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Sankalp Dabur Odomos
Sankalp Dabur Odomos
Medium Enterprises are companies having a turnover of ₹50 crores and up to 250 crores for
manufacturing enterprises and more than 50 crores and up to 100 crores for service
enterprises. These MSE’s have been a major contributor to GDP with 45% of the total GDP
and giving employment to over 120 million people in India.
ADVANTAGES
1. Tax Benefits: The government has provided these MSE’s with certain tax
exemptions and also lower corporate tax rates which helps these
companies in having higher margins.
2. Credit Facility: Special credit systems have been created by government
from banks and other financial institutions. Raising money is easier as
compared to large enterprises.
3. Innovation Potential: Innovations are done better in medium enterprises
as compared to large enterprises as there is flexibility and ease of
adaptability and also young minds gets new and good ideas inside the
business.
4. Government Support: Government provides these
companies/businesses with services such as training, upgraded
technology and how to build a network, investments opportunities.
CHALLENGES
1. Competition: Enterprises who are there in this category face a lot of
competition from the large firms operating in the same industry. This
affects the newly established firms a lot, not allowing them to grow at a
steady rate.
2. Limited Resources: There is availability of less number of resources as
compared to large companies, which makes their growth difficult.
3. Burden Of Regulations: Regulatory Environment that is complex and
burdensome makes it difficult for them to operate.
4. Awareness: There is not much awareness about the enterprises under
MSE’s, which makes it difficult to get government support and also to
gain government support services available to them.
5. Skilled Labour: Finding and retaining skilled labour is difficult as they
tend to go for more popular and large organisations to get more benefits
from them.
ODOMOS (DABUR)
Dabur Odomos is a mosquito repellent brand, acquiring 96% of the overall
₹4400crore in India. The company has been certified by National Integrated
Medical Association for Odomos as a safe for humans and a highly efficient
against mosquitos. Odomos has been growing using different ways to tackle
the market and gain major market share.
1) Concentration
Dabur Odomos devotes all of its resources to dominate the Indian insect repellant
business. By emphasizing efficacy and quality, the company has purposefully built a
strong brand identity. Dabur Odomos intends to maintain its position as the nation's
top brand by focusing on effective marketing and establishing a strong presence in
rural areas where mosquito-borne ailments are prominent.
2) Integration Strategy
Dabur Odomos pursues an integration strategy through strategic alliances, most
notably with Godrej Consumer Products Limited. This collaboration will almost
certainly involve pooling resources, talents, and distribution channels, resulting in a
more robust and integrated value chain. This integration has the ability to expand the
reach of products, enhance market share, and boost overall competitiveness.
3) Cooperative Strategy
Collaboration is facilitated by strategic alliances like the one with Godrej Consumer
Products Limited. Dabur Odomos seeks to collaborate with other businesses in order
to take use of complementary resources and abilities. This cooperative strategy
fosters synergy and raises the brand's overall competitiveness in the market.
4) Diversification Strategy
Dabur Odomos is expanding into new markets in Africa and the Middle East. Using
this diversification strategy, the company can reduce its reliance on a single market
and explore untapped areas around the world. Expanding into multiple geographic
locations decreases the risks associated with changes in the market in a certain area.
BOSTON CONSULTING GROUP (BCG) MATRIX
The BCG Matrix is a tool that positions the product lines or strategic business
units on the basis of Market Growth Rate and Market Share. The matrix is
divided into 4 quadrants as Stars, Question Mark, Cash Cows and Dogs.
1) STARS
This is a situation when there is high growth rate of Industry and high market
share of the company. The company is having a huge sum of cash due to high
market share and also requires high cash to invest due to high industry
growth rate.
Dabur Odomos has a dominant market share in a market that is expanding
quickly, it is considered a "Star". Based on its strong brand awareness,
extensive distribution network, and innovative products, Odomos looks to be
the market leader in India's mosquito repellent industry. The product's
potential as a star is enhanced by the emphasis on effective marketing and
market expansion.
2) QUESTION MARK
This arises when there is High Industry Growth Rate but the company is
having a low market share. Maintaining in the market is an issue for them and
requires a large sum of cash to gain market share. Analyses should be done
carefully in order to determine whether investment should be done or not.
Dabur Odomos is not explicitly in the question mark segment but when they
entered into Middle East and Africa, as there is not much presence in these
regions, they are in Question Mark in these regions.
3) CASH COWS
The company is having a high market share but there is not much scope in the
industry growth. The company is having a large return on assets and does not
consume much cash. The company focuses more towards investment and to
find new aspects through research and development.
Given that Dabur Odomos operates in a market with increasing demand for
insect repellents—particularly given the prevalence of mosquito-borne
diseases—it is probable that the company does not fall into the cash cow
category.
4) DOGS
There is no scope in the industry growth as well as the company is not having
major market share in the industry. There is little potential and the capital
available can be used elsewhere as the generation of cash is not there in the
industry.
Given its goals for expansion and strong standing in India's mosquito repellent
market, Dabur Odomos is less likely to be classified as a dog.
In summary, Dabur Odomos can be classified majorly under the category of “STARS” with
rapid growth in the industry and a market leader with high market share due to their strong
brand recognition, good distribution network, product development and expansion into new
markets. Businesses regularly use the BCG Matrix as a dynamic tool to aid in strategic
decision-making. Product or business unit placement may change over time depending on
management initiatives and market conditions.
HIGH LOW
MARKET SHARE