STRATEGIC BUSINESS UNIT

Presented By :

Purushotam SatiPujil KhannaVinod KumarRabi Kr. Pradhan

ANALYSIS OF STRATEGIC PLANNING

Defining the corporate mission Establishing strategic business

unit Assigning resources to each SBU Assessing growth opportunities

WHAT IS STRATEGY ?

STRATEGY IS A SET OF KEY DECISIONS MADE TO MEET OBJECTIVES.

WHAT DOES STRATEGY INCLUDE ?

The Company objective The strategy and tactics that will enable the company to reach those objectives The resources required, and how they

are going to obtained Who is responsible for the choosing the

goal? What are the company’s business risks

and external factor?

ELEMENTS IN STRATEGY FORMULATION

MISSION

OBJECTIVE

GOALS

TARGETS

FORMULATION

ACHIVEMENTS

ROLE OF STRATEGIST

Strategists are individuals or groups who are primarily involved in the formulation, implementation, and evaluation of strategy.

STRATEGIC PLANNING

Corporate Strategy

Business Strategy

Functional Strategy

Operational Strategy

A STRATEGIC BUSINESS UNIT IS….

A Unit comprising of one or more products having a common market base whose manager has complete responsibility for integrating all functions into strategy against an identifiable competitor.

CHARACTERISTIC OF SBU

It has its own set of competitors. It has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit. It is a single business, or a collection of related businesses, that can be planned separately from the rest of the company.

ADVANTAGES OF SBUS

Intra Competition.

Corporate Image.

Better Management.

Higher Efficiency.

Better Customer Services.

zz

STRUCTURE OF SBU

CEO

SBU I SBU II SBU III

FINANCE MARKETING PRODUCTION

DABUR INDIA LIMITED

•1884 : BIRTH OF DABUR

• 1896 : FIRST PRODUCTION UNIT

• 1940 : LAUNCH OF DABUR AMLA HAIR OIL

• 1994 : RAISES FIRST PUBLIC ISSUE

• 2000 : CROSSES RS 1000 CRORE TURNOVER

• 2005 : ACCQUSITION OF BALSARA GROUP

• 2007 : BECAME THE THIRD MOST RESPECTED FMCG COMPANIES IN INDIA

(business world November 2007)

• 2008 : START NEW “U” RETAIL CHAIN UNDER H&V STORE LIMITED.

VISION

DEDICATED TO THE HEALTH AND WELL BEING OF EVERY HOUSEHOULD

DABUR SBU’S STRUCTURE

DABUR

Consumer International Consumer Retail

Care Business Health Care Division Division Division (CCD) (IBD) (CHD)

Personal Care35%

Health & Hygiene

45%

Foods15%

Home Care5%

% SHARE IN DABUR REVENUES

CORPORATE MISSION

TRANSFORM AN AYURVEDIC COMPANY TO A GROWING MODERN FMCG PLAYER BASED ON HERBAL PLATFORM ONE THAT WOULDEMBODY ALL THE CHARACTERISTIC OF A FMCG COMPANY.

CCD STRUCTURE

CCD (Consumer Care Division)

Personal Health Home Foods

Care Care Care Care

E

35%

45%

15%5%

Personal Care

Health & Hygiene

Foods

Home Care

% SHARE IN CCD SALES

ContinualAttention Creativity

Management

Commitment

Effective Strategic Planning

WORLD-WIDE PRESENCE OF DABUR

MANUFACTURING UNITS OF DABUR IN INDIA

STRATEGY USED BY DABUR

FOUR FOLD STRATEGY

EXPANSION

ACQUISITION

INNOVATION

REGIONAL BRANDING

PROMOTIONAL STRTEGY

DISTRIBUTION STRATEGY

PROMOTION STRATEGY

T.V COMMERCIALRADIONEWSPAPER POP DISPLAY WALL PANTING VIDEO VANS SALES PROPOTION CONTEST IN MELAS OR HAATS

PROMOTION STRATEGY

DABUR HEAVILY ADVERTISED THEIR PRODUCT THROUGH VARIOUS CONTESTS-

DABUR AMLA SUNDER

DABUR AMLA SUSHEELDABUR YOGYA PRATIYOGITA HAJMOLA BAHANA CHAMPIONSHIPMELODIOUS VOICE OF PUNJABDABUR GULABARI MISS FRESH FACE

OF UP 2008

DISTRIBUTION STRATEGY

DEALER

WHOLE SALER

AGENTS

RETAILER

KIRANA STORE

REGIONAL BRANDING

Dabur is trying to capture market by launching product with a regional twist.

EXAMPLE : 1) In Tamil Nadu- Sivappu pal podi- lal dant manjan.2)Dabur red Toothpaste in East India

PRICE STRATEGY

Product Name Packaging(gm.)

Price(Rs)

Dabur Amla Hair Oil

3.5850100200300500

12112038

Nihar Amla 3.550100200

1132442

THE BCG GROWTH - SHARE MATRIX

It is based on the combination of market growth and market share relative to the next best competitor

It is based on the observation that a company’s business unit can be classified into four categories: Stars Question marks Cash cows Dogs

QUESTION MARKS (?)

Most businesses start of as question marks.

They will absorb great amounts of cash if the market share remains

unchanged, (low).

Investments should be high for question marks.

WHY QUESTION MARKS ?

Analysis with DABUR INDIA-

Dazzl

New-U

Chyawan Prakash

STARS

stars are leaders in Business.

High growth, High market share.

Effort should be made to hold the market share otherwise the star will become a CASH COW.

Analysis with DABUR INDIA-

DABUR GLUCOSE-32% (GROWTH RATE)

DABUR HONEY-26%(GROWTH RATE)

MESWAK-39%(GROWTH RATE)

CASH COWThey are foundation of the company and often the stars of yesterday.

They extract the profits by investing as little cash as possible.

They are located in an industry that is mature, not growing or declining.

Analysis With DABUR INDIA-CHYAWAN PRASHHAJMOLAREAL

DOGSDogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage.

PRODUCT CONCEPT PRODUCT DESIGN AND UNPLEMENTATION PRODUCT COMPETITIVE POSITIONING PRODUCT VALUE PROPOSITION PRODUCT MESSAGING PRODUCT DISTRIBUTION PRODUCT SERVING PRODUCT REPEAT PURCHASE PRODUCT CROSS SELLING EXTERNAL EVENTS

PRODUCT FAILURE

GROWTH STRATEGY

RECOMMENDATION

FOCUS ON NATIONAL BRANDING

WORK ON INNOVATION

CONCLUSION

DABUR HAS STRONG DISTRIBUTION NETWORK.

FOURTH LARGEST FMCG COMPANY OF INDIA

ONE OF THE MOST TRUSTED BRAND

HAVING VERY AGGRESSIVE STRATEGY TO CAPTURE THE DIFFERENT SEGMENT OF THE MARKET