Professional Documents
Culture Documents
ON
MARKETING STRATEGY OF DABUR
CHYAWANPRASH
Summer Training Project Report Submitted
Towards Partial Fulfillment
of
BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO CCS UN)IVERSITY, MEERUT)
ACADEMIC SESSION
[2013-2016]
Submitted To -
ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an
amalgamation of the efforts, ideas and co-operation of a number of entities. The
compilation and presentation of this opuscule has bestowed me with an opportunity
to show my gratitude to those subservient to it.
I am highly indebted to my guide .. who has been the hallmark of this
effort. Their guidelines made me comprehend the enigmatical portion of the
subject and were the sole animating force that coerced me to meliorate my efforts
without the support and guidance the project report would not have taken shape.
JYOTI JAIN
DECLARATION
I hereby declare that I have worked on the topic Marketing Strategy of Dabur
Chaywanprash for the fulfillment of my B.B.A. (Bachelor of Business Administration).
All information in this report is true representation of what I have experienced during the
project.
JYOTI JAIN
EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur
India Ltd (DIL) for the brand Dabur Chyawanprash. Pioneering role that it has
played in the evolution of the categories it has 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 analyze the marketing mix of Dabur
Chyawanprash.
The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoffs 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.
CONTENTS
PAGE NO.
1. OBJECTIVE OF THE STUDY
2. OVERVIEW OF FMCG SECTOR IN INDIA
3. ABOUT DABUR
PRODUCT LINE
SWOT ANALYSIS OF DABUR
4. THE MARKETING MIX AND SELLING PROCESS
5. THE MARKETING MIX
6. RESEARCH METHODOLOGY
7. DATA ANALYSIS
1
2-3
4-25
26-31
32
33-47
48-61
62-63
64-72
8. CONCLUSIONS
73-74
9. RECOMMENDATIONS
10. BIBLIOGRAPHY
11. QUESTIONNAIRE
75
76
77-81
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
6
Urban
Rural
53
69
28
3,768
1
135
153
72
627,000
3.3
Rural-urban profile
ABOUT
DABUR
A. 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.
10
B.
Dabur India Limited has marked its presence with some very
significant achievements and today commands a market leadership
status. Our story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment
to our partners and stakeholders. The results of our policies and
initiatives
speak
for
themselves.
11
C.
1884
1896
Early
1900s
1919
1920
1936
1972
1979
1986
1992
1993
1994
1995
1996
1997
1998
2000
2003
2005
2005
2006
2006
2007
2007
2007
Birth of Dabur
Setting up a manufacturing plant
Ayurvedic medicines
Establishment of research laboratories
Expands further
Dabur India (Dr. S.K. Burman) Pvt. Ltd.
Shift to Delhi
Sahibabad factory / Dabur Research
Foundation
Public Limited Company
Joint venture with Agrolimen of Spain
Cancer treatment
Public issues
Joint Ventures
3 separate divisions
Foods Division / Project STARS
Professionals to manage the Company
Turnover of Rs.1,000 crores
Dabur demerges Pharma Business
Dabur aquires Balsara
Dabur announces Bonus after 12 years
Dabur crosses $2 Bin market Cap, adopts
US GAAP
Approves FCCB/GDR/ADR up to $200
million
Celebrating 10 years of Real
Foray into organised retail
Dabur Foods Merged With Dabur India
12
D.
Founding Thoughts
"What is that life worth which cannot bring comfort to others"
The
doorstep
'Daktar'
The story of Dabur began with a small, but visionary
endeavour by Dr. S. K. Burman, a physician tucked away in
Bengal. His mission was to provide effective and affordable
cure for ordinary people in far-flung villages. With missionary
zeal and fervour, Dr. Burman undertook the task of preparing
natural cures for the killer diseases of those days, like cholera,
malaria and plague.
Soon the news of his medicines traveled, and he came to be
known as the trusted 'Daktar' or Doctor who
came up with effective cures. And that is how
his venture Dabur got its name - derived from
the Devanagri rendition of Daktar Burman. Dr.
Burman set up Dabur in
The mission
1884 to produce and
continues...
dispense
Ayurvedic
medicines. Reaching out
to a wide mass of people who had no access to
proper treatment. Dr. S. K. Burman's commitment and
ceaseless efforts resulted in the company growing from a
fledgling medicine manufacturer in a small Calcutta house, to a
household name that at once evokes trust and reliability.
13
E.
"Dedicated to the health and well being of every household"
People are our most important asset. We add value through result
driven training, and we encourage & reward excellence.
F.
Milestones to success
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 popularising 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. As it grows even further, Dabur will continue to mark up
on major milestones along the way, setting the road for others to
follow.
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 medicines
Dabur identifies nature-based Ayurvedic medicines as its area of
specialisation. 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 upgradation of Ayurvedic products
manufacturing initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda
Dabur 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.
G.
Dabur has an illustrious Board of Directors who are committed to take
the company onto newer levels of human endeavour in the service of
mankind. The Board comprises of:
Chairma
n
ViceChairma
n
Independent Directors
16
Sunil Duggal
Chief Executive
Officer
Dabur India
Limited
Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi
Foods as GM, Sales Operation.
In 1995 he came into the Dabur family, as General Manager (Sales
& Marketing), of the Family Products Division with products like
Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This
Division spearheaded the spectacular growth recorded by Dabur in
this period. Vatika was also launched during this period and is now
the Company's second biggest brand.
With his dynamic spirit and leadership abilities, he soon became
Vice-President and SBU-Head of the Family Products Division. In
July 2000 Mr. Duggal was appointed Director Sales and Marketing
of Dabur India Limited. And in 2002, he became the CEO of the
Company - a professional with valuable experience to steer the
company ahead in its growth plans.
CEO
17
18
H.
Good corporate governance and transparency in actions of the
management is key to a strong bond of trust with the Companys
stakeholders. Dabur understands the importance of good governance
and has constantly avoided an arbitrary decision-making process. Our
initiatives towards this end include:
Professionalisation of the board
Lean and active Board(reduced from 16 to 10 members)
Less number of promoters on the Board
More professionals and independent Directors for better
management
Governed through Board committees for Audit, Remuneration,
Shareholder Grievances, Compensation and Nominations
Meets all Corporate Governance Code requirements of SEBI
19
I.
When our Founder Dr. S. K. Burman first established Dabur, he had a
vision that saw beyond the profit motive. In his words, "What is that life
worth which cannot bring comfort to others." This ideal of a humane and
equitable society led to initiatives taken to give back some part of what
Dabur has gained from the community.
Our major initiatives in the Social sector include:
Establishment of the Sustainable Development Society, or Sundesh,
in 1993 - a non-profit organisation to promote research and
welfare activities in rural areas;
Promoting health and hygiene amongst the underpriviledged
through the Chunni Lal Medical Trust; and
Organising the Plant for Life programme for schoolchildren - to create
environmental awareness amongst young minds.
20
Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from
which all our products are derived. Due to overexploitation of these
resources and unsustainable practices, these plants and herbs are fast
reaching the point of extinction. In view of this critical situation, Dabur
has initiated some significant programmes for ecological regeneration
and protection of endangered plant species.
21
J.
22
K.
23
L.
24
B. A special herbal health care and personal care range successfully selling in
markets of
countries.
the
Middle East,
Far East
and
several
European
M.
PRODUCT LINE
Foods
Real
Real Activ
Hommade
Lemoneez
Capsico
Health Care
Baby Care
Health Supplements
Dabur Chyawanprash
Dabur Glucose D
Digestives
25
Hajmola Yumstick
Anardana
Hajmola
Hajmola Candy
Pudin Hara G
Dabur Hingoli
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
26
Oral Care
Babool Toothpaste
Skin Care
Gulabari
27
Ayurvedic Specialities
Ayurveda
Ayurveda Vikas
28
N.
Dabur India Ltd placed in the list of '20 Stocks You Must Own', prepared by Forbes
India
_________________________________________________________________________
29
Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable (Company) Brands by
Brand Finance
30
___________________________________________________________________________
WEAKNESS
not in winter)
Low Penetration(Chyawanprash)
competitive advantage
High price(Vatika)
IT Initiatives
31
OPPORTUNITIES
THREATS
Untapped Market(Chyawanprash)
Market Development
Export opportunities.
Innovation
middle class
New Entrants
32
SELLING PROCESSA.
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:
33
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 Himani 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%.
34
B.
STP ANALYSIS OF DABUR CHYAWANPRASH
SEGMENTATION
35
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
36
POSITIONING
"Andar se strong:
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.
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:
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.
37
C.
MARKETING MIX OF DABUR CHYAWANPRASH
pricing
strategy, easy
availability
and
promotion
Product
Price
Promotion
Product
List Price
Variety
Discount
Quality
Financing
Design
Features
Brand
Channels
Promotion
Location
Public Relations
Inventory
Schemes
Sponsorships
Credit Terms
Internet
Advertising
Place
&
Marketing
Names
Services
D.
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
39
Vishwast
Amla,
Ashwagandha,
Hareetaki,
Dashmul,
Ghrit
health
beneficial
and
several
Special
Vishwast
fortified
with
additional
herbs
Packaging:
n
The figure above shows the evolution of the packaging of Dabur Chyawanprash.
40
like
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.195.00
500gms
Rs.110.00
250gms
Rs. 62.00
41
PRICE/QUALITY MATRIX
Price
Quality
High
Middle
Luxury
Ideal
Segment
Penetration
Low
High
For
Premiere
Offering
DABUR
CHYAWANPRASH
Overpriced
Average
Bargain
Middle
Low
Real
Make
The
Unhappy
Cheap
Sale
and
Customers
Goods
Run
42
PLACE
Dabur 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 well:
Distribution Network
Australia
Asia
Middle East
43
PROMOTION
The main form of promotional activities of Dabur chyawanprash are concentrated
towards advertising and it has neglible sales promotional activities.
Advertising
Nothing 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
Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian
cricket team
44
Place
Target
Market
Price
Promotion
45
The firm attempts to generate a positive response in the target market by blending
these four marketing mix variables in an optimal manner.
46
Price
List price
Place
Channel members
Promotion
Advertising
Appearance
Discounts
Channel motivation
Personal selling
Quality
Allowances
Market coverage
Public relations
Packaging
Financing
Locations
Message
Brand
Leasing options
Logistics
Media
Service levels
Budget
Warranty
Service/Support
Product
Appearance: Dabur tries to make its products appear very attractive.
Quality: Quality of the product is really unmatchable as it is tested number of
times and its products are processed using very advanced machinery and
technology.
Packaging: Dabur products packaging is done in such a way that its juices does
not get expired before 6 months inspite of perishable products.
Brand: Dabur itself is a very reputed and well known brand in the market and its
Real juice is also known all over India.
Warranty: Dabur as such does not gives any warranty but if there is any problem
in its products before expiry then they replace the product.
Service/Support: Dabur foods provide full support to its stockiest, retailers and
consumers, what so ever the problem is
48
Price
List price: Dabur decide its price according to its competitors and the price
structure is different for retailers and stockiest.
Discounts: There are different discounts for retailers, stockiest and consumer from
time to time.
Allowances: Special allowances are gicen to stockiest sales man if he acives his
targets.
Place
Channel members: Channel members or business partners of dabur are its
stockiest, retailers.
Channel motivation: Channel motivation for dabur is pull and push strategy.
Market coverage: Dabur Foods has a distribution network that covers 175 towns
and 75 thousand retail outlets making its product available to the consumers across
the country at ease.
Locations: Dabur foods try to cover or tries to place its products in each and every
shop and every location.
49
Promotion
Advertising: Dabur products are advertised through television, newspapers,
magazine etc.
Personal selling: Dabur hardly do any personal selling except in tent shows and
road shows. Same for less & more for same
Media: Media of promotion is TV, Radio, newspapers, magazine.
Budget: Budget is Decided by finance team for different strategic business unit.
50
Critique of selling
In theory, the purpose of selling is to help a customer realize his or her goals in an
economic fashion. However, in reality this is not always the case. Customers can be
influenced to purchase a product or service that initially was not of interest to them. Some
salespeople are trained in the art of selling customers things they don't need.
Take for example the purchasing of a car: a consumer may have a set of cars in mind
(called an evoked set) that she feels match her needs, wants and budget. She may seek the
advice of a salesperson given that a salesperson can help her realize the right car given
those criteria. This can be a socially useful function; salespeople have specialized
knowledge of products that can help consumers make an informed decision. However, a
salesperson may also talk a consumer into purchasing a more expensive or perhaps larger
car then she needs or can afford. In this context, the salesperson may have usefully helped
the customer re-evaluate her needs, thereby establishing a new set of appropriate choices
among which included the newer or large car. This again would be a helpful and useful
service provided by the salesperson. However, it is sometimes the case that customers
purchase a product or service that was not initially intended and remains an inappropriate
purchase after the fact. On the other hand, the consumer in this scenario can be held
partially responsible for the inappropriate purchase; indeed, "A fool and his money are
soon parted." (P.T. Barnum, English proverbs)
51
52
B.
Channel Of Distributions
Manufacturing Plant
Stockist A
Retailers
Stockist B
Retailers
Retailers Retailers
Stockist C
Retailers Retailers
CONSUMERS
53
The above diagram it shows channel of distribution of dabur foods, here first the
products are manufactured and from Manufacturing plants the packed goods are
supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are
then further supplied to number of Stockiest or Distributors, from here goods
reaches to large number of Retailers and it is the duty of Stockiest to take orders
from retailers and then supply the goods to them, this work is generally done by
stockiest salesman through ready stock or by taking orders first and then placing
the order. From here the goods finally reaches to Customers. Customer purchases
the product from retailers.
This was the basic Channel of Distribution used by Dabur Foods, now I will throw
light on each channel of distribution of Dabur Foods.
A broader view sees a company at the center of a value network that includes
its suppliers, its immediate customers and their end customers. The value network
includes valued relations with others such as university researchers, government
approval agencies and so on.
MANUFACTURING PLANT:
Dabur Foods has Number of products in its product line but its main area of
interest or the product on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is
manufactured and tested.
Getting the raw material and packaging material requirement from the
production unit in charge
PACKAGING:
production unit
56
C.
STOCKIEST OR DISTRIBUTORS
Stockiest store the products in their godowns, C&FA supplies the goods to
them as per their order.
Stockiest has some sales men working under him, they are known as
stockiest sales man. Their work is to place the products in the market and
take order from retailers and then supply goods to them.
Sales man either take ready stock with them or they first take orders and
then supply goods later on.
There is a beat which is a schedule route of sales man, means sales man has
to daily cover the route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners,
and seeing that goods are properly placed in the retail outlets is also the duty
of stockiest sales man.
Companies sales officer keeps a check on the stockiest and monthly report
is also prepared which is further analyzed by ASM & ZSM.
In Sahibabad Dabur has 1 stockist, and in Ghaziabad 1
57
D.
RETAILERS
Retailers are backbone of the company as they are the one who can take the
product on new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the
brand special displays (using merchandising tools) to get affective brand
presence, and arranging it in more noticeable manner.
Classification of outlets in different type of markets is different according to
their sales volume.
TYPES OF RETAILS OUTLETS
Class
A
B
C
Retailers are the one who have direct contact with the customers.
Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail
outlets making its product available to the consumers across the country at ease.
58
E.
TYPES OF RETAIL MARKET
SCATTERED MARKET
Lesser no. of outlets, and
Extensive outlets
BLOCK MARKET
SUPER MARKET
Through their superior information ,logistical systems and buying power deliver
good service and immense volumes of products at attractive prices.
CHAIN OUTLETS
Having more than one key outlet all across with a single control unit and central
purchasing strategy
59
architecture, has five power brands under its portfolio with distinct
offerings Vatika, a herbal beauty brand with products like Vatika
Shampoo, Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with
products like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with
Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and has
products like Real Fruit juices, Lemoneez; and the recently launched Anmol which is a
cross category value-for-money brand. Dabur has decided to take two of its five power
brands Dabur and Vatika global through its Dubai-based arm Dabur India .
And the Big B and Rani Mukherjee will help the company get a toehold in the worlds
herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore FMCG major
has also decided to give a new impetus to its international food supplement brand,
Nature4u, by now launching it in the burgeoning Gulf market. It is currently being sold
only in UK and EU. We have drawn an aggressive plan to launch Dabur and Vatika
globally, starting from the Middle East , GCC and SAARC countries. We expect our
market share to double within two years in the 10 countries we will focus on initially,
said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind markets for Dabur
right now are UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan ,
Egypt
and
Nigeria.
To develop Dabur International as its major overseas hub to service all markets except
Russia , the company is setting up a new plant which is expected to be ready in a
year. Dabur International already has a plant in Jabel Ali to both package products
sourced from India and produce some local variants. Dabur India has been selling its
product in Dubai and GCC countries since 1992 through a franchise Redrock
Limited. The company had acquired this franchise last year at investments of about
USD five million.
presence in several product categories ranging from hair care to oral care to home care
to health supplements to juices and even soaps, it is also true that in some of these
60
segments its market share is very low and trails the market leader by a huge margin.
For instance, Dabur only has a 6% market share in shampoos against HLLs 53%, and
a 12% share in the oral care segment against Colgates 46%.
Company officials believe that low market share means that there are substantial
growth opportunities even if these categories do not grow. Our market shares are low
in some segments. This gives us opportunity to penetrate these categories, says Mr
Narang.
Drivers of growth: For the future, Dabur has identified foods, home care
products, skin care and OTC health care products as its growth engines. The
company plans to ramp up its home care business and in the food category it is looking
at expanding its Hommade range of cooking pastes and purees. In the skin care
segment, the company launched the Dabur Anmol cold cream last year and its Vatika
honey
and
saffron
soap
is
currently
under
test
launch.
Expansion in south India: Dabur is looking at expanding its business in south India,
which currently accounts for around 15% of its total sales.
61
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.
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 useda)
b)
c)
d)
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.
62
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 Dabur Chyawanprash
1.
Sample size for customers were 150 in number and the universe comprised of all
the consumers within the geographical region of Ghaziabad and Sahibabad.
2.
Sample size for retailers were 40 in number and the universe comprised of all the
consumers within the geographical region of Ghaziabad and Sahibabad.
3)
Sample size for Distributor & Wholesaler were four in number & the universe
comprised of all the consumers within the geographical region of Ghaziabad and
Sahibabad.
No other field work was employed to gather the information. The questionnaire 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.
63
DATA ANALYSIS
DABUR CHYAWANPRASH
1. AWARNESS LEVEL
100
90
80
70
60
50
40
30
20
10
0
PERCENTAGE
ZANDU
HIM ANI
BAIDYANATH
DABUR
2. PREFERRED BRAND
60
50
40
PERCENTAGE
30
20
10
0
ZANDU
HIMANI
BAIDYANATH
64
DABUR
3.SATISFACTION LEVEL
5
4.5
4
3.5
3
RATING(1-LOW 5-HIGH)
2.5
2
1.5
1
0.5
0
ZANDU
HIM ANI
BAIDYANATH
DABUR
70
60
50
40
PERCENTAGE
30
20
10
0
HEALTH
BRAND LOYALTY
TASTE
65
PRICE
66
80
70
60
50
PERCENTAGE
40
30
20
10
0
TV
INTERNET
WOM
PERCENTAGE
15
10
5
0
PURCHASE ANOTHER BRANDWAIT
BUY SUBSTITUTE
WHATEVER OFFERED BY RETAILER
67
50
45
40
35
30
PERCENTAGE
25
20
15
10
5
0
1 Kg
500 gm
250 gm
40
35
30
25
PERCENTAGE
20
15
10
5
0
AVAILABILITY
PRICE
FAMILY SIZE
68
STORAGE
9. FREQUENCY OF PURCHARE
60
50
40
PERCENTAGE
30
20
10
0
ONE MONTH
TWO MONTHS
69
SIX MONTHS
100
90
80
70
60
50
40
30
20
10
0
PERCENTAGE
ZANDU
HIMANI
BAIDYANATH
DABUR
80
70
60
50
40
30
20
10
0
RATING(1-LOW 5-HIGH)
ZANDU
HIM ANI
BAIDYANATH
70
DABUR
60
50
40
PERCENTAGE
30
20
10
0
brand loyalty
price
availability
no reason
70
60
50
40
PERCENTAGE
30
20
10
0
high income
middle income
low income
71
60
50
40
PERCENTAGE
30
20
10
0
price discount
others
70
60
50
40
PERCENTAGE
30
20
10
0
price discount
72
others
70
60
50
PERCENTAGE
40
30
20
10
0
yes
no
8.Doesch
ange in price affect their preferences?
60
50
40
PERCENTAGE
30
20
10
0
yes
no
73
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 consumers patriotic love for tea and coffee is unfair.
Chyawanprash are yet to establish their supplement use in the average
household herein 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 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.
As the strategies of the companies keeps on changing, be it in
Chyawanprash industry, a company has to create perceptions and cover
74
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
75
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 is not more of a medicine but as something
which is necessary for health.
76
BIBLIOGRAPHY
Books:
Marketing Management:Twelfth Edition Philip Kotler & Kevin Lane
Keller
Websites:
www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
77
www.blonnet.com
www.superbrandsindia.com
78
CONSUMER QUESTIONAIRE-DABUR
CHYAWANPRASH
Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for chawanprash.
Any information provided by you will strictly be used for Academic Purpose.
1.Which brands of Chawanprash are you aware of?
A. Zandu
B. Himani
C. Baidyanath
D. Dabur
2.Which brand of Chawanprash do you use?
A. Zandu
B. Himani
C. Baidyanath
D. Dabur
3.Where would you rate your brand on a scale of 1 5 (5 being highest)?
A. 1
B. 2
C. 3
D. 4
E. 5
79
4.What are the primary reasons for which you use this particular brand?
A. Health
B. Brand Loyalty
C. Taste
D. Price
5.How did you get to hear about this brand?
A. TV
B. Internet
C. Word of Mouth
D. Print
6.If your brand is not available you would..?
A. Purchase another brand
B. Wait for it to be available
C. Go for a substitute
D. Buy what is offered by the retailer
7.Which pack size do you prefer?
A. 1 kg
B. 500 gm
C. 250 gm
8.On what parameters do you choose this pack size?
A. Availability
B. Price
C. Family size
D. Storage
80
B.
81
82
83