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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