R.A.

Podar College
of Commerce and Economics
Autonomous
Matunga, Mumbai.

Name : Prerna Vijay Borade

Roll No. : 10
Subject : Strategic

Case Study On
DABUR INDIA LIMITED

Master of Commerce Part I Sem I (2023-24)

 Contents

Sr.
No. Title
1. Introduction of the Company
2. History of Dabur
3. Introduction to BCG Matrix
4. BCG Matrix of Dabur India Ltd
5. Product Life Cycle of Dabur
6. Justification on Classification of Dabur
Products
7. Suggestions
8. Conclusion
9. References
 Introduction of Dabur India Ltd.

Dabur India Limited is India’s fast moving consumer good FMCG company with interest in health care,

personal care and foods. Dabur has a history of more than 100 years and the company has carved niche
for itself in the field of Ayurvedic medicine. The products of Dabur are marketed in more than 50
countries worldwide.

Over its 120 years of existence, the Dabur has stood for goodness through a natural lifestyle. An
umbrella name for a variety of products, ranging from haircare to honey. Dabur has consistently ranked
among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never
cause one harm.

The trust levels that this brand enjoys are phenomenally high. While ries and trout may ask “what does
Dabur stand for – shampoo or digestive tablets”? The answer is fairly simple, it stands for India’s fourth
largest fast-moving consumer goods company that both consumer and trade respect and trust
unequivocally, and which has annual turnover of rupees 15 billion.

The company has kept an eye on new generations of customer with a range of products that cater to t
modern lifestyle, while managing not to alienate earlier generations of loyal customers.

Dabur is an investor friendly brand as its financial performance shows. There is an abundance of
information for its investors and prospective information including a daily update on a share price.
There’s a great sense of responsibility for investors fund on view. This is a direct extension of Dabur
philosophy of taking care of its constituents and it adds to the sense of trust for the brand over all.

Dabur today operates in key consumer products categorized like hair care, oral care, health care, skin
care, home care and foods. The company has a wide distribution network, covering over 6.7 million
retail outlets with a high penetration in both urban and rural markets. Dabur’s product also has a huge
presence in the overseas market and are today available in over 100 countries across the globe. Its
brands are highly popular in the Middle East, Africa, SAARC countries, US, Europe and Asia. Dabur’s
overseas revenues account for 28.2% of the total turnover.

History of Dabur
The story of Dabur began with a small, but visionary endeavor by Dr. S. K. Burman, a physician tucked
away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far –
flung villages. Dr. S. K. Burman started Dabur in 1884 as a small pharmacy. Initially, he prepared
Ayurvedic medicines to treat diseases like malaria, plague, and cholera that had no cure during that
period. It was his dedication, commitment and empathy that made Dabur a renowned name among the
masses. And today, after more than 120 years Dabur is known for its trustworthiness more than anything
else.

During this passage of time, Dabur went through several structural and strategic chances to maintain its
market strength. The real mass production started in 1896. Early 1900s saw Dabur emerged as the first
Company to provide health care through scientifically tested methods. It achieved significant
improvements after setting up research and development centers and manufacturing automation. The
launch of Dabur Amla hair oil and Chyawanprash was a boon to the expanding business. To keep up
with the times Dabur computerized its operation in 1957. It’s Dant Manjan and digestive tablets were
widely accepted as well.

However, with a large product portfolio in the market, Dabur had to maintain operational efficiency. To
make sure it adjusted to the business environment it become a public limited company in 1986 followed
by diversification in Spain in 1992. A major change came when Dabur came up with its IPO in 1994.
Because of its position Dabur’s issue was 21 times oversubscribed. Dabur further divided its business
into three separate groups:

 Health Care products Division

 Family products Division
 Dabur Ayurvedic specialties Limited

Dabur India limited is a consumer care and health care products company. Product portfolio offered by
the company includes personal care products, health care products, home care products, and foods.
Dabur also offers Ayurveda-based health care products. It markets its products in India as well as
international market as Middle East, South-east Asia, Africa, the European union and America. The
company operates through four division namely Consumer Care Division [CCD] that deal in FMCG
products across a wide spectrum of market segments; International Business Division [IBD] that focuses
on developing Dabur’s business abroad; Consumer Healthcare Division [CHD] that deals in the classical
and OTC range of products which are grantha raised and which follow strict Ayurvedic formations; and
retail divisions which is currently in the development phase. The company is headquartered at
Ghaziabad, Uttar Pradesh, India.

In 1998, for the first time in the history of Dabur, a non-family member took charge. Dabur handed over
the operation to professionals. Successful implementation off procedure, timely changes and maintaining
its essence, Dabur achieved its highest ever sales figure of Rs 1166.5 crores in 2000-2001.

As FMCG sector was struggling with a slow growth in the Indian economy Dabur decided to take
enormous strategic initiatives, recognize operation and improvise on its brand architecture beginning
2002. It decided to concentrate its marketing effort on Dabur, Vatika, Real, Anmol and Hajmola to
strengthen their brand equity, create differentiation and emerge as a pure FMCG player recognized as
Herbal brand. This was chosen after a study with Accenture, which revealed that Dabur was mainly
perceived as a herbal brand and connected with the age group above 35.

Also, larger retailer was making their foray Into the FMCG market. Apart from at HLL, P&G, Marcio
and Himalayan, ITC was also posing a challenge. The supply chain of Dabur was becoming complex
because of the large array of product. Southern market share in the sales figure was negligible. These
factors posed a threat to Dabur and hence small challenges were not enough.
 BCG Matrix

Introduction

The BCG Matrix is a strategic management tool that was created by the Boston Consulting Group,
which helps in analyzing the position of a strategic business unit and the potential it has to offer. The
Matrix consists of 4 classifications that are based on two dimensions. The first of these dimensions is the
industry or market growth. The other of these dimensions is the relative market share of the strategic
business unit. Strategic business units are placed in one of these 4 classifications. The BCG Matrix for
Dabur India Ltd – Globalization will help to decide on the strategies that can be implemented for its
strategic business units.

Strategic business units with high market growth rate and high relative market share are called as stars.
Businesses should invest in their stars and can implement vertical integration, market penetration,
product development, market development, and horizontal integration strategies. Strategic business units
with high market growth rate and low relative market share are called as question marks. These strategic
business units require close considerations whether the business should continue with them or divest.
Strategic business units with low market growth rate but with high relative market share are called cash
cows. The business should invest in these to maintain their relative market share. Lastly, the strategic
business units with low market growth and low relative market share are called dogs. The business
should divest these strategic business units.
 BCG Matrix of Dabur India Limited

The BCG Matrix for Dabur India Ltd – Globalization will help the company in implementing the
business level strategies for its business units. The analysis will first identify where the strategic business
units of Dabur India Ltd fall within the BCG Matrix.

STARS

 The financial services strategic business unit is a star in the BCG matrix of Dabur India Ltd –
Globalization. It operates in a market that shows potential in the future. Dabur India Ltd –
Globalization earns a significant amount of its income from this SBU. Dabur India Ltd –
Globalization should vertically integrate by acquiring other firms in the supply chain. This will
help it in earning more profits as this Strategic business unit has potential.

 The Number 1 brand Strategic business unit is a star in the BCG matrix of Dabur India Ltd –
Globalization, and this is also the product that generates the greatest sales amongst its product
portfolio. The potential within this market is also high as consumers are demanding this and
similar types of products. Dabur India Ltd – Globalization should undergo a product
development strategy for this SBU, where it develops innovative features on this product through
research and development. This will help Dabur India Ltd – Globalization by attracting more
customers and increases its sales.

 The Number 2 brand Strategic business unit is a star in the BCG matrix of Dabur India Ltd –
Globalization as Dabur India Ltd – Globalization has a 20% market share in this category. It also
the market leader in this category. The overall category is expected to grow at 5% in the next 5
years, which shows that the market growth rate is expected to remain high. Dabur India Ltd –
Globalization should use its current products to penetrate the market. This could be done by
improving its distributions that will help in reaching out to untapped areas. This will help
increase the sales of Dabur India Ltd – Globalization.

CASH COWS

 The supplier management service strategic business unit is a cash cow in the BCG matrix of
Dabur India Ltd – Globalization. This has been in operation for over decades and has earned
Dabur India Ltd – Globalization a significant amount in revenue. The market share for Dabur
India Ltd – Globalization is high, but the overall market is declining as companies manage their
supplier themselves rather than outsourcing it. The recommended strategy for Dabur India Ltd –
Globalization is to stop further investment in this business and keep operating this strategic
business unit as long as its profitable.

 The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Dabur India Ltd
– Globalization. This is an innovative product that has a market share of 25% in its category.
Dabur India Ltd – Globalization is also the market leader in this category. The overall category
has been declining slowly in the past few years. Dabur India Ltd – Globalization has the power to
 influence the market as well in this category. It should, therefore, invest in research and
development so that the brand could be innovated. This will help the category grow and will turn
this cash cow into a star. The overall benefit would be an increase in sales of Dabur India Ltd –
Globalization.

 The international food strategic business unit is a cash cow in the BCG matrix for Dabur India
Ltd – Globalization. This business unit has a high market share of 30% within its category, but
people are now inclined less towards international food. This change in trends has led to a
decline in the growth rate of the market. The recommended strategy for Dabur India Ltd –
Globalization is to invest enough to keep this strategic business unit under operations. If it no
longer remains profitable and turns into a dog, then Dabur India Ltd – Globalization should
divest this strategic business unit.

QUESTION MARKS

 The local foods strategic business unit is a question mark in the BCG Matrix for Dabur India Ltd.
The recent trends within the market show that consumers are focusing more towards local foods.
Therefore, this market is showing a high market growth rate. However, Dabur India Ltd has a
low market share in this segment. The recommended strategy for Dabur India Ltd is to invest in
research and development to come up with innovative features. This product development
strategy will ensure that this strategic business unit turns into a cash cow and brings profits for
the company in the future.

 The Number 4 brand strategic business unit is a question mark in the BCG matrix for Dabur
India Ltd – Globalization. This strategic business unit is a part of a market that is rapidly
growing. However, this strategic business unit has been incurring losses in the past few years. It
has also failed in the attempts made at innovation by research and development teams. The
recommended strategy for Dabur India Ltd – Globalization is to divest and prevent any future
losses from occurring.

 The confectionery strategic business unit is a question mark in the BCG matrix for Dabur India
Ltd – Globalization. The confectionery market is an attractive market that is growing over the
years. However, Dabur India Ltd – Globalization has a low market share in this attractive market.
The low sales are as a result of low reach and poor distribution of Dabur India Ltd –
Globalization in this segment. The recommended strategy for Dabur India Ltd – Globalization is
to undergo market penetration, where it pushes to make its product present on more outlets. This
will ensure increased sales for Dabur India Ltd – Globalization and convert this strategic
business unit into a cash cow.
 DOGS

 The plastic bags strategic business unit is a dog in the BCG matrix of Dabur India Ltd –
Globalization. This strategic business unit has been in the loss for the last 5 years. It also operates
in a market that is declining due to greater environmental concerns. The recommended strategy
for Dabur India Ltd – Globalization is to divest this strategic business unit and minimise its
losses.

 The Number 5 brand strategic business unit is a dog in the BCG matrix for Dabur India Ltd –
Globalization. This is operating in a market segment that is declining in the past 5 years. The
company also has negative profits for this strategic business unit. However, it is expected that the
market will grow in the future with environmental changes that are occurring. The recommended
strategy for Dabur India Ltd – Globalization is to invest in the business enough to convert into a
cash cow. This will ensure profits for Dabur India Ltd – Globalization if the market starts
growing again in the future.

 The synthetic fibre products strategic business unit is a dog in the BCG matrix of Dabur India Ltd
– Globalization. The market for such products has been declining, and as a result of this decline,
Dabur India Ltd – Globalization has been facing a loss in the past 3 years. The market share for it
is also less than 5%. The recommended strategy for Dabur India Ltd – Globalization is to divest
this strategic business unit to minimise any further losses.

 The artificially flavoured products strategic business unit is a dog in the BCG matrix for Dabur
India Ltd – Globalization. These products were launched recently, with the prediction that this
segment would grow. However, with increasing health consciousness, people are now refraining
from consumption of artificial flavours. The market is shrinking, and Dabur India Ltd –
Globalization has no significant market share. The recommended strategy for Dabur India Ltd –
Globalization is to call back this product.
 BCG Diagram

STAR QUESTION
Real Fruit Juice MARK
Dabur Red Toothpaste
Oxylife Face wash

CASH
FLOW DOG
Dabur Chyawanprash
Odomos Dabur Gulabari
Dabur Vatika Hair Oil
 Product Life Cycle of Dabur

Product Life Cycle is the stages through which an item or its different classifications sidestep. Like
human existence item likewise has a daily existence which go through a similar stage to which human
pass for example Presentation, Growth, Maturity and Decline. Item life cycle encourages the
organization to recognize where its item stands, in the event that the item is in development stage, at that
point organization utilize different strategies to get the item into development stage. So, they can
appreciate higher incomes, and yet organization needs to keep a watch that item ought not enter its
decay stage. In any case item will get wiped out from the market, to keep the item from going into
decrease stage organization make development in the item or get new variations so that to keep the item
in development stage as it were.

Introduction Phase :

The primary phase of product life cycle is the presentation or the spearheading phase. During this phase
rivalry isn’t a lot, costs are moderately high and markets are restricted and the item advancement isn’t a
lot. For its real image, Dabur zero in on expanding the utilization by focusing on moms and youngsters.
It prompted the beginning of the genuine organic product juice in 2004. Simultaneously the organization
needed to situate the Real natural product Juice as its exceptional image and henceforth there was a
superior valuing since its beginning and in a bigger number of ways than one it has worked in the
kindness of the brand. During these occasions their primary objective was the kids and to interest them,
the moms were focused on.

Growth Phase:

It was in the year 2008 – 2009 that the organization went into its development stage. The section into
this stage was very early and the development of the piece of the pie of the genuine organic product
juice was ostensibly, staggering. Dabur dispatched a 360-degree market mission to fortify its genuine
natural product juice picture. It was likewise dispatched numerous new flavors in which it was promptly
accessible on the lookout in order to take into account an entirely different arrangement of clients. The
beverage which was beforehand accessible in two flavors was currently accessible in four new flavors
which took its reach to six. There could have been no other natural product juice which was accessible in
such countless variations in the Indian market around then. The Juice was better focused and better
stuffed in order to not be messed with and it had an emanation of newness in it. The thought behind this
was just about as much as to make it an encounter to have Real Fruit Juice as to fulfill the wholesome
necessities of the majority.

Maturity Phase:

Real Fruit Juice is in its initial development stage or in its late development stage. It has an entirely
different scope of blend and incurring significant damage of accessible variations to 14 viz. grapes,
plum, litchi, pomegranate, mango, tomato, cranberry, Orange, guava, peach, blended organic products,
apple, apricot, pineapple. In all honesty it has other wanted organic product juice accessible as a
variation. It has an exceptionally consistent ascent in its piece of the overall industry. From About 33%
in 2009 to over 55% in 2013, absolutely shows colossal market presence. It is accessible at most stores
and the organization’s extraordinary conveyance channel just adds further to its expanding piece of the
overall industry. The income share shows that Real Fruit Juice is truly doing incredible in the natural
product juice area in India and it has gigantic degree for extension considering its image and
Decline Phase:

Real Fruit Juice till has not entered this stage and it’s exceptionally improbable that it occurs sooner
rather than later.

Justification on Classification of Products

The Dabur company has a wide range of products that offer the consumers with different healthcare
options. Another important point that shows the financial stability of Dabur is the revenue of Rs 8400
Crore. Its more than 250 products are available in India, with a strong market presence in the
international healthcare industry as evident from the supply of its items in more than 120 regions
(Dabur India Ltd, n.d). The product portfolio includes items related to personal care, home care and
food products.

Dabur hair oil has been faring well in the Indian and international market, making strong financial
performance. Agarwal (2016) has indicated that Dabur holds a prominent position in the hair oil
segment in India. It has been further noted that in 2016, more than 60% of the market share in India in
the hair oil segment belonged to Dabur hair oil categories. Another product that has performed well in
the domestic and international market is Dabur Hajmola, a renowned remedy for indigestion in the
domestic market specifically. In India alone, the consumers are purchasing 2.6 crore tablets on a daily
basis, which indicates a large sales volume (Dabur Hajmola, n.d). Moreover, the herbal remedy
industry in India is dominated by Dabur Hajmola, as evident from the 50% share owned by the
product.

Dabur toothpaste has been able to create a significant niche in the market while the Dabur juice has
attained similar success. Bhushan (2016) has shared insight into the Indian toothpaste market,
highlighting that the red toothpaste by Dabur has been able to secure a position among the top 3
leading brands in the country. The significant market share shows that the company has been able to
compete with the foreign MNCs, such as Colgate-Palmolive Company. In the beverage segment,
Dabur juice has targeted the needs of the customers who want fizzy drinks, yet want to consume
healthy beverages. The option of fruit juice with the fizzy combination has appealed the target market,
increasing the demand of the product within a short span of time, making it a star for Dabur.

Dabur’s Lal Dant Manjan toothpowder, indicating the low potential of growth for this product. The
consumers have a higher demand for toothpaste and toothpowder continues to have a much lower
demand among the consumers. Therefore, the investment in toothpowder suggests low profitability
and revenue generation. Rath (2011) has further observed that the main demand of toothpowder
originates from the older consumers, however, the demand is not significant to categorize toothpowder
as a cash cow or star.
 Suggestions

 Vatika hair care centre: On the lines of Marico’s Kaya Clinic, Dabur could start a
venture called Vatika hair care center 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, etc.
 Provide consumers with innovative products within easy reach.
 Focus on growing core brands across categories.
 Position of Dabur Chyawanprash as not more of a medicine but as something which
is necessary for health.
 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.

Conclusion

It was really a very great experience to study this FMCG Company “Dabur India
Limited”. After going into all aspects i.e., B C G Matrix, Product Life cycle etc. I can
conclude that Dabur India Ltd is good company in all aspects.

Dabur has primarily faced the challenge of rigid competition and because of its brand
name and high-quality product, customers believe that Dabur provides 100 percent natural
products, it has always overcome the issue. The social factors that influenced the clients’
emotions were targeted by Dabur. The desire to change ahead of others and to always set
new standards in corporate governance & creativity is what separates Dabur from others.
 References

1. Dabur Hajmola. (n.d). Hajmola. Dabur India Ltd. Retrieved from

http://www.dabur.com/in/en-us/products/dabur-hajmola

2. Dabur India Ltd. (n.d). Dabur Corporate Profile. Retrieved from

http://www.dabur.com/in/en-us/about/aboutus/dabur-corporate-
profile

3. https://www.dabur.com/about%20Dabur-Company%20History

4. https://www.marketresearch.com/IS-Advisors-v3900/FMCG-
Sector-India-Strategic-Review-

5. https://www.indiainfoline.com/Markets/Company/Background/C
ompany-Profile/Dabur-IndiaLtd/500096