dabur

Ti t l e o f P ro j ec t

A Summer Training Project Submitted in partial fulfillment of the requirements for the Award of degree of Bachelor of Business Administration

2008 – 2011

Submitted by Guided by(Internal Guide)

Bharati Vidyapeeth University School of Distance Education,Academic Study Center - BVIMR, New Delhi

An ISO 9001:2008 Certified Institute“A” Grade Accreditation by NAAC

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Certificate from the Company/Organization(On Company Letter head)

This is to certify that (Name of the student) son/daughter of (name of the father)

pursuing the degree of Bachelor of Business Administration of BVU, SDE,

Academic Study Center BVIMR, New Delhi has successfully completed Project

Report in our organization on the topic titled, “Title of the Project” from

________to _______ 2010. During his/ her project tenure in the organization/

company, we found him/ her hard working, sincere and diligent person and his/

her behavior and conduct was good during the project. We wish him/her all the

best for his/ her future endeavors.

(Name and designation of the Industrial Guide)

Comments of Guide1.2.3.

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Student Undertaking

This is to certify that I ____________________________ had completed the Project

titled   “ title of the project” in (name of the company) under the guidance of Mr./Ms.

(Faculty guide) in the partial fulfillment of the requirement for the award of degree of

Bachelor of Business Administration of BVU, SDE, Academic Study Center BVIMR,

New Delhi.   This is an original piece of work & I had neither copied nor submitted it

earlier elsewhere.

Student Name and Signature

Dated -

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Certificate

(on Academic Center Letter Head)

This is to certify that the project titled “________________________________” is an

academic work done by “________________________” submitted in the partial

fulfillment of the requirement for the award of the Degree of Bachelor of Business

Administration from BVU SDE, Academic Study Center BVIMR, New Delhi under

my guidance and direction.  To the best of my knowledge and belief the data and

information presented by him/her in the project has not been submitted earlier.

Name and signature of Faculty Guide

Comments of Faculty Guide1.2.3.4.

Comments of Viva Team

1.2.3.4.

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  Certificate

(on Academic Center Letter Head)

This is to certify that the Project titled “_________________________________” is an

academic work done by “________________________” submitted in the partial

fulfillment of the requirement for the award of the Degree of “Bachelor of Business

Administration” from “BVU, SDE, Academic Study Center BVIMR, New Delhi”.  It

has been completed under the guidance of Mr. /Ms. _______________ (Internal Guide)

and Mr. / Ms. _______________ (Corporate Mentor). We are thankful to (Name of the

Company) for having allowed our student to undergo project work training under the

guidance of ___________________(Corporate Mentor).

Dr. Sachin S. Vernekar(Director)

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Acknowledgement

Name  & signature of the student

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Preface

Name  & signature of the student

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Index

Chapter 1 : Introduction

About the Company (Formation, Vision, Mission, Objectives,

Functions, Organizational Structure, SWOT Analysis)

Industry Analysis (Growth of Industry, Players in Industry, PESTEL

Model, Porters five forces model of competition)

Chapter 2 : Research Methodology Statement of the Problem

Objectives & Scope of Study

Managerial usefulness of study

Type of Research and research Design

Data Collection Methods

Limitations of Study

Chapter 3 : Conceptual Discussion Review of Literature (Discussion about the work done by others on

similar issues and published in articles/books etc)

Current Issues (From Newspaper, Journals –For Company and

Industry)

History and Developments of Company and Industry

Chapter 4: Data Analysis – Methods and techniques of data analysis (Questionnaire, Graphs,

Statistical Methods, SPSS etc)

Primary Data Analysis

Secondary Data Analysis

Chapter 5: Findings and Recommendations

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Appendices

Here sample Questionnaires, FAQ (Frequently Asked Questions) and any other relevant

documents may be included.

Bibliography

Reference Books, Journals, Newspapers, Web Sites, Reports etc are to be listed out here.

Books

Kotler Philips, Marketing Management Analysis, Planning Implementations & Control

Edition, 1998. Prentice Hall of India Ltd. New Delhi.

Magazines Journals & Newspaper.

Name of the articles, Business Today: 15-22 May 2000

Name of the articles, The Times of India. Mumbai: 21st May 2000.

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Chapter 1Chapter 1

INTRODUCTIONINTRODUCTION

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1. COMPANY PROFILE 1. COMPANY PROFILE

The story of Dabur began with a small, but visionary endeavor by Dr. S. K. Burman, a

physician tucked away in Bengal. His mission was to provide effective and affordable

cure for ordinary people in far-flung villages.

Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he prepared

Ayurvedic medicines to treat diseases like malaria, plague and cholera that had no cure

during that period. It was his dedication, commitment and empathy that made Dabur a

renowned name among the masses. And today, after more than 120 years, Dabur is

known for its trustworthiness more than anything else.

During this passage of time, Dabur went through several structural and strategic changes

to maintain its market strength. The real mass production started in 1896. Early 1900’s

saw Dabur emerge as the first company to provide health care through scientifically

tested methods.

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It achieved significant improvements after setting up Research and Development centers

and manufacturing automation. The launch of Dabur’s Amla hair oil and Chyawanprash

was a boon to the expanding business. To keep up with the times, Dabur computerized its

operations in 1957. It’s Dant Manjan and digestive tablets were widely accepted as well.

However with a large product portfolio in the market, Dabur had to maintain operational

efficiency. To make sure it adjusted to the business environment it became a public

limited company in 1986 followed by diversification in Spain in 1992. A major change

came when Dabur came up with its IPO in 1994. Because of its position, Dabur’s issue

was 21 times oversubscribed. Dabur further divided its business into three separate

groups:

Health Care Products DivisionHealth Care Products Division

Family Products DivisionFamily Products Division

Dabur Ayurvedic Specialties LimitedDabur Ayurvedic Specialties Limited

Dabur India Limited is a consumer care and health care products company. Product

portfolio offered by the company includes personal care products, health care products,

home care products and foods. Dabur also offers ayurveda-based healthcare products. It

markets its products in India as well as in International markets as Middle East, South-

East Asia, Africa, the European Union and America. The company operates through four

divisions namely Consumer Care Division (CCD) that deals in FMCG products across a

wide spectrum of market segments; International Business Division (IBD) that focuses on

developing Dabur's business abroad; Consumer Healthcare Division (CHD) that deals in

the classical and OTC range of products which are grantha based and which follow strict

Ayurvedic formulations; and Retail Division which is currently in the development

phase. The company is headquartered at Ghaziabad, Uttar Pradesh, India.

In 1998, for the first time in the history of Dabur, a non-family member took charge.

Dabur handed over the operations to professionals. Successful implementation of

procedures, timely changes and maintaining its essence, Dabur achieved its highest-ever

sales figure of Rs 1166.5 crores in 2000-01.

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As FMCG sector was struggling with the slow growth in the Indian economy, Dabur

decided to take numerous strategic initiatives, reorganize operations and improvise on its

brand architecture beginning 2002. It decided to concentrate its marketing efforts on

Dabur, Vatika, Anmol, Real and Hajmola to strengthen their brand equity, create

differentiation and emerge as a pure FMCG player recognized as a herbal brand. This

was chosen after a study with Accenture, which revealed that Dabur was mainly

perceived as a Herbal brand and connected more with the age group above 35.

Also, larger retailers were making their foray into the FMCG market. Apart from HLL,

P&G, Marico and Himalayan, ITC was also posing a challenge. The supply chain of

Dabur was becoming complex because of the large array of products. Southern markets

share in the sales figure was negligible. These factors posed a threat to Dabur and hence

small changes were not enough.

Company Detail of DaburCompany Detail of Dabur

Date of Establishment 1975

Revenue 478.61 ( USD in Millions )

Market Cap

137295.4575975 ( Rs. in Millions )

Corporate Address 8/3 Asaf Ali Road, , New Delhi-110002, Delhi

Management Details Chairperson - Anand Burman

Business Operation Household & Personal Products

Company Secretary Ashok Jain

Bankers ABN Amro Bank, Citi Bank, HDFC Bank, HSBC Bank, IDBI Bank, Punjab National Bank, Standard Chartered Bank, State Bank of India, United Bank of India

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1.1 COMPANY HISTORY OF DABUR INDIA 1.1 COMPANY HISTORY OF DABUR INDIA

1884 Birth of Dabur.1884 Birth of Dabur.

1896 Setting up a Manufacturing plant.1896 Setting up a Manufacturing plant.

Early 1900’s Ayurvedic Medicines.Early 1900’s Ayurvedic Medicines.

1919 Establishment of research laboratories.1919 Establishment of research laboratories.

1920 Expand further.1920 Expand further.

1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi.1972 Shift to Delhi.

1979 Sahibabad factory/ Dabur Research Foundation.1979 Sahibabad factory/ Dabur Research Foundation.

1986 Public Limited Company.1986 Public Limited Company.

1992 Joint Venture with Agrolimen of Spain.1992 Joint Venture with Agrolimen of Spain.

1993 Cancer Treatment.1993 Cancer Treatment.

1994 Public Issues.1994 Public Issues.

1995 Joint Ventures.1995 Joint Ventures.

1996 3 Separate divisions.1996 3 Separate divisions.

1997 Food Division/Project STARS.1997 Food Division/Project STARS.

1998 Professional to Manage the Company.1998 Professional to Manage the Company.

2000 Turnover of Rs. 1000 crores.2000 Turnover of Rs. 1000 crores.

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1.2 VISION & MISSION OF DABUR INDIA1.2 VISION & MISSION OF DABUR INDIA

VISION OF DABUR VISION OF DABUR

After the successful implementation of the 4-year business plan from 2002 to 2006,

Dabur has launched another plan for 2010. The main objectives are:

Doubling of the sales figure from 2006

The new plan will focus on expansion, acquisition and innovation. Although

Dabur’s international business has done well — growing by almost 29 per cent to

Rs.292 crores in 2006-07, plans are to increase it by leaps and bounds.

Growth will be achieved through international business, homecare, healthcare and

foods.

Southern markets will remain as a focus area to increase its revenue share to 15

per cent.

With smoothly sailing through its previous plans, this vision seems possible. Time

and again, Dabur has made decisions that have led to its present position.

However, if Dabur could be more aggressive in its approach, it can rise to

unprecedented levels.

MISSION OF DABUR MISSION OF DABUR

Dabur believes in the mission of being a leader in the Natural Foods & Beverages

Industry. Dabur aims in offering quality products and distributing higher returns to

stakeholders. "Real" and "Real Active" are the two fruit juice brands of Dabur, which are

packaged in different flavors like – Mixed Fruit Cucumber Spinach Juice and Mixed

Fruit Beetroot Carrot Juice.

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Apart from food, Dabur Health Care offers wide range of ayurvedic and Health care

products. Dabur Consumer Health is the department that deals with the marketing of

Ayurvedic medicines worldwide. Dabur offers 350 Shastriya (Classical) ayurvedic

treatments and solutions.

After a lot of market research Dabur Foods came up with a new brand named as “Nature's

Best”, which was the initial brand of Dabur Food Services Network. The 1kg Nature's

Best Tomato Ketchup was successfully launched after that.

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1.3 OBJECTIVES OF DABUR INDIA1.3 OBJECTIVES OF DABUR INDIA

The Objectives of Dabur India Limited are as follows:-The Objectives of Dabur India Limited are as follows:-

Focus on growing 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

target consumer with safe, efficacious, natural solution by synthesizing deep

knowledge of ayurveda and herbs with modern science.

Be a professionally managed employer of choice, attracting, developing, and

retaining quality personnel.

Be responsible citizen with a commitment to environmental protection.

Provide superior returns, relative to our peer group, to our shareholders.

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1.4 BOARD OF DIRECTORS OF DABUR INDIA1.4 BOARD OF DIRECTORS OF DABUR INDIA

Dabur has an illustrious Board of Directors who is committed to take the company to newer levels of corporate governance.

The Board comprises of:

Chairman Vice-Chairman Dr. Anand Burman Mr. Amit Burman

Whole Time Directors

Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman

1.4 SWOT ANALYSES OF DABUR INDIA1.4 SWOT ANALYSES OF DABUR INDIA

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The following SWOT analysis looks at Dabur India which is operating in fmcg industry.

The analysis shows Dabur India’s Strengths, Weaknesses, Opportunities and Threats. The

SWOT analysis will give you a clear picture of the business environment Dabur India is

operating in at the present time.

The strengths of a business or organization are positive elements, something they do well

and is under their control. The strengths of a company or group and value to it, and can

be what gives it the edge in some areas over the competitors. The following section will

outline main strengths of Dabur India.

Dabur India Ltd. is the century old company.

Well established brands in Dabur India.

High quality machinery, staff, offices and equipment ensure the job is done to the utmost standard, and is strength of Dabur India.

Leader in Herbal Digestive where the product has 90% of the market share.

Ayurvedic / Herbal Product line.

Product development strength

Strong Distribution Network.

Extreme Supply chain.

IT initiatives.

Weaknesses of a company or organization are things that need to be improved or perform

better, which are under their control. Weaknesses are also things that place you behind

STRENGTHSTRENGTH

WEAKNESSWEAKNESS

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competitors, or stop you being able to meet objectives. This section will present main

weaknesses of Dabur India.

A serious weakness for Dabur India is the fact their products/services are of low quality, meaning people will have better-quality substitutes.

Not reducing costs in the same way as their competitors\' means Dabur India is outlaying more of their profits. Having higher costs than competitors is a major weakness.

Over pricing, setting too high prices for Dabur India products/services makes them uncompetitive, which is a major weakness.

Seasonal Demand (like Chayawanprash in winter and Vatika not in winter).

Low penetration (Chayawanprash).

Opportunities are external changes, trends or needs that could enhance the business or

organization’s strategic position, or which could be of a benefit to them. This section will

outline opportunities that Dabur India is currently facing.

Extends Vatika brand to new categories like Skin Care & Body Wash segments.

Untapped Market (Chayawanprash).

Market Development.

Southern India Market.

Innovation.

Threats are factors which may restrict damage or put areas of the business or organization

at risk. They are factors which are outside of the company's control. Being aware of the

THREATSTHREATS

OPPORTUNITIESOPPORTUNITIES

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threats and being able to prepare for them makes this section valuable when considering

contingency plans and strategies. This section will outline main threats Dabur India is

currently facing.

Competition in the FMCG sector from well established names.

Substitute products available on the market present a major threat to Dabur India.

Consumer lifestyle changes could lead to less of a demand for Dabur India products/services.

Existing Competition (like Himani, Baidyanath and Zandu for Dabur Chayanwanprash and Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil).

New Entrants in the market.

2. INDUSTRIES ANALYSIS OF FMCG SECTOR2. INDUSTRIES ANALYSIS OF FMCG SECTOR

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The Indian FMCG sector is the fourth largest sector in the economy with a total market

size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a

well established distribution network, intense competition between the organized and

unorganized segments and low operational cost. Availability of key raw materials,

cheaper labour costs and presence across the entire value chain gives India a competitive

advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in

2015. Penetration level as well as per capita consumption in most product categories like

jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market

potential. Burgeoning Indian population, particularly the middle class and the rural

segments, presents an opportunity to makers of branded products to convert consumers to

branded products. Growth is also likely to come from consumer 'upgrading' in the

matured product categories. With 200 million people expected to shift to processed and

packaged food by 2010, India needs around US$ 28 billion of investment in the food-

processing industry.

WHY INDIA

Large domestic marketLarge domestic market

India is one of the largest emerging markets, with a population of over one billion. India

is one of the largest economies in the world in terms of purchasing power and has a

strong middle class base of 300 million.

Rural and urban potential

Rural-urban profile

Urban Rural

Population 2001-02 (mn household)

53 135

Population 2009-10 (mn 69 153

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household)% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3

Around 70 per cent of the total households in India (188 million) reside in the rural areas.

The total number of rural household’s is expected to rise from 135 million in 2001-02 to

153 million in 2009-10. This presents the largest potential market in the world. The

annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-

02. With growing incomes at both the rural and the urban level, the market potential is

expected to expand further.

India - a large consumer goods spender

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on

personal care products. The large share of fast moving consumer goods (FMCG) in total

individual spending along with the large population base is another factor that makes

India one of the largest FMCG markets.

Consumption pieConsumption pie

Consumer expenditure on food (US$ billions)Consumer expenditure on food (US$ billions)

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Change in the Indian consumer profile

Consumer Profile

1999 2001 2006

Population (millions) 846 1,012 1,087

Population < 25 years of age 480 546 565

Urbanization (%) 26 28 31

Rapid urbanization, increased literacy and rising per capita income, have all caused rapid

growth and change in demand patterns, leading to an explosion of new opportunities.

Around 45 per cent of the population in India is below 20 years of age and the young

population is set to rise further. Aspiration levels in this age group have been fuelled by

greater media exposure, unleashing a latent demand with more money and a new

mindset.

Demand-supply gap

Currently, only a small percentage of the raw materials in India are processed into value

added products even as the demand for processed and convenience food is on the rise.

This demand supply gap indicates an untapped opportunity in areas such as packaged

form, convenience food and drinks, milk products etc. In the personal care segment, the

low penetration rate in both the rural and urban areas indicates a market potential.

FMCG Category and products

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Category Products

Household Care

Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor

cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish).

Food and Beverages

Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks;

processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar;

juices etc.Personal Care Oral care, hair care, skin care, personal wash (soaps);

cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper products.

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2.1 GROWTH RATE OF FMCG INDUSTRY IN INDIA2.1 GROWTH RATE OF FMCG INDUSTRY IN INDIA

The fast moving consumer goods (FMCG) sector would witness over 40 per cent growth

in the semi-urban and urban areas, according to an analysis carried out by the Associated

Chambers of Commerce and Industry of India on `Future prospects of FMCG'.

The size of the sector would go up from the present Rs 38,500 crore to Rs 50,000 crore

by 2010, says the analysis.

In urban India alone, the sector would witness over 100 per cent growth with its size

increasing to Rs 35,000 crore by 2010 from the present Rs 16,500 crore, says the analysis

adding that the overall size of the sector, which would include the rural and semi-urban

market, would grow to Rs 85,000 crore.

In the year 2003-04, the size of the FMCG sector stood at Rs 47,500 crore, which

increased to Rs 55,000 crore by December 15 of this year, registering an increase of 16

per cent.

Currently, the urban market for FMCG is growing at an annual growth rate of around 20

per cent while the growth for semi-urban and rural areas is less than 10 per cent, says the

analysis.

Though the semi-urban and urban market for FMCG would grow larger, according to the

analysis, it is bound to put a severe pressure on the margins of manufacturers of FMCG

products due to intense competition.

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2.2 PLAYERS IN FMCG INDUSTRY IN INDIA2.2 PLAYERS IN FMCG INDUSTRY IN INDIA

CompanyCompany Last priceLast price MarketMarket Cap.(Rs.Cap.(Rs.

Cr.)Cr.)

SalesSales TurnoverTurnover

NetNet profitprofit

Total AssetsTotal Assets

HULHUL 281.60 60,810.73 17,725.33 2,202.03 2,583.52

Dabur IndiaDabur India 103.40 17,999.08 2,874.60 433.15 855.45

GodrejGodrej ConsumerConsumer

387.30 12,532.65 1,267.88 248.12 839.87

ColgateColgate 908.95 12,361.07 1,770.82 290.22 330.70

MaricoMarico 144.10 8,853.50 2,030.85 235.02 948.58

P And GP And G 1,914.45 6,214.45 904.46 179.76 534.65

Gillette IndiaGillette India 1,884.55 6,140.85 852.48 137.10 570.99

Jyothy LabsJyothy Labs 219.60 1,770.68 579.87 80.05 399.10

EmamiEmami 394.85 5,974.54 1,006.86 165.40 874.02

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2.3 PESTEL ANALYSIS OF FMCG INDUSTRY IN INDIA2.3 PESTEL ANALYSIS OF FMCG INDUSTRY IN INDIA

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2.4 PORTER’S FIVE FORCES OF FMCG INDUSTRY IN INDIA2.4 PORTER’S FIVE FORCES OF FMCG INDUSTRY IN INDIA

Porter's five forces analysis is a framework for the industry analysis and business

strategy development. It uses concepts developed in Industrial Organization (IO)

economics to derive five forces which determine the competitive intensity and therefore

attractiveness of a market. Attractiveness in this context refers to the overall industry

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profitability. An "unattractive" industry is one where the combination of forces acts to

drive down overall profitability.

A very unattractive industry would be one approaching "pure competition".

This framework consists of those forces close to a company that affect its ability to serve

its customers and make a profit. A change in any of the forces normally requires a

company to re-assess the marketplace. The overall industry attractiveness does not imply

that every firm in the industry will return the same profitability. Firms are able to apply

their core competences, business model or network to achieve a profit above the industry

average. A clear example of this is the airline industry. As an industry, profitability is low

and yet individual companies, by applying unique business models have been able to

make a return in excess of the industry average.

1)1) The threat of substitute products:The threat of substitute products:

The existence of close substitute’s product increases the propensity of

customers to switch to alternatives in response to price increases (high elasticity

of demand).

Buyer propensity to substitute.

Relative price performance of substitutes.

Buyer switching costs.

Perceived level of product differentiation.

In case of Dabur since it is in major areas of FMCG and health care products so it need

not fear threat of substitute products in the recent future. But it has to constantly re

invented its existing product lines in order to cope up with the innovations of its

competitors.

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2)2) The threat of the entry of new competitors:The threat of the entry of new competitors:

Profitable markets that yield high returns will draw firms. These results in many new

entrants, which will effectively decrease profitability. Unless the entry of new firms can

be blocked by incumbents, the profit rate will fall towards a competitive level.

The existence of barriers to entry (patents, rights, etc.)

Economies of product differences.

Brand equity.

Switching costs or sunk costs.

Capital requirements.

Access to distribution.

Absolute cost advantages.

Government policies.

Dabur India is in business for more than 100 years. Dabur India Ltd. made its beginnings

with a small pharmacy, but has continued to learn and grows to a commanding status in

the industry. The Company has gone a long way in popularizing and making easily

available a whole range of products based on the traditional science of Ayurveda. And it

has set very high standards in developing products and processes that meet stringent

quality norms. So all he advantages of first mover, learning curve, brand loyalty, patents

and economies of scale exist with Dabur India.

3)3) The intensity of competitive rivalry:The intensity of competitive rivalry:

For most industries, this is the major determinant of the competitiveness of the industry.

Sometimes rivals compete aggressively and sometimes rivals compete in non-price

dimensions such as innovation, marketing, etc.

Number of competitors.32

Rate of industry growth.

Diversity of competitors.

Level of advertising expense.

Economies of scale.

Key players and competitors of Dabur India currently are Hindustan Unilever Ltd., Tata

Tea, Nestle India Ltd., Britannia Industries Ltd., and Colgate Palmolive Ltd., Marico

Ltd., Cadbury India Ltd., Reckitt Benckiser Ltd., Procter & Gamble. Since the industry

is growing at a very rapid pace and so is the no. of players. So Dabur India has to

constantly relook at its strategy in order to increase its global dominance.

4) 4) The bargaining power of customers:The bargaining power of customers:

Also described as the market of outputs. The ability of customers to put the firm under

pressure and it also affects the customer's sensitivity to price changes.

Buyer concentration to firm concentration ratio.

Bargaining leverage, particularly in industries with high fixed costs.

Buyer volume.

Buyer information availability.

Availability of existing substitutes products.

Buyer price sensitivity.

Bargaining powers of buyers have increased dramatically with the advent of

Globalization. With increased presence of other players in the market as mentioned

previously, suppliers have got wide range of choices. So Dabur India has to formulate

strategy in such a manner to keep abreast with the increasing competition by improving

the quality and reducing the prices over the period.

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5) 5) The bargaining power of suppliers:The bargaining power of suppliers:

Also described as market of inputs. Suppliers of raw materials, components, labor, and

services (such as expertise) to the firm can be a source of power over the firm. Suppliers

Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for

unique resources.

Supplier switching costs relative to firm switching costs.

Degree of differentiation of inputs.

Presence of substitute inputs.

Employee solidarity (e.g. labor unions).

Cost of inputs relative to selling price of the product.

Due to its over 100 years presence Dabur does have a very strong bond with the

suppliers. Also Dabur does follow the policy of having good relations with all the peoples

with which it deals. This helps in having a good relation with the suppliers. Also the

policy of being accountable to stakeholders be it customers, without whom it will not be

in business, shareholders, who have an important stake in our business and the

employees, suppliers who have a vested interest in making it all happen- are their

stakeholders.

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