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Summer Training Project Report

On
“topic name”
Submitted for the partial fulfillment of the requirement for the award of Master of Business
Administration (MBA) degree from Dr. A.P.J. Abdul Kalam Technical University, Uttar
Pradesh, Lucknow
Submitted By:
“Harsh Saxsena”
MBA III Semester
“1702970048”
Under the guidance of
“Mr. h”
2018-19

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Certificates

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CERTIFICATE OF THE HoD
To whom it may concern

This is to certify that Mr./Ms……………….., Roll no………………., is the


student of MBA III semester and has successfully completed his/her project on
“…………………………………………………………”

Date. HOD

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CERTIFICATE FROM THE COMPANY
Company Logo

To whom it may concern

This is to certify that Mr. /Ms.....……………., Roll no…………………., is the


student of MBA III semester. He/she has worked on the project titled
“……………………………………………………………………….” under my
supervision and guidance. This is an original and authenticated work done by
him/her.
I wish him/her the very best in all his/her future endeavors.

Date. Guide

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Declaration

I…………………………, Roll no………………., student of MBA III Semester of


KIET, School of Management Ghaziabad hereby declare that the project report on
“ …………………………………………………………..”, is an original and
authenticated work done by me. I further declare that it has not been submitted else
where by any other person in any of the university for the award of any degree or
diploma.

Date Name of student

Faculty Guide

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Acknowledgement

It is really a great pleasure to have this opportunity to describe the feeling of


gratitude from the core of my heart who have given their immense contribution
while preparing this project report. I convey my sincere gratitude to
_________________ for giving me the opportunity to prepare my project work on
__________________I am thankful to _______________________ for her/his
guidance during my project work and sparing her/his valuable time for the same. I
express my sincere obligation and thanks to all the Faculties of Department of
MBA for their valuable advice in guiding me at every stage in bringing out this
report.
I am also thankful to my family for their kind co-operation which made my take
easy.

Name:

Roll No:

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Table of Contents
Abstract Page no.
Chapter I
• Introduction Page no
• Importance of study Page no.
• Literature review Page no.
• Objectives / Hypothesis Page no.
Chapter II
• Brief Introduction about company & its product Page
no.
• Research design/ methodology Page no.
Chapter III
• Data Analysis Page no.
• Result discussion Page no.
Chapter IV
• Conclusion and recommendations Page no.
• Suggestions for future research Page no.
• Limitations of the study Page no.
Appendix
• Bibliography Page no.
• Table and Chart Page no.
• Questionnaire Page no.

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INTRODUCTION
OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in


the economy with a total market size in excess of US$
13.1 billion. It has a strong MNC presence and is
characterised by a well-established distribution network,
intense competition between the organised and
unorganised segments and low operational cost.
Availability of key raw materials, cheaper labour costs and
presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 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 one of the largest economies in the world in terms of purchasing power
and has a strong middle class base of 300 million.Around 70 per cent of the total

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households in India (188 million) resides in the rural areas. The total number of
rural households are expected to rise from 135 million in 2001-02 to 153 million
in 2009-10. This presents the largest potential market in the world. The annual
size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-
02. With growing incomes at both the rural and the urban level, the market
potential is expected to expand further.

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Rural and urban potential

Rural-urban profile

Urban Rural

Population 2001-02 (mn household) 53 135


Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3

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

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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 India’s top brands. Its brands
are built on the foundation of trust that a Dabur offering will never cause one harm.
The trust levels that this brand enjoys are phenomenally high. While Ries and
Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The
answer is fairly simple, it stands for India’s fourth largest fast moving consumer
goods company that both consumers and trade respect and trust unequivocally, and
which has an annual turn-over of over Rs 15 billion.
The company has kept an eye on new generations of customers with a range of
products that cater to a modern lifestyle, while managing not to alienate earlier
generations of loyal customers.
Dabur is an investor friendly brand as its financial performance shows. There is an abundance of
information for its investors and prospective information including a daily update on the share
price (something that very few Indian brands do). There’s a great sense of responsibility for
investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its
constituents and it adds to the sense of trust for the brand overall.

B.

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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.

 Leading consumer goods company in India with a turnover of Rs.2233.72


Crore (FY07)

 2 major strategic business units (SBU) - Consumer Care Division (CCD)


and Consumer Health Division (CHD)

 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur


International and 3 step down subsidiaries of Dabur International - Asian
Consumer Care in Bangladesh, African Consumer Care in Nigeria and
Dabur Egypt.

 13 ultra-modern manufacturing units spread around the globe

 Products marketed in over 50 countries

 Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India

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C.

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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
Foundation
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
Dabur crosses $2 Bin market Cap, adopts
2006
US GAAP
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

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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

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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 The mission continues...
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.

E.

"Dedicated to the health and well being of every household"

This is our company. We accept personal responsibility, and accountability to


meet business needs.

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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 are our most important asset. We add value through result driven
training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products to


fulfill them better.

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.

Continuous innovation in products & processes is the basis of our success.

We are committed to the achievement of business success with integrity. We


are honest with consumers, with business partners and with each other.

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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.
18 Incorporated

1940 - Personal care through Ayurveda


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:

Vice-
Chairman Chairman
Dr. Anand Mr. Amit
Burman Burman

Whole Time Directors

Mr. P.D. Narang Mr. Sunil Mr. Pradip Burman


Duggal

Non Whole Time Promoters, Directors

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Mr. Mohit Burman

Independent Directors

His Dr. S. Narayan


Mr. P N Mr. R C
Highness
Vijay Bhargava
Maharaja

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Sunil Duggal took over as the Chief Executive Officer
of Dabur India Limited in June 2002, holding reins of
the organisation 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
Sunil Duggal Business Management from IIM, Calcutta. His stint at
Chief Executive Officer Wimco continued till 1994, with a break in between
Dabur India Limited when he joined Bennett
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

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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, 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.

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H.

Good corporate governance and transparency in actions of the management is key


to a strong bond of trust with the Company’s 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

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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.

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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 recognised that
if we grabbed from 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

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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, 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 steps that 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.

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Corporate Office

Kaushambi
Ghaziabad - 201010
Uttar Pradesh, India
Tel:
+91 (0120) 3982000 (30
Lines)
+91 (0120) 3001000 (30
Lines)

Kaushambi Corporate
Office

Registered Office

8/3, Asaf Ali Road,


New Delhi – 110 002
Tel: +91 (011) 23253488

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K.

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DABUR WORLD WIDE

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


there is global awareness of alternative medicine, nature-based and holistic lifestyles and
an interest in herbal products. Dabur has been in the forefront of popularising this
alternative way of life, marketing its products in more than 50 countries all over the
world.

Our products World Wide

We have spread ourselves wide and deep to be in close touch with our overseas
consumers.

 Offices and representatives in Europe, America and Africa ;


 A special herbal health care and personal care range successfully selling in
markets of the Middle East, Far East and several European countries.
 Inroads into 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

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sources.

Partnerships and Production

 Strategic partnerships with leading multinational food and health care


companies to introduce innovations in products and services.
 Manufacturing facilities spread across 3 overseas locations to optimise production
by utilising local resources and the most modern technology available.

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M. PRODUCT LINE

Foods

 Real
 Real Activ
 Hommade
 Lemoneez
 Capsico

Health Care

Baby Care

 Dabur Lal Tail


 Dabur Baby Olive Oil
 Dabur Janma Ghunti

Health Supplements

 Dabur Chyawanprash
 Dabur Glucose D

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Digestives
Hajmola Yumstick
 Hajmola Mast Masala
 Anardana
 Hajmola
 Hajmola Candy
 Hajmola Candy Fun2
 Pudin Hara (Liquid and Pearls)
 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

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Personal Care

Hair Care Oil

 Amla Hair Oil


 Amla Lite Hair Oil
 Vatika Hair Oil
 Anmol Sarson Amla

Hair Care Shampoo

 Anmol Silky Black Shampoo


 Vatika Henna Conditioning Shampoo
 Vatika AntiDandruff Shampoo
 Anmol Natural Shine Shampoo

Oral Care

 Dabur Red Gel


 Dabur Red Toothpaste
 Babool Toothpaste
 Dabur Lal Dant Manjan
 Dabur Binaca Toothbrush

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Skin Care

 Gulabari
 Vatika Fairness Face Pack

Ayurvedic Specialities

 Ayurveda
 Ayurveda Vikas

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N.

Dabur has been ranked Hajmola has been


Hajmola, one of the
amongst India's Most ranked 34th in India’s
strongest brands in
Innovative Companies by a 100 Most Valuable
Dabur's portfolio, has
Business Today-Monitor Brands list
been listed among
Group survey
the Top 18 Iconic
Brands in India that
have stood the test of
Dabur Amongst Top Three Most time.
Dabur Real Bags Gold In Reader's
Respected FMCG Companies Digest Trusted Brand Awards
Dabur Figures In Top Great Place To
Work 2006 List

Dabur India’s fruit juice Three Dabur brands Hajmola moves up


brand Réal awarded the -- Hajmola, Dabur 11 spots to take the
Reader’s Digest Gold Amla and Vatika -- 34th position among
Trusted Brand Award 2008 35 in the
have debuted India's Top 100 Most
in the food & beverages Economic Times Valuable Brands of
category Brand Equity's Most 2008, released by
5. SWOT ANALYSIS OF DABUR

STRENGTHS WEAKNESS
 Strong presence in well defined  Seasonal Demand( like
niches( like value added Hair Oil chyawanprash in winter and
and Ayurveda specialities) Vatika not in winter)
 Core knowledge of Ayurveda as  Low Penetration(Chyawanprash)
competitive advantage  High price(Vatika)
 Strong Brand Image  Limited differentiation (Vatika)
 Product Development Strength  Unbranded players account for
 Strong Distribution Network the 2/3rd of the total
 Extensive Supply Chain market(Vatika)
 IT Initiatives
 R & D – a key strength

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OPPORTUNITIES THREATS
 Untapped Market(Chyawanprash)  Existing Competition( like
 Market Development Himani, baidyanath and Zandu
 for Dabur Chyawanprash and

 Export opportunities. Marico,Keo Karpin, HLL and

 Innovation Bajaj for Vatika Hair Oil)

 Increasing income level of the  New Entrants

middle class  Threat from substitutes (like

 Creating additional consumption Bryllcream for Vatika hair oil)

pattern

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The Marketing Mix

Product Place

Target
Market

Price Promotion

The firm attempts to generate a positive response in the target market by blending
these four marketing mix variables in an optimal manner.

A Summary Table of the Marketing Mix


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The following table summarizes the marketing mix decisions, including a list of
some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion


Functionality List price Channel members Advertising

Appearance Discounts Channel Personal selling


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

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DABUR FOODS SELLING PROCESS

 Dabur food process of selling starts from stockiest.

 C&FA dose not have any process to play in the process of selling of dabur
foods products. They are just Clearing & Forwarding Agents they store the
manufacturing products and then supply it to stockiest.

 Stockiest pay the money to dabur foods through demand draft.

 Stockiest further sells the products to retailers.

 Retailer finally sells the products to consumers.


MARKETING HOW DABUR FOODS IS USING MIX
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.

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Service/Support: Dabur foods provide full support to its stockiest, retailers and
consumers, what so ever the problem is

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.

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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.

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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)

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This dysfunctional behavior is encouraged by:
Incentives of salespeople to increase their total number of sales, especially
where retailers keep track of sales or offer commission-based salaries
 Incentives from the manufactures of products or the companies of service
providers to salespeople to sell their products where other similar products
offered by competitors are offered
 The incentive to sell a customer a product that is in need of being cleared
out, despite the fact that a customer may be better to wait for the new
product

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B.

Channel Of Distributions

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A Stockist B Stockist C

Retailers Retailers Retailers Retailers Retailers Retailers

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CONSUMERS
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.

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Supply Chain Management:

Supply chain management starts before physical distribution: it involves procuring


the right inputs (raw materials, components and capital equipment), converting
them into finished products and dispatching them to the final destinations. The
supply chain perspective can help identify superior suppliers and distributors and
help them improve productivity, which ultimately brings down the company’s
costs.
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.

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PROCUREMENT & TRANSPORT:

 Getting the raw material and packaging material requirement from the
production unit in charge

 Constant updates on the procurement of materials and transport details

 Production details and ingredient content information from the different


personnel and coordinating this activity

PACKAGING:

 Approval and coordination of the supply of packaging material to the


production unit

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CLEARING AND FORWARDING AGENTA (C&FA)

 From manufacturing plant the stock is transported or supplied to clearing


and forwarding agents.
 Clearing and Forwarding Agents is a third party and Dabur gives contract to
them, so company has nothing to do in building the relationship with them.
 Here C&FA keep or stock the goods with them.
 They charge dabur for stocking the good and even dabur don’t mind doing
so as it is a measure of cost cutting as well as there is no need for gowdowns
and maintenance.
 For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in
Mohan Nagar, here all goods which dabur foods hare kept here.

49
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 Noida Dabur has 1 stockist, and in Ghaziabad 1

50
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 Average Monthly Business


A Above 10,000
B 5,000-10,000
C Upto 5,000

 Margin of retailers is always higher than stockiest.


 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.

E. TYPES OF RETAIL MARKET

51
The retail market can be classified on the basis of magnitude of retail.

 SCATTERED MARKET

Lesser no. of outlets, and


Extensive outlets

 BLOCK MARKET

Large no. of retail outlets in chunk

 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.

52
7. THE FUTURE FOR DABUR

Tapping the world markets: Dabur India, under its new brand
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
world’s 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.

53
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.
Growing market share: While there is no doubt that Dabur now has a 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
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
HLL’s 53%, and a 12% share in the oral care segment against Colgate’s 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.
54
Objectives of the Study:-

 To understand the demand pattern of Dabur Chyawanprash products in the


rural market.
 To know the amount of household income spent on the consumption of
FMCG products of Dabur.
 To understand the image of the products in the eyes of the consumers.
 To analysis market petition strategy of Dabur for rural market.

55
RECOMMENDATIONS

 Focus on growing core brands across categories.

 Reaching out to new geographies, within Hapur area.

 Improve operational efficiencies by leveraging technology.

 Be the preferred company to meet the health and personal grooming needs of
our target consumers with safe, efficacious, natural solutions by synthesizing
the deep knowledge of ayurveda and herbs with modern science.

 Provide consumers with innovative products within easy reach.

 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur
could start a venture called Vatika hair care centre which would provide total
hair care solutions. It could have hair care experts to solve hair
problems.Services could include dandruff treatment, straightening of hair,
treatment for split ends,etc.

 Position Dabur Chyawanprash as not more of a medicine but as something


which is necessary for health.

 More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an


initiative to occupy shelf space.

56
COMPETITOR ANALYSIS

The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath,


Zandu and Himani, which together with Dabur have about 85% of India's domestic
market.

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business level
in 2003 of about 650 million dollars per year, though only a fraction of that is
involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a
market share of 61%.

We have tried to analyse the competition for Dabur in the Chyawanprash segment
as follows:

57
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%.

58
B. 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.

59
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 today’s 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

60
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 Dabur’s 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.

61
C. 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

62
Product Price Promotion Place

• Product • List Price • Advertising & • Channels


Variety • Discount Promotion • Location
• Quality • Financing • Public Relations • Inventory
• Design Schemes • Sponsorships
• Features • Credit Terms • Internet
• Brand Marketing
Names
• Services

63
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
Gooseberry) acts as an anti-oxidant and immuno-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.

Ingredients of Dabur Chyawanprash

 Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
 Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.

64
Packaging:

The figure above shows the evolution of the packaging of Dabur Chyawanprash.
Dabur continuously innovates the package and branding of its chayawanprash. It
launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first
branded Chyawanprash in India. Later Dabur came out with its new packet of
Chyawanprash with Amitabh Bachchan as their brand ambassador. It also
received “Brand Relaunch of the Year “award from IMA.

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

65
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

PRICE/QUALITY MATRIX

Price→

Quality High Middle Low


Luxury Ideal For Penetration Premiere
High Segment Offering
DABUR
CHYAWANPRASH
Overpriced Average Real
Middle Bargain

Make The Unhappy Customers Cheap


Low Sale and Goods
Run

66
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.

Dabur’s distribution network extends beyond India in the following countries as


well:

67
Distribution Network

 Central, North & South America


 Australia

 Asia

 Middle East

 North & South Africa

 East & West Europe

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 brand’s 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
consumer’s sophistication level is low. Dabur chyawanprash is advertised on print
media as well as on television.

68
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

69
Research Methodology

Data collection
Sample unit:
1) working people (including men & women) & housewife
2) college students
3) school students
4) senior citizens
5) Retailer

Sample size:
1. working people & housewife: 30%
2. college students: 25%
3. school students: 20%
4. senior citizens: 10%
5. Retailer :10%

Sampling techniques:
Judgmental sampling techniques used.

Sampling region:
Sampling region will be HAPUR of Uttar Pradesh.

70
Data collection method:
1. Primary data: It will be collected with the help of a self administered
questionnaire.
2. Secondary data: it will be collected with the help of books, research
papers, magazines, news papers, journals, internet, etc.

Research instruments:

Questionnaire design:
As the questionnaire is self administrated one, the survey will be simple and user
friendly. Words used in questionnaire will be readily understandable to all
respondent. Also technical jargons will be avoided to ensure that there is no
confusion for respondents.

Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS
Software.

71
8. DATA ANALYSIS

DABUR CHYAWANPRASH

1. AWARNESS LEVEL

72
2. PREFERRED BRAND

73
74
3.SATISFACTION LEVEL

75
4. REASONS FOR SELECTING A PARTICULAR BRAND

76
5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

77
6. UNAVAILABILITY OF PREFERRED BRAND

78
7. PREFERRED PACK SIZE

79
8. REASON TO SELECT PREFERRED PACK SIZE

80
9. FREQUENCY OF PURCHARE

81
10.

82
11.

83
84
85
RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

86
2.Out of these which are the most preferred?

87
3. According to you what are the reasons for customers’ preferences?

88
4.What is the profile of your typical consumer?

89
5.What schemes are you offered by the companies?

90
6.What schemes does a consumer prefer most?

91
7.According to you, does in-store advertising have an affect on the consumers’
preference?

92
8.Do a change in price affect their preferences?

93
94
11. CONCLUSIONS

The Chyawanprash Industry is yet to capture the beverage market in full swing.
Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul,
Ghrit and several

other herbs and herbal extracts. the market. The consumer’s patriotic love for tea
and coffee is unfared. Chyawanprash are yet to establish their supplement use in
the average household here in lies the great opportunities. Within the market, it is
safe to conclude that dabur has hit off ratherwell with the masses. dabur has
clearly lost it head start advantage and thereby acquiring just 35% of the market
share while others enjoys rest of the market share. This could be well attributed to
dabor successful ATA (Availability, Taste and Affordability) marketing module, the
attributes most rated by the consumers. Lack of publicity has hampered the growth
progress of the brand so aggressive advertising is needed to promote
Chyawanprash 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 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.

95
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 quality benefit rather then
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 .

96
12. BIBLIOGRAPHY

Books:

Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane Keller

Websites:

www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com

97
13. 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 Chyawanprash.

Any information provided by you will strictly be used for Academic Purpose.

1.Which brands of Chawanprash are you aware of?


 Zandu
 Himani
 Baidyanath
 Dabur

2.Which brand of Chawanprash do you use?


 Zandu
 Himani
 Baidyanath
 Dabur
3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)?
 1
 2
 3
 4

98
 5

4.What are the primary reasons for which you use this particular brand?
 Health
 Brand Loyalty
 Taste
 Price

5.How did you get to hear about this brand?


 TV
 Internet
 Word of Mouth
 Print

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?


 1 kg
 500 gm
 250 gm

99
8.On what parameters do you choose this pack size?
 Availability
 Price
 Family size
 Storage

9.How often do you buy?


 Once a month
 Once in two months
 Once in six months

10.Are you satisfied with your brand?


 Yes
 No

100
11) Please [√] the following attributes based on importance, which
purchasing a FMCG products.

Attributes Not so important Important Must have


Product Specific
Lowest price
Offers running
Price discount
Retail brand
Product quality

101
RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for the Chyawanprash category that we have chosen
to study.

Any information provided by you will purely and strictly be used for Academic
Purpose only.

1.Which brands of Chyawanprash do you stock?


 Zandu
 Himani
 Baidyanath
 Dabur
2.Out of these which are the most preferred?
 Zandu
 Himani
 Baidyanath
 Dabur
3.According to you what are the reasons for customers’ preferences?
 Brand loyalty
 Price
 Availability

102
 No reason
4.What is the profile of your typical consumer?
 High income
 Middle income
 Low income
5.What schemes are you offered by the companies?
Price discounts
 Buy one get one free
 Others

6.What schemes does a consumer prefer most?


 Price discounts
 Buy one get one free
 Others

7.According to you, does in-store advertising have an affect on the


consumers’ preference?
 Yes
 No
8.Does a change in price affect their preferences?
 Yes
 No

9. In how many days you receive the product after placing the order?
 One week
 Two weeks

103

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