the dissertation topic on

‘‘Market Expansion Strategy Of Dabur With Special Reference To Dabur Chyawanprash for Rural Market Hapur’’

Submitted by: -

Submitted to:-

PALASH ROY
PGDM 3RD SEM, (BATCH 2008-10) Enrollment No: PG2K8 133 Email- palash.roy26@gmail.com

Prof. GOVIND NATH
PROFESSOR ITS, GHAZIABAD Email- nathgovind@rediffmail.com

CERTIFICATE

This is to certify that the Dissertation titled

‘‘Market Expansion Strategy

Of Dabur With Special Reference To Dabur Chyawanprash for Rural Market Hapur” submitted by Mr. Palash Roy, student of PGDM
(2008-10) in INSTITUTE OF TECHNOLOGY & SCIENCE, Ghaziabad for the partial fulfillment of the requirement of the POST GRADUATE DIPLOMA IN MANAGEMENT, embodies the bonafide work done by him under my supervision. I also declare that this summer training project is a result of his effort and no part of this project work has been published earlier for any degree or diploma for any institute or university.

Date:

Signature of the Mentor

ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual. Rather, it is an amalgamation of the efforts, ideas and co-operation of a number of entities. The compilation and presentation of this opuscule has bestowed me with an opportunity to show my gratitude to those subservient to it. I am highly indebted to my guide Prof. Govind Nath who has been the hallmark of this effort. Their guidelines made me comprehend the enigmatical portion of the subject and were the sole animating force that coerced me to meliorate my efforts without the support and guidance the project report would not have taken shape.

PREFACE

Management training has gained rapid importance only recently. Management was previously considered as an inborn art or talent. But in today’s fast developing word this view has been abandoned. To develop managerial capabilities and to supplement their theoretical knowledge with practical experience, the management students are required to go training in business organization. This study would not only help me as a management student to gain a deep insight of how an organization works but also practical usage of all management techniques that I have learnt during the course of my study. This project would also help me analyze the difference between the organizational realities and the theories that have been taught in my academic session and also gave me a real experience of the corporate world let me better understand how it function. It also taught me how to take every experience in the right and learn from each one. Finally the analysis feasible to be put to test in real life situations. I shall consider all my hard work worthwhile if this endeavor of mine is able to satisfy all those concerned and proves useful to anyone or for any further study in the future.

PALASH ROY

CONTENTS

1. ACKNOWLEDGEMENT 2. EXECUTIVE SUMMARY 3. OVERVIEW OF FMCG SECTOR IN INDIA 4. ABOUT DABUR  PRODUCT LINE  SWOT ANALYSIS OF DABUR  THE MARKETING MIX ANDSELLING PROCESS 5. THE MARKETING MIX
6. OBJECTIVE OF THE STUDY

7. RESEARCH METHODOLOGY 8. DATA ANALYSIS 9. RECOMMENDATIONS 10.COMPETITOR ANALYSIS 11.CONCLUSIONS 12.BIBLIOGRAPHY 13.QUESTIONNAIRE

1.

EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Chyawanprash. Pioneering role that it has played in the evolution of the categories it has had a presence in. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyse the marketing mix of Chyawanprash. The report also enlists various recommendations based on BCG Growth Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles. Dabur

OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a well-established distribution network, intense competition segments between and the low organised operational and cost. unorganised

Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power

and has a strong middle class base of 300 million.Around 70 per cent of the total households in India (188 million) resides in the rural areas. The total number of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 200102. With growing incomes at both the rural and the urban level, the market potential is expected to expand further.

Rural and urban potential

Rural-urban profile

Urban Population 2001-02 (mn household) Population 2009-10 (mn household) % Distribution (2001-02) Market (Towns/Villages) Universe of Outlets (mn) 53 69 28 3,768 1

Rural 135 153 72 627,000 3.3

Source: Statistical Outline of India (2008-09), NCAER An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets

ABOUT DABUR

A.COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers.

Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. B.

Dabur India Limited has marked its presence with some very 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.2233.72 Crore (FY07) 2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer Health Division (CHD) 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. 13 ultra-modern manufacturing units spread around the globe Products marketed in over 50 countries

 

Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India

C.

1884 Birth of Dabur 1896 Setting up a manufacturing plant Early Ayurvedic medicines 1900s 1919 Establishment of research laboratories 1920 Expands further 1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd. 1972 Shift to Delhi Sahibabad factory / Dabur Research 1979 Foundation 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 Dabur crosses $2 Bin market Cap, adopts 2006 US GAAP Approves FCCB/GDR/ADR up to $200 2006 million 2007 Celebrating 10 years of Real 2007 Foray into organised retail

2007 Dabur Foods Merged With Dabur India

D.

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 name - derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense The mission continues... 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.

E. "Dedicated to the health and well being of every household"

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 organization. We are intellectually honest in advocating proposals, including recognizing risks.

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

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

F.

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 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

G. Dabur has an illustrious Board of Directors who are committed to take the company onto newer levels of human endeavour in the service of mankind. The Board comprises of:

ViceChairman Dr. Anand Burman Chairman Mr. Amit Burman

Whole Time Directors

Mr. P.D. Narang Mr. Sunil Duggal

Mr. Pradip Burman

Non Whole Time Promoters, Directors

Mr. Mohit Burman

Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organisation he joined in 1995. Mr Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his Engineering Degree (Electrical & Electronics) from BITS, Pilani, and Sunil Duggal Dabur India Limited Sales Operation. In 1995 he came into the Dabur family, as General Manager (Sales & Marketing), of the Family Products Division with products like Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. Vatika was also launched during this period and is now the Company's second biggest brand. With his dynamic spirit and leadership abilities, he soon became Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he became the CEO of the Company - a professional with valuable experience to steer the company ahead in its growth plans. Business Management from IIM, Calcutta. His stint at Chief Executive Officer Wimco continued till 1994, with a break in between when he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM,

Spanning a career of over 20 years, Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer needs. Mr Duggal lives in Delhi with his wife and one child . Whenever he gets a break from his official responsibilities, Mr. Duggal likes to spend time at home with his family and an occasional round of golf.

H.

Good corporate governance and transparency in actions of the management is key to a strong bond of trust with the Company’s stakeholders. Dabur understands the importance of good governance and has constantly avoided an arbitrary decisionmaking 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 Meets all Corporate Governance Code requirements of SEBI

I. 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.

Our commitment to Environment 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 computercontrolled 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. Corporate Office Living a Green Heritage Kaushambi These are significant steps that can contribute to201010 world for coming Ghaziabad - a better generations. To whom we would like toUttar Pradesh, India bereft of nature. But bequeath a world not full of flowering and fruit bearing trees,Tel: animals, birds and humans living in good health and complete harmony. +91 (0120) 3982000 (30 Lines) +91 (0120) 3001000 (30 Lines) Kaushambi Corporate Office Registered Office 8/3, New Asaf Delhi Ali – Road, 110 002

Tel: +91 (011) 23253488

K.

DABUR WORLD WIDE Dabur's mission of popularising a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicine, nature-based 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 ;

M. PRODUCT LINE
Foods • Real • Real Activ • Hommade • Lemoneez • Capsico Health Care Baby Care • • • Dabur Lal Tail Dabur Baby Olive Oil Dabur Janma Ghunti

Health Supplements • Dabur Chyawanprash • Dabur Glucose D Digestives

• Hajmola Yumstick • Hajmola Mast Masala • Anardana • • • • • • Hajmola Hajmola Candy Hajmola Candy Fun2 Pudin Hara (Liquid and Pearls) Pudin Hara G Dabur Hingoli

Natural Cures • • • • • • • • • • Shilajit Gold Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Backaid Shankha Pushpi Dabur Balm Sarbyna Strong

Personal Care

Hair Care Oil • • • • Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla

Hair Care Shampoo • • • • Anmol Silky Black Shampoo Vatika Henna Conditioning Shampoo Vatika AntiDandruff Shampoo Anmol Natural Shine Shampoo

Oral Care • • • • Dabur Red Gel Dabur Red Toothpaste Babool Toothpaste Dabur Lal Dant Manjan

Dabur Binaca Toothbrush

Skin Care • Gulabari • Vatika Fairness Face Pack

Ayurvedic Specialities • Ayurveda • Ayurveda Vikas

N.

Dabur Amongst Top Three Most Respected FMCG Companies

Dabur Real Bags Gold In Reader's Digest Trusted Brand Awards Dabur Figures In Top Great Place To Work 2006 List

Dabur has been ranked amongst India's Most Innovative Companies by a Business Today-Monitor Group survey

Hajmola has been ranked 34th in India’s 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 India’s fruit juice brand Réal awarded the Reader’s 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.

Hajmola moves up 11 spots to take the 34th position among India's Top 100 Most Valuable Brands of 2008, released by 4Ps and

Besides, Dabur Foods has climbed up to take the 40th spot

ICMR

Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable (Company) Brands by Brand Finance

newu was voted the Most Admired New Retail Launch of the year at Images Retail Awards

Dabur India CEO Mr. Sunil Duggal was named Best Corporate Leader of 2008 at the B&E Leadership and Excellence Awards

Dabur India Ltd was ranked the Business Leader in the FMCG Personal Care Category at the NDTV Profit Business Leadership Award 2008

Dabur India Ltd CEO Mr. Sunil Duggal has been ranked among India's Most 'value'able CEOs by Business World

Dabur India Ltd has been listed among the Super 100 of India Inc, prepared by Business India

__________________________________________________________________________ _

5. SWOT ANALYSIS OF DABUR

STRENGTHS • Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialities) • Core knowledge of Ayurveda as competitive advantage • Strong Brand Image • Product Development Strength • Strong Distribution Network • Extensive Supply Chain • IT Initiatives • R & D – a key strength

WEAKNESS • Seasonal Demand( like chyawanprash in winter and Vatika not in winter) • Low Penetration(Chyawanprash) • High price(Vatika) • Limited differentiation (Vatika)

Unbranded players account for the 2/3rd of the total market(Vatika)

OPPORTUNITIES • Untapped Market(Chyawanprash) • Market Development • • Export opportunities. • Innovation • Increasing income level of the middle class • Creating additional consumption pattern

THREATS • Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo Karpin, HLL and Bajaj for Vatika Hair Oil) • New Entrants • Threat from substitutes (like Bryllcream for Vatika hair oil)

The Marketing Mix

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.

A Summary Table of the Marketing Mix
The following table summarizes the marketing mix decisions, including a list of some of the aspects of each of the 4Ps. Summary of Marketing Mix Decisions Product Functionality Appearance Quality Packaging Brand Warranty Service/Suppor t Price List price Discounts Allowances Financing Leasing options Place Promotion Channel members Advertising Channel motivation Market coverage Locations Logistics Service levels Personal selling Public relations Message Media Budget

DABUR FOODS SELLING PROCESS  Dabur food process of selling starts from stockiest.

 C&FA dose not have any process to play in the process of selling of dabur foods products. They are just Clearing & Forwarding Agents they store the manufacturing products and then supply it to stockiest.  Stockiest pay the money to dabur foods through demand draft.  Stockiest further sells the products to retailers.  Retailer finally sells the products to consumers. MARKETING HOW DABUR FOODS IS USING MIX Product Appearance: Dabur tries to make its products appear very attractive. Quality: Quality of the product is really unmatchable as it is tested number of times and its products are processed using very advanced machinery and technology. Packaging: Dabur products packaging is done in such a way that its juices does not get expired before 6 months inspite of perishable products. Brand: Dabur itself is a very reputed and well known brand in the market and its Real juice is 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 foods provide full support to its stockiest, retailers and consumers, what so ever the problem is

Price List price: Dabur decide its 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 gicen to stockiest sales man if he acives 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 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 ease. Locations: Dabur foods 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.

Critique of selling
In theory, the purpose of selling is to help a customer realize his or her goals in an economic fashion. However, in reality this is not always the case. Customers can be influenced to purchase a product or service that initially was not of interest to them. Some salespeople are trained in the art of selling customers things they don't need. Take for example the purchasing of a car: a consumer may have a set of cars in mind (called an evoked set) that she feels match her needs, wants and budget. She may seek the advice of a salesperson given that a salesperson can help her realize the right car given those criteria. This can be a socially useful function; salespeople have specialized knowledge of products that can help consumers make an informed

decision. However, a salesperson may also talk a consumer into purchasing a more expensive or perhaps larger car then she needs or can afford. In this context, the salesperson may have usefully helped the customer re-evaluate her needs, thereby establishing a new set of appropriate choices among which included the newer or large car. This again would be a helpful and useful service provided by the salesperson. However, it is sometimes the case that customers purchase a product or service that was not initially intended and remains an inappropriate purchase after the fact. On the other hand, the consumer in this scenario can be held partially responsible for the inappropriate purchase; indeed, "A fool and his money are soon parted." (P.T. Barnum, English proverbs)

This dysfunctional behavior is encouraged by: Incentives of salespeople to increase their total number of sales, especially where retailers keep track of sales or offer commission-based salaries  Incentives from the manufactures of products or the companies of service providers to salespeople to sell their products where other similar products offered by competitors are offered  The incentive to sell a customer a product that is in need of being cleared out, despite the fact that a customer may be better to wait for the new product

B.

Channel Of Distributions

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A

Stockist B

Stockist C

Retailers

Retailers

Retailers

Retailers

Retailers Retailers

CONSUMERS

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 retailers. This was the basic Channel of Distribution used by Dabur Foods, now I will throw light on each channel of distribution of Dabur Foods.

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 company’s 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 production unit

the supply of packaging material to the

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 don’t mind doing so as it is a measure of cost cutting as well as there is no need for gowdowns and maintenance.  For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in Mohan Nagar, here all goods which dabur foods hare kept here.

C. 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.  In Noida Dabur has 1 stockist, and in Ghaziabad 1

D. 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.

 Classification of outlets in different type of markets is different according to their sales volume. TYPES OF RETAILS OUTLETS Class A B C Average Monthly Business Above 10,000 5,000-10,000 Upto 5,000

 Margin of retailers is always higher than stockiest.  Retailers are the one 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 ease.

E. TYPES OF RETAIL MARKET The retail market can be classified on the basis of magnitude of retail.

SCATTERED MARKET Lesser no. of outlets, and Extensive outlets BLOCK MARKET Large no. of retail outlets in chunk SUPER MARKET Through their superior information ,logistical systems and buying power deliver good service and immense volumes of products at attractive prices. CHAIN OUTLETS Having more than one key outlet all across with a single control unit and central purchasing strategy

7. THE FUTURE FOR DABUR Tapping the world markets: Dabur India, under its new brand architecture, has five power brands under its portfolio with distinct offerings — Vatika, a herbal beauty brand with products like Vatika Shampoo, Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with products like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and has products like Real Fruit juices, Lemoneez; and the recently launched Anmol which is a cross category value-for-money brand. Dabur has decided to take two of its five power brands — Dabur and Vatika — global through its Dubai-based arm Dabur India . And the Big B and Rani Mukherjee will help the company get a toehold in the world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore FMCG major has also decided to give a new impetus to its international food supplement brand, Nature4u, by now launching it in the burgeoning Gulf market. It is currently being sold only in UK and EU. “We have drawn an aggressive plan to launch Dabur and Vatika globally, starting from the Middle East , GCC and SAARC countries. We expect our market share to double within two years in the 10 countries we will focus on initially,’’ said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Nigeria. To develop Dabur International as its major overseas hub to service all markets Bangladesh, Pakistan , Egypt and

except Russia , the company is setting up a new plant which is expected to be ready in a year. Dabur International already has a plant in Jabel Ali to both package products sourced from India and produce some local variants. Dabur India has been selling its product in Dubai and GCC countries since 1992 through a franchise — Redrock Limited. The company had acquired this franchise last year at investments of about USD five million. Growing market share: While there is no doubt that Dabur now has a presence in several product categories ranging from hair care to oral care to home care to health supplements to juices and even soaps, it is also true that in some of these segments its market share is very low and trails the market leader by a huge margin. For instance, Dabur only has a 6% market share in shampoos against HLL’s 53%, and a 12% share in the oral care segment against Colgate’s 46%. Company officials believe that low market share means that there are substantial growth opportunities even if these categories do not grow. “Our market shares are low in some segments. This gives us opportunity to penetrate these categories,’’ says Mr Narang. Drivers of growth: For the future, Dabur has identified foods, home care products, skin care and OTC health care products as its growth engines. The company plans to ramp up its home care business and in the food category it is looking at expanding its Hommade range of cooking pastes and purees. In the skin care segment, the company launched the Dabur Anmol cold cream last year and its Vatika honey and saffron soap is currently under test launch.

Expansion in south India: Dabur is looking at expanding its business in south India, which currently accounts for around 15% of its total sales.

Objectives of the Study:-

• To understand the demand pattern of Dabur Chyawanprash products in the rural market. • To know the amount of household income spent on the consumption of FMCG products of Dabur. • To understand the image of the products in the eyes of the consumers. • To analysis market petition strategy of Dabur for rural market.

Research Methodology
Data collection Sample unit: 1) working people (including men & women) & housewife 2) college students 3) school students 4) senior citizens 5) Retailer Sample size:
1. 2. 3. 4. 5.

working people & housewife: 30% college students: 25% school students: 20% senior citizens: 10% Retailer :10%

Sampling techniques: Judgmental sampling techniques used. Sampling region: Sampling region will be HAPUR of Uttar Pradesh. Data collection method:

1. Primary data: It will be collected with the help of a self administered
questionnaire.

2. Secondary data: it will be collected with the help of books, research
papers, magazines, news papers, journals, internet, etc.

Research instruments: Questionnaire design: As the questionnaire is self administrated one, the survey will be simple and user friendly. Words used in questionnaire will be readily understandable to all respondent. Also technical jargons will be avoided to ensure that there is no confusion for respondents.

Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS Software.

8 DATA ANALYSIS DABUR CHYAWANPRASH

1. AWARNESS LEVEL

2. PREFERRED BRAND

3.SATISFACTION LEVEL

4. REASONS FOR SELECTING A PARTICULAR BRAND

5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

6. UNAVAILABILITY OF PREFERRED BRAND

7. PREFERRED PACK SIZE

8. REASON TO SELECT PREFERRED PACK SIZE

9. FREQUENCY OF PURCHARE

60 50 40 30 20 10 0 ONE MONTH TWO MONTHS SIX MONTHS
PERCENTAGE

10.

11.

RETAILER SURVEY RESULTS DABUR CHYAWANPRASH 1. Which brands of Chyawanprash do you stock?

2.Out of these which are the most preferred?

3. According to you what are the reasons for customers’ preferences?

4.What is the profile of your typical consumer?

5.What schemes are you offered by the companies?

6.What schemes does a consumer prefer most?

7.According to you, does in-store advertising have an affect on the consumers’ preference?

8.Do a change in price affect their preferences?

RECOMMENDATIONS
   

Focus on growing core brands across categories. Reaching out to new geographies, within Hapur area. Improve operational efficiencies by leveraging technology. Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.

 

Provide consumers with innovative products within easy reach. Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. It could have hair care experts to solve hair problems.Services could include dandruff treatment, straightening of hair, treatment for split ends,etc.

Position Dabur Chyawanprash as not more of a medicine but as something which is necessary for health.

More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an initiative to occupy shelf space.

COMPETITOR ANALYSIS The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Himani, which together with Dabur have about 85% of India's domestic market. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%. We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows:

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo.Its Chyawanprash has a market share of 10%. Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). The Himani Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with

toiletries and cosmetics, but also provides Chyawanprash and other health products.Its market share is 12%.

B. STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever busy housewives and the aged.

For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient. For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy.

TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids .This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads compliment each other and connect very well with the targeted consumers

POSITIONING "Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By using a natural language instead of scientific language it is able to connect with the consumers and is able to achieve a better positioning in the minds of the Indian health conscious consumer. A category like Chyawanprash for instance needs to understand that in employing the category language it loses any chance of expressing its own benefit distinctively. Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through antioxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveys this health conscious holistic view of the product. Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection, processing and quality control of right herbs along with scientific and clinical studies – makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a trusted brand and therefore do not need to think twice before making a purchasing decision.

C. MARKETING MIX OF DABUR CHYAWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as followed: • Product • Price

• Place Product • Product Variety • Quality • Design • Features • Brand Names • Services • Promotion Price • List Price • Discount • Financing Schemes • Credit Terms Promotion Place • Channels • Location • Inventory

• Advertising & Promotion • Public Relations • Sponsorships • Internet Marketing

D. PRODUCT Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users. Ingredients of Dabur Chyawanprash

Vishwast Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts.

• Special Vishwast fortified with additional health beneficial herbs like Keshar, Akarkara etc.

Packaging:

n The figure above shows the evolution of the packaging of Dabur Chyawanprash. Dabur continuously innovates the package and branding of its chayawanprash. It launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded Chyawanprash in India. Later Dabur came out with its new packet of Chyawanprash with Amitabh Bachchan as their brand ambassador. It also received “Brand Relaunch of the Year “award from IMA. Available in: Dabur Chyawanprash is available in three sizes to cater to the needs of different types of people.

1. One kilogram pack 2. 500 gram pack 3. 250 gram pack

PRICE The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses second degree price discrimination i.e more the quantity, lower the price. 1kg 500gms 250gms 62.00 Rs.195.00 Rs.110.00 Rs.

PRICE/QUALITY MATRIX

Price→ Quality ↓ Luxury Segment High Ideal Penetration DABUR CHYAWANPRA SH Overpriced Middle Make The Low Sale Run and Unhappy Customers Average Real Bargain Cheap Goods For Premiere Offering High Middle Low

PLACE Dabur has a very wide distribution of its products through 1.6 million retail outlets and 50 C & F agents all over India who distribute products to the retailers. A distribution of C & F agents and manufacturing locations is given below.

Dabur’s distribution network extends beyond India in the following countries as well: Distribution Network
• • • • • •

Central, North & South America Australia Asia Middle East North & South Africa East & West Europe

PROMOTION The main form of promotional activities of Dabur chyawanprash are concentrated towards advertising and it has neglible sales promotional activities.

Advertising Nothing can happen without establishing the brand’s heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mouldable and fluid and the consumer’s sophistication level is low. Dabur chyawanprash is advertised on print media as well as on television. The company has launched two ads, one each with Amitabh and Vivek, in national electronic media followed by a series of print media campaign directed towards creating awareness to educate people about the holistic benefits of Chyawanprash.The ads have been created by McCann Ericsson and the company would be spending close to Rs 10 crore in promotional campaign this year. The ads would also be translated in Bengali. These advertisements are supposed to target the old and the younger generation respectively Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian cricket team

11. CONCLUSIONS The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts. the market. The consumer’s patriotic love for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use in the average household here in lies the great opportunities. Within the market, it is safe to conclude that dabur has hit off ratherwell with the masses. dabur has clearly lost it head start advantage and thereby acquiring just 35% of the market share while others enjoys rest of the market share. This could be well attributed to dabor successful ATA (Availability, Taste and Affordability) marketing module, the attributes most rated by the consumers. Lack of publicity has hampered the growth progress of the brand so aggressive advertising is needed to promote Chyawanprash and vatika hair oil brand .The brands such as that of Chyawanprash by vednath, market very soon. As the strategies of the companies keeps on changing, be it in Chyawanprash industry, a company has to create perceptions and cover them into realities. It is an expensive proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget , Many food companies including Dabur got benefited from it . On the analysis of survey it was Chyawanprash with its ‘sonacahndi, ‘Minutemade’ and also US food giantssDel Monte are ready to hit the Chyawanprash

found that target Market of Chyawanprash want quality benefit rather then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand .

12. BIBLIOGRAPHY Books: Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane Keller Websites: www.google.com www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com

13 CONSUMER QUESTIONAIRE-DABUR CHYAWANPRASH Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for Chyawanprash. Any information provided by you will strictly be used for Academic Purpose. 1.Which brands of Chawanprash are you aware of? • Zandu • Himani • Baidyanath • Dabur 2.Which brand of Chawanprash do you use? • Zandu • Himani • Baidyanath • Dabur 3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)? • 1 • 2

• 3 • 4 • 5

4.What are the primary reasons for which you use this particular brand? • Health • Brand Loyalty • Taste • Price 5.How did you get to hear about this brand? • TV • Internet • Word of Mouth • Print 6.If your brand is not available you would..? • Purchase another brand • Wait for it to be available • Go for a substitute • Buy what is offered by the retailer

7.Which pack size do you prefer? • 1 kg • 500 gm • 250 gm 8.On what parameters do you choose this pack size? • Availability • Price • Family size • Storage

9.How often do you buy? • Once a month • Once in two months • Once in six months 10.Are you satisfied with your brand? • Yes • No

11) Please [√] the following attributes based on importance, which purchasing a

FMCG products. Attributes Product Specific Lowest price Offers running Price discount Retail brand Product quality Not so important Important Must have

RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Chyawanprash category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only. 1.Which brands of Chyawanprash do you stock? • Zandu • Himani • Baidyanath • Dabur 2.Out of these which are the most preferred? • Zandu

• Himani • Baidyanath • Dabur 3.According to you what are the reasons for customers’ preferences? • Brand loyalty • Price • Availability • No reason

4.What is the profile of your typical consumer? • High income • Middle income • Low income 5.What schemes are you offered by the companies? Price discounts • Buy one get one free • Others 6.What schemes does a consumer prefer most? • Price discounts • Buy one get one free • Others

7.According to you, does in-store advertising have an affect on the consumers’ preference? • Yes • No 8.Does a change in price affect their preferences? • Yes • No 9. In how many days you receive the product after placing the order? a. One week b. Two weeks c. Monthly

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