A PROJECT REPORT ON

“MARKETING STRATEGY OF DABUR

CHYAWANPRASH”

Submitted in the fulfillment of the requirement of Master of

Business Economics course of Guru Nanak Dev University.

By
KULBHOOSHAN SINGH
Roll No – 883152, Batch- 2008-2010

Under the guidance of

Mr. ASHOK ASTHANA
Lecturer- New Delhi Institute of Management

New Delhi Institute of Management

NEW DELHI -110060
ACKNOWLEDGEMENTS

1
I take this Opportunity to express my heartiest gratitude to New Delhi Institute of
Management for permitting me to undertake this research and supporting me during this
research and otherwise also.

I would like to thanks Mr. Ashok Asthana who not only played the role of my Philosopher
and Guide but also mentored me at every stage of my project work. I would like to extend
my heartily thanks to entire Faculty members of MBE department for their constant
cooperation and support to take decision during the course of my research. I would also like
to thank my parents for their support and blessings without which this project could not
have been completed. Indeed I shall remain ever grateful to them

I am also thankful to college library and computer laboratory management staffs for their
constant support.

The experience I gained during this research project is of immense importance to me

academically and more so professionally.

KULBHOOSHAN SINGH

DECLARATION

2
I, hereby state that this project report submitted by me in fulfillment of the requirements of
the MBE (Masters of Business Economics) is an original research work carried out by me
under the guidance and supervision my faculty guide , Mr. Ashok Asthana. This work or
any part of it has not been previously submitted for a degree MBE.

KULBHOOSHAN SINGH

Place:

Date:

CERTIFICATE

3
I hereby certify that this dissertation entitled “MARKETING STRATEGY ON DABUR
CHYAWANPRASH” is based on an original project study conducted by Mr.
KULBHOOSHAN SINGH under my guidance. This has not formed basis for the award of
any other Degree/Diploma of the institution or any other University.

Guide
Mr. Ashok Asthana
Place: New Delhi
Date:

EXECUTIVE SUMMARY

4
This report aims at analyzing and reporting about the marketing strategies of Dabur India
Ltd (DIL) for its brands Dabur Chyawanprash.. 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 then DABUR has invested heavily in
product development, clinical studies and Consumer awareness. The product is essentially a
health supplement.

The prime aim of this report is not to analyze the overall marketing mix or the marketing
strategy of Dabur India Ltd, but this can be regarded as an attempt to analyse the marketing
mix of Dabur Chyawanprash. The report also enlists various recommendations based on
BCG Growth Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT
Analysis etc.
For the purpose of study this topic was selected as today the health concern is the most
important concern and this may affect the other related things also. This analysis has been
done on the basis of the information gathered from the questionnaire company website and
other online resources and books and articles. For the purpose of the data collection the
geographical area of DELHI was chosen and the consumer and retailer base were selected
on the basis of convenience which is a part of non probability sampling, with the help of
questionnaire, observation and direct contact the data was collected and after collection it
was properly analyzed and after analysis proper statistical tools were applied to generalized
the result. This study is fruitful for both the company and the researcher as it can formulate
a basis of decision making and via this project important knowledge base has been created
and also this would help in mending the gap between theoretical and practical knowledge.

TABLE OF CONTENT

Chapter -1 Introduction 8
1.1 FMCG Sector Overview
5
 1.2 Company Overview
1.3 Important Dates
1.4 Product Line of Dabur
1.5 Objective of the study
1.6 Scope of the Study
1.7 Limitations of the study
Chapter-2 Literature Reviewed & Theoretical Framework 18

2.1 Literature Reviewed

2.2 STP Analysis of Dabur Chyawanprash
2.3 Marketing Mix of Dabur Chyawanprash
2.4 Competitor Analysis of Dabur Chyawanprash

Chapter – 3 Research Methodology 30

3.1 Introduction of Concept

3.2 Sampling Design
3.3 Data Collection

Chapter – 4 Application of Statistical tools 33

4.1 Financial Report

4.2 Correlation analysis application

Chapter –5 Findings, Conclusions & Recommendations 38

5.1 Findings
5.2 Conclusions
5.3 Recommendations
5.4 SWOT Analysis
Annexure 64
Bibliography 70
List of tables and charts 72

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 CHAPTER - 1

INTRODUCTION

1.1 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 between the organised and

7
unorganised segments and low operational cost. Availability of key raw materials, cheaper
labour costs and presence across the entire value chain gives India a competitive
advantage.

The FMCG market in INDIA is set to treble from US$ 11.6 billion in 2006 to US$ 33.4
billion in 2015. Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, wash etc in India is low indicating the untapped
market potential. Increasing 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) reside in the rural areas. The total number of rural households is 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 2001-02. 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 Rural

8
 Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 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.

1.2 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 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

9
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. 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 over

1.3 IMPORTANT DATES

1884 - Birth of Dabur

1896 - Setting up a manufacturing plant

1900 - Ayurvedic medicines

1919 - Establishment of research laboratories

1920 - Expands further

1936 - Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 - Shift to Delhi

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1979 - Sahibabad factory / Dabur Research 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

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

1.4 PRODUCT LINE

Foods
 Real
 Real Activ
 Homemade
 Lemoneez
 Capsico

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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
 Pudin Hara (Liquid and Pearls)
Natural Cures
 Shilajit Gold

 Nature Care

 Sat Isabgol

 Ring Ring,Shankha Pushpi

Personal Care
Hair Care Oil

 Amla Hair Oil

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  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 Toothpaste

 Babool Toothpaste
 Dabur Lal Dant Manjan
 Dabur Binaca Toothbrush

Skin Care

 Gulabari
 Vatika Fairness Face Pack

Ayurvedic Specialities

 Ayurveda
 Ayurveda Vikas
 Ayuveda

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 1.5 OBJECTIVE OF THE STUDY

Following are the major objectives of study:-

1. To conduct a in depth research of STP and SWOT Analysis for Dabur by evaluating the
consumer buying behaviour.

2. To evaluate the brand performance by survey of target audience and

distributors/wholesalers.

3. To study the problems faced by Dabur.

4. To understand the demand pattern of Dabur Chyawanprash products in the market.

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5. To understand the image of the products in the eyes of the consumers.

1.6 SCOPE OF THE STUDY

The scope of this research study is very wide as it covers a wider horizon. It covers the
selected sample which in a way represents common population also it covers the FMCG
giant DABUR. Though this report can’t be generalized to every geographical region but still
it can formulate an important basis of decisions .It takes into account the general perception
of people who are consumers and at the same time it tries to cover all those area which may
prove to be useful for the company also it provides a glimpse of the characteristics on which
a company should concentrate in order to increase its market share. Since this work
revolves around the marketing strategies of Chyawanprash so it ultimately covers both the
marketing part and at the same time it also concentrates upon how the product can prove to
be beneficial for the consumer.

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 1.7 LIMITATIONS OF THE STUDY

Following may be regarded as important limitations of the project report:

 Lack of Universal Application: - Since the study had been conducted only in a
selected region hence the applicability of the study in different region and consumer
products are restricted.
 Probability Based Study: - Study is being done with the aid of Convenience
sampling. Hence the entire customers had not been considered for their feedback
and the inference drawn on the basis of selected sampling.
 Lack of Time – It can be considered as one of the important limitation
 Busy schedule of the Respondents: - Walk in respondents were busy with their
schedule and hesitate to cooperate with the researcher and because of their rushing
to home or office, they had completed the questionnaire quickly which may yield
some inherent errors.

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 CHAPTER -2

LITERATURE REVIEWED

17
 &

THEORTICAL FRAMEWORK

2.1 LITERATURE REVIEWED

MATHUR P. & GUPTA S.K: “Preventive Effect of Chyawanprash Against Steroid

Induced Cataract”; International Journal of Human Genetics; January 1998: Page
No; 134-137
The anti cataract potential of Chyawanprash, a popular herbal formulation of India was
investigated in hydrocortisone-induced cataract in the developing chick embryo. Aqueous
extracts of Chyawanprash (3% and 10%) were applied at 3, 10 and 20 h after
hydrocortisone administration. The incidence of advanced opacity (stage 4 and 5) was 33%
after treatment with 3% extract, and 16.5% after treatment with 10% extract, compared with
96.6% in the control group.

Ojha, J: “Chyawanprash is a Classical Ayurvedic Formulation”: Journal of Vedic to

Genomic Era”: Year- 2003: Page No. 282-284
In the changing healthcare scenario, the role of ancient healthcare systems like Ayurveda is
an emerging reality. Chyawanprash is a classical Ayurvedic formulation. It imbibes all the

18
philosophical and scientific virtues of Ayurveda. Chyawanprash differs from rest of other
products on two accounts. Firstly, it underwent as a formulation, a rigorous scientific
scrutiny employing widely acceptable tools of investigation. Secondly, it is backed by a
phenomenal business success and popularity. Dabur has contributed a lot on both these
accounts. Thus, Chyawanprash stands before us, as a convergence of philosophy, science
and business with a tremendous application value. This book is designed to tell all about
Chyawanprash – excepting its well-known business dimensions.

RASTOGI S. & BALA S: “The Dynamic Effect of Dabur Chyawanprash” Journal of

Indian Pharmaceutical Sciences: Year- 2004: Page No.; 53-57
This article is dedicated to medicinal use of Chyawanprash. It is a well known ayurvedic
formulation claimed to be an immunomodulator and is useful in the treatment of chronic
conditions such as pulmonary tuberculosis, asthma and cough. It is also widely used as a
food supplement for strength and energy. It maintains youthfulness by renewing tissues and
counterattacking degeneration. It has been reported to contain proteins which play an
important role in fundamental processes of tissue formation, regeneration and function.

BANSAL & NITIN: “Traditional medicinal formulation Chyawanprash - A review”:

Indian Journal of Traditional knowledge: Vol. 5(4) Oct – 2006: Page No; 484 –488.
This article highlights the benefits of Chyawanprash. Chyawanprash is a household remedy
in northern India, popular for its nutritional value. In Ayurveda, Chyawanprash is classified
under the category of Rasayana, which aims at maintaining physique, vigor and vitality,
while delaying the ageing process. It is believed that Chyawanprash helps not only in
maintaining homeostasis but also increases resistance of the body. Chyawanprash is
prepared by incorporating around 50 herbs including Amla, the richest source of vitamin C.
Herbs used in the preparation of formulation are boiled in water, then dried extract is
combined with honey followed by addition of aromatic (like cardamom, cinnamon, and
clove) herb powders. The finished product, which has consistency of a fruit jam, is sour and
spicy in taste.

Yadav, J.S., Thakur S. : “Chyawanprash: A Genoprotective agent for bidi smokers”

International Journal of Human Genetics: year 2003: Page No. 33-38.

19
Genoprotective efficacy of Chyawanprash (Dabur) was investigated against tobacco smoke
on the somatic chromosomes of 25 male bidi smokers.25 individuals matched with regard to
age, sex and social status constituted the control. 20 gms of Chyawanprash (Cp) was fed to
bidi smokers for 2 months, twice a day. Bidi smokers were compared with Cp-fed bidi
smokers. Mitotic index (MI), chromosomal aberrations (CA), sister chromatid exchanges
(SCE) and satellite associations (SA) were analyzed. In Cp-fed bidi smokers as compared
with bidi smokers all the parameters showed a significant decrease (P<0.01). The frequency
of CA (1.00)practically came down to the level of controls (0.88)indicating that
Chyawanprash can minimize the genotoxic risk caused by mutagenic agents present in
tobacco smoke.

2.2 STP ANALYSIS OF DABUR CHYAWANPRASH

STP analysis stands for segmentation, targeting and positioning analysis

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

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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. The
company is trying to achieve this through its promotion activities by making Amitabh
Bacchan, Vivek Oberoi and MS Dhoni as brand ambassador. 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.
Although Big B provided huge equity to the brand, the elderly ambassador further
reinforced the perception that the product is for older people. To break this perception,
Dabur has come out with a new campaign featuring the new ambassador MS Dhoni. Dhoni
is expected to make the brand attractive to the younger generation. The current success of
Dhoni as a cricketer and as a captain gives added advantage to the brand.
Dabur has done more than just a new communication. The brand has also changed the
packaging. The new packaging with lot of red color symbolizes the activity and alertness.
The bottle shape also has been made more modern. Chyawanprash also has a new logo
which also reinforces the new targeting.

POSITIONING

"Andar se strong”: Dabur Chyawanprash has the tag line " Zaroorat Hai " 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 anti-oxidant property,
improving lung function, fighting respiratory infections & building resistance to disease.
The brand conveys this health conscious holistic view of the product.

21
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.

2.3 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, the 4 Ps of marketing mix is discussed with
respect to Dabur Chyawanprash. The mix shall be analyzed as followed:

 Product
 Price
 Place
 Promotion

Product Price Promotion Place

22
 Product Variety List Price Advertising & Channels
Promotion
Quality Discount Location
Public Relations
Design Financing Inventory
Schemes Sponsorships
Features
Credit Terms Internet
Brand Names
Marketing
Services

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 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.

23
  Special
Vishwast fortified with additional health beneficial herbs like 
Keshar, Akarkara etc.

PACKAGING

The figure above shows the evolution of the packaging of Dabur Chyawanprash.

Dabur continuously innovate 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.  The brand has changed the packaging. The new packaging with lot of red color
symbolizes the activity and alertness. The bottle shape also has been made more modern.
Chyawanprash also has a new logo which also reinforces the new targeting.

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.

24
1kg Rs.200.00
500gm Rs.110.00
250gms Rs. 65.00

PRICE/QUALITY MATRIX

Price→

Quality High Middle Low

↓
Luxury Ideal For Penetration Premiere
Segment Offering
DABUR
High
CHYAWANPRASH

Overpriced Average Real

Bargain
Middle

25
 Make The Unhappy Customers Cheap
Sale and Run Goods
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

26
  Middle East
 North & South Africa
 East & West Europe

PROMOTION

The main promotional activities of Dabur Chyawanprash are directed toward advertising
and it has negligible sales promotional activities. 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 three ads, one each with Amitabh and Vivek,and Dhoni 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.

Advertisement showing Vivek Oberoi

27
 2.4 COMPETITER 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 2006 of about 650
million dollars per year, though only a fraction of that is involved with Ayurvedic
medicine. Dabur Chyawanprash has a market share of 61%.

28
CHAPTER – 3

29
 RESEARCH METHODOLOGY

3.1 INTRODUCTION OF CONCEPT

Research methodology is a way to systematically solve the research problem involving a

study of various steps that are generally adopted by a researcher in study his research
problem.
This includes:

Defending the research problem

Sampling design
Research design
Method of data collection
Analysis & interpretation

DEFINING THE RESEARCH PROBLEM:

30
Problem under the study was to analyze the marketing strategies of Dabur chyawanprash
and to suggest the company on the basis of same
3.2 SAMPLING DESIGN:

Sampling design i.e. non probability sampling was adopted as a definite plan for obtaining a
sample from the population. The sampling technique was a convenience sampling. The
convenience sample which were considered for the response includes the following
1) Working people (including men & women) & housewife
2) College students
3) School students
4) Senior citizens
5) Retailer $ Wholesaler
Sample size:

Sample size for customers were 100 in number and the universe comprised of all the
consumers within the geographical region of Delhi. Sample size for retailers were 100 in
number and the universe comprised of all the consumers within the geographical region or
Delhi

3.3 DATA COLLECTION

As the purpose of the project report is to analyze the marketing strategies of DABUR
Chyawanprash hence to analyze the selected topic properly data was collected both with the
help of primary as well as secondary sources.

Data collection method:

1. Primary data: It has been collected with the help of a self administered Questionnaire.
2. Secondary data: It has been collected with the help of books, research papers,
magazines, news papers, journals, internet, etc.

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.

31
In order to amplify the empirical findings from primary and secondary sources, a survey
was conducted both of consumers and retailers in order to gauge the market opinion.

The questionnaire consists of questions of different types and the pattern of questions was
as simple as possible. With every question, multiple choices were given and respondents
were asked to select one of them. The questionnaire technique was structured and not
disguised as the questions followed one pattern and reason behind the questionnaire was
stated properly. All the questions were directly related to the subject.

CHAPTER- 4

APPLICATION
32
 OF STATISTICAL TOOLS

4.1 FINANCIAL REPORT

Rs (Crore)

2008-2009 2007-2008 2006-2007 2004-2006

Turnover (including other income) 2439.23 1189.02 1159.02 1280.22

Profit before tax 425.00 113.44 113.44 165.02

Add: Provisions of earlier yr written back 0.068 0.20 0.20 -

165.02 113.44 113.44 165.02

Less: provision for taxation – current 47.48 40.57 8.75 13.00

: provision for taxation – Deferred 2.55 0.75 3.49 4.00

: provision for taxation for earlier yr 0.72 1.54 00.26 0.05

PROFIT AFTER TAX 372.84 315.92 101.14 147.97

33
Add: Balance in profit & loss account b/f

From the previous yr 223.23 229.15 66.12 81.12

- Transferred from debenture -- _ 2.50 --

- Transferred from investment _ _ -

Allowance Reserve 0.83

- Transferred from Investment _ _ - 1.82

Deposit Revenue

Profit Available for Application 696.07 545.07 169.76 231.74

APPROPRIATION TO:

General Revenue 90.00 70-00 22.50 25.15

Capital Revenue 0.01 0.40 1.56 -

Interim Dividend paid 64.88 64.80 17.17 28.63

Final Dividend – proposed 86.51 64.80 40.07 42.96

Corporate tax on Dividend 25.73 22.02 7.34 9.77

Balance carried over to Balance sheet 428.94 323.05 81.12 125.23

TOTAL 696.07 545.07 169.76 231.74

The statistical tool which has been applied to this project study is correlation analysis

34
 4.2 CORRELATION ANALYSIS APPLICATION

Application of Correlation analysis:

Suppose X represent the turnover &Y represents Profit after Tax

X Y X2 Y2 XY

2439.23 372.84 5949842.99 139009.66 909442.5

1189.02 315.92 1413768.56 99805.44 375635.19

1159.02 101.14 1343329.36 10229.29 117223.28

1280.22 147.97 1038963.24 21895.12 189434.15

∑X= 6067.49 ∑Y=937.89 ∑X2=10345902.1 ∑Y2= 270939.51 ∑XY=

1591735.12

N∑XY – (∑X) (∑Y)

r= -------------------------------------
√ N∑X2 _ (∑X) √ N∑Y2 _∑Y2

6366940.48- 5690516.846
= ----------------------------------------------------------------
√41383608.4_36814434.9 √1083758.04_879600.13

676423.634
= ---------------------

35
 2137.56 * 451.83

= 676423.634
--------------- = + 0.7
965813.73

Since the correlation is coming out to be positive and that too = + 0.70 that means there is a
relative high degree of positive correlation between turnover and profit after tax , this shows
as the turnover increase the amount on profit after tax also increase as with increase in
turnover new market is acquired new customer are taken in and hence with respect to
increase in customer base the amount of profit will increase. This can be regarded as good
for the company

36
 CHAPTER – 5

FINDINGS, CONCLUSION,

RECOMMENDATIONS

&

SWOT ANALYSIS

37
FINDINGS

38
 5.1 FINDINGS

CUSTOMER SURVEY RESULTS

1. Which brands of Chyawanprash are you aware of?

45
40
35
30
25
20
15
10
5
0
Zandu Himani Baidyanath Dabur

Interpretation: As per respondent, it is clear from the above chart that brand awareness
about Dabur is much higher than other brands. In other words, customers are very familiar
(Approx. 45%) with the Dabur Chyawanprash. And then, it is followed by Baidyanath
(with 20%), Zandu (With 25%) and then Himani having the least awareness among
respondents.

39
 2. Which brand of Chyawanprash do you use?

60

50

40

30

20

10

0
Zandu Himani Baidyana Dabur
th

Interpretation:- As per response of the respondents,it is ovious that Dabur brand has the
highest numbers of users (60%) and then Himani (13%) and baidyanath have
Approximately equal number of users and the Zandu has the least number of user’s i.e. 10%

40
3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)?

5
4.5
4
3.5
3
2.5 RATING(1-LOW 5-
HIGH)
2
1.5
1
0.5
0
Zandu Himani Baidya... Dabur

Interpretation:- As per response of the respondents, the users have very high degree of
satisfaction level with Dabur product,and then followed by Himani ,Baidyanath both of
them approx. have equal degree of satisfaction level .And Zandu ‘s product has the least
degree of satisfaction level among users.

41
4. What are the primary reasons for which you use this particular brand?

70

60

50

40

30

20

10

0
Health Brand Taste Price
Loyalty

Interpretation:-According to available responses from the respondents, the basic reason

for buying this product is health benefits followed by second factor which causes the
consumers to buy the product is Brand Loyalty and then followed by price of the product
and the customers are least attracted by the taste of the product.

42
5. How did you get to hear about this brand?

60

50

40

30

20

10

0
TV Internet Word of Print
mouth

Interpretation:-As per response from the respondents, 60% respondents got information
about the product from advertisement on TV( Audio-visual media) and then followed by
print media (25%) and word of mouth(15%). In other words, TV is the most effective media
for informing about the Dabur product.

6. If your (Dabur) brand is not available you would..?

43
 40
35
30
25
20
15
10
5
0
Purchase Wait Buy whatever
another substitute offered by
brand retailer

Interpretation:- According to available responses, in case of unavailability of DABUR

product in the market, before shifting to another products, the majority(40%) of customer
will wait for the product to come in the market, 25% customers will shift to another brand
for purchasing and 15% customers will buy substitute and the rest 20% will whatever will
be offered by the retailers.

7. Which pack size do you prefer?

44
50
45
40
35
30
25
20
15
10
5
0
1 Kg 500 gm 250 gm PERCENTAGE

Interpretation:- As per response of the respondents regarding different sizes of the

packaging, 500gm package is preferred most and then followed by 1000gm package and
250 gm package.

8. On what parameters do you choose this pack size?

45
40
35
30
25
20
15
10
5
0
Avalability Price Family size Storage PERCENTAGE

Interpretation:- According to available data, the majority (40%) of customers takes

buying decision of a particular size of a package on the basis of price of the product and
then followed by family size, 25% respondents, and availability of product(20%) and
storage.

9. How often do you buy?

46
60
50
40
30
20
10
0
One Two Six
months months months

Interpretation:- As per response of respondents, the buying frequency of majority (55%)

is two months and then followed by one month , as replied by 30% respondents and then
six months, as replied by 15 % respondents.

RETAILER SURVEY RESULTS

47
 1.Which brands of Chyawanprash do you stock?

Sales

DABUR
ZANDU
HIMANI
OTHERS

Interpretation: As figure shows that the retailer has large stock of Dabur Chyawanprash in
comparison to same product of the other companies like Zandu, Himani, and Baidynath.
After Dabur,Himani,Zandu and others are kept in stock. In other words, it can be said that
DABUR’ product is demanded more.

2.Out of these which are the most preferred?

48
80
70
60
50
40
30
20
10
0
Zandu Himani Baidyanath Dabur RATING(1-LOW 5-HIGH)

Interpretation: As per response from retailers, Dabur Chyawanprash is the most preferred
product among its product category(as 80% retailers liked it) and then followed by Himani,
(as 10% retailer liked it) and then Zandu and Baidyanath are in equal demand by the
retailers(as approx. 5% retailers liked it)

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

49
 60
50
40
30
PERCENTAGE
20
10
0
brand price availability no reason
loyalty

Interpretation: As per response from retailers, it is obvious that customers ‘purchase

decision mostly (as 55% retailers responded to it) get affected by brand loyality and then
followed by price of the product and some customers buy the product randomly.

4. What is the profile of your typical consumer?

50
70

60

50

40
PERCENTAGE
30

20

10

0
high income middle income low income

Interpretation: According to retailers, the product, Dabur Chyawanprash is preferred by

the middle income class (as more than 60% retailers responded to it) and then followed by
high income family / class (as 20% retailers responded to it) and it is preferred least by low
income class/ family(as approx. 12 % retailers responded to it).

5. What schemes offered to you by the company?

51
60
50
40
30
20
10
0
price discount buy one get one others

Interpretation: As per response from the retailer, generally, retailers are offered price
discount by the companies (as approx. 55% retailers responded to it). Besides, price
discount, retailers are given others offers on different schemes (as 40% retailers responded
to it). And sometimes companies offer retailers buy one get one offer (as 5% retailers
responded to it).

6. What schemes does a consumer prefer most?

52
70
60
50
40
30
20
10
0
price discount buy one get one others

Interpretation: As per response from the retailer, consumers prefer price discount schemes
most (as observed by 70% retailers) and then followed by buy one get one offer. Besides
these, there are many schemes /offers provided by company / retailers which attract
consumers (as 10% retailers responded to it).

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

preference?

53
70
60
50
40
30
20
10
0
yes no PERCENTAGE

Interpretation: As per response from retailers, in- store advertising has partial effect on
consumer preference as only 30% retailers responded to it. The majority of retailers i.e.
70% accepted that in-store advertising has no effect on consumer preference.

8. Does a change in price affect their preferences?

54
60

50

40
PERCENTAG
30 E

20

10

0
yes no

Interpretation: According to available responses from the retailers, among the factors
which affect consumers’ preference is the change in price of the product as 60% retailers
responded to it. From this it can also be inferred that there are other factors which are
responsible for change in preferences towards the product as 40% retailers explained about
factors other than change price of the product.

55
 CONCLUSION

6.2 CONCLUSION

On the basis of the study undertaken following conclusions were arrived at

56
 Consumers are aware of Dabur Chyawanprash (45%) the most as compared to other
brands available like Zandu (25%) because of the factors like brand Image, quality
and advertisement effort.

 Dabur Chyawanprash most popular amongst the segment (60%) and it enjoys the
highest market share, the consumers have given the highest rate to the Chyawanprash
in terms of health (65%), brand loyalty (20%) etc
 The audio visual media that is television advertisements of Dabur Chyawanprash has
affected consumers (60%) the most and the next place in this category is acquired by
Print Media (25%) and so on.

 According to the respondent’s response about 40% consumers are brand loyal and
mostly consumers (50%) use to prefer 500gm. Pack.

 The purchasing decision in mostly affected by price (40%) follow by family size
concept (25%) and availability (20%) so mostly retailers like to stock Dabur
Chyawanprash.

 Dabur is a mainly popular among middle income group customer (65%) and the
reason of popularity may be the price discount (55%) and other factors like brand
image brand loyalty etc.

57
 RECOMMENDATIONS

6.3 RECOMMENDATIONS

 Focus on growing core brands across categories.

 Reaching out to new geographies, within and outside India.

58
 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.

 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.

59
 SWOT ANALYSIS

6.4 SWOT ANALYSIS OF DABUR

60
STRENGTHS WEAKNESS

 Seasonal Demand( like Chyawanprash

 Strong presence in well defined niches(
in winter and Vatika not in winter)
like value added Hair Oil and Ayurveda
 Low Penetration(Chyawanprash)
specialities)
 High price(Chyawanprash)
 Core knowledge of Ayurveda as
 Limited differentiation
competitive advantage
 Strong Brand Image
 Product Development Strength
 Strong Distribution Network

61
  Extensive Supply Chain
 IT Initiatives
 R & D – a key strength

OPPORTUNITIES THREATS

 Untapped Market(Chyawanprash)  Existing Competition( like Himani,

 Market Development baidyanath and Zandu for Dabur
 Export opportunities. Chyawanprash) Hair Oil)

 Innovation  New Entrants

 Increasing income level of the middle  Threat from substitutes

class
 Creating additional consumption
pattern

ANNEXURE
62
 QUESTIONNAIRE

CONSUMER QUESTIONNAIRE-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.

Personal Information :-

Name……………………………………………………………….…

Age:

63
Location:

Income (per month):

(1) Rs. 1,000 – Rs. 10,000 [ ] (2) Rs. 10,000 – Rs. 30,000 [ ]

(3) Rs. 30,000 – Rs. 50,000 [ ] (4) Above Rs. 50,000 [ ]

1. Which brands of Chyawanprash are you aware of?

a) Zandu [ ] c) Himani Sona Chandi [ ]

b) Baidyanath [ ] d) Dabur [ ]

2. Which brand of Chyawanprash do you use?

a) Zandu [ ] c) Himani Sona Chandi [ ]

b) Baidyanath [ ] d) Dabur [ ]

3. Where would you rate your brand on a scale of 1 – 5 (5 being highest)?

a) 1 [ ] c) 2 [ ]

B) 3 [ ] d) 4 [ ]

f) 5 [ ]

4. What are the primary reasons for which you use this particular brand?

a) Health [ ] c) Brand Loyalty [ ]

B) Taste [ ] d) Price [ ]

64
5. How did you get to hear about this brand?

a) TV [ ] c) Internet [ ]

b) Word of Mouth [ ] d) Print [ ]

6. If your brand is not available you would..?

a) Purchase another brand [ ] c) Wait for it to be available [ ]

b) Go for a substitute [ ] d) Buy what is offered by the retailer [ ]

7. Which pack size do you prefer?

a) 1 kg [ ] c) 500 gm [ ]

b) 250 gm [ ]

8.On what parameters do you choose this pack size?

a) Availability [ ] c) Price [ ]

b) Family size [ ] d) Storage [ ]

9. How often do you buy?

a) Once a month [ ] c) Once in two months [ ]

b) Once in six months [ ]

10. Are you satisfied with your brand?

a) Yes [ ] b) No [ ]

65
 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.

Personal Information :-

Name: -------------------------------------------------------------------------------------

Age:

Location of store: --------------------------------------------------------------------------

1. Which brands of Chyawanprash do you stock?

a) Zandu [ ] c) Himani Sona Chandi [ ]

b) Baidyanath [ ] d) Dabur [ ]

66
2. Out of these which are the most preferred?

a) Zandu [ ] d) Himani Sona Chandi [ ]

b) Baidyanath [ ] c) Dabur [ ]

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

a) Brand loyalty [ ] c) Price [ ]

b) Availability [ ] d) No reason [ ]

4. What is the profile of your typical consumer?

a) High income [ ] b) Middle income [ ]

c) Low income [ ]

5. What schemes are you offered by the companies?

a) Price discounts [ ] c) Buy one get one free [ ]

b) Others [ ]

6. What schemes does a consumer prefer most?

a) Price discounts [ ] c) Buy one get one free [ ]

b) Others [ ]

67
 7. According to you, does in-store advertising have an affect on the consumers’
preference?

a) Yes [ ]

b) No [ ]

8. Does a change in price affect their preferences?

a) Yes [ ]

b) No [ ]

BIBLIOGRAPHY

Books and Journals Referred

 MATHUR P. & GUPTA S.K: “Preventive Effect of Chyawanprash Against

Steroid Induced Cataract”: Journal of; International Journal of Human
Genetics; January 1998 : Page No;134-137
 Ojha,J :“Chyawanprash is a Classical Ayurvedic Formulation” : Journal of
Vedic to Genomic Era” : Year- 2003 : Page No. 282-284
 RASTOGI S. & BALA S: “The Dynamic Effect of Dabur Chyawanprash”
Journal of Indian Pharmaceutical Sciences: Year- 2004: Page No.; 53-
 BANSAL & NITIN: “Traditional medicinal formulation Chyawanprash - A
review” : Journal of CSIR: Oct – 2006: Page No ; 28 – 32
 Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller

List of Newspapers

68
  BUSINESS LINE - Chandran, Rina. “Good monsoon doesn’t mean more
FMCG sales,” BusinessLine Chennai, 20 November 2003.
 THE ASIAN AGE - Dey, Mrinal K. “Subhiksha plans Rs.150 crore expansion
strategy, ”the Asian Age, 20 November 2003.
 ECONOMIC TIMES- Vikram. “Competing on price is the new name of the
game,” Economic Times, 7 February 2001.
 FINANCIAL EXPRESS- Jain & Ajay. “Food retailing value addition to up
growth,” Financial Express, 17 June 2003.
 THE TELEGRAPH - Nair & Malini. “The great Indian super bazaar,” The
Telegraph, Calcutta edition, 3 April

WEB SOURCES

 www.brandchannel.com
 www.blonnet.com
 www.superbrandsindia.com
 www.india-today.com/
 www.retailnews.com
 www.vikalpa.com

69
 LIST OF CHART

Chart No. Chart Content Page No.

1 Chart showing the brand awareness of Chyawanprash 40

2 Chart showing the brand preference 41

3 Chart showing the satisfaction level 42

4 Chart showing reasons behind purchase 43

5 Chart describing the awareness behind of brand 44

6 Chart describing the unavailability of preferred brand 45

7 Chart showing the pack size preference 46

8 Chart showing the parameter of selection 47

9 48
Chart describing the frequency of purchase
10 49
Chart showing the status of stock
11 Chart showing the brand preference 50

12 Chart showing the reason for customer preference 51

13 Chart showing various schemes launch by the company 52

14 Chart showing income group of people 53

70
15 Chart showing schemes consumer prefers most 54

16 Chart showing the advertising affect on consumer preference 55

17 Chart showing the price affect on consumer preference 56

71