Marketing Research

A case study on
‘‘Market Expansion Strategy Of Dabur With
Special Reference To Dabur Chyawanprash
for Rural Market in India’’

Vikas Misar Vikas Misar

1
 OVERVIEW OF FMCG SECTOR
IN INDIA
The Indian FMCG sector is the fourth largest sector
in the economy with a total market size in excess
of US$ 13.1 billion. It has a strong MNC presence
and is characterised by a well-established
distribution network, intense competition
between the organised and unorganised
segments and low operational cost. Availability of
key raw materials, cheaper labour costs and
presence across the entire value chain gives India
a competitive advantage.

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 THE SIZE OF RURAL MARKET
India is one of the largest economies in the world in
terms of purchasing power and has a strong
middle class base of 300 million. Around 70 per
cent of the total households in India (188 million)
resides in the rural areas. The total number of
rural households are expected to rise from 135
million in 2001-02 to 153 million in 2009-10. This
presents the largest potential market in the
world. The annual size of the rural FMCG market
was estimated at around US$ 10.5 billion in 2001-
02. With growing incomes at both the rural and
the urban level, the market potential is expected
to expand further. Vikas Misar 3
 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.
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 RURAL AND URBAN POTENTIAL
URBAN RURAL
Population 2001-02 (Mn 53 135
Household)
Population 2009-10 (Mn 69 153
Household)
% Distribution (2001-02) 28% 72%
Market (Town/Villages) 3,768 627,000
Universe of Oulets (Mn) 1 3.3
Source: Statistical Outline of India (2008-09), NCAER

An average Indian spends around 40% of his income on

grocery and 8% on personal care products. The large share
of fast moving consumer goods (FMCG) in total individual
spending along with the large population base is another
factor that makes India oneVikasofMisarthe largest FMCG markets5
 DABUR AT A GLANCE
• Leading consumer goods company in India with a turnover
of Rs.2233.72 Crore (FY07)
• 2 major strategic business units (SBU) - Consumer Care
Division (CCD) and Consumer Health Division (CHD)
• 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal
and Dabur International and 3 step down subsidiaries of
Dabur International - Asian Consumer Care in Bangladesh,
African Consumer Care in Nigeria and Dabur Egypt.
• 13 ultra-modern manufacturing units spread around the
globe
• Products marketed in over 50 countries
• Wide and deep market penetration with 47 C&F agents,
more than 5000 distributors and over 1.5 million retail
outlets all over India
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 DABUR CHYAWANPRASH
1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional

Ayurvedic products continues. The ancient
restorative Chyawanprash is launched in
packaged form, and becomes the first branded
Chyawanprash in India.

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Vikas Misar 8
 SWOT ANALYSIS OF DABUR
STRENGTHS WEAKNESS

-- Strong presence in well defined niches (like value added -- Seasonal Demand (chyawanprash in winter)
Ayurveda specialities) -- Low Penetration (Chyawanprash)
-- Core knowledge of Ayurveda as competitive advantage -- High price
-- Strong Brand Image -- Limited differentiation
-- Product Development Strength -- Unbranded players account for the 2/3rd of the total
-- Strong Distribution Network market
-- Extensive Supply Chain
-- IT Initiatives
-- R & D – a key strength

OPPORTUNITIES THREATS

-- Untapped Market (Chyawanprash) -- Existing Competition (like Himani, baidyanath and

-- Market Development Zandu for Dabur Chyawanprash)
-- Export opportunities. -- New Entrants
-- Innovation -- Threat from substitutes.
-- Increasing income level of the middle class
-- Creating additional consumption pattern

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 A SUMMARY TABLE OF THE
MARKETING MIX
The following table summarizes the marketing mix decisions, including a list of some of the
aspects of each of the 4Ps.

Product Price Place Promotion

Functionality List price Channel members Advertising

Appearance Discounts Channel motivation Personal selling
Quality Allowances Market coverage Public relations
Packaging Financing Locations Message
Brand Leasing options Logistics Media
Warranty Service levels Budget
Service/Support

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 OBJECTIVES OF THE STUDY
• To understand the demand pattern of Dabur
Chyawanprash products in the rural market.
• To know the amount of household income
spent on the consumption of FMCG products
of Dabur
Dabur..
• To understand the image of the products in
the eyes of the consumers.
• To analysis market petition strategy of Dabur
for rural market.
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 RESEARCH METHODOLOGY
Data collection

Sample unit: Sample size:

• working people • working people &
(including men & housewife : 30%
women) & housewife • college students : 25%
• college students • school students : 20%
• school students • senior citizens :10%
• senior citizens • Retailer :10%
• Retailer
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RESEARCH METHODOLOGY CONT
• Sampling techniques:
Judgmental sampling techniques used.
• Sampling region:
Sampling region will be SAHAPUR in Maharashtra.
Data collection method:
• Primary data: It will be collected with the help of a
self administered questionnaire.
• Secondary data: it will be collected with the help of
books, research papers, magazines, news papers,
journals, internet, etc.
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 RESEARCH INSTRUMENTS
• Questionnaire design: As the questionnaire is
self administrated one, the survey will be
simple and user friendly. Words used in
questionnaire will be readily understandable
to all respondent. Also technical jargons will
be avoided to ensure that there is no
confusion for respondents.

• Data Analysis: Data analysis will be done with

the help of MS Excel and SPSS Software.
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DATA ANALYSIS - CONSUMER
1. AWARNESS LEVEL

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DATA ANALYSIS - CONSUMER
2. PREFERRED BRAND

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DATA ANALYSIS - CONSUMER
3.SATISFACTION LEVEL

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DATA ANALYSIS - CONSUMER

4. REASONS FOR SELECTING A PARTICULAR BRAND

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DATA ANALYSIS - CONSUMER
5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND

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DATA ANALYSIS - CONSUMER
6. UNAVAILABILITY OF PREFERRED BRAND

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DATA ANALYSIS - CONSUMER
7. PREFERRED PACK SIZE

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DATA ANALYSIS - CONSUMER
8. REASON TO SELECT PREFERRED PACK SIZE

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DATA ANALYSIS - CONSUMER

9. FREQUENCY OF PURCHARE

60

50

40
PERCENTAGE
30

20

10

0
ONE MONTH TWO MONTHS SIX MONTHS

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DATA ANALYSIS - CONSUMER

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DATA ANALYSIS - CONSUMER

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RETAILER SURVEY RESULTS
1. Which brands of Chyawanprash do you stock?

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RETAILER SURVEY RESULTS
2.Out of these which are the most preferred?

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RETAILER SURVEY RESULTS
3. According to you what are the reasons for
customers’ preferences?

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RETAILER SURVEY RESULTS
4.What is the profile of your typical consumer?

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RETAILER SURVEY RESULTS
5.What schemes are you offered by the
companies?

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RETAILER SURVEY RESULTS
6.What schemes does a consumer prefer
most?

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RETAILER SURVEY RESULTS
7.According to you, does in-store advertising have an
affect on the consumers’ preference?

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RETAILER SURVEY RESULTS
8.Do a change in price affect their preferences?

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RETAILER SURVEY RESULTS

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 RECOMMENDATIONS
• Focus on growing core brands across categories.
• Reaching out to new geographies, within Sahapur area.
• Improve operational efficiencies by leveraging technology.
• Be the preferred company to meet the health and personal
grooming needs of our target consumers with safe,
efficacious, natural solutions by synthesizing the deep
knowledge of ayurveda and herbs with modern science.
• Provide consumers with innovative products within easy
reach.
• 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. The consumer’s patriotic love for tea
and coffee is unfared. Chyawanprash are yet to establish
their supplement use in the average household here in
lies the great opportunities. Within the market, it is safe
to conclude that dabur has hit off ratherwell with the
masses. Dabur has clearly lost it head start advantage
and thereby acquiring just 35% of the market share while
others enjoys rest of the market share. This could be well
attributed to dabor successful ATA (Availability, Taste and
Affordability) marketing module, the attributes most
rated by the consumers. Lack of publicity has hampered
the growth progress of the brand so aggressive
advertising is needed to promote Chyawanprash.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.
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THANK YOU

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