How and Why DABUR has to Enter EU market SWOT analysis of DABUR 5C analysis of DABUR Competitors of Dabur Dabur out of India Best FMCG in India Marketing plan of dabur HR plan of dabur Finance and operations plan of dabur

1. Group 3

2. DABUR
USP: NATURAL AND AYURVEDIC FMCG PRODUCTS.
• It was founded in the year 1884 by Dr. S K Burman
• Dabur is a Public ltd Ayurvedic company and has its headquarters in Ghaziabad
• It has two hundred and fifty products. Popular brand with outlets in Africa, Europe, United States,
Russia, SAARC Countries and Middle East Countries
• Product categories are oral care, hair care, skin care, food products, health and home-care products
• The prices are kept minimum so that people can buy natural products which are healthy
• Distribution Network : 2.8 million retail outlets

3. Maximizing Shareholder’s Wealth
Shareholders
wealth
Profitability
Reduce cost
Add value &
Increase cost
Profit growth
Sell more
Expansion

4. Netherlands
Government
subsidies to
ayurvedic and
natural products.
European union is
the biggest market
with the share
45% of total
herbal market.
Access to ports
One of the world’s
best agricultural
countries
World’s 4th best
logistics
performance
Base for EU
countries
Source: http://lpi.worldbank.org/international/global?sort=asc&order=Infrastructure

5. Global Standardization
Strategy
Localization
Transnational Strategy
International Strategy
Pressure of local responsiveness
CostPressure
High
Low
ENTRY STRATEGY

6. LEGAL COSTS
BUREAUCRACYRED TAPISM
INFRASTRUCTURE COSTS
UTILITYWAREHOUSING
TRANSPORT
COST ANALYSIS
Number of days for processing: 4 days
Average number of procedures to be followed: 4/10
Land, labor, electricity, gas, inbound and outbound freight
Source: http://www.heritage.org/index/ranking

7. BENEFITS
Increase in employment
Increase in purchasing
power
Increase in disposable
income
RISK
• POLITICAL RISK: LOW
 Democratic
• LEGAL RISK: LOW
 Civil Law
• ECONOMIC RISK: LOW
 Sustainable GDP And PPP
 BREXIT
• TIME: FOLLOWER
• SCALE: LARGE SCALE
• HOW: GREENFIELD INVESTMENT
ENTRY STRATEGY
Demand for ayurvedic products increasing 4.6%

8. Porter’s Diamond Model
Firm Strategy, Structure
And Rivalry
Demand Conditions
Related And Supporting
Industries
Factor Endowments
(Basic And Advanced)
Land , Labor, Capital, Proximity
To Raw Materials.
Research Facilities,
Infrastructure, Logistics,
Namaste labs, Machinery.
Domestic Demand
Strong Competition From:
•Online Websites
•Maharishi Ayurveda
Source: http://www.heritage.org/index/ranking
http://lpi.worldbank.org/

9. Frequent buying customers
All age groups
Dabur India. 4th largest FMCG
company in India. Operations in
several countries. Purchased
Namaste Lab.
Maharishi Ayurveda Products
Pvt. Ltd. incorporated in 1986
It is the major player in
Netherlands
Political stability
Emerging middle class
population
Emerging of latest technology
Ayurveda is acceptable
culturally
Access to key ports, airways,
and railways.(ESSAR)
Developing strong alliances
with suppliers/wholesalers
CUSTOMER
CLIMATE
COLLABORATION
COMPANY
COMPETITOR
5C ANALYSIS

10. MARKETING PLAN
1. Fragmented and
concentrated
2. Channel length – long
( we will be selling
through Albert Heijn,
Jumbo)
3. Channel quality –
HIGH : due to these
international retailers
4. Channel exclusivity is
very low
Distribution strategy
1.Cultural barriers –
minimum
2.Source and origin
effects –India’s
brand image as the
ayurveda and herbs
hub
3.Pull strategy and
push
Communication Strategy
POSITIONING
• Ayurvedic
FMCG
• Affordable
Product
• Trusted
household name
Target
 Age : All age group
 Income : low and
middle income group
 Occasion of Usage :
Regular + Health
conscious people
Advertising
strategy
Television
Radio
News paper
Digital marketing
Pricing strategy
Competitive
pricing
SEGMENTATION
• Demographic
• Geographic
• Psychographic
• Behavioural

12. Make/buy Facility Suppliers Wholesalers/
distributors/retailers
Logistics
Make Location:
Tilburg
Near to
Rotterdam port
Export port :
Hyderabad, Nhava
Sheva sea,
Sabarmati icd
Entry port :
Rotterdam
Shipping partner:
ESSAR
•Vetrivel
herbals
•Govardhan
enterprises
•Jay jalaram
•Raj &
company
•Dabur’s
own
cultivation
Unstructured
•Udea
•Natudis
•Odin
•Other retail
outlets
Structured
•Jumbo
•Albert heijn
Technology
Daburnet :
currently in
Egypt, Nepal,
UAE, India
Expand for
EU with
headquarters
in
netherlands
Operations plan
• Ranked No. 2 in the world for overall logistics performance
Source:http://biz.allyface.com/india/suppliers/biz-dabur

13. HR PLAN
Consumer
Care
Foods &
Beverage
Consumer
Health Care
Dabur Asia
Division
Dabur
Africa
Division
Dabur
N America
Division
Dabur
Europe
Division
Organizational
Structure
Staffing
Policy
Poly Centric
Policy
Global
Matrix
Control
Mechanism
Bureaucratic
Headquarters:
India

14. FINANCIAL PLAN
I. Infrastructure
II. Working capital
III. Operating expenses
Purpose of funds
Capital
structure
debt equity Source of funds
Bonds
Bank loans
Cost of debt
Loan- 1.36%
Bond-2.2%
Source of funds
Risk mitigation –
Hedging, Letter of credit
Risk transfer - Insurance
Risk acceptance – R&D,
Forex fluctuations.