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Dabur case study Presentation Transcript

  • 1. A Dabur Story
    Corporate strategy and communication concepts
    Alisha Sehgal
    Public Relations and corporate communication
    Roll no. 42
  • 2. We are guided by the philosophy of ‘Doing fewer things, but doing them better”’
    V C Burman, Chairman, Dabur India
  • 3. 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).
  • 4. A walk down the memory lane...
    • Started in 1884 as a health care products manufacturing facility
    • 5. 1900s entered the specialized area of Ayurvedic medicines
    • 6. 1919 established research laboratories
    • 7. 1936 Dabur became Dabur India Pvt Ltd.
    • 8. 1986 it became a public limited company
    • 9. 1992 signed a joined venture with Agrolimen of Spain
    • 10. 2000 turnover of Rs.1,000 crores
    • 11. 2007 Dabur foods merged with Dabur India
    • 12. 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.
    • 13. In 2000, Dabur achieved a turnover of Rs 1000 crores
    • 14. In 2005, Dabur acquired Balsara
    • 15. 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
  • 16. Business Units
  • 17. 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.
  • 18. strategy
    Mr.Sunil Duggal, CEO, Dabur India
    To significantly accelerate profitable growth. To do this
    • Focus on growing our core brands
    • 19. Be a professionally managed employer
    • 20. Provide our consumers with innovative products within easy reach
    • 21. 0
    • 22. Build a platform to enable Dabur to become a global ayurvedic leader
    • 23. Be the preferred company to meet the needs of our target consumers
    • 24. Be responsible citizens with a commitment to environmental protection
    • 25. Provide superior returns, relative to our peer group, to our shareholders
  • Strategic Analysis
    External environment
    Internal environment
    strengths
    opportunities
    weaknesses
    threats
    Strategic choices
  • 26. SWOT analysis of the FMCG Sector
    (Strategic analysis)
    Strengths
    • Low operational costs
    • 27. Presence of established distribution networks
    Weaknesses
    • Lower scope of investing in technology ,especially in small scale
    • 28. Low export levels
    Opportunities
    • Untapped rural market
    • 29. Large domestic market
    • 30. Export potential
    • 31. High consumer goods spending
    • 32. Increase in purchasing power of consumers
    Threats
    • Slowdown in rural demand
    • 33. Removal of import restrictions resulting in replacing of domestic brands
    • 34. Tax and regulatory structure
  • SWOT analysis of Dabur
    Strengths
    • strategic partnerships
    • 35. worldwide coverage
    • 36. 100 years of experience
    • 37. research plants
    Weaknesses
    • no retail outlet
    • 38. no doorstep delivery
    Opportunities
    • Overseas dealerships
    • 39. strategic alliances
    • 40. export of ayurvedic products
    Threats
    • Kerala – hub of ayurveda
    • 41. local companies
    • 42. foreign products.
  • Sensory identity
    Corporate identity
    (Dabur over last 10 years)
    Strategic intent
    Heart, values and belief
  • 43. Sensory identity
    • Subtly transforming the old Dabur Tree.
    • 44. Now projects a contemporary image.
    • 45. Old red Dabur changed to green with ‘celebrate life’ tagline.
    Strategic Intent
    • 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.
  • 46. (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.
  • 47. 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.
  • 48. Corporate restructuring
    (As recommended by McKinsey in 1997)
    • to concentrate on a few businesses
    • 49. to improve the supply chain and procurement processes, and ;
    • 50. to recognize the appraisal and compensation systems
    The need to change…
    • slowdown in FMCG sector
    • 51. tough competition
    • 52. target the new young market segment
    • 53. synergize business operations
  • Growth strategies adopted by Dabur
    • changing demography
    • 54. growth in purchasing power
    • 55. growth in rural and urban demand
    • 56. growth in organized retail sector
    • 57. enter new categories; innovate offerings
    • 58. repositioning as FMCG company
    • 59. moved away from umbrella branding strategy
    • 60. retaining Dabur as corporate brand identity
    • 61. Three step approach
    • 62. POS promotion and better stocking practice
    • 63. customized packaging and commercials
    • 64. customized product launch
  • Sources:
    • www. Daburindia. Com
    • 65. Wikipedia
    • 66. Case studies, FMCG sector (A V Vedpuriswar)
    • 67. Managerial Economics by Geetika, Piyali Ghosh and
    Purba Roy Chaudhary
    • Scribd.com
  • Thank you
    Alisha Sehgal
    PR-42