Market Analysis ofBabool ToothpastePresented by:1. Akshay Kumar2. Jaison Babu3. Karandeep Singh4. Niranjana Narayan5. Sudipta Samanta

Dabur

• FMCG, manufactures & markets ayurvedic and natural healthcare products

• Known for herbal products• Consumer care division (CCD) handles FMCG business• Portfolio: Haircare, Health supplements, Skin and body care,

Home care, Beverages• 60 countries, 350 products• Recent venture into retail business.

SWOT Analysis

STRENGTHS1. Niche Products/Herbal Segments2. Innovative products and New Launches

WEAKNESS1. Finances

OPPORTUNITIES1. Low penetration levels in rural segments 2. Acquisitions of local herbal brands

THREATS1. Major International Players 2. Modern lifestyle trends

Total Market Value

2006 2007 2008 2009 2010 20110

10,000

20,000

30,000

40,000

50,000

60,000

31,151.334,089.5

37,752.641,917.8

47,265.4

55,472.3

Year

Tot

al M

arke

t Val

ue (I

NR)

Product

• Babool – Natural toothpaste, medicinal properties• Three product variants:

– Babool toothpaste– Neem variant– Babool Fresh Mint Gel

• Stock keeping units:– Normal and Neem variant: Family pack, 380gm, 190gm,

90gm, 50gm, and 30gm– Fresh Mint Gel: 35gm + Toothbrush, 70gm, and 145gm

Price

• Target: Economy Market Segment.

• Price: Rs. 35 for 200gms

• Elastic demand due to the economy market segment

• Any price changes or promotional offers impact sales heavily.

Channels of Distribution

• Strong distribution network

• Clearing & Forwarding agents are third-party contracts• Eliminates need for godowns and maintenance• Sales team takes ready stock, or takes orders and then

supplies goods• Salesman has a daily routine as a part of ‘beat’• Company sales team keeps check of stock and monthly report• Retailer margin > Stockist margin

Manufacturing Plant

Clearing & Forwarding

Agent

Stockist/Distributors Retailers Consumers

Promotion

• New advertisement campaigns in December 2011.• Focus on natural ingredients, medicinal value and strength.• Tie up with media and movies – Dabang Babool contest • Sales promotion techniques

– Free toothbrush with family pack– 2 for less offers

5C Analysis

Climate

Company

Competitors

Collaborators

Customers

Competitors

45%

30%

10%

7%

2% 2%2%1% 1% 1%

Colgate-Palmolive CompanyUnileverDabur India LimitedAnchor GroupOtherIndoco Remedies LimitedHimalaya Drug CompanyManeesh Pharmaceuticals Pvt. Ltd.GlaxoSmithKline PlcJ.L Morison (India) Ltd

Total Market Value: 41901.2 Million INR

CompetitorsCompany 2008 2009 2010 2011 Brands

Colgate-Palmolive Company 46.67% 47.18% 45.51% 44.72%

Colgate, Cibaca, Colgate Sensitive, Active Salt

Unilever 28.62% 28.72% 29.52% 30.47%Close-up, Pepsodent, Whitening, Sensitive

Dabur India Limited 8.88% 9.02% 9.36% 9.72%Babool, Red-Gel, Meswak

Anchor Group 6.70% 6.74% 6.76% 6.79% AnchorOther 4.32% 3.42% 3.06% 2.34%

Indoco Remedies Limited 1.67% 1.72% 1.84% 1.90% Sensodent, Sensoform

Himalaya Drug Company 1.46% 1.48% 1.53% 1.56% Himalaya herbalsManeesh Pharmaceuticals Pvt. Ltd. 1.24% 1.29% 1.33% 1.38% Smyle

GlaxoSmithKline Plc 0.10% 0.10% 0.61% 0.61% SensodyneJ.L Morison (India) Ltd 0.43% 0.44% 0.48% 0.51% Emoform

Company

55.6%33.3%

11.1%

BaboolRed-GelMeswak

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Series1

0.001 0.001 0.001 0.001 0.0439

0.0471

0.0488

0.0494

0.0518

0.0543

0.50%

1.50%

2.50%

3.50%

4.50%

5.50%

% M

arke

t Sh

are

of B

aboo

l

Product Portfolio of Toothpastesfrom Dabur

Climate

• Dabur Babool belongs to specialist segment (Herbal Toothpastes)• Market share in herbal segment: 40.2 Million units (2012)• Total Units: 1212 Units (2012)

StandardCosmeticSpecialistBicarbonate of soda

Collaborators

71%

11%

6% 6%5%

1%

Independent RetailersConvenience StoresPharmacies / drugstoresSupermarkets / hy-permarketsSpecialist RetailersDepartment Stores (incl. Duty-Free Shops)

Customer

2006 2007 2008 2009 2010 20110

1,000

2,000

3,000

4,000

5,000

6,000

7,000

3,150.1

3,762.84,133.9

4,468.5

5,198.1

6,157.4

941.61,318.2 1,384.1

1,608.71,929.6

2,364.0

Dabur Market Share

Year

Tot

al M

arke

t Val

ue (I

NR)

Customer

• INR 4,400 crore oral care market• Groth rate: 18% in terms of value

13% in terms of volumes• Urban customers – product and price conscious• Economy herbal positioning• Typical family of 4 buys 200 gm pack, lasts 3-4 weeks• Buying decision – careful, not impulsive• Factors affecting decision - Parent company

Brand nameGum protection, mouth freshening

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