STP Analysis of Dabur

MARKETING MANAGEMENT Project On DABUR

TABLE OF CONTENTS

1

1.

INTRODUCTION ABOUT DABUR……………………………………………………………… 3

2.

STP STRATEGY…………………………………………………………………………………….. 4

3.

SWOT ANALYSIS…………………………………………………………………………………… 5

4.

PESTEL ANALYSIS…………………………………………………………………………………. 6

5.

PORTER 5 FORCES…………………………………………………………………………………. 8

6.

PROPOSALS AND RECOMMENDATIONS………………………………………………………. 9

7.   REFERENCES………………………………………………………………………………………….

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About the Company: Setup in 1884 by Dr S K Bur!n !" ! propriet!ry #ir #or t$e !nu#!cture o# !yur%e&ic &ru'"( t$e )op!ny *!" incorpor!te& +!ter by $i" &e"cen&!nt" in t$e n!e o# D!bur ,Dr S K Bur!n- P%t. /t&. In t$e +!te 102"( D!bur P%t. /t& proote& ! cop!ny to !nu#!cture $i'$3'r!&e 'u!r 'u !n& ! p+!nt *!" "et up !t A+*!r. o*e%er poor per#or!nce re"u+te& in +o""e" !n& *it$ ! %ie* to re$!bi+it!te t$e cop!ny( D!bur P%t. /t& *!" re%er"e er'e& !n& t$e ne* cop!ny *!" n!e& D!bur In&i! /t&.

5

6it$ Re%enue" o# o%er R" 8(47 )r. 9 M!r:et )!pit!+i;!tion o# R".44222 )r.( D!bur i" to&!y In&i!<" o"t tru"te& n!e !n& t$e *or+&<" +!r'e"t Ayur%e&ic !n& N!tur!+ e!+t$ )!re )op!ny. D!bur !nu#!cture" o%er 4=2 pro&uct"( pri!ri+y !yur%e&ic( co%erin' ! *i&e r!n'e o# $e!+t$ !n& per"on!+ c!re !n& $!" !nu#!cturin' p+!nt" +oc!te& !t  &i>erent p+!ce" in t$e country. D!bur to&!y oper!te" in :ey con"uer pro&uct c!te'orie" +i:e !ir )!re( Or!+ )!re( e!+t$ )!re( S:in )!re( oe )!re !n& ?oo&". T$e cop!ny $!" ! *i&e &i"tribution net*or:( co%erin' o%er =.7 i++ion ret!i+ out+et" *it$ ! $i'$ penetr!tion in bot$ urb!n !n& rur!+ !r:et". A+"o D!bur $!" ! $u'e pre"ence in t$e o%er"e!" !r:et" !n& it" pro&uct" !re !%!i+!b+e in o%er 152 countrie" !cro"" t$e '+obe. T$e br!n& i" $i'$+y popu+!r in t$e Mi&&+e E!"t( SAAR) countrie"( A#ric!( US( Europe !n& Ru""i!. D!bur@" o%er"e!" re%enue to&!y !ccount" #or o%er 72 o# t$e tot!+ turno%er.

Mission: "Dedicated to the health & well being of every household" rinciples:

O*ner"$ip  P!""ion ?or 6innin'  Peop+e De%e+opent  )on"uer ?ocu"   Te! 6or:  Inno%!tion  Inte'rity 

!#M$%A%'$ #eographic !egmentation:(

D!bur $!" "e'ente& t$e &oe"tic con"uer !r:et n!tion!++y !" *e++ !" re'ion!++y. Rur!+ In&i! !ccount" #or ne!r+y =2 o# t$e &oe"tic ?M)G "!+e" #or D!bur. Durin' 5215317( cop!ny +!unc$e& ro)ect Double in or&er to incre!"e it" co%er!'e o# t$e rur!+ !r:et". D!bur $!" reco'ni;e& t$e intern!tion!+ &e!n& o# it" pro&uct" !n& #or!ye& into #orei'n !r:et". T$e intern!tion!+ bu"ine"" no* contribute" 75.4 to con"o+i&!te& "!+e". T$e !jor intern!tion!+ !r:et" !re Mi&&+e E!"t( A#ric!( A"i! ,e3In&i!-( Aeric!" !n& Europe. Demographic !egmentation:( conomic !tatus * /o*er( Mi&&+e !n& Upper c+!""

7

Age +very age group, * D!bur t!r'et" :i&" C  to 12 ye!r" o+& /!&ie" ,Mot$er"-( out$"

!n& O+& !'e peop+e. -amily ife Cycle !tage *  ?!i+y *it$ !&o+e"cent( +!&ie" !n& o+& sychographic segmentation:( ifestyle  C D!bur t!r'et" peop+e *$o !re $e!+t$ con"ciou"( *!nt to rep+!ce "u'!r !n& o+&

!'e peop+e *$o !%oi& "u'!r. oney i" !+"o t!:en !" e&icine "uc$ !" &urin' cou'$ 'i%en to :i&". D!bur $oney to&!y i" !""oci!te& *it$ ! +i#e"ty+e o# t$e youn' !n& o+& o# !++ c+!"". $eeds and /ene0ts

D!bur "ucce""#u++y c!te'ori;e& t$e con"uer" on t$e b!"i" t$eir nee&" !n& beneFt". • •

e!+t$ con"ciou" cu"toer" Per"on!+ c!re "e'ent "uc$ !" $!ir c!re !n& ":in c!re ?oo& !n& $oe c!re "e'ent

%A1#%$# 

D!bur $!" ! &i"tribution net*or: t$!t co%er" 1= to*n" !n& = t$ou"!n& ret!i+ out+et"



!:in' it" pro&uct !%!i+!b+e to t$e con"uer" !cro"" t$e country !t e!"e.  T$e T!r'et M!r:et #or D!bur i" peop+e o# !++ incoe +e%e+". T$e t!r'et !r:et o# D!bur i" C eople in the 2pper3 Middle and ower class. A+"o( D!bur $!" t!r'ete& t$e o%er"e!" !r:et !n& $!" becoe ! popu+!r br!n& *it$ it" pro&uct" !%!i+!b+e in o%er 152



countrie". D!bur oney !+"o re3+!unc$e& it"e+# in 5214 *it$ ! ne* +o'o. T$e pro&uct *!" !+"o !&e !%!i+!b+e in R" 12 p!c:( *$ic$ $!" been $u'e+y "ucce""#u+ !n& $!" !&&e& ne* con"uer" to t$e br!n&. T$e !r:et $!& ! &i"tinct nee& o# "!++ p!c:" o# $oney to feeding children and for religious usages . T$i" $!" $e+pe& D!bur !&&re"" t$e nee&

!n& it $!" been $u'e+y "ucce""#u+ !n& $!" !&&e& ne* con"uer" to t$e br!n&. '!%'$$# 

?ocu"e& on t$e 'ro*in' !ccept!nce o# !yur%e&ic !n& n!tur!+ pro&uct" in t$e con"uer "p!ce.



6it$ Br!%eAn&Be!uti#u+ )!p!i'n( D!bur po"itione& it"e+# !" ! br!n& t$!t c!re" !n& $e+p" to o%ercoe $!r&"$ip.

4

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Po"itione& t$e per"on!+ c!re pro&uct" !" !n !yur%e&ic !n& $erb!+ u"!'e. To etr!ct t$e ! beneFt o# n!tur!+ pro&uct.



Pre"ente& *it$ Hu!+ity pro&uct" *it$in t$e !>or&!b+e r!n'e.

!4'% A$A5!!

Stren't$" •

•

• • •

)entury o+& e"t!b+i"$e& br!n&. !" ! +e'!cy o# o%er 172 ye!r". Stron' &i"tribution net*or: $!" ! %ery eten"i%e "upp+y c$!in. It $!" penetr!te& to ! +!r'e etent in rur!+ !r:et" !" *e++. Ece++ent !r:etin' !n& !&%erti"eent" Str!te'ic p!rtner"$ip" R9D p+!nt i" ! :ey "tren't$

Opportunitie" •

• •

6e!:ne"" •

• •

S6OT An!+y"i"

Eport opportunitie" ,o%er"e!" &e!+er"$ip"Incre!"in' incoe +e%e+ o# i&&+e c+!"" Peop+e !re becoin' ore $e!+t$ con"ciou"

Purity p+!n: &i&n
 T$re!t" •

•

•

Ot$er br!n&" ,P!t!nj!+i( B!i&y!n!t$( !n&u(Go+&en Me!&o*"(A++ie&<"(Me$"on<"- $!%e '!ine& reco'nition in un&i>erenti!te& !r:et by o>erin' +o*er pricin'  Tou'$ copetition #ro +oc!+ !nu#!cturer" )opetition #ro or'!nic #oo& br!n&"( *$ic$ !re !:in' !n ien"e ip!ct on upper i&&+e c+!"".

=

!% A$A5!! '$ DA/21 '%CA -AC%'1!: icenses J D!bur $!" &eci&e& to "tren't$en it" port#o+io by in:in' ! +icen"e !'reeent *it$ t$e 'o%ernent to pro&uce ne* Ayur%e&ic &ru'". T$e +icen"e *!" procure& t$!n:" to it" 'reen$ou"e" in t$e i!+!y!" *$ere it 'ro*" t$e r!re $erb" t$!t !re u"e& #or pro&ucin' t$e"e e&icine". T$u" /icen"e" !re procur!b+e #ro t$e 'o%ernent *it$out uc$ $!""+e. #overnment interferenceJ Go%ernent o# In&i! "upport" t$e in&u"try to ep!n& 9 to eport it" pro&uct" 9 to 'ro*. %rading policies J Tr!&in' po+icie" !re !+"o #!%or!b+e #or D!bur )op!ny "o it c!n eport it" pro&uct" 9 it !+"o $e+p" t$e to ep!n& 9 to 'ro*. C'$'MC -AC%'1! J

 T$e "tep" t!:en by t$e 'o%ernent in recent tie" $!%e "$o*n po"iti%e re"u+t" !" In&i!@" 'ro"" &oe"tic pro&uct ,GDP- !t #!ctor co"t !t con"t!nt ,5211315- price" 521=31 i" R" 117.= tri++ion ,US 1.8 tri++ion-( !" !'!in"t R" 12=.= tri++ion ,US 1.== tri++ion- in 521431=( re'i"terin' ! 'ro*t$ r!te o# . percent. T$i" i" ! #!%or!b+e econoic en%ironent #or D!bur. iving standardJ Ri"e in t$e +i%in' "t!n&!r& o# peop+e $!" incre!"e& D!bur<" pro&uction +e%e+ 9 t$ey continue to pro&uce $i'$ Hu!+ity 9 %!riety o# pro&uct". -oreign direct investment  ,?DI- in In&i! $!%e incre!"e& by 50 per cent &urin' October 52143Deceber 521= perio& po"t t$e +!unc$ o# M!:e in In&i! c!p!i'n( cop!re& to t$e 1=3ont$ perio& be#ore t$e +!unc$. So In&i! i" !b+e to !ttr!ct 'oo& !ount o# in%e"tent". n6ation rateJ T$e &ecre!"in' inL!tion r!te in In&i! i" #!%or!b+e to D!bur !" t$e pro&uct<" "!+e" i" not $!pere& by $i'$ price". !'CA -AC%'1!J

 T$e ri"in' popu+!tion i" ! #!%or!b+e #!ctor #or D!bur !" it" !r:et "i;e i" incre!"in'. Moreo%er( peop+e !re no* ore $e!+t$ con"ciou" &ue to t$e inLuence o# e&i!. T$ere#ore t$ey $!%e be'un to un&er"t!n& t$e "i'niFc!nce o# Ayur%e&! !" it $!" no "i&e e>ect" !n& i" n!tur!+. T$i" i" ! #!%or!b+e to D!bur !n& it $!" ! *i&e !rr!y o# Ayur%e&! pro&uct". Distribution of incomeJ T$i" "$o*" t$!t $o* incoe i" &i"tribute& in t$e econoy. It &irect+y !>ect" t$e purc$!"in' po*er o# t$e buyer". An& u+ti!te+y +e!&" to incre!"e or &ecre!"e in t$e con"uption +e%e+ o# t$e pro&uct". Consumerism J T$i" in&ic!te" t$!t ! +!r'e nuber o# option" !re !%!i+!b+e *$i+e purc$!"in' o# 'oo&" to con"uer"( "o t$e c$oice becoe" e!"y 9 Hu!+ity pro&uct" c!n be c$oo"e" by con"uer". So *$i+e purc$!"in' ! con"uer $!" &i>erent c$oice" to "e+ect pro&uct !ccor&in' to $i" nee&".

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ducation levelsJ E&uc!tion i" one o# t$e o"t iport!nt #!ctor" *$ic$ inLuence t$e buyin' po*er o# con"uer( *$i+e "e+ectin' ! p!rticu+!r 'oo&. T$e E&uc!tion i" 'ettin' incre!"e& iport!nce !++ o%er t$e *or+&. T$u" t$e o&ern cu"toer i" !b+e to i&enti#y t$e Hu!+ity pro&uct( ! 'oo& t$in' #or D!bur.

Sun&e"$ i" ! non C proFt or'!ni;!tion en'!'e& in c!rryin' out e!+t$ )!re( E&uc!tion !n& ot$er "ocio3econoic !cti%itie" !cti%itie" *it$ t$e !i o# ipro%in' t$e Hu!+ity o# +i#e o# t$e peop+e in rur!+ !re!".

%C$''#CA -AC%'1!J

B!"ic tec$no+o'y #or !nu#!cturin' i" e!"i+y !%!i+!b+e. A+"o tec$no+o'y #or o"t o# D!bur<" pro&uct" $!" been #!ir+y "t!b+e.  Tec$no+o'y !n& re"e!rc$ &e%e+opent !cti%itie" o# D!bur i" "pe!r$e!&e& by D!bur Re"e!rc$ ?oun&!tion ,DR?- !n In&i!n contr!ct re"e!rc$ or'!ni;!tion o>erin' pre3c+inic!+ "er%ice" in &ru' &i"co%ery !n& &e%e+opent. It *!" e"t!b+i"$e& in 100. A&%!nceent in tec$no+o'yJ D!bur ?ocu"e" on 'ro*in' t$eir core br!n&" !cro"" c!te'orie"( re!c$in' out to ne* 'eo'r!p$ie"( *it$in !n& out"i&e In&i!( !n& ipro%e oper!tion!+ eciencie" by +e%er!'in' tec$no+o'y. AutomationJ A++ t$e *or:" in D!bur !re &one !uto!tic!++y by t$e !c$ine" !" e!r+ier it i" +!bor oriente&. No* !++ t$e *or: i" !c$ine oriente&. $81'$M$%A -AC%'1!J nvironment regulationsJ T$e pre#erre& cop!ny to eet t$e $e!+t$ !n& per"on!+ 'rooin' nee&" o# t$eir t!r'et con"uer" *it$ "!#e( ec!ciou"( n!tur!+ "o+ution" by "ynt$e"i;in' t$e &eep :no*+e&'e o# Ayur%e&! !n& $erb" *it$ o&ern "cience.

D!bur $!" been *or:in' to*!r&" protectin' en&!n'ere& $erb" !n& p+!nt "pecie". It $!" un&ert!:en ! $o"t o# inter%ention" !cro"" In&i! to not ju"t protect r!re e&icin!+ !n& !ro!tic p+!nt"( but !+"o en$!nce t$e +i%e+i$oo& o# +oc!+ #!rer". D!bur $!" initi!te& ! project #or pro%i&in' $i'$ Hu!+ity( !>or&!b+e "o+!r "o+ution in $ou"e$o+&" #or t$eir &!i+y u"e". nvironmental protectionJ D!bur i" ! Re"pon"ib+e )op!ny to protect Eco+o'ic!+ "y"te 9 u"e Eco3#rien&+y pro&uct". #A -AC%'1!J egalJ Di>erent +!*" !re !&e by t$e 'o%ernent to "!#e 'u!r& t$e ri'$t" o# con"uer". ?or e!p+e3 )on"uer protection !ct( t$i" +!* in&ic!te" t$!t ! con"uer c!n F+e ! c!"e !'!in"t ! "e++er i# $e Fn&" t$!t $e i" c$e!te&. Company9s lawJ T$e )op!ny #u+F++"t$e entire +!* reHuireent "o !" to 'ro*( &e%e+op 9 to "u"t!in in t$e copetiti%e !r:et.

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mployment lawJ Ep+oyent +!* pro%i&e" eHu!+ opportunitie" to e%ery citi;en to *or: 9 e!rn $i" +i%e+i$oo&. It pro%i&e" eHu!+ opportunitie" to e%ery citi;en. Consumer protectionJ T$i" +!* $e+p" to protect t$e ri'$t" o# con"uer" 9 $e c!n F+e ! c!"e !'!in"t "e++er i# $e Fn&" t$!t $e i" c$e!te&. ndustry(speci0c regulations J T$e"e +!*" !re re+!te& to in&u"try #or e!p+e3 no in&u"try c!n e"t!b+i"$ in bet*een citie" i.e. it "$ ou+& be out"i&e t$e citie".

Dabur orters -ive force model: %hreat of substitute products:

1. D!bur i" ! +e!&er in t$e $erb!+ &i'e"ti%e" "e'ent *$ere it" pro&uct $!" 02 o# t$e !r:et "$!re. T$i" i" ! c+e!r !&%!nt!'e #or D!bur !" it $!" t$e reHuire& core :no*+e&'e !n& eperti"e. 5. T$i" i" not ! "i'niFc!nt t$re!t "ince ?)MG or erb!+ pro&uct" e"p. Ayur%e&ic $!r&+y $!& !ny "ub"titute. o*e%er( t$ere !re "ub"titute pro&uct" !%!i+!b+e !t copetiti%e price" no* ,E' JP!t!nj!+i7. D!bur $!" to con"t!nt+y re in%ent it"e+# con"i&erin' t$e #!ct t$!t t$ere copetitor" to &e!+ *it$ . %hreat of new entrants:

1. A&%!nt!'e" 3 Br!n& +oy!+ty( 122 ye!r +e'!cy ( p!tent" . 5. Si'niFc!nt entry b!rrier not pre"ent. /argaining power of Customers:

1. Incre!"e& &r!"tic!++y &ue to ne* entr!nt" into t$e !r:et , +oc!+ !n& '+ob!+ copetitor"- .6i&e r!n'e o# c$oice" !%!i+!b+e to cu"toer" . 5. u!+ity nee&" to con"i"tent+y ipro%e !n& pricin' p+!y" !n iport!nt ro+e in or&er to :eep !bre!"t *it$ incre!"in' copetition /argaining power of !uppliers:

1. D!bur $!" ! 122 ye!r" pre"ence !n& it $!" ! %ery "tron' bon& *it$ it" "upp+ier. 5. !" ! po+icy o# !ccount!bi+ity to it" "t!:e$o+&er" ,cu"toer"( "$!re$o+&er"( ep+oyee" !n& "upp+ier" -. Competitors:

P!t!nj!+i ( in&u"t!n Uni+e%er /t& ( T!t! te! ( Ne"t+e In&i! /t& ( Procter 9G!b+e ( )!&bury In&i! /t& ( Rec:itt Benc:i"er /t& ( )o+'!te P!+o+i%e /t& (Brit!nni! In&u"trie" /t&. D!bur nee&" to con"t!nt+y re+oo: it" "tr!te'y !n& :eep rein%entin' !n& br!n&in' it"e+# in or&er !int!in" !n& incre!"e" it" !r:et pre"ence. 8

0

1''!A! and 1C'MM$DA%'$! !egmentation: 

Geo'r!p$ic!+ "e'ent!tionJ O%er"e!" "!+e" 9 intern!tion!+ !r:et "e'ent *$ic$ !re in ! &e%e+opin' "$ou+& be t!ppe& to ! 're!ter etent e.'. Sout$ E!"t A"i! !n& A#ric!.

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Rur!+3Urb!n Se'ent!tionJ ?!ir "$!re "$ou+& be !int!ine& bet*een rur!+ !n& urb!n e.'. !int!in" =23=2 b!+!nce o# !r:et "$!re bet*een "!++ to*n" !n& citie".

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Deo'r!p$ic" Se'ent!tionJ Econoic St!tu" C Mi&&+e !n& Upper c+!"",Pro&uct preiui;!tion *i++ be t$e #ocu".

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A'e ,E%ery !'e 'roup- CB!bie" 2 to  ye!r"( Ki&" C  to 12 ye!r"( out$( /!&ie" ,Mot$er"-

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?!i+y /i#e )yc+e St!'e C ?!i+y *it$ b!bie"( !&o+e"cent( +!&ie".

%argeting: 

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6it$ t$e Porter !n& S*ot !n!+y"i" *e Fn& t$!t D!bur $!"n


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Di'it!+ M!r:et" !re '!inin' *i&e iport!nce "o t$i" !re! u"t be uti+i;e& to #u++e"t.

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