PROJECT REPORT ON “MARKETING STRATEGY OF DABUR VATIKA HAIR OIL & DABUR CHYAWANPRASH” SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF BACHLEOR OF BUSINESS ADMINISTRATION ( 2008-2011 ) SUBMITTED BY MR. KUSHAL DUA Roll No: 9342624 UNDER THE GUIDANCE OF
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Marketing Strategy of Dabur Vatika Hair Oil & Dabur Chyawanprash
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PROJECT REPORT
ON
“MARKETING STRATEGY OF DABUR VATIKA
HAIR OIL & DABUR CHYAWANPRASH”
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF
BACHLEOR OF BUSINESS ADMINISTRATION( 2008-2011 )
SUBMITTED BYMR. KUSHAL DUA
Roll No: 9342624UNDER THE GUIDANCE OF
SWATI SINGH
CERTIFICATE
This is to certify that the Dissertation entitled Marketing Strategy of Dabur Vatika
Hair oil & Dabur Chawanprash is a bonafide record of independent research work done by
KUSHAL DUA (Roll No:9342642) under my supervision during 2009-2010, submitted to
SWATI SINGH, ITS MOHAN NAGAR (GZB) in partial fulfillment for the award of the Degree
of BACHLEOR OF BUSINESS ADMINISTRATION and that the dissertation has not
previously formed the basis for the award of any other degree, Diploma, Associate ship,
Fellowship or other title.
Signature of the supervisor
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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 guide Dr. A.K. Srivastava (Director) 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.
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DECLARATION
I, KUSHAL DUA hereby declare that the dissertation entitled “Marketing Strategy of
Dabur Vatika Hair oil & Dabur Chayawanprash” submitted to SAWTI SINGH, of ITS
MOHAN NAGAR (GZB) in partial fulfillment for the award of the Degree of BACHLEOR OF
BUSINESS ADMINISTRATION and that the dissertation has not previously formed the basis
for the award of any other degree, Diploma, Associate ship, Fellowship or other title.
Place:
Date: Signature of the candidate.
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION
COMPANY PROFILE
PRODUCT PROFILE
3. OBJECTIVE
4. RESEARCH METHODOLOGY
MARKETING RESEARCHSAMPLING
5. ANALYSIS
6. FINDINGS
7. SWOT ANALYSIS
8. CONCLUSION
9. RECOMMENDATIONS
10.APPENDICES
11. BIBLIOGRAPHY
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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 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.
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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 Rise 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 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.
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COMPANY HISTORY
1884
Birth of Dabur
1896 Setting up a manufacturing plant
Early 1900s Ayurvedic medicines
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
1979 Sahibabad factory / Dabur Research Foundation
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
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
Following are the major objective of study: -
1. To study the Consumer, Buying behavior of Dabur Chyawanprash
2. To study the problems faced by Consumer of Dabur Product.
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)
3. To study the awareness regarding the dabur product-(Chyawanprash & Vatika Hair
oil).
4. To study the level of satisfaction of consumer regarding the dabur products.
5. To study the preferred package size of the Dabur Chyawanprash & Vatika hair oil.
6. To study a retailers preference towards Dabur Chyawanprash & Vatika hair oil.
7. To study the preference of consumer towards these Dabur Brands.
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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.
In order to find out current position of dabur chyawanprash & Dabur Vatika
Hair Oil. A survey was conducted where response of retailer & consumer was
seen.
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. 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,
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newspapers, journals, and brochures and also through the Internet. For secondary sources no
fieldwork 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 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.
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.
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CUSTOMER SURVEY RESULTS
DABUR VATIKA
AWARNESS LEVEL
INTERPRETATION
It was observed that 90% customers award about the dabur vatika hai
PREFERRED BRAND
INTERPRETATION
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.
REASON TO BUY THE PREFFERED BRAND
INTERPRETATION
It was observed that the reason to buy vatika hair oil is non-sticky 45%, brand loyalty 20% fragrance 10% & price 30%.
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UNAVAILABILITY OF PREFERRED BRAND
INTERPRETATION
It was observed that 25% customers could wait in case of unavailability the dabur vatika hair oil.
PREFERRED PACK SIZE
INTERPRETATION
It was observed that 55% of customers preferred 150ml, 20% of 75ml & 25% of customers preferred 300ml pack of the dabur vatika hair oil.
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REASON TO SELECT PREFERRED PACK SIZE
INTERPRETATION
It was observed that 40% of customers preferred because of availability, 25% for price, 15% for family size & 20% of customers for storage.
FREQUENCY OF PURCHASE
INTERPRETATION
It was observed that 5% of customers buy within the 15days, 32% of within the 1 month & 63% of customers buy the hair oil after the 2month.
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RETAIL SURVEY RESULTS
DABUR VATIKA
1. Which brands of Hair Oil do you stock?
INTERPRETATION
It was observed that 75% of total stock of hair oil is dabur vatika hair oil
2. Out of these, which are the most preferred?
INTERPRETATION
It was observed that 35% of total customers mostly preferred the dabur vatika hair oil.
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3. According to you what are the reasons for customers’ preferences?
INTERPRETATION
It was observed that the reasons for preferred are brand loyalty 50% availability 5% & price 20%.
4. What is the profile of your typical consumer?
INTERPRETATION
It was observed that 20% from high-class income, 50% from middle class income group & 30% from low income.
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5. What schemes are you offered by the companies?
INTERPRETATION
It was observed that schemes that are mostly provided by the companies are price discount 40%, buy one get one 35% & others are 25%.
6. What schemes does a consumer prefer most?
INTERPRETATION
It was observed that schemes that are mostly preferred by the customers are price discount 60%, buy one get one 25% & others are 15%.
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7. According to you, does in-store advertising have an affect on the consumers’ preference?
INTERPRETATION
It was observed that advertisings have an affect on the consumers’ preference yes-40% and No 60%.
8. Does a change in price affect their preferences
INTERPRETATION
It was observed that price changes might be affected the sales by
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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
INTERPRETATION
It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH
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SATISFACTION LEVEL
INTERPRETATION
It was observed that the satisfaction level are high of the customers about the DABUR CHYAWANPRASH
REASONS FOR SELECTING A PARTICULAR BRAND
INTERPRETATION
It was observed that 65% of the customers buy for the purpose of health, 20%of for brand loyalty, 10% of customers for price & 5% of customers for taste.
HOW DID YOU COME TO KNOW ABOUT THIS BRAND?
INTERPRETATION
It was observed that 80% of the customers award about the DABUR CHYAWANPRASH through TV, and others through media, internet UNAVAILABILITY OF PREFERRED BRAND
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INTERPRETATION
It was observed that 40% of the customers could wait in case of unavailability of DABUR CHYAWANPRASH.
PREFERRED PACK SIZE
INTERPRETATION
It was observed that 50% of the customers preferred 500ml pack, 30% of customers preferred 1kg pack and 20% of customers preferred to buy 250ml pack of DABUR CHYAWANPRASH
REASON TO SELECT PREFERRED PACK SIZE
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INTERPRETATION
It was observed that 20% of customers preferred because of availability, 40% for price, 25% for family size & 15% of customers for storage.
FREQUENCY OF PURCHARE
INTERPRETATION
It was observed that 30% of customers buy within the 15days, 55% of within the 1 month & 15% of customers buy the hair oil after the 2month.
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RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1. Which brands of Chyawanprash do you stock?
INTERPRETATION
It was observed that 90% of total stock of CHYAWANPRASH is dabur
2. Out of these, which are the most preferred?
INTERPRETATION
It was observed that 80% of total customers mostly preferred the DABUR CHYAWANPRASH
3. According to you what are the reasons for customers’ preferences?
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INTERPRETATION
It was observed that 55% of the customers buy for the purpose of brand loyalty, 30% of customers for price & 5% of customers for availability.
4. What is the profile of your typical consumer?
INTERPRETATION
It was observed that 20% from high-class income, 65% from middle class income group & 15% from low income.
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5. What schemes are you offered by the companies?
INTERPRETATION
It was observed that schemes that are mostly provided by the companies are price Discount 55%, buy one get one 5% & others are 40%.
6. What schemes does a consumer prefer most?
INTERPRETATION
It was observed that schemes that are mostly preferred by the customers are price discount 70%, buy one get one 20% & others are 10%.
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7. According to you, does in-store advertising have an affect on the consumers’ preference?
INTERPRETATION
It was observed that advertisings have an affect on the consumers’ preference yes-30% and No 70%.
8. Does a change in price affect their preferences?
INTERPRETATION
It was observed that price changes might be affected the sales by 60%.
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LIMITATION S
Training is a costly affair for the management. It needs a handsome amount and long time. So
management has to play safe game for the benefits of the company as well as the workers.
One wrong decision may enforce the company to fall into deep troubles. So selecting the
weak areas of staffs and workers should be done very carefully. For that the management
should be conduct a test.
For providing an effective training, company requires a knowledgeable trainer. Selecting a
particular trainer is again a difficult job. Trainer demands handsome money. Training needs
time and cost both.
To conclude, it is very clear that training should be provided but not at the loss of the
company. It is very costly and time taking affair. But it is most important for the development
of the company. So management can’t avoid it at any cost.
Due to lack of time (i.e., Two months) it is not possible to reach all respondents.
The lack of availability of time on the respondent’s part.
Some respondent’s was biased.
Unwillingness of the respondents.
I tried to overcome on these limitations.
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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.
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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CONCLUSIONS
The Chawanprash 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, Lemoneez 1 Crore & others 3 Crores.