Embed Size (px)
Citation preview
‘‘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 BYNAVEEN KUMAR
Roll No. 12021
UNDER THE GUIDENCE OF
Mr. Rajeev Gupta
DEPARTMENT OF MANAGEMENT
INSTITUTE OF MANAGEMENT EDUCATION
SAHIBABAD
Page 1 of 83
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
Page 2 of 83
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.
Page 3 of 83
CONTENTS
1. Acknowledgement
2. Executive Summary
3. Overview Of Fmcg Sector In India
4. About Dabur
Product Line
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
Page 4 of 83
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.
NAVEEN KUMAR
Page 5 of 83
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 concept of 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.
Page 6 of 83
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
Page 7 of 83
rural households is 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
Page 8 of 83
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
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. The large 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
Page 9 of 83
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
Page 10 of 83
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.
Page 11 of 83
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
DABUR HISTORY
Page 12 of 83
1884 Birth of Dabur
1896 Setting up a manufacturing plant
Early
1900Ayurvedic medicines
1919Establishment of research
laboratories
1920 Expands further
1936Dabur India (Dr. S.K. Burman) Pvt.
Ltd.
1972 Shift to Delhi
1979Sahibabad factory / Dabur Research
Foundation
1986 Public Limited Company
1992Joint venture with Agrolimen of
Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998Professionals to manage the
Company
2000 Turnover of Rs.1,000 crores
2003 Dabur demerges Pharma Business
2005 Dabur aquires Balsara
2005 Dabur announces Bonus after 12
Page 13 of 83
years
2006Dabur crosses $2 Bin market Cap,
adopts US GAAP
2006Approves FCCB/GDR/ADR up to
$200 million
2007 Celebrating 10 years of Real
2007 Foray into organised retail
2007Dabur Foods Merged With Dabur
India
FOUNDER AND LEADERS
Founding Thoughts
Page 14 of 83
"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.
VISION
Page 15 of 83
The mission continues...
"Dedicated to the health and well being of every household"
This is our company. We accept personal 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.
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.
Page 16 of 83
Continuous innovation in products & processes is 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.
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,
Page 17 of 83
setting the road for others to follow.
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
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
Page 18 of 83
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 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
Page 19 of 83
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.
2002 - Dabur record sales of Rs 1163.19 crore 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
Page 20 of 83
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 for nature
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a
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
Page 21 of 83
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.
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 - Foray into organised retail
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 Merged With 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.
Page 22 of 83
Page 23 of 83
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:
Chairma
n
Vice-
Chairma
n
Dr. Anand
Burman
Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip
Burman
Non Whole Time Promoters, Directors
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 Foods as 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 soon became 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.
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
Page 24 of 83
regional diversities and consumer needs.
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.
Page 25 of 83
CORPORATE GOVERNANCE
Good corporate governance 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 Corporate Governance Code requirements of SEBI
Page 26 of 83
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
Page 27 of 83
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
Page 28 of 83
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 Green Heritage
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.
Page 29 of 83
DABUR
MANUFACTURING FACILITIES IN INDIA
Page 30 of 83
Kaushambi Corporate
Office
Corporate Office
Kaushambi
Ghaziabad - 201010
Uttar Pradesh, India
Tel:
+91 (0120) 3982000 (30
Lines)
+91 (0120) 3001000 (30
Lines)
Registered Office
8/3, Asaf Ali Road,
New Delhi – 110 002
Tel: +91 (011) 23253488
Page 31 of 83
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.
Page 32 of 83
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.
Page 33 of 83
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
Page 34 of 83
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
Hair Care Shampoo
Page 35 of 83
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
Page 36 of 83
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
Page 37 of 83
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 juice
brand Réal awarded the
Reader’s Digest Gold
Trusted Brand Award
2008 in the food &
Three Dabur brands --
Hajmola, Dabur Amla
and Vatika -- have
debuted in the
Economic Times Brand
Hajmola moves up 11
spots to take the 34th
position among India's
Top 100 Most
Valuable Brands of
5. SWOT ANALYSIS OF DABURSTRENGTHS
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)
OPPORTUNITIES
Untapped Market(Chyawanprash)
Market Development
Export opportunities.
THREATS
Existing Competition( like
Himani, baidyanath and Zandu
for Dabur Chyawanprash and
Marico,Keo Karpin, HLL and
Page 38 of 83
Innovation
Increasing income level of the
middle class
Creating additional consumption
pattern
Bajaj for Vatika Hair Oil)
New Entrants
Threat from substitutes (like
Bryllcream for Vatika hair oil)
Page 39 of 83
The Marketing Mix
Product
Place
Target
Market
Price
Promotion
The firm attempts to generate a positive response in the target market by blending
these four marketing mix variables in an optimal manner.
Page 40 of 83
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/
Support
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
DABUR FOODS SELLING PROCESS
Page 41 of 83
Dabur food process of selling starts from stockiest.
C&FA dose not have any process to play in the process of selling 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 product is really unmatchable as it is tested number of
times and its products are processed using 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.
Warranty: Dabur as such does not gives any warranty but if there is any problem
in its products before expiry then they replace the product.
Page 42 of 83
Service/Support: Dabur foods provide full support to 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.
Market coverage: Dabur Foods has a distribution network that covers 175 towns
and 75 thousand retail outlets making its product available to the consumers across
the country at ease.
Locations: Dabur foods try to cover or try to place its products in each and every
shop and every location.
Page 43 of 83
Promotion
Advertising: Dabur products are advertised through television, newspapers,
magazine etc.
Personal selling: 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 purpose of 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 product or 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
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
Page 44 of 83
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 encouraged by:
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 product that is in need of being cleared
out, despite the fact that a customer may be better to wait for the new
product
Page 45 of 83
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 46 of 83
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 stock or by taking orders first and then placing
the order. From here the goods finally reaches to Customers. Customer purchases
the product from 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 47 of 83
MANUFACTURING PLANT:
Dabur Foods has Number of products in its product line but its main area of
interest or the product on 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 48 of 83
C.
STOCKIEST OR DISTRIBUTORS
Stockiest store the products in their godowns, C&FA supplies 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 stock with 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 49 of 83
D.
RETAILERS
Retailers are backbone of the company as they are the one who can take the
product on 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 contact with the customers.
Dabur Foods has a distribution network that covers 175 towns and 75
thousand retail outlets making its product available to the consumers across
the country at ease.
E.
TYPES OF RETAIL MARKET
Page 50 of 83
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 control unit and central
purchasing strategy
7.
Page 51 of 83
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
package products sourced from India and produce some local variants. Dabur India
Page 52 of 83
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 53 of 83
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 of Dabur.
To understand the image of the products in the eyes of the consumers.
To analysis market petition strategy of Dabur for rural market.
Research Methodology
Page 54 of 83
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
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
70
80
90
100
PERCENTAGE
Page 55 of 83
2. PREFERRED BRAND
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
PER-CENTAGE
3.SATISFACTION LEVEL
ZANDU HIMANI BAIDYANATH DABUR0
0.5
11.5
2
2.5
3
3.54
4.55
RATING(1-LOW 5-HIGH)
4. REASONS FOR SELECTING A PARTICULAR BRAND
Page 56 of 83
HEALTH BRAND LOYALTY
TASTE PRICE0
10
20
30
40
50
60
70
PERCENTAGE
5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
TV INTERNET WOM PRINT0
10
20
30
40
50
60
70
80
PERCENTAGE
6. UNAVAILABILITY OF PREFERRED BRAND
Page 57 of 83
PURCHASE ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER
0
5
10
15
20
25
30
35
40
PERCENTAGE
7. PREFERRED PACK SIZE
1 Kg 500 gm 250 gm0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
8. REASON TO SELECT PREFERRED PACK SIZE
Page 58 of 83
AVAILABILITY PRICE FAMILY SIZE STORAGE0
5
10
15
20
25
30
35
40
PERCENTAGE
9. FREQUENCY OF PURCHARE
ONE MONTH TWO MONTHS SIX MONTHS0
10
20
30
40
50
60
PERCENTAGE
10.
Page 59 of 83
Page 60 of 83
NO 29%
YES71%
ARE YOU SATISFIED WITH YOUR BRAND
11.
important50%
not so ium portant11%
must have39%
offer running
important43%
not so ium por-tant25%
must have32%
price negotiation
Page 61 of 83
important41%
not so ium portant21%
must have38%
price discount
important45%
not so ium portant13%
must have42%
product knowlodge
Page 62 of 83
RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1. Which brands of Chyawanprash do you stock?
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
70
80
90
100
PER-CENTAGE
2. Out of these which are the most preferred?
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
70
80
RATING(1-LOW 5-HIGH)
Page 63 of 83
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?
high income middle income low income0
10
20
30
40
50
60
70
PERCENTAGE
5. What schemes are you offered by the companies?
Page 64 of 83
price discount buy one get one others0
10
20
30
40
50
60
PER-CENTAGE
6.What schemes does a consumer prefer most?
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?
Page 65 of 83
yes no0
10
20
30
40
50
60
70
PERCENTAGE
8. Do a change in price affect their preferences?
yes no0
10
20
30
40
50
60
PERCENTAGE
Page 66 of 83
7
80
13
In how many days you receive the product after placing the order
monthly 7one weektwo weeks 23
Page 67 of 83
RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within Hapur area.
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.
More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an
initiative to occupy shelf space.
Page 68 of 83
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:
Page 69 of 83
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).
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%.
Page 70 of 83
B.
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.
Page 71 of 83
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 72 of 83
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 73 of 83
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 74 of 83
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 75 of 83
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 76 of 83
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 77 of 83
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
→
Qualit
y
↓
High Middle Low
High
Luxury
Segment
Ideal For
Penetration
DABUR
CHYAWANPRA
SH
Premier
e
Offerin
g
Middl
e
Overprice
d
Average Real
Bargain
Low Make Unhappy Cheap
Page 78 of 83
The Sale
and Run
Customers Goods
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
Page 79 of 83
Australia
Asia
Middle East
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 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
Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian
cricket team
Page 80 of 83
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 81 of 83
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 82 of 83
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
Page 83 of 83
