Dabur decides to split sales force, stockists to prop up market share
Dabur India - the maker of Vatika, Real and Chyawanprash - is splitting its sales force and stockists beginning April 1, 2009 with focus on three specific categories, home and personal care (HPC), health care and foods, a top company executive said.
By Ratna Bhushan, ET Bureau |
NEW DELHI: Dabur India ��� the maker of Vatika, Real and Chyawanprash ��� is splitting its sales force and stockists beginning April 1, 2009 with focus on three specific categories, home and personal care (HPC), health care and foods, a top company executive said.
The initiative, rolled out in 100 towns, will sharpen focus on general trade and modern trade and drive market share in an increasingly competitive market. Until now, all three divisions had a common sales force and stockists.
Dabur chief operating officer VS Sitaram said: ���We felt the need to channelise the sales force so the company is better equipped to meet market complexities.���
The company, with revenues of Rs 2,396 crore, has 300-plus products in different pack sizes (stock keeping units) and proposes to foray into new categories like mainstream skincare, variants in juices, and add the newly-acquired Fem skincare portfolio in fiscal 2009-10. Mr Sitaram said new products could contribute 30% to the company���s sales next fiscal ��� 10% higher than the current year.
With rural growth in some FMCG categories now matching or outpacing urban growth, Dabur is upping both above-the-line and below-the-line spends, which would include rural activation. The company proposes to up spends by 15-20% in FY10.
While the HPC division has been recording 20% growth in 2008-09, foods is growing at about 15%. The third, health-care division, is growing between 12% and 15%. Brands like Vatika, Amla, Odomos and Odonil come under the HPC division, which accounts for about 40% of the domestic business. Healthcare and oral care, which includes Chyawanprash, Honey, Babool and Promise, makes up for 45% of the company���s sales. Foods contribute about 8% to the company���s business.
The initiative, rolled out in 100 towns, will sharpen focus on general trade and modern trade and drive market share in an increasingly competitive market. Until now, all three divisions had a common sales force and stockists.
Dabur chief operating officer VS Sitaram said: ���We felt the need to channelise the sales force so the company is better equipped to meet market complexities.���
The company, with revenues of Rs 2,396 crore, has 300-plus products in different pack sizes (stock keeping units) and proposes to foray into new categories like mainstream skincare, variants in juices, and add the newly-acquired Fem skincare portfolio in fiscal 2009-10. Mr Sitaram said new products could contribute 30% to the company���s sales next fiscal ��� 10% higher than the current year.
With rural growth in some FMCG categories now matching or outpacing urban growth, Dabur is upping both above-the-line and below-the-line spends, which would include rural activation. The company proposes to up spends by 15-20% in FY10.
While the HPC division has been recording 20% growth in 2008-09, foods is growing at about 15%. The third, health-care division, is growing between 12% and 15%. Brands like Vatika, Amla, Odomos and Odonil come under the HPC division, which accounts for about 40% of the domestic business. Healthcare and oral care, which includes Chyawanprash, Honey, Babool and Promise, makes up for 45% of the company���s sales. Foods contribute about 8% to the company���s business.
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The company posted a 16% increase in net profit for the third quarter ended December 31, 2008, with hair care, shampoos and baby and skin care products reporting 24% growth.Download
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