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CONTENTS

1. ACKNOWLEDGEMENT
2. EXECUTIVE SUMMARY
3. OVERVIEW OF FMCG SECTOR IN INDIA
4. ABOUT DABUR
PRODUCT LINE
SWOT ANALYSIS OF DABUR
THE MARKETING MIX AND SELLING PROCESS
5. THE MARKETING MIX
6. OBJECTIVE OF THE STUDY
7. RESEARCH METHODOLOGY
8. DATA ANALYSIS
9. RECOMMENDATIONS
10.COMPETITOR ANALYSIS
11.CONCLUSIONS
12.BIBLIOGRAPHY
13.QUESTIONNAIRE

EXECUTIVE SUMMARY

This report aims at analyzing and reporting on the marketing strategies of Dabur
India Ltd (DIL) for the brands Dabur Chyawanprash. 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

Chyawanprash.

The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoffs 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.

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
characterised by a well-established distribution network,
intense

competition

unorganised

segments

between
and

the
low

organised
operational

and
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$ 11.6 billion in 2003 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) resides in the rural areas. The total number of
rural households are expected to rise from 135 million in 2001-02 to 153 million
in 2009-10. This presents the largest potential market in the world. The annual
size of the rural FMCG market was estimated at around US$ 10.5 billion in 200102. With growing incomes at both the rural and the urban level, the market
potential is expected to expand further.

Rural and urban potential


Rural-urban profile

Population 2001-02 (mn household)


Population 2009-10 (mn household)
% Distribution (2001-02)
Market (Towns/Villages)
Universe of Outlets (mn)

Urban

Rural

53
69
28
3,768
1

135
153
72
627,000
3.3

Source: Statistical Outline of India (2008-09), NCAER

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

ABOUT DABUR COMPANY

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 Indias 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 forshampoo or digestive tablets? The
answer is fairly simple, it stands for Indias 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). Theres
a great sense of responsibility for investors funds on view. This is a direct
extension of Daburs philosophy of taking care of its constituents and it adds to the
sense of trust for the brand overall.

Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story of
success is based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results of our
policies and initiatives speak for themselves.

Leading consumer goods company in India with a turnover of Rs.2233.72


Crore (FY07)

2 major strategic business units (SBU) - Consumer Care Division (CCD)


and Consumer Health Division (CHD)

3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur


International and 3 step down subsidiaries of Dabur International - Asian
Consumer Care in Bangladesh, African Consumer Care in Nigeria and
Dabur Egypt.

13 ultra-modern manufacturing units spread around the globe

Products marketed in over 50 countries

Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India

C.

1884 Birth of Dabur


1896 Setting up a manufacturing plant
Early
Ayurvedic medicines
1900s
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
Sahibabad factory / Dabur Research
1979
Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Rs.1,000 crores
2003 Dabur demerges Pharma Business
2005 Dabur aquires Balsara
2005 Dabur announces Bonus after 12 years
Dabur crosses $2 Bin market Cap, adopts
2006
US GAAP
2006 Approves FCCB/GDR/ADR up to $200

million
2007 Celebrating 10 years of Real
2007 Foray into organised retail
2007 Dabur Foods Merged With Dabur India

Founding Thoughts
"What is that life worth which cannot bring comfort to others"
The
doorstep
'Daktar'
The story of Dabur began with a small, but visionary endeavour by Dr. S.
K. Burman, a physician tucked away in Bengal. His mission was to provide
effective and affordable cure for ordinary people in far-flung villages. With
missionary zeal and fervour, Dr. Burman undertook the task of preparing natural
cures for the killer diseases of those days, like cholera, malaria and plague.
Soon the news of his medicines traveled, and he came to be known as the trusted
'Daktar' or Doctor who came up with effective cures. And that is how his venture
Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr.
Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines.

Reaching out to a wide mass of people who had no access to proper treatment. Dr.
S. K. Burman's commitment and ceaseless efforts resulted in the company growing
from a fledgling medicine manufacturer in a small Calcutta house, to a household
name that at once evokes trust and reliability.

The mission continues...

"Dedicated to the health and well being of every household"

This is our company. We accept personal responsibility, and accountability to


meet business needs.

We all are leaders in our area of responsibility, with a deep commitment to


deliver results. We are determined to be the best at doing what matters most.

People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products to


fulfill them better.

We work together on the principle of mutual trust & transparency in a


boundary-less organization. We are intellectually honest in advocating
proposals, including recognizing risks.

Continuous innovation in products & processes is the basis of our success.

We are committed to the achievement of business success with integrity.


We are honest with consumers, with business partners and with each other.

Milestones to success
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 popularising 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. As it grows
even further, Dabur will continue to mark up on major milestones along the way,
setting the road for others to follow.
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 specialisation.
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 upgradation 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

G.
Dabur has an illustrious Board of Directors who are committed to take the
company onto newer levels of human endeavour in the service of mankind. The
Board comprises of:

ViceChairman

Chairman
Dr. Anand

Mr. Amit

Burman
Burman
Whole Time Directors

Mr. P.D. Narang Mr. Sunil

Mr. Pradip Burman

Duggal
Non Whole Time Promoters, Directors

Mr. Mohit Burman

Independent Directors

His
Highness
Maharaja

Mr. P N

Mr. R C

Vijay

Bhargava

Dr. S. Narayan

Sunil Duggal took over as the Chief Executive Officer


of Dabur India Limited in June 2002, holding reins of
the organisation he joined in 1995.

Mr Duggal started his career as a management trainee in


Wimco Limited in 1981 after getting his Engineering
Degree (Electrical & Electronics) from BITS, Pilani, and
Sunil Duggal

Business Management from IIM, Calcutta. His stint at

Chief Executive Officer Wimco continued till 1994, with a break in between
Dabur India Limited

when he joined Bennett Coleman & Co. Ltd for a short


period. In 1994, he moved to Pepsi Foods as GM, Sales

Operation.
In 1995 he came into the Dabur family, as General Manager (Sales & Marketing),
of the Family Products Division with products like Dabur Amla, Lal Dant Manjan
and Vatika in his portfolio. This Division spearheaded the spectacular growth
recorded by Dabur in this period. Vatika was also launched during this period and
is now the Company's second biggest brand.

With his dynamic spirit and leadership abilities, he soon became Vice-President

and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was
appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he
became the CEO of the Company - a professional with valuable experience to steer
the company ahead in its growth plans.
Spanning a career of over 20 years, Sunil Duggal has travelled widely across India
and handled diverse portfolios that have helped him understand the dynamics of
FMCG businesses and market trends. He is well versed in the intricacies of India's
regional diversities and consumer needs.

Mr Duggal lives in Delhi with his wife and one child . Whenever he gets a break
from his official responsibilities, Mr. Duggal likes to spend time at home with his
family and an occasional round of golf.

H.

Good corporate governance and transparency in actions of the management is key


to a strong bond of trust with the Companys stakeholders. Dabur understands the
importance of good governance and has constantly avoided an arbitrary decisionmaking process. Our initiatives towards this end include:

Professionalisation of the board

Lean and active Board(reduced from 16 to 10 members)

Less number of promoters on the Board

More professionals and independent Directors for better management

Governed through Board committees for Audit, Remuneration, Shareholder


Grievances, Compensation and Nominations

Meets all Corporate Governance Code requirements of SEBI

When our Founder Dr. S. K. Burman first established Dabur, he had a vision that
saw beyond the profit motive. In his words, "What is that life worth which cannot
bring comfort to others." This ideal of a humane and equitable society led to
initiatives taken to give back some part of what Dabur has gained from the
community.
Our major initiatives in the Social sector include:

Establishment of the Sustainable Development Society, or Sundesh, in 1993


- a non-profit organisation to promote research and welfare activities in rural
areas;

Promoting health and hygiene amongst the underpriviledged through the


Chunni Lal Medical Trust; and

Organising the Plant for Life programme for schoolchildren - to create


environmental awareness amongst young minds.

Our commitment to Environment

Ancient wisdom of conservation


From times immemorial, Indian sages and men of wisdom have understood and
appreciated the value of nature and its conservation. Our ancestors recognised that
if we grabbed from nature beyond what was healthy, it would lead to all round
degradation, and even the extinction of humanity. That is why nature was
sanctified and worshipped in the form of gods and goddesses.
Dabur upholds the tradition
Today, we at Dabur also value nature's bounty. Without the fruits of nature, the
vision of Dabur would never have been fulfilled. And that is the reason for our
unfailing commitment to ecological conservation and regeneration. We would like
to follow the principles of our ancient texts, which say:
"Dehi me dadami te" - "you give me, and I give you".

Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all
our products are derived. Due to overexploitation of these resources and
unsustainable practices, these plants and herbs are fast reaching the point of

extinction. In view of this critical situation, Dabur has initiated some significant
programmes for ecological regeneration and protection of endangered plant
species.
Plants for Life
We have set up the "Plants for Life" project in the mountainous regions of the
Himalayas. Under the project, a high-tech greenhouse facility has been set up for
developing saplings of rare and endangered medicinal plants. Fully computercontrolled and monitored, this greenhouse maintains the highly critical
environmental parameters required for their survival. We are also developing
quality saplings of more than 20 herbs, 8 of them endangered, through micro
propagation.
In addition, satellite nurseries spread across mountain villages and contract
cultivation of medicinal herbs helps in maintaining the ecological balance. These
measures have also helped provide local cultivators the scientific knowledge for
harvesting herbs and a steady source of income. So that they are not forced to
exploit the environment to earn a livelihood.
Living a Green Heritage
These are significant steps that can contribute to a better world for coming
generations. To whom we would like to bequeath a world not bereft of nature. But

full of flowering and fruit bearing trees, animals, birds and humans living in good
health and complete harmony.

CORPORATE OFFICE

Kaushambi
Ghaziabad - 201010
Uttar Pradesh, India
Tel:
+91 (0120) 3982000 (30
Lines)
+91 (0120) 3001000 (30
Lines)

Kaushambi Corporate

Office

Registered Office :
8/3,
Asaf
Ali
New

Delhi

Road,

110

Tel: +91 (011) 23253488

002

K.

DABUR WORLD WIDE


Dabur's mission of popularising a natural lifestyle transcends national boundaries. Today
there is global awareness of alternative medicine, nature-based and holistic lifestyles and
an interest in herbal products. Dabur has been in the forefront of popularising this
alternative way of life, marketing its products in more than 50 countries all over the
world.

Our products World Wide


We have spread ourselves wide and deep to be in close touch with our overseas
consumers.

Offices and representatives in Europe, America and Africa ;

A special herbal health care and personal care range successfully selling in
markets of the Middle East, Far East and several European countries.

Inroads into European and American markets that have good potential due to
resurgence of the back-to-nature movement.

Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict


international quality benchmarks, to Europe, Latin America, Africa, and other
Asian countries.

Export of food and textile grade natural gums, extracted from traditional plant
sources.

Partnerships and Production

Strategic partnerships with leading multinational food and health care


companies to introduce innovations in products and services.

Manufacturing facilities spread across 3 overseas locations to optimise production

by utilising local resources and the most modern technology available.

M. 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

Hajmola Candy Fun2

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

Hair Care Shampoo

Anmol Silky Black Shampoo

Vatika Henna Conditioning Shampoo

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

Dabur Binaca Toothbrush

Skin Care

Gulabari
Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda
Ayurveda Vikas

N.

Dabur Amongst Top Three Most

Dabur Real Bags Gold In Reader's

Respected FMCG Companies

Digest Trusted Brand Awards


Dabur Figures In Top Great Place To
Work 2006 List

Dabur has been ranked

Hajmola has been

amongst India's Most

ranked 34th in Indias

Innovative Companies by a

100 Most Valuable

Business Today-Monitor

Brands list

Hajmola, one of the


strongest brands in
Dabur's portfolio, has
been listed among

Group survey

the Top 18 Iconic


Brands in India that
have stood the test of
time

Dabur Indias fruit juice

Three Dabur brands

Hajmola moves up

brand Ral awarded the

-- Hajmola, Dabur

11 spots to take the

Readers Digest Gold

Amla and Vatika --

34th position among

Trusted Brand Award 2008

have debuted in the

India's Top 100 Most

in the food & beverages

Economic Times

Valuable Brands of

category

Brand Equity's Most

2008, released by

Trusted Brands 2008

4Ps and ICMR

list. Besides, Dabur


Foods has climbed up
to take the 40th spot

Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most
valuable (Company) Brands by Brand Finance

newu was voted the Most

Dabur India CEO Mr. Dabur India Ltd was

Admired New Retail

Sunil Duggal was

ranked the Business

Launch of the year at

named Best

Leader in the FMCG

Images Retail Awards

Corporate Leader of

- Personal Care

2008 at the B&E

Category at the

Leadership and

NDTV Profit

Excellence Awards

Business Leadership
Award 2008

Dabur India Ltd CEO Mr.


Sunil Duggal has been
ranked among India's Most
'value'able CEOs by
Business World

Dabur India Ltd has been listed among


the Super 100 of India Inc, prepared by
Business India

SWOT ANALYSIS OF DABUR

STRENGTHS
Strong presence in well defined

WEAKNESS
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


competitive advantage

Low Penetration(Chyawanprash)
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
Untapped Market(Chyawanprash)

THREATS
Existing Competition( like

Market Development

Himani, baidyanath and Zandu

for Dabur Chyawanprash and

Export opportunities.
Innovation
Increasing income level of the
middle class
Creating additional consumption
pattern

Marico,Keo Karpin, HLL and


Bajaj for Vatika Hair Oil)
New Entrants
Threat from substitutes (like
Bryllcream for Vatika hair oil)

The Marketing Mix

Product

Place

Target
Market

Price
Pro

The firm attempts to generate a positive response in the target market by blending
these four marketing mix variables in an optimal manner.

A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of
some of the aspects of each of the 4Ps.
Summary of Marketing Mix Decisions
Product
Functionality

Price
List price

Place
Promotion
Channel members Advertising

Appearance

Discounts

Channel

Personal

motivation

selling

Market coverage

Public

Quality

Allowances

Packaging

Financing

Brand
Warranty
Service/Suppor
t

Leasing
options

Locations
Logistics
Service levels

relations
Message
Media
Budget

DABUR FOODS SELLING PROCESS


Dabur food process of selling starts from stockiest.
C&FA dose not have any process to play in the process of selling of dabur
foods products. They are just Clearing & Forwarding Agents they store the
manufacturing products and then supply it to stockiest.
Stockiest pay the money to dabur foods through demand draft.
Stockiest further sells the products to retailers.
Retailer finally sells the products to consumers.
MARKETING HOW DABUR FOODS IS USING MIX
Product
Appearance: Dabur tries to make its products appear very attractive.
Quality: Quality of the product is really unmatchable as it is tested number of
times and its products are processed using very advanced machinery and
technology.
Packaging: Dabur products packaging is done in such a way that its juices does
not get expired before 6 months inspite of perishable products.

Brand: Dabur itself is a very reputed and well known brand in the market and its
Real juice is also known all over India.
Warranty: Dabur as such does not gives any warranty but if there is any problem
in its products before expiry then they replace the product.
Service/Support: Dabur foods provide full support to its stockiest, retailers and
consumers, what so ever the problem is
Price
List price: Dabur decide its price according to its competitors and the price
structure is different for retailers and stockiest.
Discounts: There are different discounts for retailers, stockiest and consumer from
time to time.
Allowances: Special allowances are gicen to stockiest sales man if he acives his
targets.
Place
Channel members: Channel members or business partners of dabur are its
stockiest, retailers.

Channel motivation: Channel motivation for dabur is pull and push strategy.
Market coverage: Dabur Foods has a distribution network that covers 175 towns
and 75 thousand retail outlets making its product available to the consumers across
the country at ease.
Locations: Dabur foods try to cover or tries to place its products in each and every
shop and every location.

Promotion
Advertising: Dabur products are advertised through television, newspapers,
magazine etc.
Personal selling: Dabur hardly do any personal selling except in tent shows and
road shows. Same for less & more for same
Media: Media of promotion is TV, Radio, newspapers, magazine.
Budget: Budget is Decided by finance team for different strategic business unit.

Critique of selling
In theory, the purpose of selling is to help a customer realize his or her goals in an
economic fashion. However, in reality this is not always the case. Customers can
be influenced to purchase a product or service that initially was not of interest to
them. Some salespeople are trained in the art of selling customers things they don't
need.
Take for example the purchasing of a car: a consumer may have a set of cars in
mind (called an evoked set) that she feels match her needs, wants and budget. She
may seek the advice of a salesperson given that a salesperson can help her realize
the right car given those criteria. This can be a socially useful function; salespeople
have specialized knowledge of products that can help consumers make an informed
decision. However, a salesperson may also talk a consumer into purchasing a more
expensive or perhaps larger car then she needs or can afford. In this context, the
salesperson may have usefully helped the customer re-evaluate her needs, thereby
establishing a new set of appropriate choices among which included the newer or
large car. This again would be a helpful and useful service provided by the
salesperson. However, it is sometimes the case that customers purchase a product
or service that was not initially intended and remains an inappropriate purchase

after the fact. On the other hand, the consumer in this scenario can be held partially
responsible for the inappropriate purchase; indeed, "A fool and his money are soon
parted." (P.T. Barnum, English proverbs).

This dysfunctional behavior is encouraged by:


Incentives of salespeople to increase their total number of sales, especially
where retailers keep track of sales or offer commission-based salaries
Incentives from the manufactures of products or the companies of service
providers to salespeople to sell their products where other similar products
offered by competitors are offered
The incentive to sell a customer a product that is in need of being cleared
out, despite the fact that a customer may be better to wait for the new
product

B.

Channel Of Distributions

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A

Stockist B

Stockist C

Retailers

Retailers

Retailers

Retailers

Retailers Retailers

CONSUMERS

The above diagram it shows channel of distribution of dabur foods, here first the
products are manufactured and from Manufacturing plants the packed goods are
supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are
then further supplied to number of Stockiest or Distributors, from here goods
reaches to large number of Retailers and it is the duty of Stockiest to take orders
from retailers and then supply the goods to them, this work is generally done by
stockiest salesman through ready stock or by taking orders first and then placing
the order. From here the goods finally reaches to Customers. Customer purchases
the product from retailers.
This was the basic Channel of Distribution used by Dabur Foods, now I will throw
light on each channel of distribution of Dabur Foods.

Supply Chain Management:

Supply chain management starts before physical distribution: it involves procuring


the right inputs (raw materials, components and capital equipment), converting
them into finished products and dispatching them to the final destinations. The
supply chain perspective can help identify superior suppliers and distributors and
help them improve productivity, which ultimately brings down the companys
costs.
A broader view sees a company at the center of a value network that includes
its suppliers, its immediate customers and their end customers. The value network
includes valued relations with others such as university researchers, government
approval agencies and so on.

MANUFACTURING PLANT:
Dabur Foods has Number of products in its product line but its main area of
interest or the product on which they concentrate the most is Real Juice & Coolers.

Dabur has its manufacturing plant at Nepal and at Jaipur where juice is
manufactured and tested.

PROCUREMENT & TRANSPORT:

Getting the raw material and packaging material requirement from the
production unit in charge

Constant updates on the procurement of materials and transport details

Production details and ingredient content information from the different


personnel and coordinating this activity
PACKAGING:

Approval and coordination of


production unit

the supply of packaging material to the

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing


and forwarding agents.
Clearing and Forwarding Agents is a third party and Dabur gives contract to
them, so company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.
They charge dabur for stocking the good and even dabur dont mind doing
so as it is a measure of cost cutting as well as there is no need for gowdowns
and maintenance.
For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in
Mohan Nagar, here all goods which dabur foods hare kept here.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to
them as per their order.
Stockiest has some sales men working under him, they are known as
stockiest sales man. Their work is to place the products in the market and
take order from retailers and then supply goods to them.
Sales man either take ready stock with them or they first take orders and
then supply goods later on.
There is a beat which is a schedule route of sales man, means sales man has
to daily cover the route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners,
and seeing that goods are properly placed in the retail outlets is also the duty
of stockiest sales man.
Companies sales officer keeps a check on the stockiest and monthly report
is also prepared which is further analyzed by ASM & ZSM.
In Noida Dabur has 1 stockist, and in Ghaziabad 1

RETAILERS
Retailers are backbone of the company as they are the one who can take the
product on new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the
brand special displays (using merchandising tools) to get affective brand
presence, and arranging it in more noticeable manner.
Classification of outlets in different type of markets is different according to
their sales volume.
TYPES OF RETAILS OUTLETS

Class
A
B
C

Average Monthly Business


Above 10,000
5,000-10,000
Upto 5,000

Margin of retailers is always higher than stockiest.


Retailers are the one who have direct contact with the customers.

Dabur Foods has a distribution network that covers 175 towns and 75

thousand retail outlets making its product available to the consumers across the
country at ease.
E.
TYPES OF RETAIL MARKET

The retail market can be classified on the basis of magnitude of retail.

SCATTERED MARKET
Lesser no. of outlets, and
Extensive outlets

BLOCK MARKET
Large no. of retail outlets in chunk

SUPER MARKET
Through their superior information ,logistical systems and buying power deliver
good service and immense volumes of products at attractive prices.

CHAIN OUTLETS
Having more than one key outlet all across with a single control unit and central
purchasing strategy

THE FUTURE FOR DABUR

Tapping the world markets:


Dabur India, under its new brand architecture, has five power brands under its
portfolio with distinct offerings Vatika, a herbal beauty brand with products
like Vatika Shampoo, Hair oil and Fairness Face pack; Dabur, the natural
healthcare brand with products like Chyawanprash and Pudin Hara; Hajmola, the
tasty digestive brand with Hajmola candy, Fun2 and Anardana Churna; Real which
offers fruit beverages and has products like Real Fruit juices, Lemoneez; and the
recently launched Anmol which is a cross category value-for-money brand. Dabur
has decided to take two of its five power brands Dabur and Vatika global
through

its

Dubai-based

arm

Dabur

India

And the Big B and Rani Mukherjee will help the company get a toehold in the
worlds herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore
FMCG major has also decided to give a new impetus to its international food
supplement brand, Nature4u, by now launching it in the burgeoning Gulf
market. It is currently being sold only in UK and EU. We have drawn an
aggressive plan to launch Dabur and Vatika globally, starting from the Middle
East , GCC and SAARC countries. We expect our market share to double within

two years in the 10 countries we will focus on initially, said Mr Arvind Kumar,
CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are
UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and
Nigeria.
To develop Dabur International as its major overseas hub to service all markets
except Russia , the company is setting up a new plant which is expected to be
ready in a year. Dabur International already has a plant in Jabel Ali to both package
products sourced from India and produce some local variants. Dabur India has
been selling its product in Dubai and GCC countries since 1992 through a
franchise Redrock Limited. The company had acquired this franchise last year
at investments of about USD five million.
Growing market share: While there is no doubt that Dabur now has a presence in
several product categories ranging from hair care to oral care to home care to
health supplements to juices and even soaps, it is also true that in some of these
segments its market share is very low and trails the market leader by a huge
margin. For instance, Dabur only has a 6% market share in shampoos against
HLLs 53%, and a 12% share in the oral care segment against Colgates 46%.
Company officials believe that low market share means that there are substantial
growth opportunities even if these categories do not grow. Our market shares are

low in some segments. This gives us opportunity to penetrate these categories,


says Mr Narang.
Drivers of growth:
For the future, Dabur has identified foods, home care products, skin care and
OTC health care products as its growth engines. The company plans to ramp up
its home care business and in the food category it is looking at expanding its
Hommade range of cooking pastes and purees. In the skin care segment, the
company launched the Dabur Anmol cold cream last year and its Vatika honey and
saffron

soap

is

currently

under

test

launch.

Expansion in south India:


Dabur is looking at expanding its business in south India, which currently accounts
for around 15% of its total sales.

Objectives of the Study :-

To understand the demand pattern of Dabur Chyawanprash products in the


rural market.
To know the amount of household income spent on the consumption of
FMCG products of Dabur.
To understand the image of the products in the eyes of the consumers.
To analysis market petition strategy of Dabur for rural market.

Research Methodology

Data collection

Sample unit:
1) working people (including men & women) & housewife
2) college students
3) school students
4) senior citizens
5) Retailer

Sample size:
1.

working people & housewife: 30%

2.

college students: 25%

3.

school students: 20%

4.

senior citizens: 10%

5.

Retailer

:10%

Sampling techniques:
Judgmental sampling techniques used.

Sampling region:
Sampling region will be HAPUR of Uttar Pradesh.

Data collection method:

1. Primary data: It will be collected with the help of a self administered


questionnaire.

2. Secondary data: it will be collected with the help of books, research


papers, magazines, news papers, journals, internet, etc.

Research instruments:

Questionnaire design:
As the questionnaire is self administrated one, the survey will be simple and user
friendly. Words used in questionnaire will be readily understandable to all
respondent. Also technical jargons will be avoided to ensure that there is no
confusion for respondents.

Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS
Software.

DATA ANALYSIS
DABUR CHYAWANPRASH

1. AWARNESS LEVEL

2. PREFERRED BRAND

3. SATISFACTION LEVEL

4. REASONS FOR SELECTING A PARTICULAR BRAND

5. HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

6. UNAVAILABILITY OF PREFERRED BRAND

7. PREFERRED PACK SIZE

8. REASON TO SELECT PREFERRED PACK SIZE

9. FREQUENCY OF PURCHARE

11.

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

2.Out of these which are the most preferred?

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

4.What is the profile of your typical consumer?

5.What schemes are you offered by the companies?

6.What schemes does a consumer prefer most?

7. According to you, does in-store advertising have an affect on the


consumers preference?

8.Do a change in price affect their preferences?

RECOMMENDATIONS

Focus on growing core brands across categories.

Reaching out to new geographies, within Hapur area.

Improve operational efficiencies by leveraging technology.

Be the preferred company to meet the health and personal grooming needs of
our target consumers with safe, efficacious, natural solutions by synthesizing
the deep knowledge of ayurveda and herbs with modern science.

Provide consumers with innovative products within easy reach.

Vatika hair care centre: On the lines of Maricos Kaya Skin Clinic, Dabur
could start a venture called Vatika hair care centre which would provide total
hair care solutions. It could have hair care experts to solve hair
problems.Services could include dandruff treatment, straightening of hair,
treatment for split ends,etc.

Position Dabur Chyawanprash as not more of a medicine but as something


which is necessary for health.

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


initiative to occupy shelf space.
COMPETITOR ANALYSIS

The key competitors 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:

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 Himani 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%.

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 todays 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

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 antioxidant 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 Daburs experience in Ayurveda ensures


selection, processing and quality control of right herbs along with scientific and
clinical studies makes DCP a trustworthy offering for consumers. Consumers

view DCP as a product by a trusted brand and therefore do not need to think twice
before making a purchasing decision.

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

Product

Price

Promotion

Product

List Price

Variety

Discount

Quality

Financing

Design

Schemes

Features

Credit Terms

Brand
Names
Services

Advertising

Place
&

Promotion
Public Relations
Sponsorships
Internet
Marketing

Channels
Location
Inventory

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,

other herbs and herbal extracts.

Dashmul,

Ghrit

and

several

Special
Vishwast

fortified

with

additional

health

beneficial

herbs

like

Keshar, Akarkara etc.

Packaging:

n
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

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.195.00

500gms

Rs.110.00

250gms

Rs.

62.00

PRICE/QUALITY MATRIX
Price
Quality

High

Middle

Low

Luxury

Ideal For Penetration

Premiere

High

Segment

DABUR

Offering

CHYAWANPRASH
Overpriced

Average

Middle

Bargain
Make The

Low

Real

Sale

Unhappy Customers

and

Cheap
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.

Daburs 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 are concentrated
towards advertising and it has neglible sales promotional activities.
Advertising
Nothing can happen without establishing the brands 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 consumers 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
Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian
cricket team.

CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing.
Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul,
Ghrit and several
other herbs and herbal extracts. the market. The consumers patriotic love for tea
and coffee is 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.

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 .

BIBLIOGRAPHY

Books:

Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller

Websites:

www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com

CONSUMER QUESTIONAIRE - DABUR CHYAWANPRASH

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for Chyawanprash.

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
5
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
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

11) Please [] the following attributes based on importance, which purchasing a


FMCG products.

Attributes
Product Specific
Lowest price
Offers running

Not so important Important

Must have

Price discount
Retail brand
Product quality

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
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

9.

In how many days you receive the product after placing the order?
a. One week
b. Two weeks
c. Monthly