A PROJECT REPORT On
MARKETING STRATEGY OF DABUR VATIKA HAIR OIL & DABUR CHYAWANPRASH
SUMMAR TRAINING PROJECT REPORT SUBMITTED TOWARDS PRACTICAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
Submitted To :
Submitted By :
MR. KARTIK
ANUJ KUMAR SHAHI
Faculty MA91116
MBA IInd Sem. Reg. No. :
VEL RANGARAJAN SAKUNTHALA COLLEGE OF MANAGEMENT & SCIENCE CHENNAI MARKETING MANAGEMENT TERM PROJECT
Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
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VEL RANGARAJAN SAKUNTHALA COLLEGE OF MANAGEMENT & SCIENCE CHENNAI MARKETING MANAGEMENT TERM PROJECT
Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
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ACKNOWLEDGEMENT The present work is an effort to throw some light on “ Marketing Strategy of Dabur Vatika Hair Oil & Chyawanprash” . The work would
not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mr. Sumit Sharma (BRANCH MANAGER) and other staff members of Dabur India Ltd.
I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Research Report.
{ANUJ KUMAR SHAHI}
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TABLE OF CONTENTS
1.EXECUTIVE SUMMARY
7
2.INTRODUCTION
9
•
COMPANY PROFILE
10
•
PRODUCT PROFILE
11
3.OBJECTIVE
39
4.RESEARCH METHODOLOGY
41
• •
MARKETING RESEARCH SAMPLING
5.ANALYSIS
45
6.FINDINGS 7.SWOT ANALYSIS
63
8.RECOMMENDATIONS
67
9. CONCLUSION
69
10.APPENDICES
72
11. BIBLIOGRAPHY
83
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EXECUTIVE SUMMARY This report aims at analysing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the company’s highest selling brands. Vatika is a 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. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyse the marketing mix of Dabur Vatika Hair Oil and Dabur Chyawanprash. The report also enlists various recommendations based on BCG Growth Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles.
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COMPANY OVERVIEW
Over its 120 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.
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COMPANY HISTORY
1884
Birth of Dabur
1896
Setting up a manufacturing plant
Early 1900s
Ayurvedic medicines
1919
Establishment of research laboratories
1920
Expands further
1936
Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972
Shift to Delhi
1979
Sahibabad factory / Dabur Research Foundation
1986
Public Limited Company
1992
Joint venture with Agrolimen of Spain
1993
Cancer treatment
1994
Public issues
1995
Joint Ventures
1996
3 septante divisions
1997
Foods Division / Project STARS
1998
Professionals to manage the Company
2000
Turnover of Rs.1,000 crores
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PRODUCT LINE Foods
•
Real
•
Real Activ
•
Hommade
•
Lemoneez
•
Capsico
Health Care Baby Care
•
Dabur Lal Tail
•
Dabur Baby Olive Oil
•
Dabur Janma Ghunti
Health Supplements
•
Dabur Chyawanprash
•
Dabur Glucose D
Digestives
•
Hajmola Yumstick
•
Hajmola Mast Masala
•
Anardana
•
Hajmola
•
Hajmola Candy Fun2 12
•
Hajmola Candy
•
Pudin Hara (Liquid and Pearls)
•
Pudin Hara G
•
Dabur Hingoli
Natural Cures
•
Shilajit Gold
•
Nature Care
•
Sat Isabgol
•
Shilajit
•
Ring Ring
•
Itch Care
•
Backaid
•
Shankha Pushpi
•
Dabur Balm
•
Sarbyna Strong
Personal Care Hair Care Oil
•
Amla Hair Oil
•
Amla Lite Hair Oil
•
Vatika Hair Oil
•
Anmol Sarson Amla
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•
Anmol Silky Black Shampoo VatikaHennaConditioning
•
Shampoo •
Vatika AntiDandruff Shampoo
•
Anmol Natural Shine Shampoo
Oral Care
•
Dabur Red Gel
•
Dabur Red Toothpaste
•
Babool Toothpaste
•
Dabur Lal Dant Manjan DaburBinaca
•
Toothbrush Skin Care
•
Gulabari
•
Vatika Fairness Face Pack
Ayurvedic Specialities
•
Ayurveda
•
Ayurveda Vikas
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Rural and urban potential Rural-urban profile OVERVIEW OF FMCG SECTOR IN INDIA The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is 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 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 one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households are expected to rise from 145 million in 2007-08 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG
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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 Population 2007-08 (mn household) 53 Population 2009-10 (mn household) 69 % Distribution (2007-08) 28 Market (Towns/Villages) 3,768 Universe of Outlets (mn) 1 Source: Statistical Outline of India (2008-09), NCAER
Rural 145 153 72 627,000 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.
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OVERVIEW OF VATIKA: The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the company’s highest selling brands. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales crossed Rs. 1,000 million. From the company’s perspective, Vatika is expected to continue to drive its growth in the years to come. With its innovative offerings, the brand aims to become a frontrunner in the market for hair care and skin care products. Vatika is a 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).
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STP ANALYSIS OF VATIKA HAIR OIL
SEGMENTATION Vatika Hair Oil was launched at an almost 100% premium to the market leader. This meant that the segment of the market that dabur wanted to cater to was the premium segment which valued nourishment of the hair above the price and it tried to attend to that segment which was not price sensitive .
TARGETING This was in line with its proposition and overall brand strategy of a premium up-market product targeted for individual needs as opposed to the collectivist culture of the category. It targeted the high-income urban category of hair oil users. Since the product was expensive it could mainly cater to the urban market as opposed to the rural market where consumers are highly price sensitive. Being positioned as having amla, henna and lemon extracts, the product was targeted towards the young, contemporary,
educated,
multi-faceted,
achievement-driven
and
confident women who were positioned as the Vatika Woman.
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. 19
“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-today 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.
MARKETING MIX OF VATIKA HAIR OIL Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The mix shall be analyzed as followed: •
Product
•
Price
•
Place
•
Promotion
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Product
Price
Promotion
Product
•
List Price
Variety
•
Discount
•
Quality
•
Financing
•
Design
•
Features
•
Brand
•
•
Place •
Channels
Promotion
•
Location
•
Public Relations
•
Inventory
Schemes
•
Sponsorships
Credit Terms
•
Internet
•
Advertising
&
Marketing
Names •
Services
PRODUCT:
Brand Name: Vatika in Hindi means ‘garden’. The brand attempts to live up to the promises – beauty and nature – that are associated with its very name. Starting
with
these
associations
Vatika
has
assiduously built a brand that delivers on all these values through its various product offerings, the mother brand being Vatika Hair Oil. Innovative product offering:. Vatika Hair Oil is coconut hair oil with special ingredients adding value to the product. While coconut oil has been regularly used by Indian women as a basic hair nutrient, a combination of herbs and natural products such as henna, amla and lemon have been used for special hair needs.
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Coconut hair oil provides nourishment to the hair, while henna along with other herbs coat the hair and protect it from oxidation, thereby maintaining its natural colour. Amla strengthens hair roots and helps maintain their natural health and thickness. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. Apart from henna, amla and lemon, it also contains other natural ingredients like brahmi, neem, bahera, kapurkachari, harar, and ugdha and sugandhit dravyas. Packaging: The qualities of Vatika products, ascribed to the brand by hundreds of thousands of satisfied consumers, have been further underlined by its attractive packaging. In a category dominated by blue packs as analogous of pure coconut oils, Vatika broke the norm with its white and green bottle with a mushroom cap. The green-and-white 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
75 ml, 150 ml, 300 ml
Flip cans
150 ml, 300 ml
Flip cans were introduced for the winter season. Quality: Vatika products contain natural ingredients that have been blended together through scientific processes at Dabur’s in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards.
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PRICE/QUALITY MATRIX
Price→ Quality
High
Middle
Low
Luxury
Ideal
Segment
Penetration
Offering
Average
Real
↓
High
For
Premiere
VATIKA Overpriced
Bargain
Middle
Low
Make
The
Unhappy
Cheap
Sale
and
Customers
Goods
Run
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PLACE Vatik Vatika a produ products cts incl includ uding ing Vatik Vatika a Hair Hair Oil Oil are are sold sold in 38 coun countri tries es thro throug ugh h more more than than 15 lakh lakh retail retail ou outle tlets ts and and 5,000 5,000 distr distribu ibutor tors s wh who o service the entire country through a wide marketing network.
Dabu Dabur’ r’s s dist distri ribu buti tion on netw networ ork k exte extend nds s beyo beyond nd Indi India a in the the foll follow owin ing g countries as well:
Distribution Network •
Central, North & South America
•
Australia
•
Asia
•
Middle East
•
North & South Africa
•
East & West Europe 24
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. Vatik Vatika a Hair Hair Oil’s Oil’s first first promo promotio tion: n: It focus focused ed on the key key bene benefit fit – beautiful hair without hair problems – that came about as a result of the extra nourishment through the value addition of henna, amla and lemon-derived additives. Creati ating
conceptual tual awaren reness: In
the the
initial ial
phase
of
the the
communi communicati cation, on, the marketin marketing g obj objecti ective ve was to create create concept conceptual ual aware aw arene ness ss about about the the new new produ product ct – the the go good odne ness ss of coco coconu nutt oil oil enriched enriched with natural natural herbs. Vatika was firmly establ establishe ished d as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika. In 1997, 1997, the the compan company y creat created ed a new new promot promotion ion campa campaig ign, n, wh which ich 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.
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STP ANALYSIS OF DABUR CHYAWANPRASH
SEGMENTATION Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever-busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient. For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy .
TARGETING Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids. This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user
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connects with the Youth. These two ads compliment 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. Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveys this health conscious holistic view of the product. Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection, processing and quality control of right herbs along with scientific and clinical studies – makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a trusted brand and therefore do not need to think twice before making a purchasing decision.
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MARKETING MIX OF DABUR CHYAWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as followed: •
Product
•
Price
•
Place
•
Promotion
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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 Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immune-stimulant. Dabur 29
Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users.
Ingredients of Dabur Chyawanprash •
Vishwast Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts.
•
Special Vishwast fortified with additional health beneficial herbs like Keshar, Akarkara etc.
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
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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
↓
High
For
DABUR CHYAWANPRASH
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Premiere Offering
Overpriced
Average
Bargain
Middle
Low
Real
Make
The
Unhappy
Cheap
Sale
and
Customers
Goods
Run
PLACE Dabur has a very wide distribution of its products through 1.6 million retail outlets and 50 C & F agents all over India who distribute products to the retailers. A distribution of C & F agents and manufacturing locations is given below.
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Dabur’s distribution network extends beyond India in the following countries as well:
Distribution Network •
Central, North & South America
•
Australia
•
Asia
•
Middle East
•
North & South Africa
•
East & West Europe
PROMOTION
The main form of promotional activities of Dabur chyawanprash is concentrated towards advertising and it has legible sales promotional activities. 33
Advertising Nothing can happen without establishing the brand’s heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mould able and fluid and the consumer’s sophistication level is low.
Dabur
chyawanprash is advertised on print media as well as on television. The company has launched three ads, one each with Amitabh, M.S.DHONI and Vivek, in national electronic media followed by a series of print media campaign directed towards creating awareness to educate people about the holistic benefits of Chyawanprash.The ads have been created by McCann Ericsson and the company would be spending close to Rs 10 crore in promotional campaign this year. The ads would also be translated in Bengali. These advertisements are supposed to target the old and the younger generation respectively. .
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COMPETITOR ANALYSIS OF VATIKA The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj, Marico, HLL, which together with Dabur have about 64% of India's domestic market.
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Dabur is one of India's largest players in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%. 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. 36
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. Marico’s 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.
COMPETITOR ANALYSIS OF CHYAWANPRASH
37
The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Himani, which together with Dabur have about 85% of India's domestic market. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%. We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows :
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Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Its Chyawanprash has a market share of 10%. Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). The 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
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OBJECTIVE OF THE Study’s 40
Following are the major objective of study: 1. To study the impact(strong effect or imperission) of Budget Policies on
Marketing Strategy of Dabur Foods. 2. To study the Consumer, Buying behavior. 3. To study the problems faced by Dabur.
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RESEARCH METHODOLOGY
As the purpose of the project report is to analyse the consumable products successfully launched in the last three years. The data was collected both with the help of primary as well as secondary sources.
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 analysed. The questionnaire method was useda)
To get first and relevant and unbiased information
b)
Questionnaire provides versatility and solutions can be obtained by just asking the questions.
c)
Questioning is usually faster and cheaper.
d)
Moreover, there is more control over data gathering activities.
Secondary data
was also collected personally by me, which the
company has furnished for the general public. The secondary data was gathered with the help of various magazines, newspapers, journals, and brochures and also through the Internet. For secondary sources no fieldwork was employed.
43
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. For Dabur chyawanprash and Vatika hair oil. 1.
Sample size for customers were 150 in number and the universe comprised of all the consumers within the geographical region of Delhi.
2.
Sample size for retailers were 40 in number and the universe comprised of all the consumers within the geographical region or Delhi.
3)
Sample size for Distributor & Wholesaler were four in number & the universe comprised of all the consumers within the geographical region of Delhi.
44
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.
45
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CUSTOMER SURVEY RESULTS DABUR VATIKA AWARNESS LEVEL
100 80 60 40
PERCENTAGE
20 0 PARACHUTE KEO KARPIN
NIHAR
HAIR AND CARE
DABUR VATIKA
INTERPRETATION
It was observed that 90% customers award about the dabur vatika hair oil .
PREFERRED BRAND 40 35 30 25 20 PERCENTAGE
15 10 5 0 PARACHUTE
NIHAR
VATIKA
NTERPRETATION
It was observed that 30% customers preferred the dabur vatika among the wide range of hair oil . 47
SATISFACTION LEVEL
4 3.5 3 2.5 2 1.5 1 0.5 0
RATING(1-LOW 5-HIGH)
PARACHUTE
NIHAR
VATIKA
INTERPRETATION
It was observed that the satisfaction levels are high about the quality of the vatika hair oil.
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CUSTOMER SURVEY RESULTS DABUR CHYAWANPRASH AWARNESS LEVEL 100 80 60 PERCENTAGE
40 20 0
ZANDU
HIMANI
BAIDYANATH
DABUR
INTERPRETATION It was observed that 100% of the customers already award about the DABUR CHYAWANPRASH
PREFERRED BRAND 60 50 40 30
PERCENTAGE
20 10 0 ZANDU
HIMANI
BAIDYANATH
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DABUR
INTERPRETATION It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH SATISFACTION LEVEL
5 4 3 2
RATING(1-LOW 5-HIGH)
1 0 ZANDU
HIMANI
BAIDYANATH
DABUR
INTERPRETATION It was observed that the satisfaction level are high of the customers about the DABUR CHYAWANPRASH
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SWOT ANALYSIS OF DABUR
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STRENGTHS •
WEAKNESS
Strong presence in well defined
•
Seasonal Demand( like
niches( like value added Hair Oil
chyawanprash in winter and
and Ayurveda specialities)
Vatika not in winter)
Core knowledge of Ayurveda as
•
Low Penetration(Chyawanprash)
competitive advantage
•
High price(Vatika)
•
Strong Brand Image
•
Limited differentiation (Vatika)
•
Product Development Strength
•
Unbranded players account for
•
Strong Distribution Network
the 2/3rd of the total
•
Extensive Supply Chain
market(Vatika)
•
IT Initiatives
•
R & D – a key strength
•
OPPORTUNITIES
THREATS
•
Untapped Market(Chyawanprash)
•
Market Development
Himani, baidyanath and Zandu
•
Export opportunities.
for Dabur Chyawanprash and
•
Innovation
Marico,Keo Karpin, HLL and
•
Increasing income level of the
Existing Competition( like
Bajaj for Vatika Hair Oil)
middle class •
•
Creating additional consumption
•
New Entrants
•
Threat from substitutes (like Bryllcream for Vatika hair oil)
pattern
52
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DISTRIBUTION Supply chain: Dabur has steadily improved its procurement and distribution systems to achieve a significant reduction in material costs. Dabur has an extensive supply chain and distribution network that has grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50 Carrying and Forwarding Agents (CFAs) that distribute more than 1,000 SKU’s to several thousand stockists and dealers. MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays as-of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers. VSATs: This Success paved the ground for the company's supply chain initiative. Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs. At some locations VPNs had to be used because it was not possible to set up a dish. The integrated primary and secondary system has a number of unique features. The features like tight integration of schemes, stockists credit limit control, automated banking of cheques, and online cheque reconciliation have obvious advantages in the primary distribution. These are basically extensions to the MFG/PRO ERP system and not core customizations. The integrated system allows each Area Manager to plan for the month's sales forecasts, stockist’s performance, and sales officers' performance. The integration allows better control on pipelines in primaries and secondaries, brings down inventories, and offers better control on production and sales against a confirmed forecast. The idea is to increasingly shift focus from primaries to secondaries. Schemes based on secondary volumes will help control secondary pipelines and sales. Primary sales will therefore come from a resultant 'pull' from secondary replenishments. Further, sales order servicing can be improved by taking orders through the Internet. 54
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RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within and outside India.
Improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.
Provide consumers with innovative products within easy reach.
Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a venture called Vatika hair care centre, which would provide total hair care solutions. It could have hair care experts to solve hair problems. Services could include dandruff treatment, straightening of hair, treatment for split ends, etc.
Position Dabur Chyawanprash as not more of a medicine but as something, which is necessary for health.
More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an initiative to occupy shelf space.
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57
CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several Other herbs and herbal extracts. The market. The consumer’s patriotic love for tea and coffee is 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 enjoys 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.
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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.
It is an expensive proposition requiring huge
expenditure on advertising, sponsorships and media.
Thus, the ideal
company will be the one, which combines the high-end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget, Many food companies including Dabur got benefited from it. On the analysis of survey it was found that target Market of Chyawanprash want quality benefit rather then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand. As vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target market should use the 59
vatika hair oil and adopt it in making daily food thereby increasing the market share of vatika hair oil.
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CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for hair oil. Any information provided by you will strictly be used for Academic Purpose. 1.Which brands of hair oil are you aware of? •
Parachute
•
Keo Karpin
•
Nihar
•
Hair And Care
•
Dabur Vatika
2.Which brand of Hair Oil do you use? •
Parachute
•
Keo Karpin
•
Nihar
•
Hair And Care
•
Dabur Vatika
3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)? •
1
•
2
•
3
•
4
•
5
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4.What are the primary reasons for which you use this particular brand? •
Non sticky
•
Brand Loyalty
•
Fragrance
•
Price
5.How did you get to hear about this brand? •
TV
•
Internet
•
Word of Mouth
•
Print
6. If your brand is not available you would? •
Purchase another brand
•
Wait for it to be available
•
Go for a substitute
•
Buy what is offered by the retailer
7.Which pack size do you prefer? •
75 ml
•
150 ml
•
300 ml
8.On what parameters do you choose this pack size? •
Availability
•
Price
•
Family size
•
Storage 62
9.How often do you buy? •
Once in 15 days
•
Once a month
•
Once in two months
10.Are you satisfied with your brand? •
Yes
•
No
Personal Information: Age: Location: Income (per month): (1) Rs. 1,000 – Rs. 10,000
(2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,00
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RETAILER QUESTIONNAIRE-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 the Hair Oil category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only. 1.Which brands of Hair Oil do you stock? •
Marico
•
HLL
•
Keo Karpin
•
Dabur Vatika
2.Out of these, which are the most preferred? •
Marico
•
HLL
•
Keo Karpin
•
Dabur Vatika
3.According to you what are the reasons for customers’ preferences? •
Brand loyalty
•
Price
•
Availability
•
No reason
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4.What is the profile of your typical consumer? •
High income
•
Middle income
•
Low income
5.What schemes are you offered by the companies? •
Price discounts
•
Buy one get one free
•
Others
6.What schemes does a consumer prefer most? •
Price discounts
•
Buy one get one free
•
Others
7.According to you, does in-store advertising have an affect on the consumers’ preference? •
Yes
•
No
8.Does a change in price affect their preferences? •
Yes
•
No
Personal Information: Location of store:
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CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for chawanprash. Any information provided by you will strictly be used for Academic Purpose. 1.Which brands of Chawanprash are you aware of? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
2.Which brand of Chawanprash do you use? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)? •
1
•
2
•
3
•
4
66
4.What are the primary reasons for which you use this particular brand? •
Health
•
Brand Loyalty
•
Taste
•
Price
5.How did you get to hear about this brand? •
TV
•
Internet
•
Word of Mouth
•
Print
6.If your brand is not available you would? •
Purchase another brand
•
Wait for it to be available
•
Go for a substitute
•
Buy what is offered by the retailer
7.Which pack size do you prefer? •
1 kg
•
500 gm
•
250 gm
8.On what parameters do you choose this pack size? •
Availability
•
Price 67
•
Family size
•
Storage
9.How often do you buy? •
Once a month
•
Once in two months
•
Once in six months
10.Are you satisfied with your brand? •
Yes
•
No
Personal Information: Age: Location: Income (per month): (1) Rs. 1,000 – Rs. 10,000
(2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000
(4) Above Rs. 50,000
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RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Chyawanprash category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only. 1.Which brands of Chyawanprash do you stock? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
2.Out of these, which are the most preferred? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
3.According to you what are the reasons for customers’ preferences? •
Brand loyalty
•
Price
•
Availability 69
•
No reason
4.What is the profile of your typical consumer? •
High income
•
Middle income
•
Low income
5.What schemes are you offered by the companies? •
Price discounts
•
Buy one get one free
•
Others
6.What schemes does a consumer prefer most? •
Price discounts
•
Buy one get one free
•
Others
7.According to you, does in-store advertising have an affect on the consumers’ preference? •
Yes
•
No
8.Does a change in price affect their preferences? •
Yes
•
No
Personal Information :Location of store: 70
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