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INTRODUCTION
Dr. S.K. Burman lays the foundation of what is today known as Dabur India
Limited. Starting from a small shop in Calcutta, he began a direct mailing
system to send his medicines to even the smallest of village in Bengal. The
brand name is derived from the words Dafor Daktar or doctor and
burfromBurman.
The principal activities of the group are manufacturing of natural/herbal and
ayurvedic product, healthcare and food product and pharmaceuticals. The
Group export its products to middle-east and other countries which
accounted for 9% of sale .Consumer goods accounted for 70% of 2009 gross
revenues; Pharmaceuticals products, 12%;Food products, 6% Ayurvedic
products, 6%; and other, 6%.
The founder S.K BURMAN was a physician who brought ayurvedic
medicines to the ailingmasses of Bengal. Dabur commenced operation in
1884 and is today a multinational multi-product enterprise. The company has
major interest in health and beauty care.
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Dabur is a leader in ayurveda, the traditional Indian health care system. The
company manufacturers and markets a range of oncologicals. Dabur is one
of the few companies in the world to produce paclitaxel-an anti cancer drug.
The company has 12 manufacturing plants in India, Nepal and Egypt. Dabur
products are also manufactured in Dubai. It has a transactional network of 19
offices serving both rural and urban markets in India. The company has sales
and marketing offices in Dubai and London.
Products are available over 50 countries. It has collaborated with leaders in
their fields to set up joint ventures in India. The joint ventures are with
Agrolimen of Spain, general Deconfeteria India ltd., manufactures
confectioneries. the joint venture with Bongrain of France, Dabur has
collaborated with Osem of Israel to manufacture bakery specialties & other
food products.
Consumer attitudes defined as the decision process and physical activity
individuals engage in when evaluating, acquiring using or disposing of
goods and services. It also refers to the behavior that consumer displays in
searching for purchasing, using, evaluating and disposing off products and
services that they aspect will satisfy their needs. An attitude is a behavioral
disposition which is part of the structure of human perception. Trained is
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offers a most understood definition of attitude when he says An attitude is
an idea charged with emotion which predisposes a class of action ton a
particular class of social situation .Any person, product or creation of
person or social event can function as a social object.
On the basis of above definition of attitude, we can say that a person can
have attitudes towards various brands of products and services. Attitudes are
generally conceived as having three components.
1- Cognitive- a person `s belief about an object.
2- Effective a persons feeling of like or dislike concerning an object.
3- Behavioral-action tendencies towards an object It includes the study
of what they buy, why they buy, where they buy it, how often they buy
and how often they use it. As marketers and future marketers, it is
important for us to recognize why and how individuals make their
consumption decisions, so that we can make better strategic decisions.
Marketers who understand consumer behavior have great competitive
advantage in the market place.
To better meet the need of specific group of consumers, most marketers
adopt the policy of market segmentation, which calls for the division of their
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total potential markets into smaller, homogeneous segments for which they
can design specific products. They also adopt new promotional techniques to
vary the image of the product so that they will be perceived as better
fulfilling the specific needs of certain target segments- a process now known
as positioning.
Consumer attitude is influenced by environment like culture, subculture, and
social groups like family. It is influenced by personal influences, personality
and attitudes.
1. It has been recognized that cultures that influence consumers. The
implication is that although all customers may be biological
similar, all over the world, what they value and how they act differ
according to their cultural background. The culture is defined as
that complex that includes knowledge, belief, art, law, custom and
any other capabilities and habits acquired by man as a member of
society.
2. The marketers can distinguish more homogeneous sub-groups with
in the heterogeneous national society. We refer to these groups as
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subcultures. The marketers must understand who is the most
relevant subcultures for their particular products and services by
knowing the characteristics and behavioral patterns they are in a
better position to refine the marketing risk.
3. It is defined as a group consisting in a number of people who have
approximately equal position in a society. Product choice and
usage among the social groups. Shopping behavior also varies by
social class.
4. A group consists of people who have a sense of interaction with
each other. Marketers therefore help individuals play their roles by
providing the right cost and props to be used in gaining acceptance
by some group.
5. The family is both a primary and a reference group. Marketers
need to understand the nature of the familys influence on its
members and the way in which purchase decisions are made by the
members. Individuals influence each others behavior as
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consumers. Word of mouth is an oral-communication it is actually
a subset of personal influence. Personal influence is necessarily
dependant upon the process of communication. Consumer behavior
is said to be largely depending on the situation present at that time.
The people shop when need to purchase something. There can be both
personal and social motives which influence consumer shopping activities.
People can do shopping after looking at window displays also.
Brands that seek to improve both in getting brand users and in increasing
their loyalty. Brand loyalty is a challenging goal each marketer seeks to
attain. Glucose has got its brand name as awhole. People drink it for taste as
well as a energy drink. It is a product under food division. Many factors
affect its purchasing like you have been advised to to drink a energy drink so
you consume it for energy only, someone told you that it is good in taste
then you consume it for taste.
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FMCG Concept and Definition:
The term FMCG (fast moving consumer goods), although popular and
frequently used does not have a standard definition and is generally used in
India to refer to products of everyday use. Conceptually, however, the term
refers to relatively fast moving items that are used directly by the consumer.
Thus, a significant gap exists between the general use and the conceptual
meaning of the term FMCG.
Further, difficulties crop up when attempts to devise a definition for FMCG.
The problem arises because the concept has a retail orientation and
distinguishes between consumer products on the basis of how quickly they
move at the retailers shelves. The moot question therefore, is what industry
turnaround threshold should be for the item to qualify as an FMCG. Should
the turnaround happen daily, weekly, or monthly?
One of the factors on which the turnaround depends is the purchase cycle.
However, the purchase cycle for the same product tend to vary across
population segments. Many low-income households are forced to buy
certain products more frequently because of lack of liquidity and storage
space while relatively high-income households buy the same products more
infrequently. Similarly, the purchase cycle also tends to vary because of
cultural factors. Most Indians, typically, prefer fresh food articles and
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therefore to buy relatively small quantities more frequently. This is in sharp
contrast with what happens in most western countries, where the practice of
buying and socking foods for relatively longer period is more prevalent.
Thus, should the inventory turnaround threshold be universal, or should it
allow for income, cultural and behavioral nuances?
Advertisements and sales promotion convey brand differentiation and this
may be important in several categories, which consist of several brands. In
FMCG products like tea, coffee and detergents.The term advertisinig is
derived from the latin word adventure which means to turn thokers to
wards attention every piece of advertising turns the attention of the readers
or the listeners or the viewers or the onlookers towards or a service or an
idea therefore, it can be said that any thing that turns the attention to an
article or a service or an idea might be well called as advertising.
Advertising is any paid form of non personal presentation of ideas goals or
sevices by an identified sponsor. Advertising and sales promotion both are
the methods of promotion mix and are very effective in maximizing the sale
of FMCG products.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged
Goods (CPG) are products that have a quick turnover and relatively low
cost. Consumers generally put less thought into the purchase of FMCG than
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they do for other products. The Indian FMCG industry witnessed significant
changes through the 1990s. Many players had been facing several problems
on account of increased competition from small and regional players and
from slow growth across its various product categories. As a result, most of
the companies were forced to revamp their product, marketing, distribution
and customer service strategies to strengthen their position in the market. By
the turn of the 20th century, the face of the Indian FMCG industry had
changed significantly. With the liberalization and growth of the Indian
economy, the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as television
and the Internet. Apart from this, social changes such as increase in the
number of nuclear families and the growing number of working couples
resulting in increased spending power also contributed to the increase in the
Indian consumers personal consumption. The realization of the customer's
growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG producing
companies to formulate customer-centric strategies. These changes had a
positive impact, leading to the rapid growth in the FMCG industry. Increased
availability of retail space, rapid urbanization, and qualified manpower also
boosted the growth of the organized retailing sector. HUL led the way in
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revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating
new product, distribution and service formats. The FMCG sector also
received a boost by government led initiatives in the 2003 budget such as the
setting up of excise free zones in various parts of the country that witnessed
firms moving away from outsourcing to manufacturing by investing in the
zones. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large numbers and so the cumulative profit on
such products can be large. Unlike some industries, such as automobiles,
computers, and airlines, FMCG does not suffer from mass layoffs every time
the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner. Unlike other economy sectors, FMCG share float
in a steady manner irrespective of global market dip, because they generally
satisfy rather fundamental, as opposed to luxurious needs. The FMCG
sector, which is growing at the rate of 9% is the fourth largest sector in the
Indian Economy and is worth Rs.93000 crore. The main contributor, making
up 32% of the sector, is the South Indian region. It is predicted that by the
end of 2010, the FMCG sector will be worth Rs.143000 crore. The sector
being one of the biggest sectors of the Indian Economy provides up to 4
million jobs.
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Fast moving consumer goods players Dabur, HUL are among the major
companies found to violate Advertising Standards Council of India code
during the first quarter of the current calendar year.
ASCI had taken action against 16 advertising campaigns by different
companies, of which seven were asked to withdraw, while nine were asked
to modify for violation of the codes.
The council asked Dabur India to discontinue its Red Toothpaste commercial
after the company was unable to substantiate claims made in a television
commercial, in which it said specific indgredients in the product could give
the consumer strong teeth.
Hindustan Lever's Clinic All Clear, which is now being endorsed by
Bollywood couple Bipasha Basu and John Abraham, was also on the list of
defaulters.
The company was found guilty of 'false and misleading' campaigns in its
hoardings and radio commercials. HUL had projected the shampoo as a
solution to hair fall through its tag-line BAAL GIRNEY KA SAWAAL HI
NAHI (no question of hair fall). ASCI ordered HUL to remove the
hoardings and radio commercials. This time around, several FMCG
companies have come under ASCI's (Advertising Standards Council of
India) scanner as complaints against their ads have been upheld by the
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Consumer Complaints Council for the period between January and March
this year.
Dabur, Hindustan Lever, Johnson & Johnson and Colgate Palmolive are the
few FMCG majors who have had to withdraw their ads during this period.
For Dabur India, it was its Dabur Red Toothpaste; its pack claimed `strong
teeth.' The TV commercial claimed `Get strong teeth from Dabur Red
Toothpaste which contains laung, pudina and tomar.'According to the
complaint made by a member of the dental profession, the ingredients
declared on the pack are not scientifically and clinically proved to provide
strong teeth. The claim is false and needs to be validated with clinically
proven data, said ASCI. The TV commercial has been discontinued. Assurce
is awaited from the advertiser on the modification of the promotion message
on the product pack, said the advertising standards watchdog. In the case of
HUL, the radio commercials for Clinic All Clear Hair Defense claim "Baal
girne ka sawaal nahi (question of hair fall does not arise)" was looked upon
commercials distort facts and are misleading consumers into believing that
Clinic All Clear stops hair fall. The ads from radio and hoardings have thus
been withdrawn.
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As the claim relies on a survey conducted by TNS India, one needs to
scrutinise the survey design, methodology and questionnaire to check the
validity of the survey, study the actual findings and check whether the same
reflects in conclusion," ASCI stated. The TV commercial had been
discontinued from March this year. For Colgate Palmolive (India), it was its
Colgate Sensitive Toothbrush being positioned as the Dentists' No.1 choice,
which ASCI objected to.
"In the absence of a notation in the advertisement on the source supporting
this claim, the advertiser is required to substantiate the claim," read the
complaint. In this case, the ad has been discontinued and the advertiser has
assured appropriate modification in future use.
The study conducted in association with the assistance of Yahoo, MSN,
Lycos, and AOL combined a total of 200 FMCG online campaigns executed
across Europe. The aim of the study was to quantify the average impact that
European ad campaigns have on traditional branding metrics, and create
benchmarks for categories such as FMCG which has traditionally not
embraced the Internet as a key advertising medium.
The research methodology follows global industry standards set forth by
Dynamic Logic (1999) which surveys consumers in two categories;
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campaign exposed and non-exposed. In total 160,000 individuals were
surveyed across Europe representing the two groups. The full 'funnel' of
branding metrics was surveyed; brands awareness, ad recall, message
association, brand favourability, and purchase intent.
The conclusion of the study found that all 5 branding metrics were positively
impacted. Similarly to other categories, FMCG brands which advertised
online had the highest impact across brand awareness (both aided and un-
aided) and brand favorability in line with market norms and mirroring
similar research from the US. Furthermore, it was found that effective
frequency across each of the brand metrics was increasing even at 10+
average exposures, building the case against perceived 'ad burnout' which
traditionally is thought to be at much lower average exposures levels. Hence
FMCG branding metrics continue to increase with additional exposures.
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DABUR FINANCE LIMITED
Dabur finance ltd. is a well diversified non-banking finance company
offering a full array of commercial finance & services. It focuses on
transparency, commitment and high quality. Set up in 1992, DFL derives its
skills and belief from its parent from its parent organization, Dabur India ltd.
It is involved in issue management, portfolio management, leasing and
finance.
ECO FRIENDLY DABUR
Dabur is committed to maintain the ecological balance. The companys
afforestation programs at planting medical herbs, plants and trees in the
Himalayan range. Extending into Nepal this exercise is actively supported
by an in-house tissue culture programs.
CORPORATE OBJECTIVE
Corporate goals for the next four years. This journey has been called the
STARS PROGRAMME.
The specific goals are:
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- Sales turnover of Rs. 2000 crs. In 2009-10.
- Profit after tax Rs. 136 crs. In 2009-10.
- MAC (Most admired FMCG Company) within the top 5.
- QUALITY POLICY
The management is fully committed to quality and ensures all resources to
accomplish this task.
QUALITY OBJECTIVES
THE COMPANYS QUALITY OBJECTIVES ARE AS
FOLLOWS:
- To focus on its customers and successfully meet their needs and
requirements.
- To manufacture effective health care products at competitive prices
and to improve the quality of life of the common masses.
- To implement system to ensure prevention of errors rather than
detection of errors.
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HISTORY OF COMPANY
MILESTONESTO 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 popularizing 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 specializations. It is the
first Company to provide health care through scientifically tested and
automated production of formulations based on our traditional science.
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1930 - Automation and upgradation of Ayurvedic products manufacturing
initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda Dabur introduces Indian
consumers to personal care through Ayurveda, with the launch of Dabur
Amla Hair Oil. So popular is the product that it becomes the largest
selling hair oil brand in India.
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.
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1972 - Shifts base to Meerut 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 Foundation set up
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 fun The 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
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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 Foundation develops an
eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice
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
2004 - 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.
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2005 - Super specialty drugs with the setting up of Dabur Oncology's
sterile Cytoxic facility, the Company gains entry into the highly
specialized 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.
2006 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs
64.4 crore
2007 - Dabur demerges Pharmaceuticals 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.
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.
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PROMOTIONAL TOOLS
TYPES OF PROMOTIONAL TOOLS
Websites, CD ROM's, email, broadcasting, posters
Fast becoming the most flexible and dynamic media of all. Expensive and
challenging to originate but this is where all advertising and customer
communications are headed, because the advantages and cost-to-value
factors are so great. It's now perfectly feasible to produce all sales literature
and brochures, plus lots more besides, in user-friendly, inter-active digital
format. Conventional printed sales material are steadily becoming obsolete,
and in ten years time the printed brochure will be a real rarity.
Websites and CD ROM's share much of the same origination process and
therefore cost, and as more agencies develop skills in these areas, and as
production technology improves, costs of origination and production will
reduce to levels that will threaten to finish off the traditional print industry as
we know it.
Press and Public Relations (PR)
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The press release is the most under-rated form of advertising. Why? Because
its free, and moreover press editorial is perceived by the audience to be true,
whereas advertising of all almost all other types is seen as oh no another
advert and therefore implies uncertainty or scepticism. Getting your
editorial printed for free is easier than you may think, and guidelines for
doing so follow in more detail later. TV and radio publicity works in the
same way, although more difficult to secure and control.
Direct Mail
This is the process of sending, your material (by itself or in a shared mailing
with other items) direct to the address of the potential customer. Components
of the process are a list, (your own data-base or names sourced elsewhere)
the item to be mailed, facility to stuff and address envelopes, and postal
charges, depending on the weight of the item. The last two stages are called
fulfillment. Direct Mail is generally used to generate a direct response
from the recipient. Response rates vary according primarily to the quality of
the list, (ie how 'targeted' it is in terms of your offer). More than 5% is
extremely good. Under 1%. is more common. Many mail order
organizations are very profitable at responses of less than 0.5%. Your own
database will typically produce a response of two or three times that of a list
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sourced elsewhere. List prices vary enormously, from 25 up to several
hundreds of pounds per 1000, depending on volume, how specific the list is,
and how selective your profiling criteria are. You can also choose whether to
have the list on labels, or on a disk in a common spreadsheet or database
format.
These days it's very easy and highly cost-effective to do your own or
outsource a mail merge direct mail, campaign, using a word-processing
program in conjunction with the list of names and addresses on a
spreadsheet program. Guide price including printed material, list and
fulfillment is 500 per thousand. Acid test of the the viability is to assume
0.5% response (ie 5 per thousand) multiplied by the average contribution
(sales minus cost of goods or service sold) that you would expect per new
customer. If the answer is less than the cost of the campaign you have a good
justification to proceed.
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Display advertising
The taking of advertising space in the editorial sections of magazines or
newspapers, as opposed to the classified sections, which are a less
expensive, and generally lower performing method. All significant
publications will be pleased to provide you with their Media Pack, which
gives full details of all the types of display advertising available, for how
much, together with lots of information about their readership profile and
circulation. If you are trying to generate a direct response from display
advertising you may need to feature a coupon of some kind. Otherwise
display advertising is concerned with image-building and creating
awareness. As with other advertising methods, the use of free telephone
numbers and Freepost addresses all increase response rates.
Brochures, leaflets and printed material
Brochures and leaflets can be used for a variety of purposes, and can be
distributed in different ways. A good printer can provide examples and
castings, and the easiest way to learn what works and what doesnt is to look
at other peoples material. The aim of a brochure is foremost to generate new
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business through providing information in a way that appeals to the reader.
The acronym AIDA (attention interest desire action) should be the basis of
its design. Some brochures and leaflets are pleasing pieces of art, but they
dont achieve anything for the business, so avoid this trap. If you work with
a designer be sure to control any fanciful tendencies and keep to the point.
Too much spent on a brochure can give the impression that your business is
extravagant. Restrict expenditure to keep material fit for purpose, unless
your are targeting a market that expects to pay top prices.
Common (and therefore more cost-effective) European leaflet formats are
A3 folded to A4, A4, A5, A4 folded to A5, A4 three-fold (gate-fold).
However, printed advertising material can be very small indeed, so dont
automatically assume A4 format is most cost-effective. When producing
leaflets and brochures think about the way that they are to be distributed. If it
needs an envelope is there one to fit? If the material is required as an insert
is it acceptable to the publication? Is it to be available from a rack? Do you
want people to retain the material, so would credit-card size be more
appropriate?
There are thousands of different types of paper. Letterheads are usually
printed on to 90-100gsm (grams per square meter) cartridge, laid or bond. A
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100gsm paper is adequate for single sided mono or color printing. 130gsm is
better for double- sided. 200gsm is minimum weight for a post card format.
250-300gsm is used for business cards. Heavier boards are usually measured
in microns rather than gsm because density affects weight more at these
gauges. Coated matt and gloss art papers are used for higher quality effects,
but add to cost. Various lamination processes add more quality and more
cost.
Full color printing uses the colors black, red, yellow and blue, and requires
a plate to be made for each color. Mono printing is black on white and
requires just one black plate. Each color can be tinted (ie applied less than
100% solid) to varying degrees across the print area, so with good design
even black and white printing can give a high quality effect. Conversely, a
poor design can make full color printing look cheap and nasty. If you want
something classier than black and white, two color printing can produce
amazing results, without the cost of going to full color. Each plate can cost
20 to 50, so you can see that a full color job could cost 200 before any
printing at all.
As a rule, printing costs reduce dramatically with volume. Mono (black and
white) print runs of less than 1,000 are very expensive, and less than 2,000
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for color are prohibitive too. For quantities from one single copy up to the
low-hundreds, digital printing is a fast-developing technology that now
offers superb quality without need for plates. Expect digital printing to
become more cost-effective, more prevalent and competitive with
conventional lithographic printing as the capital cost of equipment reduces,
and the technology proliferates.
Loose and bound inserts
Inserts, in the form of leaflets, brochures, or other material, are provided by
the advertiser to the publication, to be sent out with the magazine or
newspaper. You have to produce the materials to be used as inserts which
incurs printing costs, and then pay the publication a charge for insertion,
usually between 25 and 100 per thousand. There is a big effect from
economies of scale. Charges vary according to weight of insert, how many
inserts per publication, volume, the narrowness of the circulation profile, and
how the publication is itself distributed. Response rates from inserts are
almost always lower than direct mail, particularly solos, but inserts are a
very flexible and cheap method of distributing an advert. Bound-in inserts
cost extra, require longer lead-times, and are favoured by some because they
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dont fall out and consequently are seen by the entire readership, which is
two or three times greater than the circulation.
Large quantity leaflet drops without the need for envelopes or normal postal
charges can be arranged through the Royal Mail, so that your leaflet is
delivered at the same time as the normal post. Targeting, based on postcodes
and Census data, is possible to a basic degree, and the cost is inclusive in the
distribution charges. Royal Mail minimum charge is 500, which, for
example, would pay for distribution of 11,900 leaflets weighing no more
than 20g. This compares with a cost of over 2,300 for direct mail postage
charges, apart from envelopes and stuffing.
Other specialized household distributors provide similar services, often
piggy-backing on local newspaper deliveries; details can be obtained from
the Association of Household Distributors.
Posters sites (hoardings, taxi-cabs, buses)
For advertising considered as public information a variety of poster sites are
free to the advertiser, so it makes sense to use these freely, supported by
some record system so you keep them up-to-date and utilized. Other sites
vary according to nature and cost, from large roadside hoardings to buses,
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taxis and sports grounds. Anywhere that people pass or gather in large
numbers is a potential poster site, and as with printed media, audience
profile information is available. New sites are being discovered and
exploited all the time, such as supermarket trolleys and floors, table napkins,
and even public conveniences, and the media extends now into continuous
video at post offices and petrol forecourts etc.
Local radio, TV cinema and the Internet
Other forms of targeted media advertising, and now TV and radio are
increasingly used by smaller local businesses, although tight geographical
targeting is obviously difficult. Cost of production can be a significant
factor.
Producing your own information and e-commerce on the Internet is now
viable for even very small businesses. For consumer businesses, the in on-
line shopping boom has begun, so don't get left behind.
All business-to-business organizations should now have a web presence too,
if only for PR and communications reasons.
Particular styles and origination are required for a good web site, and the
medium is no longer passive, so you need to think about integrating
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promotion and advertising to attract people to your site. If you want more
information or down-to-earth solid business advice on the biggest can of
worms in the history of the world, then please get in touch. If you want
technical information on the really esoteric stuff like meta tags and search
engine rankings, then the best free source by far is at deadlock.com.
Guide books, Hand books and Newsletters
Publishing your own information material is potentially very effective, and
costs can be reduced by incorporating relevant supporting advertising from
other organizations wishing to be associated with your services and to target
your audience. Guidelines for Newsletters follow later.
Alternatively you can advertise in a relevant guide book produced by
another organisation. However, be careful to ascertain accurate details of
circulation and profile if considering small or unproven publications.
Open days and exhibitions
The advantage of personal contact is that you actually get to talk to your
potential customers, which dramatically increases the chances of getting
your message across. But there is a limit to how many people you can target
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and access using these methods. Costs of preparation and organisation can
be big, and are rarely transparent at the outset so beware.
BUSINESS PLANS AND MARKETING STRATEGY
A plan - a statement of intent - a calculated intention to organize effort and
resource to achieve an outcome - in this context a plan is in written form,
comprising explanation, justification and relevant numerical and financial
statistical data. In a business context a plan's numerical data - costs and
revenues - are normally scheduled over at least one trading year, broken
down weekly, monthly quarterly and cumulatively.
A business - an activity or entity, irrespective of size and autonomy, which is
engaged in an activity, normally the provision of products and/or services, to
produce commercial gain, extending to non-commercial organizations
whose aim may or may not be profit (hence why public service sector
schools and hospitals are in this context be referred to as 'businesses'.
Business plan - This is now rightly a very general and flexible term,
applicable to the planned activities and aims of any entity, individual group
or organization where effort is being converted into results, for example: a
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small company; a large company; a corner shop; a local window-cleaning
business; a regional business; a multi-million pound multi-national
corporation; a charity; a school; a hospital; a local council; a government
agency or department; a joint-venture; a project within a business or
department; a business unit, division, or department within another
organization or company, a profit centre or cost centre within an an
organization or business; the responsibility of a team or group or an
individual. The business entity could also be a proposed start-up, a new
business development within an existing organization, a new joint-venture,
or any new organizational or business project which aims to convert action
into results. The extent to which a business plan includes costs and
overheads activities and resources (eg., production, research and
development, warehouse, storage, transport, distribution, wastage, shrinkage,
head office, training, bad debts, etc) depends on the needs of the business
and the purpose of the plan. Large 'executive-level' business plans therefore
look rather like a 'predictive profit and loss account', fully itemized down to
the 'bottom line'. Businesses plans written at business unit or departmental
level do not generally include financial data outside the department
concerned. Most business plans are in effect sales plans or marketing plans
or departmental plans, which form the main bias of this guide.
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Strategy - originally a military term, in a business planning context
strategy/strategic means/pertains to why and how the plan will work, in
relation to all factors of influence upon the business entity and activity,
particularly including competitors (thus the use of a military combative
term), customers and demographics, technology and communications.
Marketing - believed by many to mean the same as advertising or sales
promotion, marketing actually means and covers everything from company
culture and positioning, through market research, new business/product
development, advertising and promotion, PR (public/press relations), and
arguably all of the sales functions as well. Marketing is the process by which
a business decides what it will sell, to whom, when and how, and then does
it.
Marketing plan - logically a plan which details what a business will sell, to
whom, when and how, implicitly including the business/marketing strategy.
The extent to which financial and commercial numerical data is included
depends on the needs of the business. The extent to which this details the
sales plan also depends on the needs of the business.
Sales - the transactions between the business and its customers whereby
services and/or products are provided in return for payment. Sales (sales
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department/sales team) also describes the activities and resources that enable
this process, and sales also describes the revenues that the business derives
from the sales activities.
Sales plan - a plan describing, quantifying and phased over time, how the
the sales will be made and to whom. Some organizations interpret this to be
the same as a business plan or a marketing plan.
Business strategy originally a military term, in a business planning
context strategy/strategic means/pertains to why and how the plan will work,
in relation to all factors of influence upon the business entity and activity,
particularly including competitors (thus the use of a military combative
term), customers and demographics, technology and communications.
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PRODUCT PROFILE
For persistent dandruff problem, Vatika Anti-Dandruff Shampoo is the
natural choice. This herbal treatment is completely safe and cures dandruff
from within. Enhancing your hairs natural beauty, without damaging or
making it dry.
Vatika Anti - Dandruff Shampoo uses the natural goodness of lemon and
henna. Cleaning and curing difficult dandruff, while conditioning the hair to
give it body and strength.
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The natural shampoo that conditions from deep within, while gently
cleansing and nourishing your hair. Created by the Vatika Expert with a
perfect balance of natural ingredients like henna, green almonds and
Shikakai. Unlike chemical shampoos that are harsh, Vatika is mild on your
hair, leaving it soft, silky and radiant, with the gentle and caring touch of
nature.
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OBJECTIVE OF STUDY
1. To study the consumer awareness of Dabur vatika shampoo.
2. To study the promotional strategy of Dabur vatika Shampoo.
3. To study the consumer satisfaction level of Dabur vatika
shampoo.
4. To study the sales distribution parameters in Dabur vatika
shampoo.
5. To study the consumer attitude in respect to Dabur vatika
shampoo.
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LITERATURE REVIEW
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LITERATURE REVIEW
Advertising is the only direct method which helps to reach masses of
potential buyers. Advertising, being dynamic, changes with changing
methods of distribution and consumption. In the present era of information
explosion and media influence, these advertisements play a major role in
changing the settled perception or thinking, which is otherwise called
attitude, of the consumer and also the consumption pattern of the society in
general. Thus, the impact leads to cultural and social changes to a great
extent. Why is there a need of advertising? Advertising is a way of
communicating information to the consumer which enables him or her to
compare and choose from the products and services available. Advertising is
the most economical means by which a manufacturer or an Institutional
body can communicate to an audience whether to sell a product or promote a
cause of social welfare. Essentials of Effective Advertisement-the writer
thinks that there are 4 important things for an advertisement to be effective.
They are importance of claim, believable, uniqueness and repetition. The
advertiser must constantly assess the situation to choose the right
environment and ideal time for an advertisement to be launched. Some of the
situations are as follows:-
When there is a favourable primary demand of particular product.
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When there is a distinctive product differentiation from other competitive
brands.
When mass market is penetrated.
In order to ensure that the advertisements reach the target consumers in a
most effective way and gets right response from them, it has to be ensuring
that such advertisements are presented in the right way. The following steps
on the part of the consumer may ensure that the advertisements are on the
right track.
Getting attracted towards the advertisements.
Listening and observing the contents of the advertisements in full.
Continuous watching of the same over a period.
Comparing the advertisements of similar products.
Making a trial purchase as follow up activity.
Assessing the level of utility of the product individually.
Ascertaining the level of utility derived with other similar consumers.
In the article Dr. Alexander-- Told about a model which exemplifies the
attitude or response of a consumer to an advertisement.
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RESEARCH METHODOLOGY
Research Methodology is a systematic way, which consists of series of
actions or steps necessary to effectively carry out research and the desired
sequencing of these steps. The marketing research is a process of involves a
number of inter-related activities, which overlap and do rigidly follow a
particicular sequence. It consists of the following steps
1. Formulating the objective of the study
2. Designing the methods of data collection
3. Selecting the sample plan
4. Collecting the data
5. Processing and analyzing the data
6. Reporting the findings
RESEARCH DESIGN
Research Design specifies the methods and procedures for conducting a
particular study. A Research Design is the arrangement of conditions for
collection and analysis of the data in a manner that aims to combine
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relevance to the research purpose with economy in procedure. Research
Design is broadly classified into three types as
1 Exploratory Research Design
2 Descriptive Research Design
3 Hypothesis testing Research Design
On the basis of the objective of study, the studies which are concerned with
describing the character tics of a particular individual, or of a group of
individual under study comes under Descriptive Research Design.
Descriptive Research Design: In this research design the objective of
study is clearly defined and has accurate method of measurement with a
clear cut definition of population which is to be studied.
FORMULATING THE RESEARCH PROBLEM
Two steps are involved in formulating the research problem:
1 Understanding the problem
2 Rephrasing the problem into meaningful terms from an analytical
point of view.
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3.The training sessions are conducted in the beginning of training in
order to make us clear about the task provided and how to handle the
different situations.
PREPARING THE RESEARCH DESIGN
The research design is developed to collect the relevant information with
minimum of efforts, time and money.
Marketing Research Objectives:
1 To undertake a prior market study before doing owns research.
. To make an analysis on the basis of the results.
2 Type of Study: Descriptive.
3 Research Area: Ghaziabad.
4 Source of Information:Primary Data.
5 Data Collection Instrument: Questionnaires & Personal Interview.
6 Research Approach: Survey Method.
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THE MARKET PLACE
The Rs. 525 Crore organization Vatika Shampoo market today has a
numbers of the homegrown brands like Ayur, Nyle & Chik who have
grabbed large share of Vatika Shampoo pie in their respective regions. Vatika
is planning to open 30 of its caf 100 parlous in the state of Meerut, Punjab
and Haryana. Vatika a market leader in yester years is already not to sure
how to gain back its lost ground and cut down its losses, there are many
more who are seeking entry to take and an early positioning in the market
that is expected to grow faster than any other Herbal products.Managing
branded parlour and shops chains may not be as difficult as managing chain
of Vatika Shampoo parlous as supply chain mechanism in case of Vatika
Shampoo is rather complex but nevertheless increasing supplies of Herbal in
pushing companies to develop the market for Herbal products. Vatika
Shampoo business in India, estimated at Rs.1200 Crore, till very recently
was drive by pushcarts selling Hindustan Levers Kwality Walls or the local
brands. Narulas Vatika Shampoo parlous came in vogue only after the arrival
of multinationals like Baskin Robins, super store, parlours and the most
recent good market value. Parlous have an edge over the rest, at least in the
urban market, which contributes the lions share to the industry. Baskin
Robbins had a tough building up its cold chain, the largest in India.
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DATA ANALYSIS & INTERPRETATION
After data have been collected researcher turns to the task of analysis them.
The analysis of the task of closely related option such as establishment of
categories, the application of these calories to raw data through coding
tabulation and then drawing.
Statistical inferences
1) Coding
2) Editing
3) Tabulation
Coding operation is usually done at this stage through which the
categories of data was transfer into symbols that may be tabulated add
counted
Editing was the procedure that improves the quality of data for coding with
the stage was ready for tabulation
Tabulation was a part of the technical procedure where in the classified
data are put in the form of tables.
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TABLE NO.1
0%
5%
10%
15%
20%
25%
30%
35%
40%
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
rajnagar
ghanta ghar
kavi nagar
48
Area of Survey No.Of Respondent
Rajnagar 35Ghantta Ghar 40
Kavi nagar 25
Total 100
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PREFARANCE GIVEN BY RESPONDENT
TABLE NO.2
49
Brand No. of Respondent
Dabur 40
Nyle 25
Ayur 20
Chik 10
Other 5Total 100
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0
0.05
0.1
0.15
0.20.25
0.3
0.35
0.4
Dabur
Nyle
Ayur
Chik
Other
3-D Column 6
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Promotion by Vatika Shampoo Company
TABLE NO.3
51
Brand No. of Respondent Percentage
Dabur 40 31
Nyle 25 17Ayur 20 20
Chik 10 22
Other 5 10
Total 100 100
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0%
5%
10%
15%20%
25%
30%
35%
40%
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Dabur
Nyle
Ayur
Chik
Other
Suggestions given By RetailersTABLE NO.4
52
Suggestions No. of Respondent
Price Reduction 40
Increase Advertisement Spent 25
Taste Improvement 20
Distribution Improvement 10
Availability of Freezers 5
Total 100
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0
5
1015
20
25
30
35
40
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Price reduction
increase adv.spent
taste improvement
distribution impovement
availability of freezers
GRAPH.1
Market share of shampoo company
53
Brand No. of respondent
Dabur 40
Nyle 25
Ayur 20
Chik 10
Other 5
Total 100
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0
5
10
15
20
25
30
35
40
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Dbur
Nyle
Ayur
Chik
other
GRAPH.2
Availability of product
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38%
12%17%
27%
6%
Dabur Nyle Ayur Chik Other
1 Dabur is present in 38% of the retailer surveyed.
2 Nyle is present in 12% of the retailer surveyed.
3 Ayur is present in 17% of the retailer surveyed.
4 Chik is present in 27% of the retailer surveyed.
5 Other is present in 8% of the retailer surveyed.
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GRAPH.3
Preference by consumer
31%
17%20%
22%
10%
Dabur Nyle Ayur Chik Other
1 Dabur has liking of 31% among the consumers.
2 Nyle has liking of 17% among the consumers.
3 Ayur has liking of 20% among the consumers.
4 Chik has liking of 22% among the consumers.
5 Other has liking of 10% among the consumers.
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GRAPH.4
On The Basis Of Distribution Channel
36%
18%
22%
17%
7%
Dabur Nyle Ayur Chik Other
1 36% retailer preferred the distribution channel of Dabur
2 18% retailer preferred the distribution channel of Nyle
3 22% retailer preferred the distribution channel of Ayur
4 17% retailer preferred the distribution channel of Chick
5 7% retailer preferred the distribution channel of Other
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GRAPH.5
Promotion by shampoo company
35%
12%16%
31%
6%
Dabur Nyle Ayur Chik Other
1 Promotion strategies of Dabur are liked by 35% of retailer.
2 Promotion strategies of Nyle are liked by 12% of retailer.
3 Promotion strategies of Ayur are liked by 16% of retailer.
4 Promotion strategies of Chick are liked by 31% of retailer.
5 Promotion strategies of Other are liked by 6% of retailer.
GRAPH.6
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Retailer suggestion
16%
35%
8%
22%
19%
Price reduction Increase advertisement spent
Quality improvement Distribution improvement
Availability of products
19% of retailer suggested for Availability of Freezers.
16% of retailer suggested for Price Reduction.
22% of retailer suggested for Distribution Improvement.
8% of retailer suggested for an improvement in taste.
35% of retailer suggested for increase in Advertisement.
FINDING
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As regards outlet exclusivity, I found that the major manufacturers (Nyle and
Ayur) have entered into agreement with some retailer to stock only their
respective products, which has also adversely affected competition between
manufacturers and between the distributors.
Here is some of the finding that I came across as I surveyed the market.
1. An average Ghaziabad retailers is notorious and really very smart he is
hard to keep and the company has to make extra efforts to keep him
loyal.
2. The power outage was serious problem even in Ghaziabad the sub urban
areas like Rajnagar and the urban area like Sanjay Nagar were having
serious power outage which was again one reason why retailers were so
afraid of stocking up Vatika Shampoo.
3. The Vatika Shampoo market is very cost effective i.e. you need to be
good and cheap at the same time to make your product sell well.
4. The Vatika Shampoo business requires that the distribution network be
equally good besides there should be proper and timely delivery .
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5. And also replacements should be timely done otherwise chances are that
the retailers would shy away from that particular brand.
6. The one reason why Nyle was able to stock its Vatika Shampoos in
Daburs freezers was because we provided replacement and they didnt.
7. The company has a very right policy of promoting itself hard at the
places where the youth actually hang out.
8. The company I found got the menus printed in city mall where young
people actually hang out this may promote company well and get it long
time loyalty from customers.
RECOMMENDATIONS
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1. In considering the measures needed to remedy the adverse effects
identified our objective has been to establish a framework.
2. I which competition would be effective with as little ongoing
regulation as possible.
3. On distribution exclusivity, I recommend that other Vatika Shampoo
brands should be restricted from entering into any agreement or
arrangement for capacity .
4. Any good distribution channel , any retailer outlet used to stock
wrapped impulse Vatika Shampoo.
5. The company should make sure that it doesnt end up fighting with
other companies for the remaining freezer space .
6. the company should make sure that whichever market it enters it
should sanction enough money to fix freezers at least the shops where
the demand is good.
7. On outlet exclusivity, I recommend that the company make sure that
the retailer it invests on especially where the company gets the
pamphlets printed.
8. And also invests on the outlets fixing up big signboards and also
other acceseries like tables and chairs etc.
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9. In that case the company should demand total loyalty and also fix up
certain target for that shop.
10. So that if the target is met the company further reward the retailer
with further discounts or margins.
11.On distribution, we consider remedies that would regulate the supply
by Dabur to independent wholesalers such as specifying the
minimum order range besides the distribution should also be perked
up.
12. the availability should be such that shortages ever occur besides care
must be taken that delivery be quick and that the Vatika Shampoo is
not loose or melted.
13.As far as the billings are concerned the company must take proper
care that billings be done accordingly.
14. Company has been right in addressing the top shops in town by
keeping product and giving other support to bigger retailers.
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LIMITATIONS
Marketing research suffers from several limitations. A large number of
problems which are caused by financial constraints, insufficient sample size,
and lack of personal contact etc. marketing research only helps managers in
decision making process. It provides data and information to the managers
but it can not be a substitute for marketing.
Limitations of Survey:
In this industry, it is very difficult to find the exact figures as the
consumption is very low.
There is not a particular trend followed in this industry to promote
sales. Actions are taken according to the situations and the situation
changes very fast in this industry.
Sales price vary from retailer to retailer, as the cost price is different
for different retailers due to schemes given.
The number of shops is very large in number and it is very difficult to
cover all of them.
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CONCLUSION
Shampoo industry is very competitive industry and dominance
of Nyle makes it tougher for other brands to establish in this
field. So in order to compete in this market everything should be
perfect with main focus on distribution.
The distribution must be proper and retailers must be the main
center of focus. They are the people who can make difference.
Dabur advertisement is coming on TV and FM Radio in
Ghaziabad also.
So there is a possibility that sales will increase as more and
more people come to know about Dabur shampoo.
Advertisement can bring the customers to the shops but after
that the retailer is the key person.
If he wants he can sell any Herbal. Therefore it should be the
combined effort of company and retailers to improve the sales.
Also people always prefer change so if we provide them better
substitute of Nyle they will welcome this change.
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BIBLIOGRAPHY
1. Kotler, Philip, & Gary Armstrong, Marketing Management Ed-5th.
2. BERI G.C Research Methodology Ed-3rd (Tata McGraw-Hill).
3. Gupta, S.L Sales and distribution process Ed-5rd (1999).
4. Business Today, (Collector Edition, Vol.1).
5. Malhotra .k. Naresh & Das Satyabhusan Marketing Research
Ed-6th (Pearson Publication).
6. Sarin Anil (2007), Contemporary Issues in Marketing.
Indian journal of Marketing. Vol. 37, pp. 40-44.
7. Indian Journal of Marketing, (May 2011).
8.The Journal of India management &strategy, (July-Sep 2011).
9.Websites:
http://www.dabur.com.
www.managementanswer.com
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APPENDIX
QUESTIONNAIRE
Retailers Name:
Shop Address:
Tel:
1. Which brands keep in your shop?
a. Dabur ( )
b. Nyle ( )
c. Ayur ( )
d. Chik ( )
e. Other ( )
2. According to you best distribution channel is of?
a. Dabur ( )
b. Nyle ( )
c. Ayur ( )
d. Chik ( )
e. Other ( )
3. Which brand provides best promotional efforts?
a. Dabur ( )
b. Nyle ( )
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c. Ayur ( )
d. Chik ( )
e. Other ( )
4. Which Brand is most liked by consumer in Ghaziabad?
a. Dabur ( )
b. Nyle ( )
c. Ayur ( )
d. Chik ( )
e. Other ( )
5. Is the Vatika Shampoo easily available to you on ordering to company?
a. Yes ( )
b. No ( )
6. Are you satisfied with margin provided by the company of the product?
a. Yes ( )
b. No ( )
7. Other competitive brand providing good marginal.
-------------------------------------------------------------.
8. Are you satisfied with the quality of these brands ?
a. Dabur ( )
b. Nyle ( )
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c. Ayur ( )
d. Chik ( )
e. Other ( )
9. Are you satisfied with brand name?
a. Dabur ( )
b. Nyle ( )
c. Ayur ( )
d. Chik ( )
e. Other ( )
10. Suggestion from you side to an Vatika Shampoo company is?
a. Availability of product should be increased ( )
b. Price reduction ( )
c. Distribution improvement ( )
d. Taste improvement ( )
e. Other-----------------
11. Are you interested in selling Vatika Shampoo?
a. Yes ( )
b. No ( )
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12. If given a choice among following brands of Shampoo, which one
would you like to have (choose Only one):
a. Dabur ( )
b. Nyle ( )
c. Ayur ( )
d. Chik ( )