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DISTRIBUTION CHANNEL RELATIONSHIP-A STUDY OF SALE

PROMOTIONS TOOLS IN DABUR


BRIEF HISTORY
Dabur was incorporated in 1884 in a small Calcutta pharmacy where Dr. S. K. 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. In 2005,
Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in 2006. Dabur foods merged with
Dabur India in 2007.
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.2396 crore.

ABOUT DABUR
Dabur India Limited is a leading Indian consumer
goods company with interests in Hair Care, Oral
Care,Health Care, Skin Care, Home
Care and Foods. From its humble beginnings in the
bylanes of Calcutta way back in 1884 as an
Ayurvedic medicines company, Dabur India Ltd has
come a long way today to become a leading consumer products manufacturer in India. For the past
130 years, we have been dedicated to providing nature-based solutions for a healthy and
holistic lifestyle.

Through our comprehensive range of products, we touch the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our
consumers. That guarantees you the best in all products carrying the Dabur name

DABUR AT-A-GLANCE

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

Leading consumer goods company in India with a turnover of Rs. 5,283 Crore (FY12)
2 major strategic business units (SBU) - Consumer Care Business and International
Business Division (IBD)
2 Subsidiary Group companies - Dabur International and NewU and several step down
subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer
Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer
Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE)
and Jaquline Inc. (USA)
17 ultra-modern manufacturing units spread around the globe
Products marketed in over 60 countries
Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and
over3.4 million retail outlets all over India

Consumer Care Business adresses consumer needs across the entire FMCG spectrum through four distinct
business portfolios of Personal Care, Health Care, Home Care & Foods

Master brands:

Dabur - Ayurvedic healthcare products


Vatika - Premium hair care
Hajmola - Tasty digestives
Ral - Fruit juices & beverages
Fem - Fairness bleaches & skin care products

12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, Dabur Honey, Glucose,
Fem and Odonil
Strategic positioning of Honey as food product, leading to market leadership
(over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65%
market share.
Vatika has been the fastest growing hair care brand in the Middle East
Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5
crore Hajmola tablets are consumed in India every day
Leader in herbal digestives with 90% market share
Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and
Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-touse formats
Has more than 300 products sold through prescriptions as well as over the counter
Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
Division also works for promotion of Ayurveda through organised community of traditional
practitioners and developing fresh batches of students

International Business Division (IBD) caters to the health and personal care needs of customers across different
international markets, spanning Nepal, Bangladesh, the Middle East, North & West Africa, EU and the US with its
brands Dabur & Vatika

Contributes to about 30% of total sales


Leveraging the 'Natural' preference among local consumers to increase
share in personal care categories
Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

High level of localization of manufacturing and sales & marketing

CORE VALUES
VISION

Dedicated to the health and well being of every household"

PRINCIPLES

OWNERSHIP

This is our company. We accept personal responsibility, and accountability to meet business needs.
PASSION FOR WINNING

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 DEVELOPMENT

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

CONSUMER FOCUS

We have superior understanding of consumer needs and develop products to fulfill them better.

TEAM WORK

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.

INNOVATION

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

INTEGRITY

We are committed to the achievement of business success with integrity. We are honest with
consumers, with business partners and with each other.
COMPANY HISTORY

HISTORY

1884
1896
Early1900
s
1919

Birth of Dabur
Setting up a manufacturing plant
Ayurvedic medicines
Establishment of research laboratories

1920

Expands further

1936

Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972

Shift to Delhi

1979

Sahibabad factory / Dabur Research & Development Centre (DRDC)

1986

Public Limited Company

1992

Joint venture with Agrolimen of Spain

1993

Cancer treatment

1994

Public issues

1995

Joint Ventures

1996

3 separate divisions

1997

Foods Division / Project STARS

1998

Professionals to manage the Company

2000

Turnover of Rs.1,000 crores

2003

Dabur demerges Pharma Business

2005

Dabur aquires Balsara

2005

Dabur announces Bonus after 12 years

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

2008

Acquires Fem Care Pharma

2009

Dabur Red Toothpaste joins 'BillionRupee Brand' club

2010

Dabur makes its first overseas acquisition

2011

Dabur enters professional skin care market

2011

Dabur India acquires 30-Plus from Ajanta Pharma

2012

Dabur crosses Billion-Dollar Turnover Mark

FOUNDER AND LEADERS

FOUNDING THOUGHTS

"What is that life worth which cannot bring comfort to others"


THE DOORSTEP 'DAKTAR'
The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician
tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people
in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing
natural cures for the killer diseases of those days, like cholera, malaria and
plague.

Soon the news of his medicines traveled, and he came to be


known as the trusted 'Daktar' or Doctor who came up with
effective cures. And that is how his venture Dabur got its

The mission continues...

name - derived from the Devanagri rendition of Daktar Burman.


Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a
wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and
ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small
Calcutta house, to a household name that at once evokes trust and reliability.
MILESTONES
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 come a long way in popularising
and making easily available a whole range of products based on the traditional science of
Ayurveda. And Dabur 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...
Milestones To Success

1884 - Established by Dr. S K Burman at Kolkata


1896 - First production unit established at Garhia
1919 - First R&D unit established
Early 1900s - Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first
Company to provide health care through scientifically tested and automated production of
formulations based on our traditional science.
1930 - Automation and upgradation of Ayurvedic products manufacturing initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda
Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of
Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand
in India.
1949 - Launched Dabur Chyawanprash in tin pack
Widening the popularity and usage of traditional Ayurvedic products continues. The ancient
restorative Chyawanprash is launched in packaged form, and becomes the first branded
Chyawanprash in India.
1957 - Computerisation of operations initiated
1970 - Entered Oral Care & Digestives segment
Addressing rural markets where homemade oral care is more popular than multinational brands,
Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is
made available at affordable costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978 - Launches Hajmola tablet
Dabur continues to make innovative products based on traditional formulations that can provide
holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and
launched as the popular Hajmola tablet.
1979 - Dabur Research & Development Centre (DRDC) 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 medicines

1989 - Care with fun


The Ayurvedic digestive formulation is converted into a children's fun product with the launch
of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary
item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncology segment
1994 - Leadership in health care
Dabur establishes its leadership in health care as one of only two companies worldwide to launch
theanti-cancer drug Intaxel (Paclitaxel). Dabur Research & Development Centre (DRDC)
develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice
1996 - Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of Real Fruit
Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural
fruit juices made to international standards, Real becomes the fastest growing and largest
selling brand in the country.
1998 - Burman family hands over management of the company to professionals
2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across
a span of over a 100 years, Dabur has grown from a small beginning based on traditional health
care. To a commanding position amongst an august league of large corporate businesses.
2001 - Super specialty drugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into
the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the
UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs
specifically for European and American markets.
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4
crore
2003 - Dabur demerges Pharmaceuticals business
Dabur India approved the demerger of its pharmaceuticals business from the FMCG business
into a separate company as part of plans to provider greater focus to both the businesses. With
this, Dabur India now largely comprises of the FMCG business that include personal care
products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business
would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a

subsidiary of Dabur India, would also be part of the Pharmaceutical business.


Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards, Dabur became
the first Ayurvedic products company to get ISO 9002 certification.
Science for nature
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur
India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to
produce saplings of rare medicinal plants that are under threat of extinction due to ecological
degradation.
2005 - Dabur aquires Balsara
As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home
products businesses, a leading provider of Oral Care and Household Care products in the Indian
market, in a Rs 143-crore all-cash deal.
2005 - Dabur announces bonus after 12 years
Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one
share for every one share held. The Board also proposed an increase in the authorized share
capital of the company from existing Rs 50 crore to Rs 125 crore.
2006 - Dabur crosses $2 bln market cap, adopts US GAAP.
Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US
GAAP in line with its commitment to follow global best practices and adopt highest standards of
transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million
Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million
from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other
securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and
acquisition plans in India and abroad.
2007 - Celebrating 10 years of Real
Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of
the brand. The new refined modern look depicts the natural goodness of the juice from freshly
plucked fruits.
2007 - Foray into organised retail
Dabur India announced its foray into the organised retail business through a wholly-owned
subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in

the retail market in India with a chain of stores on the Health & Beauty format.
2007 - Dabur Foods merged with Dabur India
Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to
extract synergies and unlock operational efficiencies. The integration will also help Dabur
sharpen focus on the high growth business of foods and beverages, and enter newer product
categories in this space.
2008 - Acquires Fem Care Pharma
Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market.
Besides an entry into the high-growth skin care market with an established brand name FEM,
this transaction also offers Dabur a strong platform to enter newer product categories and
markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club
Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste
crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition
Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a leading
personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab
Dabur acquired 100% equity in Namast Laboratories LLC of the US for $100 million. This
marks Daburs entry into the fast-growing ethnic hair care products market in U.S., Europe and
Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours
Dabur launches Indias first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched
in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records
Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of hosting the
longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market
Dabur enters professional skin care market with the launch of OxyLife Professional Facial Kit,
created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal
Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com With this,

Dabur is the first Indian FMCG company to launch a dedicated online shopping portal for its
beauty products range. The portal will be the online gateway for consumers to know, understand,
buy and gift the exclusive Dabur Uveda range of skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma
Dabur India Ltd acquired Ajanta Pharmas over-the-counter energizer brand 30-Plus.
2011 - Dabur to enter Sri Lanka
Dabur India Ltdsets up new subsidiary in Sri Lanka Dabur Lanka (Pvt.) Ltd. The company will
establish a new export-oriented manufacturing facility for producing a range of fruit-based
beverages in Gampaha, north of Colombo.
2011 - Dabur enters Almond Hair Oil market
Dabur India Ltd launches Dabur Almond Hair Oil, a one-of-its-kind product that offers superior
nourishment for 100% damage-free hair.
2012 - Dabur crosses Billion-Dollar turnover mark
Dabur India Ltd surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal to end the
year with Net Sales of Rs 5,283.17 Crore.

MARKETING MIX OF DABUR


Marketing mix refers to the ingredients or the tools or the variables which the marketeer mixes in
order to interact with a market. It is a set of marketing tools that the firm uses to pursue its marketing
objectives in the target market. Marketing mix includes the following activities -product planning,
pricing, branding, packaging, channels of distribution, displays, physical handling, advertising etc.

All the activities listed above create what a marketeer offers to the market. It is through these that
market is created and managed. The above list of marketing mix elements was reclassified by
McCarthy into four categories popularly known as four Ps of marketing -: product, price, place and
promotion.

PRODUCT

PLACE

Product mix

Channel strategy

Packaging

Intermediaries

Labeling

Channel conflict

Product quality

Channel selection

Branding

Physical distribution

PRICE

PROMOTION

Price methods

Promotion mix

Pricing strategies

Advertising

Price policy

Sales promotion

Price changes

Personal selling
Publicity
Public relations

PRODUCT

The product is the physical good or service offered to the consumer. The product is the most
visible element of the marketing mix. When a firm introduces a number of products over
time gradually, its offerings become many. That is, the firm becomes a multi product firm.
Similarly, Dr. S. K. Burman started a small pharmacy in Calcutta in 1884 where he launched
his mission of providing health care products. Which was later made a full fledged company
Dabur (Dr. S. K. Burman) India Limited started with only few ayurvedic medicines. But now
it has a bigger portfolio of products of variety of brands like hair care, health care, baby care
& other different types of Home & Personal care products along with food and digestive
products. Further the company can increase the depth of an item in the line by adding new
variants. For example Dabur has added different flavours like orange and lime to its Glucon
D.
Daburs diverse product range is today manufactured in 9 manufacturing facilities within
India and 5 other worldwide. Dabur's Ayurvedic Specialities Division has over 260
medicines for treating a range of ailments and body conditions-from common cold to chronic
paralysis.
Over the past two years, Daburs product portfolio has been systematically overhauled
through re-launches and brand extensions, even as fresh forays have been made into new
categories such as hair, skin care and home care. Recently two new products, disinfectant
cleaner and kitchen cleaner under Dazzl brand. All these launches of new kinds of products
will help the company to capture the potential market arising from the growing needs of the
fast expanding market, especially the aspiring and affluent Indian household categories.
DABUR BRANDS ARE BROADLY DIVIDED IN TO SIX CATEGORIES:1)
2)
3)
4)
5)
6)

Health Care
Personal Care
Home Care
Ayurvedic Specialities
Foods
Guar Gum

The international range of Dabur includes:-

HEALTH CARE PRODUCT RANGE

Chyawanprash - health tonic, immune stimulator

Hajmola- tangy digestive aid, appetite stimulant

Hajmola candy - digestive candy with a punch


Pudin Hara/ Pudin Hara-G - instant relief from stomach disorders

Dabur Balm - quick-action pain reliever

Restora - restorative

Lal Tail - Baby massage oil - strengthening bones & muscles

Honitus syrup - cough syrup

Rheumatil gel - relief for arthritis, joint pains

Itch Care - itch reliever

Ring Ring - relief from ring worms

Back Aid - back pain reliever

Baby Olive Oil - Extra nourishing baby massage oil

Lavan Bhaskar Churan - Useful for indigestion & loss of apetite

Hingwastak Churan - useful for stomach ailments

Sitopladi Churan - treats cough & cold

HERBAL SUPPLEMENTS RANGE

Nature Care Isabgol - aiding bowel function

Nature Care CleanNClear / GreNeem - skin care, blood purifier

Nature Care Boswellia - smooth joint functioning

Nature Care Gymnema - blood sugar regulator

Nature Care Picrorrhiza - strengthens hepatic functionas and digestion

Nature Care Kutkin and Silymarin - supports liver metabolism

Nature Care Shankha Pushpi - maintains smooth functioning of nervous system

Nature Care Shatavari - supports immunity & builds body resistance

SKIN CARE PRODUCT RANGE

Natural Sandalwood Soap - refreshing daylong fragrance

Natural Neem Soap - deep cleansing and toning

Natural Aloe Vera Soap - soft and supple skin

Natural Beauty Soap - freshening and soothing the skin

Gulabari (Premium Rose water) - skin toner and refreshing fragrance

Boroglow - non-sticky Ayurvedic Anti-septic cream

Gulabari Face Pack - natural recipe for younger looking glowing skin

Vatika Fairness Face Pack enriched with the goodness of natural ingredients giving
your skin radiant fairness

ORAL CARE PRODUCT RANGE

Dabur Neem Toothpaste - anti-bacterial & anti-inflammatory action

Dabur Basil Toothpaste - refresher, removing plaque

Dabur Clove Toothpaste - analgesic action & fighting cavities

Dabur Red Toothpowder - herbal combination for strong teeth & healthy gums

Dabur Red Toothpaste - herbal combination for strong teeth & healthy gums

PRICE
Price is normally expressed in monetary terms. It is worth of a product or service in monetary terms.
Price is the value which a buyer passes on to the seller in lieu of the product or service provided.
Price is a crucial determinant of the fact whether the exchange between the buyer and seller should
materialize or not. While pricing the products three main factors should be kept in mind -:

1. Cost
2. Competition
3. consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend and marketing.
The entire product portfolio is also tweaked to include premium offerings such as more variants
under almost every category, like Dabur Vatika Hair Oil is available in 3 different versions .
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented company.
Across the whole organization the company have one definition of winning, and that means not just
growing, but growing completely. Over the last two years, Dabur has maintained its operating
margins through judicious price hikes across products and reduction in pack sizes.

The three main factors affecting the pricing strategies have been discussed below -:
I.

COST

One of the most important factor to take care while pricing is the cost costs set the floor for pricing
decisions. There are two types of cost variable cost and fixed cost. It is important that the price
should recover all costs including a fair return for undertaking the marketing effort and risk.

II.

COMPETITION

Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors selling
the same or similar products, the pricing freedom is considerably reduced. Its price must fall in line
with the competitors. Similarly Dabur India Limited also has many competitors. But Daburs top
selected competitors are:1.
2.
3.
4.
5.
6.
III.

Hindustan Unilever Limited


Proctor and Gamble
Pepsi co.
Colgate Palmolive
Godrej Industries
Marico Ltd. etc.
CONSUMER DEMAND

Dabur learned that the majority of Indian population tends to go towards the Indianised natural and
herbal products thus they made it their USP. Dabur is efficiently leading the market with this product
range, providing the customers with special products easily.

PLACE
Place in the context of marketing mix refers to a set of decisions that need to be taken in order to
make the products available to the customers for purchase and consumption. Making the products
available to the customers require development of channels of distribution and physical distribution
of products.

CHANNELS OF DISTRIBUTION

Channels of distribution refers to the path taken by the goods in their movement to the customers.
For instance, the toothpaste we use is manufactured in the factory of a company Dabur. But before it
reaches us it passes through the hands of many middlemen who help it come to you in right time, at
right place and in right quantity.

Daburs distribution network is recognised as one of its key strengths. Its focus is not only to enable
easy access to our brands, but also to touch consumers with a three-way convergence - of product
availability, brand communication, and higher levels of brand experience.

A Diagram explaining the channels of Distribution is given below

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

Clearing and forwarding agent (different regions)

Stockist A

Retailers

Retailers

Stockist B

Retailers

Retailers

Stockist C

Retailers Retailers

C O N S U M E R S

Supply Chain Management


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

MANUFACTURING PLANT
Dabur Foods has Number of products in its product line but its main area of interest or the product
on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured and tested.

PROCUREMENT & TRANSPORT

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

Constant updates on the procurement of materials and transport details

Production details and ingredient content information from the different personnel and
coordinating this activity

PACKAGING

Approval and coordination of the supply of packaging material to the production unit

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and forwarding
agents.
Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so
company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.
They charge Dabur for stocking the good and even Dabur dont mind doing so as it is a
measure of cost cutting as well as there is no need for gowdowns and maintenance.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to them as per their
order.

Stockiest has some sales men working under him, they are known as stockiest sales man.
Their work is to place the products in the market and take order from retailers and then
supply goods to them.

Sales man either take ready stock with them or they first take orders and then supply goods
later on.

There is a beat which is a schedule route of sales man, means sales man has to daily cover the
route as mention in the beat.

Merchandising, making products visible, pasting posters, putting banners, and seeing that
goods are properly placed in the retail outlets is also the duty of stockiest sales man.

Companies sales officer keeps a check on the stockiest and monthly report is also prepared
which is further analyzed by ASM & ZSM.
RETAILERS

Retailers are backbone of the company as they are the one who can take the product on new
heights or can bring it down to toes.

Stockiest supplies goods to retailers and tries Persuading retailers to give the brand special
displays (using merchandising tools) to get affective brand presence, and arranging it in more
noticeable manner.

Margin of retailers is always higher than stockiest.

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

Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail outlets making
its product available to the consumers across the country at

PROMOTION

Once the product has been manufactured, priced rightly and is distributed, the next task of the
marketer is to inform potential customer about the product and persuade them to buy the same. The
promotion element of marketing mix is concerned with activities that are undertaken to
communicate with both customers and participants in the channel of distribution such that sales
goals are realized. There are different promotional activities like-: Advertising, Sales promotion,
trade promotion, personal selling etc. but one of the most convenient and effective one that most of
the industries uses is the Advertising and Sales Promotion.

ADVERTISING
Advertising is a form of communication that typically attempts to persuade potential customers to
purchase or to consume more of a particular brand of product or service. Many advertisements are
designed to generate increased consumption of those products and services through the creation and
reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes
embed their persuasive message with factual information. Every major medium is used to deliver
these messages, including television, radio, cinema, magazines, newspapers, video games, the
Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company
or other organization.
Dabur has created the huge brand image and a vast product following by associating mega-names
like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150
crore just on the advertising of Real Fruit Juice and Real Active. So far the company has been
successful in this mission as the people now know the brand and ask for its products by name.
SALES PROMOTION

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

SALES PROMOTIONAL TOOLS OF DABUR FOODS

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

Sales Meetings

Samples/product sampling

Trade Fairs & exhibitions

Contests & Sweepstakes

Exchange Offers/buyback

Refund / Rebate

Price / Bonus Packs


PROMOTIONAL SCHEMES USED FOR STOCKIESTS

Encourage stockiest to participate in displays and sales contests

Higher Margins: Tries to give higher margins to stockiest so that they dont loose interest in
the product and can earn good profits after meeting all the expenses.

Sales Contests: Sales contest are held annually and which ever stockiest has the best sales
record a prize is given to him, like free holiday to the family etc.

Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.

Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some
money on the promotional schemes, like conducting a sampling activity.

Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.

Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by
the company for stockiest sales man so that they dont face any problem while placing their
products and taking orders from retailers.

Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.

Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once
a year.

Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and their
sales man.

Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.

Free danglers and posters for publicity.

Buyback: Dabur foods has a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS

Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.

Dealer loader: An incentive given to induce a retailer to purchase and display the products
of dabur.

Trade contest: A contest to reward retailers those sells the most product of dabur foods and
after a specific period they are rewarded.

Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like
danglers, posters, banners etc helps in promoting sales.

Push money: Also known as "spiffs". An extra commission paid to retail employees to push
products. This kind of practice dabur hardly follows.

Free samples: Dabur foods gives free samples are given to retailers so that they can try that
product if the product is new, or gives some discounts.

Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.

Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash
discounts if payment is made in cash.

Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.

Higher Margins: Retailer has the highest margins and dabur foods also have the same
criteria, and retailer can further sell the dabur product to consumer at discount keeping his
margin safe.

Allowances for additional shelf space: Company as such does not pay anything to retailer
but gives some additional benefits for giving them shelf space which is visible to customer
when ever they enter the shop.

Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising
dabur products. When ever the Stockiest sales man goes to take orders then he also
merchandises dabur products.

Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with
that.

Trade Allowance: Dabur comes with different types of trade discounts from time to time,
like sometime price discounts, sometimes gifts etc.

Free goods: Dabur gives free goods on the purchase of specific number of goods.

Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in
cash at the time of purchase.

Product sampling: Dabur organizes sampling activities for its products which are new, these
activities are generally at the place where footfall is very high.

Displays: Dabur tries to give special displays to the retailers, so that they can display their
products on that.

Point-of-Purchase Material: POP material is available in the form of stickers, banners,


displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible
purchase locations.PROMOTIONAL SCHEMES USED FOR CONSUMERS

Price deal: A temporary reduction in the price is given to consumer during some festival session
by dabur foods.

Price-pack deal: The packaging offers a consumer a certain percentage more of the product for
the same price (for example, 25 percent extra).

Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.

Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.

On-shelf coupons: Coupons are present at the shelf where the product is available.

Rebates: Consumers are offered money back, rebate at different point of time.

Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling


activities then they are given a discount coupon of products of dabur foods.

Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps
a special check on the displays and merchandising of dabur products.

Sampling Activities: Dabur organizes different sampling actives at different retail outlets.

Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.

Money Refunds: Customer can claim for refund of money if they face some problem with
the product.

Contest /demos: There are different contests where customers play games and win contests.
Festival Sales: Dabur foods come out with some special offers during festival seasons like
buy one get one free.

Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.

Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it
easier for customers to know about product line and choose the best out of that.