BRM Assignment

Company: Dabur

Contents
BRM Assignment .................................................................................................................................... 1
Core Competency: .................................................................................................................................. 2
Porter 5 forces of Dabur: ........................................................................................................................ 2
BCG Matrix of Dabur: .............................................................................................................................. 3
SWOT Analysis......................................................................................................................................... 4
Paid-up Capital: ....................................................................................................................................... 7
Financial Ratios of Dabur: ....................................................................................................................... 8
B2B and B2C marketing strategies for Dabur: ........................................................................................ 9
Marketing mix of Dabur ...................................................................................................................... 9
Core Competency:
• Dabur's core competence lies in its ability to conceive, develop and market products
based on herbs and natural resources. The top five brands contribute about 55
percent to revenues, amounting about Rs. 650 crores.
• Having gained the trust of its customers and acknowledged by them as a likeable
brand for which they feel a strong sense of brand loyalty, Dabur has entrenched a
strong brand presence in the consumer mindsets, not only for the current customers
but also the potential ones.
• It is the world leader in Ayurveda and has a portfolio of over 400 herbal and ayurvedic
products. Despite of being so diversified in nature, never once has Dabur lost its focus
and has concentrated on the Ayurvedic phenomenon of nature-based products.
• Its internal core competencies are inclusive of having a healthy manufacturing setup
along with the latest state of the art Research and Development facilities.
• Dabur has an extensive distribution of over 540,000 retailers in India. In a bid to widen
its product range, expand its market reach and leverage its distribution strengths.
• Dabur’s International Business Division (IBD) today caters to the health & personal
care needs of customers across different international markets spanning South Asia,
Middle East, North & West Africa.

Porter 5 forces of Dabur:

Degree of Rivalry among competitors:

One can state that the industry has a high level of rivalry amongst competitors because the market is
fragmented and there are a great deal of players existing separately with their particular company
models. The truth that no big firm has entered this Porters Analysis of Dabur case service adds to the
high level of degree of competition amongst industry players. Since the services being supplied are
mostly similar, the lack of differentiation provided by market gamers further increases the degree of
rivalry amongst industry gamers.

Threat of new entrants:

The market has a high risk of brand-new entrants since it does not require high investment in
technology to get in the market. The purchase of materials and materials is fairly easy and so small
gamers can easily enter the market. Without any economies of scale being seen in the market due to
the lack of larger gamers, the industry offers extremely low barriers to entry. In addition, there is no
extraordinary skill required in lorry cleaning if we look at business models being utilized presently
which further reduces the barriers of entry.

Threat of substitutes:
The risks of alternative may be low offered the reality that cars and truck cleaning does not
particularly have substitutes. While the principle might have different kinds of vehicle Porters
Analysis of Dabur such as self-service automobile washes and automated cars and truck Porters
Analysis of Dabur, however the general concept of car wash does not have replacements.
Bargaining power of suppliers:
The bargaining power of the provider is rather low offered the reality that there are a large number
of suppliers in the automobile wash market. With the lack of supplier agreements and customer
commitment, the provider has a low specific power.

Bargaining power of buyers:

With the market having a great deal of suppliers using services with their respective cost, quality and
individuality, the client can easily switch between suppliers. Since brand changing is not done at a
high expense to the customer, the market has a high bargaining power when it pertains to the
purchaser.

BCG Matrix of Dabur:

Cash Cows
Dabur hair oil has been faring well in the Indian and international market, making strong
financial performance. Agarwal (2016) has indicated that Dabur holds a prominent position
in the hair oil segment in India. It has been further noted that in 2016, more than 60% of the
market share in India in the hair oil segment belonged to Dabur hair oil categories. Another
product that has performed well in the domestic and international market is Dabur Hajmola,
a renowned remedy for indigestion in the domestic market specifically. In India alone, the
consumers are purchasing 2.6 crore tablets on a daily basis, which indicates a large sales
volume (Dabur Hajmola). Moreover, the herbal remedy industry in India is dominated by
Dabur Hajmola, as evident from the 50% share owned by the product.
Stars
Dabur toothpaste has been able to create a significant niche in the market while the Dabur
juice has attained similar success. Bhushan (2016) has shared insight into the Indian
toothpaste market, highlighting that the red toothpaste by Dabur has been able to secure a
position among the top 3 leading brands in the country. The significant market share shows
that the company has been able to compete with the foreign MNCs, such as Colgate-Palmolive
Company. In the beverage segment, Dabur juice has targeted the needs of the customers who
want fizzy drinks, yet want to consume healthy beverages. The option of fruit juice with the
fizzy combination has appealed the target market, increasing the demand of the product
within a short span of time, making it a star for Dabur.
Question Marks
Despite the high sales of toothpaste, juice and digestive tablet, there are some products
that have not been able to gain a positive response from the market. The acquisition of
NewU has been speculated as a risky decision as the company was renowned for its focus
on herbal products. The management has decided to invest 100 crore Indian Rs in the
venture, which is a huge amount in terms of investing while diversifying the business (Batra,
2015). NewU was a question mark for Dabur as it carried a great deal of risk and could be
failure for the company. On the other hand, there was also a possibility of success which
could help the company in diversifying its market presence. Another motivator for this
decision was the expectation of earning 150 crore revenue through NewU investment.
Dogs
Some business decisions by Dabur have resulted in the development of products that have
not gained a significant market share. Furthermore, these items do not have a profitable
outlook in the future. Rath (2011) has provided the example of Dabur’s Lal Dant Manjan
toothpowder, indicating the low potential of growth for this product. The consumers have a
higher demand for toothpaste and toothpowder continues to have a much lower demand
among the consumers. Therefore, the investment in toothpowder suggests low profitability
and revenue generation. Rath (2011) has further observed that the main demand of
toothpowder originates from the older consumers, however, the demand is not significant to
categorize toothpowder as a cash cow or star.

SWOT Analysis
Strengths in the SWOT analysis of Dabur

• A large number of variants: The fruit juice is available in two variants namely the Real
and the Real Active Juice. Both the drinks are there in 16 flavours like Mango, Mosambi,
Guava, Plum & Litchi, Pomegranate, Tomato, Cranberry, Peach, Blackcurrant, Apricot,
Orange, Pineapple, Apple and mixed fruits.
 • Real Fruit: The unique selling proposition of the juice is that there are no additives and
that it is made from real fruit which is then mixed with an equal quantity of water. In
Real Active, there are no added sugars or flavours and no preservatives or additives of
any sort.
• Endorsements and certifications: Dabur Real Juices are endorsed by PFNDAI — Protein
Foods & Nutrition Development Association of India for the nutritional content
them. The juice is also the Reader’s Digest Trusted Brand Gold Award 2009 in the food
& beverages category.
• Better Understanding of Indian market: As against multinational brands like Pepsi,
Coca-Cola or Tropicana, Dabur being an Indian company has deeper understanding of
the Indian taste. They have introduced Indian fruits like Mosambi and Guava which are
favorites amongst the local audience.

Weaknesses in the SWOT analysis of Dabur

• Image: Dabur has always been associated with pharmaceutical and medical industry
and thus they found it difficult to take up the image of a company that sells fruit juice
in comparison to their competitors like Tropicana or Coca-Cola who had established the
presence in the juices market.
• Indian habits: Quite unlike the Western world where fruit juice is consumed during
breakfast the Indian habits are different. Here fruit juice is something that is offered to
guests or which is consumed occasionally. This reduced the frequency of purchase.
• Packaging: Real Fruit Juices do not have additives or preservatives and thus the
company has had to invest profusely into determining technologies for packaging in
order to retain the freshness and quality of their drinks.The low shelf life also creates
challenges in distribution channel management.
• Expensive: In comparison to aerated drinks like Pepsi or Coca-Cola, Real Fruit Juice is
expensive and thus may not be preferred by all customers. Yet another issue here is
that such drinks are not perceived as value for money options.
• Acquired Taste: Dabur Real Juices do not have the fresh taste of juice and is alleged to
have a medicinal flavor to it. Customers may need to get used to the taste of the juice
to start liking the flavor making it an acquired taste.

Opportunities in the SWOT analysis of Dabur

• High market potential for packaged drinks in India: The market size of the packaged
drinks market is roughly around 100 crores INR and it is expected to grow at around 18
percent per annum. This is a huge opportunity for an Indian company like Dabur.
• Favourable environment in India: With the government supporting “Make in India”
domestic companies have a lot to gain in terms of government support. Moreover,
there are a lot of concessions granted to the food processing sector.
• Dabur is the world’s largest ayurvedic medicine and its export quantities are constantly
in demand in foreign market
• The affinity towards yoga and Hinduism is proving more advantageous towards the
reach of ayurvedic medicines globally
• People have started realizing that ayurvedic medicines like Dabur, Himalayas etc doesn’t
have much of side effects
 • Growing women’s earning power has made them independent and has made them to
be more health and beauty conscious – a segment in which Dabur too is trying to
capitalise with its products
• Improper and unhealthy food habits due to modernization has forced people to take
ayurvedic supplementary like Chavanaprash, Hajmola, and life style medicines
• Ayurveda as a field is receiving much more attention across the world in the last 2–3
years. Thus huge opportunity for Dabur to capitalize on the market sentiments.

Threats in the SWOT analysis of Dabur

• Low barriers to entry: There are low or no barriers to entry in the fruit drinks sector
and competition comes in all shapes and forms. Even small to medium-sized businesses
set up local production units that make fruit juices.
• Competition: Some of the major competitors of Dabur Real are Minute Maid, Onjus,
Coca-Cola, Pepsi, Mirinda, Slice, Maaza, Frooti, and Tropicana.
• The allopathy players are of major threat as they invest heavily on advertising and
distribution of their products through medical representatives etc
• Some ayurvedic doctors give their own medicines or give a mixture of Ayurvedic
Company’s product without packaging (loose medicines). This reduces the sales in the
market and dilutes the brand image
• Since ayurvedic medicinal practise is obtained traditionally there are many untrained
professions who take up the profession
• Lead and ferric content are more present in many ayurvedic medicine, this may
sometime result in reverse side effects when consumer over longer period
• Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and
attend health camps to get cured
Paid-up Capital:
Financial Ratios of Dabur:
B2B and B2C marketing strategies for Dabur:
Sales in the FMCG space is very different to B2B sales. Sales reps require very different skill
sets to deal with the unique challenges of their business model, where they deal with a range
of distributors from large chains to mom and pop stores.
“Apart from the typical negotiations, conflict management, and partner management skills,
it’s important to drive process adherence. Coaching focuses not only on team handling and
negotiations skills but also basic analytical skills. This helps identify whether sales reps are
able to interpret data as expected.” Dabur organised customized education programmes for
the B2B customers like beauty parlours, doctors etc.

Marketing mix of Dabur

Dabur is one of the leading companies in India and it deals with products that are Ayurvedic in
nature. Dabur is known to be a natural product as all of Dabur products are related to herbs.
Dabur, the brand name, is associated with trust and its products have helped the company to
become a household name.
Dabur has the distinction of having nearly two hundred and fifty products under its brand
name. It is a very popular brand with outlets in Africa, Europe, United States, Russia, SAARC
Countries and Middle East Countries.
Product in the marketing mix of Dabur
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 in the marketing mix of Dabur

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
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 in the marketing mix of Dabur

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 in the marketing mix of Dabur

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.

In Televisions, famous actors and sportsperson are advertising the products. Amitabh
Bachchan is seen regularly 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.