BUSINESS COMMUNICATION

DABUR INDIA LTD

SUBMITTED BY
Submitted to

Ms. Padmashree Radhaswamy SHASHANK NUTI

80303180133
Section c
 CONTENTS PAGE
NO
Introduction 2

Principles 4

Dabur over the years 4

Products 7

Logo and meaning 10

Price and Demand 10

Marketing Strategy 11

Social Media 18

Communication Strategy 18

Crisis Communication 19

Sponsorship 20

Value Creation 21

Financial Analysis 23

INITIATIVES 26

RECOMMENDATIONS 28

CONCLUSION 29

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DABUR INDIA LTD.

INTRODUCTION TO DABUR –

“Dabur is derived from the word ‘Da’ for ‘Daktar’ or ‘Doctor’ and ‘bur’ from Burman.”

Dabur India Ltd is one of India’s 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 India’s
most trusted name and the world’s 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 2008-09 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

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Business -
Dabur’s 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 shareholder’s value, by offering superior quality nature-based products, that
contributes in improving consumer’s 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 cannot 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 are committed to product the ecological balance.

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 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 fulfil 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
India’s 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 word’s "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 Burman’s take a conscious

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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 reverse merger with Vidogum
Limited, and is re-christened Dabur India Limited.

1989: Hajmola Candy is launched and captures the imagination of Children and establishes a
large market share.

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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 flavours 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 Bill of market capitalization
2008: Acquires Fem care Pharma a leading player in the women’s skin care market.

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 PRODUCTS
Given below is the product portfolio of Dabur

HAIR CARE
Hair oil –

 Dabur Amla,
 Dabur Amla Flower magic,
 Dabur Vatika coconut,
 Vatika Almond.
 Dabur Anmol
Shampoo –

 Smooth & Silky,

 Root Strengthening and Black Shine shampoo,
 Vatika Dandruff Control,
 Dabur Total Protect.
Conditioner –

 Vatika Smooth & Silky Conditioner,

 Vatika Root Strengthening Conditioner

ORAL CARE
 Dabur RED Paste,
 Meswak,
 Promise,
 Babool Mint Fresh,
 Babool
 Dabur Lal Dant Manjan

HEALTH SUPPLEMENTS –
 Ø Dabur Chyawanprash
 Ø Dabur ChyawanPrakash -Orange an Mango flavors available
 Dabur Chyawan Junior. (Chocolate-flavored)
 Dabur Honey, the purest branded Honey.
 Dabur Glucose

DIGESTIVE
 Hajmola

SKIN CARE
Gulabari

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 Gulabari Rose water
 Gulabari Face Freshener
 Gulabari Moisturising Cream
 Gulabari Moisturising Lotion
Uveda Range

 Fairness Cream
 Moisturising Face wash
 Clarifying Face wash
 2 in 1 Moisturiser
FEM

 Fem Pink Bleach

 Fem Blue Bleach
 Fem Gold Bleach
 Fem Herbal Bleach

 OXY Bleach
 SAKA Bleach for men
 Fem Hair Removing Cream
 Fem Liquid Hand Wash

FOOD PRODUCTS
 Real Active Juice
 Real Juice (12 delicious variant)
 Real Burrst
 Hommade
 Lemoneez
 Capsico Red Pepper Sauce

HOME CARE
 Surface Cleaner
 Dazzil
 SaniFresh
 Odomos (Mosquito Repellent)
 Odomos Cream
 Odomos Lotion
 Air Care
 Odonil Room Freshener
 Odonil Block
 Dish wash
 Odopic Dish wash
 Odopic Dish washing powder

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CONSUMER HEALTH - ETHICAL
 Stresscom
 Antistress immune modulator
 Trifgol
 Isabgol based natural fibre laxative.
 Broncorid
 Madhuvaani
 Lipistat
 Rheumatil gel
 Rheumatil oil
 Mensta

CONSUMER HEALTH - OTC

 Gastro-Intestinal
 Dabur Pudin Hara
 Cough & Cold
 Dabur's Honitus Cough Syrup
 Rejuvenation
 Shilajit Gold
 Women’s Health
 Dabur Active Blood Purifier
 Memory Enchancer
 Dabur Shankha Pushpi
 Medicated Oils
 Dabur Badam Oil
 Baby Care
 Dabur Lal Tail
 Dabur Janma Ghunti
 Dabur Gripe Water
 Rubs& Balms
 Dabur Balm Strong
 Dabur Balm Double Action

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 LOGO AND ITS MEANING

The image projected by new logo is that of modern lifestyle. In the logo three people are
raising their arms while conveying exultation in achievement. The broad trunk still
connects to the concept of stability of the Banyan tree and the green branches reflects
growth.

The burst of leaves and their colours in the new identity signify growth, rejuvenation and
inner strength. The form and colour of the trunk convey growth, youthfulness
and stability. Also, the trunk of the tree represents stability of the company and the multiple
branches signifies company’s growth.

The green colour in the logo represents growth, and evokes a feeling of relaxation and
healing. It is the colour of vegetation, so it reminds the customers about nature and health.

The logo represents the commitment and stability of the company along with a message
that it stands for wellness of different age groups.

PRICE AND DEMAND

PRICING STRATEGIES OF DABUR
Dabur has stepped up the pace of new product launches and is investing ad spend and
marketing. The entire product portfolio is also tweaked to include premium offerings such as
more variants under almost every category, like Dabur Vatika Hair Oil is available in 3 different
versions.

Dabur is today seen as far more proactive in the market. Dabur is now an external oriented
company. Across the whole organization the company have one definition of winning, and that

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means not just growing, but growing completely. Over the last two years, Dabur has maintained
its operating margins through judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below -:

COST
One of the most important factors to take care while pricing is the cost. costs set the floor for
pricing decisions. There are two types of cost variable cost and fixed cost. It is important that
the price should recover all costs including a fair return for undertaking the marketing effort
and risk.

COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition, it can enjoy complete freedom in fixing its price. But when there are competitors
selling the same or similar products, the pricing freedom is considerably reduced. Its price must
fall in line with the competitors. Similarly, Dabur India Limited also has many competitors.
but Dabur’s top selected competitors are: -
 Hindustan Unilever Limited
 Proctor and Gamble
 Pepsi co.
 Colgate Palmolive
 Godrej Industries
 Marico Ltd. etc.

CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the Indianized natural
and herbal products thus they made it their USP. Dabur is efficiently leading the market with
this product range, providing the customers with special products easily.

MARKETING STRATEGY

CHANNELS OF DISTRIBUTION
A channel of distribution refers to the path taken by the goods in their movement to the
customers. For instance, the toothpaste we use is manufactured in the factory of a company
Dabur. But before it reaches us it passes through the hands of many middlemen who help it
come to you in right time, at right place and in right quantity.

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Dabur’s distribution network is recognized as one of its key strengths. Its focus is not only to
enable easy access to our brands, but also to touch consumers with a three-way convergence -
of product availability, brand communication, and higher levels of brand experience.

COMPETITIVE ADVANTAGE OF DABUR

Extensive distribution channel covering Rural & urban market through their 600+ distributors
& network of 2.8 million retailers has helped Dabur to reach every nook & corner of India. Use
of IT as a strategic enabler for its business strategy & also optimizing the company’s internal
logistics and distribution processes for mega retail customers, and put metrics and incentives
in place to drive specific goals such as consistency of sales in grocery stores, improved service
to drug stores and increased sales via wholesale channels has helped dabur to have competitive
edge over other well established players like HUL, P&G, & ITC etc. It has manufacturing
facilities in India & outside nations through subsidiaries which is helping the company to use
the shared resources to emerge as a global player

DISTRIBUTION STRATEGY

Dabur is making the products available in the grocery/ pops & mums, departmental stores etc.
through 3 tier distribution system i.e. from C&F( Carried & forwarding agent) -to stockist-to
wholesalers –to Retail outlets –to final consumers. In case of supermarket stores the products
is made available to Institutions through C& F.

Dabur has a wide distribution network as against Patanjali, covering over

5.3 million retail outlets with a high penetration in both urban and rural markets. Dabur plans
to enhance its range of ayurvedic products to address emerging healthcare issues. 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.

BRAND EQUITY IN THE MARKETING STRATEGY OF DABUR-

It has a strong brand recall. It enjoys good reputation both in rural as well as in urban areas. It
follows an umbrella branding strategy. The logo of Dabur is an old banyan tree which conveys
Dabur’s heritage, commitment and stability. It also conveys that the brand stands for wellness
across age groups. The brand portfolio of Dabur consists of five power brands. Dabur is the
umbrella brand for all healthcare products such as chawanprakash and honey, vatika for herbal
beauty brand for slightly upcoming market image. Anmol is offered as Value for money
segment for personal care market. Real is the master brand for foods and Hajmola for
digestives. Similarly, there are other products within the brand tree.

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COMPETITIVE ANALYSIS IN THE MARKETING STRATEGY OF
DABUR –

Dabur cannot afford to have one single policy for competing effectively against its competitors.
It is operating in the highly competitive FMCG market which consists of big MNC’s Like
HUL, P&G, Pepsico etc. It cannot afford to go for purely offensive strategies which direct
affect the bottom line.

Moreover, the basic nature of marketplace is dynamic. So, the company cannot remain static
in following any particular strategy. At times it follows offensive strategies and at times it
adopts defensive strategies, & they got restructured and repositioned their individual brands in
2010 in order to create clear brand image.

The deciding criteria for any policy adoption is that it should be based on the companies
strength and clear sustainable competitive advantage, the geneses of which invariably lies in
the firm’s value chain and that’s what helped Dabur in the transition.

PROMOTON STRATEGY

Dabur does its major promotions through TV advertisements. In India, famous celebrities and
sportsmen endorse their products. Amitabh Bachchan is seen in ads like Dabur Chyawanprash
and Dabur Hajmola. Sonakshi Sinha endorses for Dabur Vatika. It also advertises on
newspapers. Hoardings are put up at retailers and supermarkets. This covers the marketing
mix of Dabur. Also, Dabur is pursuing an aggressive e-commerce and digital marketing
strategy to tap millennials. Increasing focus on digital marketing, online campaigns and social
media will help to pursue to access the millennials who are going to drive strong trends of
consumption.

Most of the advertisement campaigns of Dabur follows an emotional approach and

persuades customer to buy it by hitting directly to their heart.

Dabur has created the huge brand image and a vast product following by associating mega-
names like Amitabh Bachchan, Rani Mukherjee, Vivek Oberoi, Mandira Bedi etc. Dabur
invested Rs. 150 crores just on the advertising of Real “Fruit Juice” and “Real Active”. So far,
the company has been successful in this mission as the people now know the brand and ask for
its products by name.

Aiming to salute the undying spirit of fighters from Cancer, Dabur Vatika launched an
emotional campaign for this natural hair care brand. The advertisement is titled as
BraveandBeautiful and takes a peek into the life of a cancer survivor and the many odds that
the person is faced with during this trying phase of their journey. The ad film has been

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created by Linen Lintas, Delhi and produced by Film Farm Mumbai.

SALES PROMOTIONAL TOOLS OF DABUR FOODS

 Price promotions
 Coupons
 Gift with purchase
 Competitions and prizes
 Money refunds
 Point-of-sale displays
 Free samples
 Contest /demos
 Festival Sales
 Retailer coupons
 Multi-packs
 Special price for twos
 Allowances for additional shelf space
 Merchandising
 Sales contest
 Incentives
 Awards & prizes
 Premium gifts
 Sales Meetings
 Samples/product sampling
 Contests & Sweepstakes
 Exchange Offers/buyback
 Refund / Rebate
 Price / Bonus Packs

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 PROMOTIONAL SCHEMES USED FOR STOCKIESTS

 Encourage stockiest to participate in displays and sales contests.

 Higher Margins: Tries to give higher margins to stockiest so that they don’t lose
interest in the product and can earn good profits after meeting all the expenses.
 Sales Contests: Sales contest are held annually and whichever stockiest has the best
sales record a prize is given to him, like free holiday to the family etc.
 Allowances: Special allowances are given to both stockiest and stockiest sales man if
they achieve their monthly target.
 Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend
some money on the promotional schemes, like conducting a sampling activity.
 Danglers and Posters: Company gives posters and danglers to stockiest which are
further pasted and distributed by stockiest sales man.
 Training: Special Training is given to Stockiest Sales Man, a training workshop is
organized by the company for stockiest sales man so that they don’t face any problem
while placing their products and taking orders from retailers.
 Annual Gathering: All the stockiest meet under one roof at least once a year and then
the stockiest whose performance was best in term of sales is awarded.
 Fun Trip: A zone wise fully paid fun trip is organized by the company for all the
stockiest once a year.
 Gathering While Launch of New Products: All the stockiest and their sales man gather
when there is a launch of a new product. Company gives free samples & gifts to
stockiest and their sales man.
 Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
 Free danglers and posters for publicity.
 Buyback: Dabur foods have a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS

 Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.
 Dealer loader: An incentive given to induce a retailer to purchase and display the
products of dabur.

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  Trade contest: A contest to reward retailers those sells the most product of dabur foods
and after a specific period they are rewarded.
 Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales,
like danglers, posters, banners etc helps in promoting sales.
 Push money: Also known as "spiffs". An extra commission paid to retail employees to
push products. This kind of practice dabur hardly follows.
 Free samples: Dabur foods gives free samples are given to retailers so that they can try
that product if the product is new, or gives some discounts.
 Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.
 Discount Sales: Some special discounts are given to retailers from time to time, like 1%
cash discounts if payment is made in cash.
 Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.
 Higher Margins: Retailer has the highest margins and dabur foods also have the same
criteria, and retailer can further sell the dabur product to consumer at discount keeping
his margin safe.
 Allowances for additional shelf space: Company as such does not pay anything to
retailer but gives some additional benefits for giving them shelf space which is visible
to customer whenever they enter the shop.
 Merchandising Allowances: Allowances are given to Stockiest sales man for
merchandising dabur products. Whenever the Stockiest sales man goes to take orders
then he also merchandises dabur products.
 Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free
with that.
 Trade Allowance: Dabur comes with different types of trade discounts from time to
time, like sometime price discounts, sometimes gifts etc.
 Free goods: Dabur gives free goods on the purchase of specific number of goods.
 Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment
in cash at the time of purchase.
 P/roduct sampling: Dabur organizes sampling activities for its products which are new,
these activities are generally at the place where footfall is very high.
 Displays: Dabur tries to give special displays to the retailers, so that they can display
their products on that.

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  Point-of-Purchase Material: POP material is available in the form of stickers, banners,
displays, posters, signs, streamers, etc. put up inside and outside the stores & other
possible purchase locations.

PROMOTIONAL SCHEMES USED FOR CONSUMERS

 Price deal: A temporary reduction in the price is given to consumer during some
festival session by dabur foods.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: Dabur foods gives coupons during different sampling activities to consumers
and it have become a standard mechanism for sales promotions.
 Loss leader: Dabur foods temporarily reduce the price of its popular product in order
to stimulate other profitable sales.
 On-shelf coupons: Coupons are present at the shelf where the product is available.
 Rebates: Consumers are offered money back, rebate at different point of time.
 Contests/sweepstakes/games: if a customer wins some game or contest at the time of
sampling activities then they are given a discount coupon of products of dabur foods.
 Point-of-sale displays: Displays helps the consumer easily recognize their products,
dabur keeps a special check on the displays and merchandising of dabur products.
 Sampling Activities: Dabur organizes different sampling actives at different retail
outlets.
 Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
 Money Refunds: Customer can claim for refund of money if they face some problem
with the product
 Contest /demos: There are different contests where customers play games and win
contests.
 Festival Sales: Dabur foods come out with some special offers during festival seasons
like buy one get one free.
 Multi-packs: Dabur foods has some products in multiple packaging which are
comparatively priced lower to the products sold in a single pack.
 Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making
it easier for customers to know about product line and choose the best out of that.

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  Customer feedback: dabur foods consider its customer most important and in case of
any complaint by customer the foods department will leave all its important work and
will contact the customer.
 Contact points: Customer can contact dabur foods by writing the mail or letter on the
addresses given at the back of dabur products, or even they can call and visit the dabur
web site.

SOCIAL MEDIA
Dabur is looking to ride on 'digital revolution' pursuing an aggressive e-commerce and digital
marketing strategy to tap millennials, who are expected to be major consumers going forward.

Besides, the Burman family-promoted firm is seeking to tap the young consumers who are
increasingly going back to their roots and taking pride in tradition for its Ayurveda and
ayurvedic products.

Internet is becoming a key channel for gathering information, arriving at purchase decisions
and transacting online with more and more consumers using the medium. Recognising this as
an opportunity, Dabur is pursuing an aggressive e-commerce and digital marketing strategy
to promote, market and sell its products online. They have their own portal named as
Mediclub for the ayurvedic doctors.

Some of the social handles of Dabur

are:

Facebook:
https://www.facebook.com/DaburIndia
Twitter: https://twitter.com/DaburIndia
LinkedIn: https://www.linkedin.com/company/dabur-india-limited/
YouTube: https://www.youtube.com/user/DaburIndiaLtd

COMMUNICATION STRATEGY
Strategizing to communicate the right message across internal and external audience is an
important function of corporate communications. Dabur seeks its employees to follow the
culture of trust, innovation and creativity. They follow an open communication policy with
their employees and use various interactive forums to reach out to their workforce in an open
and transparent manner. They are committed to being a responsible employer, attracting and
nurturing talent from diverse backgrounds, promoting collaborative working and holistic
well- being at work.

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  Total Employees-7144
 Employees in India-4378
 Women Empoyees-430
 Total Nationalities working under Dabur-23

Dabur believes in maintaining an open, honest and clear communication with

their stakeholders. They have mapped their internal and external stakeholders in a structured
way. Dabur maintains consistent dialogue and keep up the transparency among important
stakeholders by way of communications across media including website, intranet, through
initiatives like school visits, interactive sessions and participations in different forums, and
regular interaction with our key stakeholders.

The role and challenge of corporate communications is to consistently maintain and

strengthen the image of Dabur as a vibrant, dynamic and trustworthy brand in these two
distinct categories, i.e., FMCG and Pharma.

Dabur follows vertical, horizontal as well as cross functional channel of communication

within the organisation. It is done so as to speed up internal communication as well
increase efficiency in the organisation.

This inculcates a feeling of team work and independence in the minds of employees and
motivates them to move towards the gold in the minds of the employees and motivating them
to move towards excellence.

CRISIS COMMUNICATION
Crisis is an integral part of the lifecycle of any company. Dabur’s consistent dialogue,
transparency and accessibility towards answering and facing most sensitive and difficult
questions on various developments have saved Dabur and helped it keep away crisis
situations. Corporate Communications would play an important role in brand building at the
corporate level.

Corporate Communications is an integral part of the think tank which, when involved in the
drawing board stage, can tactfully avert crisis situations and/or take proactive preventive
steps. However, if corporate communications are only used in crisis situations, there is a high
degree that the effort to contain the crisis would fail.

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 SPONSORSHIP

Dabur has been constantly sponsoring

many national as well as international events so
as to enhance its brand building and also to
contribute its bit towards the society.
Sponsorships play an important role. With the
aim of promoting their skin brand, “FEM”
became the title sponsor for Miss North India
princess 2014. Also, one of its product named
Amla was the title sponsor for the same event
in 2018.
Dabur is continuously engaging in
sponsorship activities so as to expand its
geographical reach and fight its competition
with other FMCG brands offering same
product.

Through sponsorship, they are able to reach the

right set of target customers which helps in
achieving efficiency in revenue generation.

Apart from that, being fitness and healthy well-

being their mission statement, it tries to achieve
the same by collaborating itself along with
many events. On the occasion of
International Yoga Day, it organised a series of
Yoga Camps and free Health Camps across the
country to popularise Yoga and Ayurveda and
encourage the youth to embrace these ancient
Indian traditions. The Arogya camps are
being organised jointly by Dabur and National
Ayurveda Students & Youth Association
(NASYA).

In December 2017, Dabur Shilajit Gold,

the leading male rejuvenation brand from the
House of Dabur, today announced its
association with star Indian Boxer Virender
Singh for the Rajasthan Rumble
Championship Fight in Jaipur. Dabur Shilajit
Gold has been signed as the presenting

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 sponsor for the bout where Virender Singh will
be defending his World Boxing
Organization (WBO) Oriental and Asia Pacific
Super middleweight titles in Jaipur. Along with
it, Dabur also became the title sponsor for Pro-
Wrestling League.

All these events had fitness and healthy well-being in common. Dabur along with promoting
its brand spread a message for fitness. This clearly shows no matter how big a company is, it
has to back itself up with these sponsorships and collaborative events so as to fight against
the increasing competition in the industry.

VALUE CREATION
Dabur acknowledge that the real value of any organization is determined by the value it
delivers to its stakeholders. Across all our businesses and operations, it has been
working towards achieving profitable growth in an ethical, environmentally friendly
and socially responsible manner. In this section, they have cover their approach to
value creation across the six capitals – Financial, Manufactured, Intellectual, Human,
Social & Relationship capital and Natural. The following chart describes what is
encompassed in each capital.

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 Recent years have seen the re-emergence of Ayurveda with a growing population of Indians
embracing traditional recipes and natural products for meeting their day-today health and
personal care needs. This consumer trend continues to gain traction offering numerous
opportunities for growth and expansion. As the country’s leading Science based Ayurveda
expert, Dabur has been at the forefront of driving innovation to make this traditional Indian
knowledge available in a form that appeals to the modern consumer. I am pleased to inform
you that we are continuing on this path with renewed vigor and commitment and will
continue to build a strong and contemporary portfolio of Ayurvedic products both in
consumer health and personal care categories.

Dabur’s Q2FY19 category-wise growth was well diversified (except foods business). They
continued to reiterate that healthy performing categories (i.e health supplements, hair care,
home care, digestives and skin care are getting firmer with a growth rate of 2.3%, 11.1%,
10.9%, 10.8% and 11.9% y-o-y, respectively. Beverages segment is soft (up 1.5% y-o-y
owing to push back of festive season). Oral care though grew 3.9% y-o-y, it needs to be seen
on a base of 22.8%, thus registering 13.4% two-years’ average growth.

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 FINANCIAL ANALYSIS

The financial year 2017-18 demonstrated the strength of Dabur’s strategy of being the
country’s leading Science-based Ayurveda expert, which helped them deliver greater value to
all their stakeholders. The year saw many tax reforms, the biggest being GST which impacted
the revenue of the industry as a whole. It led to a temporary slowdown in the growth momentum
of the firm. However, these jitters were short-lived as both demand and the economy posted a
recovery in the months that followed the GST roll-out. Adverse macroeconomic conditions and
currency volatility in some of our international markets also posed additional challenges during
the year.

The year saw many achievements in terms of financial aspects. Some of these were:

 Dabur Anmol Coconut Oil joined the 500 crore turnover mark coveted list this year
 Dabur Red Paste cross 500 crore turnover mark, making it the fourth Dabur brand to
reach this mark after Dabur Amla, Vatika and Real
 Dabur Red, Real and Dabur Amla featured in the Most Trusted Brands survey reflecting
the trust of millions of consumers
 It launched several new products based on the knowledge of Ayurveda to address a
variety of Health and Personal Care issues

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SHARE PRICE

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 Seeing the increasing trend in the share price and growing revenue graph, it is expected that
its share might rise in the coming years. Dabur India Ltd can be a profitable investment
option. Stock price at Dabur prognosis for 2024-03-10 is 853.975 INR. With a 5-year
investment, the revenue is expected to be around +96%. Your current $100 investment may
be up to $196 in 2024. Dabur is a profitable investment since it is successfully working to
maintain itself as a global leader in the FMCG industry.

However, it can be seen that the share price declined in the year 2016-17. This was
seen because of entry of Patanjali into the industry. However, Dabur’s move to back itself up
with the old Ayurvedic products helped them to survive this competition and maintain its
share in the market. From then, the organisation is finding new measures so as to provide the
best of products to its consumers and thus enjoys a positive share price in the index.

MERGERS AND ACQUISITIONS

Mergers and Acquisitions are an integral part of any business. M&A are done because of
many reasons:
 pursuit of synergy,
 diversification,
 growth,
 competitive advantage,
 or to influence the supply chain.

Dabur with an urge to expand and support small companies, has undergone various mergers
with other companies. Some of them are:

Acquired Company Acquiring Date

Namaste Laboratories Jan 3, 2011
Ajanta Pharma May 4, 2011
Discaria Trading July 19,2016
Atlanta Body and Health Products May 18, 2017
D&A Cosmetics May18, 2007

The mergers and acquisitions have helped Dabur not only in expansion but in diversification
too. The acquisition with Ajanta Pharma helped them to target new set of customers which
they were not able to do target new set of customers.

Dabur India Ltd has acquired its vendor Northern Aromatics Ltd. which is an existing vendor
for Dabur that manufactures glucose, shampoos, and Shilajit for Dabur. Dabur India Ltd by
acquiring Northern Aromatics Ltd (NAL) has been in a very profitable situation as it is
always easy to acquire an already working manufacturing unit than to build a separate
one altogether. And here NAL already manufactured some products for them.

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 INITIATIVES
Following its plans, Dabur made significant changes in the time period 2002-2007.

BRAND REJUVENATION

With youth forming a major population of India, Dabur decided to revamp its brand identity.
Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender
Sehwag for endorsements. New packaging and advertising campaign saw the sales of
Chyawanprash grow by 8.5 per cent.
The old Banyan tree was replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and
rejuvenation, twin colours reflecting perfect combination of stability and freshness, the trunk
represented three people raising their hands in joy, the broad trunk symbolized stability,
multiple branches were chosen to convey growth, and warmth and energy were displayed
through the soft orange colour. ‘Celebrating Life’ was chosen as a new tag that completely
summarized the whole essence.

The Chairman in his annual report message said, “If I were to summarize your Company’s
performance during the year under review (2004-2005), it would be ‘Pursuit of Profitable
Growth’”.

HR INITIAVES

The culture at Dabur gives full autonomy to its employees. Various training and development
programs like Young Manager Development Program, Prayas, Leading and Facilitating
Performance, Campus to Corpora and a Balanced scorecard approach to performance
evaluation, helps employees realize their potential.

Recently, Dabur has adopted an innovative HR program of offering ESOPs to new engineering
and management trainees at the time of joining. Dabur gave Bonus to its employees after 12
years. This boosted the employee morale further.

Dabur was listed as a “Great Place to Work”, in a survey conducted by Grow Talent& Company
and Great Place to Work Institute, USA. Dabur was listed as the 10th “Great Place to Work”.
The results were published in Business World .

DABUR’S SOCIAL INITIATIVES

Sustainable Development Society (Sundesh)

Sundesh is a non – profit organization engaged in carrying out welfare activities with the aim
of improving the quality of life of the people in rural areas. Mr. Pradip Burman is the Founder
Chairman. Sundesh is majorly involved in Health Care, Education and other socio-economic
activities.

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Sundesh started with Health Care and today its activities have diversified into various other
projects like education, veterinary services and income generation activities. These projects
were implemented after the need assessment survey of the rural community. The enthusiastic
volunteers support the society in implementing various projects in the rural areas through their
consistent efforts. Sundesh is executing various integrated rural development projects in the
villages of Ghaziabad and Gautam Budh Nagar Districts (Uttar Pradesh) in India.
SUNDESH is associated with the following activities

 Education
 Health Care
 Self Help Groups (Micro Credit Society)
 Income Generation
 Veterinary Services
 IT initiatives

Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It also
implemented a country wide new WAN Infrastructure for running centralized ERP system.
Further it set up new Data Center at KCO Head Office.

 Promoting hygiene and health - in collaboration with the Chunni Lal Medical Trust,
it operates in 12 adopted villages providing medicare services and conducting mass
awareness drives.
 Promoting formal and non-formal education - For children who have dropped out
of school as well as ones who have never been to school, Sundesh provides the
assistance and opportunity to take up formal education. Sundesh also works for
promotion of adult literacy and has opened 2 teaching centres.
 Promoting income generating activities - To help communities find means
of livelihood that suit their skills, Sundesh has established vocational training facilities
for cutting and tailoring, bee-keeping, mushroom farming and food preservation.
 Promoting self-reliance - Sundesh encourage people to form cooperatives and self-
 help groups that can ultimately take care of the community’s needs. There are
already
 25 Self-help groups of economically weak families and groups formed by
members of lower and middle-income families.

SUPPLY CHAIN INITIATIVES

Dabur has undertaken e-procurement in a big way. Dabur India procured Rs.210 crore of raw
materials through e-sourcing — or almost 50 per cent of total raw material expenditure — and,
in the process, considerably controlled raw material costs which were on a rise.

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For better production and operation management, Dabur included automation, debottlenecking,
Kaizen and wastage control. It set up production units in locations providing tax holidays to
reduce cost and improve efficiency.

OTHER IMPORTANT CHANGES

Dabur made its largest acquisition by taking over Balsara hygiene and home products business.
Dabur bought the entire promoters’ stake of three Balsara companies through an all-cash deal
of Rs.140 crore. This was done to ensure Dabur’s presence in all price segments in the herbal
oral care market. Moreover, it allowed Dabur’s entry in the household care segment, where
Balsara has well-established brands.
Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player

Dabur estimated that the southern region was contributing as low as 7% to its overall growth.
For this purpose, the south team adopted a three-phase approach. First, it focused on point of
sale promotions and stocking practices. Second phase included better marketing efforts in terms
of advertising and packaging.

RECOMMENDATIONS:
 Focus on growing core brands across categories.
 Reaching out to new geographies areas.
 Improve operational efficiencies by leveraging technology.
 Be the preferred company to meet the health and personal grooming needs of
our target consumers with safe, efficacious, natural solutions by synthesizing
the deep knowledge of ayurveda and herbs with modern science.
 Provide consumers with innovative products within easy reach.
 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could
start a venture called Vatika hair care centre which would provide total hair care
solutions. It could have hair care experts to solve hair problems.Services could
include dandruff treatment, straightening of hair, treatment for split ends,etc.
 Position Dabur Chyawanprash as not more of a medicine but as something
which is necessary for health.
 More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an
initiative to occupy shelf space.

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 CONCLUSION

It was really a very great experience to study this FMCG Company “Dabur India Limited”.
After going into all its aspects i.e. its marketing strategies, policies, pricing strategies etc. we
can conclude that the company is excellent on all the fronts. The company’s different projects
like Sundesh and its social initiatives in Nepal etc. indicates that the company is also loyal
towards the society, and all such social responsibilities are very necessary to build a strong
customer base and brand loyalty

Dabur follows an intensive marketing strategy that starts with innovation before the product
actually comes into physical existence and follows up with customer feedback after they have
made up the purchases on their web portals. From 2014, with the aim of targeting the
millennials they have started using digital media in order to reach the right type of customers
and expand their presence globally.

They have wide distribution channel so as to ease the exchange of goods between all the agents
as well as producers and consumers of goods. They have established its distributors all-round
the country as a part of effective distribution strategy. Most of the products offered by it are
medium ranged products however they do have some premium range products with upper
middle class as the target audience.

Coming to the promotional strategy, they spend huge amounts on advertisement of their
product through print, visual and digital media. Also, they follow an emotional appeal while
designing their advertisements. They have a huge follower base on all its Social Media pages
and continuously provides productive information about its products and fitness in general.
Dabur works with a mission of providing fitness and excellence by way of its products. And
to achieve this motive, they have indulged in many events related to fitness and a healthy well-
being.

The financial aspect of the Company shows a positive graph when it comes to revenue
generation and profit earned. Despite of Competition with Patanjali and other FMCG
companies. Their constant innovation and diversification help the company to stabilise their
profit and revenue generation and aims to minimise the additional expenditures.
Through its comprehensive range of products, it touches the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped them develop a bond of trust
with our consumers. That guarantees us the best in all products carrying the Dabur name.

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