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UNDER THE SUPERVISION OF:
Dr. DAVIENDER NARANG Prof. K.K BHATIA
DIRECTOR (MBA) DEAN( MBA)
SUBMITTED BY:
CHANDRA KANT
MBA- IV SEM
Roll No. 0911670030
(Batch 2009-2011)
Jaipuria Institute of Management
14 C, Vasundhara
Ghaziabad, (U.P.)
1
14–C, VASUNDHARA, GHAZIABAD
CERTIFICATE
This is to certify that the research project report title “The Marketing Strategy of
Dabur Product” is a bonafied work carried out by, Mr. Chandra Kant, in partial
fulfillment of requirement for the award of the degree of Master’s of Business
Administration from U. P. Technical University, Lucknow under the guidance and
direction of Dr. Neelu Tiwari
Dr. Neelu Tiwari Prof. K.K BHATIA
Faculty (MBA) DEAN (MBA)
2
ACKNOWLEDGEMENT
It is with the feeling of satiated and sense of zenith that I draft this
acknowledgement note. I wish to express my gratitude to those who have generously
helped me to compile the Dissertation and stand up high, to the expectation of the
institute.
I would like to express sincere gratitude to Dr Neelu Tiwari and Dr K. K.Bhatia
my faculty member’s guidance for his considerable advice, time and substantial
encouragement throughout the course of this dissertation.
Last but not the least; I would like to thank my friends for their diligent
endeavor and earnest desire to lead me towards my path of perfection.
CHANDRA KANT
MBA- IV (SEM)
3
CONTENTS
Sub Topics Page No.
1. Introduction to the company 5-6
2. Company Profile 7-9
3. Company History 10
4. Product Line 11-14
5. Overview Of FMCG Sector in india 15-21
6. Research Methodology 22-31
7. Analysis of data collection 32-36
8. STP of the company 37-62
9. Finding 63-92
10.Conclusion 93-96
11.Limitation 97-102
12.Recommendation 103-104
13.Annexure 105-106
14. Bibliography 107-114
4
5
Introduction to the Topic
The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started
a health care products manufacturing facility in a small Calcutta pharmacy. In
1896, as a result of growing popularity of Dabur products, Dr. Burman set up a
manufacturing plant for mass production of formulations. In early 1900s, Dabur
entered the specialized area of nature based Ayurvedic medicines. In 1919,
Dabur established research laboratories to develop scientific processes and
quality checks. In 1936, Dabur became a full-fledged company with the name
Dabur India (Dr. S.K. Burman) Pvt Ltd. Dabur shifted its operations to Delhi in
1972. Dabur became a Public Limited Company in 1986 and Dabur India
Limited came into existence after reverse merger with Vidogum Limited. In
1992, Dabur entered into a joint venture with Agrolimen of Spain to
manufacture and market confectionary items in India. In 1994, Dabur raised its
first IPO. In 1998, day to day running of the company was handed over to
professionals. In 2000, Dabur achieved a turnover of Rs 1000 crores. In 2005,
Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in 2006. Some
of the well-known brands of Dabur are: Amla Chyawanprash, Hajmola, Lal
Dantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur
Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika.
6
7
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
8
brands do). There’s 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.
9
COMPANY PROFILE
10
COMPANY HISTORY
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.
1884 - Established by 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
scientifically tested 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 - Personal care through Ayurveda
11
Dabur introduces Indian consumers to personal care through Ayurveda,
with the launch of Dabur Amla Hair Oil. So popular is the product that it
becomes the largest selling hair oil brand in India.
1949 - Launched Dabur Chyawanprash in tin pack
Widening the popularity and usage of traditional Ayurvedic products
continues. The ancient restorative Chyawanprash is 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 toothpowder is 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 Research Foundation set up
1979 - Commercial production 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
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
12
is converted to a confectionary item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncology segment
1994 - Leadership in health care
Dabur establishes its leadership in health care as one of only two companies
worldwide to launch the anti-cancer drug 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 Real Fruit Juice
1996 - Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of
Real Fruit Juices - a new concept in the Indian foods market. The first local
brand of 100% pure natural fruit juices made to international standards, Real
becomes the fastest growing and largest selling brand in the country.
1998 - Burman family hands over management of the company to
professionals
2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs.1,
000 crores. Across a 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 corporate businesses.
2001 - Super specialty drugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company
gains entry into the highly specialized area of cancer therapy. The state-of-
the-art plant and laboratory in the UK have approval from the MCA of UK.
They follow FDA guidelines for production of drugs specifically for European
and American markets.
13
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4
crore
PRODUCT LINE
14
Foods
Real
Real Activ
Hommade
Lemoneez
Capsico
Health Care
Baby Care
Dabur Lal Tail
Dabur Baby Olive Oil
Dabur Janma Ghunti
Health Supplements
15
Dabur Chyawanprash
Dabur Glucose D
Hajmola Yumstick
Hajmola Mast Masala
Anardana
Hajmola
Hajmola Candy
Hajmola Candy Fun 2
Pudin Hara (Liquid and Pearls)
Pudin Hara G
Dabur Hingoli
Natural Cures
16
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
Hair Care Shampoo
Anmol Silky Black Shampoo
17
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
18
Vatika Fairness Face Pack
Ayurvedic Specialities
Ayurveda
Ayurveda Vikas
FINANCIAL REPORT
19
INCOME 2007 2006 2005 2004 2003 2002
Sales Turnover 1778.02
1369.68 1268.72 1147.98
1232.3 1163.19
Excise Duty 36.93 26.89 42.49 65.4 73.37 60.61
Net Sales 1741.09
1342.79 1226.23 1082.58
1158.93 1102.58
Other income 19.31 22.34 11.97 11.73 9.61 16.74
Stock Adjustments
22.19 -4.24 7.96 -25.78 -3.58 16.85
Total Income 1782.59
1360.89 1246.16 1068.53
1164.96 1136.17
EXPENDITURE
Raw Materials 558.4 428.7 447.19 405.32 452.7 466.87
Power & Fuel Cost
30.59 26.28 21.69 17.12 19.84 18.31
Employee Cost 109.77 91.23 74.99 70.3 89.47 77.46
Other Manufacturing
Expenses 255.13 153.35 111.91 80.46 74.73 74.23
Selling and Adm Exp
460.52 365.33 368.11 329.47 360.09 350.03
Miscellaneous Expenses
55.17 56.36 35.5 29.09 32.15 26.13
Total Expenditure
1469.58
1121.25 1059.39 931.76 1028.98 1013.03
Operating Profit 313.01 239.64 186.77 136.77 135.98 123.14
Interest 6.81 5.73 4.66 7.58 18.4 26.64
20
Gross Profit 306.2 233.91 182.11 129.19 117.58 96.5
Depreciation 21.98 19.05 17.1 15.75 22.04 20.99
Profit Before Tax
284.22 214.86 165.01 113.44 95.54 75.51
Tax 31.52 18.08 13 8.75 7.62 4.92
Fringe Benefit tax
3.28 3.7 0 0 0 0
Deferred Tax -2.66 4 4 3.49 3 5.56
Reported Net Profit
252.08 189.08 148.01 101.2 84.92 65.03
Extraordinary Items
8.29 1.94 3.61 2.6 0.58 2.98
Adjusted Net Profit
243.79 187.14 144.4 98.6 84.34 62.05
21
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 characterised by a well-established distribution network, intense
competition between the organised and unorganised 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
22
purchasing power and has a strong middle class base of 300 million.Around
70 per cent of the total households in India (188 million) resides in the rural
areas. The total number of rural households are expected to rise from 135
million in 2001-02 to 153 million in 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
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
Source: Statistical Outline of India (2001-02), NCAER
An average Indian spends around 40 per cent of his income on grocery and 8
per cent on personal care products. The large share of fast moving consumer
23
goods (FMCG) in total individual spending along with the large population base
is another factor that makes India one of the largest FMCG markets.
24
Rapid urbanisation, increased literacy and rising per capita income, have all
caused rapid growth and change in demand patterns, leading to an explosion
of new opportunities. Around 45 per cent of the population in India is below 20
years of age and the young population is set to rise further. Aspiration levels in
this age group have been fuelled by greater media exposure, unleashing a
latent demand with more money and a new mindset.
25
26
OVERVIEW OF THE HAIR OIL SEGMENT
In the last quarter of the previous century Indian women have imbibed global
mores, ethics, fashions and styles in a remarkable way. Yet the popular
iconography of Indian beauty still associates them with beautiful fair skin and
dark, long lustrous hair – a commonly accepted definition of beauty in Indian
society.
Across the country, mothers spend endless hours teaching their daughters
what their mothers had taught them about maintenance of their natural
beauty – taken primarily as caring for the skin and hair. In the hair care
regime, of the numerous prescriptions none is more universally accepted
than the oiling of hair for nourishment and use of home-made concoctions of
henna and shikakai paste for conditioning them.
It would come as a surprise to only a few that hair oils have a penetration of
almost 98% (Source: IRS 2003). Of the branded market, hair oils form a
major chunk accounting for Rs. 13 billion with coconut hair oils as the prime
segment at Rs. 9.1 billion. (Source: ACNielsen ORG-MARG 2003).
27
OVERVIEW OF VATIKA
The Vatika brand was launched in 1995 with Vatika
Hair Oil as its first product. In the very first year of its launch it crossed Rs.
100 million in turnover. Over the years, Vatika has come to be amongst the
company’s highest selling brands.
It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and
later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales
crossed Rs. 1,000 million. From the company’s perspective, Vatika is
expected to continue to drive its growth in the years to come. With its
innovative offerings, the brand aims to become a frontrunner in the market
for hair care and skin care products.
Vatika is a comparatively young brand but is already acknowledged for the
qualitatively influential and pioneering role that it has played in the evolution
of the categories it has had a presence in. Currently, the total annual sales
of Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys
a 6.4% market share in the coconut hair oil category (Source: ACNielsen
ORG-MARG, 2003).
Vatika has not just been successful in garnering a premium image but,
today, stands as the preferred and trusted brand of 11.1 million users
(Source: IRS Household Data).
28
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.
29
PACKAGING
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
30
31
Research Methodology
Research Plan
Data source : Primary data and secondary data
Research approach : Observation & Survey
Research instrument : Questionnaire for consumers, retailers &
dealers
Sampling Plan : Sampling unit Sample size 100, Sampling
procedure random
Contact method : Personal
Field work plan : Survey place & time
Research & common platform, refer to a knowledge. Another definition of
research & a careful investigation or enquiry specially through search for new
fact in any brand of knowledge.
Before embarking upon the research plan the research objective were
specified. The clarity of the objective was helpful in carrying forth the project
plan with core & with encumbrance.
32
Methodology used in survey
Data collection : A structure from which is primary. In this sources of
information was used in this research was designed in order to find out the
various record information & also to fulfill the objectives of the project.
All form filled by myself taking a part of on English. Some question were framed
in the forms in directly so as to gather the information which …. Would have
been asked directly might have offered the retailers so that this had to be frame
indirectly.
Sample Selection : Area of study: I choose the routes to know the market
conditions of the DABUR that what are the real position of DABUR in the
market. The choosen route are given below
h Design
Methodology Adopted
As the purpose of the project report is to analyse the consumable products
successfully launched in the last three years.
The data was collected both with the help of primary as well as secondary
sources.
33
For primary data, I proceeded with the drafting of the questionnaire for
consumers was structured as undisguised, & Personal -interview retailers.
Distributors & wholesalers and it was handed personally by me to the
respondents to be analysed.
The questionnaire method was used-
a) To get first and relevant and unbiased information
b) Questionnaire provides versatility and solutions can be obtained by just
asking the questions.
c) Questioning is usually faster and cheaper.
d) Moreover, there is more control over data gathering activities.
Secondary data was also collected personally by me, which the company has
furnished for the general public. The secondary data was gathered with the
help of various magazines, newspapers, journals, brochures and also through
the internet. For secondary sources no field work was employed.
In order to amplify the empirical findings from primary and secondary sources,
a survey was conducted both of consumers and retailers Distributor &
Wholesalers in order to gauge the market opinion.
The questionnaire was of multiple choice and the pattern of questions was as
simple as possible. With every question, multiple choices were given and
34
respondents were asked to select one of them. The questionnaire technique
was structured and not disguised as the questions followed one pattern and
reason behind the questionnaire was stated properly. All the questions were
directly related to the subject.
For Dabor Chyawanprash and Vatika hair oil.
1) Sample size for customers were 150 in number and the universe
comprised of all the consumers within the geographical region of Delhi.
2) Sample size for retailers were 40 in number and the universe comprised
of all the consumers within the geographical region or Delhi.
3) Sample size for Distributor & Wholesaler were four in number & the
universe comprised of all the consumers within the geographical region
of Delhi.
35
36
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
Product Development 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)
37
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)
38
STP ANALYSIS OF VATIKA HAIR OIL
SEGMENTATION
Vatika Hair Oil was launched at an almost 100% premium to the market
leader. This meant that the segment of the market that dabur wanted to
cater to was the premium segment which valued nourishment of the hair
above the price and it tried to attend to that segment which was not price
sensitive.
TARGETING
This was in line with its proposition and overall brand strategy of a premium
up-market product targeted for individual needs as opposed to the
collectivist culture of the category. It targeted the high income urban
category of hair oil users. Since the product was expensive it could mainly
cater to the urban market as opposed to the rural market where consumers
are highly price sensitive. Being positioned as having amla, henna and
lemon extracts, the product was targeted towards the young, contemporary,
educated, multi-faceted, achievement-driven and confident women who
were positioned as the Vatika Woman.
POSITIONING
39
‘Total hair Care’ brand’
The product innovation was fed by the vital consumer insight that many
women in contemporary India are worried about hair problems caused by
urban pollution, frequent change of diet due to geographical mobility and
other factors. Beset by modern-day hair problems, they are far more
inclined to rely on home-grown remedies. By offering hair oil that
combined the benefits of natural products in a single pack, Vatika created
a niche for itself as the ‘total hair care’ brand.
“Natural” offering
Vatika is a brand that espouses traditional wisdom about health in a
modern format. It believes that nature has perennial answers to day-to-
day health issues, particularly when it comes to hair care and skin care. In
a world where modern living causes untold stress the Vatika brand holds
out the promise of providing natural ingredients that rejuvenate and
safeguard the human body in an extraordinary way. This concept is put to
work through contemporary, modern products, offered by Vatika.
The Vatika woman
40
The Vatika woman is young, contemporary, educated, multi-faceted,
achievement-driven and confident. It is in the Vatika brand that she sees
a true reflection of her own personal ideals.Through creation of the
concept of Vatika woman,it has tried to carve out a new positioning in the
minds of the new age woman.
MARKETING MIX OF VATIKA HAIR OIL
41
Vatika Hair Oil has made a huge impact 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
Vatika Hair Oil. The mix shall be analyzed as followed:
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
PRODUCT
42
Brand Name: Vatika in Hindi means ‘garden’. The
brand attempts to live up to the promises – beauty
and nature – that are associated with its very name.
Starting with these associations Vatika has
assiduously built a brand that delivers on all these
values through its various product offerings, the
mother brand being Vatika Hair Oil..
Innovative product offering:. Vatika Hair Oil is coconut hair oil with
special ingredients adding value to the product. While coconut oil has
been regularly used by Indian women as a basic hair nutrient, a
combination of herbs and natural products such as henna, amla and
lemon have been used for special hair needs.
Coconut hair oil provides nourishment to the hair, while henna along
with other herbs coat the hair and protect it from oxidation, thereby
maintaining its natural colour. Amla strengthens hair roots and helps
maintain their natural health and thickness. Lemon with its astringent
action controls sebum flow and helps in prevention of dandruff.
Apart from henna, amla and lemon, it also contains other natural
ingredients like brahmi, neem, bahera, kapur, kachari, harar, dugdha
and sugandhit dravyas.
43
Packaging: The qualities of Vatika products, ascribed to the brand by
hundreds of thousands of satisfied consumers, have been further
underlined by its attractive packaging. In a category dominated by blue
packs as analogous of pure coconut oils, Vatika broke the norm with its
white and green bottle with a mushroom cap.The green-and-white
colours, used in its packaging, reflect the brands’ natural ancestry and
give it a premium look. These also help Vatika stand out in the cluttered
environment of Indian retail.
Available in
Bottles 75 ml, 150 ml, 300 ml
Flip cans 150 ml, 300 ml
Flip cans were introduced for the winter season.
Quality Vatika products contain natural ingredients that have been blended
together through scientific processes at Dabur’s in-house research laboratories.
Dabur Research Foundation has more than 100 scientists working together to
make superior quality products that match international standards.
44
PRICE
In the traditional coconut hair oil category, which presumably had price
sensitive consumers, Vatika Hair Oil with its value added proposition –
henna, amla and lemon in a pure coconut oil – broke this myth when it
launched at almost a 100% premium to the market leader; even with
such a pricing strategy it was able to garner a significant share from the
leader in the very first year of its launch.
The table above shows that Dabur Vatika is one of the highest priced of
hair oils since it targets the higher income class and also that the prices
have remain unchanged since 1999.
45
PRICE/QUALITY MATRIX
Price→
Quality
↓
High Middle Low
High
Luxury
Segment
VATIKA
Ideal For
Penetration
Premiere
Offering
Middle
Overpriced Average Real
Bargain
Low
Make The
Sale and
Run
Unhappy
Customers
Cheap
Goods
46
PLACE
Vatika products including Vatika Hair Oil are sold in 38 countries through
more than 15 lakh retail outlets and 5,000 distributors who service the entire
country through a wide marketing network.
Dabur’s distribution network extends beyond India in the following countries as
well:
47
Distribution Network
Central, North & South America
Australia
Asia
Middle East
North & South Africa
East & West Europe
48
PROMOTION
Vatika – the key focus brand of the company – has always been well
supported. The company realised early that, from the perspective of
brand building, it was vital to invest in this brand.
.
Vatika Hair Oil’s first promotion: It focussed on the key benefit –
beautiful hair without hair problems – that came about as a result of
the extra nourishment through the value addition of henna, amla and
lemon-derived additives.
49
Creating conceptual awareness: In the initial phase of the
communication, the marketing objective was to create conceptual
awareness about the new product – the goodness of coconut oil
enriched with natural herbs. Vatika was firmly established as the
leader in the new category of value-added hair oils and its promotion
campaign was so successful that the product segment itself came to
be identified with Vatika.
In 1997, the company created a new promotion campaign which
reinforced the obvious fact that most coconut oil brands were not
equipped to combat the effects of pollution, hard water and chemicals
– the major causes of hair ailments and hair deterioration.
50
ADVERTISING
“Advertising is some form of paid-for method of communicating with the
target audience to inform, educate, reinforce or persuade, leading to
mutually satisfactory exchange”
Nothing can happen without establishing the brand’s heritage
emphasizing technological prowess, explaining benefits and building
bonds with prospective buyers. Ads are necessary because the images
are still mouldable and fluid and the consumer’s sophistication level is
low.
Vatika Hair Oil uses a number of advertising media like television, print,
internet, outdoor media which includes hoardings.
Events: In a series of other promotional activities, Vatika has been
associated with shows and sponsored events such as the Vatika Super
Model India 2001 and Vatika Zee Sangeet Awards. It has also had a
strong association, since its inception, with Mover’s and Shakers’ – the
popular TV show.
51
Celebrity Endorsements: The
idea of using an extraordinary hair oil
that offered extra nourishment was
communicated through campaigns featuring
icons such as Mandira Bedi, Shefali Chhaya
and Sudha Chandran– all modern,
young women perceived to have that
extra edge in their personality.A number of commercials over the years
have featured personalities like Aditi Govitrikar, Preeti Jhangiani and
Shweta Jaishankar.To infuse the values of youthfulness and natural beauty,
Rani Mukherjee is the current brand ambassador
52
CUSTOMER SURVEY RESULTS
DABUR VATIKA
AWARNESS LEVEL
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
5
10
15
20
25
30
35
40
PERCENTAGE
PREFERRED BRAND
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
5
10
15
20
25
30
35
40
PERCENTAGE
53
SATISFACTION LEVEL
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
0.5
1
1.5
2
2.5
3
3.5
4
RATING(1-LOW 5-HIGH)
REASON TO BUY THE PREFFERED BRAND
NON STICKY BRAND LOYALTY
FRAGRANCE PRICE0
5
10
15
20
25
30
35
40
45
PERCENTAGE
54
HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
TV INTERNET WOM PRINT0
10
20
30
40
50
60
70
80
PERCENTAGE
UNAVAILABILITY OF PREFERRED BRAND
PURCHASE ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER
0
5
10
15
20
25
30
35
40
45
PERCENTAGE
55
PREFERRED PACK SIZE
75ml 150 ml 300 ml0
10
20
30
40
50
60
PERCENTAGE
REASON TO SELECT PREFERRED PACK SIZE
AVAILABILITY PRICE FAMILY SIZE STORAGE0
5
10
15
20
25
30
35
40
PERCENTAGE
FREQUENCY OF PURCHASE
56
15 DAYS ONE MONTH TWO MONTHS0
10
20
30
40
50
60
70
PERCENTAGE
57
RETAIL SURVEY RESULTS
DABUR VATIKA
1) Which brands of Hair Oil do you stock?
marico hll karrpikeo karpin vatika
0
10
20
30
40
50
60
70
80
PERCENTAGE
2) .Out of these which are the most preferred?
marico hll karrpikeo karpin vatika
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
58
3) According to you what are the reasons for customers’ preferences?
brand loyalty price availability no reason
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
4) What is the profile of your typical consumer?
high income middle income low income
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
59
5) What schemes are you offered by the companies?
price discount buy one get one others0
5
10
15
20
25
30
35
40
PERCENTAGE
6) What schemes does a consumer prefer most?
price discount buy one get one others0
10
20
30
40
50
60
PERCENTAGE
60
7) According to you, does in-store advertising have an affect on the consumers’ preference?
yes no0
10
20
30
40
50
60
PERCENTAGE
8) Does a change in price affect their preferences
yes no0
10
20
30
40
50
60
PERCENTAGE
61
STP ANALYSIS OF DABUR CHYAWANPRASH
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 person physically and mentally.
After segmenting the population into these categories it aims to keep them fit
and healthy.
62
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
63
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
64
view DCP as a product by a trusted brand and therefore do not need to think
twice before making a purchasing decision.
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:
Product
Price
65
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
66
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.
67
Packaging
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
68
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.175.00
500gms Rs.100.00
250gms Rs.
55.00
69
PRICE/QUALITY MATRIX
Price
→
Quality
↓
High Middle Low
High
Luxury
Segment
Ideal For
Penetration
DABUR
CHYAWANPRAS
H
Premiere
Offering
MiddleOverprice
d
Average Real
Bargain
Low
Make The
Sale and
Run
Unhappy
Customers
Cheap
Goods
70
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:
71
Distribution Network
Central, North & South America
Australia
Asia
Middle East
North & South Africa
East & West Europe
72
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 because the 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
supposed to target the old and the younger generation respectively.
73
Advertisement showing Vivek Oberoi
A little boy suggests his brother To which the brother replies,
to have Dabur Chyawanprash “Mujhe iski kya zaroorat?
everyday.
The boy asserts, “Zaroorat The big brother follows him but
hai!” and starts running. is unable to catch him using every way.
74
Running with super energy the boy ...the big brother also dives in the
dives into the river. Not to be left behind... river but ultimately stops when he
get tired
With no option left he agrees The ad ends on the big brother
with his younger brother, “maan promising to have a spoon of the
gaye guru, tere Dabur chyawanprash everyday. But Our
Chyawanprash ko” younger one insists on two spoons.
75
COMPETITOR ANALYSIS
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:
76
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded
in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has
recently 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).
77
The Emami 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%.
CUSTOMER SURVEY RESULTS
DABUR CHYAWANPRASH
AWARNESS LEVEL
78
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
70
80
90
100
PERCENTAGE
PREFERRED BRAND
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
PER-CENTAGE
SATISFACTION LEVEL
79
ZANDU HIMANI BAIDYANATH DABUR
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
RATING(1-LOW 5-HIGH)
REASONS FOR SELECTING A PARTICULAR BRAND
HEALTH BRAND LOYALTY
TASTE PRICE0
10
20
30
40
50
60
70
PERCENTAGE
HOW DID YOU COME TO KNOW ABOUT THIS BRAND
80
TV INTERNET WOM PRINT0
10
20
30
40
50
60
70
80
PERCENTAGE
UNAVAILABILITY OF PREFERRED BRAND
PURCHASE ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER
0
5
10
15
20
25
30
35
40
PERCENTAGE
PREFERRED PACK SIZE
81
1 Kg 500 gm 250 gm0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
REASON TO SELECT PREFERRED PACK SIZE
AVAILABILITY PRICE FAMILY SIZE STORAGE0
5
10
15
20
25
30
35
40
PERCENTAGE
FREQUENCY OF PURCHARE
82
ONE MONTH TWO MONTHS SIX MONTHS0
10
20
30
40
50
60
PERCENTAGE
RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1) Which brands of Chyawanprash do you stock?
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
70
80
90
100
PER-CENTAGE
83
2) Out of these which are the most preferred?
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
70
80
RATING(1-LOW 5-HIGH)
3) According to you what are the reasons for customers’ preferences?
brand loyalty price availability no reason0
10
20
30
40
50
60
PERCENTAGE
4) What is the profile of your typical consumer?
84
high income middle income low income0
10
20
30
40
50
60
70
PERCENTAGE
5) What schemes are you offered by the companies?
price discount buy one get one others0
10
20
30
40
50
60
PERCENTAGE
6) What schemes does a consumer prefer most?
85
price discount buy one get one others0
10
20
30
40
50
60
70
PERCENTAGE
7) According to you, does in-store advertising have an affect on the consumers’ preference?
yes no0
10
20
30
40
50
60
70
PERCENTAGE
86
8) .Does a change in price affect their preferences?
yes no0
10
20
30
40
50
60
PERCENTAGE
DISTRIBUTION
Supply chain: Dabur has steadily improved its procurement and distribution
systems to achieve a significant reduction in material costs. Dabur has an
extensive supply chain and distribution network that has grown and spans 29
factories, 47 stocking points, 4 zonal offices, a dozen manufacturing
locations, six mother-warehouses and over 50 Carrying and Forwarding
Agents(CFAs) that distribute more than 1,000 SKU’s to several thousand
stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse
displays as-of-yesterday sales, stock, receivables, banking, and other MIS.
87
Over 5,000 ASP pages meet almost all reporting requirements and make this a
single source of MIS for all levels of decision makers.
VSATs: This Success paved the ground for the company's supply chain
initiative. Fifty-five Ku Band TDMA VSATs were used to link primary
distributors to the system. Factories were hooked up using PAMA (Permanent
Assigned Multiple Access) VSATs. At some locations VPNs had to be used
because it was not possible to set up a dish.The integrated primary and
secondary system has a number of unique features. The features like tight
integration of schemes, stockists credit limit control, automated banking of
cheques, and online cheque reconciliation have obvious advantages in the
primary distribution. These are basically extensions to the MFG/PRO ERP
system and not core customizations. The integrated system allows each Area
Manager to plan for the month's sales forecasts, stockists performance, and
sales officers' performance.The integration allows better control on pipelines in
primaries and secondaries, brings down inventories, and offers better control
on production and sales against a confirmed forecast. The idea is to
increasingly shift focus from primaries to secondaries. Schemes based on
secondary volumes will help control secondary pipelines and sales. Primary
sales will therefore come from a resultant 'pull' from secondary replenishments.
Further, sales order servicing can be improved by taking orders through the
Internet, and by setting stocking norms and replenishing stocks to improve ROI
of stock holders.
88
ANSOFF’S PRODUCT MARKET EXPANSION GRID
MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan
and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish
the relevance of Chyawanprash in an increasingly tough and demanding
lifestyle, for the entire family. As a market leader, Dabur’s focus has been to
increase the relevance of this time-tested and proven product in the family -
both for users and non users - and increase penetration. In their new campaign
they have tried to establish the fact that Chyawanprash, with its ‘well - being’
properties, gives an edge to the users and dispel the myth that it should be
consumed in illness or is meant only for Children or the aged.
89
MARKET DEVELOPMENT: Dabur has identified exports as a major thrust
area for the future. An international business division has been set up within the
company to promote exports and it expect this business to grow steadily in the
coming years. The company plans to focus on Russia and CIS countries
along with Afghanistan, West Indies and the Asia Pacific region. It has also
entered the North American markets by appointing distributors and initiating
marketing of products to the ethnic Indian segment. The company has already
been exporting hair oils, shampoos and Hajmola candies to Afghanistan. In
Bangladesh, Dabur is entering into a joint venture with a local partner to
manufacture and market its products. Dabur will hold a majority stake in this
joint venture.
PRODUCT DEVELOPMENT:
Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first
quarter this fiscal, would be investing significantly in the launch of several new
products including Dabur Herbal Toothpaste and Vatika Henna
Conditioning hair packs over the coming months.
The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry
cannot be defined only by the performance of large players. Smaller companies
are now dictating terms and defining the market. DIL will launch new products
backed by adequate research."
90
DIVERSIFICATION: Diversification across product segments and markets is
one of the key factors in favour of Dabur India. In 2001-02, Dabur India had
three major revenue contributors — FMCG products, pharmaceuticals and
ayurvedic specialties, accounting for 76 per cent, 14 per cent and 7 per cent
respectively, of its revenues. Dabur's FMCG product basket includes such
strong brands as Dabur Chyawanprash, Vatika hair products, Hajmola
digestive candy, Pudin Hara, Dabur Lal Dant Manjan and Dabur Lal Tail
massage oil. In pharmaceuticals, Dabur India markets branded as well as bulk
formulations, both in the domestic and export markets; oncologicals is a key
focus area. Dabur's anticancer molecule DRF 7295 is currently in Phase I
clinical trials on humans.
In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has entered the
toilet soap market besides expanding its over-the-counter (OTC) medicine
range with 10 new additions over the next few months. The company has
begun test marketing toilet soaps under the brand name Vatika in West
Bengal. There is a single variant, containing saffron and honey, right now and
Dabur is positioning it on the herbal platform. Manufacturing of the soaps
category is being outsourced at present
Besides diversifying its product portfolio under the Consumer Care Division
(CCD) with a foray into soaps, DIL has also decided to enhance focus on the
Consumer Healthcare Division (CHD) this fiscal. The newly created CHD
division within DIL deals in prescription-based Ayurvedic medicines and over-
91
the-counter (OTC) products. Traditionally a business with low growth
prospects, CHD closed 2004-05 at Rs 107.8 crore.
Some of the existing OTC products of DIL include cough and cold formulation
Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi .
The company plans to launch other products under its own brand name in
Russia and has already launched Dabur Boro Glow.
.
92
93
Findings
THE NEW DABUR ENTITY
The New Dabur Identity modernizes the 100-year old equity of the Dabur brand
by subtly transforming the tree. While it retains the essence of the banyan tree,
it now projects a contemporary image, in consonance with today's lifestyle.
The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food
and protection. On a metaphysical plane, the tree is regarded as sacred,
trustworthy and a symbol of fertility. The new Dabur identity retains these
enduring and valuable attributes, while it adds a fresh, healthy and holistic
dimension to the tree.
The new identity appropriates nature as the wellspring for Dabur. It conveys
Dabur's heritage, commitment and stability through the form and colours of the
tree; its branches and leaves. It also conveys that the brand stands for wellness
across age groups. Taken as a whole, the tree appears well rooted, implying
stability; and its abundant canopy implies that it can provide amply for those
who seek its produce and shade. Further, the entire image, being well-
94
proportioned, evokes a harmonious, well-balanced, wholesome and holistic
brand.
In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is
a heaven for creatures it generously harbours in its foliage, as well as in the
shade of its canopy. The tree is held auspicious as it spreads through the three
spheres with its roots meshing through the earth, its trunk rising through the
terrestrial world and its branches reaching into the heavens. This symbolism
also occurs in cultures across the world.
Keeping these vital associations in mind, the tree in the new Dabur identity has
been carefully created to communicate Dabur's invaluable 100-year old legacy
as well as its future aspirations. It now takes on a younger avatar, in its form
and colours, and strikes a rapport with the consumer as a proactive brand with
a commitment to wellness and to nurturing an active lifestyle across age
groups.
Thus, through its form and colours, the new logo identity combines freshness
and stability. It expresses a brand that is positive, proactive and progressive.
The burst of leaves and their colours symbolize growth, rejuvenation and inner
strength. The form and colour of the trunk convey growth, youthfulness and
stability. Thus, the logo identity lock up presents Dabur as a stable yet evolving, 95
contemporary, vibrant and active brand cherishing nature as the source of all
its endeavours along with an abiding commitment to the wellness of consumers
across age groups
96
97
USEFULNESS AND IMPORTANCE OF STUDY
IMPORTANCE OF THE STUDY
Being student of MBA it is very essential for me to have a practical knowledge
in an organization. Only to study business administration course knowledge is
not the solution of the problems, which arise in practical field. There is a
certain formula for any particular problem, but the aim of this study is to
develop the ability of decision making. A right decision at right time and right
place itself helps an organization to run smoothly.
This study gives an idea of all marketing activities. So the way a problem is
solved right decision making and knowledge of different types of making
activities give much importance to the study. Only in two month training it was
not possible to understand it so deeply, but an overall idea could be developed.
The importance and usefulness of the study is discussed as under
1. To study the impact of Budget Policies on Marketing Strategy of Dabur
Foods.
2. To study the Consumer, Buying behavior.
3. To study the problems faced by Dabur.
98
99
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.
Vatika hair oil has no major competition except an Australian Product Tobasco.
As a new product so people are not able to digest it yet Dabur is getting 8
crores from Vatika hair oil in which accounts for 4 crores, Lemoneez 1 Crore
& others 3 Crores .
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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 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 .
As vatika hair oil is a new product introduced by Dabur and as Dabur is
getting excise benefit from the Government so Dabur should pass slight Price
benefit to the target market so that target market should use the vatika hair oil
and adopt it in making daily food thereby increasing the market share of vatika
hair oil.
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LIMITATION OF THE STUDY
It was quenching time in the shops that use to deal in and some retailers
could not give proper attention towards our queries.
Some retailer did not co-operative with us as they thought; it is just
wastage of time
There was no way to assess the reliability of the retailers. What ever
they said had to be assumed to be truth.
Category wise search for retailer was a terrific job in the market.
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RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within and outside India.
Improve operational efficiencies by leveraging 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 easy reach.
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.
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More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an
initiative to occupy shelf space.
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CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL
Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for hair oil.
Any information provided by you will strictly be used for Academic Purpose.
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1. Which brands of hair oil are you aware of?
Parachute
Keo Karpin
Nihar
Hair And Care
Dabur Vatika
2. Which brand of Hair Oil do you use?
Parachute
Keo Karpin
Nihar
Hair And Care
Dabur Vatika
3. Where would you rate your brand on a scale of 1 – 5 ( 5 being highest)?
1
2
3
4
5
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4. What are the primary reasons for which you use this particular brand?
Non sticky
Brand Loyalty
Fragrance
Price
5. How did you get to hear about this brand?
TV
Internet
Word of Mouth
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6. If your brand is not available you would..?
Purchase another brand
Wait for it to be available
Go for a substitute
Buy what is offered by the retailer
7. Which pack size do you prefer?
75 ml
150 ml
300 ml
8. On what parameters do you choose this pack size?
Availability
Price
Family size
Storage
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9. How often do you buy?
Once in 15 days
Once a month
Once in two months
10.Are you satisfied with your brand?
Yes
No
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REFERENCES
Books:
Kotler Philip, ”Marketing Management”, 11th edition, 2003, Pearson
Education Inc., P. 8-9.
Ramaswamy V S, ”Marketing Management”, 3rd edition, 2002, Macmillan
India Ltd., P. 5-10
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Kothari C. R., “Research Methodology”, 2nd edition, 2002, New Age
International Pvt. Ltd., P. 11, 130.
Robbins Stephen P., “Organizational Behaviour”, 10th edition, 2004,
Pearson Education Inc., P. 425-432.
Company Documents.
Websites
www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com
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