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‘‘Market Expansion Strategy of Dabur with Special Reference
to Dabur Chyawanprash ’’
DISSERTATION
2013
Submitted for the partial fulfillment of the requirement for the award
Of
POST GRADUATE DIPLOMA IN MANAGEMENT
SUBMITTED BY
NAVEEN KUMAR
Roll No. 12021
UNDER THE GUIDENCE OF
Mr. RajeevGupta
DEPARTMENT OF MANAGEMENT
INSTITUTE OF MANAGEMENT EDUCATION
SAHIBABAD
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CERTIFICATE
This is to certify that the Dissertation titled ‘‘Market Expansion Strategy of
Dabur with Special Reference to Dabur Chyawanprash” submitted by Mr.
NAVEEN KUMAR, student of PGDM (2012-14) in INSTITUTE OF
MANAGEMENT EDUCATION, Ghaziabad for the partial fulfillment of the
requirement of the POST GRADUATE DIPLOMA IN MANAGEMENT,
embodies the bonafide work done by him under my supervision.
Mr. Rajeev Gupta
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ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an
amalgamation of the efforts, ideas and co-operation of a number of entities. The
compilation and presentation of this opuscule has bestowed me with an opportunity
to show my gratitude to those subservient to it.
I am highly indebted to my guide Mr. Rajeev Gupta, who has been the hallmark of
this effort. Their guidelines made me comprehend the enigmatical portion of the
subject and were the sole animating force that coerced me to meliorate my efforts
without the support and guidance the project report would not have taken shape.
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CONTENTS
1. Acknowledgement
2. Executive Summary
3. Overview Of Fmcg Sector In India
4. About Dabur
 ProductLine
 Swot Analysis Of Dabur
 The Marketing Mix And selling Process
5. The Marketing Mix
6. Objective Of The Study
7. Research Methodology
8. Data Analysis
9. Recommendations
10. Competitor Analysis
11. Conclusions
12. Bibliography
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PREFACE
Management training has gained rapid importance only recently. Management was
previously considered as an inborn art or talent. But in today’s fast developing
word this view has been abandoned.
To develop managerial capabilities and to supplement their theoretical knowledge
with practical experience, the management students are required to go training in
business organization.
This study would not only help me as a management student to gain a deep insight
of how an organization works but also practical usage of all management
techniques that I have learnt during the course of my study. This project would also
help me analyze the difference between the organizational realities and the theories
that have been taught in my academic session and also gave me a real experience
of the corporate world let me better understand how it function. It also taught me
how to take every experience in the right and learn from each one. Finally the
analysis feasible to be put to test in real life situations. I shall consider all my hard
work worthwhile if this endeavor of mine is able to satisfy all those concerned and
proves useful to anyone or for any further study in the future.
NAVEENKUMAR
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EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur
India Ltd (DIL) for the brands Dabur Chyawanprash. Pioneering role that it has
played in the evolution of the categories it has had a presence in. Dabur
Chyawanprash is the leader in the Chyawanprash category and enjoys a market
share of 61 per cent. In 50s Dabur pioneered the conceptof branded Chyawanprash
and since has invested heavily in product development, clinical studies and
consumer awareness. The product is essentially a health supplement.
This report is not aiming at the overall marketing mix or the marketing strategy of
Dabur India Ltd, but is an attempt to analyze the marketing mix of Dabur
Chyawanprash.
The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc.
This analysis has been done on the basis of the information gathered from the
company website and other online resources and books and articles.
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OVERVIEW OF FMCG SECTOR IN INDIA
The Indian FMCG sector is the fourth largest sector in
the economy with a total market size in excess of US$
13.1 billion. It has a strong MNC presence and is
characterized by a well-established distribution network,
intense competition between the organized and
unorganized segments and low operational cost.
Availability of key raw materials, cheaper labour costs and
presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4
billion in 2015. Penetration level as well as per capita consumption in most
product categories like jams, toothpaste, skin care, hair wash etc in India is low
indicating the untapped market potential. Burgeoning Indian population,
particularly the middle class and the rural segments, presents an opportunity to
makers of branded products to convert consumers to branded products. Growth is
also likely to come from consumer 'upgrading' in the matured product categories.
With 200 million people expected to shift to processed and packaged food by
2010, India needs around US$ 28 billion of investment in the food-processing
industry.
India is one of the largest emerging markets, with a population of over one billion.
India is one of the largest economies in the world in terms of purchasing power
and has a strong middle class base of 300 million. Around 70 per cent of the total
households in India (188 million) reside in the rural areas. The total number of
rural households is expected to rise from 135 million in 2001-02 to 153 million in
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2009-10. This presents the largest potential market in the world. The annual size
of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02.
With growing incomes at both the rural and the urban level, the market potential is
expected to expand further.
Rural and urban potential
Rural-urban profile
Urban Rural
Population 2001-02 (mn household) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
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Source: Statistical Outline of India (2010-11), NCAER
An average Indian spends around 40 per cent of his income on grocery and 8 per
cent on personal care products. Thelarge share of fast moving consumer goods
(FMCG) in total individual spending along with the large population base is
another factor that makes India one of the largest FMCG markets
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
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ABOUT DABUR
COMPANY OVERVIEW
Over its 120 years of existence, the Dabur brand has stood for goodness through a
natural lifestyle. An umbrella name for a variety of products, ranging from hair
care to honey, Dabur has consistently ranked among India’s top brands. Its brands
are built on the foundation of trust that a Dabur offering will never cause one harm.
The trust levels that this brand enjoys are phenomenally high. While Ries and
Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The
answer is fairly simple, it stands for India’s fourth largest fast moving consumer
goods company that both consumers and trade respect and trust unequivocally, and
which has an annual turnover of over Rs 15 billion.
The company has kept an eye on new generations of customers with a range of
products that cater to a modern lifestyle, while managing not to alienate earlier
generations of loyal customers.
Dabur is an investor friendly brand as its financial performance shows. There is an
abundance of information for its investors and prospective information including a
daily update on the share price (something that very few Indian brands do). There’s
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a great sense of responsibility for investors’ funds on view. This is a direct
extension of Dabur’s philosophy of taking care of its constituents and it adds to the
sense of trust for the brand overall.
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DABUR AT-A GLANCE
Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story of
success is based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results of our
Policies and initiatives speak for themselves.
 Leading consumer goods company in India with a turnover of Rs.2233.72
Crore (FY07)
 2 major strategic business units (SBU) - Consumer Care Division (CCD)
and Consumer Health Division (CHD)
 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur
International and 3 step down subsidiaries of Dabur International - Asian
Consumer Care in Bangladesh, African Consumer Care in Nigeria and
Dabur Egypt.
 13 ultra-modern manufacturing units spread around the globe
 Products marketed in over 50 countries
 Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India

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DABUR HISTORY
1884 Birth of Dabur
1896 Setting up a manufacturing plant
Early
1900
Ayurvedic medicines
1919
Establishment of research
laboratories
1920 Expands further
1936
Dabur India (Dr. S.K. Burman) Pvt.
Ltd.
1972 Shift to Delhi
1979
Sahibabad factory / Dabur Research
Foundation
1986 Public Limited Company
1992
Joint venture with Agrolimen of
Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998
Professionals to manage the
Company
2000 Turnover of Rs.1,000 crores
2003 Dabur demerges Pharma Business
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2005 Dabur aquires Balsara
2005
Dabur announces Bonus after 12
years
2006
Dabur crosses $2 Bin market Cap,
adopts US GAAP
2006
Approves FCCB/GDR/ADR up to
$200 million
2007 Celebrating 10 years of Real
2007 Foray into organised retail
2007
Dabur Foods Merged With Dabur
India
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FOUNDER AND LEADERS
Founding Thoughts
"What is that life worth which cannot bring comfort to others"
The doorstep ‘daktar’
The story of Dabur began with a small, but visionary
Endeavour by Dr. S. K. Burman, a physician tucked away in
Bengal. His mission was to provide effective and affordable
cure for ordinary people in far-flung villages. With missionary
zeal and fervour, Dr. Burman undertook the task of preparing
natural cures for the killer diseases of those days, like cholera, malaria and plague.
Soon the news of his medicines traveled, and he came
to be known as the trusted 'Daktar' or Doctor who came
up with effective cures. And that is how his venture Dabur got its name - derived
from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884
to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of
people who had no access to proper treatment. Dr. S. K. Burman's commitment and
ceaseless efforts resulted in the company growing from a fledgling medicine
manufacturer in a small Calcutta house, to a household name that at once evokes
trust and reliability.
The mission continues...
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VISION
"Dedicatedto the health and well being of every household"
This is our company. We acceptpersonal responsibility, and accountability to meet
business needs.
We all are leaders in our area of responsibility, with a deep commitment to deliver
results. We are determined to be the best at doing what matters most.
People are our most important asset. We add value through result driven training,
and we encourage & reward excellence.
We have superior understanding of consumer needs and develop products to fulfill
them better.
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We work together on the principle of mutual trust & transparency in a boundary-
less organization. We are intellectually honest in advocating proposals, including
recognizing risks.
Continuous innovation in products & processesis the basis of our success.
We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each other.
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MILESTONE
Milestones to success
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued
to learn and grow to a commanding status in the industry. The Company has gone
a long way in popularizing and making easily available a whole range of products
based on the traditional science of Ayurveda. And it has set very high standards
in developing products and processes that meet stringent quality norms. As it
grows even further, Dabur will continue to mark up on major milestones along
the way, setting the road for others to follow.
1884 - Establishedby Dr. S K Burman at Kolkata
1896 - First production unit established at Garhia
1919 - First R&D unit established
Early 1900s -Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialization.
It is the first Company to provide health care through scientificallytested
and automated production of formulations based on our traditional science.
1930 - Automation and up gradation of Ayurvedic products
manufacturing initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personalcare through Ayurveda
Dabur introduces Indian consumers to personalcare through Ayurveda, with
the launch of Dabur Amla Hair Oil. So popular is the productthat it becomes
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the largest selling hair oil brand in India.
1949 - Launched Dabur Chyawanprashin tin pack
Widening the popularity and usage of traditional Ayurvedic products
continues. The ancient restorative Chyawanprashis launched in packaged
form, and becomes the first branded Chyawanprash in India.
1957 - Computerization of operations initiated
1970 - Entered Oral Care & Digestives segment
Addressing rural markets where homemade oral care is more popular than
multinational brands, Dabur introduces Lal Dant Manjan. With this a
conveniently packaged herbal toothpowderis made available at affordable
costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978 - Launches Hajmola tablet
Dabur continues to make innovative products based on traditional formulations
that can provide holistic care in our daily life. An Ayurvedic medicine used as
a digestive aid is branded and launched as the popular Hajmola tablet.
1979 - Dabur ResearchFoundationsetup
1979 - Commercialproduction starts at Sahibabad, the most modern
herbal medicines plant at that time
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
1989 - Care with fun
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The Ayurvedic digestive formulation is converted into a children's fun product
with the launch of Hajmola Candy. In an innovative move, a curative product
is converted to a confectionary item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncologysegment
1994 - Leadership in health care
Dabur establishes its leadership in health care as one of only two companies
worldwide to launch the anti-cancerdrug Intaxel (Paclitaxel). Dabur
Research Foundation develops an eco-friendly process to extract the drug from
its plant source
1996 - Enters foods business with the launch of RealFruit Juice
1996 - Realblitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of
RealFruit Juices - a new conceptin the Indian foods market. The first local
brand of 100% pure natural fruit juices made to international standards, Real
becomes the fastestgrowing and largestselling brand in the country.
1998 - Burman family hands over managementof the company to
professionals
2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of
Rs.1,000crores. Acrossa span of over 100 years, Dabur has grown from a
small beginning based on traditional health care. To a commanding position
amongst an august league of large corporatebusinesses.
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2001 - Super specialtydrugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company
gains entry into the highly specializedarea of cancertherapy. The state-of-
the-art plant and laboratory in the UK have approval from the MCA of UK.
They follow FDA guidelines for productionof drugs specifically for European
and American markets.
2002 - Dabur record sales ofRs 1163.19crore on a net profit of Rs 64.4
crore
2003 - Dabur demerges Pharmaceuticals business
Dabur India approved the demerger of its pharmaceuticals business from the
FMCG business into a separate company as part of plans to provider greater
focus to both the businesses. With this, Dabur India now largely comprises of
the FMCG business that include personal care products, healthcare products
and Ayurvedic Specialties, while the Pharmaceuticals business would include
Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a
subsidiary of Dabur India, would also be part of the Pharmaceutical business.
Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards,
Dabur became the first Ayurvedic products company to get ISO 9002
certification.
Science fornature
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a
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subsidiary of Dabur India, has set up fully automated greenhouses in Nepal.
This scientific landmark helps to produce saplings of rare medicinal plants that
are under threat of extinction due to ecological degradation.
2005 - Dabur acquires Balsara
As part of its inorganic growth strategy, Dabur India acquires Balsara's
Hygiene and Home products businesses, a leading provider of Oral Care and
Household Care products in the Indian market, in an Rs 143-crore all-cash
deal.
2005 - Dabur announces bonus after 12 years
Dabur India announced issue of 1:1 Bonus share to the shareholders of the
company, i.e. one share for every one share held. The Board also proposed an
increase in the authorized share capital of the company from existing Rs 50
crore to Rs 125 crore.
2006 - Dabur crosses$2 bin market cap, adopts US GAAP.
Dabur India crosses the $2-billion mark in market capitalization. The company
also adopted US GAAP in line with its commitment to follow global best
practices and adopt highest standards of transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million
Moving forward on the inorganic growth path, Dabur India decides to raise up
to $200 million from the international market through Bonds, FCCBs, GDR,
ADR, QIPs or any other securities. The capital raised will be used to fund
Dabur's aggressive growth ambitions and acquisition plans in India and abroad.
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2007 - Celebrating 10 years of Real
Dabur Foods unveiled the new packaging and design for Real at the completion
of 10 years of the brand. The new refined modern look depicts the natural
goodness of the juice from freshly plucked fruits.
2007 - Forayinto organisedretail
Dabur India announced its foray into the organised retail business through a
wholly-owned subsidiary; H&B Stores Ltd. Dabur will invest Rs 140 crores by
2010 to establish its presence in the retail market in India with a chain of stores
on the Health & Beauty format.
2007 - Dabur Foods MergedWith Dabur India
Dabur India decides to merge its wholly-owned subsidiary Dabur Foods
Limited with itself to extract synergies and unlock operational efficiencies. The
integration will also help Dabur sharpen focus on the high growth business of
foods and beverages, and enter newer product categories in this space.
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BOARD OF DIRECTOR
Dabur has an illustrious Board of Directors who is committed to take the
company onto newer levels of human Endeavour in the service of mankind. The
Board comprises of:
Chairman
Vice-
Chairman
Dr. Anand Burman Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip
Burman
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Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
His Highness
Maharaja
Mr. P N Vijay Mr. R C
Bhargava
Dr. S. Narayan
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Spanning a career of over 20 years, Sunil Duggal has travelled widely across India
and handled diverse portfolios that have helped him understand the dynamics of
FMCG businesses and market trends. He is well versed in the intricacies of India's
regional diversities and consumer needs.
Sunil Duggal
Chief Executive Officer
Dabur India Limited
Sunil Duggal took over as the Chief Executive Officer
of Dabur India Limited in June 2002, holding reins of the
organisation he joined in 1995.
Mr. Duggal started his career as a management trainee in
Wimco Limited in 1981 after getting his Engineering
Degree (Electrical & Electronics) from BITS, Pilani, and
Business Management from IIM, Calcutta. His stint at
Wimco continued till 1994, with a break in between
when he joined Bennett
Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foodsas GM,
Sales Operation.
In 1995 he came into the Dabur family, as General Manager (Sales & Marketing),
of the Family Products Division with products like Dabur Amla, Lal Dant Manjan
and Vatika in his portfolio. This Division spearheaded the spectacular growth
recorded by Dabur in this period. Vatika was also launched during this period and
is now the Company's second biggest brand.
With his dynamic spirit and leadership abilities, he soonbecame Vice-President
and SBU-Head of the Family Products Division. In July 2000 Mr. Dug gal was
appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he
became the CEO of the Company - a professional with valuable experience to steer
the company ahead in its growth plans.
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Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break
from his official responsibilities, Mr. Duggal likes to spend time at home with his
family and an occasional round of golf.
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CORPORATE GOVERNANCE
Good corporategovernance and transparency in actions of the management is key
to a strong bond of trust with the Company’s stakeholders. Dabur understands the
importance of good governance and has constantly avoided an arbitrary decision-
making process.Our initiatives towards this end include:
 Professionalization of the board
 Lean and active Board(reduced from 16 to 10 members)
 Less number of promoters on the Board
 More professionals and independent Directors for better management
 Governed through Board committees for Audit, Remuneration, Shareholder
Grievances, Compensation and Nominations
 Meets all CorporateGovernance Coderequirements of SEBI
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CORPORATE CITIZENSHIP
When our Founder Dr. S. K. Burman first established Dabur, he had a vision that
saw beyond the profit motive. In his words, "What is that life worth which cannot
bring comfort to others?" This ideal of a humane and equitable society led to
initiatives taken to give back some part of what Dabur has gained from the
community.
Our major initiatives in the Social sector include:
 Establishment of the Sustainable Development Society, or Sundesh, in 1993
- a non-profit organisation to promote research and welfare activities in rural
areas;
 Promoting health and hygiene amongst the underprivileged through the
Chunni Lal Medical Trust; and
 Organizing the Plant for Life programme for schoolchildren- to create
environmental awareness amongst young minds.
Our commitment to Environment
Ancient wisdom of conservation
From times immemorial, Indian sages and men of wisdom have understood and
appreciated the value of nature and its conservation. Our ancestors recognized that
if we grabbed from nature beyond what was healthy, it would lead to all round
degradation, and even the extinction of humanity. That is why nature was
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sanctified and worshipped in the form of gods and goddesses.
Dabur upholds the tradition
Today, we at Dabur also value nature's bounty. Without the fruits of nature, the
vision of Dabur would never have been fulfilled. And that is the reason for our
unfailing commitment to ecological conservation and regeneration. We would like
to follow the principles of our ancient texts, which say:
"Dehi me dadami te" - "you give me, and I give you".
Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all
our products are derived. Due to overexploitation of these resources and
unsustainable practices, these plants and herbs are fast reaching the point of
extinction. In view of this critical situation, Dabur has initiated some significant
programmes for ecological regeneration and protection of endangered plant
species.
Plants for Life
We have set up the "Plants for Life" project in the mountainous regions of the
Himalayas. Under the project, a high-tech greenhouse facility has been set up for
developing saplings of rare and endangered medicinal plants. Fully computer-
controlled and monitored, this greenhouse maintains the highly critical
environmental parameters required for their survival. We are also developing
quality saplings of more than 20 herbs, 8 of them endangered, through micro
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propagation.
In addition, satellite nurseries spread across mountain villages and contract
cultivation of medicinal herbs helps in maintaining the ecological balance. These
measures have also helped provide local cultivators the scientific knowledge for
harvesting herbs and a steady source of income. So that they are not forced to
exploit the environment to earn a livelihood.
Living a GreenHeritage
These are significant steps that can contribute to a better world for coming
generations. To whom we would like to bequeath a world not bereft of nature. But
full of flowering and fruit bearing trees, animals, birds and humans living in good
health and complete harmony.
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Kaushambi Corporate
Office
Corporate Office
Kaushambi
Ghaziabad - 201010
Uttar Pradesh, India
Tel:
+91 (0120) 3982000 (30
Lines)
+91 (0120) 3001000 (30
Lines)
RegisteredOffice
8/3, Asaf Ali Road,
New Delhi – 110 002
Tel: +91 (011) 23253488
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DABUR MANUFACTURING FACILITIES IN
INDIA
Page 34 of 88
DABUR WORLD WIDE
Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today
there is global awareness of alternative medicine, nature-based and holistic lifestyles and
an interest in herbal products. Dabur has been in the forefront of popularising this
alternative way of life, marketing its products in more than 50 countries all over the
world.
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Our products World Wide
We have spread ourselves wide and deep to be in close touch with our overseas
consumers.
 Offices and representatives in Europe, America and Africa ;
 A special herbal health care and personal care range successfully selling in
markets of the Middle East, Far East and several European countries.
 Inroads into European and American markets that have good potential due to
resurgence of the back-to-nature movement.
 Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict
international quality benchmarks, to Europe, Latin America, Africa, and other
Asian countries.
 Export of food and textile grade natural gums, extracted from traditional plant
sources.
Partnerships and Production
 Strategic partnerships with leading multinational food and health care
companies to introduce innovations in products and services.
 Manufacturing facilities spread across 3 overseas locations to optimize production
by utilizing local resources and the most modern technology available.
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PRODUCT LINE
Foods
 Real
 Real Activ
 Hommade
 Lemoneez
 Capsico
Health Care
Baby Care
 Dabur Lal Tail
 Dabur Baby Olive Oil
 Dabur Janma Ghunti
Health Supplements
 Dabur Chyawanprash
 Dabur Glucose D
Digestives
 Hajmola Yumstick
 Hajmola Mast Masala
 Anardana
 Hajmola
 Hajmola Candy
 Hajmola Candy Fun2
 Pudin Hara (Liquid and Pearls)
 Pudin Hara G
 Dabur Hingoli
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Natural Cures
 Shilajit Gold
 Nature Care
 Sat Isabgol
 Shilajit
 Ring Ring
 Itch Care
 Backaid
 Shankha Pushpi
 Dabur Balm
 Sarbyna Strong
Personal Care
Hair Care Oil
 Amla Hair Oil
 Amla Lite Hair Oil
 Vatika Hair Oil
 Anmol Sarson Amla
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Hair Care Shampoo
 Anmol Silky Black Shampoo
 Vatika Henna Conditioning Shampoo
 Vatika Antidandruff Shampoo
 Anmol Natural Shine Shampoo
Oral Care
 Dabur Red Gel
 Dabur Red Toothpaste
 Babool Toothpaste
 Dabur Lal Dant Manjan
 Dabur Binaca Toothbrush
Skin Care
 Gulabari
 Vatika Fairness Face Pack
Ayurvedic Specialties
 Ayurveda
 Ayurveda Vikas
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ACCOLADES 2009-10
Dabur Amongst Top Three Most
Respected FMCG Companies
Dabur Real Bags Gold In Reader's
Digest Trusted Brand Awards
Dabur Figures In Top Great Place
To Work 2006 List
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ACCOLADE 2008-09
Dabur has been ranked
amongst India's Most
Innovative Companies
by a Business Today-
Monitor Group survey
Hajmola has been
ranked 34th in India’s
100 Most Valuable
Brands list
Hajmola, one of the
strongest brands in
Dabur's portfolio, has
been listed among the
Top 18 Iconic Brands
in India that have
stood the test of time
Dabur India’s fruit Three Dabur brands -- Hajmola moves up 11
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juice brand Réal
awarded the Reader’s
Digest Gold Trusted
Brand Award 2008 in
the food & beverages
category
Hajmola, Dabur Amla
and Vatika -- have
debuted in the
Economic Times Brand
Equity's Most Trusted
Brands 2008 list.
Besides, Dabur Foods
has climbed up to take
the 40th spot
spots to take the 34th
position among India's
Top 100 Most
Valuable Brands of
2008, released by 4Ps
and ICMR
Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most
valuable (Company) Brands by Brand Finance
newu was voted the
Most Admired New
Retail Launch of the
Dabur India CEO Mr.
Sunil Duggal was
named Best Corporate
Dabur India Ltd was
ranked the Business
Leader in the FMCG -
Page 42 of 88
year at Images Retail
Awards
Leader of 2008 at the
B&E Leadership and
Excellence Awards
Personal Care
Category at the NDTV
Profit Business
Leadership Award
2008
Dabur India Ltd CEO
Mr. Sunil Duggal has
been ranked among
India's Most 'value'able
CEOs by Business
World
Dabur India Ltd has been listed among the
Super 100 of India Inc, prepared by Business
India
Page 43 of 88
5. SWOT ANALYSIS OF DABUR
STRENGTHS
 Strong presence in well defined
niches( like value added Hair Oil
and Ayurveda specialities)
 Core knowledge of Ayurveda as
competitive advantage
 Strong Brand Image
 ProductDevelopment Strength
 Strong Distribution Network
 Extensive Supply Chain
 IT Initiatives
 R & D – a key strength
WEAKNESS
 Seasonal Demand( like
chyawanprash in winter and
Vatika not in winter)
 Low Penetration(Chyawanprash)
 High price(Vatika)
 Limited differentiation (Vatika)
 Unbranded players account for
the 2/3rd of the total
market(Vatika)
Page 44 of 88
OPPORTUNITIES
 Untapped Market(Chyawanprash)
 Market Development

 Export opportunities.
 Innovation
 Increasing income level of the
middle class
 Creating additional consumption
pattern
THREATS
 Existing Competition( like
Himani, baidyanath and Zandu
for Dabur Chyawanprash and
Marico,Keo Karpin, HLL and
Bajaj for Vatika Hair Oil)
 New Entrants
 Threat from substitutes (like
Bryllcream for Vatika hair oil)
Page 45 of 88
The Marketing Mix
Product Place
Target
Market
Price Promotion
The firm attempts to generate a positive responsein the target market by blending
these four marketing mix variables in an optimal manner.
Page 46 of 88
A.
Summary Table of the Marketing Mix
The following table summarizes the marketing mix decisions, including a list of
some of the aspects of each of the 4Ps.
Summary of Marketing Mix Decisions
Product Price Place Promotion
Functionality
Appearance
Quality
Packaging
Brand
Warranty
Service/Suppor
t
List price
Discounts
Allowances
Financing
Leasing
options
Channel members
Channel
motivation
Market coverage
Locations
Logistics
Service levels
Advertising
Personal
selling
Public
relations
Message
Media
Budget
Page 47 of 88
DABUR FOODS SELLING PROCESS
 Dabur food process ofselling starts from stockiest.
 C&FA dosenot have any process to play in the process ofselling of dabur
foods products. They are just Clearing & Forwarding Agents they store the
manufacturing products and then supply it to stockiest.
 Stockiest pay the money to dabur foods through demand draft.
 Stockiest further sells the products to retailers.
 Retailer finally sells the products to consumers.
MARKETING HOW DABUR FOODS IS USING MIX
Product
Appearance: Dabur tries to make its products appear very attractive.
Quality: Quality of the productis really unmatchable as it is tested number of
times and its products are processedusing very advanced machinery and
technology.
Packaging:Dabur products packaging is done in such a way that its juices does
not get expired before 6 months inspite of perishable products.
Brand: Dabur itself is a very reputed and well known brand in the market and its
Real juice is also known all over India.
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Warranty: Dabur as such does not gives any warranty but if there is any problem
in its products beforeexpiry then they replace the product.
Service/Support: Dabur foods provide full supportto its stockiest, retailers and
consumers, what so ever the problem is
Price
List price: Dabur decide its price according to its competitors and the price
structure is different for retailers and stockiest.
Discounts: There are different discounts for retailers, stockiest and consumer from
time to time.
Allowances:Special allowances are given to stockiest sales man if he actives his
targets.
Place
Channel members: Channel members or business partners of dabur are its
stockiest, retailers.
Channel motivation: Channel motivation for dabur is pull and push strategy.
Marketcoverage:Dabur Foodshas a distribution network that covers 175 towns
and 75 thousand retail outlets making its productavailable to the consumers across
the country at ease.
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Locations: Dabur foods try to cover or try to place its products in each and every
shop and every location.
Promotion
Advertising: Dabur products are advertised through television, newspapers,
magazine etc.
Personalselling: Dabur hardly do any personal selling except in tent shows and
road shows. Same for less & more for same
Media: Media of promotion is TV, Radio, newspapers, magazine.
Budget: Budget is decided by finance team for different strategic business unit.
Critique of selling
In theory, the purposeof selling is to help a customer realize his or her goals in an
economic fashion. However, in reality this is not always the case. Customers can
be influenced to purchase a productor service that initially was not of interest to
them. Some salespeople are trained in the art of selling customers things they don't
need.
Take for example the purchasing of a car: a consumer may have a set of cars in
mind (called an evoked set) that she feels match her needs, wants and budget. She
may seek the advice of a salesperson given that a salesperson can help her realize
the right car given those criteria. This can be a socially useful function; salespeople
Page 50 of 88
have specialized knowledge of products that can help consumers make an informed
decision. However, a salesperson may also talk a consumer into purchasing a more
expensive or perhaps larger car then she needs or can afford. In this context, the
salesperson may have usefully helped the customer re-evaluate her needs, thereby
establishing a new set of appropriate choices among which included the newer or
large car. This again would be a helpful and useful service provided by the
salesperson. However, it is sometimes the case that customers purchase a product
or service that was not initially intended and remains an inappropriate purchase
after the fact. On the other hand, the consumer in this scenario can be held partially
responsible for the inappropriate purchase; indeed, "A fool and his money are soon
parted." (P.T. Barnum, English proverbs)
This dysfunctional behavior is encouragedby:
Incentives of salespeople to increase their total number of sales, especially
where retailers keep track of sales or offer commission-based salaries
 Incentives from the manufacturer of products or the companies of service
providers to salespeople to sell their products where other similar products
offered by competitors are offered
 The incentive to sell a customer a productthat is in need of being cleared
out, despite the fact that a customer may be better to wait for the new
product
Page 51 of 88
B.
Channel Of Distributions
Manufacturing Plant
Clearing and forwarding agent (different regions)
Stockist A Stockist B Stockist C
Retailers Retailers Retailers Retailers Retailers Retailers
Page 52 of 88
CONSUMERS
The above diagram it shows channel of distribution of dabur foods, here first the
products are manufactured and from Manufacturing plants the packed goods are
supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are
then further supplied to number of Stockiest or Distributors, from here goods
reaches to large number of Retailers and it is the duty of Stockiest to take orders
from retailers and then supply the goods to them, this work is generally done by
stockiest salesman through ready stockor by taking orders first and then placing
the order. From here the goods finally reaches to Customers. Customer purchases
the productfrom retailers.
This was the basic Channel of Distribution used by Dabur Foods, now I will throw
light on each channel of distribution of Dabur Foods.
Supply Chain Management:
Supply chain management starts before physical distribution: it involves procuring
the right inputs (raw materials, components and capital equipment), converting
them into finished products and dispatching them to the final destinations. The
supply chain perspective can help identify superior suppliers and distributors and
help them improve productivity, which ultimately brings down the company’s
costs.
A broader view sees a company at the center of a value network that
includes its suppliers, its immediate customers and their end customers. The value
network includes valued relations with others such as university researchers,
government approval agencies and so on.
Page 53 of 88
MANUFACTURING PLANT:
Dabur Foods has Number of products in its productline but its main area of
interest or the producton which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is
manufactured and tested.
PROCUREMENT & TRANSPORT:
 Getting the raw material and packaging material requirement from the
production unit in charge
 Constant updates on the procurement of materials and transport details
 Production details and ingredient content information from the different
personnel and coordinating this activity
PACKAGING:
 Approval and coordination of the supply of packaging material to the
production unit
CLEARING AND FORWARDING AGENTA (C&FA)
 From manufacturing plant the stock is transported or supplied to clearing
and forwarding agents.
 Clearing and Forwarding Agents is a third party and Dabur gives contract to
them, so company has nothing to do in building the relationship with them.
 Here C&FA keep or stock the goods with them.
 They charge dabur for stocking the good and even dabur don’t mind doing
so as it is a measure of cost cutting as well as there is no need for gowdowns
and maintenance.
 For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in
Mohan Nagar, here all goods which dabur foods hare kept here.
Page 54 of 88
C.
STOCKIEST OR DISTRIBUTORS
 Stockiest store the products in their godowns, C&FAsupplies the goods to
them as per their order.
 Stockiest has some sales men working under him, they are known as
stockiest sales man. Their work is to place the products in the market and
take order from retailers and then supply goods to them.
 Sales man either takes ready stockwith them or they first take orders and
then supply goods later on.
 There is a beat which is a schedule route of sales man, means sales man has
to daily cover the route as mention in the beat.
 Merchandising, making products visible, pasting posters, putting banners,
and seeing that goods are properly placed in the retail outlets is also the duty
of stockiest sales man.
 Companies’ sales officer keeps a check on the stockiest and monthly report
is also prepared which is further analyzed by ASM & ZSM.
 In Noida Dabur has 1 stockist, and in Ghaziabad 1
Page 55 of 88
D.
RETAILERS
 Retailers are backboneof the company as they are the one who can take the
producton new heights or can bring it down to toes.
 Stockiest supplies goods to retailers and tries Persuading retailers to give the
brand special displays (using merchandising tools) to get affective brand
presence, and arranging it in more noticeable manner.
 Classification of outlets in different type of markets is different according to
their sales volume.
TYPES OF RETAILS OUTLETS
Class Average Monthly Business
A Above 10,000
B 5,000-10,000
C Upto 5,000
 Margin of retailers is always higher than stockiest.
 Retailers are the one who have direct contactwith the customers.
 Dabur Foods has a distribution network that covers 175 towns and 75
thousand retail outlets making its productavailable to the consumers across
the country at ease.
E.
Page 56 of 88
TYPES OF RETAIL MARKET
The retail market can be classified on the basis of magnitude of retail.
 SCATTERED MARKET
Lesser no. of outlets, and
Extensive outlets
 BLOCK MARKET
Large no. of retail outlets in chunk
 SUPER MARKET
Through their superior information, logistical systems and buying power deliver
good service and immense volumes of products at attractive prices.
 CHAIN OUTLETS
Having more than one key outlet all across with a single controlunit and central
purchasing strategy
Page 57 of 88
7.
THE FUTURE FOR DABUR
Tapping the world markets: Dabur India, under its new brand
architecture, has five power brands under its portfolio with distinct
offerings — Vatika, a herbal beauty brand with products like Vatika Shampoo,
Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with products
like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with
Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and
has products like Real Fruit juices, Lemoneez; and the recently launched Anmol
which is a cross category value-for-money brand. Dabur has decided to take two of
its five power brands — Dabur and Vatika — global through its Dubai-based arm
Dabur India.
And the Big B and Rani Mukherjee will help the company get a toehold in the
world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore
FMCG major has also decided to give a new impetus to its international food
supplement brand, Nature4u, by now launching it in the burgeoning Gulf
market. It is currently being sold only in UK and EU. “We have drawn an
aggressive plan to launch Dabur and Vatika globally, starting from the Middle East
, GCC and SAARC countries. We expect our market share to double within two
years in the 10 countries we will focus on initially,’’ said Mr Arvind Kumar, CEO,
Dabur International. The 10 top-of-mind markets for Dabur right now are UAE,
Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and
Nigeria.
To develop Dabur International as its major overseas hub to service all markets
except Russia , the company is setting up a new plant which is expected to be
ready in a year. Dabur International already has a plant in Jabel Ali to both
Page 58 of 88
package products sourced from India and produce some local variants. Dabur India
has been selling its product in Dubai and GCC countries since 1992 through a
franchise — Redrock Limited. The company had acquired this franchise last year
at investments of about USD five million.
Growing market share: While there is no doubt that Dabur now has a presence in
several product categories ranging from hair care to oral care to home care to
health supplements to juices and even soaps, it is also true that in some of these
segments its market share is very low and trails the market leader by a huge
margin. For instance, Dabur only has a 6% market share in shampoos against
HLL’s 53%, and a 12% share in the oral care segment against Colgate’s 46%.
Company officials believe that low market share means that there are substantial
growth opportunities even if these categories do not grow. “Our market shares are
low in some segments. This gives us opportunity to penetrate these categories,’’
says Mr Narang.
Drivers of growth: For the future, Dabur has identified foods, home care
products, skin care and OTC health care products as its growth engines. The
company plans to ramp up its home care business and in the food category it is
looking at expanding its Hommade range of cooking pastes and purees. In the skin
care segment, the company launched the Dabur Anmol cold cream last year and its
Vatika honey and saffron soap is currently under test launch.
Expansion in south India: Dabur is looking at expanding its business in south
India, which currently accounts for around 15% of its total sales.
Page 59 of 88
Objectives of the Study:-
 To understand the demand pattern of Dabur Chyawanprash products in the
market.
 To know the amount of household income spent on the consumption of
FMCG products ofDabur.
 To understand the image of the products in the eyes of the consumers.
 To analysis market petition strategy of Dabur for rural market.
Page 60 of 88
Research Methodology
Primary Data : It has been collected with the help of retailers of Dabur in north
Delhi.
.
Secondary data: It has been collected with the help of books, research papers,
magazines, news papers, journals, internet, etc.
Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS
Software.
8 DATA ANALYSIS
DABUR CHYAWANPRASH
1. AWARNESS LEVEL
0
10
20
30
40
50
60
70
80
90
100
ZANDU HIMANI BAIDYANATH DABUR
PERCENTAGE
Page 61 of 88
2. PREFERRED BRAND
3.SATISFACTION LEVEL
4. REASONS FOR SELECTING APARTICULAR BRAND
0
10
20
30
40
50
60
ZANDU HIMANI BAIDYANATH DABUR
PERCENTAGE
0
1
2
3
4
5
ZANDU HIMANI BAIDYANATH DABUR
RATING(1-LOW 5-
HIGH)
Page 62 of 88
5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
6. UNAVAILABILITY OF PREFERRED BRAND
0
10
20
30
40
50
60
70
HEALTH BRAND LOYALTY TASTE PRICE
PERCENTAGE
0
10
20
30
40
50
60
70
80
TV INTERNET WOM PRINT
PERCENTAGE
Page 63 of 88
7. PREFERRED PACKSIZE
8. REASON TO SELECT PREFERREDPACK SIZE
0
5
10
15
20
25
30
35
40
PURCHASE
ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER
OFFERED BY
RETAILER
PERCENTAGE
0
10
20
30
40
50
1 Kg 500 gm 250 gm
PERCENTAGE
Page 64 of 88
9. FREQUENCYOF PURCHARE
10.
0
5
10
15
20
25
30
35
40
AVAILABILITY PRICE FAMILY SIZE STORAGE
PERCENTAGE
0
10
20
30
40
50
60
ON E MONTH TWO MONTHS SIX MONTHS
PERCENTAGE
Page 65 of 88
NO
29%
YES
71%
ARE YOU SATISFIED WITH YOUR
BRAND
Page 66 of 88
11.
importa
nt
50%
not so
ium
portant
11%
must
have
39%
offer running
importa
nt
43%
not so
ium
portant
25%
must
have
32%
price negotiation
Page 67 of 88
import
ant
41%
not so
ium
portant
21%
must
have
38%
price discount
import
ant
45%
not so
ium
portant
13%
must
have
42%
product
knowlodge
Page 68 of 88
RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1. Which brands of Chyawanprashdo you stock?
2. Out of these which are the most preferred?
0
20
40
60
80
100
ZANDU HIMANI BAIDYANATH DABUR
PERCENT…
0
20
40
60
80
ZANDU HIMANI BAIDYANATH DABUR
RATING(1-LOW 5-
HIGH)
Page 69 of 88
3. According to you what are the reasons forcustomers’preferences?
4. What is the profile of your typical consumer?
5. What schemes are you offered by the companies?
0
10
20
30
40
50
60
brand loyalty price availability no reason
PERCENTAGE
0
10
20
30
40
50
60
70
high income middle income low income
PERCENTAG
E
Page 70 of 88
6.Whatschemes does a consumer prefer most?
7. According to you, does in-store advertising have an affect on the consumers’
preference?
0
10
20
30
40
50
60
price discount buy one get one others
PERCENTAGE
0
10
20
30
40
50
60
70
price discount buy one get one others
PERCENTAGE
Page 71 of 88
8. Do a change in price affect their preferences?
0
10
20
30
40
50
60
70
yes no
PERCENTAGE
0
10
20
30
40
50
60
yes no
PERCENTAGE
Page 72 of 88
7
80
13
In how manydays you receive the productafter
placing the order
monthly 7
one week
two weeks 23
Page 73 of 88
RECOMMENDATIONS
 Focus on growing core brands across categories.
 Reaching out to new geographies, within Hapur area.
 Improve operationalefficiencies byleveraging technology.
 Be the preferred company to meet the health and personal grooming needs of
our target consumers with safe, efficacious, natural solutions by synthesizing
the deep knowledge of ayurveda and herbs with modern science.
 Provide consumers with innovative products within easyreach.
 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur
could start a venture called Vatika hair care centre which would provide total
hair care solutions. It could have hair care experts to solve hair
problems.Services could include dandruff treatment, straightening of hair,
treatment for split ends,etc.
 Position Dabur Chyawanprash as not more of a medicine but as something
which is necessary for health.
 More initiatives like “ Dabur ki Deewar”to increase brand visibility. It is an
initiative to occupyshelf space.
COMPETITOR ANALYSIS
Page 74 of 88
The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath,
Zandu and Himani, which together with Dabur have about 85% of India's domestic
market.
Dabur is India's largest Ayurvedic medicine supplier and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business level
in 2003 of about 650 million dollars per year, though only a fraction of that is
involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a
market share of 61%.
We have tried to analyse the competition for Dabur in the Chyawanprash segment
as follows:
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in
1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently
Page 75 of 88
expanded into the FMCG sector with cosmetic and hair care products; one of its
international products is Shikakai (soap pod) Shampoo.Its Chyawanprash has a
market share of 10%.
Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after
an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products
(in 1930, pharmaceuticals were added, but the pharmaceutical division was
separated off about 30 years later).
The Himani Group, founded in 1974, provides a diverse range of products, doing
110 million dollars of business annually, though only a portion is involved with
Ayurvedic products, through its Himani line; the company is mainly involved with
toiletries and cosmetics, but also provides Chyawanprash and other health
products.Its market share is 12%.
B.
STP ANALYSIS OF DABUR CHYAWANPRASH
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SEGMENTATION
Dabur Chyawanprash is the market leader in the Chyawanprash segment. It
comes under the category of health supplements. The segments that it considers
are growing kids, competitive youth, ever busy housewives and the aged.
For the growing kids: In today's competitive environment, the children are
under high pressure to excel.
For the competitive youth: Modern life keeps the youth busy and demands
them to be active and efficient.
For ever-busy housewives:The 'homemaker' needs to be fit in order to
shoulder all responsibilities.
For the aged:Old age weakens a personphysically and mentally.
After segmenting the population into these categories it aims to keep them fit
and healthy.
Page 77 of 88
TARGETING
Traditionally, chyawanprash was supposed to be a health supplement for the aged
and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth
and kids .This it is trying to achieve through its promotion activities by making
Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been
projected as a user of Chyawanprash attempting to establish the relevance of DCP
amongst the adults in today’s demanding lifestyle. Vivek, who represents an urban
ambitious non-user with a mindset that Chyawanprash is not for him, meets his
moment of truth when outperformed by a young Chyawanprash user, thus reaching
out to kids. His final conversion from a non-user to a Chyawanprash user connects
with the Youth. These two ads compliment each other and connect very well with
the targeted consumers
Page 78 of 88
POSITIONING
"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By
using a natural language instead of scientific language it is able to connect with the
consumers and is able to achieve a better positioning in the minds of the Indian
health conscious consumer. A category like Chyawanprash for instance needs to
understand that in employing the category language it loses any chance of
expressing its own benefit distinctively.
Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating
immune system, relieving stress, improving stamina, fighting aging through anti-
oxidant property, improving lung function, fighting respiratory infections &
building resistance to disease. The brand conveys this health conscious holistic
view of the product.
Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures
selection, processing and quality control of right herbs along with scientific and
clinical studies – makes DCP a trustworthy offering for consumers. Consumers
view DCP as a product by a trusted brand and therefore do not need to think twice
before making a purchasing decision.
Page 79 of 88
C.
MARKETING MIX OF DABUR CHYAWANPRASH
Dabur Chyawanprash is the market leader in the chyawanprash segment and has
achieved this with its innovative product offering, pricing strategy, easy
availability and promotion campaigns. In the marketing mix of Dabur, we shall be
discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The
mix shall be analyzed as followed:
Page 80 of 88
 Product
 Price
 Place
 Promotion
Product Price Promotion Place
• Product
Variety
• Quality
• Design
• Features
• Brand
Names
• Services
• List Price
• Discount
• Financing
Schemes
• Credit
Terms
• Advertising &
Promotion
• Public Relations
• Sponsorships
• Internet
Marketing
• Channels
• Location
• Inventory
Page 81 of 88
D.
PRODUCT
Dabur Chyawanprash is the leader in the Chyawanprash category
and enjoys a market share of 61 per cent. In 50s Dabur pioneered the
concept of branded Chyawanprash and since has invested heavily in
product development, clinical studies and consumer awareness. The
product is essentially a health supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning. The principal ingredient Amla (Indian
Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash
helps in stimulating immune system, relieving stress, improving stamina, fighting
aging through anti-oxidant property, improving lung function, fighting respiratory
infections & building resistance to disease. It is these properties that make Dabur
Chyawanprash a preferred choice for its users.
Ingredients of Dabur Chyawanprash
 Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
 Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.
Page 82 of 88
Packaging:
n
The figure above shows the evolution of the packaging of Dabur Chyawanprash.
Dabur continuously innovates the package and branding of its chayawanprash. It
launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first
branded Chyawanprash in India. Later Dabur came out with its new packet of
Chyawanprash with Amitabh Bachchan as their brand ambassador. It also
received “Brand Relaunch of the Year “award from IMA.
Available in:
Dabur Chyawanprash is available in three sizes to cater to the needs of different
types of people.
1. One kilogram pack
2. 500 gram pack
3. 250 gram pack
Page 83 of 88
PRICE
The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses
second degree price discrimination i.e more the quantity, lower the price.
1kg Rs.195.00
500gms Rs.110.00
250gms Rs.
62.00
PRICE/QUALITY MATRIX
Price→
Quality
↓
High Middle Low
High
Luxury
Segment
Ideal For Penetration
DABUR
CHYAWANPRASH
Premiere
Offering
Middle
Overpriced Average Real
Bargain
Low
Make The
Sale and
Run
Unhappy Customers Cheap
Goods
Page 84 of 88
PLACE
Dabur has a very wide distribution of its products through 1.6 million retail outlets
and 50 C & F agents all over India who distribute products to the retailers. A
distribution of C & F agents and manufacturing locations is given below.
Dabur’s distribution network extends beyond India in the following countries as
well:
Distribution Network
 Central, North & South America
 Australia
 Asia
 Middle East
Page 85 of 88
 North & South Africa
 East & West Europe
PROMOTION
The main form of promotional activities of Dabur chyawanprash are concentrated
towards advertising and it has neglible sales promotional activities.
Advertising
Nothing can happen without establishing the brand’s heritage emphasizing
technological prowess, explaining benefits and building bonds with prospective
buyers. Ads are necessary becausethe images are still mouldable and fluid and
the consumer’s sophistication level is low. Dabur chyawanprash is advertised
on print media as well as on television.
The company has launched two ads, one each with Amitabh and Vivek, in
national electronic media followed by a series of print media campaign directed
towards creating awareness to educate people about the holistic benefits of
Chyawanprash.The ads have been created by McCann Ericsson and the company
would be spending close to Rs 10 crore in promotional campaign this year. The ads
would also be translated in Bengali. These advertisements are supposedto target
the old and the younger generation respectively
Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian
cricket team
Page 86 of 88
11.
CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing.
Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul,
Ghrit and several
other herbs and herbal extracts. the market. The consumer’s patriotic love for tea
and coffee is unfared. Chyawanprash are yet to establish their supplement use in
the average household here in lies the great opportunities. Within the market, it is
safe to conclude that dabur has hit off ratherwell with the masses. dabur has
clearly lost it head start advantage and thereby acquiring just 35% of the market
share while others enjoys rest of the market share. This could be well attributed to
dabor successful ATA (Availability, Taste and Affordability) marketing module,
the attributes most rated by the consumers. Lack of publicity has hampered the
growth progress of the brand so aggressive advertising is needed to promote
Chyawanprash and vatika hair oil brand .The brands such as that of
Chyawanprash by vednath, Chyawanprash with its ‘sonacahndi, ‘Minute-
made’ and also US food giantssDel Monte are ready to hit the Chyawanprash
market very soon.
As the strategies of the companies keeps on changing, be it in Chyawanprash
industry, a company has to create perceptions and cover them into realities. It is
an expensive proposition requiring huge expenditure on advertising, sponsorships
and media. Thus, the ideal company will be the one which combines the high end
technology with consumer insight.
As 16% of the excise duty is exempted on food products in this budget , Many
food companies including Dabur got benefited from it . On the analysis of survey it
Page 87 of 88
was found that target Market of Chyawanprash want quality benefit rather then
Price benefit, so it is better to stress on quality rather than on decreasing price to
increase sales and profit. To increase market share Dabur should give slight price
benefit on Dabur brand so that customers of other Juice brand should switch from
other brand to Dabur brand .
Page 88 of 88
12.
BIBLIOGRAPHY
Books:
Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller
Websites:
www.businessdictionary.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com

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Naveen final report (1)

  • 1. Page 1 of 88 ‘‘Market Expansion Strategy of Dabur with Special Reference to Dabur Chyawanprash ’’ DISSERTATION 2013 Submitted for the partial fulfillment of the requirement for the award Of POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY NAVEEN KUMAR Roll No. 12021 UNDER THE GUIDENCE OF Mr. RajeevGupta DEPARTMENT OF MANAGEMENT INSTITUTE OF MANAGEMENT EDUCATION SAHIBABAD
  • 2. Page 2 of 88 CERTIFICATE This is to certify that the Dissertation titled ‘‘Market Expansion Strategy of Dabur with Special Reference to Dabur Chyawanprash” submitted by Mr. NAVEEN KUMAR, student of PGDM (2012-14) in INSTITUTE OF MANAGEMENT EDUCATION, Ghaziabad for the partial fulfillment of the requirement of the POST GRADUATE DIPLOMA IN MANAGEMENT, embodies the bonafide work done by him under my supervision. Mr. Rajeev Gupta
  • 3. Page 3 of 88 ACKNOWLEDGEMENT Project work is never the accomplishment of an individual. Rather, it is an amalgamation of the efforts, ideas and co-operation of a number of entities. The compilation and presentation of this opuscule has bestowed me with an opportunity to show my gratitude to those subservient to it. I am highly indebted to my guide Mr. Rajeev Gupta, who has been the hallmark of this effort. Their guidelines made me comprehend the enigmatical portion of the subject and were the sole animating force that coerced me to meliorate my efforts without the support and guidance the project report would not have taken shape.
  • 4. Page 4 of 88 CONTENTS 1. Acknowledgement 2. Executive Summary 3. Overview Of Fmcg Sector In India 4. About Dabur  ProductLine  Swot Analysis Of Dabur  The Marketing Mix And selling Process 5. The Marketing Mix 6. Objective Of The Study 7. Research Methodology 8. Data Analysis 9. Recommendations 10. Competitor Analysis 11. Conclusions 12. Bibliography
  • 5. Page 5 of 88 PREFACE Management training has gained rapid importance only recently. Management was previously considered as an inborn art or talent. But in today’s fast developing word this view has been abandoned. To develop managerial capabilities and to supplement their theoretical knowledge with practical experience, the management students are required to go training in business organization. This study would not only help me as a management student to gain a deep insight of how an organization works but also practical usage of all management techniques that I have learnt during the course of my study. This project would also help me analyze the difference between the organizational realities and the theories that have been taught in my academic session and also gave me a real experience of the corporate world let me better understand how it function. It also taught me how to take every experience in the right and learn from each one. Finally the analysis feasible to be put to test in real life situations. I shall consider all my hard work worthwhile if this endeavor of mine is able to satisfy all those concerned and proves useful to anyone or for any further study in the future. NAVEENKUMAR
  • 6. Page 6 of 88 EXECUTIVE SUMMARY This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Chyawanprash. Pioneering role that it has played in the evolution of the categories it has had a presence in. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the conceptof branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyze the marketing mix of Dabur Chyawanprash. The report also enlists various recommendations based on BCG Growth Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles.
  • 7. Page 7 of 88 OVERVIEW OF FMCG SECTOR IN INDIA The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in
  • 8. Page 8 of 88 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. Rural and urban potential Rural-urban profile Urban Rural Population 2001-02 (mn household) 53 135 Population 2009-10 (mn household) 69 153 % Distribution (2001-02) 28 72
  • 9. Page 9 of 88 Source: Statistical Outline of India (2010-11), NCAER An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. Thelarge share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets Market (Towns/Villages) 3,768 627,000 Universe of Outlets (mn) 1 3.3
  • 10. Page 10 of 88 ABOUT DABUR COMPANY OVERVIEW Over its 120 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s
  • 11. Page 11 of 88 a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.
  • 12. Page 12 of 88 DABUR AT-A GLANCE Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our Policies and initiatives speak for themselves.  Leading consumer goods company in India with a turnover of Rs.2233.72 Crore (FY07)  2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer Health Division (CHD)  3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.  13 ultra-modern manufacturing units spread around the globe  Products marketed in over 50 countries  Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India 
  • 13. Page 13 of 88 DABUR HISTORY 1884 Birth of Dabur 1896 Setting up a manufacturing plant Early 1900 Ayurvedic medicines 1919 Establishment of research laboratories 1920 Expands further 1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd. 1972 Shift to Delhi 1979 Sahibabad factory / Dabur Research Foundation 1986 Public Limited Company 1992 Joint venture with Agrolimen of Spain 1993 Cancer treatment 1994 Public issues 1995 Joint Ventures 1996 3 separate divisions 1997 Foods Division / Project STARS 1998 Professionals to manage the Company 2000 Turnover of Rs.1,000 crores 2003 Dabur demerges Pharma Business
  • 14. Page 14 of 88 2005 Dabur aquires Balsara 2005 Dabur announces Bonus after 12 years 2006 Dabur crosses $2 Bin market Cap, adopts US GAAP 2006 Approves FCCB/GDR/ADR up to $200 million 2007 Celebrating 10 years of Real 2007 Foray into organised retail 2007 Dabur Foods Merged With Dabur India
  • 15. Page 15 of 88 FOUNDER AND LEADERS Founding Thoughts "What is that life worth which cannot bring comfort to others" The doorstep ‘daktar’ The story of Dabur began with a small, but visionary Endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague. Soon the news of his medicines traveled, and he came to be known as the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability. The mission continues...
  • 16. Page 16 of 88 VISION "Dedicatedto the health and well being of every household" This is our company. We acceptpersonal responsibility, and accountability to meet business needs. We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most. People are our most important asset. We add value through result driven training, and we encourage & reward excellence. We have superior understanding of consumer needs and develop products to fulfill them better.
  • 17. Page 17 of 88 We work together on the principle of mutual trust & transparency in a boundary- less organization. We are intellectually honest in advocating proposals, including recognizing risks. Continuous innovation in products & processesis the basis of our success. We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.
  • 18. Page 18 of 88 MILESTONE Milestones to success Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularizing and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow. 1884 - Establishedby Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s -Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is the first Company to provide health care through scientificallytested and automated production of formulations based on our traditional science. 1930 - Automation and up gradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 - Personalcare through Ayurveda Dabur introduces Indian consumers to personalcare through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the productthat it becomes
  • 19. Page 19 of 88 the largest selling hair oil brand in India. 1949 - Launched Dabur Chyawanprashin tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprashis launched in packaged form, and becomes the first branded Chyawanprash in India. 1957 - Computerization of operations initiated 1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowderis made available at affordable costs to the masses. 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur ResearchFoundationsetup 1979 - Commercialproduction starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun
  • 20. Page 20 of 88 The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncologysegment 1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancerdrug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source 1996 - Enters foods business with the launch of RealFruit Juice 1996 - Realblitzkrieg Dabur captures the imagination of young Indian consumers with the launch of RealFruit Juices - a new conceptin the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastestgrowing and largestselling brand in the country. 1998 - Burman family hands over managementof the company to professionals 2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000crores. Acrossa span of over 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporatebusinesses.
  • 21. Page 21 of 88 2001 - Super specialtydrugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specializedarea of cancertherapy. The state-of- the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for productionof drugs specifically for European and American markets. 2002 - Dabur record sales ofRs 1163.19crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialties, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business. Maintaining global standards As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Science fornature Reinforcing its commitment to nature and its conservation, Dabur Nepal, a
  • 22. Page 22 of 88 subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. 2005 - Dabur acquires Balsara As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in an Rs 143-crore all-cash deal. 2005 - Dabur announces bonus after 12 years Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore. 2006 - Dabur crosses$2 bin market cap, adopts US GAAP. Dabur India crosses the $2-billion mark in market capitalization. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance. 2006 - Approves FCCB/GDR/ADR up to $200 million Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other securities. The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad.
  • 23. Page 23 of 88 2007 - Celebrating 10 years of Real Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits. 2007 - Forayinto organisedretail Dabur India announced its foray into the organised retail business through a wholly-owned subsidiary; H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. 2007 - Dabur Foods MergedWith Dabur India Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space.
  • 24. Page 24 of 88 BOARD OF DIRECTOR Dabur has an illustrious Board of Directors who is committed to take the company onto newer levels of human Endeavour in the service of mankind. The Board comprises of: Chairman Vice- Chairman Dr. Anand Burman Mr. Amit Burman Whole Time Directors Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman
  • 25. Page 25 of 88 Non Whole Time Promoters, Directors Mr. Mohit Burman Independent Directors His Highness Maharaja Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan
  • 26. Page 26 of 88 Spanning a career of over 20 years, Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer needs. Sunil Duggal Chief Executive Officer Dabur India Limited Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organisation he joined in 1995. Mr. Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his Engineering Degree (Electrical & Electronics) from BITS, Pilani, and Business Management from IIM, Calcutta. His stint at Wimco continued till 1994, with a break in between when he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foodsas GM, Sales Operation. In 1995 he came into the Dabur family, as General Manager (Sales & Marketing), of the Family Products Division with products like Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. Vatika was also launched during this period and is now the Company's second biggest brand. With his dynamic spirit and leadership abilities, he soonbecame Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Dug gal was appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he became the CEO of the Company - a professional with valuable experience to steer the company ahead in its growth plans.
  • 27. Page 27 of 88 Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official responsibilities, Mr. Duggal likes to spend time at home with his family and an occasional round of golf.
  • 28. Page 28 of 88 CORPORATE GOVERNANCE Good corporategovernance and transparency in actions of the management is key to a strong bond of trust with the Company’s stakeholders. Dabur understands the importance of good governance and has constantly avoided an arbitrary decision- making process.Our initiatives towards this end include:  Professionalization of the board  Lean and active Board(reduced from 16 to 10 members)  Less number of promoters on the Board  More professionals and independent Directors for better management  Governed through Board committees for Audit, Remuneration, Shareholder Grievances, Compensation and Nominations  Meets all CorporateGovernance Coderequirements of SEBI
  • 29. Page 29 of 88 CORPORATE CITIZENSHIP When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw beyond the profit motive. In his words, "What is that life worth which cannot bring comfort to others?" This ideal of a humane and equitable society led to initiatives taken to give back some part of what Dabur has gained from the community. Our major initiatives in the Social sector include:  Establishment of the Sustainable Development Society, or Sundesh, in 1993 - a non-profit organisation to promote research and welfare activities in rural areas;  Promoting health and hygiene amongst the underprivileged through the Chunni Lal Medical Trust; and  Organizing the Plant for Life programme for schoolchildren- to create environmental awareness amongst young minds. Our commitment to Environment Ancient wisdom of conservation From times immemorial, Indian sages and men of wisdom have understood and appreciated the value of nature and its conservation. Our ancestors recognized that if we grabbed from nature beyond what was healthy, it would lead to all round degradation, and even the extinction of humanity. That is why nature was
  • 30. Page 30 of 88 sanctified and worshipped in the form of gods and goddesses. Dabur upholds the tradition Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of Dabur would never have been fulfilled. And that is the reason for our unfailing commitment to ecological conservation and regeneration. We would like to follow the principles of our ancient texts, which say: "Dehi me dadami te" - "you give me, and I give you". Back to Nature Rare herbs and medicinal plants are our most valuable resource, from which all our products are derived. Due to overexploitation of these resources and unsustainable practices, these plants and herbs are fast reaching the point of extinction. In view of this critical situation, Dabur has initiated some significant programmes for ecological regeneration and protection of endangered plant species. Plants for Life We have set up the "Plants for Life" project in the mountainous regions of the Himalayas. Under the project, a high-tech greenhouse facility has been set up for developing saplings of rare and endangered medicinal plants. Fully computer- controlled and monitored, this greenhouse maintains the highly critical environmental parameters required for their survival. We are also developing quality saplings of more than 20 herbs, 8 of them endangered, through micro
  • 31. Page 31 of 88 propagation. In addition, satellite nurseries spread across mountain villages and contract cultivation of medicinal herbs helps in maintaining the ecological balance. These measures have also helped provide local cultivators the scientific knowledge for harvesting herbs and a steady source of income. So that they are not forced to exploit the environment to earn a livelihood. Living a GreenHeritage These are significant steps that can contribute to a better world for coming generations. To whom we would like to bequeath a world not bereft of nature. But full of flowering and fruit bearing trees, animals, birds and humans living in good health and complete harmony.
  • 32. Page 32 of 88 Kaushambi Corporate Office Corporate Office Kaushambi Ghaziabad - 201010 Uttar Pradesh, India Tel: +91 (0120) 3982000 (30 Lines) +91 (0120) 3001000 (30 Lines) RegisteredOffice 8/3, Asaf Ali Road, New Delhi – 110 002 Tel: +91 (011) 23253488
  • 33. Page 33 of 88 DABUR MANUFACTURING FACILITIES IN INDIA
  • 34. Page 34 of 88 DABUR WORLD WIDE Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularising this alternative way of life, marketing its products in more than 50 countries all over the world.
  • 35. Page 35 of 88 Our products World Wide We have spread ourselves wide and deep to be in close touch with our overseas consumers.  Offices and representatives in Europe, America and Africa ;  A special herbal health care and personal care range successfully selling in markets of the Middle East, Far East and several European countries.  Inroads into European and American markets that have good potential due to resurgence of the back-to-nature movement.  Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to Europe, Latin America, Africa, and other Asian countries.  Export of food and textile grade natural gums, extracted from traditional plant sources. Partnerships and Production  Strategic partnerships with leading multinational food and health care companies to introduce innovations in products and services.  Manufacturing facilities spread across 3 overseas locations to optimize production by utilizing local resources and the most modern technology available.
  • 36. Page 36 of 88 PRODUCT LINE Foods  Real  Real Activ  Hommade  Lemoneez  Capsico Health Care Baby Care  Dabur Lal Tail  Dabur Baby Olive Oil  Dabur Janma Ghunti Health Supplements  Dabur Chyawanprash  Dabur Glucose D Digestives  Hajmola Yumstick  Hajmola Mast Masala  Anardana  Hajmola  Hajmola Candy  Hajmola Candy Fun2  Pudin Hara (Liquid and Pearls)  Pudin Hara G  Dabur Hingoli
  • 37. Page 37 of 88 Natural Cures  Shilajit Gold  Nature Care  Sat Isabgol  Shilajit  Ring Ring  Itch Care  Backaid  Shankha Pushpi  Dabur Balm  Sarbyna Strong Personal Care Hair Care Oil  Amla Hair Oil  Amla Lite Hair Oil  Vatika Hair Oil  Anmol Sarson Amla
  • 38. Page 38 of 88 Hair Care Shampoo  Anmol Silky Black Shampoo  Vatika Henna Conditioning Shampoo  Vatika Antidandruff Shampoo  Anmol Natural Shine Shampoo Oral Care  Dabur Red Gel  Dabur Red Toothpaste  Babool Toothpaste  Dabur Lal Dant Manjan  Dabur Binaca Toothbrush Skin Care  Gulabari  Vatika Fairness Face Pack Ayurvedic Specialties  Ayurveda  Ayurveda Vikas
  • 39. Page 39 of 88 ACCOLADES 2009-10 Dabur Amongst Top Three Most Respected FMCG Companies Dabur Real Bags Gold In Reader's Digest Trusted Brand Awards Dabur Figures In Top Great Place To Work 2006 List
  • 40. Page 40 of 88 ACCOLADE 2008-09 Dabur has been ranked amongst India's Most Innovative Companies by a Business Today- Monitor Group survey Hajmola has been ranked 34th in India’s 100 Most Valuable Brands list Hajmola, one of the strongest brands in Dabur's portfolio, has been listed among the Top 18 Iconic Brands in India that have stood the test of time Dabur India’s fruit Three Dabur brands -- Hajmola moves up 11
  • 41. Page 41 of 88 juice brand Réal awarded the Reader’s Digest Gold Trusted Brand Award 2008 in the food & beverages category Hajmola, Dabur Amla and Vatika -- have debuted in the Economic Times Brand Equity's Most Trusted Brands 2008 list. Besides, Dabur Foods has climbed up to take the 40th spot spots to take the 34th position among India's Top 100 Most Valuable Brands of 2008, released by 4Ps and ICMR Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable (Company) Brands by Brand Finance newu was voted the Most Admired New Retail Launch of the Dabur India CEO Mr. Sunil Duggal was named Best Corporate Dabur India Ltd was ranked the Business Leader in the FMCG -
  • 42. Page 42 of 88 year at Images Retail Awards Leader of 2008 at the B&E Leadership and Excellence Awards Personal Care Category at the NDTV Profit Business Leadership Award 2008 Dabur India Ltd CEO Mr. Sunil Duggal has been ranked among India's Most 'value'able CEOs by Business World Dabur India Ltd has been listed among the Super 100 of India Inc, prepared by Business India
  • 43. Page 43 of 88 5. SWOT ANALYSIS OF DABUR STRENGTHS  Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialities)  Core knowledge of Ayurveda as competitive advantage  Strong Brand Image  ProductDevelopment Strength  Strong Distribution Network  Extensive Supply Chain  IT Initiatives  R & D – a key strength WEAKNESS  Seasonal Demand( like chyawanprash in winter and Vatika not in winter)  Low Penetration(Chyawanprash)  High price(Vatika)  Limited differentiation (Vatika)  Unbranded players account for the 2/3rd of the total market(Vatika)
  • 44. Page 44 of 88 OPPORTUNITIES  Untapped Market(Chyawanprash)  Market Development   Export opportunities.  Innovation  Increasing income level of the middle class  Creating additional consumption pattern THREATS  Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo Karpin, HLL and Bajaj for Vatika Hair Oil)  New Entrants  Threat from substitutes (like Bryllcream for Vatika hair oil)
  • 45. Page 45 of 88 The Marketing Mix Product Place Target Market Price Promotion The firm attempts to generate a positive responsein the target market by blending these four marketing mix variables in an optimal manner.
  • 46. Page 46 of 88 A. Summary Table of the Marketing Mix The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps. Summary of Marketing Mix Decisions Product Price Place Promotion Functionality Appearance Quality Packaging Brand Warranty Service/Suppor t List price Discounts Allowances Financing Leasing options Channel members Channel motivation Market coverage Locations Logistics Service levels Advertising Personal selling Public relations Message Media Budget
  • 47. Page 47 of 88 DABUR FOODS SELLING PROCESS  Dabur food process ofselling starts from stockiest.  C&FA dosenot have any process to play in the process ofselling of dabur foods products. They are just Clearing & Forwarding Agents they store the manufacturing products and then supply it to stockiest.  Stockiest pay the money to dabur foods through demand draft.  Stockiest further sells the products to retailers.  Retailer finally sells the products to consumers. MARKETING HOW DABUR FOODS IS USING MIX Product Appearance: Dabur tries to make its products appear very attractive. Quality: Quality of the productis really unmatchable as it is tested number of times and its products are processedusing very advanced machinery and technology. Packaging:Dabur products packaging is done in such a way that its juices does not get expired before 6 months inspite of perishable products. Brand: Dabur itself is a very reputed and well known brand in the market and its Real juice is also known all over India.
  • 48. Page 48 of 88 Warranty: Dabur as such does not gives any warranty but if there is any problem in its products beforeexpiry then they replace the product. Service/Support: Dabur foods provide full supportto its stockiest, retailers and consumers, what so ever the problem is Price List price: Dabur decide its price according to its competitors and the price structure is different for retailers and stockiest. Discounts: There are different discounts for retailers, stockiest and consumer from time to time. Allowances:Special allowances are given to stockiest sales man if he actives his targets. Place Channel members: Channel members or business partners of dabur are its stockiest, retailers. Channel motivation: Channel motivation for dabur is pull and push strategy. Marketcoverage:Dabur Foodshas a distribution network that covers 175 towns and 75 thousand retail outlets making its productavailable to the consumers across the country at ease.
  • 49. Page 49 of 88 Locations: Dabur foods try to cover or try to place its products in each and every shop and every location. Promotion Advertising: Dabur products are advertised through television, newspapers, magazine etc. Personalselling: Dabur hardly do any personal selling except in tent shows and road shows. Same for less & more for same Media: Media of promotion is TV, Radio, newspapers, magazine. Budget: Budget is decided by finance team for different strategic business unit. Critique of selling In theory, the purposeof selling is to help a customer realize his or her goals in an economic fashion. However, in reality this is not always the case. Customers can be influenced to purchase a productor service that initially was not of interest to them. Some salespeople are trained in the art of selling customers things they don't need. Take for example the purchasing of a car: a consumer may have a set of cars in mind (called an evoked set) that she feels match her needs, wants and budget. She may seek the advice of a salesperson given that a salesperson can help her realize the right car given those criteria. This can be a socially useful function; salespeople
  • 50. Page 50 of 88 have specialized knowledge of products that can help consumers make an informed decision. However, a salesperson may also talk a consumer into purchasing a more expensive or perhaps larger car then she needs or can afford. In this context, the salesperson may have usefully helped the customer re-evaluate her needs, thereby establishing a new set of appropriate choices among which included the newer or large car. This again would be a helpful and useful service provided by the salesperson. However, it is sometimes the case that customers purchase a product or service that was not initially intended and remains an inappropriate purchase after the fact. On the other hand, the consumer in this scenario can be held partially responsible for the inappropriate purchase; indeed, "A fool and his money are soon parted." (P.T. Barnum, English proverbs) This dysfunctional behavior is encouragedby: Incentives of salespeople to increase their total number of sales, especially where retailers keep track of sales or offer commission-based salaries  Incentives from the manufacturer of products or the companies of service providers to salespeople to sell their products where other similar products offered by competitors are offered  The incentive to sell a customer a productthat is in need of being cleared out, despite the fact that a customer may be better to wait for the new product
  • 51. Page 51 of 88 B. Channel Of Distributions Manufacturing Plant Clearing and forwarding agent (different regions) Stockist A Stockist B Stockist C Retailers Retailers Retailers Retailers Retailers Retailers
  • 52. Page 52 of 88 CONSUMERS The above diagram it shows channel of distribution of dabur foods, here first the products are manufactured and from Manufacturing plants the packed goods are supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the goods to them, this work is generally done by stockiest salesman through ready stockor by taking orders first and then placing the order. From here the goods finally reaches to Customers. Customer purchases the productfrom retailers. This was the basic Channel of Distribution used by Dabur Foods, now I will throw light on each channel of distribution of Dabur Foods. Supply Chain Management: Supply chain management starts before physical distribution: it involves procuring the right inputs (raw materials, components and capital equipment), converting them into finished products and dispatching them to the final destinations. The supply chain perspective can help identify superior suppliers and distributors and help them improve productivity, which ultimately brings down the company’s costs. A broader view sees a company at the center of a value network that includes its suppliers, its immediate customers and their end customers. The value network includes valued relations with others such as university researchers, government approval agencies and so on.
  • 53. Page 53 of 88 MANUFACTURING PLANT: Dabur Foods has Number of products in its productline but its main area of interest or the producton which they concentrate the most is Real Juice & Coolers. Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured and tested. PROCUREMENT & TRANSPORT:  Getting the raw material and packaging material requirement from the production unit in charge  Constant updates on the procurement of materials and transport details  Production details and ingredient content information from the different personnel and coordinating this activity PACKAGING:  Approval and coordination of the supply of packaging material to the production unit CLEARING AND FORWARDING AGENTA (C&FA)  From manufacturing plant the stock is transported or supplied to clearing and forwarding agents.  Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so company has nothing to do in building the relationship with them.  Here C&FA keep or stock the goods with them.  They charge dabur for stocking the good and even dabur don’t mind doing so as it is a measure of cost cutting as well as there is no need for gowdowns and maintenance.  For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in Mohan Nagar, here all goods which dabur foods hare kept here.
  • 54. Page 54 of 88 C. STOCKIEST OR DISTRIBUTORS  Stockiest store the products in their godowns, C&FAsupplies the goods to them as per their order.  Stockiest has some sales men working under him, they are known as stockiest sales man. Their work is to place the products in the market and take order from retailers and then supply goods to them.  Sales man either takes ready stockwith them or they first take orders and then supply goods later on.  There is a beat which is a schedule route of sales man, means sales man has to daily cover the route as mention in the beat.  Merchandising, making products visible, pasting posters, putting banners, and seeing that goods are properly placed in the retail outlets is also the duty of stockiest sales man.  Companies’ sales officer keeps a check on the stockiest and monthly report is also prepared which is further analyzed by ASM & ZSM.  In Noida Dabur has 1 stockist, and in Ghaziabad 1
  • 55. Page 55 of 88 D. RETAILERS  Retailers are backboneof the company as they are the one who can take the producton new heights or can bring it down to toes.  Stockiest supplies goods to retailers and tries Persuading retailers to give the brand special displays (using merchandising tools) to get affective brand presence, and arranging it in more noticeable manner.  Classification of outlets in different type of markets is different according to their sales volume. TYPES OF RETAILS OUTLETS Class Average Monthly Business A Above 10,000 B 5,000-10,000 C Upto 5,000  Margin of retailers is always higher than stockiest.  Retailers are the one who have direct contactwith the customers.  Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail outlets making its productavailable to the consumers across the country at ease. E.
  • 56. Page 56 of 88 TYPES OF RETAIL MARKET The retail market can be classified on the basis of magnitude of retail.  SCATTERED MARKET Lesser no. of outlets, and Extensive outlets  BLOCK MARKET Large no. of retail outlets in chunk  SUPER MARKET Through their superior information, logistical systems and buying power deliver good service and immense volumes of products at attractive prices.  CHAIN OUTLETS Having more than one key outlet all across with a single controlunit and central purchasing strategy
  • 57. Page 57 of 88 7. THE FUTURE FOR DABUR Tapping the world markets: Dabur India, under its new brand architecture, has five power brands under its portfolio with distinct offerings — Vatika, a herbal beauty brand with products like Vatika Shampoo, Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with products like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and has products like Real Fruit juices, Lemoneez; and the recently launched Anmol which is a cross category value-for-money brand. Dabur has decided to take two of its five power brands — Dabur and Vatika — global through its Dubai-based arm Dabur India. And the Big B and Rani Mukherjee will help the company get a toehold in the world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore FMCG major has also decided to give a new impetus to its international food supplement brand, Nature4u, by now launching it in the burgeoning Gulf market. It is currently being sold only in UK and EU. “We have drawn an aggressive plan to launch Dabur and Vatika globally, starting from the Middle East , GCC and SAARC countries. We expect our market share to double within two years in the 10 countries we will focus on initially,’’ said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and Nigeria. To develop Dabur International as its major overseas hub to service all markets except Russia , the company is setting up a new plant which is expected to be ready in a year. Dabur International already has a plant in Jabel Ali to both
  • 58. Page 58 of 88 package products sourced from India and produce some local variants. Dabur India has been selling its product in Dubai and GCC countries since 1992 through a franchise — Redrock Limited. The company had acquired this franchise last year at investments of about USD five million. Growing market share: While there is no doubt that Dabur now has a presence in several product categories ranging from hair care to oral care to home care to health supplements to juices and even soaps, it is also true that in some of these segments its market share is very low and trails the market leader by a huge margin. For instance, Dabur only has a 6% market share in shampoos against HLL’s 53%, and a 12% share in the oral care segment against Colgate’s 46%. Company officials believe that low market share means that there are substantial growth opportunities even if these categories do not grow. “Our market shares are low in some segments. This gives us opportunity to penetrate these categories,’’ says Mr Narang. Drivers of growth: For the future, Dabur has identified foods, home care products, skin care and OTC health care products as its growth engines. The company plans to ramp up its home care business and in the food category it is looking at expanding its Hommade range of cooking pastes and purees. In the skin care segment, the company launched the Dabur Anmol cold cream last year and its Vatika honey and saffron soap is currently under test launch. Expansion in south India: Dabur is looking at expanding its business in south India, which currently accounts for around 15% of its total sales.
  • 59. Page 59 of 88 Objectives of the Study:-  To understand the demand pattern of Dabur Chyawanprash products in the market.  To know the amount of household income spent on the consumption of FMCG products ofDabur.  To understand the image of the products in the eyes of the consumers.  To analysis market petition strategy of Dabur for rural market.
  • 60. Page 60 of 88 Research Methodology Primary Data : It has been collected with the help of retailers of Dabur in north Delhi. . Secondary data: It has been collected with the help of books, research papers, magazines, news papers, journals, internet, etc. Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS Software. 8 DATA ANALYSIS DABUR CHYAWANPRASH 1. AWARNESS LEVEL 0 10 20 30 40 50 60 70 80 90 100 ZANDU HIMANI BAIDYANATH DABUR PERCENTAGE
  • 61. Page 61 of 88 2. PREFERRED BRAND 3.SATISFACTION LEVEL 4. REASONS FOR SELECTING APARTICULAR BRAND 0 10 20 30 40 50 60 ZANDU HIMANI BAIDYANATH DABUR PERCENTAGE 0 1 2 3 4 5 ZANDU HIMANI BAIDYANATH DABUR RATING(1-LOW 5- HIGH)
  • 62. Page 62 of 88 5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND. 6. UNAVAILABILITY OF PREFERRED BRAND 0 10 20 30 40 50 60 70 HEALTH BRAND LOYALTY TASTE PRICE PERCENTAGE 0 10 20 30 40 50 60 70 80 TV INTERNET WOM PRINT PERCENTAGE
  • 63. Page 63 of 88 7. PREFERRED PACKSIZE 8. REASON TO SELECT PREFERREDPACK SIZE 0 5 10 15 20 25 30 35 40 PURCHASE ANOTHER BRAND WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER PERCENTAGE 0 10 20 30 40 50 1 Kg 500 gm 250 gm PERCENTAGE
  • 64. Page 64 of 88 9. FREQUENCYOF PURCHARE 10. 0 5 10 15 20 25 30 35 40 AVAILABILITY PRICE FAMILY SIZE STORAGE PERCENTAGE 0 10 20 30 40 50 60 ON E MONTH TWO MONTHS SIX MONTHS PERCENTAGE
  • 65. Page 65 of 88 NO 29% YES 71% ARE YOU SATISFIED WITH YOUR BRAND
  • 66. Page 66 of 88 11. importa nt 50% not so ium portant 11% must have 39% offer running importa nt 43% not so ium portant 25% must have 32% price negotiation
  • 67. Page 67 of 88 import ant 41% not so ium portant 21% must have 38% price discount import ant 45% not so ium portant 13% must have 42% product knowlodge
  • 68. Page 68 of 88 RETAILER SURVEY RESULTS DABUR CHYAWANPRASH 1. Which brands of Chyawanprashdo you stock? 2. Out of these which are the most preferred? 0 20 40 60 80 100 ZANDU HIMANI BAIDYANATH DABUR PERCENT… 0 20 40 60 80 ZANDU HIMANI BAIDYANATH DABUR RATING(1-LOW 5- HIGH)
  • 69. Page 69 of 88 3. According to you what are the reasons forcustomers’preferences? 4. What is the profile of your typical consumer? 5. What schemes are you offered by the companies? 0 10 20 30 40 50 60 brand loyalty price availability no reason PERCENTAGE 0 10 20 30 40 50 60 70 high income middle income low income PERCENTAG E
  • 70. Page 70 of 88 6.Whatschemes does a consumer prefer most? 7. According to you, does in-store advertising have an affect on the consumers’ preference? 0 10 20 30 40 50 60 price discount buy one get one others PERCENTAGE 0 10 20 30 40 50 60 70 price discount buy one get one others PERCENTAGE
  • 71. Page 71 of 88 8. Do a change in price affect their preferences? 0 10 20 30 40 50 60 70 yes no PERCENTAGE 0 10 20 30 40 50 60 yes no PERCENTAGE
  • 72. Page 72 of 88 7 80 13 In how manydays you receive the productafter placing the order monthly 7 one week two weeks 23
  • 73. Page 73 of 88 RECOMMENDATIONS  Focus on growing core brands across categories.  Reaching out to new geographies, within Hapur area.  Improve operationalefficiencies byleveraging technology.  Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.  Provide consumers with innovative products within easyreach.  Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. It could have hair care experts to solve hair problems.Services could include dandruff treatment, straightening of hair, treatment for split ends,etc.  Position Dabur Chyawanprash as not more of a medicine but as something which is necessary for health.  More initiatives like “ Dabur ki Deewar”to increase brand visibility. It is an initiative to occupyshelf space. COMPETITOR ANALYSIS
  • 74. Page 74 of 88 The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Himani, which together with Dabur have about 85% of India's domestic market. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%. We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently
  • 75. Page 75 of 88 expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo.Its Chyawanprash has a market share of 10%. Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). The Himani Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.Its market share is 12%. B. STP ANALYSIS OF DABUR CHYAWANPRASH
  • 76. Page 76 of 88 SEGMENTATION Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient. For ever-busy housewives:The 'homemaker' needs to be fit in order to shoulder all responsibilities. For the aged:Old age weakens a personphysically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy.
  • 77. Page 77 of 88 TARGETING Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids .This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads compliment each other and connect very well with the targeted consumers
  • 78. Page 78 of 88 POSITIONING "Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By using a natural language instead of scientific language it is able to connect with the consumers and is able to achieve a better positioning in the minds of the Indian health conscious consumer. A category like Chyawanprash for instance needs to understand that in employing the category language it loses any chance of expressing its own benefit distinctively. Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti- oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveys this health conscious holistic view of the product. Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection, processing and quality control of right herbs along with scientific and clinical studies – makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a trusted brand and therefore do not need to think twice before making a purchasing decision.
  • 79. Page 79 of 88 C. MARKETING MIX OF DABUR CHYAWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as followed:
  • 80. Page 80 of 88  Product  Price  Place  Promotion Product Price Promotion Place • Product Variety • Quality • Design • Features • Brand Names • Services • List Price • Discount • Financing Schemes • Credit Terms • Advertising & Promotion • Public Relations • Sponsorships • Internet Marketing • Channels • Location • Inventory
  • 81. Page 81 of 88 D. PRODUCT Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users. Ingredients of Dabur Chyawanprash  Vishwast Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts.  Special Vishwast fortified with additional health beneficial herbs like Keshar, Akarkara etc.
  • 82. Page 82 of 88 Packaging: n The figure above shows the evolution of the packaging of Dabur Chyawanprash. Dabur continuously innovates the package and branding of its chayawanprash. It launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded Chyawanprash in India. Later Dabur came out with its new packet of Chyawanprash with Amitabh Bachchan as their brand ambassador. It also received “Brand Relaunch of the Year “award from IMA. Available in: Dabur Chyawanprash is available in three sizes to cater to the needs of different types of people. 1. One kilogram pack 2. 500 gram pack 3. 250 gram pack
  • 83. Page 83 of 88 PRICE The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses second degree price discrimination i.e more the quantity, lower the price. 1kg Rs.195.00 500gms Rs.110.00 250gms Rs. 62.00 PRICE/QUALITY MATRIX Price→ Quality ↓ High Middle Low High Luxury Segment Ideal For Penetration DABUR CHYAWANPRASH Premiere Offering Middle Overpriced Average Real Bargain Low Make The Sale and Run Unhappy Customers Cheap Goods
  • 84. Page 84 of 88 PLACE Dabur has a very wide distribution of its products through 1.6 million retail outlets and 50 C & F agents all over India who distribute products to the retailers. A distribution of C & F agents and manufacturing locations is given below. Dabur’s distribution network extends beyond India in the following countries as well: Distribution Network  Central, North & South America  Australia  Asia  Middle East
  • 85. Page 85 of 88  North & South Africa  East & West Europe PROMOTION The main form of promotional activities of Dabur chyawanprash are concentrated towards advertising and it has neglible sales promotional activities. Advertising Nothing can happen without establishing the brand’s heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary becausethe images are still mouldable and fluid and the consumer’s sophistication level is low. Dabur chyawanprash is advertised on print media as well as on television. The company has launched two ads, one each with Amitabh and Vivek, in national electronic media followed by a series of print media campaign directed towards creating awareness to educate people about the holistic benefits of Chyawanprash.The ads have been created by McCann Ericsson and the company would be spending close to Rs 10 crore in promotional campaign this year. The ads would also be translated in Bengali. These advertisements are supposedto target the old and the younger generation respectively Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian cricket team
  • 86. Page 86 of 88 11. CONCLUSIONS The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts. the market. The consumer’s patriotic love for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use in the average household here in lies the great opportunities. Within the market, it is safe to conclude that dabur has hit off ratherwell with the masses. dabur has clearly lost it head start advantage and thereby acquiring just 35% of the market share while others enjoys rest of the market share. This could be well attributed to dabor successful ATA (Availability, Taste and Affordability) marketing module, the attributes most rated by the consumers. Lack of publicity has hampered the growth progress of the brand so aggressive advertising is needed to promote Chyawanprash and vatika hair oil brand .The brands such as that of Chyawanprash by vednath, Chyawanprash with its ‘sonacahndi, ‘Minute- made’ and also US food giantssDel Monte are ready to hit the Chyawanprash market very soon. As the strategies of the companies keeps on changing, be it in Chyawanprash industry, a company has to create perceptions and cover them into realities. It is an expensive proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget , Many food companies including Dabur got benefited from it . On the analysis of survey it
  • 87. Page 87 of 88 was found that target Market of Chyawanprash want quality benefit rather then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand .
  • 88. Page 88 of 88 12. BIBLIOGRAPHY Books: Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller Websites: www.businessdictionary.com www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com