A PROJECT REPORT On MARKETING STRATEGY OF DABUR VATIKA HAIR OIL & DABUR CHYAWANPRASH SUMMAR TRAINING PROJECT REPORT SUBMITTED TOWARDS PRACTICAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION Submitted To : Submitted By : MR. KARTIK ANUJ KUMAR SHAHI Faculty MBA IInd Sem. Reg. No. : MA91116
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A
PROJECT REPORT
On
MARKETING STRATEGY OF DABUR VATIKA HAIR OIL & DABUR CHYAWANPRASH
SUMMAR TRAINING PROJECT REPORT SUBMITTED TOWARDS
PRACTICAL FULFILLMENTOF
MASTER OF BUSINESS ADMINISTRATION
Submitted To : Submitted By :
MR. KARTIK ANUJ KUMAR SHAHI Faculty MBA IInd Sem.
Reg. No. : MA91116
VEL RANGARAJAN SAKUNTHALA COLLEGE OF MANAGEMENT &
SCIENCE CHENNAI
MARKETING MANAGEMENT TERM PROJECT
Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
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ACKNOWLEDGEMENT
The present work is an effort to throw some light on “Marketing
Strategy of Dabur Vatika Hair Oil & Chyawanprash”. The work would
not have been possible to come to the present shape without the able
guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledged the encouragement and
guidance received by my organizational guide Mr. Sumit Sharma
(BRANCH MANAGER) and other staff members of Dabur India Ltd.
I convey my heartful affection to all those people who helped and
supported me during the course, for completion of my Research Report.
{ANUJ KUMAR SHAHI}
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TABLE OF CONTENTS
1.EXECUTIVE SUMMARY 7
2.INTRODUCTION 9
COMPANY PROFILE 10
PRODUCT PROFILE 11
3.OBJECTIVE 39
4.RESEARCH METHODOLOGY 41
MARKETING RESEARCHSAMPLING
5.ANALYSIS 45
6.FINDINGS
7.SWOT ANALYSIS 63
8.RECOMMENDATIONS 67
9. CONCLUSION 69
10.APPENDICES 72
11. BIBLIOGRAPHY 83
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EXECUTIVE SUMMARY
This report aims at analysing and reporting on the marketing strategies of
Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur
Chyawanprash
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first
product. In the very first year of its launch it crossed Rs. 100 million in
turnover. Over the years, Vatika has come to be amongst the company’s
highest selling brands. 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. 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 analyse the marketing mix
of Dabur Vatika Hair Oil and Dabur Chyawanprash.
The report also enlists various recommendations based on BCG Growth
The main form of promotional activities of Dabur chyawanprash is
concentrated towards advertising and it has legible 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 mould
able 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 three ads, one each with Amitabh, M.S.DHONI
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.
.
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COMPETITOR ANALYSIS OF VATIKA
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The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin,
Emami, Bajaj, Marico, HLL, which together with Dabur have about 64% of
India's domestic market.
Dabur is one of India's largest players in the hair oil segment 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. Dabur Hair Oils
have a market share of 19%.
We have tried to analyse the competition for Dabur in the Hair Care
segment as follows:
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Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category.
The pleasantly perfumed hair oil has its main market in the Hindi belt and
also has significant presence in eastern and western India. Its share is 6%
of the total hair oil market.
Emami has existence in hair oil market through Himani Navratan oil and
Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami
oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share
of 4% in hair oil market.
Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond
Drops — currently have a value share of 19 per cent and 12 per cent in their
respective oil categories as per ORG-Marg. Besides, the company has also
decided to enhance its retail presence by nearly 20 per cent from the
existing 5 lakh retail outlets in an attempt to reach the rural parts. Overall it
has a market share of 4% in hair oil market.
Marico’s Parachute is premium edible grade oil, a market leader in its
category. Synonymous with pure coconut oil in the market, Parachute is
positioned on the platform of purity. In fact over time it has become the
gold standard for purity. Parachute's primary targets have been women of
all age. The brand has a huge loyalty, not only in the urban sections of
India but also in the rural sector. It has a market share of 28%.
HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil.
Overall it has a 3% share in hair oil market.
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COMPETITOR ANALYSIS OF CHYAWANPRASH
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:
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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
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OBJECTIVE OF THE Study’s
Following are the major objective of study: -
1. To study the impact(strong effect or imperission) of Budget Policies on
Marketing Strategy of Dabur Foods.
2. To study the Consumer, Buying behavior.
3. To study the problems faced by Dabur.
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RESEARCH METHODOLOGY
As the purpose of the project report is to analyse the consumable products
successfully launched in the last three years.
The data was collected both with the help of primary as well as secondary
sources.
Primary data, I proceeded with the drafting of the questionnaire for
consumers was structured as undisguised, & Personal -interview retailers.
I handed distributors & wholesalers and it personally to the respondents to
be analysed.
The questionnaire method was used-
a) To get first and relevant and unbiased information
b) Questionnaire provides versatility and solutions can be obtained by
just asking the questions.
c) Questioning is usually faster and cheaper.
d) Moreover, there is more control over data gathering activities.
Secondary data was also collected personally by me, which the
company has furnished for the general public. The secondary data was
gathered with the help of various magazines, newspapers, journals, and
brochures and also through the Internet. For secondary sources no
fieldwork was employed.
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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 choices 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 Dabur 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.
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No other fieldwork was employed to gather the information. The
questionnaires were distributed to the respondents and the data was
collected through primary and secondary sources
The statistical technique such a Pi-chart and percentages were used
in analysing and interpreting the data.
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CUSTOMER SURVEY RESULTS DABUR VATIKA
AWARNESS LEVEL
INTERPRETATION
It was observed that 90% customers award about the dabur vatika hair oil.
PREFERRED BRAND
NTERPRETATION
It was observed that 30% customers preferred the dabur vatika among the wide range of hair oil.
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SATISFACTION LEVEL
INTERPRETATION
It was observed that the satisfaction levels are high about the quality of the vatika hair oil.
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CUSTOMER SURVEY RESULTS
DABUR CHYAWANPRASH
AWARNESS LEVEL
INTERPRETATION
It was observed that 100% of the customers already award about the DABUR CHYAWANPRASH
PREFERRED BRAND
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INTERPRETATION
It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH
SATISFACTION LEVEL
INTERPRETATION
It was observed that the satisfaction level are high of the customers about the DABUR CHYAWANPRASH
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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)
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DISTRIBUTION
Supply chain: Dabur has steadily improved its procurement and
distribution systems to achieve a significant reduction in material costs.
Dabur has an extensive supply chain and distribution network that has
grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen
manufacturing locations, six mother-warehouses and over 50 Carrying and
Forwarding Agents (CFAs) that distribute more than 1,000 SKU’s to several
thousand stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse
displays as-of-yesterday sales, stock, receivables, banking, and other MIS.
Over 5,000 ASP pages meet almost all reporting requirements and make
this a single source of MIS for all levels of decision makers.
VSATs: This Success paved the ground for the company's supply chain
initiative. Fifty-five Ku Band TDMA VSATs were used to link primary
distributors to the system. Factories were hooked up using PAMA
(Permanent Assigned Multiple Access) VSATs. At some locations VPNs
had to be used because it was not possible to set up a dish. The integrated
primary and secondary system has a number of unique features. The
features like tight integration of schemes, stockists credit limit control,
automated banking of cheques, and online cheque reconciliation have
obvious advantages in the primary distribution. These are basically
extensions to the MFG/PRO ERP system and not core customizations. The
integrated system allows each Area Manager to plan for the month's sales
forecasts, stockist’s performance, and sales officers' performance. The
integration allows better control on pipelines in primaries and secondaries,
brings down inventories, and offers better control on production and sales
against a confirmed forecast. The idea is to increasingly shift focus from
primaries to secondaries. Schemes based on secondary volumes will help
control secondary pipelines and sales. Primary sales will therefore come
from a resultant 'pull' from secondary replenishments. Further, sales order
servicing can be improved by taking orders through the Internet.
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RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within and outside India.
Improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.
Provide consumers with innovative products within easy reach.
Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a venture called Vatika hair care centre, which would provide total hair care solutions. It could have hair care experts to solve hair problems. Services could include dandruff treatment, straightening of hair, treatment for split ends, etc.
Position Dabur Chyawanprash as not more of a medicine but as something, which is necessary for health.
More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an initiative to occupy shelf space.
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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 unfired. Chyawanprash are yet to establish their
supplement use in the average household here in lays the great
opportunities. Within the market, it is safe to conclude that dabur has hit
off rather well 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 dabur
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 Australian Product
Tabasco. 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,