 Started as a private label company in 2006 and

later converted to public label in 2007.

 Total turnover of around Rs 2000 crore within 5
years(Exhibit 10)
 Product portfolio
 Food Products
 Baked and beverages
 Healthcare Products
 Beauty products and cosmetics
 Homecare
 Hair care
 Major contribution to revenue(as of 2015 Exhibit 12)
 Health care- 19%
 Ghee – 22%
 Toiletries – 20%
 Uses 3-tier distribution system
 Chikitsalaya
 Distributors
 Arogya kendras
 Uses a pricing strategy of cost + profit (Lower priced then
competitors) .
 Open competition with MNCs
 Heavy spending (around 10% of its revenue) on advertising in
2016
 2 products in dabur’s portfolio were effected by Patanajali’s entry
 Dabur Honey
 Dabur chawanprash
 In a first in over two decades, sales of Dabur honey dipped by
8.50 percent in the first quarter of 2017 fiscal over the previous
year’s corresponding period.
 Price of Patanjali honey was 30-40% less than that of Dabur.
 Market share of Dabur decreased from 60% to 40%.
 Dabur’s flagship Chyawanprash brand also fell by almost 2
percent—from 58.9 percent in October-November 2015 to 57
percent during the same period in 2016
 As we can see from Exhibit 17 though being a small player in the
industry as compared to Dabur the market share of Patanjali has
been doubled from 0.7% to1.5% in just 1 year
 Though having been entered into almost every product line Dabur
had , Patanjali has been able to compete only in few products like-
 Honey
 Chawanprash
 Dant kanti(Toothpaste)

 So Patanjali is not a direct threat for Dabur as per the current

scenario but can be a serious competitor in future in some of its
product lines.
 Few reasons of patanajali being a threat in future:-
 Popularity of Baba Ramdev
 Low pricing as compared to Dabur
 Strong distribution network developed over the years
 Patanjali directly attacked Dabur by entering ad war .
 Ad says--It’s just Rs 70 and not Rs 122(price of dabur honey)
 Dabur launched a counter ad claiming its honey to be Food Safety
and Standards Authority of India (FSSAI) approved -- which
means the product is tested and licensed by food regulator and
hence is much safer
 Over the years Dabur started focusing on Non ayurvedic products
rather than sticking to its core value of ayurvedic products .
 Overall 40% of its sale came from Non-ayurvedic products.
 This shift cam because Dabur wanted to grow its business to other
countries like middle East ,Africa,Europe etc. where ayurveda was
never a popular or a saleable concept.
 Dabur needs to get back to basics and return to its core—
Ayurveda
 After the entry and success of patanjali Dabur realised that there is
a lot of opportunity in Ayurveda so they need to shift their focus
back to ayurvedic products.
 Company should revamp their marketing communication .
 New tag line(Science-based Ayurveda.)
 tied up with e-commerce marketplace Snapdeal to set up an e-store for its
Ayurveda products called LiveVEDA.
 Estimate -2020, Dabur targets Ayurvedic products to constitute
more than 75% of its sales in India, from around 60% now