0.

Dabur: A Strategic Management Case Study-

Decoding Dabur’s problems and furnishing solutions

Dabur ( Dabur India Ltd.) is one of India’s largest Ayurvedic medicine and natural
consumer products manufacturer, founded in the year 1884 by S K Burman, in
Kolkata.

This case study on Dabur focuses on the problems in business that Dabur is facing.
For the past two decades, every time the management of Dabur India Ltd met to
finalize a new product, it ended up also debating whether to stick to Ayurveda or to
focus on non-Ayurvedic products. This case study aims to discuss the key problems
and issues faced by Dabur, namely, threat posed by Patanjali, peer pressure and rising
competition, distressed economy, slow rural markets and international woes.

After SWOT analysis of Dabur it was found that some of its key weaknesses are -
Lack of awareness of products by customers because of which it is percieved as an
old-school brand which is not Gen Y friendly, uneven profitability accross product
lines and low categorical penetration in rural market.

One of the main and most recent challenges faced by Dabur is the entry of Patanjali
into the market. Patanjali Ayurveda Ltd, has launched a range of fast-moving
consumer goods (FMCG) based on Ayurveda like honey which is directly affecting
the sales figures of Dabur. HUL, Colgate, Emami, Himalaya and local units of MNCs
also pose as major competitors of Dabur in this market, apart from Patanjali.

Distressed economy and slow growth rate are growing concerns of Dabur, as
consumer goods consumption has dipped. Dabur is also facing a lot of hurdles in the
rural market as well as the international markets which it needs to tackle in time to
avoid the traps of inertia, myopia, frenzy, dilution and tunnelled vision.
1. INTRODUCTION

Business problems are current or long term challenges and issues faced by a business.
Every business faces problems but what is required is the timely formulation and
implementation of appropriate strategies to continue on the growth path to success.

The key problems and issues in this case study are as follows -

Threat posed by Patanjali – Patanjali Ayurved started as a small pharmacy in 1997.

It was formally founded in the year 2005. Its main business includes FMCG and
pharma. Patanjali recorded sales of Rs8,135 cr for fiscal year 2018 and has over 38
factories and makes more than 1,000 products. It poses a serious threat to Dabur in
the Ayurveda sector.

Peer Pressure - Dabur India isn’t under pressure from Patanjali alone. HUL, Colgate,
Emami, Himalaya and local units of MNCs also pose serious significant competition
to Dabur as they too exploit the Herbal and Ayurveda market.

Distressed economy - Besides increasing competition, slow growth is a serious

worry for Dabur too. Radical downshift in overall consumption of consumer goods is
of concern to Dabur.

Slow rural markets – A large chunk of Dabur’s domestic revenue comes from rural
markets, but due to stress in the consumer goods sector, this source of revenue for
Dabur has been adversely affected.

International woes – Dabur aims to be an MNC from India but there are a lot of
challenges faced by Dabur in the international markets like Middle East and North
Africa among others due to turbulence in economical and political scenarios.

Thesis statement -

Revitalisation and Restructuring can help Dabur overcome the roadblocks ahead of it
and use its strengths and core competency in Ayurveda to convert the threats of
growing competition and slow markets into oppportunities for sustainable growth.
2. BACKGROUND

Dabur (derived from Daktar Burman) is one of India's largest Ayurvedic medicine &
natural consumer products manufacturer. Dabur belongs to the consumer goods
industry and is a public firm traded in both BSE and NSE.

In the mid-1880s, an Ayurvedic practitioner Dr. S.K. Burman concocted medicines

for diseases like Cholera and Malaria. He went on to set up Dabur India Ltd in 1884
to mass-produce his Ayurvedic formulations. His son, C.L. Burman, set up Dabur's
first R&D unit. The current chairman, Dr. Anand Burman and vice-chairman Amit
Burman, are part of the fifth generation of the Burman family. The Burmans were
among the first business families in India to separate ownership from management
when they handed over the management of the company to professionals in 1998.

Dabur, built on a legacy of over 133 years, is one of India’s leading FMCG
companies with revenues of over Rs. 7,680 Crore and Market Capitalisation of over
Rs. 48,800 Crore. Dabur is 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, Vatika, Hajmola, Real and Fem.
Dabur’s products are also available in over 120 countries across the globe in Europe,
Africa, US, Russia, Middle East among others.

The decision to launch non-Ayurvedic products came 113 years after S.K. Burman set
up Dabur in 1884 in Kolkata. In 1997, the home-grown Ayurvedic products maker
launched Project STARS (Strive to Achieve Record Successes) to accelerate growth
through diversification. It launched Real, a fruit-based beverage. Ayurveda cannot
take Dabur far, the Burmans were convinced. So, the family that popularized
Ayurveda in India moved away from its core strength.

Over the next 19 years, the company’s focus intensified so much on non-Ayurveda
products that just the food business accounted for about 11% of its Rs8,436 crore
revenue in the year to March 2016 and 18% of domestic sales came from foods. Not
just food, it launched a number of non-Ayurvedic products in segments like personal
care and home care as well. Overall, about 40% of its sales came from non-Ayurvedic
products in the year to March 2016. The wheel of change was set for a spin.

But with increasing competition and entry of players like Patanjali into the Ayurveda
market, the Burmans realized that Dabur needs to get back to basics and return to its
core—Ayurveda.

There were reasons why Dabur was unsure about sticking to only Ayurvedic
products. The Burmans wanted to build an empire outside India—across the Middle
East, Africa, Europe, North America and South Asia, which together accounts for
32% of Dabur’s consolidated sales at present. Across all these countries, Ayurveda
was never a popular or saleable concept. So the shift was only natural.
Although Dabur was probably the only Indian company that was selling products
made of Ayurvedic formulations nationwide, it was unsure about how far it could take
Ayurveda.

PRODUCT PORTFOLIO

Product line Products

Health Care • Dietary Health Supplements
• Natural Health Products
• Food Supplements
• Digestive
• OTC-Health care
• Ayurveda Medicines
• Traditional Herbal Medicinal products

Hair Care • Hair Oils: Amla, Almond, Jasmine, Coconut.

• Shampoo: Anti-Dandruff, Hair Fall Control,
Smooth & Shine.
• Conditioner
• Hair Mask
• Hair Gel, Wax & Cream

Oral Care • Toothpaste

• Mouthwash
• Denture Adhesive

Skin Care • Facial Bleaches and Face Fresheners

• Face Pack and Face Wash
• Face Scrub
• Moisturizer Cream & Lotion
• Body Wash
• Hair Removing cream

Home Care • Mosquito Repellent

• Air Freshener
• Liquid Soap
• Wet Wipes

Food • Packed juices

The most important issues in this case study highlight the problems faced by Dabur -

• Threat posed by Patanjali – Patanjali has a strong group of loyal followers and
is adopting aggresive marketing strategies in this market which was earlier
dominated by Dabur.
• Peer Pressure – Seeing Patanjali’s growth in this sector, other firms have also
started taking required steps to compete for the market share. Dabur being
percieved as an old-school company is not helping its case.
• Distressed economy – The new government is focussed on industry-led growth
because of which the consumer market is suffering, thus affecting Dabur’s
sales.
• Slow rural markets – Rural markets are tough to handle given their
apprehensive outlook towards spending on urbanised goods, they need to be
handled using separate strategies.
• International woes – Though international markets have a high growth
potential, there are too many hurdles too like huge taxes on import and
changing geo-political scenarios.

Dabur needs restucturing as -

• Its image is that of an Ayurvedic company so its non-ayurvedic products are
neglected sometimes.
• Dabur is more relevant to the 35-plus age group hence it is viewed as an old-
school brand which is not Gen Y friendly, i.e., youth oriented, so it is losing
potential customers.
• It has diversified into too many product ranges and is facing a drop in sales and
profit.
 BCG matrix for Dabur

Stars Question Marks

Real fruit juice Odomos

Market growth rate

Active fruit juice Sanifresh

High

Dabur Red tooth paste Oxylife facial

Dabur honey

Cash Cows Dogs

Low

Chyawanprash Dabur Gulabari

Hajmola Burst fruit juice
Amla Dabur Lal dant manjan
Vatika

High Low
Relative Market share

Demonstration of research -

I have identified the problems in this case study by using tools like SWOT analysis,
Porter’s 5 forces and the BCG matrix for Dabur. I have researched the problems
further by studying the financial reports of Dabur, the information present on Dabur’s
official website (www.dabur.com) and going through business articles published by
Economic Times, Mint, Forbes and Business Line on problems faced by Dabur,
including interviews given by Sunil Duggal, ex-CEO of Dabur, Mohit Malhotra,
current CEO of Dabur and Lalit Malik, CFO of Dabur. Some of the important and
relevant data I have collected as follows -
Strategies adopted by Dabur-

• Dabur has outsourced its non-core businesses, entered new categories (using
Diversification Strategy), targetted rural India and has also expanded overseas.
• Dabur uses ASTRA to boost rural sales ( Advanced Sales Training for Retail
Ascendance).
• Dabur India is strengthening online presence through partnership with large e-
retailers like Snapdeal and its own portals.
• Dabur is pursuing an aggressive e-commerce and digital marketing strategy to
promote, market and sell its products online.
• In 2016-17 fiscal, Dabur had spent Rs 646 crore on advertisement and
publicity of its brands across various media formats such as television, radio,
print and digital, among others and hence is focusing on Promotion Strategy.
3. EVALUATION OF THE CASE

Let us now take a deeper view of the various pieces of this case study and
discuss what is working and/or not working for Dabur-

1. Dabur is facing threat of new entrants like Patanjali which is eating

up its market share

Yoga-guru-turned-businessman Baba Ramdev under his company Patanjali Ayurveda

Ltd, has launched a range of fast-moving consumer goods (FMCG) based on
Ayurveda. In recent months, ever since Patanjali started aggressive advertising on
television, it has challenged companies such as Hindustan Unilever Ltd (HUL),
Colgate-Palmolive (India) Ltd, Nestlé India Ltd that compete in India’s Rs3.2 trillion-
a-year consumer packaged goods market. Going by Ramdev’s projections, Patanjali
will cross Rs10,000 crore in revenue in fiscal year 2017—from Rs 5,000 crore in
FY16. This is more than what brokerage firm Morgan Stanley India Co. Pvt Ltd
projected as Dabur India’s revenue in FY17—Rs 9,630 crore. Besides, Dabur started
feeling the pinch as sales of its honey (a product that is estimated to have more than
65% market share) started declining earlier this year as people bought Patanjali’s
cheaper variety.

Ramdev said his rivalry was with multinational companies (MNCs) not the home
grown ones like Dabur but a Patanjali spokesperson said that even if Dabur is an
Indian company, it has no right to “loot" people. So there is a direct clash between
Dabur and Patanjali.

To counter Patanjali, Dabur has effectively started using promotional strategies and
ad campaigns using brand ambassadors like Priyanka Chopra, but needs to up its
game and use more aggressive marketing strategies to remain far ahead of Patanjali.

2. Dabur is facing increased competition from existing players in the market

Competition in the domestic market in the last few years has increased as almost
every packaged goods company—home-grown and multinational—has rolled out
products that are herbal or natural. The trend has been triggered largely by Patanjali’s
success and the opportunity the category offers for premiumization of products. In
recent years, HUL and Colgate, local units of MNCs, have ramped up their portfolios
with premium Ayurvedic products in key brands. Home-grown Emami Ltd and
Himalaya Drug Co., which have been selling herbal or Ayurvedic products for long,
have gained from their traditional herbal positioning. These companies are extending
brands into new and emerging segments to improve profitability. And all of them are
trying to expand. While Emami bought Ayurvedic hair oil and shampoo brand Kesh
King from SBS Biotech Ltd in June 2015 for Rs1,651 crore, HUL acquired Kerala-
based Indulekha hair oil brand for Rs330 crore earlier this year to boost its presence
in Ayurvedic space.
Interestingly, Dabur was the first to tap the hair oil space with a herbal product Dabur
Amla hair oil back in 1940 and expanded its hair care portfolio in early 1990s with
Vatika brand. But it failed to leverage the advantage of an early entrant.

Dabur has a first mover advantage and has used pioneering strategy in the past which
has worked for Dabur but it can’t completely bank on its legacy to retain its position
as the market leader for long.

3. Dabur is facing slow growth due to a distressed economy

In April-June 2016 quarter, the company’s sales grew just 1.2%. In the quarter ended
March 2016, it reported a 4% increase in volume in the domestic market compared to
a 7% growth in the preceding quarter. Post results, the management had painted a
cautious outlook for FY17. It expects things to get better only in the second half of
FY17.
The key challenge Dabur is facing today is that there’s a radical downward shift in
the overall consumption of consumer goods because of tapering of the stimulus that
was provided by the earlier government and has not been taken forward by the
current government. The current government is following an investment-led growth
and not consumption-led growth that has triggered a consumption stress, primarily in
rural market, which was the prime driver of growth between 2008 and 2014.

Dabur has a strong brand recall and is following umbrella branding strategy due to
strong brand equity, which is working well for it.

4. There is a need to revive the rural market

About 45% of Dabur India’s domestic revenue comes from rural markets and, as
mentioned above, consumption in rural markets has not been growing for the last few
years. Naturally, the company not only stopped expanding its distribution network in
rural areas, in the last one year it also stepped out of certain markets to minimize its
risk. Dabur never expected this sharp a decline in consumption knowing it will come
down, but not from 12% to 3-4%.

Dabur has been using regional branding strategy to capture rural markets by
developing affordability, availability, awareness and acceptance and is benefitting
from it but needs to focus on distribution channels as well.

5. Dabur is facing International woes

About 32% of Dabur’s consolidated revenue comes from international markets by

selling personal care products across the Middle East, Africa, Europe, North America
and South Asia.
The Middle East is the biggest market that accounts for 33% of the company’s
international sales, followed by Africa (22%), Americas (17%), Asian markets
excluding India (17%) and Europe (11%).

But companies, including Dabur, have been facing challenges in these markets
mainly due to political uncertainties, currency fluctuations and falling oil prices.
Low oil prices have led to a downward pressure on oil producing economies with
governments adopting austerity measures, curbing spending on major projects and
reducing subsidies which has eroded disposable incomes. Most of the markets have
witnessed sharp depreciation in their currencies which has led to lower value
realizations in our business. Geo-political turmoil in MENA (Middle East and North
Africa) has, to a large extent, impacted markets such as Syria, Libya, Yemen, Iraq and
others where there has been a reduction in consumption due to large scale
displacement of human population.

Dabur has devised a multi-pronged strategy, which varies from geography to

geography, which is contributing well to its total sales.
4. PROPOSED SOLUTION/CHANGES

To overcome the problems being faced by Dabur I would like to suggest some
solutions and changes -

Challenges posed by Patanjali can be tackled by following ‘Science-based

Ayurveda’ instead of ‘Faith-based Ayurveda’

The Burmans have been marketing Ayurveda for more than 130 years, but it can’t just
bank on its “history or legacy". The platform that Dabur should leverage on is
science-based Ayurveda, backed by research, validation and hard evidences. It will
appeal to a lot of people who may not believe in faith-based Ayurveda (unlike
Ramdev’s followers) including today’s well informed youth and homemakers.
Emphasis on R&D and changes in packaging and marketing communications is
required to be relevant to the youth too. The youth wants facts and evidence, they
want products relevant to their needs.
Patanjali has given a big impetus to Ayurveda and his large number of followers are
driving it. The desire for Ayurvedic solutions runs very deep in Indian psychology, so
Dabur should take advantage of it.
Evidence :
“We have been marrying the age-old Ayurvedic heritage and traditions with cutting-
edge scientific prowess. We have a strong in-house research wing that follows a
‘bush-to-brand’ approach. We have our in-house nursery, which grows several rare
herbs that go into various products. Dabur is probably the only company which is
involved in both classical or ethical as well as OTC (over-the-counter) formulation
research for close to 40 years now," says J.L.N. Sastry, head (research and
development, Ayurveda) at Dabur India.
So Dabur is already taking steps in using Science-based Ayurveda to sell its products
and should continue using evidences and facts to outwit Patanjali, for instance, by
using approvals and validations from FSSAI and other such authorities.
Dabur should tackle competition in the market by sticking to its core
competency and using E-commerce to push their products further
Dabur has already associated with E-commerce marketplace Snapdeal to set up an e-
store for its Ayurveda products called LiveVEDA as e-commerce was an imperative
for Dabur’s future and it should continue to invest in digitised marketing and selling
so that it can be ahead of its competitors with a strong market presence.
Dabur should stick to its core-competency which is in Ayurveda. It has the advantage
of being a company that has been the “original" marketer of Ayurveda in India. Most
of its competitors like Himalaya and Emami are into Herbal products. There are
differences between Ayurveda and herbal. Herbal is a step before Ayurveda. Ayurveda
is a completely different ball game.

Evidence :
Herbal or Ayurvedic still constitutes a very small part of personal care market in
India. According to a research report (September 2015) by UBS Securities India,
herbal products comprise 6-7% of the personal care products market, but the volume
is growing at about “twice the segment average". The report estimated herbal to grow
to about 10% of the segment by FY20 as the trend accelerates.
So Dabur should stick to Ayurveda and use digital medium to promote it to gain
major market share. Digital Marketing is where it should focus.

To improve its slow growth condition in a distressed economny, Dabur should

carry out attractive pricing and promotion activities to attract customers

The key challenge that Dabur is facing is that there’s a radical downward shift in the
overall consumption of consumer goods. Two consecutive poor monsoons also hurt
consumption. A relatively good monsoon, coupled with the seventh pay commission
money in the system, is likely to provide some impetus that would help consumption
recover.
However, the picture is not that dismal as packaged goods companies like Dabur are
enjoying high margins—thanks to stability in commodity prices resulting in low input
costs. Reduction of prices in some cases and aggressive promotions are required.
Some of the margins may be passed on to the consumers.
Dabur has the ability to launch highly differentiated product offerings across its
product portfolio, catalyzed by the recent success of Patanjali, increase in disposable
incomes, lifestyle changes and increasing awareness of Ayurvedic products.

Evidence :
This solution has been recommended keeping in mind the concept of leader’s pricing
and importance of promotion to retain customers. I would like to sight the anecdotal
example of Reliance Jio here. Jio distributed free sim cards with free of cost data
packages, passing margins to the customers in order to dominate the market in the
future. Same can be done in case of Dabur, by passing the benefits to the customers
now to retain and maintain a loyal customer base even in times of economical
distress.
Dabur needs to re-write its strategies for the rural markets to compensate its
slow growth and develop its distribution strategies

About 45% of Dabur India’s domestic revenue comes from rural markets and, as
mentioned above, consumption in rural markets has not been growing for the last few
years. Tweaks in distribution and go-to-market efforts, will help Dabur improve
productivity of the enhanced footprint, besides doctor detailing could be a key driver
for healthcare offerings. Re-organizing its sales force and training its village sales
employees will be required to handle the slow growth situation in rural India.

Mergers and Aquisitions may be helpful in this regard. Dabur should not buy
companies that are in the generic products space as that could conflict with its
existing product offering but focus on companies that make branded proprietary
products in areas such as digestion, cough and cold, fever, lifestyle disease
management, among others.

Evidence :
Dabur rural retail chains ‘NewU’ has lead to increased market penetration in the past.
Dabur’s key acquisitions in India include Balsara Hygiene Products Ltd, maker of
Babool toothpaste and Odonil air freshner, in 2005 and female skin care products
maker Fem Care Pharma in 2008. Over the years, some of the brands it acquired from
these two firms, such as Fem, Babool and Odonil, have crossed the Rs100-crore sales
mark. Dabur has also used Astra training in rural areas to boost sales. So, it can learn
from the past and change according to the present requirements.

To tackle its international woes, Dabur should fill gaps in their existing portfolio

About 32% of Dabur’s consolidated revenue comes from international markets by

selling personal care products across the Middle East, Africa, Europe, North America
and South Asia. Dabur should continue to invest in these markets—in brands,
distribution and building local supply chains to ensure better pricing and margin.
Dabur should be open to exploring inorganic opportunities to fill gaps in their
existing portfolio and geographic presence. Dabur made its first foreign acquisition in
2010 by buying Hobi Kozmetik Group, a leading personal care products company in
Turkey, for $69 million. It also acquired US-based Namaste Laboratories for $100
million in the same year. In July, 2016, Dabur India acquired Discaria Trading,
registered in South Africa, for just Rs4,679 (1,000 South African rand). It was a small
but important acquisition.

It should aim at similar M&As in the future and deepen its presence in Africa and
South Asia. Two markets where it already sees a better future are Myanmar and Iran.
Evidence :
Dabur’s current international portfolio is dominated by products it got from
acquisitions. According to Citi Research, hair oil accounted for about 39% of sales
from international markets together, followed by shampoo (14%), hair cream (13%),
oral care (11%), skin care (7%) and styling products (about 12%) in FY16, contrary
to hair oil contributing about 93% to the business in FY06.
“Namaste business has been steady and we believe local manufacturing and
distribution in Africa should provide a fillip to the business from 2017 onwards.
Local manufacturing would enhance the price competitiveness of Namaste products
that are currently imported and thus at a significant price premium. Steps to
enhancing sales and distribution for Namaste products in sub-Saharan Africa should
help Dabur deepen its presence." Citi Research report.
5. RECOMMENDATIONS

A business develops strategies to set the direction, for which human and material
resources will be applied, for a greater chance of selected goal. Strategies are of 3
types - Corporate strategy, Business strategy and Functional Strategy.
Strategies for accomplishing the proposed solutions to tackle threat of new entrants
and competitors, slow rural market and distressed economy and international woes
are as follows -
Corporate Strategies adopted by Dabur -
Stability and Expansion (category specific)
Strategies to strengthen presence in existing categories and markets as well as enter
new geographies. Maintain dominant share in categories where Dabur is the category
builder like Health Supplements, Digestives etc. and expand market shares in other
categories. International expansion – local manufacturing and supply chain
development to enhance flexibility and reduce response time.
• Innovation i.e., Market and Product Development: Focus on R&D to develop
new variants to cater to newer markets. Making of value added products with
customization as per customer’s requirement.
• Acquisitions (Market penetration & integrative growth): Acquisitions are
critical for building scale in existing categories and markets. Target
opportunities in focus markets and categories through acquisitions to develop
scale in existing markets and vertical diversification to enter new ones where
Dabur doesn’t have that much expertise. International acquisitions are also
equally important.

Business strategies adopted by Dabur -

Integrated strategy (for urban middle class)
The urban middle class has been gradually shifting towards branded organized
markets for consumer discretionaries given the growth in per-capita income. Newer,
more contemporary variants should be developed specifically to cater to this segment.
Super brands like Vatika and Real, most admired brands like Hajmola and
Chyawanprash are among other 6 Dabur brands on which Dabur should focus.
 • Innovation i.e., Market and Product Development: Rolling out new variants
and products such as Babool (salt variant). Renovation of existing products to
changing demands (toothpowder to toothpaste). Reinventing packaging to
stand out among competitors. Communicating and image as youth friendliness.
• Acquisitions (Market penetration): Dabur, whose food category is not so
popular should enter into acquisitions with packaged food makers to gain share
in this category.
Focused cost leadership (Rural Demography)
Instant noodles, Hair dyes and floor cleaners are not the stategic areas to emphasize
right now. With Dabur’s reatil chains ‘NewU’ expanding in rural demographics
across the country, the availability of conveniently packed products like shampoos,
tooth powder and oils, will lead market penetration with cost leadership and will be
able to compete with competitors’ products.
Functional Strategies adopted by Dabur -
Marketing and supply chain:
• Adopting a push strategy in rural areas where Dabur can display its prodcuts
through ‘kirana stores’ and its upcoming retail shops.
• Advertising through social media and digital platforms focusing on
communicating changes in its product line and a revamp of its variants for the
urban middle class.
• Dabur should carry forward its re-branding as a major FMCG player from just
an Ayurvedic company. This needs to be consolidated by adopting automation
and disruptive technologies to streamline its processes from hiring to supply
chain.
• Re-engineer its sales and distribution structure and drastic rationalization of
Dabur’s stockist and distribution network.
• To face Patanjali and other competitors Dabur should adopt attractive pricing
policies and stick to its core competency and use Patanjali’s influence on the
market as an opportunity.
Human Resource:
• Inclusion of younger personnel in the top management to provide inputs on
changing demographics of its customers from Gen X to Gen Y. Especially in
the marketing team.
 • Training to equip the functional staff to deal with customer complaints and
customer satisfaction training, specially in the rural areas.
• Training employees in rural areas to manage sales practices and also preparing
them for M&As.
Some other strategies that may be useful for Dabur are as follows -

Key Internal Factors + Key External Factors

= Resultant Strategy

Reconnect with urban

Strong R&D over 10 population through
decades innovative smart products Diversification
for home and offices strategy
(internal strength)
(opportunity)

Renew and reconnect the

Uneven profitability brands through various
accross product lines initiatives like ‘Brave and Product
Beautiful’ re-positioning
(internal weakness)
(Opportunity)

Unbranded players account

Localized manufacturing
for two-thirds of the local Marketing mix strategy
and supply chain process
market. ( 4 P’s- product, place,
price and promotion)
(internal strength)
(threat)

Existing competition like

Patanjali for Honey,
Low categorical
Himani for Dabur
penetration in rural market
Chyawanprash and HLL Acquisition strategy
for Vatika
(internal weakness)
(threat)
What should be done and who should do it ?
Brand revitalization and Brand reinforcement is required to be done by Dabur to
solve the issues it is facing.

Brand revitalization requires that either the lost sources of brand equity are
recaptured or that new sources of brand equity are identified and established. It is a
strategy to recapture lost sources of brand equity and identify and establish new
sources of brand equity. This may include modification or brand repositioning.

This is a job for Dabur’s marketing team, who have to launch various marketing
programs to educate the customers, create awareness and thus revitalize the brand.

Brand reinforcement involves ensuring innovation in product design, manufacturing

and merchandising and ensuring relevance in user and usage imagery.

Dabur has already started and should continue the process of modernizing its
Ayurveda portfolio and introducing new products at the same time. To start with, the
Burman family-led company should boost its women's healthcare range and follow it
up with product launches in health and baby care segments. This swelling move also
includes its bestseller Chyawanprash that contributes around 40 per cent to the
company’s annual sale and also bring in products in various flavours to bridge the
gap between health and taste. Launching them in modern formats is a must.

The Industry experts have also suggested that such plans will make Ayurvedic
remedies relevant to the modern-day consumer.

This task belongs to all departments, specially the R&D department which has to
come up with new and modern customer solutions to provide Dabur with a
competitve edge.

The corporate strategy needs to be in sync with the departmental strategies with the
vision of Dabur in mind – To satisfy the health and well-being of all its customers.
6. CONCLUSION

Dabur , a 132-year-old ayurvedic company, promoted by the Burman family, started

operating 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. Dabur
also recommends various Ayurvedic Home Remedies formulated using ayurvedic
plants & herbs which are natural & chemical free.

Dabur today operates in key consumer product categories like Hair Care, Oral Care,
Health Care, Skin Care, Home Care and Foods. The ayurvedic company has a wide
distribution network, covering 6 million retail outlets with a high penetration in both
urban and rural markets.

Dabur has a fully dedicated R&D team of highly qualified technical personnel, eager
to undertake joint development agreements to meet customer needs for differentiated
value added products. It has also incorporated modern management tools such as
SAP to ensure that its valued customers get best quality services.

Dabur needs to establish itself on online market platforms like Flipkart and Amazon
and adopt new digital marketing strategies to take advantage of the growing
opportunities coming its way as well as to tackle the new threats such as entrance of
Patanjali in the market segments previously dominated by Dabur.

With the onset of Industry 4.0 it is required by Dabur to update its strategies
accordingly, to maintain its market share in the FMCG industry and gain attention of
its customers as well as attract new customers to sustain in the FMCG industry.

The things Dabur India vice-chairman Amit Burman would like to change, in his own
words - “Hunger for acquisitions should grow. There’s a limit on how much you can
grow organically. Mergers and acquisitions are the route for faster growth. But that
does not mean you can go for overpriced buys. The focus on international markets
should increase. Markets outside of India should contribute more to overall sales. The
third thing is the focus should be on healthcare. This is one area that would be very
big in future. Everything, even food, should have a health focus. These are not new
areas but enhanced focus on these will ensure faster growth.”
7. BIBLIOGRAPHY

I have collected information for this assignment titled ‘Dabur: A Strategic

Management Case Study- Decoding Dabur’s problems and furnishing solutions’ from
various sources listed below.

• ‘Discourses on Strategic Management’- by Dilip Roy

• Lectures delivered by Professor (Dr.) Sitanath Mazumdar
• www.dabur.com
• www.wikipedia.com
• www.slidershare.com
• www.reuters.com
• www.businessjargons.com
• www.livemint.com
• www.economictimes.com
• www.forbes.com
• www.thehindubusinessline.com
• Citi research reports on Dabur
 CONTENTS

Sl. no. Particulars Page no.

1. Introduction

2. Background

3. Evaluation of the Case

4. Proposed Solution/Changes

5. Recommendations

6. Conclusion

7. Bibliography
 C-202 I – Strategic Management

Internal Assessment

Dabur – A Strategic Management Case Study

Submitted by:

Name - Eman Khan

Class - MBA (C.U., Alipore Campus)
Roll No. - 04
Exam Roll No. - 95/MBA/180004