Aman
Aman
Aman
UNIVERSITY
LUCKNOW-DEVA ROAD, UTTAR PRADESH
ACKNOWLEDGEMENT
AMAN UPADHYAY
201410702110042
CERTIFICATE OF ORIGINALITY
(To be filled in by the student in his / her handwriting)
I_____________________________________ Roll No __________________of, a fulltime
bonafide student of third year of Bachelor of Business Administration (BBA) of Shri
Ramswaroop Memorial University. I hereby certify that for this project work carried out by me
at_________________________________________________ the
report
submitted
in
partial fulfillment of the requirements of the programme is an original work of mine carried out
under
the
guidance
of
the
industry
mentor
___________________________________________________________________and
facultymentor_______________________________________________________and
is
not
based or reproduced from any existing work of any other person or on any earlier work
undertaken at any other time or for any other purpose, and has not been submitted anywhere else
at any time to the best of my knowledge.
(AMAN UPADHYAY)
Date:
CERTIFICATE
This
is
to
certify
that
the
project
entitled
..
DECLARATION
I
hereby
declare
that
the
project
entitled
...
AMAN UPADHYAY
University Roll. No 201410702110042
TABLE OF CONTENTS
Preface
CHAPTER I
Introduction
Objective of the study
Scope and limitations of study
Methodology: this would contain the following things:
1. Sources of data
2. Sample sizes, if any
3. Methods of data collection
4. Instrument used
5. Tools and techniques of analysis
CHAPTER II
Company Profile
CHAPTER III
Data Analysis & Findings
CHAPTER IV
Suggestion/ Recommendation
CHAPTER V
Conclusion
Bibliography
Appendix
6
PREFACE
Visual Display of Dabur Consumer Health Division in Lucknow city was
our main target so we are just focused on health product of DABUR our
main object was Health Division. It is an incredible product of DABUR &
one of the best health product of any other Aryuvedic company available in
market.
Chapter-1
1. Introduction
2. Need of study
3. Objective of study
4. Scope of study
1.1 INTRODUCTION
Dabur India Limited is a leading Indian consumer goods company with interests in
Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its
humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic
medicines company, Dabur India Ltd has come a long way today to become a
leading consumer products manufacturer in India. For the past 125 years, we have
been dedicated to providing nature-based solutions for a healthy and holistic
lifestyle.
Through our comprehensive range of products, we touch the lives of all consumers,
in all age groups, across all social boundaries. And this legacy has helped us develop
a bond of trust with our consumers. That guarantees you the best in all products
carrying the Dabur name.
1.1.1 Dabur India Ltd. - Corporate Profile
Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of US$1
Billion (over Rs 5,000 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000
Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today
Indias most trusted name and the worlds largest Ayurvedic and Natural Health
9
Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over
250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship
brands with distinct brand identities -- Dabur as the Bachelor brand for natural
healthcare products, Vatika for premium personal care, Hajmola for digestives, Ral for
fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur
today operates in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 2.8 million retail outlets with a high penetration in both urban and rural
markets. Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are highly popular in
the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas
revenue today accounts for over 30% of the total turnover.The 125-year-old company,
promoted by the Burman family, had started operations in 1884 as an Ayurvedic
medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur India
Ltd has come a long way today to become one of the biggest Indian-owned consumer
goods companies with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a family-run business
to become a professionally managed enterprise. What sets Dabur apart from the crowd
is its ability to change ahead of others and to always set new standards in corporate
governance & innovation.
1.1.2Dabur At-a-Glance
10
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. 5,283 Crore (FY12),2
major strategic business units (SBU) - Consumer Care Business and International
Business Division (IBD),2 Subsidiary Group companies - Dabur International and
NewU and several 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 3.4 million retail
outlets all over India
Consumer Care Business adresses consumer needs across the entire FMCG
spectrum through four distinct business portfolios of Personal Care, Health
Care, Home Care & Foods.
1.1.3 Bachelor brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Ral - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral,
11
Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, Dabur
Honey, Glucose, Fem and Odonil. Strategic positioning of Honey as food
product, leading to market leadership (over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65%
market share. Vatika has been the fastest growing hair care brand in the
Middle East. Hajmola tablets in command with 60% market share of digestive
tablets category. About 2.5 crore Hajmola tablets are consumed in India
every day.Leader in herbal digestives with 90% market share.Consumer
Health Division (CHD) offers a range of classical Ayurvedic medicines and
Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in
modern ready-to-use formats Has more than 300 products sold through
prescriptions as well as over the counter. Division also works for promotion of
Ayurveda through organised community of traditional practitioners and
developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of
customers across different international markets, spanning Nepal, Bangladesh, the Middle
East, North & West Africa, EU and the US with its brands Dabur & Vatika
1.1.4 Core ValuesVision- "Dedicated to the health and well being of every household"
PrinciplesOwnership-This is our company. We accept personal responsibility, and accountability to meet
12
business needs.
Passion for winning
We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are
determined to be the best at doing what matters most.
People Development-People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.
Consumer Focus-We have superior understanding of consumer needs and develop products to
fulfill them better.
Team Work-We work together on the principle of mutual trust & transparency in a boundary-less
organization. We are intellectually honest in advocating proposals, including recognizing risks.
Innovation-Continuous innovation in products & processes is the basis of our success.
Integrity-We are committed to the achievement of business success with integrity. We are honest
with consumers, with business partners and with each other.
1.1.5
Strategic Intent-We intend to significantly accelerate profitable growth. To do this, we will:
Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and 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 our deep knowledge
of ayurveda and herbs with modern science
13
1.1.6
Company History
14
1884
Birth of Dabur
1896
Early
Ayurvedic medicines
1900s
1919
1920
Expands further
1936
1972
Shift to Delhi
Sahibabad factory / Dabur Research &
1979
Development Centre (DRDC)
1986
1992
1993
Cancer treatment
1994
Public issues
1995
Joint Ventures
1996
3 separate divisions
1997
1998
2000
2003
2005
2005
2006
2007
2007
2008
2009
Brand' club
2010
2011
2011
Pharma
Dabur crosses Billion-Dollar Turnover
2012
Mark
Founding Thoughts "What is that life worth which cannot bring comfort to others"
16
The doorstep 'Daktar' The story of Dabur began with a small, but visionary endeavour by Dr.
S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and
affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr.
Burman undertook the task of preparing natural cures for the killer diseases of those days, like
cholera, malaria and plague. Soon the news of his medicines traveled, and he came to be known
as the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture
Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr. Burman set
up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of
people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless
efforts resulted in the company growing from a fledgling medicine manufacturer in a small
Calcutta house, to a household name that at once evokes trust and
reliability.
1.1.8 Milestones- 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
come a long way in popularising and making easily available a whole range of products
based on the traditional science of Ayurveda. And Dabur has set very high standards
in developing products and processes that meet stringent quality norms. As it grows
even further, Dabur will continue to mark up on major milestones along the way, setting
the road for others to follow... Milestones To Success
17
Early1900s-Production
of
Ayurvedic
medicines
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
18
1949-Launched
Dabur
Chyawanprash
in
tin
pack
Widening the popularity and usage of traditional Ayurvedic products continues. The
ancient restorative Chyawanprash is launched in packaged form, and becomes the
first branded Chyawanprash in India.
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.
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.
19
1996 - Enters foods business with the launch of Real Fruit Juice
20
21
Dabur India approved the demerger of its pharmaceuticals business from the FMCG
business into a separate company as part of plans to provider greater focus to both the
businesses. With this, Dabur India now largely comprises of the FMCG business that
include personal care products, healthcare products and Ayurvedic Specialities, while
the Pharmaceuticals business would include Allopathic, Oncology formulations and
Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of
the Pharmaceutical business.
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary
of Dabur India, has set up fully automated greenhouses in Nepal. This scientific
landmark helps to produce saplings of rare medicinal plants that are under threat of
extinction due to ecological degradation.
2005 - Dabur aquires Balsara
As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and
Home products businesses, a leading provider of Oral Care and Household Care
22
Dabur India announced issue of 1:1 Bonus share to the shareholders of the company,
i.e. one share for every one share held. The Board also proposed an increase in the
authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.
2006 - Dabur crosses $2 bln market cap, adopts US GAAP.
Dabur India crosses the $2-billion mark in market capitalisation. The company also
adopted US GAAP in line with its commitment to follow global best practices and
adopt highest standards of transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million
Moving forward on the inorganic growth path, Dabur India decides to raise up to $200
million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any
other securities.The capital raised will be used to fund Dabur's aggressive growth
ambitions and acquisition plans in India and abroad.
2007 - Celebrating 10 years of Real
Dabur Foods unveiled the new packaging and design for Real at the completion of 10
years of the brand. The new refined modern look depicts the natural goodness of the
juice from freshly plucked fruits.
23
Dabur India announced its foray into the organised retail business through a whollyowned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to
establish its presence in the retail market in India with a chain of stores on the Health &
Beauty format.
2007 - Dabur Foods merged with Dabur India
Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with
itself to extract synergies and unlock operational efficiencies. The integration will also
help Dabur sharpen focus on the high growth business of foods and beverages, and
enter newer product categories in this space.
2008 - Acquires Fem Care Pharma
Dabur India acquires Fem Care Pharma, a leading player in the women's skin care
market. Besides an entry into the high-growth skin care market with an established
brand name FEM, this transaction also offers Dabur a strong platform to enter newer
product categories and markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club
Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red
Toothpaste crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition
24
Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a
leading personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab
Dabur acquired 100% equity in Namast Laboratories LLC of the US for $100 million.
This marks Daburs entry into the fast-growing ethnic hair care products market in
U.S., Europe and Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours
Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of
hosting the longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market
Dabur enters professional skin care market with the launch of OxyLife Professional
Facial Kit, created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal
Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com
With this, Dabur is the first Indian FMCG company to launch a dedicated online
25
shopping portal for its beauty products range. The portal will be the online gateway for
consumers to know, understand, buy and gift the exclusive Dabur Uveda range of
skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma
Dabur India Ltd acquired Ajanta Pharmas over-the-counter energizer brand 30-Plus.
2011 - Dabur to enter Sri Lanka
Dabur India Ltdsets up new subsidiary in Sri Lanka Dabur Lanka (Pvt.) Ltd. The
company will establish a new export-oriented manufacturing facility for producing a
range of fruit-based beverages in Gampaha, north of Colombo.
2011 - Dabur enters Almond Hair Oil market
Dabur India Ltd launches Dabur Almond Hair Oil, a one-of-its-kind product that offers
superior nourishment for 100% damage-free hair.
2012 - Dabur crosses Billion-Dollar turnover mark
Dabur India Ltd surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal
to end the year with Net Sales of Rs 5,283.17 Crore.
1.1.9 COMPANY DETAILS
Dabur Group
26
Dabur Worldwide
27
28
personal care range successfully selling in markets ranging from the Middle East, Far
East, North Africa and Europe. Inroads into several European and American markets
that have good potential due to resurgence of the back-to-nature movement. Export of
Active Pharmaceutical Ingredients (APIs), manufactured under strict international
quality benchmarks, to Europe, Latin America, Africa, and other Asian countries.
Export of food and textile grade natural gums, extracted from traditional plant sources.
Partnerships & Production- Strategic partnerships with leading multinational food
and health care companies to introduce innovations in products and services. Six
modern manufacturing facilities spread across South Asia, Middle East and Africa
to optimise production by utilising local resources and the most modern technology
available.
29
30
needs.
Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his
official responsibilities, Mr. Duggal likes to spend time at home with his family and an
occasional round of golf.
1.1.12 Corporate Governance- Good corporate governance and transparency in actions of
the management is key to a strong bond of trust with the Companys stakeholders. Dabur
understands the importance of good governance and has constantly avoided an arbitrary
decision-making process. Our initiatives towards this end include: -Professionalization of the
board
31
1.1.13 Corporate Citizenship- When our Founder Dr. S. K. Burman first established
Dabur, he had a vision that saw beyond the profit motive. In his words, "What is that
life worth which cannot bring comfort to others." This ideal of a humane and equitable
society led to initiatives taken to give back some part of what Dabur has gained from
the community. Our major initiatives in the Social sector include: Establishment of the
Sustainable Development Society, or Sundesh, in 1993 - a non-profit organization to
promote research and welfare activities in rural areas; Promoting health and hygiene
amongst the underprivileged through the Chunni Lal Medical Trust; and Organizing
the Plant for Life programme for schoolchildren - to create environmental
awareness amongst young minds.
Our commitment to Environment- Ancient wisdom of conservation- From times
immemorial, Indian sages and men of wisdom have understood and appreciated the
value of nature and its conservation. Our ancestors recognized that if we grabbed from
32
nature beyond what was healthy, it would lead to all round degradation, and even the
extinction of humanity. That is why nature was sanctified and worshipped in the form
of gods and goddesses.
Dabur upholds the tradition
Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision
of Dabur would never have been fulfilled. And that is the reason for our unfailing
commitment to ecological conservation and regeneration. We would like to follow the
principles of our ancient texts, which say: "Dehi me dadami te" - "you give me,
and I give you".
Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all our products
are derived. Due to overexploitation of these resources and unsustainable practices, these
plants and herbs are fast reaching the point of extinction. In view of this critical situation,
Dabur has initiated some significant programmes for ecological regeneration and protection
of endangered plant species.
Plants for Life
We have set up the "Plants for Life" project in the mountainous regions of the Himalayas.
Under the project, a high-tech greenhouse facility has been set up for developing saplings of
rare and endangered medicinal plants. Fully computer-controlled and monitored, this
greenhouse maintains the highly critical environmental parameters required for their survival.
We are also developing quality saplings of more than 20 herbs, 8 of them endangered,
33
In addition, satellite nurseries spread across mountain villages and contract cultivation
of medicinal herbs helps in maintaining the ecological balance. These measures have
also helped provide local cultivators the scientific knowledge for harvesting herbs and
a steady source of income. So that they are not forced to exploit the environment to
earn a livelihood.
At Dabur India Limited, knowledge and technology are key resources which have
helped the Company achieve higher levels of excellence and efficiency. Towards
this overall goal of technology-driven performance, Dabur is utilizing Information
Technology in a big way. This will help in integrating a vast distribution system
spread all over India and across the world. It will also cut down costs and increase
profitability.
Our major IT Initiatives
34
Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April
2006 for all business units. Implementation of a country wide new WAN Infrastructure for
running centralized ERP system.
Setting up of new Data Centre at KCO Head Office.
Extension of Reach System to distributors for capturing Secondary Sales Data.
Roll out of IT services to new plants and CFAs.
Future Challenges
Forward Integration of SAP with Distributors and Stockists.
Backward Integration of SAP with Suppliers.
Implementation of new POS system at Stockist point and integration with SAP-ERP.
Implementation of SAP HR and payroll.
SAP Roll-out to DNPL and other new businesses.
1.1.15 Sustainability ReportAt 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
35
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.
36
37
38
Foods:
Real
Real Activ
Hommade
Lemoneez
Capsico
Health Care:
Baby Care
39
Health Supplements
Dabur Chyawanprash
Dabur Glucose D
Digestives
Hajmola Yumstick
Anardana
Hajmola
Hajmola Candy
Pudin Hara G
Dabur Hingoli
Natural Cures
Shilajit Gold
Nature Care
40
Sat Isabgol
Shilajit
Ring Ring
Itch Care
Backaid
Shankha Pushpi
Dabur Balm
Sarbyna Strong
Personal Care:
41
VatikaHennaConditioning Shampoo
Oral Care:
Babool Toothpaste
DaburBinaca Toothbrush
Skin Care
Gulabari
Ayurvedic Specialities
Ayurveda
42
Ayurveda Vikas
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 wellestablished distribution network, intense competition between the organized and unorganized
segments and low operational cost. Availability of key raw materials, cheaper labour costs and
presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 14.6 billion in 2008 to US$ 33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded products. Growth is
also likely to come from consumer 'upgrading' in the matured product categories. With 200
million people expected to shift to processed and packaged food by 2010, India needs around
US$ 28 billion of investment in the food-processing industry.
India is one of the largest emerging markets, with a population of over one billion. India is
middle class base of 300 million. Around 70 per cent of the total households in India (188
43
million) reside in the rural areas. The total number of rural households are expected to rise from
145 million in 2007 one of the largest economies in the world in terms of purchasing power and
has a strong -08 to 153 million in 2009-10. This presents the largest potential market in the
world. The annual size of the rural FMCG market was estimated at around US$ 14.5 billion in
2007-08. With growing incomes at both the rural and the urban level, the market potential is
expected to expand further.
Urban
Rural
53
145
69
153
% Distribution (2007-08)
28
72
Market (Towns/Villages)
3,768
627,000
3.3
An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes India
one of the largest FMCG markets.
44
comparatively young brand but is already acknowledged for the qualitatively influential and
pioneering role that it has played in the evolution of the categories it has had a presence in.
Currently, the total annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika
Hair Oil enjoys a 6.4% market share in the coconut hair oil category (Source: ACNielsen
ORG-MARG, 2007).Vatika has not just been successful in garnering a premium image but,
today, stands as the preferred and trusted brand of 11.1 million users (Source: IRS Household
Data).
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
46
product was targeted towards the young, contemporary, educated, multi-faceted, achievementdriven and confident women who were positioned as the Vatika Woman.
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
homegrown 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: 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.
47
Product
Price
Place
Promotion
Product
Price
Promotion
Product
List Price
Variety
Discount
Quality
Financing
Design
Features
Brand
Advertising
Place
&
Channels
Promotion
Location
Public Relations
Inventory
Schemes
Sponsorships
Credit Terms
Internet
Marketing
Names
Services
48
PRODUCT:
white and green bottle with a mushroom cap. The green-and-white colors, 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
Flip cans
PRICE/QUALITY MATRIX
Price
Quality
High
Middle
Luxury
Ideal
Segment
Penetration
Low
High
For
Premiere
Offering
VATIKA
50
Overpriced
Average
Middle
Bargain
Make
Low
Real
The
Unhappy
Cheap
Customers
Goods
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.
Daburs distribution network extends beyond India in the following countries as well:
51
Distribution Network
Australia
Asia
Middle East
Promotion
Vatika the key focus brand of the company has always been well supported. The
company realized early that, from the perspective of brand building, it was vital to invest
in this brand.
Vatika Hair Oils first promotion: It focused 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, alma 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 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.
52
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.
53
Chyawanprash user connects with the Youth. These two ads complement each other and
connect very well with the targeted consumers.
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.
Brand Trust: Over 100 years of Daburs experience in Ayurveda ensures selection,
processing and quality control of right herbs along with scientific and clinical studies
makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a
trusted brand and therefore do not need to think twice before making a purchasing
decision.
54
MARKETING MIX FOR DABUR VATIKA HAIR OIL AND DABUR CHYAWANPRASH
Product
Price
Place
Promotion
55
Product
Price
Promotion
Product
List Price
Variety
Discount
Quality
Financing
Design
Features
Brand
Channels
Promotion
Location
Public Relations
Inventory
Schemes
Sponsorships
Credit Terms
Internet
Advertising
Place
&
Marketing
Names
Services
PRODUCT
56
Ashwagandha,
Hareetaki,
Dashmul,
Ghrit
health
beneficial
and
several
fortified
with
additional
herbs
like
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
57
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
PRICE/QUALITY MATRIX
Price
Quality
High
Middle
Luxury
Ideal
Segment
Penetration
Low
For
Premiere
Offering
High
DABUR
CHYAWANPRASH
Overpriced
Average
Middle
Bargain
Make
Low
Real
The
Unhappy
Cheap
Customers
Goods
58
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.
59
We have tried to analyse the competition for Dabur in the Hair Care segment as
follows:
Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The
pleasantly perfumed hair oil has its main market in the Hindi belt and also has
significant presence in eastern and western India. Its share is 6% of the total hair oil
market.
60
Emami has existence in hair oil market through Himani Navratan oil and Himani
Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and
Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair
oil market.
Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond Drops
currently have a value share of 19 per cent and 12 per cent in their respective oil
categories as per ORG-Marg. Besides, the company has also decided to enhance its
retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an
attempt to reach the rural parts. Overall it has a market share of 4% in hair oil
market.
Maricos Parachute is premium edible grade oil, a market leader in its category.
Synonymous with pure coconut oil in the market, Parachute is positioned on the
platform of purity. In fact over time it has become the gold standard for purity.
Parachute's primary targets have been women of all age. The brand has a huge
loyalty, not only in the urban sections of India but also in the rural sector. It has a
market share of 28%.
HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a
3% share in hair oil market.
61
We have tried to analyse the competition for Dabur in the Chyawanprash segment
as follows:
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
62
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 18 thcentury 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
63
Low Penetration(Chyawanprash)
High price(Vatika)
64
Chapter-2
1. Research Methodology
2. Limitation
65
2.1RESEARCH METHODOLOGY
Marketing research is a systematic problem analysis, model building and fact
finding for the purpose of important decision making and control in the
marketing of goods and services.
- Phillip Kotler
As the purpose of the project report is to analyze 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. I handed distributors & wholesalers
and it personally to the respondents to be analyzed. The questionnaire method was useda)
66
b)
Questionnaire provides versatility and solutions can be obtained by just asking the
questions.
c)
d)
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, and brochures and also through the Internet. For secondary sources no
fieldwork 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 choices 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.
Sample size for customers were 150 in number and the universe comprised of all the
consumers within the geographical region of Delhi.
67
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.
No other fieldwork was employed to gather the information. The questionnaires were
distributed to the respondents and the data was collected through primary and secondary
sources
The statistical technique such a Pi-chart and percentages were used in analysing and
interpreting the data.
2.2 LIMITATIONS
Training is a costly affair for the management. It needs a handsome amount and long time. So
management has to play safe game for the benefits of the company as well as the workers. One
wrong decision may enforce the company to fall into deep troubles. So selecting the weak areas
of staffs and workers should be done very carefully. For that the management should be conduct
a test. For providing an effective training, company requires a knowledgeable trainer. Selecting a
particular trainer is again a difficult job. Trainer demands handsome money. Training needs time
and cost both.
To conclude, it is very clear that training should be provided but not at the loss of the company. It
is very costly and time taking affair. But it is most important for the development of the
company. So management cant avoid it at any cost.
a) Due to lack of time (i.e., Two months) it is not possible to reach all respondents.
68
Chapter III
69
how you will communicate the benefits of your Products and persuade customers to
buy
71
them;
the price you will charge.
These four decision variables are the ingredients of the so-called marketing mix. Your
task is to create these elements effectively in order to market your product/service to the
target market in an optimal way.
CREATE AN EFFECTIVE MARKETING MIX
The MARKETING MIX consists of all the controllable variables the company puts
together to satisfy its target market. A typical MARKETING MIX includes decisions
regarding the product, the price of the product, how to promote the product and how to
get the product to the right customer at the right time and place.
All these variables are controllable elements in the marketing mix and can be reduced to
four basic ones, each starting with a P (also known as the four Ps):
Product.
Place.
Price.
Promotion.
The four Ps are those factors that you can control directly, for example, you develop your
product, you decide how to get it to the customer, you determine the price and you choose
the promotion mix. The four Ps are, as you will realize now, with the selection of your
target market are the basic ingredients of your marketing strategy.
72
All four Ps are needed in a marketing mix and should therefore be tied together. When a
marketing mix is developed, all final decisions about the P's should be made. All four Ps
should be in harmony and aimed at satisfying the customer's needs in an optimum way.
You do have control over the marketing mix and can vary it to suit the needs of your
customers and the resources of your business. Customers are continuously matching their
needs with the products offered by you and your competitors.
You should now know your target market and the needs of your potential customers.
From analyzing your competitors, you can identify what they offer the target consumer
through their marketing mixes. This determines what your marketing mix and your
competitive advantage will be. All of the marketing mix elements must reinforce the
image of the product or service that the business portrays to the potential customer.
Lets discuss each P in the marketing mix in more detail.
want to have and keep forms of "immortality" or precious moments. The marketers' job is
to sell these core benefits of the product or service.
Branding means the use of a name, term, symbol, design, or a combination of these, to
identify a product. It includes the use of brand names, trademarks, and practically all
other means of product identification. A brand name is a word, letter, or a group of words
or letters. Examples include Nike, IBM, and Kellogg's. Trademark is a legal term and
includes only those words, symbols, or marks that are legally registered for use by a
single company.
Brand promotion has advantages for sellers as well as for customers. A good brand name
speeds up shopping for the customer, if the customer can immediately recognize the
product, and it will reduce the seller's selling time and effort. When customers repeatedly
buy by brand, the seller is protected against competition from other companies. Good
brands can improve the company's image, and thus speed up acceptance of new products
marketed under the same company name.
Packaging involves promoting and protecting the product. This can be important to both
sellers and customers. It can make a product more convenient to use or store. It can
prevent spoiling or damage. Good packaging makes products easier to identify and
promotes the brand at the point of sale and even in use.
In addition to branding and packaging if the formal product is a physical object, the
market may recognize it as having characteristics like a quality feel, specific features, as
well as styling. If it is a service, it may have some or all of these facets in an analogous
manner.
74
The total product can also consist of elements like free delivery, installation, warranties,
services, maintenance systems, customer advice, financing and other things that
customers perceived to be of value.
MAKE YOUR DECISIONS ON THE PLACE ELEMENT OF THE MARKETING
MIX
Place is concerned with all the decisions involved in getting the right product to the target
market's environment. A product isn't of much use to a customer if it's not available
where and when it is wanted, or needed. A product reaches its target market through a
channel of distribution - any series of companies or individuals, from producer to final
user/consumer. Sometimes a channel system is quite short. It may run directly from a
product to a final user. This is especially common in business markets and the marketing
of services. Often a channel system is more complex and has levels, which involves
different middlemen and specialists.
A zero-level channel, often called a direct marketing channel, consists of a manufacturer
selling directly to a consumer. The choice of the level channel to use will be based on the
competitive advantage, offered by this level. For example, an apple farmer may choose a
zero-level channel by inviting the public to come and pick their own apples at a much
lower price than buying it at a shop.
A two-level channel, for example, contains two intermediaries. In consumer markets,
they are typically a wholesaler and a retailer. In industrial markets, they could be sales
agents and wholesalers and in the service market, only sales agents could be necessary.
75
Distribution channels could also be other than the abovementioned. For example, the
Internet is an excellent distribution channel for selling information. A comedian can also
distribute his services via the TV to his or her target audience.
Part of the place decision is also the layout of a store or shop. Layout is the arrangement
and display of merchandise. A retailer's success depends on a well - designed floor
display. It should pull customers into the shop, make it easy for them to locate
merchandise, compare price, quality, and features, and ultimately buy.
PRICE
In setting a price for your product, you must consider competition in the target market,
and the cost of the total marketing mix. You must also estimate customer reaction to
possible prices.
Furthermore, you also should know current competitor practices such as markups,
discounts, and other terms of sale. You must be aware of legal restrictions on pricing. If
customers won't accept the price, all your planning effort will be wasted.
Consider what the customer is willing to pay and what the customer is likely to expect for
that price. Ask yourself whether the customer feel that he/she is getting value for money
at that price? Remember it is the customer's perception of value for money that counts,
not yours.
You must set the price high enough to cover costs and earn a reasonable profit, but low
enough to attract customers and generate adequate sales volume. The right price today
may be completely inappropriate tomorrow. The reason for this: Ever changing market
conditions.
76
For many small business people non-price competition - focusing on factors other than
price - is a more effective strategy than trying to beat larger competitors in a price war.
Non-price competition factors are: free trial offers, free delivery, lengthy warranties,
money-back guarantees, allowing for bargaining, stressing durability, quality, reputation,
or special features.
The pricing policy of a business also offers important information about its overall image.
The prices charged at ladies' clothing boutique reflect a completely different image from
those charged by a chain store. High prices for some products frequently convey the idea
of quality, prestige, and uniqueness to the customer.
Competitors' prices can have a dramatic impact on your sale. You should make it a habit
to monitor your rivals' prices, especially on identical items. The following two factors are
vital to studying the effects of competition on your pricing policies: location of
competitors, and the nature of competing products.
Without the advantage of a unique business image - quality of goods sold, number of
services provided, convenient location, favorable credit terms - you will have to match
local competitors' prices or lose sales. You also have to recognize which products are
substitutes for those you sell and then strive to keep your prices in line with them.
Effective Techniques you can use when Pricing a New Product
In the initial setting of a product's price, you must try to achieve three objectives:
* Getting the product accepted.
* Maintaining market share as competition grows.
* Earning a profit.
77
Skimming: The idea is to set a price well above the total unit cost and to promote
the product heavily in order to appeal to the segment of the market that isn't
sensitive to price. This technique often reinforces the unique, prestigious image of
a shop and projects a quality picture of the product.
high price until technological advancements enable you to lower your costs. The art is
to reduce the product's price sooner than that of your its competitors. Computer
price declines are a good example of this technique.
Setting the Price
In this section, we will explain the process of setting the price of your product/service, by the use
of two case studies. The one is for retailers and the other for manufacturers.
78
Chapter IV
1.
100
80
60
40
20
0
PERCENTAGE
INTERPRETATION-It was observed that 90% customers award about the dabur vatika
hair oil.
PREFERRED BRAND
80
40
35
30
25
20
15
10
5
0
PERCENTAGE
INTERPRETATION- It was observed that 30% customers preferred the dabur vatika among
the wide range of hair oil.
SATISFACTION LEVEL
4
3.5
3
2.5
2
1.5
1
0.5
0
RATING(1-LOW 5-HIGH)
INTERPRETATION-It was observed that the satisfaction levels are high about the quality
of the vatika hair oil.
REASON TO BUY THE PREFFERED BRAND
81
45
40
35
30
25
20
15
10
5
0
PERCENTAGE
INTERPRETATION
It was observed that the reason to buy vatika hair oil is non-sticky 45%, brand loyalty 20%
fragrance 10% & price 30%.
INTERPRETATION
82
It was observed that 25% customers could wait in case of unavailability the dabur vatika
hair oil.
PREFERRED PACK SIZE
60
50
40
PERCENTAGE
30
20
10
0
75ml
150 ml
300 ml
INTERPRETATION
It was observed that 55% of customers preferred 150ml, 20% of 75ml & 25% of customers
preferred 300ml pack of the dabur vatika hair oil.
40
35
30
25
20
15
10
5
0
PERCENTAGE
83
INTERPRETATION
It was observed that 40% of customers preferred because of availability, 25% for price,
15% for family size & 20% of customers for storage.
FREQUENCY OF PURCHASE
70
60
50
40
PERCENTAGE
30
20
10
0
15 DAYS
INTERPRETATION
It was observed that 5% of customers buy within the 15days, 32% of within the 1 month & 63%
of customers buy the hair oil after the 2month.
RETAIL SURVEY RESULTS
DABUR VATIKA
1. Which brands of Hair Oil do you stock?
84
80
70
60
50
40
30
20
10
0
PERCENTAGE
INTERPRETATION
It was observed that 75% of total stock of hair oil is dabur vatika hair oil
2.Out of these, which are the most preferred?
50
40
30
PERCENTAGE
20
10
0
marico
hll
INTERPRETATION
It was observed that 35% of total customers mostly preferred the dabur vatika hair oil.
85
50
45
40
35
30
25
20
15
10
5
0
PERCENTAGE
INTERPRETATION
It was observed that the reasons for preferred are brand loyalty 50% availability
5% & price 20%.
4. What is the profile of your typical consumer?
50
40
30
20
PERCENTAGE
10
0
high income
middle income
low income
INTERPRETATION
It was observed that 20% from high-class income, 50% from middle class
income group & 30% from low income.
86
40
35
30
25
PERCENTAGE
20
15
10
5
0
others
INTERPRETATION
It was observed that schemes that are mostly provided by the companies are price
discount 40%, buy one get one 35% & others are 25%.
6. What schemes does a consumer prefer most?
60
50
40
30
20
10
0
PERCENTAGE
INTERPRETATION
It was observed that schemes that are mostly preferred by the customers are price
discount 60%, buy one get one 25% & others are 15%.
87
60
50
40
PERCENTAGE
30
20
10
0
ye s
no
INTERPRETATION
It was observed that advertisings have an affect on the consumers preference yes40% and No 60%.
8.Does a change in price affect their preferences
60
50
40
PERCENTAGE
30
20
10
0
yes
no
INTERPRETATION
88
55%.
Chapter v
89
90
5.1 CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed
Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several. Other
herbs and herbal extracts. The market. The consumers patriotic love for tea and coffee is
unfired. Chyawanprash are yet to establish their supplement use in the average household here in
lays the great opportunities. Within the market, it is safe to conclude that dabur has hit off rather
well with the masses. Dabur has clearly lost it head start advantage and thereby acquiring just
35% of the market share while others enjoy rest of the market share. This could be well
attributed to dabur 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 Australian Product Tabasco.
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.
that target Market of Chyawanprash want quality benefit rather than 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.
92
5.2 Suggestion
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 Maricos Kaya Skin Clinic, Dabur could
start a venture called Vatika hair care centre, which would provide total hair care
solutions. It could have hair care experts to solve hair problems. Services could
include dandruff treatment, straightening of hair, treatment for split ends, etc.
Position Dabur Chyawanprash as not more of a medicine but as something, which
is necessary for health.
93
to
to
Chapter VI
1.Bibliography
94
5.1 BIBLIOGRAPHY
BOOKS:
1. Philip Kotlar, Marketing Management ; Analysis Planning & Control; Prentice Hall, 9th
Edition
2. Saxena Ranjan, Marketing Management; TATA Mcgraw Hill, 4th Edition, 2000.
WEBSITES:
WWW.Dabur.com
95
Chapter VII
1. Appendices
96
7.2 Appendices
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
Dabur Vatika
Parachute
Keo Karpin
Nihar
97
Dabur Vatika
4. What are the primary reasons for which you use this particular brand?
Non sticky
Brand Loyalty
Fragrance
Price
TV
Internet
Word of Mouth
Print
98
Go for a substitute
75 ml
150 ml
300 ml
Availability
Price
Family size
Storage
Once in 15 days
Once a month
99
Yes
No
100
101