1

Introduction to the Topic

The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started a health

care products manufacturing facility in a small Calcutta pharmacy. In 1896, as a result

of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for

mass production of formulations. In early 1900s, Dabur entered the specialized area of

nature based Ayurvedic medicines. In 1919, Dabur established research laboratories to

develop scientific processes and quality checks. In 1936, Dabur became a full-fledged

company with the name Dabur India (Dr. S.K. Burman) Pvt Ltd. Dabur shifted its

operations to Delhi in 1972. Dabur became a Public Limited Company in 1986 and

Dabur India Limited came into existence after reverse merger with Vidogum Limited.

In 1992, Dabur entered into a joint venture with Agrolimen of Spain to manufacture

and market confectionary items in India. In 1994, Dabur raised its first IPO. In 1998,

day to day running of the company was handed over to professionals. In 2000, Dabur

achieved a turnover of Rs 1000 crores. In 2005, Dabur acquired Balsara. Dabur crossed

$ 2 billion market cap in 2006. Some of the well-known brands of Dabur are: Amla

Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool

Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and

Vatika.

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3

COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through a

natural lifestyle. An umbrella name for a variety of products, ranging from hair care to

honey, Dabur has consistently ranked among India’s top brands. Its brands are built on

the foundation of trust that a Dabur offering will never cause one harm.

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

may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is

fairly simple, it stands for India’s fourth largest fast moving consumer goods company

that both consumers and trade respect and trust unequivocally, and which has an annual

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.

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

abundance of information for its investors and prospective information including a

daily update on the share price (something that very few Indian

brands do). There’s a great sense of responsibility for investors’ funds on view. This is

a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to

the sense of trust for the brand overall.

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COMPANY PROFILE

5

COMPANY HISTORY

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.

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 specialization. It is

the first Company to provide health care through scientifically tested and

automated production of formulations based on our traditional science.

1930 - Automation and up gradation of Ayurvedic products manufacturing

initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda, with the

launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest

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

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first branded Chyawanprash in India.

1957 - Computerization of operations initiated

1970 - Entered Oral Care & Digestives segment

Addressing rural markets where homemade oral care is more popular than

multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently

packaged herbal toothpowder is made available at affordable costs to the masses.

1972 - Shifts base to Delhi from Calcutta

1978 - Launches Hajmola tablet

Dabur continues to make innovative products based on traditional formulations that

can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive

aid is branded and launched as the popular Hajmola tablet.

1979 - Dabur Research 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

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

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1996 - Real blitzkrieg

Dabur captures the imagination of young Indian consumers with the launch of Real

Fruit Juices - a new concept in the Indian foods market. The first local brand of

100% pure natural fruit juices made to international standards, Real becomes the

fastest growing and largest selling brand in the country.

1998 - Burman family hands over management of the company to professionals

2000 - The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of Rs.1, 000

crores. Across a span of over 100 years, Dabur has grown from a small beginning

based on traditional health care. To a commanding position amongst an august league

of large corporate businesses.

2001 - Super specialty drugs

With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains

entry into the highly 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.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore

PRODUCT LINE

Foods8

Real

Real Activ

Hommade

Lemoneez

Capsico

Health Care

Baby Care

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

Health Supplements

Dabur Chyawanprash

Dabur Glucose D

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Hajmola Yumstick

Hajmola Mast Masala

Anardana

Hajmola

Hajmola Candy

Hajmola Candy Fun 2

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

Natural Cures

Shilajit Gold

Nature Care

Sat Isabgol

Shilajit

Ring Ring

Itch Care

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Backaid

Shankha Pushpi

Dabur Balm

Sarbyna Strong

Personal Care

Hair Care Oil

Amla Hair Oil

Amla Lite Hair Oil

Vatika Hair Oil

Anmol Sarson Amla

Hair Care Shampoo

Anmol Silky Black Shampoo

Vatika Henna Conditioning Shampoo

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care

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Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

Dabur Binaca Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda12

Ayurveda Vikas

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COMPANY PROFILE

ITC is one of India's foremost private sector companies with a market

capitalization of over US $ 7.5 billion and a turnover of US $ 2.6 billion.

Rated among the World's Leading Companies by Forbes magazine, ITC

ranks third in pre-tax profit among India's private sector corporations. ITC

has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods &

Confectionery, Greeting Cards and other FMCG products. While ITC is an

outstanding market leader in its traditional businesses of Cigarettes, Hotels,

Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share

even in its nascent businesses of Branded Apparel, Greeting Cards and

Packaged Foods & Confectionery.

As one of India's most valuable and respected corporations, ITC is widely

perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls

this source of inspiration "a commitment beyond the market". In his own

words: "ITC believes that its aspiration to create enduring value for the

nation provides the motive force to sustain growing

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shareholder value. ITC practises this philosophy by not only driving each of

its businesses towards international competitiveness but by also

consciously contributing to enhancing the competitiveness of the larger

value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at

creating multiple drivers of growth anchored on its time-tested core

competencies: unmatched distribution reach, superior brand-building

capabilities, effective supply chain management and acknowledged service

skills in hoteliering. Over time, the strategic forays into new

Businesses are expected to garner a significant share of these emerging

high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural

products. ITC is one of the country's biggest foreign exchange earners (US $

2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling

Indian agriculture significantly enhance its competitiveness by empowering

Indian farmers through the power of the Internet. This transformational

strategy, which has already become the subject matter of a case study at

Harvard Business School, is expected to progressively create for ITC a huge

rural distribution infrastructure, significantly enhancing the Company's

marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India

Limited, is aggressively pursuing emerging opportunities in providing end-

to-end IT solutions, including e-enabled services and business process

outsourcing.

ITC's production facilities and hotels have won numerous national and

international awards for quality, productivity, safety and environment

management systems. ITC was the first company in India to be rated for

Corporate Governance by ICRA, an associate of Moody's Investors Service,

which accorded it the second highest rating, signifying "a high level of

assurance on the quality of corporate governance."

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ITC employs over 15,000 people at more than 60 locations across India.

Ranked among India's most valuable companies by the 'Business Today'

magazine, ITC continuously endeavors to enhance its wealth generating

capabilities in a globalising environment to consistently reward more than

1, 37, 916 shareholders, fulfil the aspirations of its stakeholders and meet

societal expectations. This over-arching vision of the company is

expressively captured in its corporate positioning statement: "Enduring

Value. For the nation. For the Shareholder."

Key points

Strong volume growth in the core cigarette business in Q1FY2005—11%

year-on-year, among the highest in the previous ten quarters.

This is the third consecutive year of no excise duty increase and the second

year of no price hike in cigarettes, leaving scope for the company to hike

cigarette prices and boost its profits further.

Diversification is paying off with non-cigarette businesses like hotels, paper

and agri-products turning around.

The stock is presently quoting at 14.3x FY2005 earnings, which is

attractive, and we recommend buying this stock.

ITC's core business of cigarettes, we believe, will continue to grow at

4% in FY2005 in volume terms. Besides, it has made an entry into

bakery and other fast moving consumer goods (FMCG) product lines

(such as soaps and detergents),

which will benefit from its strengths in distribution. Meanwhile almost

all of ITC's earlier diversifications are paying off—the hotels, paper

and the agri-product ventures are likely to return the cost of capital

invested in the next couple of years. ITC quotes at 14.3x FY2005E

earnings. Its capital expenditure needs are limited and litigation risks

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have all but disappeared. Hence we expect higher dividend pay-outs.

We recommend buying this Apple Green stock

Key highlights of Q1FY06 results and interaction with ITC management

Core cigarette business growth of 11% in Q1FY05 partially due to early

stocking at the dealer end in anticipation of a hike in excise duty in the

Union Budget presented in July 2004.

Our reading is that volume growth in cigarettes stood at a strong 7-7.5% in

Q1FY2005 (adjusted for the inventory build-up prior to the budget).

Filter cigarettes now account for over 77% of overall turnover.

The market share of ITC in cigarettes is around 69%.

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Growth in the agri segment was led by increased sales of soya in the

quarter.

Substantive increase in capacities in paper and paperboards with expansion

at the Bhadrachalan plant (to be completed by October 2004) and the

65,000tpa (which was acquired by ITC from BILT) located at Kovai

commenced production during the quarter.

Increase in other expenditure mainly coming from increased advertisement

spends before the "Cigarettes and Other Tobacco Products (Prohibition of

Advertisement and Regulation of Trade and Commerce, Production, Supply

and Distribution) Act, 2003"

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History of ITC Ltd

ITC was incorporated on August 24, 1910 under the name of 'Imperial

Tobacco Company of India Limited'. Its beginnings were humble. A leased

office on Radha Bazar Lane, Kolkata, was the centre of the Company's

existence. The Company celebrated its 16th birthday on August 24, 1926,

by purchasing the plot of land situated at 37, Chowringhee, (now renamed

J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the

Company was historic in more ways than one. It was to mark the beginning

of a long and eventful journey into India's future. The Company's

headquarter building, 'Virginia House', which came up on that plot of land

two years later, would go on to become one of Kolkata's most venerated

landmarks. The Company's ownership progressively Indianised, and the

name of the Company was changed to I.T.C. Limited in 1974. In recognition

of the Company's multi-business portfolio encompassing a wide range of

businesses - Cigarettes & Tobacco, Hotels, Information Technology,

Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle

Retailing and Greeting Gifting & Stationery - the full stops in the Company's

name were removed effective September 18, 2001. The Company now

stands rechristened 'ITC Limited'.

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Though the first six decades of the Company's existence were primarily

devoted to the growth and consolidation of the Cigarettes and Leaf

Tobacco businesses, the Seventies witnessed the beginnings of a

corporate transformation that would usher in momentous changes in the

life of the Company.

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The Core Competency

ITC is the market leader in cigarettes in India. With its wide range of

invaluable brands, it has a leadership position in every segment of the

market. It’s highly popular portfolio of brands includes India Kings, Gold

Flake, Wills, Scissors, Capstan, Berkeley and Bristol.

ITC's leadership is founded on its core strategy of

continuously enhancing product values through

significant investments in product design,

manufacturing technology, quality,

marketing and distribution. In just the last

5 years, ITC has made capital investments

of over Rs. 7 billion in its cigarettes

business. In ITC, one of the pioneers of market research in India, the

consumer is still the King. The Company continuously endeavours to

provide its consumers products that are benchmarked to international

quality. This strategic focus on the consumer has paid ITC

handsome dividends. The most important of these is its enriched

product mix, unmatched by competition. ITC's share of filter cigarettes

in the country is more than 70%.

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In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-Val, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in

the Middle East. The response to these brands has been encouraging. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of productivity and very contemporary work environment.

ITC's FMCG businesses have one of the largest retail networks in

the country, consisting of over 2 million retailers. Its reach covers a

wide range of the retail spectrum, from premium outlets in the metros to

small shops in the interiors of rural India.

In Q1FY2005, cigarette volumes registered an increase of 11% year

on year, which is among the highest growth rates seen in the

previous ten quarters (see chart below). We believe that a part of this

surge in volumes may be the normal build-up of stocks at the dealer

level prior to the announcement of the Union Budget. As per our

estimates the growth in cigarette volumes for Q1FY2005 stood at 7-

7.5%, which is still higher than the 4% growth clocked over the past

four quarters.

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ITC's Cigarettes business has won numerous awards for its quality,

environmental management systems and product excellence:

The Kolkata factory has won the prestigious Greentech Safety Gold

Award for the year 2003-2004 in the manufacturing sector. This award is in

recognition of the high level of performance that the unit has achieved in

Environment Health & Safety (EHS).

ITC's cigarette factories in Kolkata, Bangalore and Munger have

been awarded the OHSAS:18001 Certificate by Det Norske Veritas

(DNV) for their Occupational Health and Safety Management

Systems (OHSMS).

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The Kolkata factory has been placed First in Category 'B' for having made

the best efforts towards Safety Management in the Safety Contest of the

Confederation of Indian Industry-Eastern Region (CII-ER).

ITC has been awarded the "Best Manufacturer of Cigarettes" and "3rd Best

Exporter of Tobacco Products" for 2003, by the Tobacco Board of India.

The Saharanpur factory has won the "GOLD" Award, 2003 on Occupational

Safety from The Royal Society for the Prevention of Accidents (RoSPA), UK.

The Kolkata factory was the first cigarette factory in the world to

receive the ISO 14001 accreditation for their environmental management

systems. The Saharanpur and Bangalore factories have also received the

ISO 14001 certification.

The Munger, Saharanpur and Bangalore factories have received the

prestigious Sword of Honour Award from the British Safety Council

for highest standards of safety.

All cigarette factories have ISO 9002 quality certification. ITC's Tobacco

Technology Centre at Peenya, Bangalore has the distinction of being

the first independent R&D centre in India to get ISO 9001 accreditation.

The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best

in Eastern Region) for 1998.

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PARENT UNIT OF ITC LIMITED

Registered Office

Virgina House

37 Chowringhee

Calcutta 700 071

Ph: (09133) 288 6426/226/0034

Fax: (09133) 217/2258

Email: itcses@cal3.vsnl.net.in

Plant location

SAHARANPUR

BANGALORE

CHENNAI

CALCUTTA

WEST BENGAL

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SISTER CONCERNS COMPANIES

A. IN INDIA

ITC Bhadrachalam Paperboards Ltd (56.00%)

BFIL Finance Ltd (99.99%)

BFIL Securities Ltd (99.98%)

MRR Trading & Investment Ltd (99.98%)

ITC Hotels Ltd (71.23%)

Srinivasa Resort Ltd (68%)

Bay Island Hotels Ltd (100%)

Greenace Holding Ltd (100%)

Fortune Park Hotel Ltd (99.99%)

Russell Credit Ltd (100%)

ITC Infotech Ltd (100%)

All India Tobacco Company Ltd (100%)

Elan Enterprises Ltd (100%)

ITC Global Holdings Pvt Ltd (100%)

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Brands

SNo.

Name of the Product Multi National Company

01. India King Indian Tobacco Company

02. Classic Indian Tobacco Company

03. Gold Flakes Indian Tobacco Company

04. Gold Flakes King Indian Tobacco Company

05. Filter Indian Tobacco Company

06. Wills Indian Tobacco Company

07. Wills Light Indian Tobacco Company

08. Wills King Indian Tobacco Company

09. Wills Filter Indian Tobacco Company

10. Wills Flakes Indian Tobacco Company

11. Silk cut Indian Tobacco Company

12. Tiger Indian Tobacco Company

13. Charms Filter King Wazir Sultan Tobacco

14. Charms Wazir Sultan Tobacco

15. Charminar Wazir Sultan Tobacco

16. Charminar Special Wazir Sultan Tobacco

17. Cavenders Godfrey Phillips India Ltd.

18. Cavenders Filter Godfrey Phillips India Ltd.

19. Cavenders Leaf Godfrey Phillips India Ltd.

20. Uttam Brooke Bond India Ltd.

21. Cavenders Magnum Godfrey Phillips India Ltd.

22. Four Square King Godfrey Phillips India Ltd.

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23. Four Square Filter Godfrey Phillips India Ltd.

24.Four Square Special

FilterGodfrey Phillips India Ltd.

28

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Research Methodology

Research Plan

Data source : Primary data and secondary data

Research approach : Observation & Survey

Research instrument : Questionnaire for consumers, retailers & dealers

Sampling Plan : Sampling unit Sample size 100, Sampling

procedure random

Contact method : Personal

Field work plan : Survey place & time

Research & common platform, refer to a knowledge. Another definition of research & a

careful investigation or enquiry specially through search for new fact in any brand of

knowledge.

Before embarking upon the research plan the research objective were specified. The

clarity of the objective was helpful in carrying forth the project plan with core & with

encumbrance.

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Methodology used in survey

Data collection : A structure from which is primary. In this sources of information was

used in this research was designed in order to find out the various record information &

also to fulfill the objectives of the project.

All form filled by myself taking a part of on English. Some question were framed in the

forms in directly so as to gather the information which …. Would have been asked

directly might have offered the retailers so that this had to be frame indirectly.

Sample Selection : Area of study: I choose the routes to know the market conditions of

the DABUR and ITC

Methodology Adopted

As the purpose of the project report is to analyse the consumable products successfully

launched in the last three years.

The data was collected both with the help of primary as well as secondary sources.

For primary data, I proceeded with the drafting of the questionnaire for consumers was

structured as undisguised, & Personal -interview retailers. Distributors & wholesalers

and it was handed personally by me to the respondents to be analysed.

The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained by just asking

the questions.

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c) Questioning is usually faster and cheaper.

d) Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the company has furnished

for the general public. The secondary data was gathered with the help of various

magazines, newspapers, journals, brochures and also through the internet. For

secondary sources no field work was employed.

In order to amplify the empirical findings from primary and secondary sources, a

survey was conducted both of consumers and retailers Distributor & Wholesalers in

order to gauge the market opinion.

The questionnaire was of multiple choice and the pattern of questions was as simple as

possible. With every question, multiple choices were given and

respondents were asked to select one of them. The questionnaire technique was

structured and not disguised as the questions followed one pattern and reason behind

the questionnaire was stated properly. All the questions were directly related to the

subject.

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For Dabor Chyawanprash and Vatika hair oil.

1) Sample size for customers were 150 in number and the universe comprised of

all the consumers within the geographical region of Delhi.

2) Sample size for retailers were 40 in number and the universe comprised of all

the consumers within the geographical region or Delhi.

3) Sample size for Distributor & Wholesaler were four in number & the universe

comprised of all the consumers within the geographical region of Delhi.

For ITC I selected same questions for ITC Personnel care Products

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34

SWOT ANALYSIS OF DABUR

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

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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)

36

SWOT ANALYSIS OF ITC LTD.

Organization performs SWOT(Strength, Weakness, Opportunity, Threats) analysis to identify

and evaluate their competitive position.

STREGTHS:

The company has excellent distribution system.

The company has built a strong image among the customers.

The company has an excellent distribution system.

The company experiences excellent Brand loyalty for its Products from the customers.

The company has made its Packaging attractive which lures the customers and

consequently the products are favorite among the customers.

WEAKNESSES

Some products have high prices as compared to the other products OF Godfrey Philips

India Ltd. & Gallaher Group.

The company branches are not spread through out the region; as a result load of the

work at the regional offices are tremendous.

The company pays less attention towards advertisement as against its competitors.

The brewery of the company is old and not up to expectation of modern times.

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OPPORTUNITIES

India has a vast potential market, which the company can get hold up.

The company can prove to be major threats for its competitor’s if it increases its

marketing efforts.

ITC Ltd. should concentrate on the premium segment market.

THREATS

The major threat that company faces is from its competitors who are introducing products with

more features at lower cost backed by aggressive promotional scheme .

The new packaging style introduce by the company for the beer i.e. in Tin is posing

threat to the existing bottle packing system.

The arrival of the MNC is a major serious threat for the company.

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STP ANALYSIS OF VATIKA HAIR OIL

SEGMENTATION

Vatika Hair Oil was launched at an almost 100% premium to the market leader.

This meant that the segment of the market that dabur wanted to cater to was the

premium segment which valued nourishment of the hair above the price and it

tried to attend to that segment which was not price sensitive.

TARGETING

This was in line with its proposition and overall brand strategy of a premium up-

market product targeted for individual needs as opposed to the collectivist culture of

the category. It targeted the high income urban category of hair oil users. Since the

product was expensive it could mainly cater to the urban market as opposed to the

rural market where consumers are highly price sensitive. Being positioned as having

amla, henna and lemon extracts, the product was targeted towards the young,

contemporary, educated, multi-faceted, achievement-driven and confident women

who were positioned as the Vatika Woman.

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POSITIONING

‘Total hair Care’ brand’

The product innovation was fed by the vital consumer insight that many women

in contemporary India are worried about hair problems caused by urban

pollution, frequent change of diet due to geographical mobility and other factors.

Beset by modern-day hair problems, they are far more inclined to rely on home-

grown remedies. By offering hair oil that combined the benefits of natural

products in a single pack, Vatika created a niche for itself as the ‘total hair care’

brand.

“Natural” offering

Vatika is a brand that espouses traditional wisdom about health in a modern

format. It believes that nature has perennial answers to day-to-day health issues,

particularly when it comes to hair care and skin care. In a world where modern

living causes untold stress the Vatika brand holds out the promise of providing

natural ingredients that rejuvenate and safeguard the human body in an

extraordinary way. This concept is put to work through contemporary, modern

products, offered by Vatika.

The Vatika woman

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The Vatika woman is young, contemporary, educated, multi-faceted,

achievement-driven and confident. It is in the Vatika brand that she sees a true

reflection of her own personal ideals.Through creation of the concept of Vatika

woman,it has tried to carve out a new positioning in the minds of the new age

woman.

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MARKETING MIX OF VATIKA HAIR OIL

Vatika Hair Oil has made a huge impact with its innovative product offering, pricing

strategy, easy availability and promotion campaigns. In the marketing mix of Dabur,

we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The

mix shall be analyzed as followed:

Product

Price

Place

Promotion

Product Price Promotion Place

• Product

Variety

• 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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PRODUCT

Brand Name: Vatika in Hindi means ‘garden’. The brand

attempts to live up to the promises – beauty and nature –

that are associated with its very name. Starting with these

associations Vatika has assiduously built a brand that

delivers on all these values through its various product

offerings, the mother brand being Vatika Hair Oil..

Innovative product offering:. Vatika Hair Oil is coconut

hair oil with special ingredients adding value to the product. While coconut oil

has been regularly used by Indian women as a basic hair nutrient, a combination

of herbs and natural products such as henna, amla and lemon have been used

for special hair needs.

Coconut hair oil provides nourishment to the hair, while henna along with other

herbs coat the hair and protect it from oxidation, thereby maintaining its natural

colour. Amla strengthens hair roots and helps maintain their natural health and

thickness. Lemon with its astringent action controls sebum flow and helps in

prevention of dandruff.

Apart from henna, amla and lemon, it also contains other natural ingredients like

brahmi, neem, bahera, kapur, kachari, harar, dugdha and sugandhit

dravyas.

43

Packaging: The qualities of Vatika products, ascribed to the brand by hundreds

of thousands of satisfied consumers, have been further underlined by its

attractive packaging. In a category dominated by blue

packs as analogous of pure coconut oils, Vatika broke the norm with its white

and green bottle with a mushroom cap.The green-and-white colours, used in its

packaging, reflect the brands’ natural ancestry and give it a premium look.

These also help Vatika stand out in the cluttered environment of Indian retail.

Available in

Bottles 75 ml, 150 ml, 300 ml

Flip cans 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality Vatika products contain natural ingredients that have been blended together

through scientific processes at Dabur’s in-house research laboratories. Dabur Research

Foundation has more than 100 scientists working together to make superior quality

products that match international standards.

44

PRICE

In the traditional coconut hair oil category, which presumably had price sensitive

consumers, Vatika Hair Oil with its value added proposition – henna, amla and

lemon in a pure coconut oil – broke this myth when it launched at almost a

100% premium to the market leader; even with such a pricing strategy it was

able to garner a significant share from the leader in the very first year of its

launch.

The table above shows that Dabur Vatika is one of the highest priced of hair oils

since it targets the higher income class and also that the prices have remain

unchanged since 1999.

45

PRICE/QUALITY MATRIX

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

VATIKA

Ideal For

Penetration

Premiere

Offering

Middle

Overpriced Average Real

Bargain

Low

Make The Sale

and Run

Unhappy

Customers

Cheap

Goods

46

PLACE

Vatika products including Vatika Hair Oil are sold in 38 countries through more

than 15 lakh retail outlets and 5,000 distributors who service the entire country

through a wide marketing network.

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

Distribution Network

Central, North & South America

47

Australia

Asia

Middle East

North & South Africa

East & West Europe

48

PROMOTION

Vatika – the key focus brand of the company – has always been well

supported. The company realised early that, from the perspective of brand

building, it was vital to invest in this brand.

.

Vatika Hair Oil’s first promotion: It focussed on the key benefit –

beautiful hair without hair problems – that came about as a result of the extra

nourishment through the value addition of henna, amla and lemon-derived

additives.

Creating conceptual awareness: In the initial phase of the communication,

the marketing objective was to create conceptual awareness about the new

product – the goodness of coconut oil

49

enriched with natural herbs. Vatika was firmly established as the leader in

the new category of value-added hair oils and its promotion campaign was so

successful that the product segment itself came to be identified with Vatika.

In 1997, the company created a new promotion campaign which reinforced

the obvious fact that most coconut oil brands were not equipped to combat

the effects of pollution, hard water and chemicals – the major causes of hair

ailments and hair deterioration.

ADVERTISING

“Advertising is some form of paid-for method of communicating with the target

audience to inform, educate, reinforce or persuade, leading to mutually

satisfactory exchange”

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective

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

the consumer’s sophistication level is low.

Vatika Hair Oil uses a number of advertising media like television, print,

internet, outdoor media which includes hoardings.

Events: In a series of other promotional activities, Vatika has been associated

with shows and sponsored events such as the Vatika Super Model India 2001

50

and Vatika Zee Sangeet Awards. It has also had a strong association, since its

inception, with Mover’s and Shakers’ – the popular TV show.

Celebrity

Endorsements: The

idea of using an extraordinary

hair oil that offered extra

nourishment was

communicated through

campaigns featuring

icons such as Mandira

Bedi, Shefali Chhaya and Sudha Chandran– all modern,

young women perceived to have that extra edge in their

personality.A number of commercials over the years have

featured personalities like Aditi Govitrikar, Preeti Jhangiani

and Shweta Jaishankar.To infuse the values of youthfulness

and natural beauty, Rani Mukherjee is the current brand

ambassador

51

CUSTOMER SURVEY RESULTS

DABUR VATIKA

AWARNESS LEVEL

PARACHUTE KEO KARPIN NIHAR HAIR AND CARE

VATIKA

0

5

10

15

20

25

30

35

40

PERCENTAGE

PREFERRED BRAND

PARACHUTE KEO KARPIN NIHAR HAIR AND CARE

VATIKA

0

5

10

15

20

25

30

35

40

PERCENTAGE

52

SATISFACTION LEVEL

PARACHUTE KEO KARPIN NIHAR HAIR AND CARE

VATIKA

0

0.5

1

1.5

2

2.5

3

3.5

4

RATING(1-LOW 5-HIGH)

REASON TO BUY THE PREFFERED BRAND

NON STICKY BRAND LOYALTY

FRAGRANCE PRICE0

5

10

15

20

25

30

35

40

45

PERCENTAGE

53

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

TV INTERNET WOM PRINT0

10

20

30

40

50

60

70

80

PERCENTAGE

UNAVAILABILITY OF PREFERRED BRAND

PURCHASE ANOTHER BRAND

WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER

0

5

10

15

20

25

30

35

40

45

PERCENTAGE

PREFERRED PACK SIZE

54

75ml 150 ml 300 ml0

10

20

30

40

50

60

PERCENTAGE

REASON TO SELECT PREFERRED PACK SIZE

AVAILABILITY PRICE FAMILY SIZE STORAGE0

5

10

15

20

25

30

35

40

PERCENTAGE

55

FREQUENCY OF PURCHASE

15 DAYS ONE MONTH TWO MONTHS0

10

20

30

40

50

60

70

PERCENTAGE

56

RETAIL SURVEY RESULTS

DABUR VATIKA

1) Which brands of Hair Oil do you stock?

marico hll karrpikeo karpin vatika

0

10

20

30

40

50

60

70

80

PERCENTAGE

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

marico hll karrpikeo karpin vatika

0

5

10

15

20

25

30

35

40

45

50

PERCENTAGE

57

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

brand loyalty price availability no reason

0

5

10

15

20

25

30

35

40

45

50

PERCENTAGE

4) What is the profile of your typical consumer?

high income middle income low income

0

5

10

15

20

25

30

35

40

45

50

PERCENTAGE

58

5) What schemes are you offered by the companies?

price discount buy one get one others0

5

10

15

20

25

30

35

40

PERCENTAGE

6) What schemes does a consumer prefer most?

price discount buy one get one others0

10

20

30

40

50

60

PERCENTAGE

59

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

yes no0

10

20

30

40

50

60

PERCENTAGE

8) Does a change in price affect their preferences

yes no0

10

20

30

40

50

60

PERCENTAGE

60

STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes

under the category of health supplements. The segments that it considers are growing

kids, competitive youth, ever busy housewives and the aged.

For the growing kids: In today's competitive environment, the children are under high

pressure to excel.

For the competitive youth: Modern life keeps the youth busy and demands them to be

active and efficient.

For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all

responsibilities.

For the aged: Old age weakens a person physically and mentally.

After segmenting the population into these categories it aims to keep them fit and

healthy.

61

TARGETING

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

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

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

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

user of Chyawanprash attempting to establish the relevance of DCP amongst the adults

in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user

with a mindset that Chyawanprash is not for him, meets his moment of truth when

outperformed by a young Chyawanprash user, thus reaching out to kids. His final

conversion from a non-user to a Chyawanprash user connects with the Youth. These

two ads compliment each other and connect very well with the targeted consumers

62

POSITIONING

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

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

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

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

that in employing the category language it loses any chance of expressing its own

benefit distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating

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

oxidant property, improving lung function, fighting respiratory infections & building

resistance to disease. The brand conveys this health conscious holistic view of the

product.

Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection,

processing and quality control of right herbs along with scientific and clinical studies –

makes DCP a trustworthy offering for consumers. Consumers view DCP as a product

by a trusted brand and therefore do not need to think twice before making a purchasing

decision.

63

MARKETING MIX OF DABUR CHYAWANPRASH

Dabur Chyawanprash is the market leader in the chyawanprash segment and has

achieved this with its innovative product offering, pricing strategy, easy availability and

promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps

of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as

followed:

Product

Price

Place

Promotion

64

Product Price Promotion Place

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit

Terms

• Advertising &

Promotion

• Public

Relations

• Sponsorships

• Internet

Marketing

• Channels

• Location

• Inventory

65

PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash category and

enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept

of branded Chyawanprash and since has invested heavily in product

development, clinical studies and consumer awareness. The product is essentially a

health supplement.

Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in

maintaining smooth body functioning. The principal ingredient Amla (Indian

Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps

in stimulating immune system, relieving stress, improving stamina, fighting aging

through anti-oxidant property, improving lung function, fighting respiratory infections

& building resistance to disease. It is these properties that make Dabur Chyawanprash a

preferred choice for its users.

Ingredients of Dabur Chyawanprash

Vishwast

Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several

other herbs and herbal extracts.

Special

Vishwast fortified with additional health beneficial herbs like 

Keshar, Akarkara etc.

66

Packaging

The figure above shows the evolution of the packaging of Dabur Chyawanprash.

Dabur continuously innovates the package and branding of its chayawanprash. It

launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded

Chyawanprash in India. Later Dabur came out with its new packet of Chyawanprash

with Amitabh Bachchan as their brand ambassador. It also received “Brand

Relaunch of the Year “award from IMA.

Available in

Dabur Chyawanprash is available in three sizes to cater to the needs of different types

of people.

1. One kilogram pack

2. 500 gram pack

3. 250 gram pack

67

PRICE

The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses

second degree price discrimination i.e more the quantity, lower the price.

1kg Rs.175.00

500gms Rs.100.00

250gms Rs. 55.00

68

PRICE/QUALITY MATRIX

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

69

PLACE

Dabur has a very wide distribution of its products through 1.6 million retail outlets and

50 C & F agents all over India who distribute products to the retailers. A distribution of

C & F agents and manufacturing locations is given below.

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

70

Distribution Network

Central, North & South America

Australia

Asia

Middle East

North & South Africa

East & West Europe

71

72

PROMOTION

The main form of promotional activities of Dabur chyawanprash are concentrated

towards advertising and it has neglible sales promotional activities.

Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective buyers.

Ads are necessary because the images are still mouldable and fluid and the consumer’s

sophistication level is low. Dabur chyawanprash is advertised on print media as well

as on television.

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.

73

Advertisement showing Vivek Oberoi

A little boy suggests his brother To which the brother replies,

to have Dabur Chyawanprash “Mujhe iski kya zaroorat?

everyday.

The boy asserts, “Zaroorat The big brother follows him but

hai!” and starts running. is unable to catch him using every way.

74

75

Running with super energy the boy ...the big brother also dives in the

dives into the river. Not to be left behind... river but ultimately stops when he

get tired

With no option left he agrees The ad ends on the big brother

with his younger brother, “maan promising to have a spoon of the

gaye guru, tere Dabur chyawanprash everyday. But Our

Chyawanprash ko” younger one insists on two spoons.

76

COMPETITOR ANALYSIS

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

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

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of

FMCG. It was established in 1884, and had grown to a business level in 2003 of about

650 million dollars per year, though only a fraction of that is involved with Ayurvedic

medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.

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

follows:

77

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 Emami Group, founded in 1974, provides a diverse range of products, doing 110

million dollars of business annually, though only a portion is involved with Ayurvedic

products, through its Himani line; the company is mainly involved with toiletries and

cosmetics, but also provides Chyawanprash and other health products.Its market share

is 12%.

78

CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL

ZANDU HIMANI BAIDYANATH DABUR0

10

20

30

40

50

60

70

80

90

100

PERCENTAGE

PREFERRED BRAND

ZANDU HIMANI BAIDYANATH DABUR

0

10

20

30

40

50

60

PER-CENTAGE

79

SATISFACTION LEVEL

ZANDU HIMANI BAIDYANATH DABUR

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

RATING(1-LOW 5-HIGH)

REASONS FOR SELECTING A PARTICULAR BRAND

HEALTH BRAND LOYALTY

TASTE PRICE0

10

20

30

40

50

60

70

PERCENTAGE

80

HOW DID YOU COME TO KNOW ABOUT THIS BRAND

TV INTERNET WOM PRINT0

10

20

30

40

50

60

70

80

PERCENTAGE

UNAVAILABILITY OF PREFERRED BRAND

PURCHASE ANOTHER BRAND

WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER

0

5

10

15

20

25

30

35

40

PERCENTAGE

81

PREFERRED PACK SIZE

1 Kg 500 gm 250 gm0

5

10

15

20

25

30

35

40

45

50

PERCENTAGE

REASON TO SELECT PREFERRED PACK SIZE

AVAILABILITY PRICE FAMILY SIZE STORAGE0

5

10

15

20

25

30

35

40

PERCENTAGE

82

FREQUENCY OF PURCHARE

ONE MONTH TWO MONTHS SIX MONTHS0

10

20

30

40

50

60

PERCENTAGE

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1) Which brands of Chyawanprash do you stock?

83

ZANDU HIMANI BAIDYANATH DABUR

0

10

20

30

40

50

60

70

80

90

100

PER-CENTAGE

2) Out of these which are the most preferred?

ZANDU HIMANI BAIDYANATH DABUR

0

10

20

30

40

50

60

70

80

RATING(1-LOW 5-HIGH)

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

84

brand loyalty price availability no reason0

10

20

30

40

50

60

PERCENTAGE

4) What is the profile of your typical consumer?

high income middle income low income0

10

20

30

40

50

60

70

PERCENTAGE

5) What schemes are you offered by the companies?

85

price discount buy one get one others0

10

20

30

40

50

60

PERCENTAGE

6) What schemes does a consumer prefer most?

price discount buy one get one others0

10

20

30

40

50

60

70

PERCENTAGE

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

86

yes no0

10

20

30

40

50

60

70

PERCENTAGE

8) .Does a change in price affect their preferences?

yes no0

10

20

30

40

50

60

PERCENTAGE

87

DISTRIBUTION

Supply chain: Dabur has steadily improved its procurement and distribution systems to

achieve a significant reduction in material costs. Dabur has an extensive supply chain

and distribution network that has grown and spans 29 factories, 47 stocking points, 4

zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50

Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKU’s to

several thousand stockists and dealers.

MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays

as-of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP

pages meet almost all reporting requirements and make this a single source of MIS for

all levels of decision makers.

VSATs: This Success paved the ground for the company's supply chain initiative.

Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the

system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access)

VSATs. At some locations VPNs had to be used because it was not possible to set up a

dish.The integrated primary and secondary system has a number of unique features.

The features like tight integration of schemes, stockists credit limit control, automated

banking of cheques, and online cheque reconciliation have obvious advantages in the

primary distribution. These are basically extensions to the MFG/PRO ERP system

and not core customizations. The integrated system allows each Area Manager to plan

for the month's sales forecasts, stockists performance, and sales officers'

performance.The integration allows better control on pipelines in primaries and

secondaries, brings down inventories, and offers better control on production and sales

against a confirmed forecast. The idea is to increasingly shift focus from primaries to

88

secondaries. Schemes based on secondary volumes will help control secondary

pipelines and sales. Primary sales will therefore come from a resultant 'pull' from

secondary replenishments. Further, sales order servicing can be improved by taking

orders through the Internet, and by setting stocking norms and replenishing stocks to

improve ROI of stock holders.

ANSOFF’S PRODUCT MARKET EXPANSION GRID

MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan

and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish the

relevance of Chyawanprash in an increasingly tough and demanding lifestyle, for the

entire family. As a market leader, Dabur’s focus has been to increase the relevance of

this time-tested and proven product in the family - both for users and non users - and

89

increase penetration. In their new campaign they have tried to establish the fact that

Chyawanprash, with its ‘well - being’ properties, gives an edge to the users and dispel

the myth that it should be consumed in illness or is meant only for Children or the aged.

MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for

the future. An international business division has been set up within the company to

promote exports and it expect this business to grow steadily in the coming years. The

company plans to focus on Russia and CIS countries along with Afghanistan, West

Indies and the Asia Pacific region. It has also entered the North American markets by

appointing distributors and initiating marketing of products to the ethnic Indian

segment. The company has already been exporting hair oils, shampoos and Hajmola

candies to Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a

local partner to manufacture and market its products. Dabur will hold a majority stake

in this joint venture.

PRODUCT DEVELOPMENT:

Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first

quarter this fiscal, would be investing significantly in the launch of several new

products including Dabur Herbal Toothpaste and Vatika Henna Conditioning hair

packs over the coming months.

The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry cannot be

defined only by the performance of large players. Smaller companies are now dictating

terms and defining the market. DIL will launch new products backed by adequate

research." 90

DIVERSIFICATION: Diversification across product segments and markets is one of

the key factors in favour of Dabur India. In 2001-02, Dabur India had three major

revenue contributors — FMCG products, pharmaceuticals and ayurvedic specialties,

accounting for 76 per cent, 14 per cent and 7 per cent respectively, of its revenues.

Dabur's FMCG product basket includes such strong brands as Dabur Chyawanprash,

Vatika hair products, Hajmola digestive candy, Pudin Hara, Dabur Lal Dant Manjan

and Dabur Lal Tail massage oil. In pharmaceuticals, Dabur India markets branded as

well as bulk formulations, both in the domestic and export markets; oncologicals is a

key focus area. Dabur's anticancer molecule DRF 7295 is currently in Phase I clinical

trials on humans.

In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has entered the toilet

soap market besides expanding its over-the-counter (OTC) medicine range with 10

new additions over the next few months. The company has begun test marketing toilet

soaps under the brand name Vatika in West Bengal. There is a single variant,

containing saffron and honey, right now and Dabur is positioning it on the herbal

platform. Manufacturing of the soaps category is being outsourced at present

Besides diversifying its product portfolio under the Consumer Care Division (CCD)

with a foray into soaps, DIL has also decided to enhance focus on the Consumer

Healthcare Division (CHD) this fiscal. The newly created CHD division within DIL

deals in prescription-based Ayurvedic medicines and over-the-counter (OTC) products.

Traditionally a business with low growth prospects, CHD closed 2004-05 at Rs 107.8

crore.

91

Some of the existing OTC products of DIL include cough and cold formulation

Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi .

The company plans to launch other products under its own brand name in Russia and

has already launched Dabur Boro Glow.

.

92

93

Findings

THE NEW DABUR ENTITY

The New Dabur Identity modernizes the 100-year old equity of the Dabur brand by

subtly transforming the tree. While it retains the essence of the banyan tree, it now

projects a contemporary image, in consonance with today's lifestyle.

The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and

protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a

symbol of fertility. The new Dabur identity retains these enduring and valuable

attributes, while it adds a fresh, healthy and holistic dimension to the tree.

The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's

heritage, commitment and stability through the form and colours of the tree; its

branches and leaves. It also conveys that the brand stands for wellness across age

groups. Taken as a whole, the tree appears well rooted, implying stability; and its

abundant canopy implies that it can provide amply for those who seek its produce and

shade. Further, the entire image, being well-proportioned, evokes a harmonious, well-

balanced, wholesome and holistic brand.

In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a

heaven for creatures it generously harbours in its foliage, as well as in the shade of its

canopy. The tree is held auspicious as it spreads through the three spheres with its roots

94

meshing through the earth, its trunk rising through the terrestrial world and its branches

reaching into the heavens. This symbolism also occurs in cultures across the world.

Keeping these vital associations in mind, the tree in the new Dabur identity has been

carefully created to communicate Dabur's invaluable 100-year old legacy as well as its

future aspirations. It now takes on a younger avatar, in its form and colours, and strikes

a rapport with the consumer as a proactive brand with a commitment to wellness and to

nurturing an active lifestyle across age groups.

Thus, through its form and colours, the new logo identity combines freshness and

stability. It expresses a brand that is positive, proactive and progressive. The burst of

leaves and their colours symbolize growth, rejuvenation and inner strength. The form

and colour of the trunk convey growth, youthfulness and stability. Thus, the logo

identity lock up presents Dabur as a stable yet evolving, contemporary, vibrant and

active brand cherishing nature as the source of all its endeavours along with an abiding

commitment to the wellness of consumers across age groups

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USEFULNESS AND IMPORTANCE OF STUDY

IMPORTANCE OF THE STUDY

Being student of MBA it is very essential for me to have a practical knowledge in an

organization. Only to study business administration course knowledge is not the

solution of the problems, which arise in practical field. There is a certain formula for

any particular problem, but the aim of this study is to develop the ability of decision

making. A right decision at right time and right place itself helps an organization to run

smoothly.

This study gives an idea of all marketing activities. So the way a problem is solved

right decision making and knowledge of different types of making activities give much

importance to the study. Only in two month training it was not possible to understand

it so deeply, but an overall idea could be developed.

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The importance and usefulness of the study is discussed as under

1. To study the impact of Budget Policies on Marketing Strategy of Dabur Foods.

2. To study the Consumer, Buying behavior.

3. To study the problems faced by Dabur.

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CONCLUSIONS

The Chyawanprash Industry is yet to capture the beverage market in full swing.

Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit

and several other herbs and herbal extracts. the market. The consumer’s patriotic love

for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use

in the average household here in lies the great opportunities. Within the market, it is

safe to conclude that dabur has hit off ratherwell with the masses. dabur has clearly

lost it head start advantage and thereby acquiring just 35% of the market share while

others enjoys rest of the market share. This could be well attributed to dabor successful

ATA (Availability, Taste and Affordability) marketing module, the attributes most

rated by the consumers. Lack of publicity has hampered the growth progress of the

brand so aggressive advertising is needed to promote Chyawanprash and vatika hair

oil brand .The brands such as that of Chyawanprash by vednath, Chyawanprash

with its ‘sonacahndi, ‘Minute- made’ and also US food giantssDel Monte are ready to

hit the Chyawanprash market very soon.

Vatika hair oil has no major competition except an Australian Product Tobasco. As a

new product so people are not able to digest it yet Dabur is getting 8 crores from

Vatika hair oil in which accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .

As the strategies of the companies keeps on changing, be it in Chyawanprash

industry, a company has to create perceptions and cover them into realities. It is an

expensive proposition requiring huge expenditure on advertising, sponsorships and

media. Thus, the ideal company will be the one which combines the high end

technology with consumer insight.

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As 16% of the excise duty is exempted on food products in this budget , Many food

companies including Dabur got benefited from it . On the analysis of survey it was

found that target Market of Chyawanprash want quality benefit rather then Price

benefit, so it is better to stress on quality rather than on decreasing price to increase

sales and profit. To increase market share Dabur should give slight price benefit on

Dabur brand so that customers of other Juice brand should switch from other brand to

Dabur brand .

As vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise

benefit from the Government so Dabur should pass slight Price benefit to the target

market so that target market should use the vatika hair oil and adopt it in making daily

food thereby increasing the market share of vatika hair oil.

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LIMITATION OF THE STUDY

It was quenching time in the shops that use to deal in and some retailers could

not give proper attention towards our queries.

Some retailer did not co-operative with us as they thought; it is just wastage of

time

There was no way to assess the reliability of the retailers. What ever they said

had to be assumed to be truth.

Category wise search for retailer was a terrific job in the market.

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RECOMMENDATIONS

Focus on growing core brands across categories.

Reaching out to new geographies, within and outside India.

Improve operational efficiencies by leveraging technology.

Be the preferred company to meet the health and personal grooming needs of our

target consumers with safe, efficacious, natural solutions by synthesizing the deep

knowledge of ayurveda and herbs with modern science.

Provide consumers with innovative products within easy reach.

Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could

start a venture called Vatika hair care centre

which would provide total hair care solutions.

It could have hair care experts to solve hair

problems.Services could include dandruff

treatment, straightening of hair, treatment for

split ends,etc.

Position Dabur Chyawanprash as not more of

a medicine but as something which is necessary for health.

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

initiative to occupy shelf space.

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CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us to study

the consumer perception for hair oil.

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

1. Which brands of hair oil are you aware of?

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

2. Which brand of Hair Oil do you use?

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

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

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1

2

3

4

5

4. What are the primary reasons for which you use this particular brand?

Non sticky

Brand Loyalty

Fragrance

Price

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

TV

Internet

Word of Mouth

Print

6. If your brand is not available you would..?

Purchase another brand

Wait for it to be available

Go for a substitute

Buy what is offered by the retailer

7. Which pack size do you prefer?

75 ml

150 ml

300 ml

8. On what parameters do you choose this pack size?

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Availability

Price

Family size

Storage

9. How often do you buy?

Once in 15 days

Once a month

Once in two months

10. Are you satisfied with your brand?

Yes

No

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REFERENCES

Books:

Kotler Philip, ”Marketing Management”, 11th edition, 2003, Pearson Education

Inc., P. 8-9.

Ramaswamy V S, ”Marketing Management”, 3rd edition, 2002, Macmillan India

Ltd., P. 5-10

Kothari C. R., “Research Methodology”, 2nd edition, 2002, New Age International

Pvt. Ltd., P. 11, 130.

Robbins Stephen P., “Organizational Behaviour”, 10th edition, 2004, Pearson

Education Inc., P. 425-432.

Company Documents.

Websites

www.google.com

www.dabur.com

www.tutor2u.net

www.brandchannel.com

www.blonnet.com

www.superbrandsindia.com

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