Swati Report

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INDUSTRY ANALYSIS

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people buy

at regular intervals. The most common in the list are toilet soaps, detergents, shampoos,

toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and

extends to certain electronic goods. These items are meant for daily of frequent consumption

and have a high return. A major portion of the monthly budget of each household is reserved

for FMCG products.

The volume of money circulated in the economy against FMCG products is very high, as the

number of products the consumer use is very high. Competition in the FMCG sector is very

high resulting in high pressure on margins. FMCG companies maintain intense distribution

network. Companies spend a large portion of their budget on maintaining distribution

networks. New entrants who wish to bring their products in the national level need to invest

huge sums of money on promoting brands. Manufacturing can be outsourced. A recent

phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is

more pressurized with presence of local players in rural areas and state brands.

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 characterized by a well

established distribution network, intense competition between the organized and unorganized

segments and low operational cost. Availability of key raw materials, cheaper labor costs and

presence across the entire value chain gives India a competitive advantage.

Submitted to ICFAI BUSINESS SCHOOL, Gurgaon.

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TOP TEN FMCG COMPANIES

1. HINDUSTAN UNILEVER LIMITED

2. INDIAN TOBACCO COMPANY(ITC)

3. NESTLE INDIA

4. GCMMF(AMUL)

5. DABUR INDIA

6. ASIAN PAINTS(INDIA)

7. CADBURY INDIA

8. BRITANNIA INDUSTRIES

9. PROCTER&GAMBLE HYGIENE AND HEALTH CARE

10. MARICO INDUSTRIES


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COMPANY PROFILE

INTRODUCTION

Dabur India Ltd. (DIL), a leading name in the Indian FMCG industry was promoted by S K

Burman in 1884. The company was formed by way of amalgamation with Vidogum Limited in

Oct.'86. Prior to this, the company was operating under the name Dabur (S K Burman) Pvt Ltd,

since 1936.

EVOLUTION

The evolution of Dabur is quite interesting and its root takes us back to the 19th century where it

all started in Bengal by a visionary by name Dr. S.K Burman, a physician by profession. 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. Soon the news of his

medicines travelled, 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. The name is formed by joining the first half of Daktar

and Burman.

Largest Herbal & Natural Portfolio

4000 Distributors in India


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Retail Reach 2,500,000

5 Umbrella Brands

350+ products

4000 employees

15 Manufacturing Plants

JOURNEY SO FAR . . .

1884 The birth of Dabur

1972 The company shifts base to Delhi from Kolkata

1986 Registered as Public Limited Company

1994 Listed on the Bombay Stock Exchange

1998 Professional team inducted to run the company

2000 Crosses Rs 1000 Crore Turnover

2003 Pharmaceutical Business de-merged to focus on core FMCG

2004 Profit exceeds Rs.100 Crore

2005 Acquires Balara strengthening Oral care & provided entry into Home care segment

2006 Dabur Figures in Top 10 Great Places To Work

2007 Dabur ranked among 'Asia's best under a Billion' enterprises by Forbes

2008 Acquired Fem Care Pharma entering the mainstream Skin care segment

2009 Strong growth momentum continued in spite of general economic downturn

AWARDS & ACHIEVEMENTS (2008-09)


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Dabur At-a-Glance

Dabur India Limited has marked its presence with significant achievements and today commands

a market leadership status. Our story of success is based on dedication to nature, corporate and

process hygiene, dynamic leadership and commitment to our partners and stakeholders. The

results of our policies and initiatives speak for themselves. Leading consumer goods Company in

India with a turnover of Rs. 2834.11 Crore (FY09)

3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health

Division (CHD) and International Business Division (IBD)

3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step

down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer

Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria),

Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

17 ultra-modern manufacturing units spread around the globe. Products marketed in over 60

countries. Wide and deep market penetration with 50 C&F agents, more than 5000 distributors

and over 2.8 million retail outlets all over India.

a. Dabur’s Business Structure


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Dabur operates through three focused Strategic Business Units:

IBD: INTERNATIONAL BUSINESS DEPARTMENT

CCD: CONSUMER CARE DEPARTMENT

CHD: CONSUMER HEALTH DEPARTMENT


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CHD

Janma Ghunti, Hingoli, Sat Isabgol & Gripe

Shampoos

Market Size- 21 Billion

Dabur Brands- 1.3 Billion

Digestives

Market Size-5 Billion



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FOODS



Consumer Care Division




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b. Manufacturing Facilities in India


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d. Sustainability Report

At Dabur, environment and nature is the lifeline of our business. With a portfolio of Ayurveda

and nature-based products, conservation of nature & natural resources is deep rooted in our

organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not

merely incorporated the concept of sustainability into the core of our business but have, in fact,

expanded it to encompass our aspirations and responsibilities to the society and to the

environment. It is this concept that inspires us to optimize our business performance to tackle the

new and growing challenges of environment and technology. It is a concept on which we aspire

to build an organization that will continue to increase value for all our stakeholders for

generations to come, through intensive focus on Conservation of Energy and Technology

Absorption, along with Health, Safety and Environment Protection.

Conservation of Energy

Dabur has been undertaking a host of energy conservation measures. Successful implementation

of various energy conservation projects have resulted in a 13.8% reduction in the Company’s

energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has

come despite an 8-9% volume increase in manufacturing, and an average 11.7% increase in cost

of key input fuels. The host of measures – key among them being use of bio-fuels in boilers,

generation of biogas and installation of energy efficient equipment – helped lower the cost of

production, besides reduce effluent and improve hygiene conditions & productivity.

Health Safety & Environmental Review

Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy

focusing on People, Technology and Facilities. A dedicated “Safety Management Team” has also

been put in place to work towards the prevention of untoward incidents at the corporate and unit

level, besides educate & motivate employees on various aspects of Health, Safety and

Environment. The Company is also continuously monitoring its waste in adherence with the

pollution control norms. In pursuance of its commitment towards the society, efforts have also

been initiated to conserve and maintain the ground water level. The efforts include

implementation of rainwater harvesting, which has delivered encouraging results and has put the

company on the path to becoming a Water-Positive Corporation. Dabur also initiated a Carbon


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Foot Print Study at the unit level with an aim to become a carbon positive Company in years to

come. At Dabur, we are committed to sustainable development throughout our diverse

operations. And, we will strive to translate the good intentions into concrete and lasting results,

contributing to the ultimate good of the society.


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SWOT ANALYSIS OF DABUR

STRENGTHS:

A very rich base of traditional

knowledge in therapeutics i.e.

Ayurveda, Sidha & Unani.

Well developed engineering base to

produce wide range of pharmaceutical

equipment and machinery.

Successful experience in innovative

process chemistry.

Relatively low priced products.

High quality products.

Strong Product Adaptation.

Strong Media and Advertising

Management.

Modern Trade Management.

Distributions reach of 1.8 million

retail outlets.

Agronomy initiative to ensure supply

of rare medicinal herbs.

WEAKNESSES:

Sub-critical R&D investments.

Lack of innovative R&D culture in

industry.

Poor networking among

constituents in the innovation

chain.

Inadequate trained manpower in

emerging areas.

OPPORTUNITIES:

Due to rising costs of R&D overseas,

greater tendency towards outsourcing

and networking.

Expertise to blend knowledge of

traditional medicines with modern sci.

THREATS:

Inability to cope-up with the rapidly

changing new discovery technologies

and processes at the global level.

Rapidly changing standards of quality

and manufacturing at the international

level.


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OPPORTUNITIES continue….

Potential for clinical research and

initiating clinical trials.

Opportunity to improve quality

standards.

Consumers moving up the value-

chain.

THREATS continue……..

Lack of clearly articulated and

facilitative national IPR policies.

Lack of strategy to bring convergence

between aspirations of the `small’ and

`big’ players.

Distortion in priority and public

concern on health & Pharma issues.

Reducing tariff levels and dumping

can be a threat to survival of products

and industry.

Rising demand of the Ayurvedic

products of prospective competitor i.e.

Divya Pharmacy.


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DEVELOPING WITH THE BHARAT GAS CHAIN IN DELHI

IN A TIE UP OF DABUR WITH BHARAT GAS

UNDER

“BPCL BEYOND LPG INITIATIVE”


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BPCL BEYOND LPG INITIATIVE: e- bharat gas

BPCL: Bharat Petroleum Corporation Limited is now focusing on the 'Beyond LPG' service.

BPCL has spun its division that offered the value added service 'Beyond LPG,' into a full-fledged

business unit for its LPG customers. The company hopes to double its turnover to Rs137 crore in

the current fiscal.

Introduced in October 2003, the initiative envisages BPCL's LPG distributors selling household

appliances, kitchen utensils and even tea and pickles, along with gas cylinders. Branded products

are home delivered to BPCL customer using the existing delivery system for LPG cylinders. The

customers have to place orders over the phone.

Company officials said the `Beyond LPG' service was launched three years ago to give a boost to

the flagging business of LPG distributors by providing them an extra revenue source. The

business works on the basis of BPCL negotiating with manufactures to get goods in bulk for its

LPG distributors at lower-than-market prices.

In the process the company gets 1-2 per cent margin. By end of the current fiscal, the company

hopes to make a profit of about Rs 8 crore from this scheme.

The `Beyond LPG' is a voluntary scheme and no distributor is forced to offer it. The

company is also in the process of tying up with leading mobile operators for pre-paid and post-

paid connections and recharge vouchers.

Bharat Petroleum Corporation Ltd (BPCL), in a bid to cut its losses incurred on liquefied

petroleum gas (LPG) distribution, is lining up a direct-to-home delivery model based on

extensive retailing plan.


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The state-run company is expecting to achieve a turnover of Rs 700 crore from the new initiative

-- “Beyond LPG” -- by the end of 2010 under its strategic business unit - Bharat Gas.

The company has already joined hands with 36 major consumer goods brands and is in the

process of tying up with several others. These include Bharti Cellular, Godrej Sara Lee,

gensets from Honda, tea from Goodricke and Duncans, Dabur and Bajaj Electricals. The

company is the process of tying up with Western Union Money Transfer, Maharaja Whiteline

and groceries suppliers.

“We are embarking on a change in our image among the consumers from pure gas suppliers of

the controlled regime to a service-oriented company and we expect to increase our sales five-fold

in the next two years,” SK Jain, executive director (LPG), BPCL, told FE.

The company achieved a sales turnover of Rs 140 crore in the last fiscal after it began the

initiative as a pilot project. Currently, 500 of BPCL's 2,200-strong cooking gas distributors

across the country have already embarked into retailing of household goods and kitchenware,

including consumables.

The company’s business strategy is to increase its turnover and sales of the LPG unit through

allied products without investing significantly. Once a consumer brand ties-up with BPCL, the

LPG distributors can directly place orders through a web-based interface with BPCL as the

mediator.

The new retailing initiative is different from the retailing plans of various other oil companies

that are setting up specialized retail outlets where the consumers go and shop. “We are already

reaching 22 million households through our LPG distribution and no retail chain supplies goods

at home on demand. Our strength will be to supply goods at the doorstep at discounts over the

MRP,” Jain stated.

To cut down on losses incurred on LPG business, BPCL has also embarked on a new product --

‘Bharat Cutting Gas’ - for the first time in the country. The product - in which BPCL has a

monopoly - has the potential to replace acetylene used in metal cutting, heating and brazing

operations leads at a cost reduction of 50% and requires one third of storage space.


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Developing with the Bharat gas chain in Delhi

OBJECTIVE: To expand the customer base in collaboration with the Bharat Gas.

Bharat Gas is expanding its customer base by doing door to door marketing and Dabur in

collaboration with that will offer their products at discounted prices to them and will increase the

awareness amongst the customers.

METHODOLOGY:

A comprehensive list of Bharat gas distributors was given by the company guide.

The list contained around 75 distributors all across Delhi with full address and

contact numbers.

Cold calling and seeking appointment by the distributors were done.

Mapping the possibility of selling Dabur products at Bharat gas agency by

physically going to accounts.

On a visit to accounts, following things were done:

Introducing myself.

Appreciating BPCL- beyond LPG initiative.

Giving a short power point presentation on Dabur- company profile and food

products. I have to only deal with food products as customer care products were

already doing good business as they have long shelf life of two years.

Handing over the Dabur brochures and price list of Dabur products.

DBP- dealer basic price was explained by telling that 13% margin is provided i.e.

13% discount on MRP- maximum retail price.

Product shelf life was explained- Every food product like Real and Activ juices,

honey, tomato ketchup etc comes with an expiry of six months. If the products don’t


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get sell in the period of four months i.e., still two months left for the expiry- they

can call any Dabur representative to replace the product with a fresh stock.

Another important thing told was not to order in bulk. Ask for small quantities to

get an idea first. This again shows Dabur’s non profit motive and business ethics.

Most selling products were told.

Dabur is a 350 crores company in which Real has 60% market share.

Strong hold in north because of the preference.

Most selling food products explained are as follows:

Juices: Real, Activ, Burrst

According to FCI (Food Corporation of India) juices need to have 85% of

pulp content into it to be called as a juice. E.g., Real and Activ.

Activ has no sugar and no preservatives. Very healthy.

Burrst is a lite and refreshing. It has a lesser pulp content.


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Hommade: These are convenient products and sell good in

household. E.g., Ginger, Tamarind and Garlic Paste, Tomato puree,

Capsico Red Pepper Sauce, Coconut Milk, Lemoneez

Sharbat: Nothing like summer cooler Sharbat-e- azam

Health issue: People are becoming more health conscious. They are switching from carbonated

beverages to juices. Activ juices have no sugar and preservatives added. Tomato puree also does

not have any preservative added.


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HONEY: Again the most selling product is Dabur honey. It is another healthy

product.

OBSERVATIONS AND LIMITATIONS

AREA PROBLEM


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1. Some areas like Nazafgarh etc in Delhi are under developed. People are reluctant to buy

packaged food products. They prefer fresh juices and milk over Activ and real juices.

They also don’t prefer homemade pastes and purees. Their disposable income is less to

spend on these products.

2. In Mayur vihar phase 3 there is a wholesale market which provides food products at

fewer prices. This makes the residents to buy from there only.

3. In the areas like Rajokri, Arjangarh and Palam the Bharat gas agencies comes under air

force. In these areas there is a canteen which provides all products at lesser price. This

makes residents buy from there only. No one wants to buy from Bharat Gas agency

which sells products at MRP in spite of bringing the products at their door step.

MARKET PRICE DIFFERENCE AND COMPETETION WITH

RETAIL STORES

1. Modern Trade like Big bazaar, Spencer’s etc brings special discounts on all products from

time to time. Special Wednesday market in big bazaar also attracts customers.

2. Buying from stores people have special touch and feel kind of a thing attached with the

products. It gives them satisfaction that they have bought the products after properly

checking and analyzing the particular product.

3. Often the Bharat gas distributors are more concerned in knowing the margin we give in

market. They want to dump the stock in market of which they are not supposed to do.

4. Most of the distributors have complained that Dabur offers up to 20% margin in market

whereas to them only 13% margin is given which they consider the major problem.

CUSTOMER’S TENDENCY


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1. After buying the high cost gas connection people tend to expect these Dabur and other

products for free.

2. Consumers also don’t entertain delivery boys of Bharat gas at their home. They are only

limited to getting the gas connection and getting it refilled from time to time.

3. In some areas consumers are even reluctant to order on telephone. They are comfortable

in coming to the agency themselves and order.

PROBLEMS RELATED TO DISTRIBUTORS

1. The `Beyond LPG' is a voluntary scheme and no distributor is forced to offer it. This is

the reason the Bharat gas distributors don’t take it seriously. For them their main business

is confined only to the gas.

2. Surprisingly few distributors didn’t even know that Real & Activ comes under the brand

umbrella of Dabur.

3. To my surprise one distributor asked “Do Dabur makes cement?”

SHELF SPACE

1. They have less storage space. Of all the gas agencies I have visited until now only ten

percent had shelves or window for keeping the products.

2. Another very few have refrigerators and air cooled storing place which is an important

factor for keeping the food products fit to consume.

3. There is always fear of rodents destroying the products.

UNEDUCATED OR INEFFICIENT DELIVERY


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They complain that their delivery boys don’t hold any expertise in selling non- LPG products.

They don’t posses convincing power.

BRAND CANNIBALIZATION

Too many products of Dabur start competing with each other.

Sharbat-e- azam has more demand in summers than real juices

RESULTS


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Cluster analysis has been done to find out the group of distributors to be targeted first.

CLUSTER 1: Distributors are clustered together on the basis of” LOW INTEREST AND FEW

PROBLEMS. Below is the list of distributors falling under this cluster. These are the distributors

who have shown less interest during meeting with them and they face few problems. The reason

for facing few problems may be because of the less interest shown by them. so they are clustered

together.


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BHARAT GAS SERVICE K-1/52-53,JAHANGIR PURI NEW DELHI 110033

ESS ESS ENTERPRISES A-247-248, NEHRU VIHAR, VAZIRABAD NEW DELHI 110054

PANKAJ GAS SERVICE U-4, MANGOLPURI NEW DELHI 110083

PRATAP JYOTI B-27, POCKET 00, SECTOR-1 ROHINI NEW DELHI 110085

PRIYANIKA GAS SERVICE 604/5A, HAMILTON ROAD, KASHMIRI GATE, NEW DELHI 110006

SANTOSHI GAS SERVICE G-1118-19,SHAKURPUR NEW DELHI 110034

UNITED AGENCIES 3580,NETAJI SUBHASH MARG,DARYA GANJ NEW DELHI 110002

VIJAY GAS AGENCY 44\26, BADLI, NEW DELHI 110042

ANAND GAS SERVICE 426/1, OLD MEHRAULI ROAD, BADARPUR NEW DELHI 110044

ASHOKA STORES K-1/51, CHITARANJAN PARK, NEW DELHI 110048

FRIENDS GAS SERVICE 4-B, BHARAT NAGAR (NEAR BANK OF BARODA) NEW FRIENDS COLONY NEW DELHI 110025

JWALA AGENCIES SHOP NO 5 UDAY PARK-D.D.A MARKET, KHEL GAON MARG NEW DELHI 110049

OORJA AGENCIES SHOP NO.8&9, NAGER MARKET TANKI ROAD(NR. MITHAPUR CHOWK) NEW DLEHI 110044

VARUN GAS SERVICE 275, SCHOOL ROAD, SECTOR 1 DR. AMBEDKAR NAGAR NEW DELHI 110062

AIR FORCE GAS AGENCY, RAJOKRI AIR FORCE STATION, RAJOKRI, NEW DELHI 110038AIR FORCE GAS

AGENCY,ARJANGARH AIRFORCE STATION, ARJANGARH, MEHRAULI-GURGOAN ROAD NEW DELHI 110047

BRIGADE GAS AGENCY H.Q. 16,INFANTRY BRIGADE C/O 56 APO,NEAR PALAM AIRPORT NEW DELHI 110010

DURGA AGENCIES 258/5, NEW ROHTAK ROAD KAROL BAGH NEW DELHI 110005

HITESH GAS SERVICE 8742, SIDDHIPURA MODEL BASTI NEW DELHI 110005

KAVERI ENTERPRISES SHOP NO 4,F15A, MOTI NAGAR NEW DELHI 110015

MAYAPURI GAS CO. S-33, JANTA MARKET,RAJOURI GARDEN NEW DELHI 110027

NIRMAL GAS B-3, CHANDER VIHAR CHANDER VIHAR MAIN CHOWK, NILOTHI NEW DELHI 110041

RAMAN GAS SERVICE 7,BASRURKAR MARKET,MOTI BAGH-I NEW DELHI 110021

RATAWAL GAS SERVICE BG-6/271-A,JANATA FLATS, PASCHIMVIHAR NEW DELHI 110063

SEEMA PRAHARI GAS AGENCY BORDER SECURITY FORCE, CHAWLA CAMP, NEW DELHI 110071

SUNNY GAS SERVICE SHOP NO. 7, DDA MARKET,MIG, RAJOURI GARDENS NEW DELHI 110027

WESTEND GAS SERVICE WZ-69\C, TODAPUR NEAR INDERPURI NEW DELHI 110012

AKASHDEEP GAS AGENCY AF STN, RACE COURSE NEW DELHI 110023

ARORA GAS AGENCY 11/53, GEETA COLONY NEW DELHI 110031

ASHWINI ENTERPRISES D 503, MAIN WAZIRABAD ROAD, ASHOK NAGAR DELHI 110093

DAMMO ENTERPRISES 64-A,LIG FLATS,JHILMIL COLONY, SHADRA NEW DELHI 110032

GAS PLAZA SHOP NO 8,CMO MKT, HARGOBIND ENCLAVE, NEW DELHI 110092

GAUTAM ENTERPRISES C-3/G-2,DILSHAD GARDEN,SHADRA NEW DELHI 110095

KAYSON ENTERPRISES N.D.M.C. SHOP-1\2,DOCTOR`S LANE, GOLE MKT, NEW DELHI 110001

KITCHEN CARE S-537, SCHOOL BLOCK, SHAKARPUR NEW DELHI 110092

SARLA ENTERPRISES SHOP NO 8,B-6, MARKET, SAFDARJUNG ENCLAVE NEW DELHI 110029

SOBHAGYA AGENCY D-1/239,NEW KONDLI, MAYUR VIHAR NEW DELHI 110092

VEEJAY GAS SERVICE-BLOCKED FLAT NO 261, POCKET - V, MAYUR VIHAR- PHASE - I NEW DELHI 110092

ENGINEERS ENTERPRISES WZ-80, PANKHA ROAD,NANGALRAYA NEW DELHI 110058

SUPER CARE GAS AGENCY G-1-OPP BRAHMAAAPPT. PALAM EXTN. SECTOR 7,DWARKA NEW DELHI 110045

CLUSTER 2: LOW INTEREST HIGH PROBLEM


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EMINENT COMPUTERS PVT

LTD Shop No.5&6, Block - L1 Devli Bandh Road, Sangam Vihar NEW DELHI 110062RAHUL AGENCIES 31/5, JANGPURA EXTN. NEW DELHI 110014

KAUSHIK GAS AGENCY SH.NO.9 DHARMA COMPLEX, ROHTAK ROAD, NEW DELHI 110041SHYAMJI

ENTERPRISESB-7, SHOP NO.17, GROUND FLOOR, VASANT KUNJ VASANT KUNJ NEW

DELHI 110030NOUSHEEN GAS

AGENCY 719/J,SHOP NO 3/5, MAHA BAGHVATI COMPLEX, NEW DELHI 110043SURYA GAS

AGENCY 9, JAGBIR SINGH MARKET, NEAR KRISHNAMANDIR, NEW DELHI 110043

YOGENDRA GAS1-A, GOPAL NAGAR, MITRAON ROAD NEAR KHERA MORE, NAJAFGARH

NEW DELHI 110043RUCHIKA GAS

AGENCY B-51,LAXMIBAI NAGAR MKT NEW DELHI 110023VIRAAT

ENTERPRISESSHOP NO. 2 & 3 GROUND FLOOR,GALI NO. 7 GARHI MENDU, PUSTA ROAD,

BHAJANPURA DELHI 110053ALOK GAS SERVICES SHOP NO 1640,THANA ROAD, NAJAFGARH NEW DELHI 110043

The Above cluster is of distributors with Low interest but face high problems.As the interest level is low

and the no. of problems faced are high so it is advisable not to target these distributors as they may not

give much sales.

CLUSTER 3: HIGH INTEREST FEW PROBLEMS


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KITCHEN FLAME B-2/15,CYCLE MKT,MANGOLPURI NEW DELHI 110083

M. D. ENTERPRISES SHOP NO 5,VISHAL MKT, KINGS WAY CAMP WEST NEW DELHI 110009

RAJA GAS SERVICE SHOP NO.7, BLOCK C-8 DDA MARKET, KESHAVPURAM NEW DELHI 110035

ROBIN GAS SERVICE DDA SHOP NO.15,CSC-2,SECTOR 5, ROHINI NEW DELHI 110085

ROHIT GAS AGENCY142,I FLOOR,SHIVA MKT, PITAMPURA, ROHINI/BAWANA NEW DELHI

110034

SAURABH GAS SERVICE SHOP NO 82 POCKET 13 SECTOR 24 ROHINI NEW DELHI 110033

SHIV SHAKTI GAS SERVICE SHOP NO. 3,1/10,INDIRA VIKAS COLONY NEW DELHI 110009

KAIN GAS AGENCY 1406A/13, GOVINDPURI, KALKAJI NEW DELHI 110019

SACHIN GAS SERVICE 4/51, GUPTA MKT, LAJPAT NAGAR-IV NEW DELHI 110024CHANAKYA & SIDHARTH

GAS CO. SHOP NO A-3/24, DDA MKT, JANAKPURI NEW DELHI 110058

DEEPAK GAS SERVICE 18/32, EAST PATEL NAGAR NEW DELHI 110008

KHERA GAS SERVICE 3893, ROSHANARA ROAD NEW DELHI 110007

MILIND GAS SERVICE WZ-5,KESHOPUR VILLAGE, VIKAS PURI NEW DELHI 110018

NIKHIL GAS SERVICE SHOP NO 3, PHASE-II,POCKET-2, PASCHIM PURI NEW DELHI 110063

UMIKA AGENCIES A-37, RING ROAD,RAJOURI GARDEN MKT NEW DELHI 110027

DHRUV LPG DISTRIBUTORS 85-C, POCKET-B, MAYUR VIHAR PHASE-II DELHI 110091

EASTEND ENTERPRISES B-7, DILSHAD GARDEN,GT ROAD, NAVEEN SHADRA NEW DELHI 110095

NIHAL GAS SERVICE 149,POCKET D,MAYUR VIHAR-PHASE -II NEW DELHI 110091

SATISH & COMPANY G-2,HAUZ KHAS MKT, NEW DELHI 110016

SHARMAN GAS COMPANY C-4/15, SAGAR SADAN, KRISHNA NAGAR NEW DELHI 110051

BLUE FLAME GAS SERVICES C-2-D,SHOP NO 6, JANAKPURI NEW DELHI 110058

DELHI GAS D-5A, MILAP NAGAR BEHIND DESU, UTTAM NAGAR NEW DELHI 110059

The Above are the potential distributors. They show high interest and have few problems. If their

problems are solved they can give high sales and help in increasing further awareness amongst the people.

So the company should focus on targeting these distributors.

CLUSTER 4: HIGH INTEREST HIGH PROBLEM


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MODERN COOKERIES D-160,KAMLA NAGAR MARKET NEW DELHI 110007VICTORY ENTERPRISES E-92/93,CAMP NO 2 ,ROHTAK ROAD, NAGLOI NEW DELHI 110041

MANVIR GAS AGENCYE-2,CHAND BAGH,VAZIRABAD ROAD, BHAJANPURA NEW DELHI

110053

RAINBOW GAS AGENCYF-37/A,GROUND FLOOR DAYAL PUR EXTN, MAIN KARAWAL NAGAR

DELHI 110094

The above cluster is of distributors with high interest level and high number of problems faced. As they

have good interest so they can be the potential distributors. If not all some of their problems can be solved

so that they continue to show high interest and can increase sales.


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Chart 1 : Problems faced :

27%

31%

18%

20%

4%

Problem FacedShelf Space uneducated delivery boy Rural AreaPrice Difference Quicker Expiry Date

The above chart shows the different type of problems faced by the 76 distributors. We can see that

31 % of the distributor face problem of “Uneducated Delivery Boys” which is the highest

percentage of problem. Next comes the Shelf Face problem which is being faced by 27% of the

distributors. So this is the second important problem which should be resolved. we can also see

that Price difference between market and the distributor’s basic price and the problem of Rural

area in which the distributor is operating are also the important problems which should be

resolved.


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Chart 2 : Interest Shown :

51%

16%

17%

5%

11%

Interest ShownVery Less/Negligible Less MediumHigh Very High

The above pie chart shows the interest level shown by the distributors for selling Dabur products.

We can see that 51 % of the total distributors showed negligible or very less interest which is not

good for the company. The less interest level may be because of the various problems which are

being faced by them. The company should focus on developing the interest amongst the

distributors to make this program successful. Only 11 % of the distributors show very high interest

rate, So these are very high potential distributors for the company. Dabur should also focus on

distributors showing less and medium interest level which contributes to about 33 % of total

distributors.


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Chart 3 : No. of problems faced by distributor :

38%

25%

18%

12%

5%

1%

No.of Problems Faced0 = Nil 1 = Less 2 = Few 3 = Medium 4 = High 5 = Very High

From above graph we can see that 38% of distributors faces no problem, this may be due to the

fact that these distributors fall under the category of those who have shown very less or negligible

interest level in selling Dabur products at their Stores or offices. We can also see that 44 %

distributors face less or few problems which is good for the company. If these problems are

resolved then we can increase the sales through this project.


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Chart 4 : Clusters

53%

13%

29%

5%

ClustersLow Interest Few Problem Low Interest High ProblemHigh Interest Few Problem High Interest High Problem

Above pie chart shows the percentage of distributors falling under different clusters formed.53%

of distributors are those who have less interest in this project and face few problems. The interest

should be developed amongst these distributors because they contribute to very high percentage.

Total of 34 % distributors show high interest rate but still it is very less as compared to those who

are showing less interest rate. The distributors should be given more discounts and facilities to

develop interest and make this project a success.


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SUGGESTIONS

Dispensers or Refrigerators: Dabur dispensers or cool

cage or small refrigerators can be provided to keep the food products like juices in suitable

condition. It will protect them from rodents also. Juices if available cold in refrigerator would

prove to be favorable.

Incentive based referral scheme. Incentive & Loyalty Points

Management system allows you to create your own points-based incentives, promotions and

loyalty system to reward your visitors, customers and members for purchases, promoting engaging

in feedback, taking tests, and much more. Create your own viral grass roots marketing system, or

street team system, to offer rewards to your most loyal members in exchange for promoting your

website throughout the internet. Similar to a frequent flyer program, your rewards system will

keep your customers coming back as they build their points and redeem them on your ecommerce

site in your online auctions. Incentives, points and rewards create the ultimate promotional tools,

rewarding frequent purchasers, new customers and your own internet marketing street team to

virally promote your products and services.

Special incentives can be given to the distributor who sells the high volume so as to encourage

him. As beyond LPG initiative is not mandatory for any distributor to follow from BPCL’S side,

something should be done to motivate them towards this initiative.

Approach managers and delivery boys: Distributors don’t sit for long in the

gas agencies. Train the delivery boys and managers well so that they can sell the products well

by convincing the consumers. Distributors should be encouraged to motivate the delivery boys.

Seasonal discounts on MRP: Little discounts should be given to the consumers so that they tend to

buy the products.

Marketing enhancements for increasing awareness that Real is a

product from Dabur: It is strange to know the fact that some distributors were not

knowing that Real and Activ juices come under the brand umbrella of Dabur. Thus

marketing enhancements for increasing awareness should be undertaken.


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Advertising the Dabur- Bharat gas tie up: Consumers are not aware of any such

tie up. Therefore it is necessary to advertise for the same. This can be done by putting up banners

and posters at bharat gas agencies. Attractive brochures and leaflets in large numbers should be given

to the distributors at their agencies. It will also improve the ambience of the agencies and can be

attractive and eye- catching for the customers.


36


INFINITY TOWER

GURGAON

UDYOG VIHAR

SIGNATURE TOWER

CYBER

TOWER

37

SALES PROCESS TESTING & DEVELOPMENT

Typical Sales Process Steps and Issues Addressed

Cold calling to qualify leads Cold calling to reach decision makers Warm calling to expand the number of contacts in key accounts Quickly developing trust, rapport and credibility Getting critical information early in the sales cycle Minimizing phone tag and decision-maker voicemail shields Creating urgency and prospect motivation Closing and gaining commitment Negotiating Selling to big companies and multiple decision makers


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OBJECTIVE:

To map the packaged juice market of Gurgaon Corporate, identify the potential accounts and

add new accounts to increase the business of Dabur’s Real Fruit Juices in corporate.

METHODOLOGY:

Major corporate clusters in Gurgaon were identified.

Mapped the market of Gurgaon corporate by physically going to accounts.

On a visit to the account, tried to find out information regarding the consumption of beverages.

The consumption point and who provides it (Admin/Facility or direct vendor/caterer)

Number of employees

Beverages provided free of cost to the employees or charged

The contact details for the concerned person who influences the decision regarding the sale

of beverages in the corporate.

Whether packaged juices provided to the employees or not

If yes, then which brands

Cold calls were made to the key persons.

Case 1: Packaged juice was not being provided to employees.

Case 2: Packaged juice was being provided to employees.

The brands of juices being purchased

From where the packaged juices were being purchased

At what price, if the person is ready to divulge the rates

Average weekly sale/consumption of packaged juices

If not keeping Real juices, then what is the reason behind it

Would they be interested in doing business with Dabur

In case a meeting was fixed or quotations were requested for, the lead was passed on to the Senior

Business Development Officer.

In some cases, sales call was closed on the phone itself.

Meetings were held with the interested accounts.

Regular follow up of the leads was done till a deal was made or a negative response was given.

All the information collected was recorded in an excel sheet for future references.


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OBSERVATIONS:

Some vendors sell only Real fruit juices as there is demand for Real from their customers.

Real is preferred over Tropicana in most direct corporate accounts.

Many small vendors exist in Gurgaon.

Vendors are concerned with profit margins and not with quality.

Many vendors keep only Tropicana due to higher margins.

Wholesalers provide rates lower than what Dabur’s distributors can offer.

Mixed Fruit and Guava flavors have the maximum demand.

SUGGESTIONS:

Continuous exploring of corporate as many new corporate complexes have come up in far off

areas.

Dispensers or Refrigerators.

Incentive based referral scheme.

Approach admin managers.

Marketing enhancements for increasing awareness that Real is a product from Dabur.

LIMITATIONS:

1. Some of the issues that come up when you are selling to people you cannot actually meet face-to-

face. You get around the issues of trust when you are selling exclusively via remote channels such

as telephone and e-mail.

2. Corporate people are busy. Difficult to get appointment.

3. Corporate are reluctant to change.

4. They are dependent on the middlemen/caterers/private vendors for providing juices etc

5. They don’t want to directly buy from Dabur as they have to maintain a different account for that.

With middlemen they have to maintain only one account with them and middlemen see to these

things.


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LEARNINGS

The practical aspect of the Sales apart from the theoretical part studied in the classroom.

The institutional sales process for a FMCG.

Ground level understanding of the non-carbonated beverage market.

The difficulties one faces in selling the products and finding new clients.

Negotiating and convincing skills.

The difference in the way of selling directly to the corporate and to the vendors.

The importance of relationship building and the art of dealing with people.

A bit of the operations of the distributor.

The game of profit margins in the market.


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REFERENCES

o www.dabur.com

o www.financialexpress.com/...bpcl...beyond-lpg/89586/ - Angola

o bharatpetroleum.co.in/Admin/.../F000000038_Chairman_Speech_08.pdf

o http://www.pearsoned.co.uk/Bookshop/detail.asp?item=100000000015461

Book: YOU CAN SELL by Shiv Khera


http://www.pearsoned.co.uk/Bookshop/detail.asp?item=100000000015461

http://www.dabur.com/

Swati Report

Documents

Transcript of Swati Report