Detail report on Dabur

1. SALES AND DISTRIBUTION
Company Report
Group 1
Arnab Acharjee 20DM044
Avinash Kukkala 20DM051
Bodaballa Simhachal Kumar 20DM062
Bodisattwa Das 20DM063
Chetan Sharma 20DM065
Deepak Koolwal 20DM068
Submitted to
Prof. R.J. Masalamani

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ACKNOWLEDGEMENT
We would like to express our gratitude and thanks to all the
people who helped us in completing the project. To begin with,
we would like to extend our sincere thanks to Prof. R. J.
Masilamani, for giving us this great opportunity to learn the
nuances of Sales and Distribution through this project.
This project report has helped us achieve the intended learning
outcomes for this subject and made our concepts clearer as we
used our theoretical knowledge to analyse a real company. This
would not have been possible without the guidance of Prof. R. J.
Masilamani.

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Contents
INTRODUCTION.......................................................................................................................................3
CHANNELS OF DISTRIBUTION .................................................................................................................3
Marketing mix of Dabur..........................................................................................................................4
Product................................................................................................................................................4
Price ....................................................................................................................................................5
Place....................................................................................................................................................6
Promotions..........................................................................................................................................6
BCG Matrix of Dabur...............................................................................................................................7
Distribution strategy...........................................................................................................................8
Pricing Strategy of Dabur........................................................................................................................9
Business Model of Dabur......................................................................................................................10
Dabur Advertisements Strategy............................................................................................................10
Digital Marketing ..............................................................................................................................11
COMPETITOR ANALYSIS OF DABUR ......................................................................................................11
Sales Figures of Dabur...........................................................................................................................12
PORTER’S FIVE FORCES .........................................................................................................................12
KEY COMPETITORS OF DABUR..............................................................................................................13
Conclusion...........................................................................................................................................15

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INTRODUCTION
Over its 120 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 one harm. The trust levels that this brand enjoys
are phenomenally high. It stands for India’s fourth largest fast moving consumer goods
company that both consumers and trade respect and trust unequivocally, and which has an
annual turnover of over Rs 15 billion.
The company has kept an eye on new generations of customers with a range of products
that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal
customers. Dabur is an investor friendly brand as its financial performance shows. There is
an abundance of information for its investors and prospective information including a daily
update on the share price. There’s a great sense of responsibility for investors’ funds on
view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it
adds to the sense of trust for the brand overall.
CHANNELS OF DISTRIBUTION
Despite the economic headwinds and liquidity crunch in the marketplace, Dabur has been
aggressively investing ahead of the curve to ramp up its distribution infrastructure, covering
both urban and rural India. The year saw Dabur move ahead full steam on its plans to
expand its rural footprint by enhancing its village network and creating special products to
ride this network expansion. On the other hand, significant investments were made to drive
up its direct reach in retail outlets, besides enhancing coverage of Chemist outlets. This
distribution enhancement exercise helped Dabur during the COVID-imposed lockdown. As
part of this strategy, Dabur had increased their village network to cover 52,298 villages, up
from 44,068 villages in March 2019. This helped us drive our rural business strongly and
mitigate the impact of the economic slowdown through most part of the year. This expansion
also held good during the COVID-imposed lockdown as demand continued to pour in from
rural India, making up for some of the losses from urban markets, where the lockdown was
more severe. The company increased their direct reach to 1.2 million outlets by the end of
the 2019-20 financial year, adding 113,989 new outlets during the year.
In the urban markets, Dabur has been working towards driving growth with a special focus
on emerging channels like e-commerce, Modern Trade and Cash & Carry, as these
channels have shown signs of resilience during the slowdown. Modern Trade and e-
commerce had been growing at a faster pace with urban and millennial consumers
gravitating towards more premium offerings. To cater to this demand, we created special
products for the e-commerce marketplace, which are more premium in nature. The first of
the new e-commerce specific range was our Dabur Amla Kids Hair Care range. We have
also been investing in higher consumer activations and promotion in Modern Trade outlets to
drive demand. The lockdown imposed post Covid brought the entire Sales system to a
grinding halt in the initial days with movement restricted and consumers shying away from
stepping outside their homes. The traditional Kirana stores became the preferred go-to point
for consumers for their daily grocery needs during the lockdown. As they remained open
during the lockdown period, these neighborhood Kirana stores gained prominence in the
minds of consumers and emerged as the preferred contact point for consumers to fulfil their
needs for daily essentials.

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The objective of appointment of Carrying and Forwarding Agents ('C&FA') is to achieve
improved service levels in despatches made, order processing, FMFO issuance of stocks,
transportation, efficient and proper maintenance of stocks and sales return recording
procedures. The outsourcing of the C&FA function ensures smooth and efficient movement
of products from the Company to its dealers, stockists etc.
There is a wide market penetration on the part of Dabur through 47 C&F agents, more than
5000 distributors and over 1.5 million retail outlets all over India. The company under
restructuring exercise has started focussing on distribution network. The company has
shifted to zonal setup for its sales and marketing. The company is planning to shift to C&F
agents system and has appointed more than 50 such agents in the market. It has also
connected its C&F agents and its key distributors online for better management of its stock.
The company has also implemented ERP system to cover all its activities. The company
also started its interactive website during the year. It has plans of going for B2B and B2C
transactions.
Marketing mix of Dabur
Product
Dabur is committed in offering its customers products that are of excellent quality and are
herbal. Their mission is in providing goods that prove healthy for its customers, as health is
wealth. Nature provides inspiration to all its products. Dabur deals in many categories of

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merchandises like oral care, hair care, skin care, food products, and health-care and home-
care products.
In1940 Dabur launched Dabur Amla Hair Oil and even today, it is one of the leading
products of the company. In 1949, it gave the world Dabur Chyawanprash. From children to
the old-age group it is the favorite of every generation. In 1970, Dabur added Oral products
like Dabur Lal Dant Manjan to its portfolio. Hajmola tablets and Hajmola candy were
introduced in the market in the year 1978 and 1989 respectively.
In1994 Dabur became the world’s second company to enter the market for anti-cancer
medicines. Its research and foundation team helped in developing a drug thatis extracted
from the Asian Yew tree leaves. This eco-friendly process is unique and one of its kind. Its
health products include Dabur’s Honitus Cough Syrup, Dabur Active Blood Purifier for
women, Dabur Shankha Pushpi to enhance the memory, Dabur Balm Strong for headache
and Shilajit Gold for rejuvenation.
In 1996, it stepped in the food market for the first time with the launch of Real Fruit Juice and
later introduced cooking paste, homemade pappad, coconut milk and tomato puree. Its skin
products, under the name ‘Gulabari’, include Rose water, Moisturizing cream, Face
freshener, Moisturizing lotion and under the name, ‘Fem’, include Pink bleach, Gold bleach,
Blue bleach, Herbal bleach, Liquid hand wash and Hair removing cream.
Price
Dabur has hired a special team of trained professionals who scrutinizes the changing
perception of the market. They make a systematic and regular evaluation of their own
products as well as their competitors’ products. After analyzing each aspect carefully, they
determine their pricing strategy. As Dabur is a nature, based company and they deal with
Herbal products, so compromise is not allowed with the product. The prices are kept with a
minimum profit in mind. It is the aim of the company that more and more people buy these
natural products, as they are beneficial for the health of every individual.
Pricing strategy also involves the customer’s reaction. Whenever a product receives an
adverse price reaction the company brings out any of its discount or special schemes to
counter attack it. Some times the price hike is minimal, but the size of the pack is reduced so
that both the consumer and the producer balance it. At other times, a price hike becomes
compulsory and it is then the loyalty of the customer is tested. As the quality maintained by
the company is at much higher level than others are, it is able to retain its customer base. A

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person can buy Dabur products easily from the many areas in the market. Dabur has
maintained the quality of its products and its prices are very reasonable compared to other
brands
Place
Dabur has nearly 2.8 million showrooms and retail outlets. It has covered its base
successfully in both the markets, rural and urban. It has captured the imagination of
worldwide markets, all over the globe, in more than 60 countries. Talks are going on with
other countries also, to include Dabur products in their market. Dabur authorities uses its
sales force as well as distribution channel to market its products. It has a firm grip on its
market intermediaries like wholesalers and then retailers and lastly dealers. It is through all
these channels that a Dabur product passes and at last reaches the consumer. Their strong
network for distribution and supply is extensive and incomparable. The products are sent
from one place to another with ease.
It has many laboratories where thorough research and development work is in progress.
This ongoing work has helped them in utilizing the modern facilities without compromising on
their basic principles of ethic and values. Dabur has many manufacturing plants in India. The
plant 1 at Sahibabad deals with Hajmola, Dabur Amla Hair oil, Oncology medicines, Hingoli
and Ashokarisht. The Unit 1 in Baddi deals with Ayurvedic medicines, The Unit 2 in Baddi
deals with Chyawanprash, The Unit in Narendrapur deals with Honey.
Dabur has opened its first manufacturing unit overseas in Birgunj Nepal. This unit is
equipped to manufacture Oral care products, Ayurvedic medicines, Hair Care products and
Fruit Juices. A manufacturing unit is established in Egypt and this unit deals with Food
products, Skin care products and Hair care products.
Promotions
Trust and Dabur go hand in hand. Their innovative vision has led to phenomenal progress
and conquering milestone after milestone. The confidence that the people show in Dabur
products helps them to buy those products. It has joined hands with international companies
to boost up its sales.
In India, Dabur has launched a full-fledged advertising campaign. This will help in making the
customers aware of all the Dabur products, their prices, their main features and the places
where the buyers can buy them easily. Every little detail of a Dabur product is available
online. Online shopping is being encouraged, as the younger generation is techno-savvy.
Even the children and older generation have become interested in buying products online to
save time.

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In Televisions, famous actors and sportsperson are advertising the products. Amitabh
Bachchan is seenregularly in Dabur ads like Dabur Chyawanprash and Dabur Hajmola.
Sonakshi Sinha and Samantha Prabhuare are seen in Dabur Vatika Hair Oil. Salman Khan
has been a regular promoter of Ranbaxy’s Revital 30+. The promotions by celebrities help in
the continuous and high sales of the products.
BCG Matrix of Dabur
The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with
long-term strategic planning, to help a business consider growth opportunities by reviewing

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its portfolio of products to decide where to invest, to discontinue or develop products. It's
also known as the Growth/Share Matrix.
The Matrix is divided into 4 quadrants based on an analysis of market growth and relative
market share, as shown in the diagram below.
Dogs: These are products with low growth or market share. Honitos, Dabur Balm strong,
Dabur Lal Powder are Dogs.
Question marks : Products in high growth markets with low market share. Home
care,personal care products are question marks due to the presence of large giants in the
market.
Stars: Products in high growth markets with high market share. Real fruit juice, Gulabari Jal,
Health supplements, Hair oil & foods business are stars with high market share but equally
high competition.
Cash cows: Products in low growth markets with high market share. Hajmola,
chawanprakash, Glucose-D & Pudin hara are Cash Cows.
Distribution strategy
Dabur is making the products available in the grocery/ pops & mums, departmental stores
etc. through 3 tier distribution system i.e. from C&F( Carried & forwarding agent) -to stockist-
to wholesalers –to Retail outlets –to final consumers. In case of supermarket stores the
products is made available to Institutions through C& F. Dabur currently has a wide and
deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5
million retail outlets all over India.

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Pricing Strategy of Dabur
PRICE
Price is normally expressed in monetary terms. It is worth of a product or service in monetary
terms. Price is the value which a buyer passes on to the seller in lieu of the product or
service provided. Price is a crucial determinant of the fact whether the exchange between
the buyer and seller should materialize or not. While pricing the products three main factors
should be kept in mind -:
 Cost
 Competition
 Consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend and
marketing. The entire product portfolio is also tweaked to include premium offerings such as
more variants under almost every category, like Dabur Vatika Hair Oil is available in 3
different versions.
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented
company. Across the whole organization the company have one definition of winning, and
that means not just growing, but growing completely. Over the last two years, Dabur has
maintained its operating margins through judicious price hikes across products and reduction
in pack sizes.
I.COST
One of the most important factor to take care while pricing is the cost costs set the floor for
pricing decisions. There are two types of cost variable cost and fixed cost. It is important that
the price should recover all costs including a fair return for undertaking the marketing effort
and risk.
II.COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors
selling the same or similar products, the pricing freedom is considerably reduced. Its price
must fall in line with the competitors. Similarly Dabur India Limited also has many
competitors. But Dabur’s top selected competitors are:-
 Hindustan Unilever Limited
 Proctor and Gamble
 Pepsi co.
 Colgate Palmolive
 Godrej Industries

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 Marico Ltd. etc.
III.CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the Indianised
natural and herbal products thus they made it their USP. Dabur is efficiently leading the
market with this product range, providing the customers with special products easily.
Business Model of Dabur
Dabur follows a very unique business model called Umbrella Branding Strategy. It means
that all products are under one brand name. The logo of Dabur is an old banyan tree that
conveys Dabur’s heritage, dedication, and stability.
Dabur uses a 3 tier distribution system, i.e., from stockist – to wholesaler – to retailers – to
final consumers. With this system, the products are made available in departmental stores,
grocery shops, etc, across the country.
The price of the different products of Dabur is reasonable to the people of every class. As
one of the company’s key dreams is ‘back to nature’, all Dabur products are made with
natural ingredients. Dabur’s brand-loyal consumer base claims that all of the company’s
products are essentially organic.
FMCG and pharmaceutical businesses were separated in 2003 to ensure a better
clarification of products. This led to the discontinuation of the umbrella strategy that existed
before.
Sales Promotion is one of the main tools of the company’s successful marketing strategy.
There are different sales marketing instruments that have been introduced by the
organization for various goods so far. Coupons, gift sets, refunds on money, and festive
sales are some of them. To improve the consumer base, merchandising, rewards, and
exchange deals are also offered to clients.
Dabur Advertisements Strategy
Dabur already holds on to print and television advertising and recently is planning to take
over digital media as a medium for advertising its products.

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As we have seen, the cancer patients were paid homage in the advertising of Dabur Vatika,
as a salutation notice for battling with the disease. The commercial will reach the consumer’s
emotional side; mostly the ladies who use the Dabur Vatika.
And in the case of Dabur amla hair oil, Dabur featured Priyanka Chopra for the promotion of
the product and she is seen getting a hair massage from her mother, which shows how
Dabur amla hair oil improves mother-daughter relation while getting hair massage.
Digital Marketing
Dabur is known for its use of traditional promotional mediums but they are shifting their
marketing strategy to a digital-first approach. Dabur has been increasing its digital spend
over the last few years. From the year 2017, they have increased their digital marketing
spending by 33% in 2018. They spent a total of RS1.99 billion in the year 2018-19. Dabur
pushes it’s products through multiple e-commerce stores and targets fitness-conscious
millennials as a part of its digital strategy.
COMPETITOR ANALYSIS OF DABUR
Dabur does not afford to have one single strategy to compete against its competitors
effectively. It operates in the highly competitive FMCG industry consisting of large MNCs,
such as HUL, P&G, PATANJALI, ITC, etc. It cannot afford to go for purely offensive
strategies that directly affect the bottom line. Moreover, the basic nature of the marketplace
is dynamic.
The deciding criteria for any policy adoption are that it should be based on the company’s
strength, clear sustainable competitive advantage, and consumers’ needs and requirements.
Dabur has a very strong and wide supply chain network that covers both rural and urban
areas through 600+ distributors&2.8 million retailers. This network has helped Dabur reach
every corner of India, which gives it a competitive edge over well-established players like
HUL, P&G, ITC, etc.

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The FMCG & pharma industry is already overcrowded with local & national players. Dabur
has many brands that don’t have a stronghold in the market like Home care & personal care
products while it is the market leader in some of the product categories Chyawanprash,
Health supplements, Glucose-D & Real Fruit juice.
All the sections of society are targeted by Dabur, like other companies, but middle-class
customers form the major group because of more purchasing power.
Sales Figures of Dabur
For Dabur, the FPD is the largest SBU contributing 45 per cent (Rs 526.61 crore) sales of
Dabur products related to hair care, skin care and oral care. It consisits of 3 leading brands -
Vatika, Amla Hair Oil and Lal Dant Manjan with Rs 100 crore turnover each.
The HPD ranks second and accounts for 28 per cent (Rs 327.6 crore) in sales. Dabur
Chyawanprash is the flagship brand of this division, with a 65 per cent (Rs 127 crore) market
share. The Digestives category under HPD is a high-growth segment with 90 per cent share
in the herbal digestives market. Dabur Lal Tail is also a market leader in the baby massage
oil segment with 35 per cent of total share.
Daburs ASL deals with classical Ayurvedic medicine and has more than 250 products sold
through prescriptions as well as over the counter. This range constitutes 7 per cent (Rs
86.25 crore) in Daburs total revenue. Some of the proprietary Ayurvedic medicines
developed by Dabur include Nature Care Isabgol; Madhuvaani and Trifgol.
Daburs foods portfoliowhich includes products from Dabur Foods and the FPDfalls under the
purview of Dabur Foods, set up in 1996 as a 100 per cent subsidiary. Apart from brands like
Real Juices and Hommade cooking pastes, Dabur Honey of the FPD is the largest branded
honey with over 40 per cent of the market share.
PORTER’S FIVE FORCES
COMPETITIVE RIVALRY
• Lots of competitors are present like Emami and Zandu.
• Cosmetic Products and healthcare products are facing high competition.

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THREATS FROM NEW ENTRANTS
• Dabur has been a market leader since last 100 years so there is really less threats
from new entrants
• Patanjali proved to be an exception as they have dominated the market after its entry
in ayurvedic products.
SUBSTITUTION THREATS
• Dabur hardly faces any substitution threats as there are very less companies that can
provide premium quality product like Dabur.
• Dabur also spends a big amount on R&D to update its product Line to curb such
threats.
POWER OF BUYER
• Power of buyer is Increased because a lot of options available in the market.
• The consumer is getting more specific and more demanding which can create
problem for Dabur.
POWER OF SUPPLIERS
• Dabur has Strong channel of distribution
• High bargaining power of suppliers may become a threat for Dabur because Dabur
has retail network but does not own its Retail Outlets.
KEY COMPETITORS OF DABUR
ITC: ITC engages in fast moving consumer goods, hotels, paperboards and specialty
papers, packaging, agriculture, and information technology businesses worldwide. The
Company primarily provides cigarettes and cigars, food products, personal care products,
stationery goods and lifestyle retailing products. Moreover, it offers stationery products,
safety matches, and retails formal, casual, sports, party, evening, and designer wear

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products and accessories through Wills Lifestyle and John Players stores. In addition, ITC
operates approximately 100 hotels under the ITC Hotel, WelcomHotel, Fortune, and
WelcomHeritage names.
Colgate-Palmolive: Colgate-Palmolive is a consumer products company that
produces and distributes household, healthcare, and personal care products. It
manufactures and markets oral care, personal and home care, and pet nutrition products.
• Patanjali: Patanjali Ayurved is one of Dabur's top competitors. Patanjali Ayurved was
founded in 2006, and its headquarters is in Haridwar, Uttaranchal. Patanjali Ayurved
operates in the Consumer Goods industry. Patanjali Ayurved has 17,260 more employees
than Dabur.

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• Parle Agro: Parle Agro is one of Dabur's top rivals. Parle Agro was founded in 1959,
and is headquartered in Mumbai, Maharashtra. Parle Agro is in the Juices, Soft Drinks &
Non-alcoholic Beverages field. Parle Agro generates $944.6M less revenue vs. Dabur.
Conclusion
Dabur is one of the biggest Indian suppliers of FMCG and ayurvedic/health products. It has a
global presence on almost all of the world’s continents. Dabur went through a tie-up in 2017
with Amazon, the largest e-commerce platform. So, the company has got exposure to a
marketplace to sell Ayurvedic products online. The company has established a laboratory to
examine the key food products such as honey to remove the condition of adulteration. Dabur
is often responsible for providing consumers with authentic Ayurvedic medicines and FMCG
products. Dabur has primarily faced the challenge of rigid competition and because of its
brand name and high-quality product, customers believe that Dabur provides 100 per cent
natural products, it has always overcome the issue. The social factors that influenced the
clients’ emotions were targeted by Dabur. The desire to change ahead of others and to
always set new standards in corporate governance & creativity is what separates Dabur from
others.