Dab Our New

AN

ASSIGNMENT

ON

MARKETING MIX (4 Ps) OF DABUR INDIA LTD

Prepared By: Roll NO: (1 to 10)

(MBA Full Time SEM. 2)

DIVISION B

SUBMITTED TO

Dr. Renuka Garg

DABUR INDIA LIMITED

INTRODUCTION

Dabur India Limited is India’s fifth largest FMCG Company in India with Revenues of US$600 Million (Rs 2834 crore) & Market Capitalisation of over US$2.2 Billion (Rs 10,000 Crore). Building on a legacy of quality and experience for 125 years, Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods. The first Dabur plant was set up in 1896 and research laboratories established in 1919. Dabur became a public limited company in 1986. In 1998, the Burman family, the original promoters, handed over the day-to-day running of the company to professionals. With effect from 1 April 2005, Balsara Home Products became a subsidiary of Dabur. Apart from Balsara, Dabur has five other subsidiaries — Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma. Dabur ended Q1 2008-09 with a net profit of Rs 70.14 crores. Dabur India Ltd. (DIL), a leading name in the Indian FMCG industry was promoted by S K Burman in 1884. The company was formed by way of amalgamation with Vidogum Limited in Oct.'86. Prior to this, the company was operating under the name Dabur (S K Burman) Pvt Ltd, since 1936.

■Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09)

■3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD)

■3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

■17 ultra-modern manufacturing units spread around the globe

■Products marketed in over 60 countries

■Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods

■9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey

■Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market

■Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.

■Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row

■Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day

■Leader in herbal digestives with 90% market share

Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats

■Has more than 300 products sold through prescriptions as well as over the counter

■Major categories in traditional formulations include:

- Asav Arishtas

- Ras Rasayanas

- Churnas

- Medicated Oils

■Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol

- Madhuvaani

- Trifgol

■Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students

Accolades 2009-10

Dabur Chyawanprash Immune India Campaign bags Gold Award for Best School Contact program

Dabur India listed among Top 5 Indian brands to look out for in 2010, according to MSN

Dabur among India's 50 Best Blue Chip Companies offering best investor returns Dabur India Ltd ranked 19th amongst India's Best Wealth Creators by Dalal Street

Journal Dabur placed 158 in BS-1000 list. In the Super Rank, Dabur placed No 9 Dabur is category winner in FMCG-Personal Care as biggest wealth creator Dabur moves up 12 places to take 79th position in Super 100 list for 2009

Dabur India CEO Sunil Duggal among India's Most 'Value'able CEOs Dabur India Ltd moves up 6 places In ET- 500 List for 2009 Dabur is India's 25th Most Valuable Brand Dabur bags Top Marketer Award for 2009 in Consumer Goods market Dabur ranked as 60th Most Valuable Indian Company in 2009 Uveda, Vatika conditioner ranked True Champions of Style by Elle magazine Dabur ranked 25th in India's 100 Most Valuable Brands Dabur voted by consumers as fourth ‘Most Liked Health Brand in India’ Dabur India Ltd in Forbes India's list of '20 Stocks You Must Own’ Dabur, Amla, Hajmola in Most Trusted Brands 2009 list Réal wins Trusted Brand Gold Award 2009

Business

Dabur’s product range encompasses health care, personal care, ayurvedic specialities and food segments.BrandsWell-known brands include Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care and Pudin Hara.LocationDabur has been marketing its products in more than 50 countries all over the world. The company has offices and representatives in Europe, America and

Africa. Manufacturing facilities are spread across three overseas locations.

Headquarters GhaziabadKey people V. C. BurmanIndustry Health Care, FoodWebsite www.dabur.comProduct1) Health Care 2) Personal Care 3) Food 4) Home Care 5) Consumer Health – OTC

DIMENSION OF PRODUCT MIX

PRODUCT

Dabur has its product width as follows:

A. Health Care.B. Personal Care.C. Foods.D. Home Care.E. Consumer Health .

The product lengths and depths are as:

A. Health Care: Dabur's Health Care range brings for you a wide selection of

Ayurvedic and natural products that offer complete care for varying individual needs. The products are derived from the time-tested heritage of Ayurveda, and backed by the most modern scientific test & trials that ensure unfailing quality and safety. Health Care includes:

1) Health Supplements:1. Chyawanprash

i. Dabur Chyawanprashii. Dabur ChyawanPrakash

iii. Dabur Chyawan Junior (chocolate flavour)2. Dabur Honey3. Dabur Glucose-D

i. Orange Flavour.ii. Lemon Flavour.

2) Oral Care:1. Babool Toothpaste

i. Babool Calciumii. Babool Mint Fresh Gel

2. Promise Toothpaste3. Meswak Toothpaste4. Lal Dant Manjan5. Dabur Red Toothpaste

3) Digestives:1. Hajmola

i. Hajmola- Kacha aam

ii. Hajmola- Imliiii. Hajmolaiv. Hajmola Candyv. Hinggoli

B. Personal Care: Dabur presents a range of Herbal & Ayurvedic Personal Care

products, created to make one look and feel good. Bringing together the gentle touch of nature and Ayurveda's wisdom, the range covers categories like Hair Care, Skin Care and Baby Care, and is backed by the unfailing quality stamp of Dabur.

1) Hair Care:1. Hair Oil

i. Amla Hair Oilii. Amla Flower Magic

iii. Vatika Coconut Oil2. Baby Care Range

i. Dabur Lal Tailii. Dabur Janma Ghunti

iii. Dabur Gripe Water3. Shampoos

i. Vatika (smooth & silky)ii. Vatika (root strengthening)

iii. Vatika (black shine)iv. Vatika (dandruff Control)v. Dabur Total Protect Shampoo.

4. Conditioneri. Vatika (root strengthening)

ii. Vatika (smooth & silky)2) Skin Care:

1. Rose Wateri. Dabur Gulabari Premium

ii. Dabur Gulabari Rose Fresh2. Uveda

i. Complete Fairness Creamii. Moisturising Face Wash

iii. Clarifying Face Washiv. 2-in-1 Moisturiser

C. Food Products: 1) Juices

1. Real Nature Freshi. Real- Litchi

ii. Real- Guavaiii. Real- Mangoiv. Real- Apple

v. Real- Blackcurrentvi. Real- Peach

vii. Real- Orangeviii. Real- Mausambi

ix. Real- Pineapplex. Real- Mixed Fruit

xi. Real- Grapexii. Real- Cranberry

xiii. Real- Tomatoxiv. Real- Pomegranate

2. Activi. Orange juice

ii. Apple juiceiii. Orange Carrot juiceiv. Mixed Fruit Beetroot carrot

3. Burrsti. Mixed Fruit

ii. Orange Byteziii. Crispy Appleiv. Mango Mania

4. Lemoneez

2) Hommade1. Garlic Paste2. Tamarind Paste3. Ginger Garlic Paste4. Coconut Milk5. Tomato Puree

3) Capsico Red-pepper Sauce.

D. Home-Care Products: Dabur India Ltd has a portfolio of superior products that

help take care of your home. The range of Home Care products have been carefully developed to ensure that your living space not only looks good, but also smells good, all day long. And more importantly, they help keep your family healthy

1. Dazzil- Floor Cleaner2. Odomos3. Odomod Naturals4. Odonil5. Odonil Nature6. Odopic- With Lime (utensil cleaner)7. Sani-Fresh Shine

E. Dabur Consumer Health- OTC: Dabur, with its roots in Ayurveda, has been involved in

bringing this age-old science within everyone’s reach. Dabur's Consumer Healthcare business is the Company's oldest business, and today has a growing portfolio of OTC products to address a variety of problems ranging from Women's Health to Baby Care and Cough & Cold to Rejuvenation.

1) Gastro-Intestinal ( Pudin Hara)2) Memory Enhancer ( Shankha Pushpi)3) Cough & Cold ( Honitus)4) Medicated Oils ( Dabur Badam Oil)5) Rejuvenation Products ( Shilajit gold)6) Rubs & Balms ( Dabur Balm Strong)7) Women’s Health ( Active Blood Purifier)

The DABUR VATIKA boasts of a range of four products:

1) Hair Oil

The delicate mix of pure coconut oil with special hair care herbs including henna, amla and lemon blended together to strengthen each strand of hair from within in the form of the DABUR VATIKA HAIR OIL.

2) Shampoo.

THE DABUR VATIKA SHAMPOO that conditions from deep within, while gently cleansing and nourishing hair created by the Vatika Expert with a perfect balance

of natural ingredients like henna, green almonds and Shikakai.

3) The VATIKA ANTI-DANDRUFF SHAMPOO for the persistent dandruff problem is the natural choice. This herbal treatment is completely safe and cures dandruff from within.

4) DABUR VATIKA FACE PACK comes in a ready to use paste format. It is enriched with natural ingredients that penetrate deep into the skin to make it fairer.

DABUR VATIKA HAIR OILTHE 4 P’s OF MARKETING

1) PRODUCT

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 associationsVatika has assiduously built a brand that delivers on all these values through its various product offerings. 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. Vatika comprises products primarily in hair care. Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy and promotion campaigns. 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.

DABUR VATIKA HAIR OIL:Available in:Bottles 75 ml, 150 ml, 300 mlFlip cans 150 ml, 300 ml

2) PRICE:

Dabur Vatika is a premium product and is aimed at the premium segment. Until recently this was the only hair oil catering to this segment. Recently Cavin Care has entered this segment with the launch of “Meera”

The prices of these packs are as follows

Pack Size Price (Rs)

75 ml 20

150ml 40

300ml 75

Historically, price has been the major factor affecting buyer choice. This is true in developing nations, among poorer groups, and with commodity products. However, non-price factors have become more important in buyer-choice behavior in recent years and especially in health and beauty products. As we can see from the prices of Vatika its target segment is the premium sector where people are more conscious about quality and are not affected even if Vatika charges a premium for its product.

In Vatika’s case the company is trying to sell the superior quality. They believe the customers will be willing to pay more for a better product especially in Health and beauty products.

Our customer survey also reflects the same. The customers are ready to pay more if they perceive that particular hair oil is of superior quality.

However because of its superior quality Vatika has gone much further than garnering a premium image and, today, stands as the preferred and trusted brand of 11.1 million Users (Source: IRS Household Data).

The prices of Dabur Vatika hair oil are same for the past 2 years. 2 years back the price of Hair oil was increased by Re 1 across all the pack sizes. The reason attributed to this was the cost of raw materials had increased.

3) PLACE

Placement if the product is crucial. There are often many paths (i.e. channels) which a product can take in going from factory to the customer. The choice of channels may also have a significant bearing on pricing. Dabur Vatika operates in the P1 markets of Orissa. According to their distributor P1 market is any city in Orissa whose population exceeds 1 Lakh. The cities targeted in Orissa are Bhubhaneshwar, Cuttack, Puri, Rourkela, Bahranpur, Sambalpur. As it is a premium product only the urban cities are targeted. Because of its high price there is hardly any Market in the rural places.

The above diagram explains the marketing channel. The distributor usually forecasts a demand for the coming month and sends the forecast of the demand to the Carry and forward (C&F) agent The C&F agent gets the forecast from all the distributors across the state. The

C&F agent then combines the demand for the state and sends this to the Head of Department, New Delhi. The Head of Department the directs the factory at Uttaranchal to send the products to Narendrapur (West Bengal). This place is known as mother Depot and gets the product of the eastern region of India. From here the products are dispatched to the different states as per the demand. The products come to the C&F agent and the C&F sends the product to the distributors. The distributors sell the product to wholesalers. The wholesalers sell the product to the retailers either on credit or cash. The retailers finally sell the product to customers.Orissa has 1 C&F agent. There are 98 distributors of Dabur in Orissa of which 3 are in Bhubhaneswar. The whole process is supervised by sale officers. There are 14 sale officers in Orissa. There is a senior sales officer who supervises the whole process.Each distributor has been assigned a geographical area. All the wholesalers contact the distributors of his region to get the product from him.

4) PROMOTION

Vatika is the second largest brand in the stables of Dabur and is one of the five power brands of the company. The brand hit Rs 100 million during the first year of launch, prompted reigning leader Parachute to come up with a similar product and contributed to a dip in Parachute's fortunes for the first time in the decade. 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’s first promotion coincided with the launch of its hair oil.This campaign 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.

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 valueadded 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.The idea of using 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.The Vatika woman is young, contemporary, educated, multi-faceted, achievementdriven and confident. It is in the Vatika brand that she sees a true reflection of her own personal ideals.The qualities of Vatika products, ascribed to the brand by hundreds of thousands of satisfied consumers, have been further underlined by its attractive packaging.

The transparent bottle for Vatika Shampoo and the unique mushroom-shaped cap for

Vatika Hair Oil are exercises in innovation. 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.The message delivered in the advertisements is “Aise mein sirf nariyal tel? No ways, I need extra” which highlights the additional ingredients of the product namely amla, henna, lemon and other natural ingredients. The advertisements also promote the message of how vatika hair oil is perfect for a country like India where the dust and pollution level is so high.

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 andShakers’ – the popular TV show.

Vatika follows a trade promotion strategy where the wholesaler is given 1 bottle of hair oil free on sale of 12 and other times 24 bottles. This is not a year round strategy and is undertaken once in three-six months. They also provide additional benefits to the retailer for showcasing the product in the most attractive shelves in their stores. There is no separate strategy for the state of Orissa as the company does not believe in geographical division. They believe that providing sales promotion in 1 state makes the consumers of the neighbouring states feel disappointed.Vatika has recently redesigned its bottle and spent Rs. 2 crore on it because of the problem of rats destroying the bottles when kept in the godowns.

Vatika hair oil registered a double digit growth with sales value increasing by 13.1% in 2004-05. The product increased its marketshare in the hair oil category from 6.9% in 2003-04 to 7.6% in 2004-05. Dabur continued to promote this brand with its concept of “Vatika Women”.The Superbrand Council of India acknowledged the strength of the Vatika brand and it was adjudged as one of the 101 super brands in India.

MAIN COMPETITORS:

PARACHUTE

In the pan Indian market Parachute is the No. 1 brand in coconut oil with 55%market share in Rs. 5 billion branded coconut oil segment. Parachute is Marico’s one of the most popular and profitable offering in the Indian market and in order to reduce the over- dependence on this single brand some other variants have been introduced in the market in the last 4-5 years. Parachute is one of the largest FMCG brands in the country and it is the flagship brand ofMarico Marico has maintained Parachute market share despite severe competition.Marico also has Parachute Jasmine and Parachute Enrich types of coconut oil under theParachute brand. While Parachute continues to be the market leader in both urban and rural areas, the company is planning to consolidate its leadership in rural markets by increasing its rural reach, by covering more villages through a network of super-distributors and increased van operations.

NIHAR:

HLL launches 'Nihar Coconut Amla Hair Oil' a unique hair oil that provides Double Nourishment Hindustan Lever Ltd (HLL) launched 'Nihar Naturals', hair oil combining the benefits of Coconut oil and Methi (Fenugreek), available in three floral variants namely Rose, Jasmine and Hibiscus. Nihar is the second largest brand in the coconut oil segment. It is a product that provides additional benefits, a mix of ingredients with demonstrable efficacy and affordability. Based on consumer feedback this multi-disciplinary task required the selection of the right 'actives' with relevant benefits and delivering it to hair. Nihar Coconut Amla Hair Oil will be available, in three packs sizes - 200 ml priced at Rs 36, 100 ml priced at Rs 19 and 50 ml priced at Rs 10 across the country. The packaging brings across the freshness & naturalness of the brand and is available in a transparent bottle that is fresh green in colour along with a tamper proof cap. The bottle is specially designed for consumer handling convenience. The brand launch was backed by a strong media campaign both on air and in print.

Distribution Channels

In Urban areas

In Rural areas:

International distribution:

BRANDING STRATEGY

SHIFT from UMBRELLA Branding Strategy to INDIVIDUAL Branding Strategy.

NEW LOGO

The old logo shows the traditional values, ages, and reliability while the new logo along with the traditional values gives a vibrant look because of the colours used and shows a growing tree. Thus, it has changed its logo to a much brighter tree consisting the tradition too.