Introduction to the Topic
The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started a health
care products manufacturing facility in a small Calcutta pharmacy. In 1896, as a result
of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for
mass production of formulations. In early 1900s, Dabur entered the specialized area of
nature based Ayurvedic medicines. In 1919, Dabur established research laboratories to
develop scientific processes and quality checks. In 1936, Dabur became a full-fledged
company with the name Dabur India (Dr. S.K. Burman) Pvt Ltd. Dabur shifted its
operations to Delhi in 1972. Dabur became a Public Limited Company in 1986 and
Dabur India Limited came into existence after reverse merger with Vidogum Limited.
In 1992, Dabur entered into a joint venture with Agrolimen of Spain to manufacture
and market confectionary items in India. In 1994, Dabur raised its first IPO. In 1998,
day to day running of the company was handed over to professionals. In 2000, Dabur
achieved a turnover of Rs 1000 crores. In 2005, Dabur acquired Balsara. Dabur crossed
$ 2 billion market cap in 2006. Some of the well-known brands of Dabur are: Amla
Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool
Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and
Vatika.
2
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.
4
COMPANY HISTORY
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn
and grow to a commanding status in the industry. The Company has gone a long way in
popularizing and making easily available a whole range of products based on the
traditional science of Ayurveda. And it has set very high standards in developing
products and processes that meet stringent quality norms.
1884 - Established by Dr. S K Burman at Kolkata
1896 - First production unit established at Garhia
1919 - First R&D unit established
Early 1900s – Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is
the first Company to provide health care through scientifically tested and
automated production of formulations based on our traditional science.
1930 - Automation and up gradation of Ayurvedic products manufacturing
initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda
Dabur introduces Indian consumers to personal care through Ayurveda, with the
launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest
selling hair oil brand in India.
1949 - Launched Dabur Chyawanprash in tin pack
Widening the popularity and usage of traditional Ayurvedic products continues. The
ancient restorative Chyawanprash is launched in packaged form, and becomes the
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first branded Chyawanprash in India.
1957 - Computerization of operations initiated
1970 - Entered Oral Care & Digestives segment
Addressing rural markets where homemade oral care is more popular than
multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently
packaged herbal toothpowder is made available at affordable costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978 - Launches Hajmola tablet
Dabur continues to make innovative products based on traditional formulations that
can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive
aid is branded and launched as the popular Hajmola tablet.
1979 - Dabur Research Foundation set up
1979 - Commercial production starts at Sahibabad, the most modern herbal
medicines plant at that time
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
1989 - Care with fun
The Ayurvedic digestive formulation is converted into a children's fun product with
the launch of Hajmola Candy. In an innovative move, a curative product is
converted to a confectionary item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncology segment
1994 - Leadership in health care
Dabur establishes its leadership in health care as one of only two companies
worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research
Foundation develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice
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1996 - Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of Real
Fruit Juices - a new concept in the Indian foods market. The first local brand of
100% pure natural fruit juices made to international standards, Real becomes the
fastest growing and largest selling brand in the country.
1998 - Burman family hands over management of the company to professionals
2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs.1, 000
crores. Across a span of over 100 years, Dabur has grown from a small beginning
based on traditional health care. To a commanding position amongst an august league
of large corporate businesses.
2001 - Super specialty drugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains
entry into the highly specialized area of cancer therapy. The state-of-the-art plant
and laboratory in the UK have approval from the MCA of UK. They follow FDA
guidelines for production of drugs specifically for European and American markets.
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore
PRODUCT LINE
Foods8
Real
Real Activ
Hommade
Lemoneez
Capsico
Health Care
Baby Care
Dabur Lal Tail
Dabur Baby Olive Oil
Dabur Janma Ghunti
Health Supplements
Dabur Chyawanprash
Dabur Glucose D
9
Hajmola Yumstick
Hajmola Mast Masala
Anardana
Hajmola
Hajmola Candy
Hajmola Candy Fun 2
Pudin Hara (Liquid and Pearls)
Pudin Hara G
Dabur Hingoli
Natural Cures
Shilajit Gold
Nature Care
Sat Isabgol
Shilajit
Ring Ring
Itch Care
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Backaid
Shankha Pushpi
Dabur Balm
Sarbyna Strong
Personal Care
Hair Care Oil
Amla Hair Oil
Amla Lite Hair Oil
Vatika Hair Oil
Anmol Sarson Amla
Hair Care Shampoo
Anmol Silky Black Shampoo
Vatika Henna Conditioning Shampoo
Vatika AntiDandruff Shampoo
Anmol Natural Shine Shampoo
Oral Care
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Dabur Red Gel
Dabur Red Toothpaste
Babool Toothpaste
Dabur Lal Dant Manjan
Dabur Binaca Toothbrush
Skin Care
Gulabari
Vatika Fairness Face Pack
Ayurvedic Specialities
Ayurveda12
COMPANY PROFILE
ITC is one of India's foremost private sector companies with a market
capitalization of over US $ 7.5 billion and a turnover of US $ 2.6 billion.
Rated among the World's Leading Companies by Forbes magazine, ITC
ranks third in pre-tax profit among India's private sector corporations. ITC
has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods &
Confectionery, Greeting Cards and other FMCG products. While ITC is an
outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share
even in its nascent businesses of Branded Apparel, Greeting Cards and
Packaged Foods & Confectionery.
As one of India's most valuable and respected corporations, ITC is widely
perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls
this source of inspiration "a commitment beyond the market". In his own
words: "ITC believes that its aspiration to create enduring value for the
nation provides the motive force to sustain growing
14
shareholder value. ITC practises this philosophy by not only driving each of
its businesses towards international competitiveness but by also
consciously contributing to enhancing the competitiveness of the larger
value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at
creating multiple drivers of growth anchored on its time-tested core
competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service
skills in hoteliering. Over time, the strategic forays into new
Businesses are expected to garner a significant share of these emerging
high-growth markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural
products. ITC is one of the country's biggest foreign exchange earners (US $
2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling
Indian agriculture significantly enhance its competitiveness by empowering
Indian farmers through the power of the Internet. This transformational
strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge
rural distribution infrastructure, significantly enhancing the Company's
marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India
Limited, is aggressively pursuing emerging opportunities in providing end-
to-end IT solutions, including e-enabled services and business process
outsourcing.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to be rated for
Corporate Governance by ICRA, an associate of Moody's Investors Service,
which accorded it the second highest rating, signifying "a high level of
assurance on the quality of corporate governance."
15
ITC employs over 15,000 people at more than 60 locations across India.
Ranked among India's most valuable companies by the 'Business Today'
magazine, ITC continuously endeavors to enhance its wealth generating
capabilities in a globalising environment to consistently reward more than
1, 37, 916 shareholders, fulfil the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder."
Key points
Strong volume growth in the core cigarette business in Q1FY2005—11%
year-on-year, among the highest in the previous ten quarters.
This is the third consecutive year of no excise duty increase and the second
year of no price hike in cigarettes, leaving scope for the company to hike
cigarette prices and boost its profits further.
Diversification is paying off with non-cigarette businesses like hotels, paper
and agri-products turning around.
The stock is presently quoting at 14.3x FY2005 earnings, which is
attractive, and we recommend buying this stock.
ITC's core business of cigarettes, we believe, will continue to grow at
4% in FY2005 in volume terms. Besides, it has made an entry into
bakery and other fast moving consumer goods (FMCG) product lines
(such as soaps and detergents),
which will benefit from its strengths in distribution. Meanwhile almost
all of ITC's earlier diversifications are paying off—the hotels, paper
and the agri-product ventures are likely to return the cost of capital
invested in the next couple of years. ITC quotes at 14.3x FY2005E
earnings. Its capital expenditure needs are limited and litigation risks
16
have all but disappeared. Hence we expect higher dividend pay-outs.
We recommend buying this Apple Green stock
Key highlights of Q1FY06 results and interaction with ITC management
Core cigarette business growth of 11% in Q1FY05 partially due to early
stocking at the dealer end in anticipation of a hike in excise duty in the
Union Budget presented in July 2004.
Our reading is that volume growth in cigarettes stood at a strong 7-7.5% in
Q1FY2005 (adjusted for the inventory build-up prior to the budget).
Filter cigarettes now account for over 77% of overall turnover.
The market share of ITC in cigarettes is around 69%.
17
Growth in the agri segment was led by increased sales of soya in the
quarter.
Substantive increase in capacities in paper and paperboards with expansion
at the Bhadrachalan plant (to be completed by October 2004) and the
65,000tpa (which was acquired by ITC from BILT) located at Kovai
commenced production during the quarter.
Increase in other expenditure mainly coming from increased advertisement
spends before the "Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production, Supply
and Distribution) Act, 2003"
18
History of ITC Ltd
ITC was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India Limited'. Its beginnings were humble. A leased
office on Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated its 16th birthday on August 24, 1926,
by purchasing the plot of land situated at 37, Chowringhee, (now renamed
J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the
Company was historic in more ways than one. It was to mark the beginning
of a long and eventful journey into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land
two years later, would go on to become one of Kolkata's most venerated
landmarks. The Company's ownership progressively Indianised, and the
name of the Company was changed to I.T.C. Limited in 1974. In recognition
of the Company's multi-business portfolio encompassing a wide range of
businesses - Cigarettes & Tobacco, Hotels, Information Technology,
Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the Company's
name were removed effective September 18, 2001. The Company now
stands rechristened 'ITC Limited'.
19
Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a
corporate transformation that would usher in momentous changes in the
life of the Company.
20
The Core Competency
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, it has a leadership position in every segment of the
market. It’s highly popular portfolio of brands includes India Kings, Gold
Flake, Wills, Scissors, Capstan, Berkeley and Bristol.
ITC's leadership is founded on its core strategy of
continuously enhancing product values through
significant investments in product design,
manufacturing technology, quality,
marketing and distribution. In just the last
5 years, ITC has made capital investments
of over Rs. 7 billion in its cigarettes
business. In ITC, one of the pioneers of market research in India, the
consumer is still the King. The Company continuously endeavours to
provide its consumers products that are benchmarked to international
quality. This strategic focus on the consumer has paid ITC
handsome dividends. The most important of these is its enriched
product mix, unmatched by competition. ITC's share of filter cigarettes
in the country is more than 70%.
21
In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-Val, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in
the Middle East. The response to these brands has been encouraging. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of productivity and very contemporary work environment.
ITC's FMCG businesses have one of the largest retail networks in
the country, consisting of over 2 million retailers. Its reach covers a
wide range of the retail spectrum, from premium outlets in the metros to
small shops in the interiors of rural India.
In Q1FY2005, cigarette volumes registered an increase of 11% year
on year, which is among the highest growth rates seen in the
previous ten quarters (see chart below). We believe that a part of this
surge in volumes may be the normal build-up of stocks at the dealer
level prior to the announcement of the Union Budget. As per our
estimates the growth in cigarette volumes for Q1FY2005 stood at 7-
7.5%, which is still higher than the 4% growth clocked over the past
four quarters.
22
ITC's Cigarettes business has won numerous awards for its quality,
environmental management systems and product excellence:
The Kolkata factory has won the prestigious Greentech Safety Gold
Award for the year 2003-2004 in the manufacturing sector. This award is in
recognition of the high level of performance that the unit has achieved in
Environment Health & Safety (EHS).
ITC's cigarette factories in Kolkata, Bangalore and Munger have
been awarded the OHSAS:18001 Certificate by Det Norske Veritas
(DNV) for their Occupational Health and Safety Management
Systems (OHSMS).
23
The Kolkata factory has been placed First in Category 'B' for having made
the best efforts towards Safety Management in the Safety Contest of the
Confederation of Indian Industry-Eastern Region (CII-ER).
ITC has been awarded the "Best Manufacturer of Cigarettes" and "3rd Best
Exporter of Tobacco Products" for 2003, by the Tobacco Board of India.
The Saharanpur factory has won the "GOLD" Award, 2003 on Occupational
Safety from The Royal Society for the Prevention of Accidents (RoSPA), UK.
The Kolkata factory was the first cigarette factory in the world to
receive the ISO 14001 accreditation for their environmental management
systems. The Saharanpur and Bangalore factories have also received the
ISO 14001 certification.
The Munger, Saharanpur and Bangalore factories have received the
prestigious Sword of Honour Award from the British Safety Council
for highest standards of safety.
All cigarette factories have ISO 9002 quality certification. ITC's Tobacco
Technology Centre at Peenya, Bangalore has the distinction of being
the first independent R&D centre in India to get ISO 9001 accreditation.
The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best
in Eastern Region) for 1998.
24
PARENT UNIT OF ITC LIMITED
Registered Office
Virgina House
37 Chowringhee
Calcutta 700 071
Ph: (09133) 288 6426/226/0034
Fax: (09133) 217/2258
Email: [email protected]
Plant location
SAHARANPUR
BANGALORE
CHENNAI
CALCUTTA
WEST BENGAL
25
SISTER CONCERNS COMPANIES
A. IN INDIA
ITC Bhadrachalam Paperboards Ltd (56.00%)
BFIL Finance Ltd (99.99%)
BFIL Securities Ltd (99.98%)
MRR Trading & Investment Ltd (99.98%)
ITC Hotels Ltd (71.23%)
Srinivasa Resort Ltd (68%)
Bay Island Hotels Ltd (100%)
Greenace Holding Ltd (100%)
Fortune Park Hotel Ltd (99.99%)
Russell Credit Ltd (100%)
ITC Infotech Ltd (100%)
All India Tobacco Company Ltd (100%)
Elan Enterprises Ltd (100%)
ITC Global Holdings Pvt Ltd (100%)
26
Brands
SNo.
Name of the Product Multi National Company
01. India King Indian Tobacco Company
02. Classic Indian Tobacco Company
03. Gold Flakes Indian Tobacco Company
04. Gold Flakes King Indian Tobacco Company
05. Filter Indian Tobacco Company
06. Wills Indian Tobacco Company
07. Wills Light Indian Tobacco Company
08. Wills King Indian Tobacco Company
09. Wills Filter Indian Tobacco Company
10. Wills Flakes Indian Tobacco Company
11. Silk cut Indian Tobacco Company
12. Tiger Indian Tobacco Company
13. Charms Filter King Wazir Sultan Tobacco
14. Charms Wazir Sultan Tobacco
15. Charminar Wazir Sultan Tobacco
16. Charminar Special Wazir Sultan Tobacco
17. Cavenders Godfrey Phillips India Ltd.
18. Cavenders Filter Godfrey Phillips India Ltd.
19. Cavenders Leaf Godfrey Phillips India Ltd.
20. Uttam Brooke Bond India Ltd.
21. Cavenders Magnum Godfrey Phillips India Ltd.
22. Four Square King Godfrey Phillips India Ltd.
27
23. Four Square Filter Godfrey Phillips India Ltd.
24.Four Square Special
FilterGodfrey Phillips India Ltd.
28
Research Methodology
Research Plan
Data source : Primary data and secondary data
Research approach : Observation & Survey
Research instrument : Questionnaire for consumers, retailers & dealers
Sampling Plan : Sampling unit Sample size 100, Sampling
procedure random
Contact method : Personal
Field work plan : Survey place & time
Research & common platform, refer to a knowledge. Another definition of research & a
careful investigation or enquiry specially through search for new fact in any brand of
knowledge.
Before embarking upon the research plan the research objective were specified. The
clarity of the objective was helpful in carrying forth the project plan with core & with
encumbrance.
30
Methodology used in survey
Data collection : A structure from which is primary. In this sources of information was
used in this research was designed in order to find out the various record information &
also to fulfill the objectives of the project.
All form filled by myself taking a part of on English. Some question were framed in the
forms in directly so as to gather the information which …. Would have been asked
directly might have offered the retailers so that this had to be frame indirectly.
Sample Selection : Area of study: I choose the routes to know the market conditions of
the DABUR and ITC
Methodology Adopted
As the purpose of the project report is to analyse the consumable products successfully
launched in the last three years.
The data was collected both with the help of primary as well as secondary sources.
For primary data, I proceeded with the drafting of the questionnaire for consumers was
structured as undisguised, & Personal -interview retailers. Distributors & wholesalers
and it was handed personally by me to the respondents to be analysed.
The questionnaire method was used-
a) To get first and relevant and unbiased information
b) Questionnaire provides versatility and solutions can be obtained by just asking
the questions.
31
c) Questioning is usually faster and cheaper.
d) Moreover, there is more control over data gathering activities.
Secondary data was also collected personally by me, which the company has furnished
for the general public. The secondary data was gathered with the help of various
magazines, newspapers, journals, brochures and also through the internet. For
secondary sources no field work was employed.
In order to amplify the empirical findings from primary and secondary sources, a
survey was conducted both of consumers and retailers Distributor & Wholesalers in
order to gauge the market opinion.
The questionnaire was of multiple choice and the pattern of questions was as simple as
possible. With every question, multiple choices were given and
respondents were asked to select one of them. The questionnaire technique was
structured and not disguised as the questions followed one pattern and reason behind
the questionnaire was stated properly. All the questions were directly related to the
subject.
32
For Dabor Chyawanprash and Vatika hair oil.
1) Sample size for customers were 150 in number and the universe comprised of
all the consumers within the geographical region of Delhi.
2) Sample size for retailers were 40 in number and the universe comprised of all
the consumers within the geographical region or Delhi.
3) Sample size for Distributor & Wholesaler were four in number & the universe
comprised of all the consumers within the geographical region of Delhi.
For ITC I selected same questions for ITC Personnel care Products
33
SWOT ANALYSIS OF DABUR
STRENGTHS
Strong presence in well defined niches( like value added Hair Oil and Ayurveda
specialities)
Core knowledge of Ayurveda as competitive advantage
Strong Brand Image
Product Development Strength
Strong Distribution Network
Extensive Supply Chain
IT Initiatives
R & D – a key strength.
WEAKNESS
Seasonal Demand( like chyawanprash in winter and Vatika not in winter)
Low Penetration(Chyawanprash)
High price(Vatika)
Limited differentiation (Vatika)
Unbranded players account for the 2/3rd of the total market(Vatika)
OPPORTUNITIES
35
Untapped Market(Chyawanprash)
Market Development
Export opportunities.
Innovation
Increasing income level of the middle class
Creating additional consumption pattern
THREATS
Existing Competition( like Himani, baidyanath and Zandu for Dabur
Chyawanprash and Marico,Keo Karpin, HLL and Bajaj for Vatika Hair Oil)
New Entrants
Threat from substitutes (like Bryllcream for Vatika hair oil)
36
SWOT ANALYSIS OF ITC LTD.
Organization performs SWOT(Strength, Weakness, Opportunity, Threats) analysis to identify
and evaluate their competitive position.
STREGTHS:
The company has excellent distribution system.
The company has built a strong image among the customers.
The company has an excellent distribution system.
The company experiences excellent Brand loyalty for its Products from the customers.
The company has made its Packaging attractive which lures the customers and
consequently the products are favorite among the customers.
WEAKNESSES
Some products have high prices as compared to the other products OF Godfrey Philips
India Ltd. & Gallaher Group.
The company branches are not spread through out the region; as a result load of the
work at the regional offices are tremendous.
The company pays less attention towards advertisement as against its competitors.
The brewery of the company is old and not up to expectation of modern times.
37
OPPORTUNITIES
India has a vast potential market, which the company can get hold up.
The company can prove to be major threats for its competitor’s if it increases its
marketing efforts.
ITC Ltd. should concentrate on the premium segment market.
THREATS
The major threat that company faces is from its competitors who are introducing products with
more features at lower cost backed by aggressive promotional scheme .
The new packaging style introduce by the company for the beer i.e. in Tin is posing
threat to the existing bottle packing system.
The arrival of the MNC is a major serious threat for the company.
38
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.
39
POSITIONING
‘Total hair Care’ brand’
The product innovation was fed by the vital consumer insight that many women
in contemporary India are worried about hair problems caused by urban
pollution, frequent change of diet due to geographical mobility and other factors.
Beset by modern-day hair problems, they are far more inclined to rely on home-
grown remedies. By offering hair oil that combined the benefits of natural
products in a single pack, Vatika created a niche for itself as the ‘total hair care’
brand.
“Natural” offering
Vatika is a brand that espouses traditional wisdom about health in a modern
format. It believes that nature has perennial answers to day-to-day health issues,
particularly when it comes to hair care and skin care. In a world where modern
living causes untold stress the Vatika brand holds out the promise of providing
natural ingredients that rejuvenate and safeguard the human body in an
extraordinary way. This concept is put to work through contemporary, modern
products, offered by Vatika.
The Vatika woman
40
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.
41
MARKETING MIX OF VATIKA HAIR OIL
Vatika Hair Oil has made a huge impact with its innovative product offering, pricing
strategy, easy availability and promotion campaigns. In the marketing mix of Dabur,
we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The
mix shall be analyzed as followed:
Product
Price
Place
Promotion
Product Price Promotion Place
• Product
Variety
• Quality
• Design
• Features
• Brand
Names
• Services
• List Price
• Discount
• Financing
Schemes
• Credit
Terms
• Advertising &
Promotion
• Public
Relations
• Sponsorships
• Internet
Marketing
• Channels
• Location
• Inventory
42
PRODUCT
Brand Name: Vatika in Hindi means ‘garden’. The brand
attempts to live up to the promises – beauty and nature –
that are associated with its very name. Starting with these
associations Vatika has assiduously built a brand that
delivers on all these values through its various product
offerings, the mother brand being Vatika Hair Oil..
Innovative product offering:. Vatika Hair Oil is coconut
hair oil with special ingredients adding value to the product. While coconut oil
has been regularly used by Indian women as a basic hair nutrient, a combination
of herbs and natural products such as henna, amla and lemon have been used
for special hair needs.
Coconut hair oil provides nourishment to the hair, while henna along with other
herbs coat the hair and protect it from oxidation, thereby maintaining its natural
colour. Amla strengthens hair roots and helps maintain their natural health and
thickness. Lemon with its astringent action controls sebum flow and helps in
prevention of dandruff.
Apart from henna, amla and lemon, it also contains other natural ingredients like
brahmi, neem, bahera, kapur, kachari, harar, dugdha and sugandhit
dravyas.
43
Packaging: The qualities of Vatika products, ascribed to the brand by hundreds
of thousands of satisfied consumers, have been further underlined by its
attractive packaging. In a category dominated by blue
packs as analogous of pure coconut oils, Vatika broke the norm with its white
and green bottle with a mushroom cap.The green-and-white colours, used in its
packaging, reflect the brands’ natural ancestry and give it a premium look.
These also help Vatika stand out in the cluttered environment of Indian retail.
Available in
Bottles 75 ml, 150 ml, 300 ml
Flip cans 150 ml, 300 ml
Flip cans were introduced for the winter season.
Quality Vatika products contain natural ingredients that have been blended together
through scientific processes at Dabur’s in-house research laboratories. Dabur Research
Foundation has more than 100 scientists working together to make superior quality
products that match international standards.
44
PRICE
In the traditional coconut hair oil category, which presumably had price sensitive
consumers, Vatika Hair Oil with its value added proposition – henna, amla and
lemon in a pure coconut oil – broke this myth when it launched at almost a
100% premium to the market leader; even with such a pricing strategy it was
able to garner a significant share from the leader in the very first year of its
launch.
The table above shows that Dabur Vatika is one of the highest priced of hair oils
since it targets the higher income class and also that the prices have remain
unchanged since 1999.
45
PRICE/QUALITY MATRIX
Price→
Quality
↓
High Middle Low
High
Luxury
Segment
VATIKA
Ideal For
Penetration
Premiere
Offering
Middle
Overpriced Average Real
Bargain
Low
Make The Sale
and Run
Unhappy
Customers
Cheap
Goods
46
PLACE
Vatika products including Vatika Hair Oil are sold in 38 countries through more
than 15 lakh retail outlets and 5,000 distributors who service the entire country
through a wide marketing network.
Dabur’s distribution network extends beyond India in the following countries as well:
Distribution Network
Central, North & South America
47
Australia
Asia
Middle East
North & South Africa
East & West Europe
48
PROMOTION
Vatika – the key focus brand of the company – has always been well
supported. The company realised early that, from the perspective of brand
building, it was vital to invest in this brand.
.
Vatika Hair Oil’s first promotion: It focussed on the key benefit –
beautiful hair without hair problems – that came about as a result of the extra
nourishment through the value addition of henna, amla and lemon-derived
additives.
Creating conceptual awareness: In the initial phase of the communication,
the marketing objective was to create conceptual awareness about the new
product – the goodness of coconut oil
49
enriched with natural herbs. Vatika was firmly established as the leader in
the new category of value-added hair oils and its promotion campaign was so
successful that the product segment itself came to be identified with Vatika.
In 1997, the company created a new promotion campaign which reinforced
the obvious fact that most coconut oil brands were not equipped to combat
the effects of pollution, hard water and chemicals – the major causes of hair
ailments and hair deterioration.
ADVERTISING
“Advertising is some form of paid-for method of communicating with the target
audience to inform, educate, reinforce or persuade, leading to mutually
satisfactory exchange”
Nothing can happen without establishing the brand’s heritage emphasizing
technological prowess, explaining benefits and building bonds with prospective
buyers. Ads are necessary because the images are still mouldable and fluid and
the consumer’s sophistication level is low.
Vatika Hair Oil uses a number of advertising media like television, print,
internet, outdoor media which includes hoardings.
Events: In a series of other promotional activities, Vatika has been associated
with shows and sponsored events such as the Vatika Super Model India 2001
50
and Vatika Zee Sangeet Awards. It has also had a strong association, since its
inception, with Mover’s and Shakers’ – the popular TV show.
Celebrity
Endorsements: The
idea of using an extraordinary
hair oil that offered extra
nourishment was
communicated through
campaigns featuring
icons such as Mandira
Bedi, Shefali Chhaya and Sudha Chandran– all modern,
young women perceived to have that extra edge in their
personality.A number of commercials over the years have
featured personalities like Aditi Govitrikar, Preeti Jhangiani
and Shweta Jaishankar.To infuse the values of youthfulness
and natural beauty, Rani Mukherjee is the current brand
ambassador
51
CUSTOMER SURVEY RESULTS
DABUR VATIKA
AWARNESS LEVEL
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
5
10
15
20
25
30
35
40
PERCENTAGE
PREFERRED BRAND
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
5
10
15
20
25
30
35
40
PERCENTAGE
52
SATISFACTION LEVEL
PARACHUTE KEO KARPIN NIHAR HAIR AND CARE
VATIKA
0
0.5
1
1.5
2
2.5
3
3.5
4
RATING(1-LOW 5-HIGH)
REASON TO BUY THE PREFFERED BRAND
NON STICKY BRAND LOYALTY
FRAGRANCE PRICE0
5
10
15
20
25
30
35
40
45
PERCENTAGE
53
HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
TV INTERNET WOM PRINT0
10
20
30
40
50
60
70
80
PERCENTAGE
UNAVAILABILITY OF PREFERRED BRAND
PURCHASE ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER
0
5
10
15
20
25
30
35
40
45
PERCENTAGE
PREFERRED PACK SIZE
54
75ml 150 ml 300 ml0
10
20
30
40
50
60
PERCENTAGE
REASON TO SELECT PREFERRED PACK SIZE
AVAILABILITY PRICE FAMILY SIZE STORAGE0
5
10
15
20
25
30
35
40
PERCENTAGE
55
RETAIL SURVEY RESULTS
DABUR VATIKA
1) Which brands of Hair Oil do you stock?
marico hll karrpikeo karpin vatika
0
10
20
30
40
50
60
70
80
PERCENTAGE
2) .Out of these which are the most preferred?
marico hll karrpikeo karpin vatika
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
57
3) According to you what are the reasons for customers’ preferences?
brand loyalty price availability no reason
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
4) What is the profile of your typical consumer?
high income middle income low income
0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
58
5) What schemes are you offered by the companies?
price discount buy one get one others0
5
10
15
20
25
30
35
40
PERCENTAGE
6) What schemes does a consumer prefer most?
price discount buy one get one others0
10
20
30
40
50
60
PERCENTAGE
59
7) According to you, does in-store advertising have an affect on the consumers’ preference?
yes no0
10
20
30
40
50
60
PERCENTAGE
8) Does a change in price affect their preferences
yes no0
10
20
30
40
50
60
PERCENTAGE
60
STP ANALYSIS OF DABUR CHYAWANPRASH
SEGMENTATION
Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes
under the category of health supplements. The segments that it considers are growing
kids, competitive youth, ever busy housewives and the aged.
For the growing kids: In today's competitive environment, the children are under high
pressure to excel.
For the competitive youth: Modern life keeps the youth busy and demands them to be
active and efficient.
For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all
responsibilities.
For the aged: Old age weakens a person physically and mentally.
After segmenting the population into these categories it aims to keep them fit and
healthy.
61
TARGETING
Traditionally, chyawanprash was supposed to be a health supplement for the aged and
kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and
kids .This it is trying to achieve through its promotion activities by making Amitabh
Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a
user of Chyawanprash attempting to establish the relevance of DCP amongst the adults
in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user
with a mindset that Chyawanprash is not for him, meets his moment of truth when
outperformed by a young Chyawanprash user, thus reaching out to kids. His final
conversion from a non-user to a Chyawanprash user connects with the Youth. These
two ads compliment each other and connect very well with the targeted consumers
62
POSITIONING
"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By using
a natural language instead of scientific language it is able to connect with the
consumers and is able to achieve a better positioning in the minds of the Indian health
conscious consumer. A category like Chyawanprash for instance needs to understand
that in employing the category language it loses any chance of expressing its own
benefit distinctively.
Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating
immune system, relieving stress, improving stamina, fighting aging through anti-
oxidant property, improving lung function, fighting respiratory infections & building
resistance to disease. The brand conveys this health conscious holistic view of the
product.
Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection,
processing and quality control of right herbs along with scientific and clinical studies –
makes DCP a trustworthy offering for consumers. Consumers view DCP as a product
by a trusted brand and therefore do not need to think twice before making a purchasing
decision.
63
MARKETING MIX OF DABUR CHYAWANPRASH
Dabur Chyawanprash is the market leader in the chyawanprash segment and has
achieved this with its innovative product offering, pricing strategy, easy availability and
promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps
of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as
followed:
Product
Price
Place
Promotion
64
Product Price Promotion Place
• Product
Variety
• Quality
• Design
• Features
• Brand
Names
• Services
• List Price
• Discount
• Financing
Schemes
• Credit
Terms
• Advertising &
Promotion
• Public
Relations
• Sponsorships
• Internet
Marketing
• Channels
• Location
• Inventory
65
PRODUCT
Dabur Chyawanprash is the leader in the Chyawanprash category and
enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept
of branded Chyawanprash and since has invested heavily in product
development, clinical studies and consumer awareness. The product is essentially a
health supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning. The principal ingredient Amla (Indian
Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps
in stimulating immune system, relieving stress, improving stamina, fighting aging
through anti-oxidant property, improving lung function, fighting respiratory infections
& building resistance to disease. It is these properties that make Dabur Chyawanprash a
preferred choice for its users.
Ingredients of Dabur Chyawanprash
Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.
66
Packaging
The figure above shows the evolution of the packaging of Dabur Chyawanprash.
Dabur continuously innovates the package and branding of its chayawanprash. It
launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded
Chyawanprash in India. Later Dabur came out with its new packet of Chyawanprash
with Amitabh Bachchan as their brand ambassador. It also received “Brand
Relaunch of the Year “award from IMA.
Available in
Dabur Chyawanprash is available in three sizes to cater to the needs of different types
of people.
1. One kilogram pack
2. 500 gram pack
3. 250 gram pack
67
PRICE
The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses
second degree price discrimination i.e more the quantity, lower the price.
1kg Rs.175.00
500gms Rs.100.00
250gms Rs. 55.00
68
PRICE/QUALITY MATRIX
Price→
Quality
↓
High Middle Low
High
Luxury
Segment
Ideal For Penetration
DABUR
CHYAWANPRASH
Premiere
Offering
MiddleOverpriced Average Real
Bargain
Low
Make The
Sale and
Run
Unhappy Customers Cheap
Goods
69
PLACE
Dabur has a very wide distribution of its products through 1.6 million retail outlets and
50 C & F agents all over India who distribute products to the retailers. A distribution of
C & F agents and manufacturing locations is given below.
Dabur’s distribution network extends beyond India in the following countries as well:
70
Distribution Network
Central, North & South America
Australia
Asia
Middle East
North & South Africa
East & West Europe
71
PROMOTION
The main form of promotional activities of Dabur chyawanprash are concentrated
towards advertising and it has neglible sales promotional activities.
Advertising
Nothing can happen without establishing the brand’s heritage emphasizing
technological prowess, explaining benefits and building bonds with prospective buyers.
Ads are necessary because the images are still mouldable and fluid and the consumer’s
sophistication level is low. Dabur chyawanprash is advertised on print media as well
as on television.
The company has launched two ads, one each with Amitabh and Vivek, in national
electronic media followed by a series of print media campaign directed towards
creating awareness to educate people about the holistic benefits of Chyawanprash.The
ads have been created by McCann Ericsson and the company would be spending close
to Rs 10 crore in promotional campaign this year. The ads would also be translated in
Bengali. These advertisements are supposed to target the old and the younger
generation respectively.
73
Advertisement showing Vivek Oberoi
A little boy suggests his brother To which the brother replies,
to have Dabur Chyawanprash “Mujhe iski kya zaroorat?
everyday.
The boy asserts, “Zaroorat The big brother follows him but
hai!” and starts running. is unable to catch him using every way.
74
Running with super energy the boy ...the big brother also dives in the
dives into the river. Not to be left behind... river but ultimately stops when he
get tired
With no option left he agrees The ad ends on the big brother
with his younger brother, “maan promising to have a spoon of the
gaye guru, tere Dabur chyawanprash everyday. But Our
Chyawanprash ko” younger one insists on two spoons.
76
COMPETITOR ANALYSIS
The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu
and Himani, which together with Dabur have about 85% of India's domestic market.
Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of
FMCG. It was established in 1884, and had grown to a business level in 2003 of about
650 million dollars per year, though only a fraction of that is involved with Ayurvedic
medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.
We have tried to analyse the competition for Dabur in the Chyawanprash segment as
follows:
77
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917
in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded
into the FMCG sector with cosmetic and hair care products; one of its international
products is Shikakai (soap pod) Shampoo.Its Chyawanprash has a market share of 10%.
Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an
18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in
1930, pharmaceuticals were added, but the pharmaceutical division was separated off
about 30 years later).
The Emami Group, founded in 1974, provides a diverse range of products, doing 110
million dollars of business annually, though only a portion is involved with Ayurvedic
products, through its Himani line; the company is mainly involved with toiletries and
cosmetics, but also provides Chyawanprash and other health products.Its market share
is 12%.
78
CUSTOMER SURVEY RESULTS
DABUR CHYAWANPRASH
AWARNESS LEVEL
ZANDU HIMANI BAIDYANATH DABUR0
10
20
30
40
50
60
70
80
90
100
PERCENTAGE
PREFERRED BRAND
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
PER-CENTAGE
79
SATISFACTION LEVEL
ZANDU HIMANI BAIDYANATH DABUR
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
RATING(1-LOW 5-HIGH)
REASONS FOR SELECTING A PARTICULAR BRAND
HEALTH BRAND LOYALTY
TASTE PRICE0
10
20
30
40
50
60
70
PERCENTAGE
80
HOW DID YOU COME TO KNOW ABOUT THIS BRAND
TV INTERNET WOM PRINT0
10
20
30
40
50
60
70
80
PERCENTAGE
UNAVAILABILITY OF PREFERRED BRAND
PURCHASE ANOTHER BRAND
WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER
0
5
10
15
20
25
30
35
40
PERCENTAGE
81
PREFERRED PACK SIZE
1 Kg 500 gm 250 gm0
5
10
15
20
25
30
35
40
45
50
PERCENTAGE
REASON TO SELECT PREFERRED PACK SIZE
AVAILABILITY PRICE FAMILY SIZE STORAGE0
5
10
15
20
25
30
35
40
PERCENTAGE
82
FREQUENCY OF PURCHARE
ONE MONTH TWO MONTHS SIX MONTHS0
10
20
30
40
50
60
PERCENTAGE
RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1) Which brands of Chyawanprash do you stock?
83
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
70
80
90
100
PER-CENTAGE
2) Out of these which are the most preferred?
ZANDU HIMANI BAIDYANATH DABUR
0
10
20
30
40
50
60
70
80
RATING(1-LOW 5-HIGH)
3) According to you what are the reasons for customers’ preferences?
84
brand loyalty price availability no reason0
10
20
30
40
50
60
PERCENTAGE
4) What is the profile of your typical consumer?
high income middle income low income0
10
20
30
40
50
60
70
PERCENTAGE
5) What schemes are you offered by the companies?
85
price discount buy one get one others0
10
20
30
40
50
60
PERCENTAGE
6) What schemes does a consumer prefer most?
price discount buy one get one others0
10
20
30
40
50
60
70
PERCENTAGE
7) According to you, does in-store advertising have an affect on the consumers’ preference?
86
yes no0
10
20
30
40
50
60
70
PERCENTAGE
8) .Does a change in price affect their preferences?
yes no0
10
20
30
40
50
60
PERCENTAGE
87
DISTRIBUTION
Supply chain: Dabur has steadily improved its procurement and distribution systems to
achieve a significant reduction in material costs. Dabur has an extensive supply chain
and distribution network that has grown and spans 29 factories, 47 stocking points, 4
zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50
Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKU’s to
several thousand stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays
as-of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP
pages meet almost all reporting requirements and make this a single source of MIS for
all levels of decision makers.
VSATs: This Success paved the ground for the company's supply chain initiative.
Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the
system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access)
VSATs. At some locations VPNs had to be used because it was not possible to set up a
dish.The integrated primary and secondary system has a number of unique features.
The features like tight integration of schemes, stockists credit limit control, automated
banking of cheques, and online cheque reconciliation have obvious advantages in the
primary distribution. These are basically extensions to the MFG/PRO ERP system
and not core customizations. The integrated system allows each Area Manager to plan
for the month's sales forecasts, stockists performance, and sales officers'
performance.The integration allows better control on pipelines in primaries and
secondaries, brings down inventories, and offers better control on production and sales
against a confirmed forecast. The idea is to increasingly shift focus from primaries to
88
secondaries. Schemes based on secondary volumes will help control secondary
pipelines and sales. Primary sales will therefore come from a resultant 'pull' from
secondary replenishments. Further, sales order servicing can be improved by taking
orders through the Internet, and by setting stocking norms and replenishing stocks to
improve ROI of stock holders.
ANSOFF’S PRODUCT MARKET EXPANSION GRID
MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan
and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish the
relevance of Chyawanprash in an increasingly tough and demanding lifestyle, for the
entire family. As a market leader, Dabur’s focus has been to increase the relevance of
this time-tested and proven product in the family - both for users and non users - and
89
increase penetration. In their new campaign they have tried to establish the fact that
Chyawanprash, with its ‘well - being’ properties, gives an edge to the users and dispel
the myth that it should be consumed in illness or is meant only for Children or the aged.
MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for
the future. An international business division has been set up within the company to
promote exports and it expect this business to grow steadily in the coming years. The
company plans to focus on Russia and CIS countries along with Afghanistan, West
Indies and the Asia Pacific region. It has also entered the North American markets by
appointing distributors and initiating marketing of products to the ethnic Indian
segment. The company has already been exporting hair oils, shampoos and Hajmola
candies to Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a
local partner to manufacture and market its products. Dabur will hold a majority stake
in this joint venture.
PRODUCT DEVELOPMENT:
Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first
quarter this fiscal, would be investing significantly in the launch of several new
products including Dabur Herbal Toothpaste and Vatika Henna Conditioning hair
packs over the coming months.
The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry cannot be
defined only by the performance of large players. Smaller companies are now dictating
terms and defining the market. DIL will launch new products backed by adequate
research." 90
DIVERSIFICATION: Diversification across product segments and markets is one of
the key factors in favour of Dabur India. In 2001-02, Dabur India had three major
revenue contributors — FMCG products, pharmaceuticals and ayurvedic specialties,
accounting for 76 per cent, 14 per cent and 7 per cent respectively, of its revenues.
Dabur's FMCG product basket includes such strong brands as Dabur Chyawanprash,
Vatika hair products, Hajmola digestive candy, Pudin Hara, Dabur Lal Dant Manjan
and Dabur Lal Tail massage oil. In pharmaceuticals, Dabur India markets branded as
well as bulk formulations, both in the domestic and export markets; oncologicals is a
key focus area. Dabur's anticancer molecule DRF 7295 is currently in Phase I clinical
trials on humans.
In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has entered the toilet
soap market besides expanding its over-the-counter (OTC) medicine range with 10
new additions over the next few months. The company has begun test marketing toilet
soaps under the brand name Vatika in West Bengal. There is a single variant,
containing saffron and honey, right now and Dabur is positioning it on the herbal
platform. Manufacturing of the soaps category is being outsourced at present
Besides diversifying its product portfolio under the Consumer Care Division (CCD)
with a foray into soaps, DIL has also decided to enhance focus on the Consumer
Healthcare Division (CHD) this fiscal. The newly created CHD division within DIL
deals in prescription-based Ayurvedic medicines and over-the-counter (OTC) products.
Traditionally a business with low growth prospects, CHD closed 2004-05 at Rs 107.8
crore.
91
Some of the existing OTC products of DIL include cough and cold formulation
Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi .
The company plans to launch other products under its own brand name in Russia and
has already launched Dabur Boro Glow.
.
92
Findings
THE NEW DABUR ENTITY
The New Dabur Identity modernizes the 100-year old equity of the Dabur brand by
subtly transforming the tree. While it retains the essence of the banyan tree, it now
projects a contemporary image, in consonance with today's lifestyle.
The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and
protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a
symbol of fertility. The new Dabur identity retains these enduring and valuable
attributes, while it adds a fresh, healthy and holistic dimension to the tree.
The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's
heritage, commitment and stability through the form and colours of the tree; its
branches and leaves. It also conveys that the brand stands for wellness across age
groups. Taken as a whole, the tree appears well rooted, implying stability; and its
abundant canopy implies that it can provide amply for those who seek its produce and
shade. Further, the entire image, being well-proportioned, evokes a harmonious, well-
balanced, wholesome and holistic brand.
In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a
heaven for creatures it generously harbours in its foliage, as well as in the shade of its
canopy. The tree is held auspicious as it spreads through the three spheres with its roots
94
meshing through the earth, its trunk rising through the terrestrial world and its branches
reaching into the heavens. This symbolism also occurs in cultures across the world.
Keeping these vital associations in mind, the tree in the new Dabur identity has been
carefully created to communicate Dabur's invaluable 100-year old legacy as well as its
future aspirations. It now takes on a younger avatar, in its form and colours, and strikes
a rapport with the consumer as a proactive brand with a commitment to wellness and to
nurturing an active lifestyle across age groups.
Thus, through its form and colours, the new logo identity combines freshness and
stability. It expresses a brand that is positive, proactive and progressive. The burst of
leaves and their colours symbolize growth, rejuvenation and inner strength. The form
and colour of the trunk convey growth, youthfulness and stability. Thus, the logo
identity lock up presents Dabur as a stable yet evolving, contemporary, vibrant and
active brand cherishing nature as the source of all its endeavours along with an abiding
commitment to the wellness of consumers across age groups
95
USEFULNESS AND IMPORTANCE OF STUDY
IMPORTANCE OF THE STUDY
Being student of MBA it is very essential for me to have a practical knowledge in an
organization. Only to study business administration course knowledge is not the
solution of the problems, which arise in practical field. There is a certain formula for
any particular problem, but the aim of this study is to develop the ability of decision
making. A right decision at right time and right place itself helps an organization to run
smoothly.
This study gives an idea of all marketing activities. So the way a problem is solved
right decision making and knowledge of different types of making activities give much
importance to the study. Only in two month training it was not possible to understand
it so deeply, but an overall idea could be developed.
97
The importance and usefulness of the study is discussed as under
1. To study the impact of Budget Policies on Marketing Strategy of Dabur Foods.
2. To study the Consumer, Buying behavior.
3. To study the problems faced by Dabur.
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CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing.
Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit
and several other herbs and herbal extracts. the market. The consumer’s patriotic love
for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use
in the average household here in lies the great opportunities. Within the market, it is
safe to conclude that dabur has hit off ratherwell with the masses. dabur has clearly
lost it head start advantage and thereby acquiring just 35% of the market share while
others enjoys rest of the market share. This could be well attributed to dabor successful
ATA (Availability, Taste and Affordability) marketing module, the attributes most
rated by the consumers. Lack of publicity has hampered the growth progress of the
brand so aggressive advertising is needed to promote Chyawanprash and vatika hair
oil brand .The brands such as that of Chyawanprash by vednath, Chyawanprash
with its ‘sonacahndi, ‘Minute- made’ and also US food giantssDel Monte are ready to
hit the Chyawanprash market very soon.
Vatika hair oil has no major competition except an Australian Product Tobasco. As a
new product so people are not able to digest it yet Dabur is getting 8 crores from
Vatika hair oil in which accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .
As the strategies of the companies keeps on changing, be it in Chyawanprash
industry, a company has to create perceptions and cover them into realities. It is an
expensive proposition requiring huge expenditure on advertising, sponsorships and
media. Thus, the ideal company will be the one which combines the high end
technology with consumer insight.
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As 16% of the excise duty is exempted on food products in this budget , Many food
companies including Dabur got benefited from it . On the analysis of survey it was
found that target Market of Chyawanprash want quality benefit rather then Price
benefit, so it is better to stress on quality rather than on decreasing price to increase
sales and profit. To increase market share Dabur should give slight price benefit on
Dabur brand so that customers of other Juice brand should switch from other brand to
Dabur brand .
As vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise
benefit from the Government so Dabur should pass slight Price benefit to the target
market so that target market should use the vatika hair oil and adopt it in making daily
food thereby increasing the market share of vatika hair oil.
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LIMITATION OF THE STUDY
It was quenching time in the shops that use to deal in and some retailers could
not give proper attention towards our queries.
Some retailer did not co-operative with us as they thought; it is just wastage of
time
There was no way to assess the reliability of the retailers. What ever they said
had to be assumed to be truth.
Category wise search for retailer was a terrific job in the market.
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RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within and outside India.
Improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of our
target consumers with safe, efficacious, natural solutions by synthesizing the deep
knowledge of ayurveda and herbs with modern science.
Provide consumers with innovative products within easy reach.
Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could
start a venture called Vatika hair care centre
which would provide total hair care solutions.
It could have hair care experts to solve hair
problems.Services could include dandruff
treatment, straightening of hair, treatment for
split ends,etc.
Position Dabur Chyawanprash as not more of
a medicine but as something which is necessary for health.
More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an
initiative to occupy shelf space.
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CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL
Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to study
the consumer perception for hair oil.
Any information provided by you will strictly be used for Academic Purpose.
1. Which brands of hair oil are you aware of?
Parachute
Keo Karpin
Nihar
Hair And Care
Dabur Vatika
2. Which brand of Hair Oil do you use?
Parachute
Keo Karpin
Nihar
Hair And Care
Dabur Vatika
3. Where would you rate your brand on a scale of 1 – 5 ( 5 being highest)?
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1
2
3
4
5
4. What are the primary reasons for which you use this particular brand?
Non sticky
Brand Loyalty
Fragrance
Price
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5. How did you get to hear about this brand?
TV
Internet
Word of Mouth
6. If your brand is not available you would..?
Purchase another brand
Wait for it to be available
Go for a substitute
Buy what is offered by the retailer
7. Which pack size do you prefer?
75 ml
150 ml
300 ml
8. On what parameters do you choose this pack size?
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Availability
Price
Family size
Storage
9. How often do you buy?
Once in 15 days
Once a month
Once in two months
10. Are you satisfied with your brand?
Yes
No
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REFERENCES
Books:
Kotler Philip, ”Marketing Management”, 11th edition, 2003, Pearson Education
Inc., P. 8-9.
Ramaswamy V S, ”Marketing Management”, 3rd edition, 2002, Macmillan India
Ltd., P. 5-10
Kothari C. R., “Research Methodology”, 2nd edition, 2002, New Age International
Pvt. Ltd., P. 11, 130.
Robbins Stephen P., “Organizational Behaviour”, 10th edition, 2004, Pearson
Education Inc., P. 425-432.
Company Documents.
Websites
www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com
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