Dabur PESTLE Analysis
Detailed PESTLE analysis of Dabur examining political, economic, social, technological, legal & environmental factors.
Political Factors:
Dabur is an Indian brand and it was founded in 1884 with the aim to provide Ayurvedic products to the people. Today, Dabur has a huge product portfolio with the company being 4th largest in the Fast moving Consumer goods sector. A significant credit for Dabur’s success goes to the constant government backing. Seeing, Dabur’s product quality and consistency, the government provided favorable conditions to Dabur to expand in the foreign markets as well. It is the result of this that today 27% of Dabur’s revenue is generated from the foreign markets. Dabur is yet to show its presence in Australia and South America. Seeing the Political instabilities in the major countries such as Brazil, Argentina etc.; it is not the right time to invest in South American nations. But, Australia has shown constant political stability. Also, Australia is ranked 18th on the Ease of doing Business index. So, it is evident that Australia can be turn out to be a good source for revenue for Dabur.
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This concludes the political factors in the Dabur PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Dabur:
More than 60% of Dabur’s revenues are generated from the Indian markets. So, it might seem that due to the current economic slowdown persisting in the nation; Dabur would also be facing the wrath of it.
But, the reality is different. As most of the products which Dabur produces can be afforded by an average Indian customer; Dabur has not been affected much by the slowdown. Rather the sales number has been constantly increasing. For Dabur to maintain this growth it is important that the inflation rate should be lower, otherwise sales would drop.
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Social Factors:
Following are the social factors impacting Dabur PESTLE Analysis:
Dabur has very smartly positioned its brands. The products which are strongly related to Ayurveda i.e. Dabur Amla Oil, Dabur Babool Toothpaste and Dabur Chawanprash have the logo of Dabur attached very close to its own name. However, there is no great visibility of Dabur’s logo on products like Real juice, Odonil etc. This is done keeping in view that people perceive Dabur as a company which produces Ayurvedic products. Having a logo of dabur near the Real Juice might not create that impact and would not lead to higher sales. Any behavioral changes in the people of a particular group based on caste, religion and age won’t affect Dabur much as they have a portfolio which covers people from all demographics.
Technological Factors:
The technological factors in the PESTLE Analysis of Dabur are mentioned below:
Apart from the fact that Dabur should find ways to streamline their operations, it is also necessary to have a strong online presence. With people shifting from Televisions to Mobile phones, Laptops; it is important for Dabur to also change their advertising methods.
While other competitors like Hindustan Unilever Limited seem to be interested in heavily investing towards online marketing and coming out with its e-commerce portal, Dabur seems to be lagging in this aspect.
Legal Factors:
Following are the legal factors in the Dabur PESTLE Analysis:
For any firm one of the most important legal factors is the Protection of Intellectual property Rights. Just a year ago, one of the Dabur’s competitors; Marico violated the trademark and copyright laws by publishing an advertisement in which Dabur Amla Oil was shown in a bad light. For this Marico was fined by the Delhi High Court as well. Also, the company needs to have clear understanding about the Employment laws. Rigorous checks should be done during the manufacturing of a product. If a faulty sample reaches the customer; the customer can sue the company in Consumer court.
Environmental Factors:
In the Dabur PESTLE Analysis, the environmental elements affecting its business are as below:
Since people are becoming more conscious about the environment, Dabur’s products are getting its benefits.
Since the company’s products are Eco-friendly, it tends to compel people to start producing its products. Also, the climate of the country where Dabur is selling its products matter. In a country like India where summers persist for around 8 months, the beauty products like Shampoos, Juice will observe higher sales.
To conclude, the above Dabur PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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