CONSUMER BEHAVIOUR ON DABUR HEALTH CARE PRODUCTS

Presented By: Ankit Agarwal Anshul Mahajan Nitika Baid Priya Garg Priyanka Gupta P. Priyanka Sunil Garg

D-08 D-11 D-34 D-39 D-42 D-43 D-48

INTRODUCTION

MR. V. C. BURMAN - CHAIRMAN OF DIL MR SUNIL DUGGAL - CEO OF THE COMPANY. DABUR INDIA LIMITED IS INDIA'S LEADING FMCG COMPANY. DABUR IS CURRENTLY THE 4TH LARGEST INDIAN CONSUMER GOODS MANUFACTURING COMPANY (FMCG).

CONTD.

LEADING CONSUMER GOODS COMPANY IN INDIA WITH A TURNOVER OF RS. 2,233.72 CRORES (FY07). PRODUCTS OF DABUR ARE MARKETED IN MORE THAN 50 COUNTRIES WORLDWIDE.

CONTD.

DABUR'S HEALTH CARE RANGE BRINGS FOR THE CUSTOMER A WIDE SELECTION OF HERBAL PRODUCTS. DABUR CHYAWANPRASH AND HAJMOLA BOTH GIVES REVENUE OF RS.100 CRORES EACH.

CONTD.

DABUR CHYAWANPRASH IS THE LEADER WITH 65% SHARE. DABURS DIGESTIVES CATEGORY COMMANDS 90% OF THE HERBAL DIGESTIVES MARKET. HAJMOLA ITSELF IS A MARKET LEADER WITH 75% MARKET SHARE.

HISTORY
1884 1896 BIRTH OF DABUR SET UP A MANUFACTURING PLANT

EARLY 1900S AYURVEDIC MEDICINES 1919 ESTABLISHMENT OF RESEARCH LABORATORIES

1920
1936

EXPANDS FURTHER
DABUR INDIA PVT. LTD.

CONTD.
1972 1979
1986 1992

SHIFTS TO DELHI DABUR RESEARCH FOUNDATION

PUBLIC LIMITED COMPANY JOINT VENTURE WITH AGROLIMEN OF SPAIN

1994 1995

PUBLIC ISSUES JOINT VENTURES

CONTD.
1996 1997 3 SEPARATE DIVISIONS FOOD DIVISION

1998
2000 2003

PROFESSIONALS TO MANAGE THE COMPANY

TURNOVER OF RS. 1,000 CRORES DABUR DEMERGES PHARMA BUSINESS

CONTD.
2005 2005 DABUR ACQUIRES BALSARA DABUR ANNOUNCES BONUS AFTER 12 YEARS

2007
2007 2007

CELEBRATING 10 YEARS OF REAL

FORAY INTO ORGANISED RETAIL DABUR FOODS MERGED WITH DABUR INDIA

MANUFACTURING

PRODUCTION FACILITIES TO INCREASE INHOUSE PRODUCTION AND TO GET MAXIMUM BENEFITS. THE COMPANY BELIEVES IN COST AND QUALITY LEADERSHIP THROUGH TECHNOLOGY. THIS HAS ALLOWED FOR MUCH GREATER CONTROL ON PRODUCTION. IT IS BEST IN CLASS TQM AND TPM PRACTICES.

RESEARCH AND DEVELOPMENT

R&D ACTIVITIES ARE FOCUSED AROUND TWO BASIC DOMAINS:1. TO CONTINUOUSLY DEVELOP NEW PRODUCTS. 2. TO TEST AND GUARANTEE THEIR EFFICACY.

R&D ACTIVITIES INCLUDE RESEARCH ON:

1. 2. 3. 4. 5. 6. AYURVEDIC AND HERBAL PRODUCTS ORGANIC SUBSTANCES FOODS COSMETICS ORAL CARE PERSONAL CARE

DURING 2005-06, THE COMPANY DISPLAYED ITS EFFICIENCIES IN TERMS OF HIGH SPEED TO MARKET BY SUCCESSFULLY DEVELOPING ITS VATIKA HONEY & SAFFRON SOAP.

CONTD.

THE COMPANYS PRODUCTS REGULARLY GO THROUGH CLINICAL RESEARCH AND TOXICITY STUDIES WHICH ARE DONE IN COLLABORATION WITH DABUR DHANWANTRY HOSPITAL IN CHANDIGARH. THE COMPANY ALSO PROMOTES CONTRACT OR CORPORATE FARMING. SOME EXAMPLE OF CORPORATE FARMING ARE GHORBOTCH, BRAHMI, CHIRAITA AND PIPLI.

THE MAIN AREAS OF RESEARCH

TESTING AND TRIAL OF PRODUCTS. PRODUCT DEVELOPMENT FOR NEW HERBAL HEALTH AND PERSONAL CARE PRODUCTS. DEVELOPMENT OF NEW CHEMICAL ENTITIES AND FORMULATIONS. NEW INITIATIVES IN PHYTOPHARMACEUTICALS. DEVELOPING NEW PRODUCTS AND IMPROVEMENTS IN FOODS.

SUPPLY CHAIN

THE SUPPLY CHAIN FUNCTION AT DABUR COMPRISES OF PRODUCTION PLANNING, DISPATCH, WARE HOUSING AND TRANSPORTATION. FRONT END OF THE SUPPLY CHAIN ENDS AT THE CLEARING FORWARDING AGENT (CFA) OR THE STOCKIST. PROJECT GARUDA SET UP BY DABUR LAYS DOWN A SET OF MEASURABLE PARAMETERS TO TEST THE HEALTH OF THE SUPPLY CHAIN.

MARKET SEGMENTATION

IT IS THE ACT OF DIVIDING A MARKET INTO DISTINCT GROUPS OF BUYERS WHO REQUIRE SEPARATE PRODUCTS. ITS MARKET RESEARCH DIVISION HAS SEGMENTED CONSUMERS ON THE BASIS OF FOLLOWING: 1. GEOGRAPHIC VARIABLES 2. DEMOGRAPHIC VARIABLES 3. USER STATUS AND LIFESTYLE

MARKET TARGETTING

ACT OF DEVELOPING MEASURES OF SEGMENT ATTRACTIVENESS. INVOLVES EVALUATING VARIOUS MARKET SEGMENTS. IT TARGETS DIFFERENT SEGMENTS OF POPULATION OF ALL CATEGORIES OF AGE GROUPS. ALSO TARGETS THE POPULATION OUTSIDE INDIA.

MARKET POSITIONING

4TH LARGEST FMCG. DABUR IS NO. 4 IN MARKET CAPITAL AND NO. 5 IN SALES AND PROFIT. DABUR CHYAWANPRASH AND HAJMOLA ARE THE MARKET LEADER. THEY ARE THE HIGHEST CONTRIBUTOR OF THE DABUR REVENUE.

MARKETING STRATEGY ADOPTED

ADVERTISEMENT 1. TELEVISION 2. RADIO 3. INTERNET 4. NEWSPAPER/MAGAZINES 5. HOARDINGS

PEST ANALYSIS

POLITICAL

TAXATION POLICY ENVIRONMENTAL PROTECTION LAWS EMPLOYMENT LAWS

ECONOMICAL
INFLATION

EMPLOYMENT DISPOSABLE INCOME BUSINESS CYCLES ENERGY AVAILABILITY AND COST

SOCIAL
DEMOGRAPHICS

DISTRIBUTION OF INCOME SOCIAL MOBILITY LIFESTYLE CHANGES CONSUMERISM LEVELS OF EDUCATION

TECHNOLOGY
NEW

DISCOVERIES AND INNOVATIONS SPEED OF TECHNOLOGY TRANSFER RATES OF OBSOLESCENCE INTERNET INFORMATION TECHNOLOGY

CURRENT MARKET SCENARIO

COMPETITOR MARKET SHARE

SALES AND NET PROFIT

STRENGHTS
1. 2. 3. 4.

5.

STRATEGIC PARTNERSHIPS WORLD WIDE COVERAGE 100 YEARS OF EXPERIENCE MANUFACTURING FACILITIES RESEARCH PLANTS.

WEAKNESS

NO RETAIL OUTLET NO DOORSTEP DELIVERY.

OPPORTUNITY

OVERSEAS DEALERSHIP. MEDICAL BIOTECHNOLOGY. STRATEGIC ALLIANCES. EXPORT OF AURVEDIC PRODUCTS.

THREATS

KERELA-HUB OF AYURVEDA LOCAL COMPANIES YOGA CAMPS FOREIGN PRODUCTS.

CONSUMERS OF THE PRODUCT

Consumers of the Product

96% Yes No

4%

AGE GROUP DIVISION

Age group division
9%

11%

24% 30%

15 - 25 25 - 35 35 - 45 45 - 60 60 above

26%

DURATION OF PRODUCT USED

Duration of the Product used
Less than 1 month 1 - 6 months More than 6 months

11%

27%

62%

EXTENT OF USE OF PRODUCT

Dabur Health Care Products commonly used
PRODUCT

Sat Isabgol Dabur Hingoli Pudin Hara Anardana Hajmola Dabur Lal Tail Glucose D Dabur Chyawanprash 0 50 100 150 200

Very Much

To large extent

To some extent

Not much

Not at all

REASON FOR TRYING PRODUCT

Reasons for trying the Product

Just what I need

Advertisement

Quality

Availability

Price

Looks 0 20 40 60 80 100 120 140 160 180

RATING OF PRODUCT
Rating of the Product
Excellent Very Good Good Satisfactory Poor

Sat Isabgol Dabur Hingoli

PRODUCT

Pudin Hara Hajmola Anardana Dabur Lal Tail Glucose D

Dabur Chyawanprash 0 20 40 60 80 100 120 140 160

RESPONSE OF CONSUMERS
Response of consumers
100 90 80 70 60 50 40 30 20 10 0 Satisfaction Reuse Value as Compared to Recommend compared to other products to others price Various aspects Yes/Good Somewhat/Maybe No/Bad Read product details

REASON FOR TRYING OTHER PRODUCT

Reasons for trying other Products

Advertisement Friends and peer influence Quality Promotional offer by company Retail offer
0 20 40 60 80 100 120 140 160 180 200

Very much

To large extent

To some extent

Not much

Not at all

SOURCE OF INFORMATION
Source of information
200 180 160 140 120 100 80 60 40 20 0 Internet Advertisement Friends Others

WHAT MAKES IT TRUSTWORTHY

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.

DABUR.COM

INFORMATION IS CONVEYED CLEARLY AND IN A FRIENDLY MANNER TO VARIOUS CONSTITUENTS FROM INVESTORS TO THE MEDIA. THE SITE IS WELL-STRUCTURED WITH LOGICAL NAVIGATION AND AN AMAZING AMOUNT OF INFORMATION FROM STOCK QUOTES TO NEWS.

CONTD.

THIS SHOWS THE BRANDS CUSTOMERFOCUSED ATTITUDE. THERE IS AN ABUNDANCE OF INFORMATION FOR ITS INVESTORS AND PROSPECTIVE INFORMATION INCLUDING A DAILY UPDATE ON THE SHARE PRICE.

RECOMMENDATIONS

DIVERSIFY ITS OPERATIONS. CREATE A NICHE MARKET BY INTEGRATION OF AYURVEDIC KNOWLEDGE WITH MODERN SCIENCE. PROVIDE INNOVATIVE PRODUCTS TO ITS CUSTOMERS. STRIVE FOR GLOBAL POSITIONING AS AYURVEDIC LEADER. REALIZE ITS CORPORATE SOCIAL RESPONSIBILITY.

EXTERNAL ENVIRONMENT.

BITS PILANI.

THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN BITS AND DABUR PHARMA WAS SIGNED ON FRIDAY, DECEMBER 21, 2007 AT PILANI WITH THE OBJECTIVE OF FOSTERING COLLABORATION BETWEEN THE TWO INSTITUTIONS.

CONTD.

OBJECTIVE:-PROMOTE ACADEMIC AND RESEARCH INTERACTIONS FOR INDUSTRY-CENTRIC KNOWLEDGE AND SKILL UPGRADATION. DABUR PHARMA WOULD MAKE AVAILABLE THE NECESSARY INFRASTRUCTURAL FACILITIES FOR THE SMOOTH AND EFFECTIVE CONDUCT OF THE EDUCATIONAL PROGRAMMES.

THE H&B STORES.

HOME GROWN FMCG MAJOR DABUR INDIA TO INVEST RS 120 CRORE IN THE NEXT THREE YEARS ON ITS BEAUTY AND LIFESTYLE RETAIL INITIATIVE - H&B STORES. HAS ALREADY APPOINTED TWO EXPATRIATES AT SENIOR MANAGEMENT POSITIONS

INTERNATIONAL TIE-UPs..

DABUR INDIA'S HEALTH AND BEAUTY RETAIL SUBSIDIARY H&B STORES HAS TIED UP WITH LABS IN ITALY, THE UK AND THAILAND FOR DEVELOPING SOME OF ITS PRIVATE LABELS. TARGET:- RS. 1000 CRORE REVENUE.

CONTD

STARTING JANUARY NEXT YEAR, THE COMPANY PLANS TO SET UP 50 STORES BY THIRD QUARTER OF 2008-2009. ANNOUNCED THE LAUNCH OF SKINCARE CREAMS AND LOTIONS. NETWORK OF 1.5 MILLION RETAIL OUTLETS IN URBAN AND SEMI-URBAN AREAS.

HOT-GROWTH INDIAN FIRMS

HEXAWARE TECHNOLOGIES MATRIX LABORATORIES DABUR INDIA MPHASIS BFL WOCKHARDT

THANK YOU