Pestel Analysis On Dabur Company

Business Essay
INTRODUCTION :
The Dabur company was established in 1884, a young doctor armed with a degree in medicine
and a burning desire to serve mankind. This young man, Dr. S.K. Burman, laid the foundations
of what is today known as Dabur India Limited.
The brand name Dabur is derived from the words 'Da' for Daktar or Doctor and 'bur' from
Burman. From those humble beginnings, the company has grown into India's leading
manufacturer of consumer healthcare, personal care and food products. Over its 125 years of
existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella
name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked
among Indias top brands. Its brands are built on the foundation of trust that a Dabur offering will
never cause anyone slightest of harm. The trust levels that this brand enjoys are phenomenally
high.
Dabur India Limited has marked its presence with significant achievements and today
commands a market leadership status. There story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment to their partners and
stakeholders. The results of their policies and initiatives speak for them. The company has kept
an eye on new generations of customers with a range of products that cater to a modern
lifestyle, while managing not to alienate earlier generations of loyal customers.
Dabur India Limited is the fourth largest FMCG Company in India and Dabur had a turnover
ofapproximately US$ 750 Million (Rs. 3390.9 Crore FY 09-10) & Market Capitalisation of over
US$ 3.5 Billion (Rs 15500 Crore).Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real
are the brands of Dabur.
Dabur is an investor friendly brand as its financial performance shows. The company's growth
rate rose from 10% to 40%. The expected growth rate for two years was two-fold. There is an
abundance of information for its investors and prospective information including a daily update
on the share price (something that very few Indian brands do). Theres a great sense of
responsibility for investors funds on view. This is a direct extension of Daburs philosophy of
taking care of its constituents and it adds to the sense of trust for the brand overall.
The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic
medicines in a scientific manner. They have researched new medicines which will find use in
O.T. all over the country therein opening a new market. Dabur Foods, a subsidiary of Dabur
India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make
it the market leader in the Fruit Juice Category.
PESTEL ANALYSIS ON DABUR INDUSTRY :
POLITICAL FACTORS:
Government intervences : Government support the industry to expand & to export its products
& to grow.
Trading policies : Trading policies are also favourable for dabur company so it can export its
products & it also help him to expand & to grow.
ECONOMIC FACTORS :
Consumer focus : they are continuously focussing on analysing the consumer needs &develop
products to fulfill there needs. This is the main reason for the growth of Dabur company.
Living standard : Rise in the living standard of people have increased their production level, &
produce high quality & variety of products.
National income : National income is important factor as if affect the growth of the organisation.
If per capita income is more the amount spend will be more & if it will be lower the amount spent
will be less.
Inflation rate : Inflation means the rise in the value of all the product in the economy, if inflation
rate is higher the cost of products will be higher & if inflation rate is lower the cost of product will
be lower. This directly affect the growth of the organization.
SOCIO-CULTURAL FACTORS :
Demographics : Demographics is the study of human population in the economy. It helps the
organzation to divide the markets in different segments to target a large of customers. For
Example- according to race, age, gender, family, religion, & sex.
Distribution of income : This shows that how income is distributed in the ecconomy. It directly
affect the purchasing power of the buyers. And ultimately leads to increase or decrease in the
consumption level of the products.
Consumerism : This indicates that a large number of options are available while purchasing of
goods to consumers, so the choice becomes easy & quality products can be choose by
consumers. So while purchasing a consumer have different choices to select product according
to his needs.
Education levels : Education is one of the most important factor which influence the buying
power of consumer, while selecting a particular good a consumer should know all its features
so it can differentiate them with another products.
Law affect social behaviour : Different laws are made by the government to safe guard the rights
of consumers. For example- Consumer protection act, this law indicates that a consumer can
file a case against a seller if he finds that he is cheated.
TECHNOLOGICAL FACTORS :
Discoveries & innovation : Continuous innovation in products & processes is the basis of there
services. They provide consumers with innovative products within easy reach Build a platform to
enable Dabur to become a global ayurvedic leader.
Advancement in technology : Focus on growing there core brands across categories, reaching
out to new geographies, within and outside India, and improve operational efficiencies by
leveraging technology.
Automation : Change in technology will leads to automation, this means that with new
technology labour required is less as machines are automatic. All the works are done
automatically by the machines as earlier it is labour oriented. Now all the work is machine
oriented.
Obselete rate : Day-by-day new inventions are made so the rate of obselete is higher, as in
Computer LAPTOPS have replaced the PC. This shows that the technology becomes obselete
very fast.
Research & development : This department plays a vital role in the development of the
organization. As this department always do research that what are the demand of the markets &
how to make advancements so the organization can survive in the competitive world.
ENVIRONMENTAL FACTORS :
Environment regulations : The preferred company to meet the health and personal grooming
needs of there target consumers with safe, efficacious, natural solutions by synthesizing the
deep knowledge of ayurveda and herbs with modern science.
Environmental protection : Responsible company to protect Ecological system & use Eco-
friendly products.
LEGAL FACTORS :
Companies law : The company fulfill all the Company law requirement so as to grow & develop
& to sustain in the compitative market.
Employment law : Employment law provides equal opportunities to every citizen to work & earn
his livelihood. It provides equal opportunities to every citizen.
Consumer protection : This law helps to protect the rights of consumers & he can file a case
against seller if he find that he is cheated.
Industry-specific regulations : These laws are related to industry for example- no industry can
establish in between cities i.e. it should be outside the cities.