In this project i have done a business analysis of India's well renowned company naming Dabur. now first of all i have given basic info, of company then applied PESTEL analysis, life cycle analysis of one product, marketing mix strategy, company's KPI and CSF, porter five forces and finally conclusion.
2. Introduction and brief history
Dabur is India's largest Ayurvedic medicine & related
products manufacturer. Dabur was founded in 1884 by
SK Burman, a physician in West Bengal, to produce and
dispense Ayurvedic medicines.Dr. S. K. Burman launches
his missionto make health care products in Calcutta. In
1920 Dabur expands further with new manufacturing
units at Narendrapur. The distribution of Dabur products
spreads to Bihar and the North-East.
German company Fresenius SE bought a 73.27%equity
stake in Dabur Pharma in June 2008 at Rs76.50 a share.
Burman designed Ayurvedic medication for diseases such
as cholera and malaria.
Dabur's Ayurvedic Specialties Division has over 260
medicines for treating a range of ailments and body
conditions, from common cold to chronic paralysis.
Dabur India decides to merge its wholly owned
subsidiary Dabur Foods Limited with itself to exact
synergies and unlock operational efficiencies.
3. Company’s vision & Mission
The company’s vision and missionstatement is of a single
line however they have set some basic principles
according to which they run their operation.
Their vision and mission statement is:
"Dedicated to the health & well-being of every
household"
Their principles are:
Ownership
Passion for winning
People development
Consumer focus
Team work
Innovation
Integrity
The company aims to provide products that will improve
the lifestyles of individuals through the easing of medical
conditions and the improvement of the state of the mind
and body. Their first priority is the healthy lifestyle of
their valued customers and the second one is the profit
maximizationof company.
4. PESTEL Analysis
First of all before doing a PESTEL analysis of Dabur
Company we have to keep this thing in mind that PESTEL
is done on wider level therefore I have considered all
aspects at wider level and done the PESTEL analysis of
Dabur international which is a subsidiary of Dabur India.
Political:
Government support’s the pharmaceutical company’s
and help them to export their medicines to other
countries and same is the case in Dabur Company.
Political conditions in which they are operating right now
are also stable.
Economic:
Economic factor includes interest rates, inflation rates
and financial position of the people of country and their
buying capacity. Dabur manufactures a wide range of
products which usually do not costs too much so that
many people can buy their products.Rise in the living
standard of people have increased their production level,
& produce high quality & variety of products.
5. Social:
This factor includes demographics, family size, income
distribution, people attitude towards work and leisure
and their level of education.
If I talk about India market, then it has a huge number of
population which helps Dabur to create different market
segments to target a specific consumer. Segmentation
usually happens in their beauty care products not in
medicines. Another factor is level of education because
educated people know about the features of products
and they can differentiated it with other, of which the
company has to care.
Technological:
Dabur uses new equipment’s for making medicines and
also obsoletes the old ones. They have to compete with
allopathic medicines which uses superior and leading
technologies therefore they have to struggle hard to
achieve those levels of technology. These all are the
major responsibilities of R&D department.
6. Environmental:
Company has to make sure that they produce their
products with minimal environmental damage. They are
responsible for making eco-friendly products that can be
easily disposed of.
Legal:
The final one is legal which includes employment laws,
taxation laws and company’s law. Dabur provides equal
employment opportunities for all citizens based on their
qualification. They also have made consumer laws which
helps to protect the rights of buyer & he can file a case
against seller if he find that he is cheated.
7. Life cycle of Dabur Amla hair
oil
Introduction:
Dabur amla hair oil was introduced in 1940 and had lot of
competitors out there who were producing other amla
hair oil. In the beginning the market share of this hair oil
was low because the product was new in market and
most of the people were not aware of this product.
People were using the sub-standard hair oils in India. As a
new entrant their more focus was on the marketing of
product.
Initially there were generally high income buyers who
tried the product because others are more price
conscious.
Growth:
The market share of this hair oil increased and mostof
the non-standard hair oil were at the stage of extinction.
In their advertisement they highlighted the benefits of
using Dabur amla hair oil which were:
It Moisturizes your scalp
8. Prevents from any hair damage
Enhances healthy hair growth
People were started of becoming aware about benefits
of using Dabur’s hair oil and mostimportant thing was
that this product emerged as a branded hair oil.
Maturity:
From 2005 to 2010, it was the time when this hair oil was
at its peak and it accounted 75% sales of Dabur
company’s total sales. Market share stopped increasing
and company was aware about their existing customers
or repeating buyers. They were the market leaders of
hair oil and offering the product at competitive price.
Decline:
Afterwards, the product sales were started to decrease
because there is nothing a company further can do with
amla hair oil or can’t bring more innovation in this oil.
Furthermore most of the people stopped using this oil
because it is greasy, smelly and not suitable for formal
occasions.
Nowadays people prefer to use hair tonic which is non-
greasy and has no odor and is available for every types of
hair.
9. Marketing mix strategy
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
merchandises like oral care, hair care, skin care, food
products, and health-care and home-care products.
Some of them are Hajmola, Dabur Balm, rose water, and
moisturizing cream.
Price:
After analyzing each aspect carefully, they determine
their pricing strategy. 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. A 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.
10. 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.
It has many laboratories where thorough research and
development work is in progress. Dabur has opened its
first manufacturing unit overseas in Birgunj Nepal and
the second one is in Egypt.
Promotion:
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 helps them 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. In televisions, famous actors and sportsperson are
advertising the products. AmitabhBachchan is seen
regularly in Dabur ads like Dabur Chyawanprash and
Dabur Hajmola.
11. CSF AND KPI’S OF DABUR
Critical success factors are the key factors of company
that are responsible for company’s success. Now the
reason for Dabur success is that their distinctive
competencies in research and development. Their
unique formulation in making medicines and the
effectiveness of these pills. Most of the customers are
satisfied with their products.
Diversity is also another factor for their success. They
have manufactured products ranging from medicines to
food products. We can also say that price is also another
factor for success. They have maintained a reasonable
prices for a longer period of time.
Key performance indicators are the measurable factors
that depict the performance of the firm.
Efficiency in the operations of Dabur Company shows
their kpi’s. Number of injuries reported in monthly
report. Number of late deliveries to the buyers.
12. Use of I.T in porter five forces
The given below analysis is of Indian i.t industry:
1. Threat of Substitute Products:
Dabur is a leader in Herbal Digestives where the
product has 90% of the market share.
Healthcare products especially ayurvedic, hardly
have substitutes, so this threat is not very significant.
some product substitutes and similar products by
competitors do exist
Dabur therefore has to constantly re-invent its
existing product lines in order to cope up with the
innovations of its competitors.
2. Threat of New Entrants:
Dabur has a 100 year legacy, first mover, brand
loyalty, patents ,economies of scale
No significant entry barriers.
3. Bargaining Power of Customers:
Bargaining power of customers has increased rapidly
due to a wide range of available choices from
competitors, both local and global.
13. Dabur has to formulate strategy in such a manner to
tackle with the increasing competition by improving
the quality and reducing the prices over the period.
4. Bargaining Power of Suppliers:
Dabur has 100 years presence also Dabur has a very
strong bond with the suppliers.
Dabur buy’s the packaging of their products in huge
quantity which allows them to get bulk discounts on
orders due to which the bargaining power of
suppliers is not much that high.
5. Rivalry:
Key players and competitors of Dabur India currently
are Hindustan Unilever Ltd., Tata Tea, Nestle India
Ltd., Britannia Industries Ltd., and Colgate Palmolive
Ltd.
Dabur has to constantly relook its strategy and keep
reinventing and branding, in order to maintain and
increase its market presence.
14. Conclusion
After searching and reading a lot about Dabur
Company I have concluded and highlighted some of
the most prominent aspects of the company.
First of all it is the largest ayurvadic and natural herbal
making Product Company in the entire world which
helped me a lot in searching info about company on
the internet. I mean they have a very sophisticated and
well updated website so that whatever stuff what I
needed was there.
Another thing I that I have learned so much from this
project is that after applying the PESTEL, product life
cycle model and porter five forces made it easy for me
to apply these models on different scenarios.
This was the final project of business analysis therefore
I worked hard and overall it was a good experience for
me.