A Dabur Story Corporate strategy and communication concepts Alisha Sehgal Public Relations and corporate communication Roll no. 42
We are guided by the philosophy of ‘Doing fewer things, but doing them better”’ V C Burman, Chairman, Dabur India
About Dabur Dabur India Limited is India's leading FMCG company with interests in health care, personal care and foods. Dabur has a history of more than 100 years . The products of Dabur are marketed in more than 50 countries worldwide. The company has 2 major strategic business units (SBU) - Consumer Care Division (CCD) & Consumer Health Division (CHD).
Started in 1884 as a health care products manufacturing facility
1900s entered the specialized area of Ayurvedic medicines
1919 established research laboratories
1936 Dabur became Dabur India Pvt Ltd.
1986 it became a public limited company
1992 signed a joined venture with Agrolimen of Spain
2000 turnover of Rs.1,000 crores
2007 Dabur foods merged with Dabur India
2007 foray into organized retail
ACHIVEMENTS of Dabur
In 1992, Dabur entered into a joint venture with Agrolimen of Spain to
manufacture and market confectionary items in India.
In 1994, Dabur raised its first IPO.
In 2000, Dabur achieved a turnover of Rs 1000 crores
In 2005, Dabur acquired Balsara
Dabur crossed $ 2 billion market cap in 2006
Organization structure Largest Indian Personal and Health care company World leader in Ayurveda (over 250 herbal and ayurvedic products) Professionally managed (awarded for excellence in corporate governance) Strong internal Competencies
Vision “Dedicated to the health and well being of every household.” Mission To maximize shareholders’ value , by offering superior quality nature based products, that contribute in improving consumers’ life in personal care, health care and foods.
strategy Mr.Sunil Duggal, CEO, Dabur India To significantly accelerate profitable growth. To do this
Focus on growing our core brands
Be a professionally managed employer
Provide our consumers with innovative products within easy reach
Build a platform to enable Dabur to become a global ayurvedic leader
Be the preferred company to meet the needs of our target consumers
Be responsible citizens with a commitment to environmental protection
Provide superior returns, relative to our peer group, to our shareholders
SWOT analysis of the FMCG Sector (Strategic analysis) Strengths
Low operational costs
Presence of established distribution networks
Lower scope of investing in technology ,especially in small scale
Low export levels
Untapped rural market
Large domestic market
High consumer goods spending
Increase in purchasing power of consumers
Slowdown in rural demand
Removal of import restrictions resulting in replacing of domestic brands
Tax and regulatory structure
SWOT analysis of Dabur Strengths
100 years of experience
no retail outlet
no doorstep delivery
export of ayurvedic products
Kerala – hub of ayurveda
Sensory identity Corporate identity (Dabur over last 10 years) Strategic intent Heart, values and belief
Subtly transforming the old Dabur Tree.
Now projects a contemporary image.
Old red Dabur changed to green with ‘celebrate life’ tagline.
Expansion, Acquisition and Innovation –
across various markets and product segments.
Dabur had successfully entered the skin care segment with the launch of
Vatika Honey & Saffron soap
With the acquisition of Balsara, Dabur made inroads into the relatively
untapped Home Care segment
Focused on ‘natural’ platform in personal care & healthcare segment
Value and belief There are six core values that Dabur practices: Ownership, passion for winning, people development, consumer focus, team work and innovation.
(Corporate philosophy) Corporate philosophy Convert the healing properties of natural ingredients and the age old knowledge of Ayurveda into contemporary healthcare products. It is committed to expand the reach of this old knowledge and nature through web . It aims to overcome the physical boundaries to take ayurvedic way of life to global frontiers. Objective
To offer its consumers, products to suit their needs and give them
good value for money.
Competitive Advantage To achieve competitive advantage, the company will continue to target excise free zones for manufacturing facilities. The existing two ERP systems will also be replaced by SAP to provide a platform for future IT initiatives. To achieve operational efficiencies, Dabur would explore global low cost sourcing options from countries like China.
Corporate restructuring (As recommended by McKinsey in 1997)
to concentrate on a few businesses
to improve the supply chain and procurement processes, and ;
to recognize the appraisal and compensation systems
The need to change…
slowdown in FMCG sector
target the new young market segment
synergize business operations
Growth strategies adopted by Dabur
growth in purchasing power
growth in rural and urban demand
growth in organized retail sector
enter new categories; innovate offerings
repositioning as FMCG company
moved away from umbrella branding strategy
retaining Dabur as corporate brand identity
Three step approach
POS promotion and better stocking practice
customized packaging and commercials
customized product launch
www. Daburindia. Com
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