with 49% growth over previous year.Asian Consumer Care, Bangladesh, registered a growth of 47% during the fiscal 2009-10. The growth has been led by increased distribution penetration and focussed brand approach.Dabur Nepal Pvt Limited which makes fruit juices and also caters to local consumer market in Nepal recorded impressive growth of 26% in its sales to the domestic market of Nepal.Dabur late has bought Turkey-based personal care company Hobi Kozmetik Group in a mountain at Rs. $ 69 million. The company, in a move to incre ase its presence across Middle East and North African region, has made the acquisition. Hobi Kozmetik is a market leader in the hair gel category with 35% market share. Companys products sold under Hobby and New Era brands in 35 countries. The transaction is expected to be completed by Q3 of FY11. Dabur, which is the biggest FMCG in India with large market big(p)ization, has huge investment and expansion plans as the company aims to expand its foreign sales.Exports from IndiaThe company also exports guargum and private label spoken care products from India. During the year 2009-10 the company recorded Guargum exports to the tune of Rs.43.3 crore as compared to Rs.48.3 crore in the previous year. The sales were lower due to poor global demand and recessionary environment.Exports to USA recorded impressive growth with sales increase to Rs.38.4 Cr in 2009- 10 versus Rs.27.6 in 2008-09 reflecting a growth of 39% despite the recessionary environment in developed markets. The US sales c omprise Private Label and Ethnic business. Key markets in USA and Europe contributed to the growth. Innovative product developmentsin Oral care private label- such as Pro-age, Sensitive and Herbal toothpastes were launched. Ethnic Sales in USA and Canada also performed well recording 80% growth albeit on a low base. Various new products were success affluenty launched in the market and penetration ofmainstay Dabur products like Hair Oils and Chyawanprash into Canadian mainstream retail gyves such as Walmart was achieved.Competitor AnalysisCategoryDaburs Share principal(prenominal) CompetitorsFruit Juice58% Real and ActiveTropicannaFruit Drinks (coolers)1% CoolersFrooti And MaazaHair oil Coconut base6.4% VatikaHLLShampoo Vatika7.1%HLL and PGHair care (overall)27%HLL, PG and HimalayaChyawanprash64%Himani, Zhandu and HimalayaHoney40%Himani, Hamdard and local PlayersDigestives37%Paras and local playersCompetitionMarket Cap.(Rs. cr.)SalesTurnoverNet Profit union AssetsHUL60,897.6317,725 .332,202.032,583.52Dabur India18,851.772,874.60433.15859.35Godrej Consumer12,917.721,267.88248.12839.87Colgate11,244.571,770.82290.22330.70Godrej Ind7,770.69880.9719.331,570.31Marico7,641.542,030.85235.02948.58PG7,169.93904.46179.76440.02Emami6,891.491,006.86165.40878.42Gillette India5,953.64852.48137.10490.89Jyothy Labs2,440.33579.8780.05399.10Source moneycontrol.comBCG AnalysisInternation business division which promises high growth electric electromotive force in Egypt, Nigeria, Pakistan, Banladesh, Nepal, US needs more investment.Price penetration is a key strategy for Cash Cows like Health supplements, Digestives and Home care.Dabur has adopted a strategy of premium pricing for its Dog category like Baby care.Vision 2010The following are the principal features of the 2010 strategic plan-Doubling of the sales figure from 2006The new plan provide focus on expansion, acquisition and innovation. Although Daburs international business has done well growing by almost 33% from Rs. 602.5 crore in 2009-10, plans are to increase it by leaps and bounds.Growth will be achieved through international business, homecare, healthcare and foods.Southern markets will remain as a focus battlefield to increase its revenue share to 15 per cent.After smoothly travel through its previous plans, this vision seems possible. However, if Dabur could be more aggressive in its approach, it can achieve unprecedented results. To conclude, there are few recommendations which are as follows.RecommendationsEntering folksy marketDabur should target more towards the rural market and tier 2 and tier 3 cities. These markets have traditionally been loyal to Daburs ayurvedic range of personal products.Tapping the rising global demand of herbal and Ayurvedic productsNew trends in the global market for the rising demand of herbal/ ayurvedic products are seen. This is the right time when Dabur should re launch itself as a key international player in the global arena.Targeting premium segmentI n the domestic market, there is a huge scope for Dabur to launch niche/luxury segment products catering to specific target groups. training of new markets for Products ServicesNew areas of growth are opened up for Dabur with the expansion into the new markets of Cambodia, Philippines, Belarus, Gambia and Bolivia. The sales and distribution structure should be strengthened in the key markets of Yemen, Syria, Kuwait, Malaysia and Tanzania. It can be done by appointing new distributors in CIS, Mozambique, Guinea and Rwanda etcEntering US MarketThe Company is also trying to enter into the US Market where it is attempting to build a full fledged distribution channel. It will also be useful to note that some of its products like Chyawanprash are selling in the US via validating channels. But this task is going to be a herculean one since US laws are tough and the preferences of consumers also vary greatly than that of markets which are usually catered to by Dabur.Targeting South Africa In Africa the company should look at countries like South Africa where it currently is not present. It already has a personal care plant in Egypt and a toothpaste plant in Nigeria. Dabur can do well in these markets because the profile and preferences of these consumers are very much like India.Focusing on ExportThe focus should be to continue expanding the companys presence across geographies and to exploit the opportunities that exist in existing and potential segments. The company should continue to invest in brand building, manufacturing and human capital in order to maintain and improve the existing robust growth path.