DABUR MICRO AND MACRO ENVIRONMENT
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Dabur is the fourth largest FMCG company in India with annual revenues of over INR 7,800 crores. It is India's most trusted name and the world's largest Ayurvedic medicine manufacturer. Dabur has a presence in over 60 countries and 17 manufacturing plants in India. It has a wide distribution network of over 4,500 distributors and 2.5 million retail outlets. Dabur's major competitors include HUL, Himalaya, Colgate, Godrej Consumer, Marico, P&G, Unilever, and Gillette. The company responds to changes in its environment by expanding into new product categories, increasing R&D, using innovations to separate combined product markets, and
DABUR MICRO AND MACRO ENVIRONMENT
- 1. DABUR celebrate life Dabur is the fourth largest Fast Moving Consumer Goods company in India with consolidated Revenues of over INR 7,800 Crores and Market Capitalization of over INR 46,600 Crore Building on a legacy of over 130 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic medicine & related products manufacturer and Natural Health Care Company.
- 2. Micro Environment The Company o Established in 1884 : 125 Years of Trust& Excellence. o Among top 4 FMCG companies in India. o World’s largestin Ayurveda and natural healthcare. o Revenue of Rs. 33.9 billion and profits of Rs. 5billion in FY2009-10 o Strong brand equity o Dabur is a household brand. o Vatika and Real are Superbrands. o Hajmola , Real & Dabur ranked among India’s MostAdmired Brands. o 10 Brands with sales of over Rs. 1 billion each. o Wide distribution network covering 2.8 million retailers across the country. o 17 world class manufacturing plants catering to needs of diverse markets. o Strong overseas presence with 18% contribution to consolidated Suppliers Over 300 diverseproducts in the FMCG, Healthcare and Ayurveda segments, Dabur has a huge global network of suppliers and vendors. Purchasing roughly 7,000 items with an annual procurementbill of over Rs 500 crore. The Central Planning and ProcurementDivision (CPPD) is responsiblefor purchase operations at Dabur, acting in coordination with the Production and Marketing Divisions. Marketing Intermediaries o 4500 Distributors o Reaching 2,500,000 retailoutlets DISTRIBUTION NETWORK Factory C&F agent Wholesalers Retailers consumer
- 3. Competitors o Hul o Hmalaya o Colgate o Godrej consumer o Marico o P and g o Uniliver o Gillette india o Godrej ind o Jyothy labs
- 4. MACRO ENVIRONMENT DEMOGRAPHIC FORCES Dabur India Ltd's manufacturing activities spanning various consumer products categories are carried out in 17 factories spread across India and abroad. Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal). Dabur has been in the forefrontof popularising this alternative way of life, marketing its products in more than 60 countries all over the world. Naturalforces At Dabur, environmentand nature is the lifeline of their business Intensivefocus on : Conservation of Energy (13.8% reduction in the Company’s energy bill in the 2008-09) Technology Absorption Health ,Safety and EnvironmentProtection TECHNOLOGICAL FORCES ITInitiatives: Migration fromBaan and Mfg ERP Systems to centralized SAP ERP systemfrom1stApril 2006 for all business units. Implementation of a country widenew WAN Infrastructurefor running centralized ERP system. Setting up of new Data Centre at KCO Head Office. Extension of Reach Systemto distributors for capturing Secondary Sales Data. Roll out of ITservices to new plants and CFAs POLITICAL FORCES Dabur never funded any governmentor any political party SOCIO-CORPORATERESPONSIBILITY Establishment of the Sustainable DevelopmentSociety, or Sundesh, in 1993 - a non- profit organization to promote research and welfare activities in ruralareas. Promoting health and hygiene amongstthe underprivileged through the Chunni Lal Medical Trust.
- 5. Organizing the Plant for Life programme for schoolchildren - to create environmental awareness amongstyoung minds. CULTURAL FORCES For over 125 years, Dabur has mastered the art of producing Ayurvedic preparations, blending traditional knowledgeof drug manufacturing with scientific update. Redefined the Ayurvedic marketand healthcare promotion activities involving leading Ayurvedic practitioners across theglobe. More than 350 Shastriya (Classical) Ayurvedic preparations, which forman important part of every Ayurvedic practitioner’s daily practice. howDaburhasrespondedtothechangesinitsenvironmentfactors PESTLEfactorsandeffectsonDabur Taxation policy Production policy GovernmentIntervention Acts and Regulations Effects & Strategies Imposition of VAT Helping hand to the players in organized sector Dabur saw this opportunity Itexpands its harecare products into coconut oil Captured unorganized marketof coconutoil. Economicfactors Inflation Employment Disposalincome Effects & Strategies Better policies and speculation attracted the foreign investment in India Increasein Disposableincome Increasein purchasing power
- 6. Increasein demand of Good and Quality products Dabur Foods limited merged with Dabur India limited IncreaseR&D, better product, better revenue SocialFactors Demographics Distribution of income Lifestyle changes levels of Education Effects & Strategies Use of Toothpasteand Shampoos wereless in india Niche marketto invest Dabur invested in Oralcare and Hair care Dabur spread awareness aboutoralcare and hair care Came up with products like PromiseMeshwak baboolin toothpaste and Vatika in shampoo Technologicalfactor Innovations Speed of change in technology Rates of obsolescence Information technology Effects and Strategies Skin care was a combined productmarket consisting hair uprooting cream, hair conditioners etc. Innovations, Separated thecombined market into specialized skin care and hair care products Results, better quality products, innovations in products, new products. EnvironmentalFactors Pollution Waste Disposal Carbon Footprints Usage of Resources Effects Company has to take care about the pollution, proper utilization of resources and proper disposalof the waste products
- 7. Since Dabur deals with the natural products the responsibility of optimum utilization of the naturalresources is high.