Research report on DABUR HAJMOLA
Submitted by Shazi N Shafiq Enrollment no A3010908157
AMITY GLOBAL BUSINESS SCHOOL, NOIDA
AMITY UNIVERSITY- UTTAR PRADESH
TABLE OF CONTENTS
1. INTRODUCTION 2. ENTRY IN THE MARKET 3. PRODUCT LINE 4. DABUR HAJMOLA
5. PUBLICITY & ADVERTISING - Hajmola Branded Dhabas
6. RETAIL SURVEY ANALYSIS 7. PRODUCT/MARKET PROFITABILITY 8. COMPETTIVE ADVANTAGE 9. BRAND LOYALTY 10. PRESENT PERFORMANCE 11. STRATEGIES FOR INCREASING MARKET SIZE 12. CONCLUSION 13. REFERENCES
dynamic leadership and commitment to our partners and stakeholders. Consumer Health Division (CHD) and International Business Division (IBD)
Wide and deep market penetration with 50 C&F agents. Leading consumer goods company in India with a turnover of Rs. corporate and process hygiene.11 Crore (FY09)
3 major strategic business units (SBU) – Consumer Care Division (CCD). more than 5000 distributors and over 2.8 million retail outlets all over India
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. The story of success is based on dedication to nature. The results of there policies and initiatives speak for them. 2834.
today one of the largest FMCG companies in India.
The business based on the vision of founder Dr S K Burman .Fruit juices & beverages Fem . With growing demand.Premium hair care Hajmola .
• • • • •
Dabur . Dabur shifted its operations to Delhi in 1972 and a few years later set up full-fledged research operations in healthcare."What is life that cannot bring comfort to others". Homecare and Foods. started as a small pharmacy selling healthcare products.With a legacy of 120 years built on attributes of quality and trust. was started by the Burman family in 1884 in Kolkata (West Bengal). Dabur has proven its expertise in the fields of health care.Tasty digestives Réal .Ayurvedic healthcare products Vatika . Two decades later the company entered the specialized area of Ayurvedic medicines and branded its products.Fairness bleaches & skin care products
. personal care.ENTRY IN THE MARKET
one of the strongest brands in Dabur’s portfolio. Another reason for Hajmola’s success is that it has kept pace with the evolution of the consumer. Rajesh. a new format like candy (has) brought new consumers. This helped in giving the brand a certain status. it is sustainable. a brand consulting firm. But the introduction of Hajmola in pouches gave consumers an option of buying and consuming it on the go. Over the past few years. “Apart from a new price point. Another evolution strategy was the use of celebrities such as cricketer Kapil Dev in the 1980s and actor Amitabh Bachchan in recent times. the brand has to moved away from it’s ayurvedic positioning to that of a mild digestive product with a younger and naughtier image.Chatpata swad. jhatpat aaram. Hence. Hajmola was available only in glass bottles and was more of an in-house consumption product. Dabur. was launched in 1978 with a core proposition of “fun. into the brand fold. (tastes good. “Earlier. Status: Has more than 60% market share in the digestive products markets worth Rs150 crores
Brand story: Hajmola.” Rajesh adds.DABUR HAJMOLA
Born: 1978 History: Owned by home-grown consumer products company Dabur India Ltd. executive vice-president. “The (brand’s) fundamental premise is a ‘universal’ need. Alia Creative Consultants Pvt.
. the company claims that around 20 a million Hajmola tablets are consumed every day in India. The brand has extended itself to candy and other forms of digestives as well. taste and i digestion”. director. mostly kids.K.” says K. A lack of serious competition has given the brand a definite edge over the few regional and unorganized players that compete with it.” says Sanjeev Malhotra. Its tag line for years . With a category penetration of close to 80% (which means eight out of every 10 Indians have used digestive tablets). provides instant relief) conveys the product’s benefits simply and succinctly.
such as campaigns on HIV/AIDS.
The latest to join the bandwagon is Dabur.Eases condition of flatulence .Increases appetite .
BRAND PUBLICITY AND ADVERTISING
Hajmola branded dhabas
Using dhabas (roadside restaurants) as an advertising medium is nothing new for Indian brands. Dhabas have even been favourite spots for spreading social awareness.5 crore Hajmola tablets are consumed every day in India.
.Helps in proper digestion and relieves indigestion. umbrellas. chairs and wall paintings. using Hajmola banners.Controls Dyspepsia . Companies such as PepsiCo or Coca-Cola have used them to increase brand visibility by installing branded umbrellas and other props.This Ayurvedic digestive can be gauged by the fact that almost 2. tables. The customers are
. which is redesigning 150 dhabas on routes originating from Delhi.
Divya Pharmacy and Anil Foods are other competitors. Market Share: This helped in finding the market share of Dabur Hajmola with respect to other players and the market share of various variants of Dabur Hajmola. Its being moved from JLT (Just Like That) category to Post-meal consumption category which is right now crowded with unhygienic and unbranded saufs/mishris.boiled candies) industry. The chart clearly shows that Dabur is the market leader with 93% share in Digestive and Confectionary (hard. this is not just another exercise to gain visibility.G. Hajmola is being re-positioned these days. While this activity takes care of the unorganized sector. Dabur had recently tied up with Nirula’s (Delhi’s favourite pizza corner) and did free sampling. Pharma.
M a rk e t S h a re o f D a b u r H a jm o la 0% 1% 5% 1%
D abur ITC S . for Dabur Hajmola.being served free Hajmola sachets along with their meals. Next on the cards is to introduce Hajmola as a post meal option in 5 star hotels.S .
Retail Survey Analysis
survey analysis gave us the following results in various segments.G .
.S. The closest competitor of Dabur is ITC and S. P harm a D ivy a P harm ac y A nil F oods
Market Share of Dabur Hajmola (Competition-wise)
This pie chart shows the competition that Dabur is facing from the other major players existing in the industry. However.
Hajmola tablets have the maximum share follwed by Hajmola Candy. Thus maximum revenue of Dabur Hajmola in Gurgaon comes from Hajmola tablets and Candy with 47 percent and 46 percent of total revenue respectively.Distribution of market share of Dabur Hajmola among its variants
Diatribution of Market Share of Dabur Hajmola among its varients
Hajmola Candy Hajmola Fun 2 Candy Hajmola Anardana
This chart shows the distribution of market share of Dabur Hajmola among its variants.
.Hajmola Fun2Candy and Hajmola Anardana contribute about 3 percent and 4 percent respectively of total revenue.
Market Share of Dabur Hajmola (Area-wise)
D is trib u tio n o f D a b u r H a jm o la (A re a -w is e ) above chart shows the area wise distribution of Dabur Hajmola which we got from the survey. ( S ec tor 14 This is because maximum S e c t o r 4 -5 number of shops and stores are S o u t h C it y located in Palam Vihar. Maximum contribution is made 8% 16% 2% 2% by Palam Vihar i. The S o u t h Z o n e chart clearly shows that maximum N o rth Zo n e revenue comes from North zone
W e s t Zo n e
Market Share of Dabur Hajmola (Zone-wise) D is tr ib u tio n o f D a b u r H a jm o la (Z o n e -w is e ) We have also Segmented total Gurgaon in four zones and have tried to find out the contribution of each zone in the total revenue of E a s t Zo n e Dabur Hajmola from Gurgaon.e. 72% 5. 72% followed O ld G u rg a o n by Old Gurgaon area which P a la m V ih a r contributes 16% of total revenue. Least contribution is made by Sector 4.
Sweets Shops and Canteens contribute about 2 percent of total quantities sold as they are very few in number. The quantity of Dabur Hajmola sold by each General Store is less as compared to the Departmental Store but as they are many in numbers their contribution is highest in the total quantities sold of Dabur Hajmola from Gurgaon.
. maximum quantities of Dabur Hajmola in Gurgaon sell through General Stores followed by Departmental Stores and Medical Stores. This is because of the fact that north zone has the maximum number of stores and shops penetration as compared to any other zone.followed by East zone. Bakery Shops. The Kirana Sops.
Market share of Dabur Hajmola ( On the basis of type of outlet it is available in)
Availability of Dabur Hajmola
2% 2% 2% 2%
General Store Kirana Shops Bakery Shops Sweets Ssops
Canteen of Institutes
According to this pie-chart.
Companies which are able to combine high product quality with high market share average around 40 percent return on investment.
. they are prepared to pay more for it. and product quality. 40% ROI: • High Market Share • High Product Quality Your offering is in the best quadrant. market share. This matrix displays this relationship. If customers perceive the offering as being of higher quality.PRODUCT/MARKET PROFITABILITY
Profit Impact of Market Studies (PIMS) research has shown that there is a clear relationship between profitability. Here we consider quality of all aspects of your offer.
**Dabur Hajmola also lies in this quadrant with 93% of market share and offering high product quality. These profits probably result from low costs as a result of economies of scale made possible by the high market share.
Low Return: • Low Market Share • Low Product Quality Your offering is in the quadrant where profitability is generally very low.S. Both market share and product quality are below average. **S.
20% ROI: • Low Market Share • High Product Quality Your offering is in the group that averages a 20 percent return on investment.G. The principle criterion for purchase is price. **Divya Pharmacy lies in this quadrant. Products in this quadrant are often oriented to a mass market and are generally quite difficult to differentiate.Pharma competitor of Dabur Hajmola lies in this quadrant with 1% market share and offering low quality as compared to Hajmola. Although you have a low market share.
20% ROI: • High Market Share • Low Product Quality Your offering is in the quadrant that averages about 20 percent return on investment. Companies in this quadrant generally consider withdrawing their offering and making investments elsewhere.
. though its market share is initially low but it is offering high quality products with Ayurvedic ingredients and is a prospective threat to Dabur Hajmola. customers are willing to pay a higher price for the product.
This matrix examines how an organization might gain a competitive advantage. It measures relative costs and the degree to which the organization can differentiate its products/services from those of its competitors.
Outstanding Success: • Differentiation: High Relative Costs: Low
Maintain Specialty: • • Differentiation: High Relative costs: High Indicates a specialty company that markets unique products at premium price.
If you can maintain your cost advantage. Consumer Survey Analysis
The Customer survey included a question which inquired about the factors that influence the consumers to make a decision on which brand of Digestive tablet and Candies they wished to buy.
Maintain Cost Advantage: • • Differentiation: Low Relative costs: Low Your products or services are much like your competitors'. The trends reflected are summarized in the following chart:
. Freedom to compete at any price.• •
Outstanding opportunity for success.
Hope for Growth Market: • • • Differentiation: Low Relative costs: High You have high costs and a commodity type of product. This reflects the pre-purchase decision making of the consumer before the actual point of purchase. The only hope for success is rapid growth of the market. you can compete well as the lowest cost producer.
**Dabur’s Hajmola lies in this quadrant where it provides vast customer base with relatively low costs but high product differentiation through high quality.
15 percent of the consumers are influenced by the taste of Dabur Hajmola. Customers having Celebrity Endorsement (6%) . Thus a brand with a high trust value for an individual consumer is a major factor to influencing consumer buying and comes only after the Main ingredients on 16% of the consumer’s priority list. 3. It also helps in proper digestion and relieves indigestion.Factors Influencing Customers Purchase Decision
30% 25% 20% 15% 10% 5% 0% 25% 16% 15% 12%
1.a. 2. Brand trust is a major factor that affects consumer’s buying patterns. Advertisement (6% of the customers) and Easy Availability (10% of the customers) were among the least counted factors that accounted for the purchase of a particular brand of Digestive tablets and candies. The traditional Indian Culinary mix of herbs and spices it contains. 25 percent of the customers are influenced by the main ingredient Dabur Hajmola contains. 4.
. Controlling Dyspepsia. helps in easing condition of flatulence. and increasing appetite. The zingy and tangy taste of Dabur Hajmola influence them to purchase it vis.vis its competition.
The second option of going toanother shop to purchase the Dabur product showed a high level of brand loyalty but low level of shop loyalty.
The first option of buying another brand was to see if the customer was indifferent among the various brands available in the market.Brand Loyalty towards Dabur
The questionare tried to query the customers of Dabur Hajmola about their response if they were to not get Dabur Hajmola at their Shop of purchase. If the customer chose to postpone his/her purchase of the product to a later date. it showed a higher level of brand as well as shop loyalty.
Dabur has a high brand loyalty among its consumers.
. Only 6% of its customers responded with the option which showed low brand loyalty. The options were helpful in giving us a better insight to the brand loyalty among the customers.
TENDENCY TO BUY
to have a unique identity in customer’s mind.
Focused Differentiation: • Unknown company • Me-Too Product Most customers will not buy from you. This chart illustrates the relationship between these factors as it relates to you and your competitors. Your best chance for survival is to differentiate your product to make it attractive for some subgroup of customers. Promotion: • Well known company • Me-too Product Your company is well known but your product offers little differential advantage over its competition.Buying decisions are influenced by many factors.
**This quadrant is the aspiring and most sought after segment for most products and for Dabur’s Hajmola also. The success you can expect will depend largely on your skills in sales and your efforts in the general promotion of your product. Two of the most important factors are the nature of the product itself and the extent to which the customer knows and trusts the supplier.
You Have It Made: • Well known company • Unique Product This quadrant implies success.
Advertising: • • Unknown company Unique Product
. It is going to be difficult.
**Dabur’s Hajmola lies in this quadrant as the company is well established and has aggressive advertising strategies with focus on brand endorsements combined with high and effective sales promotion strategies. Most of your customers rebuy from you most of the time if you fall into this category.
Dabur Hajmola has a very broad product line which includes Dabur Hajmola digestive tablets. Your success depends on the impact that sales and advertising make on your image. pineapple. Hajmola Mast Masala.Customers are suspicious about dealing with companies which are unknown even if they have superior products.aam. Its candies are available in many flavours. though it offers unique products but is not aggressive advertiser. Dabur Hajmola offers various new and innovative variants in its product line. Your must focus your efforts in these areas of marketing to be successful. litchi. etc. Hajmola Candy.
Present Performance Of Dabur Hajmola
Present performance of Dabur Hajmola on 4Ps of marketing On the basis of Retail Audit and retailers’ response we have tried to analyze the present performance of Dabur hajmola on 4 Ps of marketing.
. and Hajmola Yumstick. imli.
**Divya Pharmacy’s products lie in this particular quadrant. Hajmola Anardana.
• • •
Dabur Hajmola is a low-priced product. Digestive and Tasty.e. Dabur Hajmola Tablets are promoted on Health platform as an Ayurvedic and Digestive tablets. The company uses Amitabh Bachchan as its brand ambassador and tries to cash in on his popularity. Dabur Hajmola Mast Masala is being promoted on dual-benefit i.
PLACE • Dabur Hajmola’a Supply Chain Flow Chart
Dabur Hajmola is famous for its traditional Indian Culinary mix of herbs and spices that helps in easing condition of flatulence. Yumstick and Anardana are promoted on Taste platform as zingy and tangy products. and increasing appetite.
• • •
Dabur Hajmola has different promotional strategies for its different products. Dabur Hajmola Candy. It also helps in proper digestion and relieves indigestion. Dabur Hajmola Candy and Yumstick if famous among children as it is low-priced and can be bought in quantities with their pocket money. Dabur Hajmola tablets are preferred by consumers of all age groups and consumers belonging to 35 plus age group consume it on daily basis. Promotion on mass media such as television is done by the company centrally.
2. 4-level distribution channel:
Manufacturing locationMother DepotsC&F Agents Distributors ↓ CustomersRetailers
The distribution channels followed are of 4 types: 1.The various products of Dabur Hajmola are moved from its manufacturing location to Carry & Forward Agents (C&F Agents). Institutions and Export Customers. The Mother Depots then distribute it to various C&F Agents who thereafter distribute them to various distributors. Mother Depots. One-level distribution channel: Manufacturing locationInstitutionsCustomers
. 3-level distribution channel: Manufacturing locationC&F AgentsDistributorsRetailersCustomers. From these distributors it goes to retailers.
Hajmola Mast Masala and Yumstick are not at all available in Gurgaon.
.4. Zero –level distribution channel: Manufacturing locationExport Customers
Dabur Hajmola tablets and Hajmola Candy have a very strong distribution in Gurgaon but its other brands viz. Hajmola Anardana and Hajmola Fun2Candy are somewhat weak in their distribution.
As it is market leader it needs to strengthen its position in the market. It has 93% market Share and therefore we can increase its market size by devising appropriate strategies.Dabur Hajmola has High Business Growth and High Market Share and hence has a Star position.
All the competitors of Dabur Hajmola are at the position of Question Marks as the Business Growth is high but their Relative Market Share is low.
STRATEGIES FOR INCREASING MARKET SIZE
hair strengthening and proper digestion. Dabur Hajmola Amla Candy will be provided in pack size of 500 gms priced at Rs.
. . Counters mean the cash or delivery counters. so as to be within the reach of children.
Provided as a replacement or complement with mouth refreshments in restaurants/food chains. 95. improving the eye sight. These offerings would be unique for Dabur Hajmola and can boost its stagnant growth in the Digestive segment. Dabur Hajmola Tablets in the flavours of Aijwain and Black Salt will be priced at Rs. Restaurant owners can be provided with commission after setting off profit margins of the company. Can be placed at Counters in Showrooms/Malls. These will be targeted towards consumers in the age group of 35 and above. 50 and 1 kg priced at Rs. 1 per sachet.
Dabur Hajmola Anardana sachets will be priced at Re. Dabur Hajmola Anardana will be supplied in the form of small sachets. The heights of these counters should not be more than 3 fts. The target segment for this strategy is children above 4 years.
Providing new variants of Dabur Hajmola Tablets in form of new flavors. 20 for 110 tablets. namely Tablets with Aijwan & Black Salt as ingredients. We are planning to introduce Dabur Hajmola Amla Candy. These candies will help in blood purification.
”. we are planning to enhance its shelf space by providing prompt delivery to the retailers. jhatpat aaram. These vendors can be hired on commission basis directly or through particular Ice-Cream manufacturing companies. The distribution of some products of Dabur Hajmola viz. Dabur Hajmola to promote its Digestive segment can engage it’s products to be endorsed by health care professionals.Hajmola.
Provided to licensed Ice-Cream Vendors. as customers can trust these professionals due to their profession and experience
We have seen how Hajmola captures more than 60% market share in the digestive products markets worth Rs150 crores . children.
Children are a primary next focus for the company and it needs to channelise adequate promotion focus through such media as Cartoon Channel and other children related programmes. Endorsements by health care professionals. Supplied to Low cost Airlines/Railway Catering Agencies. Hajmola Mast Masala and Hajmola Yumstick is very weak. Dabur Hajmola can enter into strategic alliance with Indian Railways or with various Zonal Railways catering services to supply Hajmola after the meals as a digestive tablet. thus can reach the target segment of Hajmola Candy i.e.Chatpata swad. Its tag line for years . Therefore. provides instant relief) conveys the
. (tastes good. These licensed Ice-Cream Vendors are present in every nook and corners of the country. one of the strongest brands in Dabur’s portfolio.
greenfielders. www.product’s benefits simply and succinctly.com. accessed on January 5. www.com.com and www. accessed on December 30.com Research Paper on “A REPORT ON DABUR CHYAWANPRASH INDUSTRY. The brand has extended itself to candy and other forms of digestives as well. “Apart from a new price point. COMPETITORS & CUSTOMERS” by students of Xavier Institute of management.com. Hajmola.kslinvestor. accessed on January5. is currently being endorsed by Amitabh Bachchan. a new format like candy (has) brought new consumers.kslindia. 2007.cbronline.
www. into the brand fold.dabur. 2006. 2007. Bhubneshwar. It had used Kapil Dev in the late '90s for Hajmola.
. mostly kids. www.
12th Feb 2002 Kaul. Dabur Upbeat on Growth Strategy.com/2002/02/13/stories/2002021301930400.T.com/fe/daily/20000705/fst05020. www. P. Marketing Management Ramaswamy and Namakumari.. Marketing Management Rajan Saxena.com/Management %20Review2000.htm.dabur.
Jyothi Datta. http://www.financialexpress. The Hindu Business Line Internet Edition. http://blonnet. Marketing Management
. Dabur India Limited. Financial Express Online Edition.pdf Philip Kotler. Pummy. (2000) Dabur Honey Now in a Trendy Squeezee Pack.html 5th July Management Discussion and Review.