Strategy Used by Dabur

8/3/2019 Strategy Used by Dabur

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Dabur India Limited is a leading Indian consumergoods company with interests in Hair Care, OralCare, Health Care, Skin Care, Home Care andFoods. From its humble beginnings in the bylanes

of Calcutta way back in 1884 as an Ayurvedicmedicines company, Dabur India Ltd has come along way today to become a leading consumerproducts manufacturer in India. For the past 125years, we have been dedicated to providing

nature-based solutions for a healthy and holisticlifestyle.

Through our comprehensive range of products,we touch the lives of all consumers, in all agegroups, across all social boundaries. And thislegacy has helped us develop a bond of trustwith our consumers. That guarantees you the bestin all products carrying the Dabur name .


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The activities and programs which a business firm designs andcarries out in its efforts towards winning customers, relate oneor the other of the four elements, which are usually known asfour Ps of marketing, or just Marketing Mix variable.

Product

Place

Price

Promotion

1) Product means the goods and the services combinationthe company Offers to the target market.

Its variables are :-

- Product mix and product line


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-Design, quality, features, models, style, appearance, size andwarranty of products- Packaging, type, material, size, appearance, label- Branding and trademark

- Services, pre-sale and after-sale-New products

2) Place

includes company activities that make the product available totarget consumers.

Its variables are :-

-Channels of distribution, types of intermediaries, channeldesign, location of outlets, channel remuneration and dealer -principle relations

- Physical distribution, transportation, warehousing, inventorylevels, Order processing etc


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3) Priceit is the amount of money customers have to pay to obtain the Product.Its variables are :-

- Pricing policies, levels of margins, discount and rebates.- Terms of delivery, payment terms, credit terms and installments Facilities.-Resale and price maintainence

4) Promotion

means activities that communicate the merits of the product and persuades thetarget customers to buy it. Its variables are :-

- Personal selling:- objectives, level of effort, quality of sales force, cost level

- Advertising : media mix, budgets, allocations and programs.- Sales promotional efforts, displays, contests, trade promotions.- Publicity and public relation.


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Recruitment is an integral and ongoing process inany organization. This holds true for Dabur also. Wehave a two-pronged approach in recruiting

dynamic professionals - lateral recruitments andthe Management Trainee / Engineer Traineerecruitments at entry level.

The Management Trainee / Engineer TraineeProgramme has been a focus area to induct youngand vibrant professionals at the entry level. Withevery passing year, upgradations are made to it tomake the learning experience more enriching and

rigorous with a greater focus on functional andconceptual inputs and an objective learningevaluation system.


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IT InitiativesAt Dabur India Limited, knowledge and technology are key resources which have

helped the Company achieve higher levels of excellence and efficiency. Towards

this overall goal of technology-driven performance, Dabur is utilizing Information

Technology in a big way. This will help in integrating a vast distribution system

spread all over India and across the world. It will also cut down costs and increase

profitability.

DABUR major IT Initiatives Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from

1st April 2006 for all business units.

Implementation of a country wide new WAN Infrastructure for running

centralized ERP system.

Setting up of new Data Centre at KCO Head Office.

Extension of Reach System to distributors for capturing Secondary Sales Data.

Roll out of IT services to new plants and CFAs.

Future Challenges Forward Integration of SAP with Distributors and Stockists.

Backward Integration of SAP with Suppliers. Implementation of new POS system at Stockist point and integration with SAP-

ERP.

Implementation of SAP HR and payroll.

SAP Roll-out to DNPL and other new businesses.


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DIVIDEND SHALL BE DECLARED OR PAID ONLYOUT OF

i) Current Years profita) After providing for depreciation inaccordance with lawb) After transferring to the reserves suchamount of Profitas may be prescribed, or

ii) The Profits for any previous financial year(s)a) after providing for depreciation in

accordance with law,andb) remaining undistributed, or

iii) out of i) & ii) both


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FACTORS TO BE.CONSIDERED

BEFORE DECLARING DIVIDEND.

1. Plough back of profits i. e. futurecapital expenditureprogramme includinga) New project

b) Expansion of capacities ofexisting unitsc) Renovation/ Modernisationd) Major Repairs & Maintenance

2. Likelihood of crystalization ofcontingent liabilities,if any3. Contingency Fund4. Acquisition of brands/ businesses5. Sale of brands/ businesses

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Strategy Used by Dabur