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Niels Brock Copenhagen Business College

English Language Skills for Business


HUMS 3006

Group Report

"Analysis of Dabour Nepal ltd marketing of food and beverage products in Nepal"

DMU Students' ID

P14010x08

P1401x118

P1401010x

P14010x10

Tutor: Hurlum Heisah Total Words: 2329

Submission Date: 14th April 2015

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Abstract

The business plan of this study is to determine the marketing analysis of Dabur Nepal

Private Limited (DNPL) in year 2015. This Company deals with the meaning of health

care, food, and beverage as well as herbal medicine product. Basically, this business

plan is about marketing strategy and marketing mixes like product, price, place and

Promotion. Our business plan especially focuses on food and beverage of DNPL in

Nepalese market. Promotional activities are based on the advertisement. Products price

determine on the basis of competitors and cost of production. This business proposal

gives the general knowledge and brief information about the history of Dabur Nepal

Private Limited (DNPL).

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Contents

Title Page No.

1. Brief Introduction of Dabur Nepal Pvt. Ltd. 4

2. Limitation of Organization 4

3. Objective and Scope 5

4. Marketing Strategy 6

5. Product Lifecycle 7

Figure 1 7

Introduction Stage: 7

Growth Stage: 7

Maturity Stage; 8

Decline stage 8

6. Market segmentation 8

Geographic segmentation 9

Demographic segmentation 9

Psychographic segmentation 9

Behavioral segmentation 10

7. Marketing mix (4p's of Dabur Nepal Pvt. Ltd) 10

8. Competition 12

9. Distribution Channel 12

Figure 2 13

10. Social responsibility 13

11. Conclusion 13

12. Abbreviation 15

13. References 16

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1.Brief Introduction of Dabur Nepal Pvt. Ltd.

Dabur Nepal Pvt. Ltd was established in 1989 as join Venture Company with Dabur India

Limited. For the production of ayurvedic- base, Personal care, food production, health

care and started manufacturing Dabur products in 1992.

The Companys factory registered office in Rampur Tokani Bara District. Its Corporate

office is in TNT building, Tinkune Kathmandu, Nepal.

This company is one of the leading manufacturing company in food and beverage

operating on a private sector of Nepal. Its produce various type of product that are

related to health and personal Care. The main product of Dabur Nepal Pvt. Ltd. (Profile

DNPL, 2011).

1. Real fruit juice

2. Glucose product

3. Real Juice

4. Honey

5. DaburChyawanprash

6. Hojmola candy and etc

2. Limitation of Organization

The industrialization process in Nepal is being developed very slowly. In spite of various

attractive policies of the government in respect of industrialization. The New investment

made on the industrial sector is not satisfactory. The financial performance of

established manufacturing is also not good. Most of the industries are operating in

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losses and such condition of the established industries discourage the new investment

both manufacturing and non- manufacturing sector.

There are various and different reasons for the poor performance of manufacturing

industries. Such reasons should be corrective measures for the improvement of their

performance.

The Dabur Nepal Private Ltd. (DNPL) is the biggest industries in the country. Being a

large scale industry large amount is investment from various sectors; therefore the

successful operation of the industry is very much important. The success of the industry

will not only attract the foreign investment in the country but also increase the private

sector within the country. But the financial performance of the industry is not satisfactory

and it is being heavy losses every year since the time of its operation. How the business

is being operated largely depends on how the business operation is planned. Poor

performance is the outcome of poor planning, controlling and decision-making. The key

motive of every business enterprise is to make maximize profit. Profit does not happen

by chance it is to be managed.

3. Objective and Scope

The general objective of this business plan is to evaluate the marketing Strategy of

multiple products of manufacturing company in the particular field is food and beverage

and healthcare. The specific objective of this business plan are as follows:

To understand the demand for Dabur products (food and beverage) in the whole

market.

Defined to be analyzed buyers and competition.

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Customers willing to purchase a particulars product and that product fulfill their needs

and want.

To increase the amount of household income by produce raw materials.

To make the effectiveness of marketing strategy of Dabur Nepal Pvt. Ltd.

4. Marketing Strategy

Dabur Nepal Pvt. Ltd. (DNPL) will establish for industry business targeting new

geographies regions, within and outside Nepal, by using the latest technology to improve

operational efficiencies.

Company Preferred to meet the health and personal needs to the target customers.

They feel safe, efficacious and natural solution by manufacturing our knowledge of

health care foods and to become the ayurvedic leader in the ayurvedic medical field with

the help of herbs modern science.

Extensive promotional activity, which helps to differentiate its business position from

the competitors and it, will ensure that customers perceive that they are receiving quality

products in reasonable price. Customer loyalty is encouraged with development and

promotion of health and personal needs of target consumers.

Innovative product goods within the easy search to provide our consumers.

DNPL has a commitment to environmental protection: the company is responsible for

citizens and national environment.

DNPL be a well-managed employer and company provide developing, training and

attracting quality personally.

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The company has provided reasonable return to our shareholders and peer groups.

(Strategic Intent)

5. Product Lifecycle

There are four stages of product life cycle. In the particular business sector, every

company has faced the product life cycle (introduction, growth, maturity, and decline

Stages). That are to manage the life cycle in the particular product.

Figure 1

Introduction Stage:

In this stage, the company has launched new product in the market. The product is going to

introduction phrase. The Product is new, market is new and the consumer is going to test the

new product. That means sales are low, although the product will be increasing. The company

will spend more and more budget in research and development. In the contest of DNPL,

Laldantmanjan (product of DNPL) is in introduction phrase.

Growth Stage:

In this stage, because company start to get the benefit, from the economic scale of production.

Getting per unit cost of production low. So that profit margin is high. If maintain the level of profit

margin is constrained, company to invest a lot of money in promotional activities. Dabur fruit

juice and Dabur glucose are the growth stage product of DNPL.

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Maturity Stage:

During this period, the product is established and market share built up in the potential market

area. In this stage, company maintain the market share of the product it needs more budget to

undertake market share from the competitors. And they need to product improvements and

modifications of the production process which give the competitive advantage. Dabur honey is

the maturity stage product.

Decline stage

The customer who will buy the product they have already purchased. Means product of market

share decline. In the market, a lot of substitute product will be available. Consumer are

searching for a different type of product and profit is decline too. In that Condition, Company will

make less expensive production method. Daburhosmola Candy is decline stage product of

DNPL (Rodrigue, J Dr., 2015).

6. Market segmentation

Market segmentation is the process of dividing the broad market into small subgroup on the

basis of age, gender, demography and so on. Market segmentation focuses on the common

need and wants of people. Market segmentation is the major issues of marketing strategy, but it

directly depends upon human perception, feelings about goods. Now we are in 21st century, it is

the age of globalization. A Market becomes complicated and every organization faces

competition to establish in the market. Dabur Nepal Pvt Ltd also try to segment their market very

well. There are many competitors of Dabur Nepal in Nepal like Chaudhary Group, Khetan group

who produce the same product.Dabur Nepal divided their market into different subtitles they are

basically focused on the large amount of people who lives in Tarai belt of Nepal. Dabur Nepal

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Pvt Ltd also tries to separate their market into the different aspect.Generally there are four types

of market segmentation (marketingflexibility.com)

Geographic segmentation

Geographic segmentation is one of the types of market segmentation which separates the

market in different geographical boundaries. In Nepal, there are different zones and district as

well as Himalaya, Mountain and Tarai areas. Dabur Nepal divided their market area into

different zones and District in Nepal. Himalaya zone is very cold and they are demand

Chabanparas so Dabur group focus on Himalaya area for the different product which helps

people save from cold. Moreover, Tarai belt is very hot areas of Nepal people demand the large

amount of cold drinks and juice. Dabur Nepal Pvt Ltd separated Tarai area for real juice

(Dabur.com/nepal)

Demographic segmentation

Market divided into different sub-target group on the basis of the population including age,

gender, sex and income. Dabur Nepal Ltd produce different product giving Emphasis on age,

sex, gender and various income level of people.AS examples they focus on Horlicks and

Chawanparash for old and child people as well as give priority to Adult make real juice.They

normally segment the market on the basis of demography (Dabur.com/nepal).

Psychographic segmentation

Psychographic segmentation is another type of market segment on the basis of people lifestyle,

belief, and norms. Dabur Nepal Pvt Ltd practically involve this segmentation of the market.

People prefer these goods which give different looks and attitude and they only accept those

goods which improve their lifestyle so DNPL give high priority to this goods and segment the

market very well (Dabur.com/nepal)

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Behavioral segmentation

This market segmentation separates the market by the consumers behavior which means that

market divided on the basis of buying and shopping behavior of customers.DNPL provided the

different option like online shopping, direct shopping from the store. Costumers of DNPL

product of food and beverage prefer buying these goods directly from the whole seller so DNPL

focus on whole selling activities(Dabur.com/nepal)

7.Marketing mix (4ps of Dabur Nepal Pvt. Ltd)

The marketing mix is the most important part of marketing. It is the combination of product,

place, price and promotion.Marketing mix is like the plan and makes a proper ways how

organization sell their product.Marketing mix is the best terms of marketing. The company went

to lunch the product and selling this in the high range. First of all, the company produce one

product and make a plan where to sell, how much cost will be better for this product and what is

the best option for promotion (Marketingteacher.com).

DNPL also create their own marketing mix and try to generate their own price, proper area for

sell, the feature of the goods and adverting media for promotion. Food and beverage product of

DNPL are real juice, Horlicks, Chabenparash, Dabur honey and glucose biscuits has their own

price, typical product, the market area and having different advertising. Furthermore, the

marketing mix of DNBL describe as follow

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Product:

Dabur Nepal Pvt Ltd want to grab the opportunities of the huge markets and produce the

different product.They can produce hajmola in the pouch and small pack for easy to bring

everywhere.

Price:

DNPL has their own price and they are very careful about the price. People of Nepal is not

prefer the high amount for a single product so Dabur Nepal establish the reasonable price for

the product. There are many competitors in the market of food and beverage so that price is

becoming the serious matter for the company.

Place:

The Place is the important component of the marketing mix which makes sure where to sell the

product. DNBL create the strategy for the place. Nepal is the landlocked country so there are

three major areas in Nepal Himalaya range, Mountainous area, and Tarai zone.DNPL different

area

Promotion:

An effective advertisement makes easy to sell the product .promotion is also the most important

factors of marketing.DNPL use television, newspaper and hoarding board .when people watch

the advertize then they are ready to buy the product. DNPL use the actors to make their

advertiser effective. People ready to buy the product if they watch the advertize it hit in their

mind directly.

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8. Market Competition:

Dabur Nepal Company is one of the leading company of multi-product in Nepal. It produces

food beverage, herbal and health care product. Competition is the important factor while the

company decided product pricing. If the company does not aspect any competition from the

outside similar company, it will take enjoy freedom in determine the price. When there are

similar company and firm in the market, there is no freedom in fixing selling price. Similarly,

Dabur Nepal Private Limited has many Competitors. They are

1. Unilever Limited

2. Chaudhary Group

3. Pepsi Company

4. Coca-Cola Company etc.

Dabur Nepal Ltd face various challenges from other competitors in the overall market.Especially

Dabur Nepal has more complicated threats from Chaudhary group. Chaudhary group also

produce juice, chips and other food product in Nepal. DNPL make their own pricing strategy and

try to give the product in cheaper price to costumers. Similarly, Unilever and Coca-Cola is

another competitor. DNPL get the threats and challenges from competitors and also try to avoid

threats from competitors. SWAT analysis is the main techniques to solve the competition

problems.

9. Distribution Channel:

Dabur product are manufactured by manufacturing company and the packed goods are

forwarding to the sales agent then after goods are supplied to the number of stockiest, or

wholesaler. From wholesalers or distributors finally goods supply to the number of retailers. A

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buyer who is the ultimate user of the product. They buy from retailers. This distribution channel

is two middle man channel distribution.Dabur India limited also used this type of channel of

distribution.DaburNepal Ltd mainly uses wholesaling practices in Nepal they have their own

many more wholesaler in all over the country. The company produce their product at the factory

and send it to customers by using a different channel. Costumers get their product from different

retailers.

Manufactured ------Agent ------------Stockiest------------Retailer----------buyer

(Source: Dabur India Limited.)

Figure 2

10. Social Responsibility:

Social responsibility is also the marketing strategy to generate more good pictures on the

costumer.Give free charity for the education and invest in different development programmed.

People always think about the social responsibility of the organization and want to buy that

product who are the focus on responsibility. Furthermore, DNPL care about the environment

and they are trying to recycling of the waste product. DNPL also focus on employment and try to

reduce unemployment problems of Nepal.

11. Conclusion:

Dabur Nepal Pvt. Ltd. (DNPL) is one of the leading join venture company of Nepal. This project

report aims to analyze overall reporting of marketing strategies and marketing mixed in the

sector of food and beverage.This business proposal gives the general knowledge and brief

information about the history of Dabur Nepal Private Limited (DNPL).The business plan of this

study is to determine the marketing analysis of Dabur Nepal Private Limited (DNPL) in year

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2015. This Company deals with the meaning of health care, food, and beverage as well as

herbal medicine product. Basically, this business plan is about marketing strategy and

marketing mixes like product, price, place and Promotion. Our business plan especially focuses

on food and beverage of DNPL in Nepalese market. Promotional activities are based on the

advertisement. Products price determine on the basis of competitors and cost of production.

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12. Abbreviation

DNPL- Dabur Nepal Private Limited

SWOT- Strength, weakness, Opportunities and Threats

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References

1. Dabour Nepal (P) Ltd. profile, 2011

2. Marketing flexibility. 4 types of market segmentation. Available:


http://marketingflexibility.com/4-types-of-market-segmentation/. Last accessed 2015

3.Rodrigue, J Dr. (2015). THE GEOGRAPHY OF TRANSPORT SYSTEMS Available:


https://people.hofstra.edu/geotrans/eng/ch5en/conc5en/productlifecycle.html. Last
accessed 09th April 2015.

4. Strategic Intent. Available: http://www.dabur.com/About%20Dabur-Strategic%20Intent.


Last accessed 13th Apr 2015.

5. Tim Friesner. (2014). Marketing Mix. Available:


http://www.marketingteacher.com/marketing-mix/. Last accessed APR 2015.

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