Dabur India Ltd.-Globalization

Group K, Section 2

CPG

• CPGS are packaged household goods and supplies• Low profit margin industry relying on high volumes and

cost cutting• 3 major decision making factors for selling CPGs were:

price, brand loyalty and impulse• The Indian market was growing steadily and poised to

triple itself by 2015• Distribution was the key to success as supply chain was

under developed in India logistics was very costly

Dabur

• Dabur , founded in 1984, had over 450 products in 2007 with a strong distribution network

• It had four primary business units: Consumer care, Consumer Healthcare, foods business and international business

• Three unique selling points for the company were:1. It positioned itself as a herbal brand2. Its pricing strategy was for the masses3. It was an Indian company which had developed into a professionals run

organization

Dabur- The road to Globalization

• While in India, Dabur’s competence was in identifying consumer needs and manufacturing products accordingly

• They built up skills in product engineering and localization and focused on channels to drive sales

• A Dubai based subsidiary, DIL, was floated in early 2000s to focus on driving global operations

• The company had seven international subsidiaries by 2006 and five manufacturing units

The way ahead• Dabus divided international markets into two broad groups:

Strategic and Opportunistic markets• The reason for going global was to achieve geographical expansion,

to leverage on their herbal brand and to grow both organically and inorganically

• Dabur stuck to a template for deciding the entry into a market and also categorized customers into : Asian, African and Arabs

• The competition was aplenty with all category of products facing competition from MNCs and indigenous producers

Nigeria?

• It was a point of discussion for Dabur• Dabur was stepping out from its comfort zone by playing

out of its competencies• Dabur was following African consumer, which they didn’t

know, and focusing on personal care products, which they had nor major strength in

• So the question is will they be able to leverage their core competency of being herbal into a market more focused on personal care and cosmetics?

Thank You!