Dabur case study


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Dabur case study

  1. 1. A Dabur Story<br />Corporate strategy and communication concepts<br />Alisha Sehgal<br />Public Relations and corporate communication<br />Roll no. 42<br />
  2. 2. We are guided by the philosophy of ‘Doing fewer things, but doing them better”’<br />V C Burman, Chairman, Dabur India<br />
  3. 3. About Dabur<br />Dabur India Limited is India's leading FMCG company with <br />interests in health care, personal care and foods. <br />Dabur has a history of more than 100 years . The products of <br />Dabur are marketed in more than 50 countries worldwide. <br />The company has 2 major strategic business units (SBU)<br /> - Consumer Care Division (CCD) & <br />Consumer Health Division (CHD). <br />
  4. 4. A walk down the memory lane...<br /><ul><li> Started in 1884 as a health care products manufacturing facility
  5. 5. 1900s entered the specialized area of Ayurvedic medicines
  6. 6. 1919 established research laboratories
  7. 7. 1936 Dabur became Dabur India Pvt Ltd.
  8. 8. 1986 it became a public limited company
  9. 9. 1992 signed a joined venture with Agrolimen of Spain
  10. 10. 2000 turnover of Rs.1,000 crores
  11. 11. 2007 Dabur foods merged with Dabur India
  12. 12. 2007 foray into organized retail</li></li></ul><li>ACHIVEMENTS of Dabur<br /><ul><li>In 1992, Dabur entered into a joint venture with Agrolimen of Spain to </li></ul> manufacture and market confectionary items in India.<br /><ul><li> In 1994, Dabur raised its first IPO.
  13. 13. In 2000, Dabur achieved a turnover of Rs 1000 crores
  14. 14. In 2005, Dabur acquired Balsara
  15. 15. Dabur crossed $ 2 billion market cap in 2006</li></li></ul><li>Organization structure<br />Largest Indian Personal and Health care company<br />World leader in Ayurveda (over 250 herbal and ayurvedic products)<br />Professionally managed<br />(awarded for excellence in corporate governance) <br />Strong internal Competencies<br />
  16. 16. Business Units<br />
  17. 17. Vision<br />“Dedicated to the health and well being of every household.”<br />Mission <br />To maximize shareholders’ value , by offering superior quality <br />nature based products, that contribute in improving consumers’ life in <br />personal care, health care and foods.<br />
  18. 18. strategy<br />Mr.Sunil Duggal, CEO, Dabur India<br />To significantly accelerate profitable growth. To do this<br /><ul><li>Focus on growing our core brands
  19. 19. Be a professionally managed employer
  20. 20. Provide our consumers with innovative products within easy reach
  21. 21. 0
  22. 22. Build a platform to enable Dabur to become a global ayurvedic leader
  23. 23. Be the preferred company to meet the needs of our target consumers
  24. 24. Be responsible citizens with a commitment to environmental protection
  25. 25. Provide superior returns, relative to our peer group, to our shareholders</li></li></ul><li>Strategic Analysis<br />External environment<br />Internal environment<br />strengths<br />opportunities<br />weaknesses<br />threats<br />Strategic choices<br />
  26. 26. SWOT analysis of the FMCG Sector<br />(Strategic analysis)<br />Strengths<br /><ul><li>Low operational costs
  27. 27. Presence of established distribution networks</li></ul>Weaknesses<br /><ul><li>Lower scope of investing in technology ,especially in small scale
  28. 28. Low export levels</li></ul>Opportunities<br /><ul><li>Untapped rural market
  29. 29. Large domestic market
  30. 30. Export potential
  31. 31. High consumer goods spending
  32. 32. Increase in purchasing power of consumers</li></ul>Threats<br /><ul><li>Slowdown in rural demand
  33. 33. Removal of import restrictions resulting in replacing of domestic brands
  34. 34. Tax and regulatory structure</li></li></ul><li>SWOT analysis of Dabur<br />Strengths<br /><ul><li> strategic partnerships
  35. 35. worldwide coverage
  36. 36. 100 years of experience
  37. 37. research plants</li></ul>Weaknesses<br /><ul><li> no retail outlet
  38. 38. no doorstep delivery</li></ul>Opportunities<br /><ul><li> Overseas dealerships
  39. 39. strategic alliances
  40. 40. export of ayurvedic products</li></ul>Threats<br /><ul><li> Kerala – hub of ayurveda
  41. 41. local companies
  42. 42. foreign products.</li></li></ul><li>Sensory identity<br />Corporate identity<br />(Dabur over last 10 years)<br />Strategic intent<br />Heart, values and belief<br />
  43. 43. Sensory identity<br /><ul><li> Subtly transforming the old Dabur Tree.
  44. 44. Now projects a contemporary image.
  45. 45. Old red Dabur changed to green with ‘celebrate life’ tagline.</li></ul>Strategic Intent<br /><ul><li> Expansion, Acquisition and Innovation – </li></ul> across various markets and product segments.<br /><ul><li> Dabur had successfully entered the skin care segment with the launch of </li></ul>Vatika Honey & Saffron soap<br /><ul><li>With the acquisition of Balsara, Dabur made inroads into the relatively </li></ul> untapped Home Care segment<br /><ul><li> Focused on ‘natural’ platform in personal care & healthcare segment</li></li></ul><li>Value and belief<br />There are six core values that Dabur practices:<br /> Ownership, passion for winning, people development, consumer focus, team work <br /> and innovation.<br />
  46. 46. (Corporate philosophy) <br />Corporate philosophy<br />Convert the healing properties of natural ingredients and the age old <br />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.<br />Objective<br /><ul><li> To offer its consumers, products to suit their needs and give them </li></ul> good value for money.<br />
  47. 47. Competitive Advantage<br />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.<br />
  48. 48. Corporate restructuring<br />(As recommended by McKinsey in 1997)<br /><ul><li> to concentrate on a few businesses
  49. 49. to improve the supply chain and procurement processes, and ;
  50. 50. to recognize the appraisal and compensation systems</li></ul>The need to change…<br /><ul><li> slowdown in FMCG sector
  51. 51. tough competition
  52. 52. target the new young market segment
  53. 53. synergize business operations</li></li></ul><li>Growth strategies adopted by Dabur<br /><ul><li> changing demography
  54. 54. growth in purchasing power
  55. 55. growth in rural and urban demand
  56. 56. growth in organized retail sector
  57. 57. enter new categories; innovate offerings
  58. 58. repositioning as FMCG company
  59. 59. moved away from umbrella branding strategy
  60. 60. retaining Dabur as corporate brand identity
  61. 61. Three step approach
  62. 62. POS promotion and better stocking practice
  63. 63. customized packaging and commercials
  64. 64. customized product launch</li></li></ul><li>Sources:<br /><ul><li> www. Daburindia. Com
  65. 65. Wikipedia
  66. 66. Case studies, FMCG sector (A V Vedpuriswar)
  67. 67. Managerial Economics by Geetika, Piyali Ghosh and </li></ul> Purba Roy Chaudhary<br /><ul><li></li></li></ul><li>Thank you<br />Alisha Sehgal<br />PR-42<br />