Dabur finds Its Missing Link
By: Sudhir Kumar
Introduction
Competitors: ◦ MNC: HUL , Lo`real , Nivea , Reckitt Benckiser , P&G ◦ Home Spun: Cavin Kare , Cadila , Emami.
Personal Care Portfolio
Other FMCG
Advertisement Expenses
20% of sales
12%-13% of sales
Gross Margin
50% higher than other margin.
Lower than personal care portfolio.
Re-launch Of Dabur: Dabur Launched Soap and Face Pack-Vatika Failure: Assumed as Hair Oil Brand Result : Failure of Soap, negligible sale of facepack Re-launch of skin care products under Gulabari range, with Preity Zinta. Products :Lotion, Cream and spray to freshen face.
What Was Missing Dabur Products : Dabur, Vatika ,Real , Hajmola & Anmol. Environmental conditions leading to demand of high skin care products. Dabur Personal Care portfolio included, Hair and oral care products The missing Link: SKIN CARE
Acquisition Of FEM Interested parties in acquisition of FEM: Godrej , Marico & Dabur. DABURS Acquisition Of FEM CARE PHARMA LTD at Rs. 257 crores. Annual revenue of FEM – 110 Crores portfolio : Oxybleach cream, Botanica antiageing cream, Stratum colour protecting hair conditioners, SAKA men’s bleach & Bambi fabric softeners
Problem Solution Scope 1
2
3
4
Competitor
Issues & Actions Women- Fem 2-3% women HUL- Fair & Harmful to Facial Bleach with facial lovely Skin. Hair hair Aware : using 100% method, Capture. Pre & post Body hair Fem Of 200 crore Wyeth labs- Se Bleach Lotion of country sale Anne French, alkalinity,make (16 Herbs) , fem’s share Reckitt s skin rough & is 10%. Benckiser- dry. Veet Nourishing The FemTotal market HUL-F&l _____ lotion Masculine SAKA share of 100 mens active Option Fairness Crores. Emami- Fair cream & handsome for men. L’orealgarnier Hand Fem 80-90 Crores R B – Dettol Lack anti Wash Liquid market HUL – bacterial soap lifebuoy property. No action
Dabur Market Strategy For Fem:
Acc. To Duggal: Stock Network of Dabur & Fem should be separate, as: ◦ Fem Sales team may get lost in Dabur. ◦ Dabur not expert in selling Fem product. ◦ Thus sales forces are not being integrated.
But , apex level, backend, purchase & Media- buying functions have been merged.
Conclusion Target Pop for FEM- 5 lacs & Dabur 2.8 million. All Dabur outlets cant stock as there would be synergies which would be exploited. Its imp. For SBU like Dabur to strike a right bal. And provide separate strategic planning to each of its product.