entry stratergy of dabur

Group 3

DABURUSP: NATURAL AND AYURVEDIC FMCG PRODUCTS.

• It was founded in the year 1884 by Dr. S K Burman

• Dabur is a Public ltd Ayurvedic company and has its headquarters in Ghaziabad

• It has two hundred and fifty products. Popular brand with outlets in Africa, Europe, United States, Russia, SAARC Countries and Middle East Countries

• Product categories are oral care, hair care, skin care, food products, health and home-care products

• The prices are kept minimum so that people can buy natural products which are healthy

•  Distribution Network : 2.8 million retail outlets

Maximizing Shareholder’s WealthShareholders wealth

Profitability

Reduce cost

Add value & Increase cost

Profit growth

Sell more

Expansion

Netherlands

Government subsidies to ayurvedic and natural

products.

European union is the biggest market with the share 45% of

total herbal market.

Access to portsOne of the world’s best agricultural countries

World’s 4th best logistics performance

Base for EU countries

Source: http://lpi.worldbank.org/international/global?sort=asc&order=Infrastructure

Global Standardization Strategy

Localization

Transnational Strategy

International Strategy

Pressure of local responsiveness

Cost

Pre

ssur

e

High

High

Low

ENTRY STRATEGY

LEGAL COSTS

BUREAUCRACYRED TAPISM

INFRASTRUCTURE COSTS

UTILITYWAREHOUSING

TRANSPORT

COST ANALYSIS

Number of days for processing: 4 days

Average number of procedures to be followed: 4/10

Land, labor, electricity, gas, inbound and outbound freight

Source: http://www.heritage.org/index/ranking

BENEFITS Increase in employment Increase in purchasing

powerIncrease in disposable income

RISK• POLITICAL RISK: LOW Democratic

• LEGAL RISK: LOW Civil Law

• ECONOMIC RISK: LOW Sustainable GDP And PPP BREXIT

• TIME: FOLLOWER • SCALE: LARGE SCALE• HOW: GREENFIELD INVESTMENT

ENTRY STRATEGY

Demand for ayurvedic products increasing 4.6%

Porter’s Diamond Model

Firm Strategy, Structure And Rivalry

Demand Conditions

Related And Supporting Industries

Factor Endowments(Basic And Advanced)

Land , Labor, Capital, Proximity To Raw Materials. Research Facilities,

Infrastructure, Logistics, Namaste labs, Machinery.

Domestic Demand

Strong Competition From:•Online Websites•Maharishi Ayurveda

Source: http://www.heritage.org/index/rankinghttp://lpi.worldbank.org/

Frequent buying customersAll age groups

Dabur India. 4th largest FMCG company in India. Operations in

several countries. Purchased Namaste Lab.

Maharishi Ayurveda Products Pvt. Ltd. incorporated in 1986

It is the major player in Netherlands

Political stabilityEmerging middle class

populationEmerging of latest technology

Ayurveda is acceptable culturally

Access to key ports, airways, and railways.(ESSAR)

Developing strong alliances with suppliers/wholesalers

CUSTOMER

CLIMATE

COLLABORATION

COMPANY

COMPETITOR

5C ANALYSIS

MARKETING PLAN

1. Fragmented and concentrated

2. Channel length – long ( we will be selling through Albert Heijn, Jumbo)

3. Channel quality – HIGH : due to these international retailers

4. Channel exclusivity is very low

Distribution strategy

1.Cultural barriers – minimum

2.Source and origin effects –India’s brand image as the ayurveda and herbs hub

3.Pull strategy and push

Communication Strategy

POSITIONING

• Ayurvedic FMCG

• Affordable Product

• Trusted household name

Target

Age : All age group Income : low and

middle income group Occasion of Usage :

Regular + Health conscious people

Advertising strategy

TelevisionRadioNews paperDigital marketing

Pricing strategy

Competitive pricing

SEGMENTATION

• Demographic• Geographic• Psychographic• Behavioural

Make/buy Facility Suppliers Wholesalers/ distributors/retailers

Logistics

Make Location:

Tilburg

Near to

Rotterdam port

Export port :

Hyderabad, Nhava

Sheva sea,

Sabarmati icd

Entry port :

Rotterdam

Shipping partner:

ESSAR

•Vetrivel herbals•Govardhan enterprises•Jay jalaram•Raj & company•Dabur’s own cultivation

Unstructured

•Udea•Natudis•Odin•Other retail outletsStructured•Jumbo•Albert heijn

Technology

Daburnet : currently in Egypt, Nepal, UAE, India

Expand for EU with headquarters in netherlands

Operations plan

• Ranked No. 2 in the world for overall logistics performance

Source:http://biz.allyface.com/india/suppliers/biz-dabur

HR PLAN

Consumer Care

Foods & Beverage

Consumer Health Care

Dabur Asia Division

Dabur Africa

Division

Dabur N America

Division

Dabur Europe Division

Organizational Structure

Staffing Policy

Poly Centric Policy

Global Matrix

Control Mechanism

Bureaucratic

Headquarters:India

FINANCIAL PLAN

I. Infrastructure

II. Working capital

III. Operating expenses

Purpose of funds

Capital structure

debt equity

Source of funds BondsBank loans

Cost of debtLoan- 1.36%Bond-2.2%

Source of funds

Risk mitigation – Hedging, Letter of credit

Risk transfer - Insurance

Risk acceptance – R&D, Forex fluctuations.