A research PROJECT report ON MARKETING STRATEGY OF DABUR
PRODUCT
Submitted to Utter Pradesh Technical University, Lucknowfor the
partial fulfillment for the Degree ofmaster OF business
administration
Submitted To:
Dr. AJAY TRIPATHI Dr. ASHWANI VARSHNEY Project Supervisor HOD
(Management)
Submitted By: VIPUL KUMAR SINGHRoll NO.: 1211670138
JAIPURIA INSTITUTE OF MANAGEMENT14- C, VASUN1DHARA,
GHAZIABAD.
CERTIFICATE
This is to certify that VIPUL KUMAR SINGH a student of Master of
Business Administration, Batch (2012-14) of JAIPURIA INSTITUTE OF
MANAGEMENT, Roll No. 1211670138 has undertaken the Research under
my guidance for the Research Project Title MARKETING STRATEGIES OF
DABUR PRODUCT. This Research Project Report is prepared in partial
fulfillment for the Degree of Master of Business Administration by
Utter Pradesh Technical University, Lucknow.
To the best of my knowledge, this research work is original and
no part of this report has been submitted by the student earlier to
any other institution / university.
Dr. AJAY TRIPATHI Dr. ASHWANI VARSHNEY
Project Supervisor HOD (Management)
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. AJAY TRIPATHI and Dr. ASHWANI
VARSHNEY my faculty members 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.
VIPUL KUMAR SINGH MBA- IV (SEM)
TABLE CONTENT SUB TOPIC PAGE NO
INTRODUCTION OF THE COMPANY 6 I. COMPANY PROFILE 8II. COMPANY
HISTORY 10III. FINANCIAL REPORT 13
PRODUCT PROFILE 15 PRODUCT LINE 16I. OVERVIEW OF THE HAIR OIL
SEGMENT 19a) OVERVIEW OF VATIKA 20b) STP ANALYSIS OF VATIKA HAIR
OIL 22c) MARKET MIX OF VATIKA HAIR OIL 24 II STP ANALYSIS OF DABUR
CHYAWANPRASH 35 III MARKETING MIX OF DABUR CHYAWANPRASH 38 IV
ADVERTISING 39
SWOT ANAYSIS 52
ANSOFFIS PRODUCT MARKET EXPANSION GRIP 54
OBJECTIVE 57
RESEARCH METHODOLOGY 58
FINDING & ANALYSIS 63
CONCLUSION 86
LIMITATION 89
RECOMMENDATION 91
ANNEXURE 93
BIBLIOGRAPY 98
INTODUCTION OF COMPANY
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.
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 Indias 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 forshampoo
or digestive tablets? The answer is fairly simple, it stands for
Indias 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). Theres a great sense of responsibility for investors
funds on view. This is a direct extension of Daburs philosophy of
taking care of its constituents and it adds to the sense of trust
for the brand overall.
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 medicinesDabur 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 AyurvedaDabur 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 packWidening 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 segmentAddressing
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 tabletDabur 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 funThe 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 careDabur 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 blitzkriegDabur 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 markDabur 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 drugsWith 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
FINANCIAL REPORT
INCOME 200720062005200420032002
Sales Turnover1778.021369.681268.721147.981232.31163.19
Excise Duty36.9326.8942.4965.473.3760.61
Net Sales1741.091342.791226.231082.581158.931102.58
Other income19.3122.3411.9711.739.6116.74
Stock Adjustments22.19-4.247.96-25.78-3.5816.85
Total Income1782.591360.891246.161068.531164.961136.17
EXPENDITURE
Raw Materials558.4428.7447.19405.32452.7466.87
Power & Fuel Cost30.5926.2821.6917.1219.8418.31
Employee Cost109.7791.2374.9970.389.4777.46
Other Manufacturing
Expenses255.13153.35111.9180.4674.7374.23
Selling and Adm Exp460.52365.33368.11329.47360.09350.03
Miscellaneous Expenses55.1756.3635.529.0932.1526.13
Total Expenditure1469.581121.251059.39931.761028.981013.03
Operating Profit313.01239.64186.77136.77135.98123.14
Interest6.815.734.667.5818.426.64
Gross Profit306.2233.91182.11129.19117.5896.5
Depreciation21.9819.0517.115.7522.0420.99
Profit Before Tax284.22214.86165.01113.4495.5475.51
Tax31.5218.08138.757.624.92
Fringe Benefit tax3.283.70000
Deferred Tax-2.66443.4935.56
Reported Net Profit252.08189.08148.01101.284.9265.03
Extraordinary Items8.291.943.612.60.582.98
Adjusted Net Profit243.79187.14144.498.684.3462.05
PRODUCT PROFILE
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
Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola
Candy Hajmola Candy Fun 2
Pudin Hara (Liquid and Pearls) Pudin Hara G Dabur Hingoli
Skin Care
Gulabari Vatika Fairness Face Pack
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 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
Ayurvedic Specialities
Ayurveda Ayurveda Vikas
Overview of the Hair Oil segmentIn 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).
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 companys 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 companys 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)
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 VishwastAmla, Ashwagandha,
Hareetaki, Dashmul, Ghrit and severalother herbs and herbal
extracts. SpecialVishwast fortified with additional health
beneficial herbs likeKeshar, Akarkara etcPACKAGING
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 inDabur Chyawanprash
is available in three sizes to cater to the needs of different
types of people. 1. One kilogram pack2. 500 gram pack3. 250 gram
pack
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
Total hair Care brandThe 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 offeringVatika 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
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
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
PromotionProductPricePromotionPlace
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 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.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 bluepacks 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 inBottles 75 ml,
150 ml, 300 mlFlip cans 150 ml, 300 mlFlip cans were introduced for
the winter season.Quality Vatika products contain natural
ingredients that have been blended together through scientific
processes at Daburs in-house research laboratories. Dabur Research
Foundation has more than 100 scientists working together to make
superior quality products that match international standards.
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.
PRICE/QUALITY MATRIX
PriceQualityHighMiddleLow
HighLuxury SegmentVATIKAIdeal For Penetration
Premiere Offering
MiddleOverpricedAverageReal Bargain
LowMake The Sale and RunUnhappy CustomersCheap Goods
PLACEVatika 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.
Daburs distribution network extends beyond India in the
following countries as well:Distribution Network Central, North
& South America Australia Asia Middle East North & South
Africa East & West Europe
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 Oils 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.
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.
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 exchangeNothing can happen without
establishing the brands 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 consumers 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 Movers and Shakers the popular TV
show.
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
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.
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 todays 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
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 Daburs 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.
MARKETING MIX OF DABUR CHYAWANPRASHDabur 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 Place Promotion
ProductPricePromotionPlace
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
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 VishwastAmla, Ashwagandha,
Hareetaki, Dashmul, Ghrit and severalother herbs and herbal
extracts. SpecialVishwast fortified with additional health
beneficial herbs likeKeshar, Akarkara
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 inDabur Chyawanprash is available in three sizes to
cater to the needs of different types of people. 1. One kilogram
pack2. 500 gram pack3. 250 gram pack
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.175.00500gms Rs.100.00250gms Rs.
55.00
PRICE/QUALITY MATRIXPriceQualityHighMiddleLow
HighLuxury Segment
Ideal For PenetrationDABUR CHYAWANPRASHPremiere Offering
MiddleOverpricedAverageReal Bargain
LowMake The Sale and RunUnhappy CustomersCheap Goods
PLACEDabur 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.
Daburs distribution network extends beyond India in the
following countries as wellDistribution Network Central, North
& South America Australia Asia Middle East North & South
Africa East & West Europe
PROMOTIONThe main form of promotional activities of Dabur
chyawanprash are concentrated towards advertising and it has
neglible sales promotional activities.
AdvertisingNothing can happen without establishing the brands
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 consumers
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.
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.
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 brotherwith
his younger brother, maan promising to have a spoon of thegaye
guru, tere Dabur chyawanprash everyday. But OurChyawanprash ko
younger one insists on two spoons.
COMPETITOR ANALYSIS
The key competitors of Dabur in the Chyawanprash segment are
Baidyanath, Zandu and Himani, which together with Dabur have about
85% of India's domestic market. Dabur is India's largest Ayurvedic
medicine supplier and the fourth largest producer of FMCG. It was
established in 1884, and had grown to a business level in 2003 of
about 650 million dollars per year, though only a fraction of that
is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal
honey) has a market share of 61%.We have tried to analyse the
competition for Dabur in the Chyawanprash segment as follows:
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was
founded in 1917 in Calcutta, and specializes in Ayurvedic
medicines, though it has recently 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 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%.
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)
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)
ANSOFFS 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, Daburs 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.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." 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 presentBesides
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-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.
OBJECTIVE OF THE STUDY
To know the customer awareness about the brands of the
Dabur.
To aware about the mostly preferred brand among the customer
and
Retail Stores. To survey with customers and Retail Stores to
know the Marketing
Strategies of Dabur. To know about STP strategies of company to
attract customers towards brands. To aware about the Schemes
whatever provided by company to
Retail Stores and Customers.
Research Methodology
Research PlanData source : Primary data and secondary data
Research approach : Observation & SurveyResearch instrument :
Questionnaire for consumers, retailers & dealersSampling Plan
:Sampling unit Sample size 100, Sampling procedure random Contact
method: PersonalField work plan : Survey place & timeResearch
& 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.
Methodology used in surveyData 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 belowh
Design
Methodology AdoptedAs 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.
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 informationb)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
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.
RETAILER SURVEY RESULTSDABUR CHYAWANPRASH
1) Which brands of Chyawanprash do you stock?
ANALYSIS: In the survey most of the people know about DABUR
CHYAWANPRSH as compare to other
2) Out of these which are the most preferred?
ANALYSIS: In the rating DABUR got highest position in retail
survey
ZANDU,HIMANI got low position
3) According to you what are the reasons for customers
preferences?
ANALYSIS : During the survey customer preferances to brand
loyalty not for Price
4. What schemes are you offered by the companies?
ANALYSIS; Customer survey 60% price discount 5% byu one get one
And 40%others companies also prefer
5).Does a change in price affect their preferences?
ANALYSIS: Changing price also affect their preference because
they that time they
dont know which they prefer
CUSTOMER SURVEY RESULTSDABUR VATIKA
AWARNESS LEVEL
ANALYSIS: In this survey I got Parachute is the most preferred
brand according to Awarness Level of Customer followed by
Vatika.
PREFERRED BRAND
Analysis Parachute is the most preferred Brand among the
customers followed by Vatika and Keo Karpin.
SATISFACTION LEVEL
Analysis The satisfaction level of customer towards Parachute,
Keo Karpin and
Vatika are same and High followed by Nihar.
REASON TO BUY THE PREFFERED BRANDAnalysis The mostly reason to
buy the preffered brand is Non Sticky followed by
the Price of the brand.
HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
Analysis Most of the people came to know about this brand
through TV followed by . WO
UNAVAILABILITY OF PREFERRED BRAND
ANALYSIS: The reason of unavailability of preffered brand is
Purcha se another Brand followed by Wait constraints.
PREFERRED PACK SIZE
Analysis The mostly preferred pack size of the brand is 150 ml
followed by 300 ml.
REASON TO SELECT PREFERRED PACK SIZE
Analysis The mostly rason to select preferred pack size is
Availability of the brand followed by Price.
FREQUENCY OF PURCHASE
Analysis The mostly frequency of purchase the preferred brand is
Two months
followed by One month.
RETAIL SURVEY RESULTSDABUR VATIKA
1) Which brands of Hair Oil do you stock?
Analysis Mario is the brands of hair that is mostly stocked by
Retail Stores followed
by Vatika.
2) .Out of these which are the most preferred? Analysis Mario is
the most preferred brand among the Retail stores followed by
Vatika and Hill.
3) According to you what are the reasons for customers
preferences?
Analysis The mostly reasons for customers preferences is Brand
Loyalty followed
by Price according to Retail Stores.
4) What is the profile of your typical consumer? Analysis The
mail Profile of the customer of Retail Stores lies in the Middle
income level followed by Low income level customer.
5) What schemes are you offered by the companies?
Analysis The mostly scheme that are provided by Companies to
Retail Stores is
Price Discount followed by Buy One Get One offer.
6) What schemes does a consumer prefer most?
Analysis Customers mostly prefer the Price Discount Scheme
followed by Buy One
Get One offer.
7) According to you, does in-store advertising have an affect on
the consumers preference?
Analysis According to Retail Stores Advertising does not have an
effect on the
consumers preferences.
8) Does a change in price affect their preferences
Analysis According to Retail Stores Price of the brand
definitely affect the
preferences of customers.
CONCLUSIONSThe Chyawanprash Industry is yet to capture the
beverage market in full swing. Packed Chyawanprash followed by
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and severalother herbs
and herbal extracts. the market. The consumers 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 .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.
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.
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 Maricos 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.
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.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
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 Print
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
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
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
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.
Websiteswww.google.comwww.dabur.comwww.tutor2u.net
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