DABUR INDIA LTD.

: BUILDING
EFFICIENCY AND OPTIMIZING
RETAIL PERFORMANCE

Presented by Group 6

Debasmita Datta: 2023MBA254

Gargi Mishra: 023MBA254024
Janhvi Singh: 023MBA030
Jyoti Jaiswal: 023MBA109
Kumari Jaya: 023MBA035
Moshaffa Baig: 023MBA252
• Dabur India Ltd. is a leading FMCG company founded in 1884, known globally for its Ayurvedic and herbal products.
• Over 1,000 SKUs across health, personal care, and food products,
• Operates in 120+ countries and reaches 7.7 million retail outlets across urban and rural India. COMPANY OVERVIEW
• It has 23 brands with over ₹1 billion in sales each and 9 "power brands" accounting for 70% of total sales.

Revenue Brands
(INR)

>1500 Cr
Domestic Business 75% International Business 25%
1,000-1,500 Cr

500-1,000 Cr

100-500 Cr

14 Locations in India
Manufacturing facilities

7.6% 16.4% Jammu

8 International Locations
Consolidated Revenue Growth` International Revenue CC Growth Baddi

Pantnagar
Sahibabad

Alwar
Tezpur
Newai

240 bps 11%

Katni

Indore Narendrapur
Pitampu
Operating Profit Growth 60 bps r
Silvassa Turkey

Gross Margin Expansion Margin Expansion @ 19.4% Umbergaon

Nasik
(EU)
Egypt
(COMESA) Nepal

Bangladesh
UAE+
(GCC
Nigeria

8%
PAT Growth
5.5% South Plant
(ECOWAS) GAFTA)Sri Lanka

India Volume Growth New location planned

South Africa
(SADC)

in South by FY26
CASE FACTS

Sarvesh Kumar's Role Distribution and Sales Force Expired Product and Return Goods Issue

❖ Sarvesh Kumar, as Dabur's new senior sales ❖ A large portion (60%) of key retail outlets held ❖ Kumar manages 3-4 stockists with territories
executive, is tasked with driving urban retail expired stock, which was not being effectively generating ₹5-10 million monthly, yielding
expansion through the EDGE (Expand, Develop, removed, blocking retailers’ inventory space and stockist ROIs of around 17%, lower than
Grow, Engage) strategy. funds. competing FMCG brands.

❖ His responsibilities include managing sales of ❖ The Return Goods Authorization (RGA) process ❖ Dabur's general trade distribution faces operational
new products, improving field force efficiency, for expired goods included digital tracking tools issues, such as retailers holding expired products
overseeing stockists and SSMs, and maintaining like Drishti and Nivesh, but execution delays led to and limited in-store promotions due to a lack of
strong retailer relationships to ensure high trust issues among retailers. point-of-sale (POS) materials.
satisfaction and efficient sales performance.
Dabur employs a "beat" route plan for field sales,
Revenue share by product
category where SSMs are expected to visit 50-60 retail
❖
outlets weekly and achieve bill cut targets, but
productivity was low, with only 30% of calls being
converted into productive sales.
CASE FACTS

Sarvesh Kumar'sSales
Role Distribution and Sales Force Expired Product and Return Goods Issue
Sales

17

It has 23 brands with over ₹1 billion in sales each and 9 "power brands" accounting
for 70% of total sales.

1Bn to 5Bn dollar 5Bn to 10 Bn dollar Over 10 Bn dollar

• 5- health care(Chyawanprash, Honey, Honitus, Pudin Hara, Lal Tail)

• 2- Personal Care(Amla, Red Paste)
8 in India
9 POWER • 1-Beverage(Real)
BRANDS
1 in over seas • Personal care- Vatika
 Dabur’s Field force

Visiting various retailers on a predetermined schedule, based on the company’s

priorities on each segment

Beat Route Plan SSMs are expected to deliver key sales metrics

Sales calls Range Selling Bill Cut Target

Each SSMs has to visit 50 to 60 retailers once a week

Example: (Considering 6 working days in a week)
Retail outlet visits by one SSM in a week =300.
Per day call= 300/6=50
Take product Clear overdue Total number of calls in one month: 50x4x6=1200
orders payment
Bill Cut Target: The number of total calls is converted into productive calls by
one SSM.
In Dabur,the Bill cut range is=60% If met, SSM receives incentives of ₹200

As per the case , the current rate productive call conversion is 30%
 ISSUES

ISSUES FACED The percentage of total calls converted to productive calls is 30%

After visiting the Gopal Kirana store, the following problems are identified:
• Even after 7 days of credit and a large margin provided, the sales drop. 60% of retail
Reasons:
z • The company’s people did not collect damaged and expired juice cartons even outlets are facing
after calling them twice. the same problem
• It creates inventory and fund blockage issue

Steps taken: • Within 2 weeks all the expired products are collected by the stockists
• Retailers were refunded the cost of expired products the refund amount was adjusted to
account for30% deduction(18% GST and 12% trade promotion tax

Process of Expiry Return: Return Good’s Authorization Technique

Digital Tracker App

 GENERAL TRADE ISSUES

• Local retailers are dissatisfied with the lack of POS material which is extremely
important to creating brand awareness and promotion.

• Unlike Dabur’s competitors Dabur does not have any self–online platform where
retailers can place an order which creates dissatisfaction among the retailers.

• By using the app, the retailer could access various online services including
product mixes, new trade promotions, and the latest promotional offers
from the company

Shikhar online order

application

Dabur is doing a manual ordering process to introduce a stockist sales automation

system which could be accessed from the Mobile
 CASE FACTS

Competitor Pressure and New Product Launch Survey of Retailer Needs

Technological Gaps Difficulties

• Dabur launched a new • Kumar conducted a survey

• Competitors like (HUL) product, Homemade Tasty
provided advanced retail Masala, to compete with across 203 retailers,
tools, including a self- Nestlé’s Masala & Magic. identifying gaps in in-store
ordering app (Shikhar) for Despite strong mandates for promotions, POS materials,
retailers, with features like SSMs to push the product
product browsing, order and technological support,
and a “buy two, get one
tracking, and promotional free” promotion, retailers highlighting retailers’ desire
visibility. hesitated due to existing for higher service levels and
stocks of competing brands. self-ordering capabilities.
• Dabur lacked a similar
technology platform, • Free sampling initiatives,
limiting retailer convenience however, boosted awareness
and satisfaction, which and sales for the new Flat
impacted competitiveness. product by 30% in Kumar's
territory.
4 Yr. CAGR:
Strategic Insight and Proposed Action

Market Insight

• Retailers were dissatisfied with the POS materials which is very important to interest sales and growth with banners, posters, and danglers.
• Retailers demand advanced technique tools such as an online platform where that can maintain transparency and efficiency.

Recommendation

Make an Efficient Sales Technology Integration Promotional Strategies

channel
• Build an efficient sales • Expand Salesforce • Invest in POS
training programme automation tools • Give retailers incentives
• Built an Advanced tool of
a Self-ordering app
Thankyou