Company profile
Dabur India Ltd
Group Members
Abinu John
Gagandeep Chadda
Kunal Desai
Sakshat Puro
Sakshi Gantawar
Swaroop Bhagat
Established in 1884 : 125 Years of Trust & Excellence
India’s leading FMCG Companies with Sales of Rs.52,832 million , Market
Capitalization of Rs.2,09,133million & Net profit of Rs.6,449million
World’s largest Ayurvedic and Natural Health Care Company
Consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home
Care and Foods
Distribution network, covering over 2.8 million retail outlets
Available in over 60 countries across the globe
17 world class manufacturing plants catering to needs of diverse markets
Dabur's overseas revenue today accounts for over 30% of the total turnover
Calculation for above table:-
Product length is 21
Product width is 5
Hair oil product line depth is 4
Shampoo prod line depth is 5
Oral care prod line dept is
4
Baby care prod line dept is
4
Baby care product line dept is
5
Health supply product line dept is
3
Product mix consistency strategy
Product mix consistency strategy is the amount of difference exists in the line of products.
Dabur serves in FMCG sector. The relationship is close with the product mix so it is set
to be highly consistent.
BECAUSE:
The distribution channel used by Dabur is same
Communication and branding channels
Same customer base
Similarity in raw material and packing material
SBU wise Contribution to sales
3.50%
C
30.30%
onsumer Care
56%
Foods
10.15%
International Business
Others
Highlights
Strategic positioning of Honey as food product, leading to market leadership (over 75%)
in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market
share.
Hajmola tablets in command with 60% market share of digestive tablets category. About
2.5 crore hajmola tablets are consumed in India every day
Leader in herbal digestives with 90% market share
Pricing strategy:
Price is the value that is put to a product or service and is the result of a complex set of calculations,
research and understanding and risk taking ability. A pricing strategy takes into account segments,
ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others.
It is targeted at the defined customers and against competitors.
There are different pricing strategy used by different organization:
Types of pricing strategy:
Dabur pricing strategy:
Dabur has hired a special professional team to make their pricing strategy effective and profitable.
They check with every market changes and make decision accordingly; they make systematic and
regular research on competitor products and comparison between their product. After analyzing and
evaluating every aspect of product pricing strategies is been fixed. As dabur deals with healthcare
and ayurvedic products so there motto is to keep their product price minimize so reach of product in
customers should be more.
Pricing strategy often includes the reaction of the client. Whenever a commodity experiences an
adverse cost reaction, the company pulls out all of its discount or special counter-attack schemes.
The price rise is small at times, but the pack size is limited so that it is compensated by both the
customer and the manufacturer. In such times, a price increase becomes mandatory and then the
customer's loyalty is checked. As the company's output is at a far higher level than most, it is capable
of maintaining its client base. A individual can easily purchase Dabur products from the many
regions on the market. Dabur has maintained the quality of its goods and, compared to other brands,
its prices are very fair.
Dabur pricing strategies depends on factors are :
a) Competitor : in fmcg sector dabur are competing with very large companies in market who
have good brand name in market. When dabur don’t have competeion they are free to fix any
cost in market . but as there are many competitors in market they have to fix their fixed cost
and variable according to their competitors price to gain profit and customer
b) Cost :
One of the most important factor to take care while pricing is the cost costs set the floor for
pricing decisions. There are two types of cost variable cost and fixed cost. It is important that
the price should recover all costs including a fair return for undertaking the marketing effort
and risk
c) Consumer demand :
Dabur learned that the majority of Indian population tends to go towards the Indianised
natural and herbal products thus they made it their USP. Dabur is efficiently leading the
market with this product range, providing the customers with special products easily.
Pricing policy used by dabur
1. Premium pricing policy :
Premium pricing strategy is used for product with unique quality or high quality product .
dabur has different type of product some are economical product and premium product so
they fix their premium product price according to premium pricing strategy
2. Penetration pricing :
Penetration price is used to penetrate there product in market so, dabur uses penetration
pricing for econmoic products of dabur so it can catch for customers of market .
Price band Strategy
Price bands are used to provide guidance to buyers.
They are also frequently used in importing and exporting, whereby countries set top
and bottom prices for certain goods sold within its borders. Countries then subject
goods whose prices fall below a certain price to taxes or duties to force the price back
into the band.
A price band is a price floor and a cap between which a seller will let buyers place
bids on a security, usually during an initial public offering
For example, let's say Company XYZ is going to go public. As part of the IPO
process, Bank ABC (Company XYZ's investment bank) sets a price band on its shares
of Rs45 to Rs50 per share. This means that buyers must bid at least $45 a share for the
first issue of the shares.
ICICI Securities has given a buy rating to Dabur India with a target price of Rs 550.
The share price moved up by 0.74 per cent from its previous close of Rs 515.60. The
stock’s last traded price is Rs 519.40.
