I also declare that this project is the result of my own effort but with little bit of help from various media resources and has not been submitted to any other institution for the award of any Degree or Diploma. In no small measures, I would also like to gratefully thank to all those who gave me constructive suggestions for the improvement of all the aspect related to this project.
Patanjali, an ayurvedic upstart backed by maverick yoga guru Ramdev, had disrupted the fast-moving consumer goods FMCG market in early In a first in over two decades, sales dipped by 8.
For a company used to robust double digit sales growth in this category, the decline came as a bolt from the blue. Getty Images Clearly, something was wrong somewhere. This, he adds, was only encouraging the competition to get more disruptive.
For a company that traces its ayurvedic lineage way back to the early s, ceding ground to a Johnnie-come-lately was a bitter pill to digest. The medicine, though, was needed. And its effect is evident today.
Three years after the Patanjali jolt, Dabur is back on song. In the first quarter of fiscalhoney sales jumped by And Chyawanprash has hit its best value market share at 61 percent.
During the last fiscal, health camps were organised across the country, where ayurvedic practitioners treated close to a lakh patients. Over doctor meets were organised to showcase the core principles of ayurveda involved in processing and manufacturing ayurvedic medicines.
The combative avatar of Dabur comes at a time when Ramdev is believed to have assembled an over,strong sales field force to fan out in rural India. As Patanjali starts losing steam in cities—bogged down by quality perceptions and spreading itself too thin into areas such as dairy and agri—the next wave of growth is likely to come from the hinterland.
Dabur, which gets 46 percent of its sales from rural India, is ready for that challenge. If Dabur could do it in honey, by offering a value proposition, it feels it can do it elsewhere, too.
The honey turnaround had many components: Though price was not cut, grammage was increased by 30 percent for the same price, and quality was reinforced among consumers by communicating that the product had the backing of regulatory body Food Safety and Standards Authority of India.
Although Patanjali aggressively expanded the market for packaged honey, due to product quality and supply chain issues, consumers lapsed out, reckons Credit Suisse in a recent report. The lessons from honey were learnt quickly.
In another departure from its core operational philosophy, Dabur took a tactical diversion by adopting a flanking strategy. The idea, explains Duggal, was to build moats around brands, in terms of better pricing or by launching flanker brands, which can be a satellite to the main brand.
This not only acted as a moat against intrusion into the mother brand, but also ring-fenced it against future disruptions. Rural demand for a product is different from urban; it requires massive distribution infrastructure, and a robust supply chain.
One needs to build the whole ecosystem to drive a rural franchise, including the portfolio of brands. Rural, they reckon, will be a different ballgame for Patanjali. Sales, to begin with, were brisk. Today, however, sales are stagnating.Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission.
The supply chain was underdeveloped, and logistics were costly and challenging. Although, overall, CPG transactions accounted for a significant part of the consumer’s budget, In India, Dabur’s product portfolio.
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Vatsal Anand is on Facebook. Join Facebook to connect with Vatsal Anand and others you may know. Facebook gives people the power to share and makes the. This success paved the ground for the company's supply chain initiative. transporter details.5 million retailers. banking. The first six months were used to create a business model common to all divisions (family products.
Dabur's stockists supply to 1. Dabur India Case Solution. Dabur India, Ltd. had actually come a long way given that It started as an Indian standard Ayurveda health items company and, by , had actually become among the leading 4 quick moving durable goods (FMCG) business in India.
The business had actually developed management in hair care and individual care items throughout the Indian subcontinent and Middle East. Dabur India Limited is the fourth largest manufacturer of fastmoving consumer goods in India. The company uses the SAP® Advanced Planning & Optimization component and SAP Supply Network Collaboration application to forecast and plan for the needs of dealers and other parts of its supply chain more accurately.