Market Research Case Study Dabur Chvawanprash

Marketing ResearchMarketing Research

A case study onA case study on

‘‘Market Expansion Strategy Of Dabur With

Special Reference To Dabur Chyawanprash

for Rural Market in India’’for Rural Market in India’’

VikasVikas MisarMisar1Vikas Misar

OVERVIEW OF FMCG SECTOR OVERVIEW OF FMCG SECTOR

IN INDIAIN INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a well-established distribution network, intense competition 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.

2Vikas Misar

THE SIZE OF RURAL MARKETTHE SIZE OF RURAL MARKET

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 of rural households are expected to rise from 135 resides in the rural areas. The total number of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. 3Vikas Misar

COMPANY OVERVIEWCOMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through a natural has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm.

4Vikas Misar

RURAL AND URBAN POTENTIALRURAL AND URBAN POTENTIAL

URBAN RURAL

Population 2001-02 (Mn

Household)

53 135

Population 2009-10 (Mn

Household)

69 153

% Distribution (2001-02) 28% 72%% Distribution (2001-02) 28% 72%

Market (Town/Villages) 3,768 627,000

Universe of Oulets (Mn) 1 3.3Source: Statistical Outline of India (2008-09), NCAER

An average Indian spends around 40% of his income on

grocery and 8% 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 markets5Vikas Misar

DABUR AT A GLANCEDABUR AT A GLANCE

• Leading consumer goods company in India with a turnoverof 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, and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.

• 13 ultra-modern manufacturing units spread around the globe

• Products marketed in over 50 countries

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

6Vikas Misar

DABUR CHYAWANPRASHDABUR CHYAWANPRASH

1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional

Ayurvedic products continues. The ancient Ayurvedic products continues. The ancient

restorative Chyawanprash is launched in

packaged form, and becomes the first branded

Chyawanprash in India.

7Vikas Misar

8Vikas Misar

SWOT ANALYSIS OF DABURSWOT ANALYSIS OF DABURSTRENGTHS

-- Strong presence in well defined niches (like value added

Ayurveda specialities)

-- Core knowledge of Ayurveda as competitive advantage

-- Strong Brand Image

-- Product Development Strength

-- Strong Distribution Network

-- Extensive Supply Chain

WEAKNESS

-- Seasonal Demand (chyawanprash in winter)

-- Low Penetration (Chyawanprash)

-- High price

-- Limited differentiation

-- Unbranded players account for the 2/3rd of the total

market

-- IT Initiatives

-- R & D – a key strength

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)

-- New Entrants

-- Threat from substitutes.

9Vikas Misar

A SUMMARY TABLE OF THE A SUMMARY TABLE OF THE

MARKETING MIXMARKETING MIX

Product Price Place Promotion

Functionality

Appearance

List price

Discounts

Channel members

Channel motivation

Advertising

Personal selling

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

aspects of each of the 4Ps.aspects of each of the 4Ps.

Quality

Packaging

Brand

Warranty

Service/Support

Allowances

Financing

Leasing options

Market coverage

Locations

Logistics

Service levels

Public relations

Message

Media

Budget

10Vikas Misar

OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY

•• To understand the demand pattern of To understand the demand pattern of DaburDabur

ChyawanprashChyawanprash products in the rural market. products in the rural market.

•• To know the amount of household income To know the amount of household income

spent on the consumption of FMCG products spent on the consumption of FMCG products spent on the consumption of FMCG products spent on the consumption of FMCG products

of of DaburDabur..

•• To understand the image of the products in To understand the image of the products in

the eyes of the consumers.the eyes of the consumers.

•• To analysis market petition strategy of To analysis market petition strategy of DaburDabur

for rural market.for rural market.11Vikas Misar

RESEARCH METHODOLOGYRESEARCH METHODOLOGY

Sample unit:

• working people

(including men &

Sample size:

• working people &

housewife : 30%

Data collection

(including men &

women) & housewife

• college students

• school students

• senior citizens

• Retailer

housewife : 30%

• college students : 25%

• school students : 20%

• senior citizens :10%

• Retailer :10%

12Vikas Misar

RESEARCH METHODOLOGY CONTRESEARCH METHODOLOGY CONT

• Sampling techniques:

Judgmental sampling techniques used.

• Sampling region:

Sampling region will be SAHAPUR in Maharashtra.Sampling region will be SAHAPUR in Maharashtra.

Data collection method:

• Primary data: It will be collected with the help of a

self administered questionnaire.

• Secondary data: it will be collected with the help of

books, research papers, magazines, news papers,

journals, internet, etc. 13Vikas Misar

RESEARCH INSTRUMENTSRESEARCH 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 to all respondent. Also technical jargons will be avoided to ensure that there is no confusion for respondents.

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

14Vikas Misar

DATA ANALYSIS DATA ANALYSIS -- CONSUMERCONSUMER

1. AWARNESS LEVEL

15Vikas Misar


2. PREFERRED BRAND

16Vikas Misar


3.SATISFACTION LEVEL

17Vikas Misar


4. REASONS FOR SELECTING A PARTICULAR BRAND

18Vikas Misar


5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND

19Vikas Misar


6. UNAVAILABILITY OF PREFERRED BRAND

20Vikas Misar


7. PREFERRED PACK SIZE

21Vikas Misar


8. REASON TO SELECT PREFERRED PACK SIZE8. REASON TO SELECT PREFERRED PACK SIZE

22Vikas Misar


9. FREQUENCY OF PURCHARE

50

60

0

10

20

30

40

50

ONE MONTH TWO MONTHS SIX MONTHS

PERCENTAGE

23Vikas Misar


24Vikas Misar


25Vikas Misar

RETAILER SURVEY RESULTSRETAILER SURVEY RESULTS

1. Which brands of Chyawanprash do you stock?

26Vikas Misar


2.Out of these which are the most preferred?

27Vikas Misar


3. According to you what are the reasons for

customers’ preferences?

28Vikas Misar


4.What is the profile of your typical consumer?

29Vikas Misar


5.What schemes are you offered by the

companies?

30Vikas Misar


6.What schemes does a consumer prefer

most?

31Vikas Misar


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

affect on the consumers’ preference?

32Vikas Misar


8.Do a change in price affect their preferences?

33Vikas Misar


34Vikas Misar

RECOMMENDATIONSRECOMMENDATIONS

• Focus on growing core brands across categories.

• Reaching out to new geographies, within Sahapur 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 efficacious, natural solutions by synthesizing the deep

knowledge of ayurveda and herbs with modern science.

• Provide consumers with innovative products within easy

reach.

• 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.35Vikas Misar

CONCLUSIONSCONCLUSIONSThe Chyawanprash Industry is yet to capture the beverage

market in full swing. The consumer’s patriotic love for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use in the average household here in lies the great opportunities. Within the market, it is safe to conclude that dabur has hit off ratherwell with the masses. Dabur has clearly lost it head start advantage and thereby acquiring just 35% of the market share while others enjoys rest of the market share. This could be well 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.Thebrands 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.

36Vikas Misar

THANK YOUTHANK YOU

37Vikas Misar

Market Research Case Study Dabur Chvawanprash

Documents

Transcript of Market Research Case Study Dabur Chvawanprash