About the Company

Dabur Ltd is an Indian multinational consumer products firm headquartered in Ghaziabad,

Uttar Pradesh, and founded by S. K. Burman in 1884. It is one of India's leading consumer
goods (FMCG) enterprises, producing Ayurvedic medicine and natural consumer items.

Amit Burman, the current chairman, and vice-chairman Mohit Burman are members of the
family's fifth generation. Dabur Ltd is known to be one of the first family businesses in India
that separated ownership from management as in the year 1998 they handed over the
management of the firm to the professionals.

With revenues of over Rs. 9,500 crore and a market capitalization of over Rs 100,000 crore,
Dabur India Limited is India's fourth-biggest FMCG company. Dabur is the world's biggest
Ayurvedic and Natural Health Care Company, with a portfolio of over 250 Herbal/Ayurvedic
products, built on a tradition of quality and experience spanning over 138 years.

As of today, Dabur’s FMCG portfolio includes 8 brands which are:

 Dabur Chyawanprash
 Dabur Honey
 Dabur PudinHara
 Dabur Lal Tail
 Dabur Honitus
 Dabur Amla
 Dabur Red Paste
 Réal

Additionally, Vatika is a global power brand.

Market Scenario

Hair Care, Oral Care, Health Care, Skin Care, Home Care, and Foods are among Dabur's core
consumer product categories. The ayurvedic corporation has a large distribution network,
with 6.7 million retail outlets and a strong presence in both urban and rural areas.

Dabur's goods are also well-known in international markets, with over 120 countries in
which they are sold. Its brands are known throughout the Middle East, the SAARC region,
Africa, the United States, Europe, and Russia. Dabur's abroad revenue now accounts for
more than a quarter of the company's overall revenue.

In the fiscal year 2021, Dabur India Limited's health supplements had the greatest market
share of all its goods. This accounted for roughly 23% of net sales, with the food category
accounting for around 13%.

Revenue share of Dabur India Limited's products in the

2021
(Category wise)

Source: Statista
Competition

Hindustan Unilever, Colgate, Godrej Consumer, and, P&G are among some of the major
competitors of Dabur.

Looking at the table below it can be seen as the HUL is one of the leading firms in the
industry and is the market leader whereas Dabur is the market runner-up. But considering
the fact that HUL deals in more products category than Dabur and Dabur being an
ayurvedic-oriented firm, it has performed very well over the years.

Source: Money Control

Dabur is the world’s biggest ayurvedic product manufacturing company but domestically as
well it has been performing very well in the past few months.

Source: Mint
 Proactive vs Reactive

Proactive Strategies and Organisations

Proactive strategies are intended to foresee potential risks, problems, and opportunities. A
proactive strategy focuses on long-term planning. It also aids in the early detection and
prevention of possible risks. As a result, it can forecast the future and produce superior
results. Furthermore, proactive methods frequently take a more analytical approach to the
business. Hence, they take into account a variety of elements such as accidents, consumer
complaints, claims, excessive labour turnovers, and needless costs.

Proactive Organization Characteristics:

 Target-oriented — goals are set and progress is monitored on a regular basis.

 Make short- and long-term strategies, as well as a distinct emergency plan.
 Examine markets, competition behaviour, and product offerings, with an emphasis
on innovative thinking.
 Concentrate on client satisfaction and assess consumer feedback as soon as possible.
 To create new chances, collaborate closely with the technical and sales departments.
 Prior to making a decision, solicits opinions and suggestions from the whole team.

Dabur’s Proactive strategies:

Dabur has a proactive strategy of not exposing itself to much credit risk and the possibility
of defaults from trade partners who may become financially unstable in some
circumstances. This strategy has helped Dabur maintain its margins even in times of
financial crisis (recession period) in the nation like in the years 1958, 1966, 1973, 1980, and
in 2010. Dabur provides credits extensions but mainly to credit-worthy partners.

In 2013, The FMCG sector was highly price-sensitive as the Indian market was recovering
from the impacts of the global economic crisis of 2009-10. Hence the manufacturers were
willing to charge low prices. Dabur charged low for most of its products and was far more
proactive in the market as they increased investing in advertisements and marketing as they
analysed the growing price competition in the market. The increase in credit period was
helping them to increase the revenues as well.
Dabur is known for the ayurvedic products but since 2015 people started becoming more
health-conscious hence, they started looking for proof of being herbal in the herbal
products. Dabur took the first movers’ advantage by focusing on science-based Ayurveda.
Dabur provided rational arguments on product efficacy, quality, and validation process.
Dabur invested a lot in R&D facilities, testing protocols, etc to do so but the results were
good as till today the brand is very much believed to be herbal and has a loyal customer
base.

Reactive Strategies and Organisations

The phrase "reactive approach" refers to dealing with problems as they happen rather than
preparing forward for the future. Unexpected difficulties may develop, either within or
outside, in some instances. In such instances, the organisation must act quickly. And it is at
this point that firms frequently employ reactionary measures.

Reactive Organization Characteristics:

 The company does not make any long-term plans or set targets. In an emergency,
though, they will have a strategy in place to deal with the problem.
 Top management's autocratic character
 Rather than doing a thorough study, all problems are addressed based on gut
reactions.
 Do not analyse rival behaviour, goods, or the market in a stressful work setting.

Dabur’s Reactive strategies:

In 2016, Demonetisation took place in the Indian market which negatively impacted the
primary sales of FMCG business. The secondary sales and the actual consumer sales slowed
down for Dabur but it was not a very drastic loss of sales. In response to the same and to
lessen the impacts of the demonetization the company took some steps in various fields
that helped the company regain its lost sale. Like Dabur reduced its ad spending, extended
consume promotions to consumers in terms of discounts and promotions.