27172615 Marketing Strategy of Dabur Chwanprash

7/31/2019 27172615 Marketing Strategy of Dabur Chwanprash

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PREFACE

Management training has gained rapid importance only recently. Management was

previously considered as an inborn art or talent. But in todays fast developing

word this view has been abandoned.

To develop managerial capabilities and to supplement their theoretical knowledge

with practical experience, the management students are required to go training in

business organization.

This study would not only help me as a management student to gain a deep insight

of how an organization works but also practical usage of all management

techniques that I have learnt during the course of my study. This project would also

help me analyze the difference between the organizational realities and the theories

that have been taught in my academic session and also gave me a real experience

of the corporate world let me better understand how it function. It also taught mehow to take every experience in the right and learn from each one. Finally the

analysis feasible to be put to test in real life situations. I shall consider all my hard

work worthwhile if this endeavor of mine is able to satisfy all those concerned and

proves useful to anyone or for any further study in the future.

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CONTENTS

1. ACKNOWLEDGEMENT

2. EXECUTIVE SUMMARY

3. OVERVIEW OF FMCG SECTOR IN INDIA

4. ABOUT DABUR

PRODUCT LINE

SWOT ANALYSIS OF DABUR

THE MARKETING MIX ANDSELLING PROCESS

5. THE MARKETING MIX

6. OBJECTIVE OF THE STUDY

7. RESEARCH METHODOLOGY

8. DATA ANALYSIS

9. RECOMMENDATIONS

10.COMPETITOR ANALYSIS

11.CONCLUSIONS

12.BIBLIOGRAPHY

13.QUESTIONNAIRE

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1

.OVERVIEW OF FMCG SECTORIN 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 ischaracterised 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$ 33.4billion 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.

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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

households in India (188 million) resides in the rural areas. The total number ofrural 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

Source: Statistical Outline of India (2010-11), 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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Urban Rural

Population 2001-02 (mn household) 53 135

Population 2010-11 (mn household) 69 153% Distribution (2010-11) 28 72Market (Towns/Villages) 3,768 627,000Universe of Outlets (mn) 1 3.3


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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 Indias top brands. Its brandsare built on the foundation of trust that a Dabur offering will never cause one harm.

The trust levels that this brand enjoys are phenomenally high. While Ries and

Trout may ask What does Dabur stand forshampoo or digestive tablets? The

answer is fairly simple, it stands for Indias fourth largest fast moving consumer

goods company that both consumers and trade respect and trust unequivocally, and

which has an annual turnover of over Rs 15 billion.The company has kept an eye on new generations of customers with a range of

products that cater to a modern lifestyle, while managing not to alienate earlier

generations of loyal customers.

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Dabur is an investor friendly brand as its financial performance shows. There is an

abundance of information for its investors and prospective information including a

daily update on the share price (something that very few Indian brands do). Theres

a great sense of responsibility for investors funds on view. This is a directextension of Daburs philosophy of taking care of its constituents and it adds to the

sense of trust for the brand overall.

B.

Dabur India Limited has marked its presence with some very significantachievements 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 andDabur Egypt.

13 ultra-modern manufacturing units spread around the globe

Products marketed in over50 countries

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Wide and deep market penetration with 47 C&F agents, more than 5000

distributors and over1.5 million retail outlets all over India

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C.

1884 Birth of Dabur1896 Setting up a manufacturing plant

Early

1900sAyurvedic medicines

1919 Establishment of research laboratories1920 Expands further1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi

1979Sahibabad factory / Dabur Research

Foundation1986 Public Limited Company1992 Joint venture with Agrolimen of Spain1993 Cancer treatment1994 Public issues1995 Joint Ventures1996 3 separate divisions1997 Foods Division / Project STARS1998 Professionals to manage the Company2000 Turnover of Rs.1,000 crores2003 Dabur demerges Pharma Business2005 Dabur aquires Balsara2005 Dabur announces Bonus after 12 years

2006

Dabur crosses $2 Bin market Cap, adopts

US GAAP

2006Approves FCCB/GDR/ADR up to $200

million2007 Celebrating 10 years of Real2007 Foray into organised retail

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2010 Dabur Foods Merged With Dabur India

D.

Founding Thoughts

"What is that life worth which cannot bring comfort to others"

The doorstep 'Daktar'

The story of Dabur began with a small, but visionary

endeavour by Dr. S. K. Burman, a physician tucked away in

Bengal. His mission was to provide effective and affordable

cure for ordinary people in far-flung villages. With missionary

zeal and fervour, Dr. Burman undertook the task of preparing

natural cures for the killer diseases of those days, like cholera, malaria and plague.

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Soon the news of his medicines traveled, and he came to be known as the trusted

'Daktar' or Doctor who came up with effective cures. And that is how his venture

Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr.

Burman set up Dabur in 1884 to produce and dispense

Ayurvedic medicines. Reaching out to a wide mass of

people who had no access to proper treatment. Dr. S. K. Burman's commitment and

ceaseless efforts resulted in the company growing from a fledgling medicine

manufacturer in a small Calcutta house, to a household name that at once evokes

trust and reliability.

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.

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.

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The mission continues...
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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 gonea 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 manufacturinginitiated

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


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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:

Chairman

Vice-

Chairman

Dr. Anand

Burman

Mr. Amit

Burman
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Spanning a career of over 20 years, Sunil Duggal has travelled widely across India

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Sunil DuggalChief Executive Officer

Dabur India Limited

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

Business Management from IIM, Calcutta. His stint atWimco continued till 1994, with a break in between

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

and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal wasappointed 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.


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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 Companys stakeholders. Dabur understands the

importance of good governance and has constantly avoided an arbitrary decision-

making process. Our initiatives towards this end include:

Professionalisation of the board

Lean and active Board(reduced from 16 to 10 members)

Less number of promoters on the Board

More professionals and independent Directors for better management

Governed through Board committees for Audit, Remuneration, Shareholder

Grievances, Compensation and Nominations

Meets all Corporate Governance Code requirements of SEBI

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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, orSundesh, 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 forschoolchildren - to create

environmental awareness amongst young minds.

Our commitment to Environment

Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood andappreciated 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.

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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 ourunfailing 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 allour products are derived. Due to overexploitation of these resources and

unsustainable practices, these plants and herbs are fast reaching the point of

extinction. In view of this critical situation, Dabur has initiated some significant

programmes for ecological regeneration and protection of endangered plant

species.

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the

Himalayas. Under the project, a high-tech greenhouse facility has been set up for

developing saplings of rare and endangered medicinal plants. Fully computer-

controlled and monitored, this greenhouse maintains the highly critical

environmental parameters required for their survival. We are also developing

quality saplings of more than 20 herbs, 8 of them endangered, through micro

propagation.

In addition, satellite nurseries spread across mountain villages and contract

cultivation of medicinal herbs helps in maintaining the ecological balance. These

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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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Kaushambi Corporate

Office

Corporate Office

Kaushambi

Ghaziabad - 201010

Uttar Pradesh, India

Tel:

+91 (0120) 3982000 (30

Lines)

+91 (0120) 3001000 (30

Lines)

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 ;


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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

Digestives

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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

Personal Care

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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

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Dabur Binaca Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

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N.

Dabur Amongst Top Three Most

Respected FMCG Companies

Dabur Real Bags Gold In Reader's Digest

Trusted Brand Awards

Dabur Figures In Top Great Place ToWork 2006 List

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Dabur has been ranked

amongst India's MostInnovative Companies by a

Business Today-Monitor

Group survey

Hajmola has been ranked

34th in Indias 100 MostValuable Brands list

Hajmola, one of the

strongest brands inDabur's portfolio, has

been listed among the

Top 18 Iconic Brands in

India that have stood the

test of time

Dabur Indias fruit juice brand

Ral awarded the ReadersDigest Gold Trusted Brand

Award 2008 in the food &

beverages category

Three Dabur brands --

Hajmola, Dabur Amla andVatika -- have debuted in

the Economic Times

Brand Equity's Most

Trusted Brands 2008 list.

Hajmola moves up 11

spots to take the 34thposition among India's

Top 100 Most Valuable

Brands of 2008,

released by 4Ps and

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Besides, Dabur Foods has

climbed up to take the

40th spot

ICMR

Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable

(Company) Brands by Brand Finance

newu was voted the Most

Admired New Retail Launch

of the year at Images Retail

Awards

Dabur India CEO Mr.

Sunil Duggal was named

Best Corporate Leader of

2008 at the B&E

Leadership and

Excellence Awards

Dabur India Ltd was

ranked the Business

Leader in the FMCG -

Personal Care Category

at the NDTV Profit

Business Leadership

Award 2008

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Dabur India Ltd CEO Mr.

Sunil Duggal has been ranked

among India's Most 'value'able

CEOs by Business World

Dabur India Ltd has been listed among the Super

100 of India Inc, prepared by Business India

__________________________________________________________________________

_

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5. SWOT ANALYSIS OF DABUR

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STRENGTHS

Strong presence in well defined

niches( like value added Hair Oil

and Ayurveda specialities)

Core knowledge of Ayurveda as

competitive advantage

Strong Brand Image

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D a key strength

WEAKNESS

Seasonal Demand( like

chyawanprash in winter and

Vatika not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

Limited differentiation (Vatika)

Unbranded players account for

the 2/3rd of the total

market(Vatika)

OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the

middle class

Creating additional consumption

pattern

THREATS

Existing Competition( like

Himani, baidyanath and Zandu

for Dabur Chyawanprash and

Marico,Keo Karpin, HLL and

Bajaj for Vatika Hair Oil)

New Entrants Threat from substitutes (like

Bryllcream for Vatika hair oil)


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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.

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A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of

some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/Suppor

t

List price

Discounts

Allowances

Financing

Leasing

options

Channel members

Channelmotivation

Market coverage

Locations

Logistics

Service levels

Advertising

Personal selling

Public relations

Message

Media

Budget

DABUR FOODS SELLING PROCESS

Dabur food process of selling starts from stockiest.

Stockiest pay the money to dabur foods through demand draft.

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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 problemin its products before expiry then they replace the product.

Service/Support: Dabur foods provide full support to its stockiest, retailers and

consumers, what so ever the problem is

Price

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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 itsstockiest, 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.

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

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Media: Media of promotion is TV, Radio, newspapers, magazine.

Budget: Budget is Decided by finance team for different strategic business unit.

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 tothem. 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; salespeoplehave 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

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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 purchaseafter 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)

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.

Supply Chain Management:

Supply chain management starts before physical distribution: it involves procuringthe 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

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help them improve productivity, which ultimately brings down the companys

costs.

A broader view sees a company at the center of a value networkthat includes

its suppliers, its immediate customers and their end customers. The value networkincludes 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.

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:

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Approval and coordination of the supply of packaging material to the

production unit

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 tothem, 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 dont 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.

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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 reportis also prepared which is further analyzed by ASM & ZSM.

In Noida Dabur has 1 stockist, and in Ghaziabad 1

D.

RETAILERS

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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 10,000B 5,000-10,000C 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

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

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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

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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

worlds herbal hair oil, shampoos and hair creams market. The Rs 1,232-croreFMCG major has also decided to give a new impetus to its international food

supplement brand, Nature4u, by now launching it in the burgeoning Gulf

market. It is currently being sold only in UK and EU. We have drawn an

aggressive plan to launch Dabur and Vatika globally, starting from the Middle East

, GCC and SAARC countries. We expect our market share to double within two

years in the 10 countries we will focus on initially, said Mr Arvind Kumar, CEO,Dabur International. The 10 top-of-mind markets for Dabur right now are UAE,

Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and

Nigeria.

To develop Dabur International as its major overseas hub to service all markets

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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

HLLs 53%, and a 12% share in the oral care segment against Colgates 46%.

Company officials believe that low market share means that there are substantial

growth opportunities even if these categories do not grow. Our market shares are

low in some segments. This gives us opportunity to penetrate these categories,

says Mr Narang.

Drivers of growth: For the future, Dabur has identified foods, home care

products, skin care and OTC health care products as its growth engines. The

company plans to ramp up its home care business and in the food category it is

looking at expanding its Hommade range of cooking pastes and purees. In the skin

care segment, the company launched the Dabur Anmol cold cream last year and its

Vatika honey and saffron soap is currently under test launch.

Expansion in south India: Dabur is looking at expanding its business in south

India, which currently accounts for around 15% of its total sales.

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Objectives of the Study:-

To understand the demand pattern of Dabur Chyawanprash products in the

rural market.

To know the amount of household income spent on the consumption of

FMCG products of Dabur.

To understand the image of the products in the eyes of the consumers.

To analysis market petition strategy of Dabur for rural market.

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Research Methodology

Data collection

Sample unit:

1) working people (including men & women) & housewife

2) college students

3) school students

4) senior citizens5) Retailer

Sample size:

1. working people & housewife: 30%

2. college students: 25%

3. school students: 20%4. senior citizens: 10%

5. Retailer :10%

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Sampling techniques:

Judgmental sampling techniques used.

Sampling region:

Sampling region will be Ropar (punjab)

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.

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

Software.

8 DATA ANALYSIS

DABUR CHYAWANPRASH

1. AWARNESS LEVEL

2.PREFERRED BRAND

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0

0

0

0

0

0

0

ZANDU HIMANI BAIDYANATH DABUR

PERCENTAGE

3.SATISFACTION LEVEL

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4. REASONS FOR SELECTING A PARTICULAR BRAND

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5. FREQUENCY OF PURCHARE

0

10

20

30

40

50

60

ONE MONTH TWO MONTHS SIX MONTHS

PERCENTAGE

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RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

2.Out of these which are the most preferred?

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

4.What is the profile of your typical consumer?

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5.What schemes are you offered by the companies?

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6.What schemes does a consumer prefer most?

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

eference?

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8.Do a change in price affect their preferences?

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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 ofayurveda and herbs with modern science.

Provide consumers with innovative products within easy reach.

Vatika hair care centre: On the lines of Maricos Kaya Skin Clinic, Dabur

could start a venture called Vatika hair care centre which would provide total

hair care solutions. It could have hair care experts to solve hair

problems.Services could include dandruff treatment, straightening of hair,

treatment for split ends,etc.

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

which is necessary for health.

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

initiative to occupy shelf space.

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COMPETITOR ANALYSIS

The key competitors of Dabur in the Chyawanprash segment are Baidyanath,

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

market.Dabur is India's largest Ayurvedic medicine supplier and the fourth largest

producer of FMCG. It was established in 1884, and had grown to a business level

in 2003 of about 650 million dollars per year, though only a fraction of that is

involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a

market share of 61%.

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

as follows:

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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

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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.

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TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for the aged

and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth

and kids .This it is trying to achieve through its promotion activities by making

Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been

projected as a user of Chyawanprash attempting to establish the relevance of DCP

amongst the adults in todays demanding lifestyle. Vivek, who represents an urban

ambitious non-user with a mindset that Chyawanprash is not for him, meets his

moment of truth when outperformed by a young Chyawanprash user, thus reaching

out to kids. His final conversion from a non-user to a Chyawanprash user connects

with the Youth. These two ads compliment each other and connect very well with

the targeted consumers

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POSITIONING

"Andar se strong: Dabur chyawanprash has the tag line "Andar se strong By

using a natural language instead of scientific language it is able to connect with the

consumers and is able to achieve a better positioning in the minds of the Indian

health conscious consumer. A category like Chyawanprash for instance needs to

understand that in employing the category language it loses any chance of

expressing its own benefit distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating

immune system, relieving stress, improving stamina, fighting aging through anti-

oxidant property, improving lung function, fighting respiratory infections &

building resistance to disease. The brand conveys this health conscious holistic

view of the product.

Brand Trust: Over 100 years of Daburs experience in Ayurveda ensures

selection, processing and quality control of right herbs along with scientific and

clinical studies makes DCP a trustworthy offering for consumers. Consumers

view DCP as a product by a trusted brand and therefore do not need to think twice

before making a purchasing decision.

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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 bediscussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The

mix shall be analyzed as followed:

Product

Price

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Place

Promotion

70

Product Price Promotion Place

ProductVariety

Quality

Design

Features

Brand

Names Services

List Price Discount

Financing

Schemes

Credit

Terms

Advertising &Promotion

Public Relations

Sponsorships

Internet

Marketing

Channels Location

Inventory


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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.

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Special

Vishwast fortified with additional health beneficial herbs like

Keshar, Akarkara etc.

Packaging:

n

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.

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1. One kilogram pack

2. 500 gram pack

3. 250 gram pack

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

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Price

Quality

High Middle Low

High

Luxury

Segment

Ideal For Penetration

DABUR

CHYAWANPRASH

Premiere

Offering

MiddleOverpriced Average Real

Bargain

Low

Make The

Sale and

Run

Unhappy Customers Cheap

Goods

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.

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Daburs distribution network extends beyond India in the following countries as

well:

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.

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Advertising

Nothing can happen without establishing the brands heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective

buyers. Ads are necessary because the images are still mouldable and fluid and

the consumers sophistication level is low. Dabur chyawanprash is advertised

on print media as well as on television.

The company has launched two ads, one each with Amitabh and Vivek, in

national electronic media followed by a series of print media campaign directed

towards creating awareness to educate people about the holistic benefits of

Chyawanprash.The ads have been created by McCann Ericsson and the company

would be spending close to Rs 10 crore in promotional campaign this year. The ads

would also be translated in Bengali. These advertisements are supposed to target

the old and the younger generation respectively

Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian

cricket team

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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 consumers 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 hasclearly 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.

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

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found that target Market ofChyawanprash 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 otherbrand to Dabur brand .

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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

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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

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3

4

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

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7.Which pack size do you prefer?

1 kg 500 gm

250 gm

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

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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

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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

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Himani

Baidyanath

Dabur

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

Brand loyalty

Price

Availability

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

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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?

a. One week

b. Two weeks

c. Monthly

:

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27172615 Marketing Strategy of Dabur Chwanprash

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Transcript of 27172615 Marketing Strategy of Dabur Chwanprash