Dabur India Limited. Success Thru Innovation – A Case Study
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Food, Drugs, Healthcare, Life Sciences
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Dabur Balance Sheet
Dabur Cash Flow Statement
SWOT Analysis of Dabur
Dabur SWOT Analysis highlights its strengths in herbal products, opportunities in global expansion, weaknesses in dependency on rural markets, and threats from competition.
Strengths
- Market Share: Dabur India has an impressive market share within different segments like oral care (15.8%), beverages (19.8%) and hair care (18.9%).
- Economies of Scale: As it’s a big brand with economies of scale, it can compete at lower prices, and it would be difficult for its competitors to compete or fabricate its product at lower prices.
- Digital Marketing & E-Commerce presence: Dabur has an impressive e-commerce presence, helping it reach a wider consumer base.
- National Presence: Dabur is an Indian FMCG company that sells products based on Ayurveda. It has nearly 6.7 million retail outlets across India, and its portfolio includes eight brands in different sectors.
- Health Brand: Dabur successfully established itself as a healthcare brand. Its Ayurvedic preparations include health supplements, digestives and other OTC products.
Weaknesses
- Highly Competitive Industry: The FMCG industry is dynamic and highly competitive, with diverse consumer preferences and pricing strategies.
- Competition in International Markets: Dabur faced tough competition in international markets, especially in the toothpaste segment.
- Highly Regulated Market: Regulatory compliance is higher in Indian markets for FMCG companies.
- High Turnover Rate: Due to the frequent use and short shelf life of FMCG, the industry turnover rate is high. These goods are produced and manufactured in large quantities and sold in high volumes.
Opportunities
- Inelastic Demand: Usually, the demand for any product or industry is affected by various factors. However, the demand for FMCG is inelastic, i.e., changes in market conditions will have a minimal impact on demand.
- Strong Brand: Dabur has established itself as a strong brand, and people, even in rural areas, know it, making it a household name.
- Price Setters: Customers prefer choosing one product over another if they have brand loyalty. The sellers can also charge a marginally higher price and may become price setters to a certain extent.
- Ayurvedic Product Portfolio: Ayurvedic product demand is increasing in India & abroad.
- Focus on Health: Now, people focus more on healthcare products and brands, so Dabur is well placed in this segment.
Threats
- Monopolistic Competition: In monopolistic competition, there are many buyers and sellers. But they all do not sell homogeneous products. The products are similar, but all sellers sell slightly differentiated products. Hence, this sector is highly competitive.
- Big Portfolio: Dabur has a big portfolio and a wide product range. There is a threat of duplication from local brands that can make duplicate products and sell them under Dabur’s brand name.
Competitors of Dabur India
- Colgate-Palmolive
The company has a robust track record, making it a leading FMCG Company in India and the world’s largest Ayurvedic and natural healthcare company, with a portfolio of over 250 Herbal / Ayurvedic products. It maintains a clear vision for the future. However, competitors and regulations governing the FMCG industry present some challenges. As India grows and natural healthcare demand increases, Dabur is poised to play a significant role.
The company becomes a true winner against its competitors if it handles its challenges efficiently and takes advantage of future opportunities in a timely manner. Further, we recommend consulting with your financial advisor before making any investment decision.
Frequently Asked Questions (FAQs)
When did dabur india start trading at nse.
It started trading on November 3, 1994.
What type of market does Dabur India compete in?
It operates in a monopolistic market where many buyers and sellers compete with slightly differentiated products.
How many business segments does Dabur have?
It operates in three segments, namely 1) Home & Personal Care, 2) Health Care, and 3) Food & Beverages.
Who is the CEO of Dabur?
Mohit Malhotra is Dabur’s chief executive officer.
What makes Dabur Unique?
It blends traditional knowledge of Ayurveda with modern-day science and is famous for its natural ingredients.
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