Professional Documents
Culture Documents
Burman launched his mission of making health care products. With the growing popularity of Dabur products, in 1986 Dr. S. K. Burman set up Daburs first manufacturing plant for mass production and in the early 1900s Dabur ventured into the business of nature based ayurvedic medicines for which standardized drugs were not available in the market. In 1936 Dabur sets up Dabur India Limited and a new manufacturing plant is set up in Faridabad on the outskirts of Delhi. In 1979 one of the largest and best equipped production facility was started near Sahibabad along with the formation of Dabur Research Foundation (DRF) signaling the launch of research operation in the pioneering area of health care. In 1986 Dabur became a public limited company and raised its first public issue in 1994 with the company share issued at a high premium and oversubscribed twenty
one times. For better operation and management 3 separate divisions were created in 1996 according to the product mix, namely Health care products division, Family production division and Dabur ayurvedic specialties limited. In 1997 Dabur enters full scale in the nascent processed foods market with the creation of the food division. Project STARS(Strive to achieve record success is initiated to give a jump start to the company and accelerate its growth performance) and in 2000 Dabur established its market leadership status with a turnover of Rs 1000 Crores. From a small beginning and upholding the values of its founder, Dabur entered the august league of large corporate business. Dabur has also ventured into the specialized health care area of cancer treatment with its oncology formulation plant at Baddi in Himachal Pradesh and extended its global partnerships by entering into joint ventures with Osem of Israel for food and Bongrain of France for cheese and other dairy products.
Dabur India Limited today is the third largest FMCG Company in India after a takeover of Balsara India Limited and with interests in Health care, Personal care and Food products. Powerful brands like Dabur Amla, Dabur
Chyawanprash, Vatika, Hajmola and Real are the major contributors to Daburs turnover of Rs.1329 crore. To build on its reputation of being Indias most well recognized herbal specialist company, Dabur India Limited has focused on its five major brands- Dabur, Vatika, Anmol, Hajmola, Real Juice and Dabur Nature based Food Products. Domestic businesses constitute the Consumer Care Division (CCD), the Consumer Healthcare Division (CHD) and subsidiaries including Dabur Foods Limited.
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 organisation. We are intellectually honest in advocating proposals, including recognizing risks.
We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.
CORPORATE GOVERNANCE: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 decision-making 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
CORPORATE CITIZENSHIP 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.
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 computer-controlled 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.
Dabur
Hajmola -
Bhringraj
Chyawanprash- Hajmola Candy Ayurvedic Tail Dabur Dabur's Health Care range brings for you a wide selection of herbal products, to provide complete care for varying individual needs. We derive our products from the time-tested heritage of Ayurveda, backed by the most modern scientific test and trials. That ensure unfailing quality and safety in anything you pick. Dabur Janma GhuntiChyawanprakashDabur ChyawanshaktiPudin Hara (Liquid and Pearls) Super Thanda Tail Badam Tail Active Blood Purifier Shilajit Gold Nature Care Sat Isabgol Shilajit Shankha Pushpi Sarbyna Strong -
Amla Hair Oil Amla Lite Hair Oil Dabur presents its range of herbal personal care products, created to make you look and feel good deep down. Bringing together the gentle touch of nature and Ayurvedas wisdom. Backed by the unfailing quality of Dabur Products. Vatika Hair Oil Anmol Sarson Amla -
- Vatika Smooth & Silky Shampoo - Vatika Dandruff Control Shampoo - Vatika Root Strengthening Shampoo - Dabur Total Protect Shampoo
Gulabari Face Freshener Gulabari Hydrating Rose Crme Gulabari Hydrating Rose Lotion Vatika Fairness Face Pack -
- Meswak Toothpaste - Promise Toothpaste - Dabur Lal Dant Manjan - Dabur Binaca Toothbrush
Dabur Real Bags Gold In Reader's Digest Trusted Brand Awards Dabur Figures In Top Great Place To Work 2006 List
Dabur India Ltd placed in the list of '20 Stocks You Must Own', prepared by Forbes India
______________________________________________________________ ___________
Dabur has been ranked amongst India's Most Innovative Companies by a Business TodayMonitor Group survey
Hajmola has been ranked 34th in Indias 100 Most Valuable Brands list
Hajmola, one of the strongest brands in Dabur's portfolio, has been listed among the Top 18 Iconic Brands in India that have stood the test of time
Dabur Indias fruit juice brand Ral awarded the Readers Digest Gold Trusted Brand Award 2008 in the food & beverages category
Three Dabur brands -Hajmola, Dabur Amla and Vatika -- have debuted in the Economic Times Brand Equity's Most Trusted Brands 2008 list. Besides, Dabur Foods has climbed up to take the 40th spot
Hajmola moves up 11 spots to take the 34th position among India's Top 100 Most Valuable Brands of 2008, released by 4Ps and ICMR
Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable (Company) Brands by Brand Finance
Dabur India CEO Mr. Sunil Dabur India Ltd was Duggal was named Best Corporate Leader of 2008 ranked the Business Leader in the FMCG - Personal Care Category at the NDTV Profit Business Leadership Award 2008
Launch of the year at the B&E Leadership and at Images Retail Awards Excellence Awards
Duggal has been ranked among India's Most 'value'able CEOs by Business World
ADDRESS Corporate Office Kaushambi Ghaziabad - 201010 Uttar Pradesh, India Kaushambi Corporate Tel: Office +91 (0120) 3982000 (30 Lines) +91 (0120) 3001000 (30 Lines)
Registered Office
8/3,
Asaf
Ali
Road,
THE PATH AHEAD Dabur intends to significantly accelerate profitable growth. To do this, Dabur will:
Focus on growing their core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology
Be the preferred company to meet the health and personal grooming needs of their target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science
Provide the consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader Be a professionally managed employer of choice, attracting, developing and retaining quality personnel
Dabur's mission of popularising a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicine, naturebased 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.
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 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 1930 - Automation and upgradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 - Personal care through Ayurveda 1949 - Launched Dabur Chyawanprash in tin pack 1957 - Computerisation of operations initiated 1970 - Entered Oral Care & Digestives segment 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet 1979 - Dabur Research Foundation set up
1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicine 1989 - Care with fun 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care 1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real blitzkrieg 1998 - Burman family hands over management of the company to professionals 2000 - The 1,000 crore mark 2001 - Super specialty drugs
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business 2005 - Dabur aquires Balsara 2005 - Dabur announces bonus after 12 years 2006 - Dabur crosses $2 bin market cap, adopts 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
Consumption Chart The pie-chart below shows the contribution of different product categories to the Customer Health Division (CHD) of Dabur. According to the chart, maximum contribution is made by Hair Care products followed by Oral Care products and Health Supplements. Digestive and Confectionary products contribute 10% of total contribution in CHD of Dabur and least contribution is made by Home Care products.
2005 - 06
21% 6%
10% Digestive & Confectionary 33% Hair Care Baby & Skin
22% 8%
Daburs largest acquisition of Balsara hygiene was the strategic move to make its presence in all price segments in the oral care market. Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player.
Here we are going to do an analysis of the Dabur Consumer Care Division (SBU) which deals in personal care and health care. The major competitors under Dabur CCD are Category Dabur Share Main Competitors
Hair
Care
(Oil
HUL. Himalaya
Colgate,
Skin Care
17%
Chyawanprash
65%
Zandu, Baidyanath
Himami,
Honey
40%
Zandu, Himalaya
Charak,
Hajomola
90%
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Dabur estimated that the southern region was contributing as alow as 7% to its overall growth. For this purpose, the south team adopted a three-phase approach. First it focused on the point of sale promotion and stocking practices. Second phase included better marketing efforts in terms of advertising and packaging. Finally, it envisioned customized product launches for the southern states. The completion of first two phases by 200506 resulted in increasing contribution to 10%. When we see the overall picture together it is very obvious that Dabur had followed an aggressive strategy.
Industry Overview: As FMCG sector was struggling with the slow growth in the Indian economy. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.
Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Dabur decided to take numerous strategic initiatives, reorganize operations and improvise on its brand architecture beginning 2002. It decided to concentrate its marketing efforts on Dabur, Vatika, Anmol, Real and Hajmola to strengthen their brand equity, create differentiation and emerge as a pure FMCG player recognized as a herbal brand. This was chosen after a study with Accenture, which revealed that Dabur was mainly perceived as an Herbal brand and connected more with the age group above 35. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. Also, larger retailers were making their foray into the FMCG market. Apart from HLL, P&G, Marico and Himalya, ITC was also posing a challenge. The
supply chain of Dabur was becoming complex because of the large array of products. Southern markets share in the sales figure was negligible. These factors posed a threat to Dabur and hence small changes were not enough.
Analysis of FMCG Sector Strengths: Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Weaknesses: Lower scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential
High consumer goods spending Threats: Removal of import restrictions resulting in replacing of domestic brands Slowdown in rural demand Tax and regulatory structure
NEED OF THE STUDY:This report gives the help to the marketers for analyzing & Understanding the product portfolio of Dabur India Limited. These are the following some importance of this research report as under: To spread the awareness of new product of the Dabur Giving right information to the retailers & also gathering information about the competitors. This report can be a secondary data for the Dabur.
OBJECTIVE OF THE STUDY:The main objective of the report is Design strategy to increase the sales of NPD and ensure visibility in Ghaziabad To Design the any sales strategy for the new product we have to know the market scenario of the particular product. What is going in the market? To approach the placement of new product in the market the first level which is sales should be very effective. But the question is that how we approach that particular are. The strategy starts from the location and geographic area. Because if we are going to target rural market for premium product which would not work. Means that the right product at the right place should be. Dabur has a wide portfolio in its kitty dealing with products in every category- Skin care, Hair care, Home care, Health care, Baby care. With increasing competition and growing consumer needs we need to keep coming up with new products to cater to the consumers? Hence new products are the future growth drivers for Dabur. It is of utmost importance to us that the new products reach the consumers. We are looking at strategies to reach the
consumers and make them aware of new products from Dabur ensuring that we do not get lost in the crowd brands from competition. Objectives:I. II. III. IV. Get an understanding of the product portfolio of Dabur Guage the placement of NPDs in the market Design strategy to increase focus on and sales of NPDs Design strategy to improve visibility of NPDs understanding competition.
RESEARCH METHODOLOGY:Research Description The type of research here is Exploratory Research Design. This kind of design is used for more precise investigation or of developing the working hypotheses from an operational point of view. It has inbuilt flexibility, which is needed because the research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory studies, which in fact may necessitate changes in research procedure for gathering relevant data. The characteristic features of research are as follows: Flexible Design Non-Probability Sampling Design No pre-planned design for analysis Unstructured instruments for collection of data No fixed decisions about the operational procedures Data Sources The data gathering can be from secondary data, primary data or both. Secondary data are data that are collected for another purpose and already
exist somewhere. Primary data are data freshly gathered for a specific purpose or for a specific research project. The cost incurred in collecting primary data is more than secondary data. The secondary data available orally in this research, therefore whole data is collected primarily. Research Approaches Primary Data can be collected in four ways: Observational Research Questionnaire for retailers Behavioral Data Experiments In Observational Research, fresh data can be gathered by observing the relevant factors & settings. An environment is created to judge the response of respondents in that situation. Questionnaires are best suited for descriptive research. Companies undertake surveys to learn about peoples knowledge, beliefs, preferences, and satisfaction, and to measure the magnitudes in the general population.
Behavioral data is collected from the visits to shops, where the customers come & leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Experimental Research is the most significantly valid research among all above. It studies the cause & effect relationships by eliminating competing explanations of observed findings.
The research approach in this research is followed is of survey. Here the movement in to the markets of different areas, meet the franchisees, retailers, & customers, find their thinking & attitude regarding this huge cards, gifts & stationery market, fill questionnaires from them & even personally if the shop owners dont have time. Research Instruments There is a choice of mainly three instruments in collecting primary data: Questionnaires Psychological Tools
Questionnaire consists of a set of questions presented to respondents. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested & debugged before they are administered on a large scale. Psychological Tools such as laddering techniques, depth interviews & rorshach tests can probe a buyers deeper beliefs & feelings. Ladd ering involves the points set in ascending order, Depth Interview involves the questioning deeply, & rorshach involves some kind of pictures
representation, graphs etc. to check the perception of respondent. Sampling Sampling Plan Sampling can be defined as the technique through which an idea can be generated out of whole market by taking just a small part of it. The sampling process has the following steps: Define the population Establish the frame of population Choose method of sampling Determine the sample size
Write instructions for identification of sample Under this process, the sampling plan has to be designed. This plan deals with basically three decisions: Sampling Unit Who is to be surveyed? Sample Size How many people should be surveyed? Sampling Procedure How should the respondents be chosen? Sampling Unit By the sampling unit, the target market has to be defined that will be sampled. Once the sampling unit has been determined, a sampling frame must be developed so that everyone in the target population has an equal or known chance of being sampled. The sampling unit in this research of retailers from Ghaziabad. Sample Size Large Samples give more reliable results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve the reliable results. Samples of less than 1 percent of a population can often provide a good reliability. In this research researcher was collected 200 retailers base from different area of Ghaziabad.
In this research, Random Sampling is followed. The common group here is of retailers. Contact Methods Once the sampling plan has been determined, the decision now is to taken regarding how the subject should be contacted: Telephone Personal Telephone interviewing is best method for gathering information quickly; the interviewer is also able to clarify questions if respondents dont understand them. Personal Interviewing is most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress & body language. New Product Development:New product development (NPD) is the term used to describe the complete process of bringing a new product or service to market.
A company may find itself in a situation where it may be advisable to develop a new product. When sales of its current range of products have been declining over the past few years or when it receives complaints about its products from customers, distributors, retailers, it may have to find the possible reasons for the same. This may lead to the improvement of the existing product or the development of an altogether new product. As we know, the concept of product life cycle suggests that a product passes through different stages. When a company finds that some of its products have entered the declining stage, it may have to take concrete measures to replace them. This can be achieved in two ways: Acquisition Innovation We are concerned here with the latter which can be broadly of two types: Internal innovation Contract innovation New product development can be carried out in one of the following ways:
New product features can be developed by adapting, modifying, magnifying, minimizing, substituting, rearranging or combining the existing features of a product. Different quality versions of the existing product can be developed so that the needs of different markets can be met. Additional models and sizes of the existing product can be brought out. New Product development gives the opportunity to the company to explore the market and generate the revenue through it. It makes company to always a step ahead to its competitors. There are some new products of Dabur which comes in the market after a long period of time. New Products of Dabur: Dabur Chyawan Junior Dabur India entered into the milk beverages industry with the launch of its product Chyawan Junior. The product is based on the ayurvedic formulation Chyawanprash along with a chocolate flavour. The advertising campaign for Dabur Chyawan Junior has been developed with mothers as the target audience. The advertisement with the tag line 'Apun Ka Style', represents the
relevance of Chyawan Junior in a kid's day-to-day life. The product has been endorsed by Bollywood legend Amitabh Bachchan. (Launched in October 2007) Health supplement with the power of Chyawanprash Competitors- Bournvita, Horlicks, Complan Dazzl :- Dabur launched of its Hard Surface Cleaner, Dazzl, which is to be endorsed by Ms Irani. The new Dazzl hard surface cleaner range is a result of extensive research from Dabur India. The Dazzl Disinfectant Floor Cleaner will come in 550-ml packs, priced at Rs 50, the Dazzl Anti-Bacterial Kitchen Cleaner will be available in two versions, a 400-ml spray (priced at Rs 75) and a 500-ml toggle (Rs 65). Floor Cleaner, Kitchen Cleaner & Glass Cleaner (Launched in November 2007) Competitors- Lizol, Mr.muscle
Sani fresh:
Dandruff control shampoo:- Vatika Dandruff Control is an all-in-one natural solution to keep your hair clean, lively black, conditioned and nourished, thereby stalling hairfall. Vatika Dandruff Control is available with enhanced beauty benefits in three distinct variants -- Naturally Clean, Hairfall Defense and Lively Black. All are marketed in attractive and vibrant packs with contemporary graphics. Vatika Dandruff Control Shampoo comes in three pack sizes: a sachet for Rs 1.50, 100ml for Rs 65 and 200ml for Rs 120. Competitors- P&G, HUL
LIMITATIONS:-
In spite of making all my efforts to make the dissertation a perfect one there are certain limitations in the study, which are felt while writing the report. As the study is an exploratory one designed to find new hypothesis, readers are not suggested to conclude the result. The study suffers from the basic limitations of the possibilities of difference between what is recorded and what is true. 1. The first problem I faced is in getting the co-operation of the retailers. Many of the respondents I approached did not agree to the need and utility of surveys and hence did not agree to provide me with information.
2. The second problem faced by me was in getting the required secondary data, sorting them, photocopying and organizing them according to my need.
3. There has lack of time and financial resources prevented the investigator from carrying out an in depth study.
4. The findings of the survey are based on the subjective opinion of the respondents and there is no way of assessing the truth of the statements.
5. As the sample size of the survey was so small and comprise of only 200 customers, the survey may be biased, as its not representing the whole Ghaziabad.
SELLING PROCESS
&
MARKETING MIX
The major marketing management decisions can be classified in one of the following four categories:
These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram:
Product
The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering.
Product decisions include aspects such as function, appearance, packaging, service, warranty, etc.
Price
Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.
Place
Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.
Distribution decisions include market coverage, channel member selection, logistics, and levels of service.
Promotion
Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a breakeven analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. Promotion decisions involve advertising, public relations, media types, etc.
Product
Place
Target Market
Price
Promotion
The firm attempts to generate a positive response in the target market by blending these four marketing mix variables in an optimal manner.
The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps.
Channel members Channel motivation Market coverage Locations Logistics Service levels
DABUR PRODUCT SELLING PROCESS Dabur product process of selling starts from stockiest. C&FA dose not have any process to play in the process of selling of dabur product products. They are just Clearing & Forwarding Agents they store the manufacturing products and then supply it to stockiest. Stockiest pay the money to dabur product through demand draft. Stockiest further sells the products to retailers. Retailer finally sells the products to consumers.
Brand: Dabur itself is a very reputed and well known brand in the market and its 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 product provide full support to its stockiest, retailers and consumers, what so ever the problem is
Price
List price: Dabur decide 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 given to stockiest sales man if he achieves 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 product 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 product 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.
DESCRIPTIVE WORK ON SUBTOPIC OF STUDY:Sales promotion A good definition of sales promotion would be as follows: An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods. In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales promotion involves short-term incentives to encourage buyers to purchase a product.
It's aim is to encourage immediate purchase of a product. If used too often however, sales promotion can create a situation where consumers will not buy unless there is a bonus offer. This will result in loss of profit for the company. More than any other element of the promotional mix, sales promotion is about action. It is about stimulating customers to buy a product. It is not designed to be informative a role which advertising is much better suited to. Sales promotion can be directed at: The ultimate consumer (a pull strategy encouraging purchase) The distribution channel (a push strategy encouraging the channels to stock the product). This is usually known as selling into the trade METHODS OF SALES PROMOTION Price promotions Price promotions are also commonly known as price discounting These offer either (1) a discount to the normal selling price of a product, or (2) more of the product at the normal price.
Increased sales gained from price promotions are at the expense of a loss in profit so these promotions must be used with care. Coupons Coupons are another, very versatile, way of offering a discount. The examples of the use of coupons: - On a pack to encourage repeat purchase - In coupon books sent out in newspapers allowing customers to redeem the coupon at a retailer - A cut-out coupon as part of an advertisement The key objective with a coupon promotion is to maximise the redemption rate this is the proportion of customers actually using the coupon. One problem with coupons is that they may simply encourage customers to buy what they would have bought anyway. Another problem occurs when retailers do not hold sufficient stocks of the promoted product causing customer disappointment.
Use of coupon promotions is, therefore, often best for new products or perhaps to encourage sales of existing products that are slowing down. Gift with purchase The gift with purchase is a very common promotional technique. It is also known as a premium promotion in that the customer gets something in addition to the main purchase. This type of promotion is widely used for: - Subscription-based products (e.g. magazines) - Consumer luxuries (e.g. perfumes) Competitions and prizes Another popular promotion tool with many variants. Most competition and prize promotions are subject to legal restrictions. Money refunds Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. These schemes are often viewed with some suspicion by customers particularly if the method of obtaining a refund looks unusual.
Frequent user / loyalty incentives Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc. Point-of-sale displays Research into customer buying behaviour in retail stores suggests that a significant proportion of purchases results from promotions that customers see in the store. Attractive, informative and well-positioned point-of-sale displays are, therefore, very important part of the sales promotional activity in retail outlets. There are three main types of sales promotion: Consumer promotions Trade promotions Sales force promotions
Consumer promotions are often used to try and condition the way consumers behave. They are usually short term inducements to encourage people to buy. For example, trial packs, buy one get one free, contests.
Trade promotions are directed at intermediaries and are intended to increase sales in the distribution channel. Sales force promotion is directed at the personal selling team and is intended to be an incentive.
Examples include: Coupons Discounts And Sales Contests Point Of Purchase Displays Rebates Gifts And Incentive Items Free Travel, Such As Free Flights
Consumer promotion tools include samples, redeemable coupons, cashback offers, cents-off deals, premium offers, advertising specialities, patronage rewards, point-of-purchase displays and demonstrations, contests, sweepstakes and games. Trade promotion directed to wholesalers, retailers and other intermediaries can often cost more than consumer promotion. Trade promotions often occur in conjunction with consumer sales promotions. Trade promotion tools include allowances, free goods or push money (cash or incentives). Business to Business promotion is directed at customers in industrial markets. Marketers use tools such as conventions (exhibitions), trade shows and sales contests to gain awareness for their company's products or to increase sales leads. For example, food and beverage companies from all over the world gather at the Annual International Food and Beverage Exhibition to display their products, increase awareness and sales.
SALES PROMOTIONAL TOOLS OF DABUR Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Point-of-sale displays Free samples Contest /demos Festival Sales Retailer coupons Multi-packs Special price for twos Allowances for additional shelf space Merchandising Sales contest Incentives Awards & prizes Premium gifts
Training Sales Meetings Samples/product sampling Trade Fairs & exhibitions Contests & Sweepstakes Exchange Offers/buyback Refund / Rebate Price / Bonus Packs
The sales and marketing relationship Marketing and sales are very different, but have the same goal. Marketing improves the selling environment and plays a very important role in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing department's goal is to increase the number of interactions between potential customers and the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating new products (new product development), among other things. In most large corporations, the marketing department is structured in a similar fashion to the sales department and the managers of these teams must coordinate efforts in order to drive profits and business success. For example, an "inbound" focused campaign seeks to drive more customers "through the door" giving the sales department a better chance of selling their product to the consumer. A good marketing program would address any potential downsides as well. The Sales department's goal would be to improve the interaction between the customer and the sales facility or mechanism (example, web site) and/or
salesperson. Sales management would break down the selling process and then increase the effectiveness of the discrete processes as well as the interaction between processes. For example, in many out-bound sales environments, the typical process is out bound calling, the sales pitch, handling objections, opportunity identification, and the close. Each step of the process has sales-related issues, skills, and training needs as well as marketing solutions to improve each discrete step, as well as the whole process. Merchandising:Merchandising is more than simply the arrangement of products on the shelf. It is an integral component of the business image. It should be considered when you design your logo, business cards, brochures, letterhead, packaging, and product mix Merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. Merchandising is the
methods, practices, and operations used to promote and sustain certain categories of commercial activity
SWOT ANALYSIS OF DABUR: This SWOT analysis is done based on the financial statements & the annual report of Dabur for the financial year 2007-2008. Other information has been taken from the company website and different magazine & search engines. Strengths: Reserve and surplus: Reserve and Surplus is increased by 35.11% to 531 crores. It shows the firms strengths, and ability to expand the business. Company is in the position to take the opportunity if comes even if the market situation will not good. Increase in sale: Sale is increased by 15% to 2396 crores, inspite of the slowdown in the economy. Dabur has recorded higher growth than the industry average. Increase in ROCE: return on capital employed is increased by 18% indicate the higher value for the shareholders and good image in the market. It will be easy for the company to raise money through market.
Advertisement: Spending on advertising increased as an aggressive strategy to differentiate the product from the competitor products. Weaknesses: R & D expenditure decrease by 88% Competition is very tough and required new improved or new product to compete with the competitor products. Lack of dominating position in big categories: Dabur has a week competitive position in large such as hair oils, shampoos, and oral care. While, these categories are growing between 14-18%, we believe Dabur will need to make significant investments in order t grow/ maintain its share in these categories. Gap in product line: Dabur consumer care consists of many brands in some segment there are no other variants available. Competitor can take the advantage of he gap. Opportunities: Large domestic market size: There is a growing pool of domestic customer is present for the consumption of FMCG products. Still the penetration level for many FMCG products is minimal, say for example
penetration level for oral care product in 48.6%, for Shampoo PL is Just 13%, and PL for Hair oil is 87%. Countrys large growing population makes a very large market and opportunity for Dabur. Disposable income increased: As the economy grows, income level of people increased and gives an opportunity to the companies to take a large chunk from the consumer, Increase in health consciousness among urban consumer: Health consciousness among urban consumer increased as the result of increasing literacy level. There is an opportunity for Dabur as it is considered to be the health brand. Untapped rural market: almost 65% of the Indian population is living in rural areas, and according to a report income level of the rural people is going doubled by 2012. 34.3% of the Indian population is of age (0-14): Parents always thrive to purchase safe & health products for their children; Dabur has earned a good name in manufacturing safe and healthy product. Presence in 50 countires: Dabur has its presence in 50 countries which gives it an access to the other markets. Threats:-
Intense Competition: The competition is very tough as three is large number of companies producing the similar types of the products. Distributor Power: in FMCG industry distributor hold huge power as companies are dependent on the distributor to sell their products. Growth of the Indian economy Packaging cost is increased Brand duplication is very high in FMCG industry
2%
Yes No
98%
Findings: 98% reatailer said that they keep or sell the products of Dabur. Whereas only 2 % told that they do not keep Daburs products.
No. of respondents
No 54%
Yes 46%
Findings: In my project areas only 46% reatailers are satisfied with the margin offered by Dabur. 54% say that they are not satisfied with the margin given by Dabur.
NO. of Respondents
P&G 28%
HUL 38%
Dabur 18%
RB 16%
Findings: 38% of the retailer admits that HUL is giving the best deal in the market. 28% said that P&G is offering the best margin for them. Only 18% retailer claimed that they are having good margin by Dabur. Only 16% retailer said that RB is giving them them the best deal in the market. By this pie we can clearly say that HUL is giving the best margin in the market.
No. of Respondents
20% Yes No 80%
Findings: 80% of the whole population of retailers admits that visibility affect the sale of the product. Whereas 20% retailers say that visibility has no impact on the sales of the products.
No. of respondnets
1% 6% 9%
Findings: 46% of the total retailers of Ghaziabad say that Dabur is having average visibility in the market. 38% say that Daburs visibility is good; whereas 6% also say that it has got a very good visibility in the market. But 9% also claim that Dabur is poor at visibility level in Ghaziabad. Only 1% rate it for having a excellent visibility in the market.
No. of respondents
4% 0% 11% 29%
56%
Excellent
Findings: 56% retailers admit that compensation offered by Dabur for visibility of its products is average. 29% say that Dabur pays very less for the visibility of its products. Only 11% say that Dabur is paying well for visibility. 4% admit it as very good, but not even a single % says that Dabur is paying excellent for the visibility aspect.
No. of Repondents
Findings: 75% of the total respondents claim that the competitors are floating better schemes than Dabur. Only 25% says that Dabur is offering better schemes than its competitors.
No. of Respondents
No 50%
Yes 50%
Findings: 50% of the reatailer have no idea about the new products of Dabur. Only 50% retailers know the new products offered by Dabur.
No. of Respondnets
Yes 38%
No 62%
Findings: From the total market only 38% says that there is a demand for the new products of Dabur, whereas 62% claimed that there is no demand for new products of Dabur in the market.
10.
No. of Respondnets
Findings: 35 % of the retailer says that HUL is giving more schemes on their new products as compared to Dabur new products. 33 % says that P&G is also giving good schemes at the new products of the company. 11% retailer says that Reckitt benckiser India is giving good schemes on their new products. 21% claimed that ITC is good for the schemes on new products in the market. 11. Does the use of danglers, fliers help you boosting sales?
No. of Respondnets
No 41%
Yes 59%
Findings: 59% of the total respondents say that dangler, fliers helps them is boosting their sales. But 41% also say that there is no effect on the sales by danglers, fliers
12.
No. of Respondents
Findings: In Ghaziabad, 65% of the retailers claimed that Dabur helps them in increasing the sales of new products. Only 35% are not agree at this point..
FINDINGS:-
As a whole, daburs product visibility is good in the market. Dabur has such a wide product portfolio that it is very difficult to have visibility for every product. HUL and P & G are focusing more on the visibility issue. Almost every retailer is having display window of HUL and P & G. HUL is paying the highest amount for the display window hired by the company. Daburs rates for the display windows are very low as compared to the competitor and the market. Salesmen of Dabur are not paying extra effort to place new products of Dabur. Visit of Daburs merchandiser is not so good. P & G is having the most visits by its merchandiser (3 times in a week). Proper information of schemes is not given by the salesperson of Dabur, where HUL is best at this. In shampoo range P&G is best, HUL is also good. In shampoo range, P & G is giving maximum schemes to the retailers.
RECOMMENDATIONS: Dabur should have more effort on the frequent visit of its merchandiser. Display window rate should be increased by the company to compete the market. Damage and expiry claim should be settled smoothly by the company to make a positive impact on the retailers. The company should start promotion campaign at the micro-level by increasing the visit of companys representatives to the retailers. The company should work collaboratively with the distributors in effective manner towards focusing on the area where there is a potential market for Daburs product and target that area. During my project this fact become clear that the customer are not well aware about the all products of Dabur, so through the strong advertisement company should try to increase the awareness of the Dabur products. Promotional Schemes should be more on the new products of Dabur to increase its sale. There should be proper approach for the display window by the company.
BIBLIOGRAPHY:-
Books:Marketing Management Marketing Management Marketing Research : : : Philip Kotler T.N.Chabra B.C.Goel
www.rediff.com www.balsara.com