Dabur vs. Hul-final

Dabur Today

• Leading Indian Consumer Goods Company• 125 Years Old• Provides Nature Based Solutions for a Healthy

and Holistic Lifestyle• Turnover : Rs. 2834.11 Cr(FY 09)• 4000 Employees

• Three Major SBU’s: Consumer Care Division Consumer Health Division International Business Division• Three Subsidiary Group Companies : Dabur International Fem Care Pharma New U• Eight step Down Subsidiaries

Manufacturing Facilities in India

Outside India

Product Lines

• Hair Care• Oral Care• Health Care• Skin Care• Health Care• Food

Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 0

500

1000

1500

2000

2500

3000

1152.32

1273.781372.52

1641.57

2128.17

2435.93

Sales Growth

sales growth

Trends in sales quantity (products) (volume in tonnes)

Dabur India Ltd.

Product/s manufactured/traded Mar 2005

Mar 2006

Mar 2007

Mar 2008

Mar 2009

Ayurvedic Tooth Powder & Paste

11565 11142 22661 23126 25227

Chyawanprash

10905 11413 13373 14049 13741

Fruits, Nector & Drinks

40044 46857

000 litres 000 litres Hair Oils

16793 16769 21924 20401 22876

Kls Kls Kls Kls Kls Hajmola

5213.1 5205.6 5979.1 7850.2 7667.5

Honey

1741.3 4516.3 4681.9 5309.7 5392.8

Expectations

• Channel members from the company

DABUR Timely delivery Rewards and claims Adequate discounts Schemes and margins

HUL Profits and Claims Timely Delivery Rewards Schemes and Margins

Company from the channel members

DABUR Infrastructure Robust service Coverage Seeking new opportunities Sales force Goodwill and attitude Expansion Timely booking and delivery

HUL Proper Retailing Maximum Distribution Right Attitude with

Customer Proper Shelf Space Freshness of Merchandising Meeting of Targets Feedback (On Timely Basis)

Selection criteria of channel members

DABUR• Service (knowing and

visiting)• Order cycle• Credibility• Goodwill• Sales growth

HUL• Experience• Financial Position• Credibility• Market Knowledge &

Coverage• Personal Involvement

Criteria DABUR HUL

Credit Period Advance Payments Advance Payments

Mode of Payment Cheque Cash and Cheque

Discounts None 1.5% (Only to Distributors)

Margins 5% (Distributor) 5% (Distributor)

8-15% (Retailer) 9-10% (Retailer)

2% (Wholesaler)

5% (Stockist)

6% (Superstockist)

Order Cycle Time Varies Varies

Minimum Order Size Not Fixed Not Fixed

Damaged Merchandise Refund Provided Company

Commercial Terms

Logistics management

• Transportation : Trucks, Tempo• Who Pays: Company C&F Distributors Company Pays

Distributors Retailers Distributor Pays

• Warehousing : 90% fill rate for modern trade• Inventory : Minimum Inventory

Head of sales, National

Regional managers(N, E, W, S)

Zonal managers (2 each)

Area managers (3-5 each)

ASE ASE ASE

Sales officer

Sales officer

Sales officer

Sales officer

Sales officer

Sales team hierarchy

Appraisal

• Channel members– Exceeding – Meeting

– Below

(on the basis of growth, sales, cheque etc.)

Retained

Put Under Scanner

Employee performance appraisal

• Weightage– 50% on Sales (food, healthcare, oralcare etc.)– 25% on processes (enhancing coverage, removing

gaps, overall outstanding claims by stockists, forecast accuracy)

– 25% on managerial skills (leadership etc.)

• India's largest fast moving consumer goods company

• HUL's brands are spread across 20 distinct consumer categories.

• Leadership in Home & Personal Care Products and Foods & Beverages. • Hindustan Unilever as the best consumer household products company

as rated by the leading business magazine – Forbes Global

• 32,400 employees (40,000 including Group Companies), including about 1,425 managers.

Product portfolio• PERSONAL PRODUCTS– Skin care– Oral Care– Hair Care– Deodorants– Color Cosmetics

• SOAPS & DETERGENTS– Fabric Wash– Personal Wash– House hold Care

• FOOD & BEVERAGES– Ice Creams– Beverages– Popular Foods– Culinary

• NEW VENTURE– Max– Hindustan Unilever Networks– Ayurvedic Health and – Beauty Care Products

Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Mar 2009 0

5000

10000

15000

20000

25000

11203.14 10996.73

12108.87

13189.7

14895.56

21927.23

SALES GROWTH

Series1

Segmented sales growth 2003 2004 2005 2006 2007 2009Growth rateBeverages 1184.2 1194.6 1277.5 1330.7 1532.8 2294.5

94%

Foods 602.46 285.07 313.72 384.91 537.73 810.7

35%

Ice Creams 93.39 88.94 98.15 137.07 160.64 235.14

152%

Personal Products 2410.2 2472.2 2951.9 3359.8 3671.8 5367.4

123%

Soaps & Detergents 4379.4 4470.7 4961.7 5595.9 6374.5 9880.6

126%

Distribution NetworkCompany

Distributors

C&F Agents

Retailers

Consumer

Logistics Management

• Transportation: Trucks,Three-Wheelers• Who Pays: Company C&F

Distributors Company Pays

Distributors Retailers Distributor Pays• Warehousing: • Inventory: Seven Days

Sales Force

• Mixed Sales Force• Training: After Every 6 months Weekly Support Visits by the Company’s Representative.• Monthly Targets: 20% Hike of the Last Year

Achieved in the same month Current Market Situation

Performance AppraisalsTill Last Year This Year

Incentives Quaterly Monthly

Bonus Mid Year(2.5% of Basic) No Bonus

Variable Annualy Annualy

Other Benefits Bangkok Trip , Gold Coin Nothing