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SHRI RAMSWAROOP MEMORIAL

UNIVERSITY
LUCKNOW-DEVA ROAD, UTTAR PRADESH

SUMMER TRAINING REPORT


ON

VISUAL DISPLAY OF DABUR CONSUMER HEALTH DIVISION


SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
TO
SHRI RAMSWAROOP MEMORIAL UNVERSITY
2016-17

Under Guidance of:


Submitted by:
Mr. Abhishek Kulshreshta
AMAN
UPADHYAY
Institute of Management, Commerce & Economics
Roll No.201410702110042
SRMU, Lucknow.

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my


guide Mr. Abhishek Kulshreshta for his exemplary guidance, monitoring and
constant encouragement throughout the course of this project. The blessings, help
and guidance given by him time to time shall carry me a long way in the journey of
life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to Naresh Sharma,
Area Manger, for his cordial support, valuable information and guidance, which
helped me in completing this task through various stages.
I am also obliged to staff members of Dabur for the valuable information provided
by them in their respective fields. I am grateful for their cooperation during the
period of my summer training.
Finally, I am thankful to almighty, my parents, brothers, sisters and friends for their
consistent encouragement without which this project would have not been
completed.

AMAN UPADHYAY
201410702110042

CERTIFICATE OF ORIGINALITY
(To be filled in by the student in his / her handwriting)
I_____________________________________ Roll No __________________of, a fulltime
bonafide student of third year of Bachelor of Business Administration (BBA) of Shri
Ramswaroop Memorial University. I hereby certify that for this project work carried out by me
at_________________________________________________ the

report

submitted

in

partial fulfillment of the requirements of the programme is an original work of mine carried out
under

the

guidance

of

the

industry

mentor

___________________________________________________________________and
facultymentor_______________________________________________________and

is

not

based or reproduced from any existing work of any other person or on any earlier work
undertaken at any other time or for any other purpose, and has not been submitted anywhere else
at any time to the best of my knowledge.

(AMAN UPADHYAY)
Date:

INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS


SRMU

CERTIFICATE
This

is

to

certify

that

the

project

entitled

..

Submitted by . [Univ. Roll No. ...


] and in the partial fulfillment of the requirement for the award of the DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION of SHRI RAMSWAROOP
MEMORIAL UNIVERSITY to the best of my knowledge it is a record of students own
work carried under our supervision and guidance. The project report embodies result of
original work and the study carried out by the student and the contents do not form the
basis for the award of any other degree to the candidate or to anybody else.

(Mr. Abhishek Kulshreshta)

INSTITUTE OF MANAGEMENT, COMMERCE & ECONOMICS


SRMU

DECLARATION
I

hereby

declare

that

the

project

entitled

...

.. submitted by me in the partial fulfillment of the requirements for the


award of the degree of bachelor of Business Administration of Shri Ramswaroop
Memorial University, is a record of my own work carried under the supervision and
guidance of ..
To the best of my knowledge this project has not been submitted to SHRI
RAMSWAROOP MEMORIAL UNIVERSITY or any other University or Institute for the
award of any degree.

AMAN UPADHYAY
University Roll. No 201410702110042

TABLE OF CONTENTS
Preface
CHAPTER I
Introduction
Objective of the study
Scope and limitations of study
Methodology: this would contain the following things:
1. Sources of data
2. Sample sizes, if any
3. Methods of data collection
4. Instrument used
5. Tools and techniques of analysis

CHAPTER II
Company Profile

CHAPTER III
Data Analysis & Findings

CHAPTER IV
Suggestion/ Recommendation

CHAPTER V
Conclusion
Bibliography
Appendix
6

PREFACE
Visual Display of Dabur Consumer Health Division in Lucknow city was
our main target so we are just focused on health product of DABUR our
main object was Health Division. It is an incredible product of DABUR &
one of the best health product of any other Aryuvedic company available in
market.

Chapter-1

1. Introduction
2. Need of study
3. Objective of study
4. Scope of study

1.1 INTRODUCTION

Dabur India Limited is a leading Indian consumer goods company with interests in
Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its
humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic
medicines company, Dabur India Ltd has come a long way today to become a
leading consumer products manufacturer in India. For the past 125 years, we have
been dedicated to providing nature-based solutions for a healthy and holistic
lifestyle.
Through our comprehensive range of products, we touch the lives of all consumers,
in all age groups, across all social boundaries. And this legacy has helped us develop
a bond of trust with our consumers. That guarantees you the best in all products
carrying the Dabur name.
1.1.1 Dabur India Ltd. - Corporate Profile
Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of US$1
Billion (over Rs 5,000 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000
Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today
Indias most trusted name and the worlds largest Ayurvedic and Natural Health
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Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over
250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship
brands with distinct brand identities -- Dabur as the Bachelor brand for natural
healthcare products, Vatika for premium personal care, Hajmola for digestives, Ral for
fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur
today operates in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 2.8 million retail outlets with a high penetration in both urban and rural
markets. Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are highly popular in
the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas
revenue today accounts for over 30% of the total turnover.The 125-year-old company,
promoted by the Burman family, had started operations in 1884 as an Ayurvedic
medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur India
Ltd has come a long way today to become one of the biggest Indian-owned consumer
goods companies with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a family-run business
to become a professionally managed enterprise. What sets Dabur apart from the crowd
is its ability to change ahead of others and to always set new standards in corporate
governance & innovation.
1.1.2Dabur At-a-Glance
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Dabur India Limited has marked its presence with 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.
Leading consumer goods company in India with a turnover of Rs. 5,283 Crore (FY12),2
major strategic business units (SBU) - Consumer Care Business and International
Business Division (IBD),2 Subsidiary Group companies - Dabur International and
NewU and several step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt
Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan),
African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield
International (UAE) and Jaquline Inc. (USA).17 ultra-modern manufacturing units
spread around the globe Products marketed in over 60 countries.Wide and deep market
penetration with 50 C&F agents, more than 5000 distributors and over 3.4 million retail
outlets all over India
Consumer Care Business adresses consumer needs across the entire FMCG
spectrum through four distinct business portfolios of Personal Care, Health
Care, Home Care & Foods.
1.1.3 Bachelor brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Ral - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral,
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Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, Dabur
Honey, Glucose, Fem and Odonil. Strategic positioning of Honey as food
product, leading to market leadership (over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65%
market share. Vatika has been the fastest growing hair care brand in the
Middle East. Hajmola tablets in command with 60% market share of digestive
tablets category. About 2.5 crore Hajmola tablets are consumed in India
every day.Leader in herbal digestives with 90% market share.Consumer
Health Division (CHD) offers a range of classical Ayurvedic medicines and
Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in
modern ready-to-use formats Has more than 300 products sold through
prescriptions as well as over the counter. Division also works for promotion of
Ayurveda through organised community of traditional practitioners and
developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of
customers across different international markets, spanning Nepal, Bangladesh, the Middle
East, North & West Africa, EU and the US with its brands Dabur & Vatika

1.1.4 Core ValuesVision- "Dedicated to the health and well being of every household"
PrinciplesOwnership-This is our company. We accept personal responsibility, and accountability to meet
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business needs.
Passion for winning
We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are
determined to be the best at doing what matters most.
People Development-People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.
Consumer Focus-We have superior understanding of consumer needs and develop products to
fulfill them better.
Team Work-We work together on the principle of mutual trust & transparency in a boundary-less
organization. We are intellectually honest in advocating proposals, including recognizing risks.
Innovation-Continuous innovation in products & processes is the basis of our success.
Integrity-We are committed to the achievement of business success with integrity. We are honest
with consumers, with business partners and with each other.
1.1.5
Strategic Intent-We intend to significantly accelerate profitable growth. To do this, we will:

Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and 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 our deep knowledge
of ayurveda and herbs with modern science
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Provide our consumers with innovative products within easy reach

Build a platform to enable Dabur to become a global ayurvedic leader

Be a professionally managed employer of choice, attracting, developing and retaining


quality personnel

Be responsible citizens with a commitment to environmental protection

Provide superior returns, relative to our peer group, to our shareholders

1.1.6

Company History

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1884

Birth of Dabur

1896

Setting up a manufacturing plant

Early
Ayurvedic medicines
1900s
1919

Establishment of research laboratories

1920

Expands further

1936

Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972

Shift to Delhi
Sahibabad factory / Dabur Research &

1979
Development Centre (DRDC)
1986

Public Limited Company

1992

Joint venture with Agrolimen of Spain

1993

Cancer treatment

1994

Public issues

1995

Joint Ventures

1996

3 separate divisions

1997

Foods Division / Project STARS

1998

Professionals to manage the Company

2000

Turnover of Rs.1,000 crores

2003

Dabur demerges Pharma Business

2005

Dabur aquires Balsara

2005

Dabur announces Bonus after 12 years

2006

Dabur crosses $2 Bin market Cap, adopts


US GAAP
15

Approves FCCB/GDR/ADR up to $200


2006
million
2007

Celebrating 10 years of Real

2007

Foray into organised retail

2007

Dabur Foods Merged With Dabur India

2008

Acquires Fem Care Pharma


Dabur Red Toothpaste joins 'Billion Rupee

2009
Brand' club
2010

Dabur makes its first overseas acquisition

2011

Dabur enters professional skin care market


Dabur India acquires 30-Plus from Ajanta

2011
Pharma
Dabur crosses Billion-Dollar Turnover
2012
Mark

1.1.7 Founder and Leaders

Founding Thoughts "What is that life worth which cannot bring comfort to others"
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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 1884 to produce and 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.

1.1.8 Milestones- 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
come a long way in popularising and making easily available a whole range of products
based on the traditional science of Ayurveda. And Dabur 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... Milestones To Success
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1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia


1919 - First R&D unit established

Early1900s-Production

of

Ayurvedic

medicines

Dabur 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

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

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selling hair oil brand in India.

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.

1957 - Computerisation of operations initiated

1970-Entered

Oral

Care

&

Digestives

segment

Addressing 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

tablet

Dabur 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 & Development Centre (DRDC) set up

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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 care


Dabur establishes its leadership in health care as one of only two companies worldwide
to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research & Development
Centre (DRDC) develops an eco-friendly process to extract the drug from its plant
source

1996 - Enters foods business with the launch of Real Fruit Juice

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1996 - Real blitzkrieg


Dabur 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 mark


Dabur establishes its market leadership status by staging a turnover of Rs.1,000
crores. Across a span of over a 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 drugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry
into the highly specialised 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
crore
2003 - Dabur demerges Pharmaceuticals business

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Dabur India approved the demerger of its pharmaceuticals business from the FMCG
business into a separate company as part of plans to provider greater focus to both the
businesses. With this, Dabur India now largely comprises of the FMCG business that
include personal care products, healthcare products and Ayurvedic Specialities, while
the Pharmaceuticals business would include Allopathic, Oncology formulations and
Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of
the Pharmaceutical business.

Maintaining global standards

As a reflection of its constant efforts at achieving superior quality standards, Dabur


became the first Ayurvedic products company to get ISO 9002 certification.

Science for nature

Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary
of Dabur India, has set up fully automated greenhouses in Nepal. This scientific
landmark helps to produce saplings of rare medicinal plants that are under threat of
extinction due to ecological degradation.
2005 - Dabur aquires Balsara

As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and
Home products businesses, a leading provider of Oral Care and Household Care
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products in the Indian market, in a Rs 143-crore all-cash deal.


2005 - Dabur announces bonus after 12 years

Dabur India announced issue of 1:1 Bonus share to the shareholders of the company,
i.e. one share for every one share held. The Board also proposed an increase in the
authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.
2006 - Dabur crosses $2 bln market cap, adopts US GAAP.

Dabur India crosses the $2-billion mark in market capitalisation. The company also
adopted US GAAP in line with its commitment to follow global best practices and
adopt highest standards of transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million

Moving forward on the inorganic growth path, Dabur India decides to raise up to $200
million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any
other securities.The capital raised will be used to fund Dabur's aggressive growth
ambitions and acquisition plans in India and abroad.
2007 - Celebrating 10 years of Real

Dabur Foods unveiled the new packaging and design for Real at the completion of 10
years of the brand. The new refined modern look depicts the natural goodness of the
juice from freshly plucked fruits.

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2007 - Foray into organised retail

Dabur India announced its foray into the organised retail business through a whollyowned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to
establish its presence in the retail market in India with a chain of stores on the Health &
Beauty format.
2007 - Dabur Foods merged with Dabur India

Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with
itself to extract synergies and unlock operational efficiencies. The integration will also
help Dabur sharpen focus on the high growth business of foods and beverages, and
enter newer product categories in this space.
2008 - Acquires Fem Care Pharma

Dabur India acquires Fem Care Pharma, a leading player in the women's skin care
market. Besides an entry into the high-growth skin care market with an established
brand name FEM, this transaction also offers Dabur a strong platform to enter newer
product categories and markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club

Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red
Toothpaste crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition

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Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a
leading personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab

Dabur acquired 100% equity in Namast Laboratories LLC of the US for $100 million.
This marks Daburs entry into the fast-growing ethnic hair care products market in
U.S., Europe and Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours

Dabur launches Indias first fruit-flavoured Chyawanprash. Dabur Chyawanprash was


launched in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records

Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of
hosting the longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market

Dabur enters professional skin care market with the launch of OxyLife Professional
Facial Kit, created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal

Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com
With this, Dabur is the first Indian FMCG company to launch a dedicated online
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shopping portal for its beauty products range. The portal will be the online gateway for
consumers to know, understand, buy and gift the exclusive Dabur Uveda range of
skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma

Dabur India Ltd acquired Ajanta Pharmas over-the-counter energizer brand 30-Plus.
2011 - Dabur to enter Sri Lanka

Dabur India Ltdsets up new subsidiary in Sri Lanka Dabur Lanka (Pvt.) Ltd. The
company will establish a new export-oriented manufacturing facility for producing a
range of fruit-based beverages in Gampaha, north of Colombo.
2011 - Dabur enters Almond Hair Oil market

Dabur India Ltd launches Dabur Almond Hair Oil, a one-of-its-kind product that offers
superior nourishment for 100% damage-free hair.
2012 - Dabur crosses Billion-Dollar turnover mark

Dabur India Ltd surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal
to end the year with Net Sales of Rs 5,283.17 Crore.
1.1.9 COMPANY DETAILS

Dabur Group
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With a basket including personal care, health care and food


products, Dabur India Limited has set up subsidiary Group
Companies across the world that can manage its businesses
more efficiently.
Given the vast range of products, sourcing, production and marketing have been divested
to the group companies that conduct their operations independently:

Dabur Worldwide

27

Dabur's mission of popularizing a natural lifestyle transcends national boundaries.


Today, there is growing global awareness on alternative medicine, nature-based and
holistic lifestyles and an interest in herbal products. Dabur has been in the forefront
of popularizing this alternative way of life, marketing its products in more than 60
countries all over the world. Over the years, Dabur's overseas business has
successfully transformed from being a small operation into a multi-location business
spreading through the Middle East, North Africa, West Africa and South Asia.
Our Products Worldwide- We have spread ourselves wide and deep to be close to our
overseas consumers. Our overseas product portfolio is tailor-made to suit the needs and
aspirations of our growing consumer base in the international markets. Offices and
representatives in Europe, UK, America and Africa.A special herbal health care and

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personal care range successfully selling in markets ranging from the Middle East, Far
East, North Africa and Europe. Inroads into several European and American markets
that have good potential due to resurgence of the back-to-nature movement. Export of
Active Pharmaceutical Ingredients (APIs), manufactured under strict international
quality benchmarks, to Europe, Latin America, Africa, and other Asian countries.
Export of food and textile grade natural gums, extracted from traditional plant sources.
Partnerships & Production- Strategic partnerships with leading multinational food
and health care companies to introduce innovations in products and services. Six
modern manufacturing facilities spread across South Asia, Middle East and Africa
to optimise production by utilising local resources and the most modern technology
available.

1.1.10 Manufacturing Facilities in India-

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1.1.11 CEO OF DABUR-

Mr. Sunil Duggal took over as the Chief Executive Officer of


Dabur India Limited in June 2002, holding reins of the
organization he joined in 1995. Mr Duggal started his career as a
management trainee in Wimco Limited in 1981 after getting his
Engineering Degree (Electrical & Electronics) from BITS,
Pilani, and Business Management from IIM, Calcutta. His stint
at Wimco continued till 1994, with a break in between when he
joined Bennett Coleman & Co. Ltd for a short period. In 1994,

30

he moved to Pepsi Foods as GM,


SalesOperation.In 1995, he joined 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.
Spanning a career of over 20 years, Mr. Sunil Duggal has travelled widely across India and
handled diverse portfolios that have helped him understand the dynamics of FMCG businesses
and market trends. He is well versed in the intricacies of India's regional diversities and
consumer

needs.

Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his
official responsibilities, Mr. Duggal likes to spend time at home with his family and an
occasional round of golf.
1.1.12 Corporate Governance- 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: -Professionalization of the
board

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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

1.1.13 Corporate Citizenship- 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 organization to
promote research and welfare activities in rural areas; Promoting health and hygiene
amongst the underprivileged through the Chunni Lal Medical Trust; and Organizing
the Plant for Life programme for schoolchildren - to create environmental
awareness amongst young minds.
Our commitment to Environment- Ancient wisdom of conservation- From times
immemorial, Indian sages and men of wisdom have understood and appreciated the
value of nature and its conservation. Our ancestors recognized that if we grabbed from

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nature beyond what was healthy, it would lead to all round degradation, and even the
extinction of humanity. That is why nature was sanctified and worshipped in the form
of gods and goddesses.
Dabur upholds the tradition

Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision
of Dabur would never have been fulfilled. And that is the reason for our unfailing
commitment to ecological conservation and regeneration. We would like to follow the
principles of our ancient texts, which say: "Dehi me dadami te" - "you give me,
and I give you".
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.
Plants for Life
We have set up the "Plants for Life" project in the mountainous regions of the Himalayas.
Under the project, a high-tech greenhouse facility has been set up for developing saplings of
rare and endangered medicinal plants. Fully computer-controlled and monitored, this
greenhouse maintains the highly critical environmental parameters required for their survival.
We are also developing quality saplings of more than 20 herbs, 8 of them endangered,
33

through micro propagation.

In addition, satellite nurseries spread across mountain villages and contract cultivation
of medicinal herbs helps in maintaining the ecological balance. These measures have
also helped provide local cultivators the scientific knowledge for harvesting herbs and
a steady source of income. So that they are not forced to exploit the environment to
earn a livelihood.

Living a Green Heritage


These are significant stepsthat can contribute to a better world for coming generations. To
whom we would like to bequeath a world not bereft of nature. But full of flowering and fruit
bearing trees, animals, birds and humans living in good health and complete harmony.
1.1.14 IT Initiatives

At Dabur India Limited, knowledge and technology are key resources which have
helped the Company achieve higher levels of excellence and efficiency. Towards
this overall goal of technology-driven performance, Dabur is utilizing Information
Technology in a big way. This will help in integrating a vast distribution system
spread all over India and across the world. It will also cut down costs and increase
profitability.
Our major IT Initiatives

34

Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April
2006 for all business units. Implementation of a country wide new WAN Infrastructure for
running centralized ERP system.
Setting up of new Data Centre at KCO Head Office.
Extension of Reach System to distributors for capturing Secondary Sales Data.
Roll out of IT services to new plants and CFAs.

Future Challenges
Forward Integration of SAP with Distributors and Stockists.
Backward Integration of SAP with Suppliers.
Implementation of new POS system at Stockist point and integration with SAP-ERP.
Implementation of SAP HR and payroll.
SAP Roll-out to DNPL and other new businesses.
1.1.15 Sustainability ReportAt Dabur, environment and nature is the lifeline of our business. With a portfolio of
Ayurveda and nature-based products, conservation of nature & natural resources is deep
rooted in our organizational DNA, and in every aspect of our ever-growing business. We,
at Dabur, have not merely incorporated the concept of sustainability into the core of our
35

business but have, in fact, expanded it to encompass our aspirations and responsibilities to
the society and to the environment. It is this concept that inspires us to optimize our business
performance to tackle the new and growing challenges of environment and technology.It is a
concept on which we aspire to build an organization that will continue to increase value for
all our stakeholders for generations to come, through intensive focus on Conservation of
Energy and Technology Absorption, along with Health, Safety and Environment
Protection.

1.1.16 Conservation of Energy-Dabur has been undertaking a host of energy


conservation measures. Successful implementation of various energy conservation
projects have resulted in a 13.8% reduction in the Companys energy bill in the
2008-09 fiscal alone. What was noteworthy was the fact that this reduction has come
despite an 8-9% volume increase in manufacturing, and an average 11.7% increase in
cost of key input fuels.The host of measures key among them being use of bio-fuels
in boilers, generation of biogas and installation of energy efficient equipment helped
lower the cost of production, besides reduce effluent and improve hygiene conditions
& productivity.

36

1.1.17 Technology Absorption


Dabur has also made continuous efforts towards technology absorption and
innovation, which have contributed towards preserving natural resources.
These efforts include:
Minimum use of water in process by pre-concentration of herbal extract and reduction in
concentration time. Uniform heating in VTDs by hot water as against steam earlier, resulting
in 30% reduction in bulk wastage by using non-stick coating and formulation change.
Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system
for DM water, reutilization of waste water from pump seal cooling and RO reject wastewater management. Introduction of water efficient CIP system with recycling of water in fruit
juice manufacturing. Development of in-house technology to convert fruit waste into organic
manure by using the culture Lactobacilus burchi.The Company has achieved a host of

37

significant benefits in terms of product improvement, cost reduction, product development,


import substitution, cleaner environment and waste disposal, amongst others.

1.1.18 Health Safety & Environmental Review


Renewing the commitment to Health Safety and Environment, Dabur has formulated
a policy focusing on People, Technology and Facilities. A dedicated Safety
Management Team has also been put in place to work towards the prevention of
untoward incidents at the corporate and unit level, besides educate & motivate
employees on various aspects of Health, Safety and Environment. The Company is
also continuously monitoring its waste in adherence with the pollution control
norms. In pursuance of its commitment towards the society, efforts have also been
initiated to conserve and maintain the ground water level. The efforts include
implementation of rainwater harvesting, which has delivered encouraging results and
has put the company on the path to becoming a Water-Positive Corporation.
Dabur also initiated a Carbon Foot Print Study at the unit level with an aim to
become a carbon positive Company in years to come. At Dabur, we are committed
to sustainable development throughout our diverse operations. And, we will strive to
translate the good intentions into concrete and lasting results, contributing to the
ultimate good of the society.

38

1.1.19 PRODUCT LINE

Foods:

Real

Real Activ

Hommade

Lemoneez

Capsico

Health Care:

39

Baby Care

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

Health Supplements

Dabur Chyawanprash

Dabur Glucose D

Digestives

Hajmola Yumstick

Hajmola Mast Masala

Anardana

Hajmola

Hajmola Candy Fun2

Hajmola Candy

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

40

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


41

Hair Care Shampoo

Anmol Silky Black Shampoo

VatikaHennaConditioning Shampoo

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care:

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

DaburBinaca Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

42

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

Rural and urban potential


Rural-urban profile

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 characterized by a wellestablished distribution network, intense competition between the organized and unorganized
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.

43

The FMCG market is set to treble from US$ 14.6 billion in 2008 to US$ 33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded products. Growth is
also likely to come from consumer 'upgrading' in the matured product categories. With 200
million people expected to shift to processed and packaged food by 2010, India needs around
US$ 28 billion of investment in the food-processing industry.
India is one of the largest emerging markets, with a population of over one billion. India is
middle class base of 300 million. Around 70 per cent of the total households in India (188
million) reside in the rural areas. The total number of rural households are expected to rise from
145 million in 2007 one of the largest economies in the world in terms of purchasing power and
has a strong -08 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$ 14.5 billion in
2007-08. With growing incomes at both the rural and the urban level, the market potential is
expected to expand further.
Urban

Rural

Population 2007-08 (mn household)

53

145

Population 2009-10 (mn household)

69

153

% Distribution (2007-08)

28

72

Market (Towns/Villages)

3,768

627,000

Universe of Outlets (mn)

3.3
44

Source: Statistical Outline of India (2008-09), NCAER

An average Indian spends around 40 per cent of his income on grocery and 8 per cent 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
one of the largest FMCG markets.

Product Profile45

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 AntiDandruff 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, 2007).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).

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.

46

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, achievementdriven and confident women who were positioned as the Vatika Woman.

Positioning
Total hair Care brand: The 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
homegrown 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 offering: Vatika 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

47

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

Promotion

Product

Price

Promotion

Place

48

Product

List Price

Variety

Discount

Quality

Financing

Design

Features

Brand

Advertising

&

Channels

Promotion

Location

Public Relations

Inventory

Schemes

Sponsorships

Credit Terms

Internet
Marketing

Names

Services

49

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, kapurkachari, harar, and ugdha 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 blue packs as analogous of pure coconut oils, Vatika broke the norm with its
50

white and green bottle with a mushroom cap. The green-and-white colors, 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 in:
Bottles

75 ml, 150 ml, 300 ml

Flip cans

150 ml, 300 ml

Flip 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/QUALITY MATRIX
Price
Quality

High

Middle

Luxury

Ideal

Segment

Penetration

Low

High

For

Premiere
Offering

VATIKA

51

Overpriced

Average

Middle

Bargain
Make

Low

Real

The

Sale and Run

Unhappy

Cheap

Customers

Goods

PLACE
Vatika 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:
52

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 realized early that, from the perspective of brand building, it was vital to invest
in this brand.
Vatika Hair Oils first promotion: It focused 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, alma 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.

53

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.

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

54

Chyawanprash user connects with the Youth. These two ads complement 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.

55

MARKETING MIX FOR DABUR VATIKA HAIR OIL AND DABUR CHYAWANPRASH

MARKETING MIX OF DABUR CHYAWANPRASH


Dabur 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

56

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

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 immune-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.

57

Ingredients of Dabur Chyawanprash


Vishwast
Amla,

Ashwagandha,

Hareetaki,

Dashmul,

Ghrit

health

beneficial

and

several

other herbs and herbal extracts.


Special
Vishwast

fortified

with

additional

herbs

like

Keshar, Akarkara etc.

Available in:
Dabur Chyawanprash is available in three sizes to cater to the needs of different types of
people.
1. One kilogram pack
2. 500 gram pack
3. 250 gram pack

58

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.175.00

500gms

Rs.100.00

250gms

Rs. 55.00

PRICE/QUALITY MATRIX
Price
Quality

High

Middle

Luxury

Ideal

Segment

Penetration

Low

For

Premiere
Offering

High
DABUR
CHYAWANPRASH

Overpriced

Average

Middle

Bargain
Make

Low

Real

The

Sale and Run

Unhappy

Cheap

Customers

Goods

59

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:

COMPETITOR ANALYSIS OF VATIKA


The key competitors 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%.

60

We have tried to analyse the competition for Dabur in the Hair Care segment as

follows:
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.
61

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.
Maricos 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.

COMPETITOR ANALYSIS OF CHYAWANPRASH

62

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

63

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 18 thcentury 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

64

OBJECTIVE OF THE STUDYS


Following are the major objectives of study: 1. To study the Marketing Strategy of Dabur Consumer Health Products
2. To study the Consumer, Buying behavior.
3. To study the problems faced by Dabur.

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)

65

Chapter-2

1. Research Methodology
2. Limitation

66

2.1RESEARCH METHODOLOGY
Marketing research is a systematic problem analysis, model building and fact
finding for the purpose of important decision making and control in the
marketing of goods and services.

- Phillip Kotler
As the purpose of the project report is to analyze 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. I handed distributors & wholesalers
and it personally to the respondents to be analyzed. The questionnaire method was useda)

To get first and relevant and unbiased information

67

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.

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.

68

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
The statistical technique such a Pi-chart and percentages were used in analysing and
interpreting the data.

2.2 LIMITATIONS
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 cant avoid it at any cost.
a) Due to lack of time (i.e., Two months) it is not possible to reach all respondents.
69

b) The lack of availability of time on the respondents part.


c) Some respondents was biased.
d) Unwillingness of the respondents.

Chapter III

1.Descriptive work on subtopic of study


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3.1 WHAT IS A MARKETING STRATEGY AND MARKETING PLAN?


A MARKETING STRATEGY in general sets a target market and a marketing mix. It is
a "big picture" of what a company will do in some market in order to gain a competitive
advantage. A MARKETING PLAN is a detailed breakdown of your marketing strategy.
It is a written statement of a marketing strategy with the time - related details as well as
the marketing budget for carrying out the strategy.
It should spell out the following in detail: What marketing mix will be offered?

To who (target market);

For how long;

What company resources will be needed at what rate;


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What results are expected (sales and profits).


DEVELOP A MARKETING STRATEGY
By now you should already:
have decided on the nature of your business and you know that your business idea is
feasible;
have also identified your market and decided on your target market;
know what the needs of your customers are and you have identified and assessed
your
Competition.
Now you need to decide on:
the Product and Service to offer your customers;
how you will make your Products available to customers;

how you will communicate the benefits of your Products and persuade customers to
buy
them;
the price you will charge.
These four decision variables are the ingredients of the so-called marketing mix. Your
task is to create these elements effectively in order to market your product/service to the
target market in an optimal way.

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CREATE AN EFFECTIVE MARKETING MIX


The MARKETING MIX consists of all the controllable variables the company puts
together to satisfy its target market. A typical MARKETING MIX includes decisions
regarding the product, the price of the product, how to promote the product and how to
get the product to the right customer at the right time and place.
All these variables are controllable elements in the marketing mix and can be reduced to
four basic ones, each starting with a P (also known as the four Ps):
Product.
Place.
Price.
Promotion.
The four Ps are those factors that you can control directly, for example, you develop your
product, you decide how to get it to the customer, you determine the price and you choose
the promotion mix. The four Ps are, as you will realize now, with the selection of your
target market are the basic ingredients of your marketing strategy.
All four Ps are needed in a marketing mix and should therefore be tied together. When a
marketing mix is developed, all final decisions about the P's should be made. All four Ps
should be in harmony and aimed at satisfying the customer's needs in an optimum way.
You do have control over the marketing mix and can vary it to suit the needs of your
customers and the resources of your business. Customers are continuously matching their
needs with the products offered by you and your competitors.

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You should now know your target market and the needs of your potential customers.
From analyzing your competitors, you can identify what they offer the target consumer
through their marketing mixes. This determines what your marketing mix and your
competitive advantage will be. All of the marketing mix elements must reinforce the
image of the product or service that the business portrays to the potential customer.
Lets discuss each P in the marketing mix in more detail.

FOCUS ON THE PRODUCT


This area is concerned with developing the right product for the target market. This
offering may involve a physical product, a service, or a blend of both. Remember that a
product is not limited to a physical good. The important thing is that your product and/or
service should satisfy a specific customer need.
At the most fundamental level we normally talk about the core product. The core product
answers the question "what is the buyer really buying?" The woman buying a camera is
not buying a mechanical box, she is buying the opportunity to take photo's, when she
want to have and keep forms of "immortality" or precious moments. The marketers' job is
to sell these core benefits of the product or service.
Branding means the use of a name, term, symbol, design, or a combination of these, to
identify a product. It includes the use of brand names, trademarks, and practically all
other means of product identification. A brand name is a word, letter, or a group of words
or letters. Examples include Nike, IBM, and Kellogg's. Trademark is a legal term and
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includes only those words, symbols, or marks that are legally registered for use by a
single company.
Brand promotion has advantages for sellers as well as for customers. A good brand name
speeds up shopping for the customer, if the customer can immediately recognize the
product, and it will reduce the seller's selling time and effort. When customers repeatedly
buy by brand, the seller is protected against competition from other companies. Good
brands can improve the company's image, and thus speed up acceptance of new products
marketed under the same company name.
Packaging involves promoting and protecting the product. This can be important to both
sellers and customers. It can make a product more convenient to use or store. It can
prevent spoiling or damage. Good packaging makes products easier to identify and
promotes the brand at the point of sale and even in use.
In addition to branding and packaging if the formal product is a physical object, the
market may recognize it as having characteristics like a quality feel, specific features, as
well as styling. If it is a service, it may have some or all of these facets in an analogous
manner.
The total product can also consist of elements like free delivery, installation, warranties,
services, maintenance systems, customer advice, financing and other things that
customers perceived to be of value.
MAKE YOUR DECISIONS ON THE PLACE ELEMENT OF THE MARKETING
MIX

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Place is concerned with all the decisions involved in getting the right product to the target
market's environment. A product isn't of much use to a customer if it's not available
where and when it is wanted, or needed. A product reaches its target market through a
channel of distribution - any series of companies or individuals, from producer to final
user/consumer. Sometimes a channel system is quite short. It may run directly from a
product to a final user. This is especially common in business markets and the marketing
of services. Often a channel system is more complex and has levels, which involves
different middlemen and specialists.
A zero-level channel, often called a direct marketing channel, consists of a manufacturer
selling directly to a consumer. The choice of the level channel to use will be based on the
competitive advantage, offered by this level. For example, an apple farmer may choose a
zero-level channel by inviting the public to come and pick their own apples at a much
lower price than buying it at a shop.
A two-level channel, for example, contains two intermediaries. In consumer markets,
they are typically a wholesaler and a retailer. In industrial markets, they could be sales
agents and wholesalers and in the service market, only sales agents could be necessary.
Distribution channels could also be other than the abovementioned. For example, the
Internet is an excellent distribution channel for selling information. A comedian can also
distribute his services via the TV to his or her target audience.
Part of the place decision is also the layout of a store or shop. Layout is the arrangement
and display of merchandise. A retailer's success depends on a well - designed floor

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display. It should pull customers into the shop, make it easy for them to locate
merchandise, compare price, quality, and features, and ultimately buy.
PRICE
In setting a price for your product, you must consider competition in the target market,
and the cost of the total marketing mix. You must also estimate customer reaction to
possible prices.
Furthermore, you also should know current competitor practices such as markups,
discounts, and other terms of sale. You must be aware of legal restrictions on pricing. If
customers won't accept the price, all your planning effort will be wasted.
Consider what the customer is willing to pay and what the customer is likely to expect for
that price. Ask yourself whether the customer feel that he/she is getting value for money
at that price? Remember it is the customer's perception of value for money that counts,
not yours.
You must set the price high enough to cover costs and earn a reasonable profit, but low
enough to attract customers and generate adequate sales volume. The right price today
may be completely inappropriate tomorrow. The reason for this: Ever changing market
conditions.
For many small business people non-price competition - focusing on factors other than
price - is a more effective strategy than trying to beat larger competitors in a price war.
Non-price competition factors are: free trial offers, free delivery, lengthy warranties,
money-back guarantees, allowing for bargaining, stressing durability, quality, reputation,
or special features.
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The pricing policy of a business also offers important information about its overall image.
The prices charged at ladies' clothing boutique reflect a completely different image from
those charged by a chain store. High prices for some products frequently convey the idea
of quality, prestige, and uniqueness to the customer.
Competitors' prices can have a dramatic impact on your sale. You should make it a habit
to monitor your rivals' prices, especially on identical items. The following two factors are
vital to studying the effects of competition on your pricing policies: location of
competitors, and the nature of competing products.
Without the advantage of a unique business image - quality of goods sold, number of
services provided, convenient location, favorable credit terms - you will have to match
local competitors' prices or lose sales. You also have to recognize which products are
substitutes for those you sell and then strive to keep your prices in line with them.
Effective Techniques you can use when Pricing a New Product
In the initial setting of a product's price, you must try to achieve three objectives:
* Getting the product accepted.
* Maintaining market share as competition grows.
* Earning a profit.
You have three strategies to choose from:
Penetration: The idea is to gain quick acceptance and extensive distribution in the
market. You introduce your product at a low price. The low profit margins may
discourage other potential competitors from entering the market with similar
products.
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Skimming: The idea is to set a price well above the total unit cost and to promote
the product heavily in order to appeal to the segment of the market that isn't
sensitive to price. This technique often reinforces the unique, prestigious image of
a shop and projects a quality picture of the product.
high price until technological advancements enable you to lower your costs. The art is
to reduce the product's price sooner than that of your its competitors. Computer
price declines are a good example of this technique.
Setting the Price
In this section, we will explain the process of setting the price of your product/service, by the use
of two case studies. The one is for retailers and the other for manufacturers.

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Chapter IV

1.

Data Analysis & Interpretation

80

4.1 Data Analysis & Interpretation


CUSTOMER SURVEY RESULTS-DABUR VATIKA
AWARNESS LEVEL

100
80
60
40
20
0

PERCENTAGE

INTERPRETATION-It was observed that 90% customers award about the dabur vatika
hair oil.
PREFERRED BRAND

81

40
35
30
25
20
15
10
5
0

PERCENTAGE

INTERPRETATION- It was observed that 30% customers preferred the dabur vatika among
the wide range of hair oil.

SATISFACTION LEVEL
4
3.5
3
2.5
2
1.5
1
0.5
0

RATING(1-LOW 5-HIGH)

INTERPRETATION-It was observed that the satisfaction levels are high about the quality
of the vatika hair oil.
REASON TO BUY THE PREFFERED BRAND

82

45
40
35
30
25
20
15
10
5
0

PERCENTAGE

INTERPRETATION
It was observed that the reason to buy vatika hair oil is non-sticky 45%, brand loyalty 20%
fragrance 10% & price 30%.

UNAVAILABILITY OF PREFERRED BRAND


45
40
35
30
25
20
15
10
5
0
PERCENTAGE

INTERPRETATION

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It was observed that 25% customers could wait in case of unavailability the dabur vatika
hair oil.
PREFERRED PACK SIZE

60
50
40
PERCENTAGE

30
20
10
0
75ml

150 ml

300 ml

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.

REASON TO SELECT PREFERRED PACK SIZE

40
35
30
25
20
15
10
5
0

PERCENTAGE

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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

70
60
50
40

PERCENTAGE

30
20
10
0
15 DAYS

ONE M ONTH TWO M ONTHS

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.
RETAIL SURVEY RESULTS
DABUR VATIKA
1. Which brands of Hair Oil do you stock?

85

80
70
60
50
40
30
20
10
0

PERCENTAGE

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?

50
40
30
PERCENTAGE

20
10
0
marico

hll

karrpikeo karpin vatika

INTERPRETATION
It was observed that 35% of total customers mostly preferred the dabur vatika hair oil.

3. According to you what are the reasons for customers preferences?

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50
45
40
35
30
25
20
15
10
5
0

PERCENTAGE

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?

50
40
30
20

PERCENTAGE

10
0
high income
middle income
low income

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?

40
35
30
25
PERCENTAGE

20
15
10
5
0

price discount buy one get one

others

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?

60
50
40
30
20
10
0

PERCENTAGE

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?

60
50
40
PERCENTAGE

30
20
10
0
ye s

no

INTERPRETATION
It was observed that advertisings have an affect on the consumers preference yes40% and No 60%.
8.Does a change in price affect their preferences

60
50
40
PERCENTAGE

30
20
10
0
yes

no

INTERPRETATION

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It was observed that price changes might be affected the sales by

55%.

Chapter v

1. Conclusion & Suggestion

90

91

5.1 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
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 enjoy 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. 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
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that target Market of Chyawanprash want quality benefit rather than 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.

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5.2 Suggestion
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.

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More initiatives like Dabur ki Deewar

to

increase brand visibility. It is an initiative

to

occupy shelf space.

Chapter VI

1.Bibliography

95

5.1 BIBLIOGRAPHY

BOOKS:
1. Philip Kotlar, Marketing Management ; Analysis Planning & Control; Prentice Hall, 9th
Edition

2. Saxena Ranjan, Marketing Management; TATA Mcgraw Hill, 4th Edition, 2000.

WEBSITES:

WWW.Dabur.com

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Chapter VII

1. Appendices

97

7.2 Appendices
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
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Hair And Care

Dabur Vatika

3.Where would you rate your brand on a scale of 1 5 (5 being highest)?

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
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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

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10. Are you satisfied with your brand?

Yes

No

Personal Information: Age:


Location:
Income (per month):
(1) Rs. 1,000 Rs. 10,000

(2) Rs. 10,000 Rs. 30,000

(3) Rs. 30,000 Rs. 50,000

(4) Above Rs. 50,00

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