Monday, August 29, 2011

Abell’s framework to define business :



Company –Dabur
FMCG  players in an attempt to increase their share of voice. As  a  result  the sector witnessed heightened competitive activity with most FMCG players vying for improving volumes and market share. This also kept pricing  power in  check  with  reluctance  on part of the major  players  to  affect  any significant price hikes. Therefore the growth was largely volume driven and oriented towards mass market. In this intensely competitive environment, Dabur continued to drive  strong volume-led  growth  and posted one of its best  performances,  growing  the Revenues by 20.6% and Net Profit by 28.1%. During  2009-10  Dabur completed the acquisition of Fem  Care  Pharma  Ltd. ('Fem' or 'Fem Care'). The acquisition has added about 3.5% to the  topline during 2009-10. The Company believes this acquisition will open new  vistas of  growth  in  the  fast-growing  skin  care  category  and  will   accrue significant  cost  and revenue synergies.

Customer group:
During  the  year,  the  company test-launched a host  of  new  brands  and products,  including  Dabur Uveda range of Ayurvedic  skin  care  products. Packed  with  herbal extracts derived from a blend of  authentic  Ayurvedic ingredients  that  are documented in Ayurvedic  scriptures  of  Bhavprakash Nighantu and proven actives, the Uveda range is well researched and  proven to  enhance skin tone and texture. The other major launch of the  year  was the  Real Burrst range of fruit-based beverages. Available in  4  variants, this  non-carbonated  light  fruit beverage range offers  the  benefits  of refreshment  and thirst quenching qualities to the consumers.  The  company also introduced two new light hair oil brands - Vatika Enriched Almond hair oil & Dabur Amla Flower Magic hair oil to expand its presence in the  light hair oils category.
Babool,  Dabur's  toothpaste brand in the value  segment,  recorded  strong growth  during the year riding on its value proposition and herbal  equity. Babool  also  marked  its entry into the gel category with  the  launch  of Babool  Mint  Fresh  Gel,  which  has  been  positioned  as  a  good  value proposition  in this category. The launch has been successful  with  Babool Mint  Fresh  Gel cornering a decent share of the gel  segment  within  just three months of its launch.
The  Real & Real Activ franchise maintained the growth momentum during  the year  and also increased their combined share of the packaged  fruit  juice market  in  India. This growth was aided by the launch of  3  new  variants (Real Apple Nectar, Real Peach Nectar & Real Blackcurrant Nectar), a  brand new  ad  campaign  establishing Real's superiority   over  competition  and introduction  of special occasion gifts packs that generated  huge  trials.The  Real Activ brand continued to focus on the 'No added  Sugar'  campaign with aggressive branding and activation activities
The   malted   food drink variant  Dabur  Chyawan Junior,  which  is  now  in  its second year, continues  to  do  well  with consumer sales improving substantially.

Vatika  Hair Oil continued to establish its superiority over plain  coconut oil  and  ended  the  year  with a  good  performance.  Anmol  coconut  oil registered  double digit growth by increasing penetration of the  brand  on the   basis  of  its  value  proposition  and  aggressive   trade   support initiatives.  This  growth, in fact, comes at a time when the  coconut  oil category is showing signs of a slowdown. The year also marked Dabur's entry into the light hair oil market with  the launch  of two new products - Dabur Amla Flower Magic hair oil  and  Vatika Enriched  Almond  hair  oil.  Both the products -  which  were  rolled  out nationally  during  the  course of the year - have been  well  accepted  by consumers and have carved a distinct identity for themselves in a cluttered market.  Light  hair oil market represents an exciting  growth  opportunity with  the  category  size estimated at over Rs 600  crore.  With  consumers increasingly  embracing  light styling hair oils, Dabur -  with  these  two products  -  is  well poised to take advantage of this  shift  in  consumer preference.
Customer need:
Dabur  Chyawanprash, the flagship brand in this category,  reported  strong double digit growth in sales during the year. This growth has come in spite of  a prolonged summer, which is traditionally seen as a lean sales  period for  the  product.  The brand was repositioned this year  on  the  immunity plank,  a  move that ensured good consumer connect in view  of  the  recent outbreak  of  flu and viruses across India. Dabur Chyawanprash  seized  the opportunity and undertook a mega awareness building campaign across  India, underlining the need to strengthen the body's immune system to fight  these new-age  flus  & viruses. Christened Immune India,  this  campaign  brought together  Ayurvedic doctors & experts from across the country,  along  with the  Dabur Chyawanprash  Brand Ambassador, to drive home  the  message  of strengthening  immunity  through  Ayurvedic  products,  particularly  Dabur Chyawanprash.
Dabur  Honey,  the largest selling brand of honey in the country,  was  re-launched  during  the  year  with a new logo. The  product  was  also  made available  in a Rs 10 pack, which has been hugely successful and has  added new consumers to the brand. Our market intelligence revealed that consumers had  a  distinct  need  to use Honey for feeding it  to  children  and  for religious usages. This new SKU helped us address this need. The  Company  also launched the second edition of  its  Honey-based  Recipe Book,  titled  Big  Bee's Health Secrets, which  was  launched  by  Amitabh Bachchan, the brand ambassador for Dabur Honey. Dabur continued to leverage and  take forward the brand message of 'healthier alternative to sugar'  to increase the franchise for Dabur Honey.

Alternate technology:
The past 12 months have seen Dabur update and upgrade its portfolio in line with  changing  consumer demands and aspirations. In terms of  product  and packaging  innovations, the Company successfully developed new variants  in Hajmola,  a  new  range of Ayurvedic skin  care  products  and  fruit-based beverages,  new variants in shampoo, a range of light hair oils and  a  new gel toothpaste besides new packaging for Dabur Red toothpaste, Odonil and a host of new OTC products
Application  of latest scientific tools to prove the efficacy of  Ayurvedic formulations, products and medicines has been another major endeavour  with DRDC.  This has helped the company identify hitherto unknown  mechanism  of action  of  Ayurvedic  medicines.  Keeping pace  with  the  development  in science,  bio-marker  based  studies were also conducted  to  validate  the efficacy  of Ayurvedic products like Mahanarayani Tail, Dabur  Chyawanprash and Dabur Chyawan Junior
The  energy conservation and green initiative, which was introduced in  the 2008-09  financial  year, continued this year with  the  implementation  of alternative fuel technologies for steam generation at several of its units, both in India and in overseas locations. A new manufacturing technology for extraction  of  medicinal  actives from herbs was  rolled  out  at  various locations  during  the  year, generating efficiency  in  energy  costs  and providing cleaner & safer manufacturing procedure at the units

References:
Capitaline database :-  DABUR INDIA LIMITED;ANNUAL REPORT 2009-2010;MANAGEMENT DISCUSSION AND ANALYSIS

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