STRATEGIC MANAGEMENT

PROJECT REPORT
DABUR INDIA PRIVATE LTD

SUBMI
TTED BY-
ARPIT SHARMA
(PGFC1603)
JUHI SINGH
(PGFC1605)
SAKSHI JAIN
(PGFC1620)
 UJJWAL PANDEY
(PGFC1645)
VINIT WIG
(PGFC1650)

PEST ANALYSES
POLITICAL FACTORS-
Government intervenes- Government support
the industry to expand and export its
products.
Trading policies- Trading policies are also
favourable for Dabur so that it can export its
products and to grow.

ECONOMIC FACTORS-
Consumer focus- They are continuously
focussing on analysing the consumer needs
and develop products to fulfil their needs.
Living Standard- Rise in the living standard of
people have increased their production level
and produce high quality products.
National Income- If per capita income is more
the amount spend will be more and if per
 capita income is low the amount spend would
be less.
Inflation Rate- Inflation keeps eating the
bottomline for soaps and detergents.

SOCIAL FACTORS-
Rural merchants growing at fast speed.
Role of packaging revolution.
Deliver the positive image of company in
society.

TECHNOLOGICAL FACTORS-
Fast exchange of information has become the
in-thing for stakeholders and consumers.
Faster production with upgraded technology.
Timely delivery.
Best quality of products.

5 FORCES MODEL

PATANJALI
THREAT

BARGAINING POWER
HUL, DABUR AND CUSTOMER
OF SUPPLIERS
ITC SATISFACTION
WEAK BARGAINING POWER OF BUYERS
NEGOTIATI
ON POWER
RELATIVE POWER

OF UNION GOVERNMENT THREAT OF SUBSIDIES

ENACTMENT OF
SURF EXCEL AND
LEGISLATION
ARIEL

THREAT OF NEW ENTRANTS- Patanjali

RIVALRY AMONG EXISTING FIRMS- HUL,
P&G, Dabur, ITC etc.
THREAT OF SUBSTITUTE PRODUCT- Surf
excel and Ariel.
BARGAINING POWER OF BUYERS- Buyers
are large in number so the company has to
be precautious in deciding about the prices
and keep customer satisfied.
BARGAINING POWER OF SUPPLIERS-
Companies has the policy of local buying
and manufacturing which provides an edge
to break power of suppliers and make
them weaker in negotiation.
RELATIVE POWER OF UNION GOVERNMENT
ETC- Government might enact legislation
to affect relative bargaining power of union
or employees in order to raise or lower
negotiated wages to achieve more
 equitable distribution of proceeds from
production.

EFE MATRIX-

OPPORTUNITY WEIGHT DABUR

P&G SCORE
Growth(urban) 0.10 4 0.40
1 0.10
Expansion(rural) 0.10 4 0.40
2 0.20
Customer
Unfulfilled needs 0.15 2 0.30
4 0.45
Advertisement 0.20 3 0.60
3 0.60
Technology 0.05 4 0.20
4 0.20

THREATS
Low profit 0.20 3 0.60
1 0.20
Margin
Competition 0.05 2 0.10
4 0.20
Counterfeit
Products 0.05 4 0.20
2 0.10
Pricing 0.10 2 0.20
3 0.30
TOTAL 1.00 3.00 2.35

KEY INTERNAL FACTORS OF DABUR

STRENGTHS WEIGHT RATING WEIGHTED
SCORE
Far reach 0.05 3 0.15

Brand image 0.06 4 0.24

Distribution

Network 0.07 3 0.21

Welfare

Activities 0.04 3 0.12

Focus markets 0.05 3 0.15

Legacy 0.07 4 0.28

Product

Diversification 0.10 3 0.30

WEAKNESS
Fake products 0.10 2 0.20

Stiff Competition 0.15 2 0.30

Outlet 0.15 1 0.15

Lack of Awareness 0.04 1 0.04

Comparison
With allopathy 0.05 2 0.10

Prescription 0.05 2 0.10

TOTAL 0.98 2.34

PERFORMANCE IMPORTANCE MATRIX

COMPANY
COMPETITOR
RATING
RATING
Strong management 4
2
Strong brand visibility 5
3
Lack of scale 3
4
Pricing power 5
3
Unique products 5
3
Weak cost structure 4
5
Substitute products 5
4
Customer loyalty 6
4
Strong brand name 6
5
Lack of awareness of product 4
5
Strong legacy 6
4
Profitability 3
4
Innovativeness 6
3
VRIN MODEL

VALUBILITY- Customers are ready to pay high

prices for Dabur honey despite of the fact that
many brands have launched their honey at lower
prices because of its ayurvedic use.

RARITY- Rarity of Daburs honey is in its purity as

proven by FASSAI.

INITIMATABLE- Many competitors like Patanjali

and Baidnath have not been able to copy the
quality of its product.

NON-SUBSTITUTABILITY- Should be low enough

for the capabilities so that competitors would not
be able to replace Daburs honey because of its
quality and purity.
 STRENGTHS-

STRONG R&D

STRONG SALES AND SERVICE

SPECIALIST MARKET
EXPERTISE
INTERNAL
LOCATION OF BUSINESS
FACTORS
(IFAS)

WEAKNESS-

LOST BRAND VALUE

POOR QUALITY GOODS

UNDIFFERENTIATED
PRODUCTS
 OPPORTUNITIES-

DEVELOPING MARKET

LOOSENING OF REGULATIONS

REMOVAL OF INTERNATIONAL TRADE BARRIERS

MARKET LED BY WEAK COMPETITORS

EXTERNAL
FACTORS
(EFAS)
THREATS-

NEW COMPETITOR IN YOUR HOME MARKET

COMPETITORS NEW, INNOVATIVE, SUBSTITUTE

PRODUCT

NEW REGULATIONS

INCREASED TRADE BARRIERS

 SFAS
SRATEGIC FACTORS WEIGHT RATING WEIGHTED
COMMENTS
Score
Quality may tag culture 0.10 3 0.30
Financial position of

Dabur is more stable

Hoovers international in India as

compared

Orientation 0.10 4 0.40 to HUL

and P&G.
Financial position 0.10 3 0.30

Global position 0.10 3 0.30

Demographics favour
Economic integration 0.15 4 0.60
individuals.
Demographic focus quality 0.10 4 0.40

Trend to superstores 0.10 4 0.40 Super stores

are
HUL AND P&G 0.15 3 0.45
favouring company
Patanjali 0.10 2 0.20
growth.
Patanjali is a good

Competitor to
dabur.

1.00 3.35

SPACE MATRIX
INTERNAL STRATEGIC POSITION EXTERNAL
STRATEGIC POSITION
COMPETITIVE (CA) INDUSTRY (IS)
(-2) Product quality (+4) Barriers to
entry

(-2) Market share (+4) Growth

potential

(-3) Brand image (+4) Access to

financing

(-3) Product life cycle (+5) Consolidation

(-3) Customer loyalty (+5) Profit potential

Average= -2.6 Average= +4.4

Total x axis score= 1.8

FINANCIAL (FS)
ENVIRONMENTAL (ES)
(+5) ROA (-3) Inflation

(+4) Leverage (-1) Technology

(+5) Liquidity (-2) Demand

elasticity

(+5) Cash flow (-3) Taxation

(+5) EPS (-2) Risk involved

Average= +4.8 Average= -2.2

Total y axis score= 2.6

BCG MATRIX

RAPID MARKET GROWTH

REAL FRUIT JUICE FEM BEAUTY

CARE
WEAK COMPETITIVE POSITION STRONG COMPETITIVE POSITION

HAJMOLA HONITOUS
CHYWANPRASH DABUR BALM
PUDIN HARA DABUR LAL
POWDER
DABUR GLUCOSE
SLOW MARKET GROWTH

OTHER BUSINESS OF DABUR

17% HEALTH CARE PRODUCTS

17% PERSONAL CARE PRODUCTS

18% ORAL CARE PRODUCTS

16% FOOD

6% HOME CARE PRODUCTS

MARKET SHARE=18 TO 19% IN INDIA

 HIGH MEDIUM
LOW

Health suppliments Dabur hair oil

Consumer health
GE MATRIX
(big market and (excessive competition)
division (future focus)

Market leaders)

Dabur foods FEM beauty products

Dabur skin care

(small category)
(except FEM)

Dabur home care Dabur tooth powder

Dabur shampoo
 IE MATRIX

BUSINESSES EFE IFE REASONS

Energy drinks 4.20 3.40 It is the star

product and generates

high revenue.

Personal care 3.10 3.90 Average sale but a

quality product

Food 3.90 3.50 Good market

development

Strategy and
awareness among
Consumers.