INTRODUCTION TO DABUR

Dabur is derived from the word Da for Daktar or Doctor and bur
from Burman.
Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of
about US$750 Million (over Rs 3416 Crore) & Market Capitalization of over
US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy of quality and
experience of over 125 years, Dabur is today Indias most trusted name and
the worlds largest Ayurvedic and Natural Health Care Company.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five
flagship brands with distinct brand identities -- Dabur as the master brand for
natural healthcare products, Vatika for premium personal care, Hajmola for
digestives, Real for fruit juices and beverages and Fem for fairness bleaches
and skin care products.
Dabur today operates in key consumer products categories like Hair Care,
Oral Care, Health Care, Skin Care, Home Care and Foods. The company
has a wide distribution network, covering over 2.8 million retail outlets with a
high penetration in both urban and rural markets.
Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are highly
popular in the Middle East, SAARC countries, Africa, US, Europe and
Russia. Dabur's overseas revenues stand at over Rs 500 Crore in the 200809 fiscal, accounting for about 20% of the total turnover.
The 125-year-old company, promoted by the Burman family, had started
operations in 1884 as an Ayurvedic medicines company. From its humble
beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way
today to become one of the biggest Indian-owned consumer goods companies
with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a family-run
business to become a professionally managed enterprise. What sets Dabur
apart from the crowd is its ability to change ahead of others and to always set
new standards in corporate governance& innovation.

COMPANY PROFILE -

Type Public (NSE, BSE)

Founded 1884
Headquarters Ghaziabad
Key people V. C. Burman
Business Daburs product range encompasses health care, personal care,
ayurvedic specialties and food segments.
Brands - Well-known brands include Amla, Chyawanprash, Hajmola, Lal
Dantmanjan, Nature Care and Pudin Hara.
Location - Dabur has been marketing its products in more than 50 countries all
over the world. The company has offices and representatives in Europe,
America and Africa. Manufacturing facilities are spread across three overseas
locations.
Revenue Turnover of approx Rs 3417,1 Crore (FY-2010) & Market
Capitalization of Rs. 15500 Crore.
Official Website - www.dabur.com

MISSION: To maximize shareholders value, by offering superior quality

nature based products, that contributes in improving consumers life in
Personal care, Health Care and foods.

VISION:

HEALTH AND WELL BEING OF EVERY HOUSEHOULD

Dabur is a company with a set of established business values, which direct it's
functioning as well as all its operations. The guiding forces for Dabur are the
words of its founder, Dr.S. K. Burman,
"What is that life worth that can not give comfort to others."
The Company offers its customers, the products to suit their needs and give
them good values for money. The company is committed to follow the ethical
practices in doing business. At Dabur, nature acts as not only the source of raw
materials but also an inspiration and the company is committed to product the
ecological balance.

VISION 2011
After the successful implementation of the 4-year business plan from 2002 to
2006, Dabur has launched another plan for 2011. The main objectives are:
Doubling of the sales figure from 2006
The new plan will focus on expansion, acquisition and innovation.
Although Daburs international business has done well growing
by almost 29 per cent to Rs.292 crore in 2006-07, plans are to
increase it by leaps and bounds.
Growth will be achieved through international business, homecare,
healthcare and foods.
Southern markets will remain as a focus area to increase its
revenue share to 15 per cent.
With smoothly sailing through its previous plans, this vision seems possible.
Time and again, Dabur has made decisions that have led to its present position.
However, if Dabur could be more aggressive in its approach, it can rise to
unprecedented levels. To conclude, this is a 10 year performance table from
Daburs website.

PRINCIPLES

OWNERSHIP: This is our company. We accept responsibility and

accountability to meet business needs.
PASSION FOR WINNING: We all are leaders in our responsibility, with a
deep commitment to deliver the results. We are determined to be the best at
doing what matters the most.
PEOPLE DEVELOPMENT: People are our most important asset. We add
value through result- driven training and we encourage rewards and excellence.
CONSUMER FOCUS: We have superior understanding of consumer needs
and develop products to fulfill their demands.
INNOVATION: Continuous innovation in products and processes and is the
base of our success.
Dabur over the Years:
More than a century ago, a young doctor started with a vision to Provide
innovative and affordable health care products to Indian masses. Thus, was born
an organization today known as Dabur India Limited. The twelve hundred
crores corporate today started with a small dispensary at Calcutta, the noble
thoughts of Dr.S.K.Burman being the main source of inspiration behind the
project. From that humble beginning, the company has grown into Indias
leading manufacturer of consumer health care, personal care and food products.
This phenomenal progress has seen many milestones, some of which are
mentioned below:
1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India
Limited. Started from a small shop at Calcutta, he began a direct mailing system
to send his medicines to even the smallest of villages in Bengal. The brand
name Dabur is derived from the words "DA" for Daktar or doctor and "BUR"
from Burman.
1896: As the demand for Dabur products grows, Dr. Burman felt the need for
mass production for some of his medicines. He set up a small manufacturing
plant at Garhai near Calcutta.

Early 1900s: The next generations of Burmans take a conscious decision to

enter the Ayurvedic medicines market, as they believe that it is only through
ayurveda that the healthcare needs of poor Indians can be met.
1919: The search for processes to suit mass production of Ayurvedic medicines
without compromising on basic ayurvedic principles lead to the setting up of the
first Research and Development laboratory at Dabur. This initiate a pain staking
study of ayurvedic medicines as mentioned in age old scriptures, their
manufacturing processes and how to utilize modern equipment to manufacture
these medicines without reducing the efficacy to manufacture these medicines
without reducing the efficacy of these drugs.
1920s: A-manufacturing facility for Ayurvedic Medicines is set up at
Narendrapur and Daburgram. Dabur expands its distribution network to Bihar
and northeast.
1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.
1940: Dabur diversifiers into personal care products with the launch of its
Dabur Amla Hair Oil. This perfumed hair oil catches the imagination of the
common man and film stars alike and becomes the largest hair oil brand in
India.
1949: Dabur Chyawanprash is launched in a tin pack and becomes the first
branded Chyawanprash of India.
1956: Dabur buys its first computer. Accounts and stock keeping are one of the
first operations to be computerized.
1970: Dabur expands its personal care portfolio by adding oral care products.
Dabur Lal Dant Manjan is launched and captures the Indian rural market.
1972: Dabur shifts base to Delhi from Calcutta. Starts production From a hired
manufacturing facility at Faridabad.
1978: Dabur launches the Hajmola tablets. This is the first time that a classical
Ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.
1979: The Dabur Research Foundation (DRF), an independent Company is set
up to spearhead Dabur's multi-faceted research. Commercial production starts at
Sahibabad. This is one of the largest and most modern production facilities for
Ayurvedic medicines in India at this time.

1984: The Dabur brand turns 100 but is still young enough to Experiment with
new offerings in the market.
1986: Dabur becomes a public Limited company through reversemerger with
Vidogum Limited, and is re-christened Dabur IndiaLimited.
1989: Hajmola Candy is launched and captures the imagination of Children and
establishes a large market share.
1992: Dabur enters into a joint venture with Agrolimen of Spain far
manufacturing and marketing confectionery items such as bubble gums in India.
1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.
1994: Dabur India Limited comes out with its first public issued at a premium
of Rs.85 per share. The issue is subscribed over 21 times.
1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch
this product. The Dabur Research Foundation develops the unique eco-friendly
process of extracting the drug from the leaves of the Asian Yew Tree.
1995: Dabur enters into a joint venture with Osem of Israel for food and
Bongrain of France for cheese other dairy products.
1996: Dabur launches Real fruit juices, which heralds the company's entry into
the processed food market.
1997: The foods division is created, compromising of real fruit juices and
Homemade cooking paste to form the core of this division's product portfolio.
1998: Project STARS (Strive to Achieve Record Successes) is Initiated by the
company to achieve accelerated growth in the coming years. The scope of this
project is strategic, structural and operational changes to enables efficiencies
and improves growth rates.
1998: The Burman family hands over the reins of the company to a
professional, Mr. Ninu Khanna joins Dabur, as the Chief Executive Officer.
1999-2000: Dabur achieves the Rs.1000 crores turnover mark.
2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava,
apple active, orange active, homemade pappad, Vatika- an- anti-dandruff
shampoo.

2002: New launches homemade coconut milk (in south), Tang, Tomato puree,
Vatika light.
2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per
cent. Turnover of FMCG reaches to Rs l048.5 crores, which shows a profit of
Rs. 72 crores. Turnover of pharmaceuticals reaches to Rs 184 crores with a
profit of Rs.13 crores.
2005: Dabur Acquires Balsara in Rs -143 crore in all-cash deal. Dabur
Announces Bonus after 12years.
2007: Dabur Crosses $2 Bil of market capitalalization
2008: Acquires Fem care Pharma a leading player in the womens skin care
market.
Dabur (Company History) Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he
prepared Ayurvedic medicines to treat diseases like malaria, plague and cholera
that had no cure during that period. It was his dedication, commitment and
empathy that made Dabur a renowned name among the masses. And today, after
more than 120 years, Dabur is known for its trustworthiness more than anything
else.
During this passage of time, Dabur went through several structural and strategic
changes to maintain its market strength. The real mass production started in
1896. Early 1900s saw Dabur emerge as the first company to provide health
care through scientifically tested methods. It achieved significant improvements
after setting up Research and Development centers and manufacturing
automation. The launch of Daburs Amla hair oil and Chyawanprash was a boon
to the expanding business. To keep up with the times, Dabur computerized its
operations in 1957. Its Dant Manjan and digestive tablets were widely accepted
as well.
However with a large product portfolio in the market, Dabur had to maintain
operational efficiency. To make sure it adjusted to the business environment it
became a public limited company in 1986 followed by diversification in Spain
in 1992. A major change came when Dabur came up with its IPO in 1994.
Because of its position, Daburs issue was 21 times oversubscribed. Dabur
further divided its business into three separate groups:

 Health Care Products Division

Family Products Division
Dabur Ayurvedic Specialties Limited
In 1998, for the first time in the history of Dabur, a non-family member took
charge. Dabur handed over the operations to professionals. Successful
implementation of procedures, timely changes and maintaining its essence,
Dabur achieved its highest-ever sales figure of Rs 1166.5 crore in 2000-01.
As FMCG sector was struggling with the slow growth in the Indian economy,
Dabur decided to take numerous strategic initiatives, reorganize operations and
improvise on its brand architecture beginning 2002. It decided to concentrate its
marketing efforts on Dabur, Vatika, Anmol, Real and Hajmola to strengthen
their brand equity, create differentiation and emerge as a pure FMCG player
recognized as a herbal brand. This was chosen after a study with Accenture,
which revealed that Dabur was mainly perceived as a Herbal brand and
connected more with the age group above 35.
Also, larger retailers were making their foray into the FMCG market. Apart
from HLL, P&G, Marico and Himalya, ITC was also posing a challenge. The
supply chain of Dabur was becoming complex because of the large array of
products. Southern markets share in the sales figure was negligible. These
factors posed a threat to Dabur and hence small changes were not enough.
MANAGEMENT& OWNERSHIP STRUCTURE
Board of Directors
Dabur has an illustrious Board of Directors who are committed to take
the company onto newer levels of human endeavour in the service of
mankind. The Board comprises of:
Chairman
Dr. Anand Burman
Vice-Chairman
Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang, Mr. Sunil Duggal, Mr.Pradeep Burman
Non Whole Time Promoters, Directors

Mr. Mohit Burman

Independent Directors
Maharaja Gaj Singh Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan
The C.E.O
Sunil Duggal
(Chief Executive Officer)
Dabur India Limited

MARKETING STRATERY
Marketing strategy is a process that can allow an organization to
concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage.
Marketing strategy consists of the analysis, strategy development,
and implementation activities in: Developing a vision about the
market(s) of interest to the organization, selecting market target
strategies, setting objectives, and developing, implementing, and
managing the marketing program positioning strategies designed to meet
the value requirements of the customers in each market target.
Strategic marketing is a market-driven process of strategy
development, taking into account a constantly changing business
environment and the need to deliver superior customer value. The focus
of strategic marketing is on organizational performance rather than a
primary concern about increasing sales. Marketing strategy seeks to
deliver superior customer value by combining the customer-influencing
strategies of the business into a coordinated set of market-driven actions.
Strategic marketing links the organization with the environment and
views marketing as a responsibility of the entire business rather than a
specialized function.
Because of marketings boundary orientation between the
organization and its customers, channel members, and competition,
marketing processes are central to the business strategy planning process.
Strategic marketing provides the expertise for environmental monitoring,
for deciding what customer groups to serve, for guiding product
specifications, and for choosing which competitors to position against.
Successfully integrating cross-functional strategies is critical to providing

superior customer value. Customer value requirements must be

transformed into product design and production guidelines. Success in
achieving high-quality goods and services require finding out which
attributes of goods and service quality drive customer value.
Marketing Strategy Process
The marketing strategy analysis, planning, implementation and
management process is described below. The strategic situation analysis
considers market and competitor analysis, market segmentation, and
continuous learning about markets. Designing marketing strategy
examines customer targeting and positioning strategies, marketing
relationship strategies and planning for new products. Marketing program
development consists of product, distribution, price, and promotion
strategies designed and implemented to meet the value requirements of
targeted buyers. Strategy implementation and management consider
organizational design and marketing strategy implementation and control.

Stage 1: Strategic Situation Analysis

Marketing management uses the information provided by the
situation analysis to guide the design of a new strategy or change an
existing strategy. The situation analysis is conducted on a regular basis
after the strategy is under way to evaluate strategy performance and
identify needed strategy changes.
Market Vision, Structure, and Analysis
Markets need to be defined so that buyers and competition can be
analyzed. For a market to exist there must be (1) people with particular
needs and wants and one or more products that can satisfy buyers needs,
and (2) buyers willing and able to purchase a product that satisfies their
needs and wants. A product-market consists of a specific product (or line
of related products) that can satisfy a set of needs and wants for the
people (or organizations) willing and able to purchase it. The
term product is used to indicate either a physical good or an intangible
service.
Analyzing product-markets and forecasting how they will change
in the future are vital to business and marketing planning. Decisions to

enter new product-markets, how to serve existing product-markets, and

when to exist in unattractive product-markets are critical strategic
choices. The objective is to identify and describe the buyers, understand
their preferences for products, estimate the size and rate of growth of the
market, and find out what companies and products are competing in the
market.
Evaluation of competitors strategies, strengths, limitations and
plans is also a key aspect of the situation analysis. It is important to
identify both existing and potential competitors. Competitor analysis
includes evaluating each key competitor. The analyses highlight the
competitions important strengths and weaknesses. A key issue is trying
to figure out what each competitor is likely to do in future.

Segmenting Markets
Market segmentation looks at the nature and extent of diversity of
buyers needs and wants in a market. It offers an opportunity for an
organization to focus in business capabilities on the requirements of one
or more groups of buyers. The objective of segmentation is to examine
differences in needs and wants and to identify the segments (sub-groups)
within the product-market of interest. Each segment contains buyers with
similar needs and wants for the product category of interest to
management. The segments are described using the various
characteristics of people, the reasons that they buy or use certain
products, and their preferences for certain brands of products. Likewise,
segments of industrial product-markets may be formed according to the
type of industry, the uses for the product, frequency of product purchase,
and various other factors.
Continuous Learning about Markets
One of the major realities of achieving business success today is
the necessity of understanding markets and competition. Sensing what is
happening and is likely to occur in the future is complicated by
competitive threats that may exist beyond traditional industry boundaries.
For example, CD-ROMs compete with books.

Stage 2: Designing Market-Driven Strategies

The strategic situation analysis phase of the marketing strategy
process identifies market opportunities, defines market segments,
evaluates competition, and assesses the organizations strengths and
weaknesses. Market sensing information plays a key role in designing
marketing strategy, which includes market targeting and positioning
strategies, building marketing relationships, and developing and
introducing new products.
Market Targeting and Strategic Positioning
Marketing advantage is influenced by several situational factors
including industry characteristics, type of firm (e.g., size), extent of
differentiation in buyers needs, and the specific competitive advantage(s)
of the company designing the marketing strategy. The core issue is
deciding how, when, and where to compete, given a firms market and
competitive environment.
The purpose of the marketing targeting strategy is to select the
people (or organizations) that management wishes to serve in the productmarket. When buyers needs and wants vary, the market target is usually
one or more segments of the product-market. Once the segments are
identified and their relative importance to the firm determined, the
targeting strategy is selected. The objective is to find the best match
between the value requirements of each segment and the organizations
distinctive capabilities. The targeting decision is the focal point of
marketing strategy since targeting guides the setting of objectives and
developing a positioning strategy. The options range from targeting most
of the segments to targeting one or few segments in a product-market.
The targeting strategy may be influenced by the markets maturity , the
diversity of buyers needs and preferences, the firms size compared to
competition, corporate resources and priorities, and the volume of sales
required to achieve favorable financial results. Deciding the objectives for
each market target spells out the results expected by management.
Examples of market target objectives are desired levels of sales, market
share, customer retention, profit contribution, and customer satisfaction.
Marketing objectives may also be set for the entire business unit and for
specific marketing activities such as advertising.

The marketing program positioning strategy is the combination of

product, value-chain, price, and promotion strategies a firm uses to
position itself against its key competitors in meeting the needs and wants
of the market target, the strategies and tactics used to gain a favorable
position are called the marketing mix or the marketing program.
Marketing Relationship Strategies
Marketing relationship partners may include end user customers,
marketing channel members, suppliers, competitor alliances, and internal
teams. The driving force underlying these relationships is that a company
may enhance its ability to satisfy customers and cope with a rapidly
changing business environment through collaboration of the parties
involved. Relationship strategies gained new importance in the last
decade as customers became more demanding and competition became
more intense. Building long-term relationships with customers and valuechain partners offers companies a way to provide superior customer
value. Although building collaborative relationships may not always be
the best course of action, this avenue for gaining a competitive edge is
increasing in popularity.
Strategic partnering has become an important strategic initiative for
many well known companies and brands. Many firms outsource the
manufacturing of their products. Examples include Motorola cell phones,
Calvin Klein jeans, Pepsi beverages, and Nike footwear. Strong
relationships with outsourcing partners are vital to the success of these
powerful brands. The trend of the 21st century is partnering rather than
vertical integration.
Planning for New Products
New products are needed to replace old products because of
declining sales and profits. Strategies for developing and positioning new
market entries involve all functions of the business. Closely coordinated
new-product planning is essential to satisfy customer requirements and
produce products with high quality at competitive prices. New-product
decisions include finding and evaluating ideas, selecting the most
promising for development, designing the products, developing
marketing programs, use and market testing the products, and introducing
them to the market.
The new-product planning process starts by identifying gaps in
customer satisfaction. The differences between existing product attributes

and those desired by customers offer opportunities for new and improved
products.
Stage 3: Market-Driven Program Development
Market targeting and positioning strategies for new and existing
products guide the choice of strategies for the marketing program
components. Product, distribution, price, and promotion strategies are
combined to form the positioning strategy selected for each market target.
The marketing program (mix) strategies implement the positioning
strategy. The objective is to achieve favorable positioning while
allocating financial, human, and production resources to markets,
customers, and products as effectively and efficiently as possible.
Strategic Brand Management
Products (goods and services) often are the focal point of
positioning strategy, particularly when companies or business adopt
organizational approaches emphasizing product or brand management.
Product strategy includes: (1) developing plans for new products, (2)
managing programs for successful products, and (3) deciding what to do
about problem products (e.g., reduce costs or improve the product).
Strategic brand management consists of building brand value (equity) and
managing the organizations portfolio for overall performance.
Value-Chain, Price, and Promotion Strategies
One of the major issues in managing program is deciding how to
integrate the components of the mix. Product, distribution, price, and
promotion strategies are shaped into a coordinated plan of action. Each
component helps to influence buyers in their positioning of products. If
the activities of these mix components are not coordinated, the actions
may conflict and resources may be wasted. For example, if the
advertising messages for a companys brand stress quality and
performance, but salesperson emphasize low price, buyers will be
confused and brand damage may occur.
Market target buyers may be contacted on a direct basis using the
firms sales force or by direct marketing contact (e.g., Internet), or
instead, through a value-added chain (distribution channel) of marketing
intermediaries (e.g., wholesalers, retailers, or dealers). Distribution
channels are often used in linking procedures with end user household
and business markets. Decisions that need to be made include the type of

channel organization to use, the extent of channel management performed

by the firm, and the intensity of distribution appropriate for the product or
service. The choice of distribution channels influences buyers
positioning of the brand.
Price also plays an important role in positioning a product or
service. Customer reaction to alternative prices, the cost of the product,
the prices of the competition and various legal and ethical factors
establish the extent of flexibility management has in setting prices. Price
strategy involves choosing the role of price in the positioning strategy,
including the desired positioning of the product or brand as well as the
margins necessary to satisfy and motivate distribution channel
participants. Price may be used as an active (visible) component of
marketing strategy, or, instead, marketing emphasis may be on other
marketing mix components (e.g., product quality).
Advertising, sales promotion, the sales force, direct marketing, and
public relations help the organization to communicate with its customers,
value-chain partners, the public, and other target audiences. These
activities make up the promotion strategy, which performs an essential
role in communicating the positioning strategy to buyers and other
relevant influences. Promotion informs, reminds, and persuades buyers
and others who influence the purchasing process.
Stage 4: Implementing and Managing Market-Driven Strategy
Selecting customers to target and the positioning strategy for each
target moves marketing strategy development to the action stage. This
stage considers designing the marketing organization and implementing
and managing the strategy.
Designing Effective Market-Driven Organizations
An effective organization design matches people and work
responsibilities in a way that is best for accomplishing the firms
marketing strategy. Deciding how to assemble people into organizational
units and assign responsibility to the various mix components that make
up the marketing strategy are important influences on performance.
Organizational structures and processes must be matched to the business
and marketing strategies that are developed and implemented.
Organizational design needs to be evaluated on a regular basis to assess
its adequacy and to identify necessary changes.

Strategy Implementation and Control

Marketing strategy implementation and control consist of: (1)
preparing the marketing plan and budget; (2) implementing the plan; and
(3) using the plan in managing and controlling the strategy on an ongoing
basis. The marketing plan includes details concerning targeting,
positioning, and marketing mix activities. The plan spells out what is
going to happen over the planning period, who is responsible, how much
it will cost, and the expected results (e.g., sales forecasts).
The marketing plan includes action guidelines for the activities to
be implemented, who does what, the dates and location of
implementation, and how implementation will be accomplished. Several
factors contribute to implementation effectiveness including the skills and
commitment of the people involved, organizational design, incentives,
and the effectiveness of communication within the organization and
externally.
Marketing strategy is an ongoing process of making decisions,
implementing them, and tracking their effectiveness over time. In terms
of its time requirements, strategic evaluation is far more demanding than
planning. Evaluation and control are concerned with tracking
performance and, when necessary, altering plans to keep performance on
track. Evaluation also includes looking for new opportunities and
potential threats in the future. It is the concerning link in the strategic
marketing planning process. By serving as both the last stage and the first
stage (evaluation before taking action) in the planning process, strategic
evaluation assures that strategy is an ongoing activity.