• Focus on growing their core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.
• Be the preferred company to meet the health and personal grooming.
• Needs of their target consumers with safe, efficacious, natural solutions by synthesizing their deep knowledge of Ayurveda and herbs with modern science.
• Provide their consumers with innovative products within easy reach
• Build a platform to enable Dabur to become a global Ayurvedic leader
• Be a professionally managed employer of choice, attracting, developing and retaining quality personnel
• Be responsible citizens with a commitment to environmental protection
• Provide superior returns, relative to our peer group, to our shareholders.
• Dabur incorporates the concept of sustainability by a three pronged approach:
a) Conservation of Energy
Dabur has been undertaking a host of energy conservation measures like use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment.
b) Technology Absorption
Dabur has also made continuous efforts towards preserving natural resources by technology absorption and innovation. Development of in-house technology to convert fruit waste into organic.
c) Health Safety & Environmental Review
• Dabur addresses to the safety of its three core resources – People, Technology and Facilities by having a dedicated “Safety Management Team”, that would not only work towards the prevention of untoward incidents at the corporate and unit level, but also educate & motivate.
Dabur Swot
Strengths in the SWOT analysis of Dabur
• Dabur India is the fourth largest company in FMCG segment.
• Dabur has its own heritage, it is more than 100 years old, established in the year 1884
• It has presence in around 60 countries across the world
• It is the world’s largest ayurvedic medicine provider
• Dabur has extensive distribution service network
• Dabur has the largest distributors in its respective segment
• The top performing five master brands are Dabur, Vatika, Hajmola, Real, Fem
• It has 17 sophisticated manufacturing facilities
• The product length includes around 300 prescribed products and few of them are sold over the counter
• Dabur product categories include health care, personal care Weaknesses in the SWOT analysis of Dabur
• It doesn’t have direct company outlets
• Lack of awareness by customers of products
• Doctors prescribe allopathy medicines as they get more incentives from medical companies
• According to a survey the number of registered practitioners in Ayurveda is less, which is a lower figure when compared to allopathy doctors
• Ayurvedic medicine takes time to cure in comparison to allopathy medicine
Opportunities in the SWOT analysis of Dabur
• Dabur is the world’s largest ayurvedic medicine and its export quantities are constantly in demand in foreign market
• The harmony towards yoga and Hinduism is proving more advantageous towards the reach of ayurvedic medicines globally
• People have started realizing that ayurvedic medicines like Dabur donot have much of side effects
• Growing women’s earning power has made them independent and has made them to be more health and beauty conscious
• Improper and unhealthy food habits due to modernization has forced people to take ayurvedic supplementary like Chavanaprash, Hajmola, and life style medicines
• Ayurveda as a field is receiving much more attention across the world in the last 2–3 years.
Threats in the SWOT analysis of Dabur
• The allopathy players are of major threat as they invest heavily on advertising and distribution of their products through medical representatives
• Some ayurvedic doctors give their own medicines or give a mixture of Ayurvedic Company’s product without packaging (loose medicines). This reduces the sales in the market and dilutes the brand image
• Since ayurvedic medicinal practise is obtained traditionally there are many untrained professions who take up the profession
• Lead and ferric content is more present in many ayurvedic medicine, this may sometime result in reverse side effects when consumer over longer period.
• Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and attend health camps to get cured
PESTEL ANALYSIS ON DABUR INDUSTRY :
POLITICAL FACTORS:
• Government intervences : Government is supporting the industry to export & to expand it’s products & to grow.
• Trading policies : Trading policies are also favourable for the company so it can export it’s products & it also help to expand & grow.
ECONOMIC FACTORS :
• Consumer focus : they are continuously focusing on analyzing the consumer’s needs & are developing products to fulfill their needs.
• Living standard : Rise in the living standards of people have increased their production level, produce high quality & variety of products.
• National income : National income is an important factor because it affects the growth of the organization. If per capita income is more, the amount spent will be more & if it will be lower the amount spent will be less.
• Inflation rate : Inflation means the rise in the value of all the product in the economy, if inflation rate is higher the cost of products will be higher & if inflation rate is lower the cost of product will be lower.
SOCIO-CULTURAL FACTORS :
• Demographics : Demographics helps Dabur to divide the markets in different segments to target a large of customers. For Example- according to family, age, religion, race & gender.
• Distribution of income : This shows that how income is distributed in the economy. It directly affects the purchasing power of the buyers.
• Consumerism : This indicates that a large number of options are available while purchasing of goods to consumers, so the choice becomes easy & quality products can be choose by consumers.
• Education levels : Education is one of the most important factor which influence the buying power of consumer, while selecting a particular good a consumer should know all it’s features so it can differentiate them with another products.
• Law affect social behaviour : Different laws are made by the government to safe guard the rights of consumers. For example- Consumer protection act, this law indicates that a consumer can file a case against a seller if he finds that he is cheated.
TECHNOLOGICAL FACTORS :
• Discoveries & innovation : Continuous innovation in products & processes is the basis of there services. They provide consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader.
• Advancement in technology : Focus on growing their core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.
• Automation : Change in technology will lead to automation, this means that with new technology labour required is less as machines are automatic. Now all the work is machine oriented.
• Obselete rate : Day-by-day new inventions are made so the rate of obselete is higher, as in Computer LAPTOPS have replaced the PC. This shows that the technology becomes obselete very fast.
• Research & development : This department plays a vital role in the development of the organization. As this department always do research that what are the demand of the markets & how to make advancements so the organization can survive in the competitive world.
ENVIRONMENTAL FACTORS :
• Environment regulations : The preferred company to meet the health and personal grooming needs of their target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.
• Environmental protection : Responsible company to protect Ecological system & use Eco-friendly products.
LEGAL FACTORS :
• Companies law : Dabur fulfills all the Company law requirement so as to grow & develop & to sustain in the competitive market.
• Employment law : Employment law provides equal opportunities to every citizen to work & earn his livelihood.
• Consumer protection : This law helps to protect the rights of consumers & he can file a case against seller if he find that he is cheated.
• Industry-specific regulations : These laws are related to industry for example- no industry can establish in between cities i.e. it should be outside the cities.
Initiated a Carbon footprint study with an aim of becoming a carbon
positive company in near future
Porters five forces
Threat of competitors
The threat of competitors is high because there are a lot of players in the market.
• The ayurvedic platform is also being used by other playerslike emami and ayur.
• Premium personal care products face competition frominternational brands as well as boutique products.
Threat of New Entrants
The threat of new entrants is low because entry barriers in terms of building a national brand as well as the distribution network is high and also the exit barrier is also high.
Threat of substitute products
• Substitutability is highest in food category followed by personal care category, where product innovation is high.
• Threat of buyers bargaining power
• The buyers bargaining power is low since they cannot influence the prices to such a great deal.
• Threat of Suppliers bargaining power
• The number of suppliers is low for the home care category. E.g certain oils are not available everywhere which increases the raw material supplier is bargaining power.
Stocks
Dabur India Ltd is considered undervalued based on its historical comparison analysis (KPI: dividend yield), but considered overvalued based on its peer comparison analysis (KPI: dividend yield). However, the historical comparison shows a higher correlation with the stock price of Dabur India Ltd. As a result, this stock is therefore currently considered ‘undervalued’. However Dabur India Ltd would be considered ‘overvalued’ if its price exceeded 4.58 $. Disclaimer: The fact that Dabur India Ltd is considered “undervalued” by the analysis does not mean that its price will rise in the future. Monitor the shareholder returns and other related figures of Dabur India Ltd closely and keep an eye on its external environment when making your investment decision.