PROJECT REPORT

{Submitted for the degree of B.Com (Hons) in Accounting &

Finance under the University Of Calcutta}

Title of the Project

“ANALYSIS ON MARKETING &

PROMOTIONAL STRATEGIES OF
DABUR INDIA LIMITED”
Submitted by
Name of Candidate :
Registration No. :
Name of College :
College Roll No. :

Supervised by
Name of the Supervisor :
Name of the College :

Month & Year of Submission February 2014

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Annexure-IA

Supervisors’s Certificate

This is to certify that Miss. Ritika Agarwal a student of B.com.

Honours in Accounting and Finance of Bhawanipur Education Society
College under the University of Calcutta has worked under my
supervision and guidance for her Project Work and prepared a Project
with the title “ANALYSIS ON MARKETING &
PROMOTIONAL STRATEGIES OF DABUR INDIA
LIMITED”
This project report, which she is submitting, is her genuine and original
work to the best of my knowledge.

Signature :………………………
Name : Ritika Agarwal
Address :83, Golaghata road,
V.I.P Tower, Block-E
5th Floor
Kolkata-700048

Registration no:

Place: KOLKATA
Date:__________

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Annexure-IB

Student’s Declaration

I hereby declare that the project work with the title

“ANALYSIS ON MARKETING & PROMOTIONAL
STRATEGIES OF DABUR INDIA LIMITED” submitted by
me for the partial fulfillment of the degree of B.Com(Hons) in
Accounting & Finance in Business under the University of
Calcutta is my original work and has not been submitted to any
other University/Institution for the fulfillment of the
requirement for any course of study.

I also declare that no chapter of this manuscript in whole or

in part has been incorporated in this report from any other
work done by other or me. However, extracts of any
literature which has been used for this report has been duly
acknowledged providing details of such literature in the
references.

Signature:_________________________
Name: ____________________________
Designation: _______________________
College: _________________________

Place: Kolkata
Date:

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 ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same
happened with me during this project. The immense help and
support received from my institution overwhelmed me during
the project. The satisfaction and euphoria that accompany
the successful completion of any work would be incomplete
unless we mention some of the persons, as an expression of
gratitude, which made it possible, whose constant guidance
and encouragement served as a beckon light and crowned the
efforts and success.

The content and accuracy of this project are the

responsibility of the various books used and information
available on the net.

A project is a major milestone during the study period of a

student. As such this project was a challenge and was an
opportunity to prove my calibre. It would not have been
possible to see through the undertaken project without the
guidance of my professors and teachers. It was purely on
the basis of his experience and knowledge that I was able to
clear all the theoretical and technical hurdles during the
development phases of this project work.

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 Table of Contents
Chapter PAGE
SUBJECT
No. No.

1. Introduction 6-13
1.1. Background of the study 7-8
1.2. Literature Review 9-9
1.3. Objective of the study 10-10
1.4. Methodology 10-11
1.5. Limitations of the study 11-11
1.6. Chapter Planning 12-13

2. Conceptual framework 14-25

2.1. Concept 15-17
2.2. Benefits & Challenges 18-20
2.3. International Scenario 21-21
2.4. National Scenario 22-25

3. analysis and findings 26-46

3.1. Research Design 27-30
3.2. Methodology 31-31
3.3. Analysis based on Primary data 32-37
3.4 Analysis based on Secondary data 38-46

4. Conclusion and recommendations 47-50

4.1. Summary 48-48
4.2. Suggestions & Recommendations 49-49
4.3. Limitations of the study 50-50

5. Bibliography 51-52

6 Sample questionnaire 53-54

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 Chapter 1:
INTRODUCTION

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1.1 Background Of The Study

This report is prepared for fulfilling the course requirement of C.U. academic
structure. As the classroom discussion alone, cannot give proper picture of real
business situation, it is an opportunity for the student know about real life
situation through this program., Project program is very essential for every
student, especially for the student of Commerce field, which helps them to know
real existing situation. For this reason a student is directed to take project
program at the last stage of the B.com (H) degree. I have made this project report
on Dabur India Limited. This report is about "Marketing and Promotional
Strategies- a Study on Dabur India Limited" I wanted to work on this topic
because, Marketing activities are very important in business no business
organization become successful one without a sound marketing activities.

DABUR INDIA LIMITED is a leading Indian consumer goods company with

interests in HAIR CARE, ORAL CARE, HEALTH CARE, SKIN CARE, HOME CARE
and FOODS. From its humble beginnings in the by lanes of Calcutta way back in
1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way
today to become a leading consumer products manufacturer in India. FOR THE
PAST 125 YEARS, WEHAVE BEEN DEDICATED TO PROVIDING NATURE-BASED
SOLUTIONS FOR AHEALTHY AND HOLISTIC LIFESTYLE. Through our
comprehensive range of products, we touch the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped us develop a bond of
trust with our consumers. That GUARANTEES you the BEST IN ALL
PRODUCTSCARRYING THE DABUR NAME.

Dabur India Ltd. - Corporate Profile

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of US$1
Billion(over Rs 5,000 Crore) & Market Capitalization of US$4 Billion (Rs 20,000
Crore). Building on a legacy of quality and experience of over 127 years, Dabur is
today India’s most trusted name and the world’s largest Ayurvedic and Natural
Health Care Company. Dabur India is also a world leader in Ayurveda with a
portfolio of over 250 Herbal/Ayurvedic products. Dabur’s FMCG portfolio today
includes five flagship brands with distinct brand identities --Dabur as the master

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brand for natural healthcare products, Vatika for premium personal care, Hajmola
for digestives, Real for fruit juices and beverages and Fem for fairness bleaches
and skin care products. The company has a wide distribution network, covering over
2.8 million retail outlets with a high penetration in both urban and rural markets.
Dabur’s products also have a huge presence in the overseas markets and are today
available in over 60 countries across the globe. Its brands are highly popular in the
Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur’s overseas
revenue today accounts for over 30% of the total turnover. The 125-year-old
company, promoted by the Burman family, had started operations in 1884 as an
Ayurvedic medicines company. From its humble beginnings in the by lanes of
Calcutta, Dabur India Ltd has come a long way today to become one of the biggest
Indian-owned consumer goods companies with the largest herbal and natural
product portfolio in the world. Overall, Dabur has successfully transformed itself
from being a family-run business to become a professionally managed enterprise.
What sets Dabur apart from the crowd is its ability to change ahead of others and
to always set new standards in corporate governance & innovation.

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1.2 Literature Review
Frederic M. Scherer, (2008) Dynamics and Regulation of the Asian FMCG Industry:
A Critical Review, this study examines how product innovation contributes to the
renewal of the firm through its dynamic and reciprocal relation with the firms
competences. Field research in five high-tech firm of varying age, size and level of
diversification is combined with analysis of existing theory develop the findings of
the diversification is combined with analysis of existing theory develop the
findings of the study. Based on the notion that new products are created by linking
competences relating to technologies and customers, a typology is derived that
classifies new product projects based on weather a new product can draw on
existing competences, pre requires competences die firm does not yet have.
Following organizational learning these options are conceptualized as exploitation
and exploration. These organizational concepts are used to gain a dynamic and
path-dependent view of product innovation and development, and to reveal the
unique nature and challenges of different types of product innovation.

Thomas S.Robertson, Jehoshua Eliashberg and Talia Rymon, (1995), new product
announcement Signals and incumbent reactions, the authors focus on NPA Signals.
They develop a set of regarding incumbent's reactions to NPA single is and test
them in a field study among managers in the United States and The United
Kingdom. The authors' findings provide an amortization of the factors affecting
the likelihood of competitive response to NPA signals and agency a set of
managerial implications.

R Wensley, (2008), product strategic, managerial comprehension, and

organizational performance, Recent comments on the national competitive model
based on the links between organizational skills and value added have recognized
that individual firm performance can be significantly moderated by either or. Both
marketing expertise and differentiating skills within the organization with an
emphasis on high level managerial capabilities. This article considers both a more
detailed analysis of marketing approaches in this area and also.

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Pwter Trim, [2008], A new product launch strategy (NPLS) model for
pharmaceutical companies, department of management, the purpose of this paper is
to make explicit positioned in the industry as sustainable competitive advantage
being achieved- various regulations and cultural trial as religion. It is clear from
the research undertaken that some marketing medals are viewed as being too
complex however, it is generally appreciated that marketing models can be used to
interpret complex relationships that are evident in marketing system research
limitations/implications.

1.3 Objective of Study

The general objective of this study is to learn and measure the performance of
marketing activities of Dabur India Limited. The specific objectives of this study
are as follows:
• To know the overall functioning of Dabur India Limited.
• To know about the unique features associated with marketing activities.
• To analyze the Marketing activities used by Dabur India ltd.
• To identify the problems related to the marketing activities of Dabur India
Limited.
• To make recommendations, for the solution of the problems of Dabur India
Limited.

1.4 Methodology
“Marketing research is a systematic problem analysis, model building and fact
finding for the purpose of important decision making and control in the marketing
of goods and services.”
- Phillip Kotler.

As the purpose of the project report is to analyze the consumable products

successfully launched in the last three years. The data was collected both with the

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help of primary as well as secondary sources. For primary data, I proceeded with
the drafting of the questionnaire for consumers was structured as undisguised, &
Personal -interview retailers. I handed distributors& wholesalers and it personally
to the respondents to be analyzed. The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained by just asking
the questions.
c) Questioning is usually faster and cheaper.
d) Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the company has
furnished for the general public. The secondary data was gathered with the help of
various magazines, newspapers, journals, and brochures and also through the
Internet. For secondary sources no fieldwork was employed.

1.5 Limitation of study

I have faced many categories of Limitation. Such as:

1. The time Limitation is important factor to prepare a project report

properly.
2. Busy work schedule did not let the officers provide required information.
3. Data is not available so it's a major limitation.
4. Lack of experience to prepare properly project report
5. Lacking of diversified information in website of the Dabur India Ltd.

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1.6 Chapter planning
The study has been framed as follows:

1. Introduction: It is divided into 6 different sections as specified below. In

each section different heads are covered as given under

1.1. Background: This section incorporates the basic business portfolio of

Dabur India Limited.

1.2. Brief Review of Literature: This section outlines the results and
conclusions achieved by the earlier studies conducted by several other
scholars regarding the topic of this project report.

1.3. Objectives: This section pertains to what is being tried to be

achieved through this project. It contains the points for achievements for
which the project is being undertaken.

1.4. Methodology: This section gives an overview of the data that is going
to be used for the project report and the sources through which such data
is going to be collected.

1.5. Limitations: The limitations that are going to be faced are being
listed here so that we have a fair knowledge regarding the dependency of
data collected and the projections, interpretations and conclusions made
using the data.

1.6. Chapter Planning: Presents an overview of the entire project report

in a summarized form.

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2. Conceptual Framework: It is divided into 4 different sections as
specified below. In each section different heads are covered as given under

2.1 Concept: This part deals with the concept of the project.

2.2 Benefits & Challenges: This part deals with the benefits & challenges of
the project undertaken.

2.3 National Scenario: This part deals with the National scenario regarding
Rural & Urban Marketing. It outlines the present scenario and changes in
this field over the years and the future opportunities and insights in the
field of Rural & Urban Marketing.

2.4 International Scenario: This part deals with the International scenario
regarding Global Marketing. It outlines the present scenario and changes in
this field over the years and the future opportunities and insights in the
field of Global Marketing.

3. Analysis and Findings: This part includes Research Design,

Methodology, Sample Profile, Data Type, Data Source, Period of Study, Tools
Used, and Final Analysis.

4. Conclusion and Recommendations : In this section, the concluding

observations based on the main findings and suggestions are provided. The
major observations made during the course of this project have been enlisted
to draw meaningful inference from the study. Recommendations have been
enlisted which may prove to be helpful in replacing the weaknesses identified
during the course of the project.

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 Chapter 2:
CONCEPTUAL
FRAMEWORK

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 2.1 Concept
Marketing Strategies

Marketing is the process of communicating the value of a product or service

to customers, for the purpose of selling that product or service.

From a societal point of view, marketing is the link between a society’s material
requirements and its economic patterns of response. Marketing satisfies these
needs and wants through exchange processes and building long term relationships.
Marketing can be looked at as an organizational function and a set of processes for
creating, delivering and communicating value to customers, and managing customer
relationships in ways that also benefit the organization and its shareholders.
Marketing is the science of choosing target markets through market analysis
and market segmentation, as well as understanding consumer buying behavior and
providing superior customer value.

"Marketing mix" is a general phrase used to describe the different kinds of

choices organizations have to make in the whole process of bringing a product or
service to market. The 4Ps is one
way – probably the best-known way
– of defining the marketing mix, and
was first expressed in 1960 by E J
McCarthy.

The elements are:

 Product (or Service).
 Place.
 Price.
 Promotion.
 Process.

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 Physical evidence.
 People.

Promotional Strategies

Promotional strategies for goods include word-of-mouth, publicity, sampling,

discounting and advertising. However, the promotion strategy should be developed
to reach the target market, meet the goals and objectives. Do not divert from the
main aim of your promotion, that is to further the growth or development of goods.

Product promotion is one of the necessities for getting your brand in front of the
public and attracting new customers. There are numerous ways to promote a
product or service. Some companies use more than one method, while others may
use different methods for different marketing purposes. Regardless of your
company's product or service, a strong set of promotional strategies can help
position your company in a favorable light with not only current customers but new
ones as well.

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 BUSINESS PORTFOLIO OF DABUR
PERSONAL CARE :

Dabur has a wide range of personal care HEALTH CARE :

products and some products as Dabur
Dabur Chyawanprash, Dabur Shwaasamrit,
amla hair oil, vatika shampoo, dabur
Dabur Pilochek, Dabur Heal-ek, Hajmola
gulabari, u veda, etc.
Candy, Pudin hara, Dabur Blood
Purifier,etc.

HOME CARE AND FOOD REAL JUICE SEGMENT :

PRODUCTS :
 Real
 Tomato Ketchup  Active
 Lemoneeze  Burst
 Capsico
 Cornflour
 Pineapple slice
 Fruit cocktail
 Tomato puree

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2.2 Benefit & Challenges

A. Benefit: Strengths & Opportunities

STRENGTHS
 Strong presence in well-defined niches( like value added hair oil and
ayurvedic specialties)
 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

OPPURTUNITIES
 Untapped market (Chyawanprash)
 Market Development
 Export Opportunities
 Innovation
 Increasing income level of the Middle class
 Creating additional consumption Pattern

B. Challenges: Weakness & Threats.

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WEAKNESS

1. Seasonal Demand (like chyawanprash in winter and vatika not in winter)

2. Low Penetration (Chyawanprash)
3. High Price (Vatika)
4. Limited Differentiation (Vatika)
5. Unbranded players account for the 2/3rd of the total market (Vatika).

THREATS

Existing competition (like Himani, Baidyanath and Zandu for Dabur Chyawanprash
and KeoKarpin, HUL and Bajaj for Vatika Hair oil)
 New Entrants
 Threat from substitutes (like Livon For Vatika Hair Oil)

C. DABUR’S PRODUCT LINE

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 CATEGORY OF DABUR’S SHARE MAIN
PRODUCTS COMPETITORS

Fruit Juice 58% Real and Active Tropicana.

Fruit Drinks (coolers) 1% Coolers Frooti, Mazza, and Slice.

Hair oil Coconut Base 6.4% Vatika HUL, Marico.

Shampoo Vatika 7.1% HUL and P&G.

Hair Care (overall) 27% HUL, P&G and Himalaya.

Chyawanprash 64% Himami, Zandu and

Himalaya.

Honey 40% Himami, Hamdard and local

players.

Digestive 37% Paras and local players.

2.3 International Scenario

Global Market:

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• International Business Division (IBD) caters to markets in Nepal, Bangladesh,
Middle East, North and West Africa, EU and US
• Contributes to 30% of total sales
• Promoting Dabur and Vatika in these markets
• Vatika is the fastest growing hair-care brand in the Middle East
• Leveraging the ‘natural’ preference among local customers.

Final Recommendations

 Dual strategy
 Consolidate the domestic market and expand internationally in selected
growth markets Leverage core therapeutic herbal/ ayurvedic platform
 Build a platform to enable Dabur to become a global ayurvedic leader
Although requiring an adaptive strategy, Nigeria can be an attractive market
for Dabur International

Focused in Bangladesh:

But the launch of Dabur Vatika in 1995 brought about a sea change in that
perception. Within six years of its launch, Vatika had become the market leader in
the value-added hair oils segment. Its success pushed Dabur into the league of top
FMCG product companies in India. Dabur Vatika’s success can be attributed to the
company’s differentiated product offering and meticulous brand building
initiatives. Till then, the hair oil market had been dominated Parachute, being the
market leader. Dabur Vatika, has become a leading brand in the natural personal
care product segment. Marketing communications play an important role in building
brands.Major focus urban area like Dhaka city, Dhaka surrounding. Ctg city, Ctg
surrounding. Shylet. Khulna. Rajshahi area. 80% sales are coming on urban area and
20% sales are coming rural area. Vatika Brand is focused in urban area and shampoo
mini focused on rural area.

2.4 National Scenario

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New Delhi, October 4th, 2010: This festive season, gift your loved ones the Réal
‘Gift of Goodness’. Dabur India Limited, India’s leading natural healthcare company,
is introducing a range of 11 special Diwali gift packs of Réal fruit juices and Réal
Activ “No added Sugar” juices, offering the holistic goodness of fruits in an
attractive festive package.

Dabur has introduced eleven different gift packs of Réal and Réal Activ fruit
juices, priced between Rs 90 and Rs 270. Branded as ‘Gift of Goodness’, these gift
packs are eloquently designed and decorated and signify the importance of gifting
as a phenomenon that is so important to all Indians. The special packaging includes
a ‘Réal Fruit Express’ pack with pictures of the famous Disney cartoon character
Mickey Mouse and designed to resemble a metro train. Also being offered is a
special ‘Celebrate an Activ Life’ suitcase pack featuring the image of the Réal Activ
brand ambassador and cine star Bipasha Basu. In all, there are four special Réal
Activ
gift packs and seven Réal festive gift packs.

“Consumers today are becoming extremely health conscious and are looking for
healthy and non-traditional gifting options. In this scenario, Dabur’s Réal Gift of
Goodness range is a welcome change from the calorie-laden traditional gifting
options. Our gift packs offer the best combination of taste and nutrition, and is
yet another illustration of Dabur’s commitment towards the health and well-being

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of every household,” says Mr. K. K. Chutani, Marketing Head-Foods, Dabur India
Ltd.
Dabur India pioneered gift packs in the fruit juices category, and its special packs
have always received overwhelming response. Dabur gift packs are introduced with
the sole motive of promoting exchange of healthy gifts — in essence, gifting good
life to your near and dear ones. “We have traditionally seen a sharp rise in sugar
intake during the Diwali season, thanks to the higher consumption of Matthias etc.
With our various gift packs, we are offering consumers a chance to gift their loved
ones good health this Diwali,” says Mr. Chutani.
The Réal & Réal Activ Diwali gift packs would be available in all premium retail
outlets across major towns in India. So this Diwali, get all set to refresh the sweet
memories with your family & relatives giving them the best combination of taste
and nutrition.

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BUILDING NATIONAL SCALE IN INDIA IS A KEY CHALLENGE

• Market heterogeneity: High

• National coverage:
• Millions of retail outlets
• Majority in rural areas
• People-intensive operations
• Underdeveloped supply chain
• Costly logistics
• Diverse consumer base
• Many small individual transactions are unremunerated for marketers

Rural-urban profile 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
characterized by a well-established distribution network, intense competition
between the organized and unorganized segments and low operational cost.
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Availability of key raw materials, cheaper labor costs and presence across the
entire value chain gives India a competitive advantage. The FMCG market is set to
treble from US$ 14.6 billion in 2008 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 middle class base of 300 million. Around 70 per cent of the
total households in India (188million) reside in the rural areas. The total number of
rural households is expected to rise from 145 million in 2007 one of the largest
economies in the world in terms of purchasing power and has a strong -08 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$14.5 billion in
2007-08. With growing incomes at both the rural and the urban level, the market
potential is expected to expand further. Urban Rural Population 2007-08 (mn
household) 53 145 Population 2009-10 (mn household) 69 153% Distribution (2007-
08) 28 72Market (Towns/Villages) 3,768 627,000Universe of Outlets (mn) 1
3.3Source: 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.

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 Chapter 3:
ANALYSIS AND FINDINGS
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3.1 Research Design

MARKETING & PROMOTIONAL STRATEGY ANALYSIS OF

DABUR INDIA LIMITED

The overall business activity of Dabur in categorized into Four Strategic Business
Units
for strategic purposes.

 Consumer care division

The division forms the core FMCG business. It consists of the 5 power brands
valued over Rs 1000 crores. It is the main division contributing over 68 % of the

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total revenue. It consists of products in the personal care, health care & home
care segments.

Consumer Care Division Sub Segments are:

a) Oral Care Segment

The market Size of Oral Care is estimated at Rs 2400 crores. The segment
consists of
toothpaste, tooth-power & toothbrush, with toothpaste contributing of over 68 %
followed
by 17 % of toothbrush and the rest 15% is the share of tooth-power.
Dabur commands 15 % market share in the toothpaste and toothpowder category.
It is
enjoying good growth in this sector. It operates in all the segments- economy with
Babool, popular with Dabur Red and premium with Meswak.
Dabur has grown at over 33.80 % in FY07 while the industry has shown a growth of
13.20% value terms growth and 9.2 % in
volume terms.
The market size is estimated at
approximately Rs 2400 crores.

Dabur’s Status

 Position – No 3 player
 Market Share -15 %
 Brands : 4 herbal toothpastes and
toothpowder brands.

b) Baby and Skin Care

Shampoo Market Share

The market size is estimated to be Rs 6000

crores. Dabur operates in this category with
Dabur Ayurvedic baby range with oils and
Tonics & Gulabari range of rose based skin

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care products. This segment is contributing less than 8 % of the overall revenue.

c) Hair Oils and Shampoos

 Hair Oils
 Market Size – Rs. 22.6 bn
 Dabur has 17% share
 Key brands
 Dabur Amla Hair Oil Hair Oil Market Share
 Vatika Hair Oil
 Anmol Coconut and Mustard Oil

 Shampoo
 Market Size – Rs. 15.3 bn
 Herbal offerings under Vatika brand
 4th largest player with 5% share

 Consumer Health Division

Consisting of Ayurvedic & OTC Healthcare. The entire range covers of

over 260 of a over the counter and ethical medicines. The expected market size
is app. Rs 500 crores. The revenue contribution from the division is less than 7 %
to the overall revenue.

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  International Business Division

Overseas business with its

headquarters at Dubai. It contributes to over 13
% to the group revenue. It is responsible for all
the group’s overseas interest and acquisition etc.
It is the fastest growing segment among all the
four SBU’s.

 Markets divided into 3 categories :

Focus, Potential and Oppurtunistic
Markets.
 Leveraging ‘natural wave’ to market
Dabur products in GCC & Africa

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  Exending Dabur equity in neighbouring markets
 CAGR of 25%+ in International markets.

 Foods Division

It consists of Food beverages & culinary

products. It is market leader
with over 51 % share. It is covering the entire market
segment its three brands, Real,
Active and twist. The revenue contribution from this
division is over 10 %. Activ has been
positioned as a premium juice brand while real is more
positioned toward SEC B & C segment.

3.2Methodology

3.2.1 Sample Profile: A case study from primary

and secondary data has been taken
3.2.2 Type of study: The case study analysis have been taken in the form of
secondary data from different reports, financial statements & websites as well as
primary data in the form of questionnaires.
3.2.3 Data time: In order to collect the following data time was taken by me
as the source of data collection was from a secondary source:
Data collection 20 days
Report preparation 20 days
Literature review 10 days
Analysis and findings 20 days
Report correction 10 days
Final report preparation 10 days

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 Total time 90 days
3.2.4 Source of data: It was a published data and it was collected from
different sources like
A) News Papers / publication

B) Internet

C) Advertisement

D) Annual Report

3.2.5 Period of study: It took me almost a couple of months to thoroughly go

through the project and make a proper survey on it.
3.2.6 Tools Used: Various tools have been used in this project for proper
data evaluation. Statistical data , numerical & various geometrical representations
have been made for a clear analysis.

3.3 Analysis Based on Primary

Data

 The profile of a typical consumer

INTERPRETATION

~ 32 ~
It was observed that 20% from High class Income, 65% from middle class income
group & 15% from low income group.

 The reasons for customers’ preferences

INTERPRETATION

It was observed that 55% of the customers buy for the purpose of brand loyalty,
30% of customers for price & 5% of customers for availability.

 Brands of Chyawanprash that the retailers stock as per

consumer preferences.

INTERPRETATION

~ 33 ~
It was observed that 90% of total stock of CHYAWANPRASH is Dabur.

 Brands of Hair Oil that consumers use.

INTERPRETATION

It was observed that 35% of total customers mostly prefer the Dabur Vatika hair
oil.

 Number of people are aware of Dabur and other competitive

brands.

~ 34 ~
INTERPRETATION

It was observed that 100% of the customers are already aware of the brand
DABUR.

 Schemes that a consumer prefer most.

~ 35 ~
INTERPRETATION

It was observed that schemes that are mostly preferred by the customers are
price discount 70%, buy one get one 20% and others are 10%.

 Whether In-store advertising have an affect on the consumers’

preference or not.

INTERPRETATION

It was observed that advertisings have an affect on the consumer’s preference to

a little extent only. Yes – 30% ; No – 70%.

 Change in price affecting the consumer preferences.

~ 36 ~
INTERPRETATION

It was observed that price changes might affect the sales by 60%.

 Sources from which customers came to know about the brand

DABUR.

INTERPRETATION

It was observed that 80% of the customers became aware about DABUR Products
through TV, and others through media, internet, etc.

 If customer’s brand is not available in market.

~ 37 ~
INTERPRETATION

It was observed that 40% of the customers could wait in case of unavailability of

their DABUR brand.

3.4 Analysis Based on

Secondary Data
~ 38 ~
Dabur Company came into the market for low end consumers with quality products.
The objective of the founder doctor Burman was to make available quality health
care products to all especially low end consumers who are usually cheated by other
big companies. Its basic marketing strategy seems to be providing numerous
products under a broad product group and that too in different shapes and sizes.
This helped Dabur to cater the needs of small as well as large sized customers.
Geographically it expanded its business all over India so that the presence could be
felt by its loyal customers all over the place. Moreover, with regards to pricing, it
has cost effective inputs which enables them to keep their price low. they also
offer various other, their own lucrative products with each other. This serves dual
purpose of selling and advertising.
The company has grown manifold during these years due to trust which it has built
in its customers vide quality and pricing. Moreover, it provides health care
products of all types which serves as a single window for customers.

Had a talk with my relatives and friends, they are of the view that till date Dabur
has not faced so much competition that it has to see a low trend in business which
is also reflected by its EBITDA, PBT Graphs in the links. The reliability of Dabur
products is too high in the market and consumers respond very positively.
The marketing strategies have been quite effective. Initially to attract customers
it proivdes various discount offers and other offers and kept their price low.
Gradually they increase their price but you will not notice sharp increase in its
price anytime. This has enabled the company to stay competitive in the market and
stil we can see how effectively and efficiently its moving on its path smoothly.

FUTURE BUSINESS GROWTH PROSPECTS AS PER CURRENT

STRATEGIES OF DABUR INDIA LIMITED

~ 39 ~
1. Industry Trends

The Indian consumer market is set to scale new heights. With an estimated ten-
fold
increase in middle-class population and three-fold rise in household income,
aggregate
consumer spending is likely to more than quadruple from around US$ 428.69 billion
in
2005 to US$ 1.76 trillion in 2025. Consumer moving up the value-chain is a visible
trend
in the recent years. For the 2007 as a whole, the size of FMCG market is likely to
exceed US$ 18 billion in value as against US$ 15 billion in 2006.
India is likely to leap-frog from being the twelfth largest consumer market in the
world
to become the fifth largest consumer market in the world, says a study by
McKinsey
Global Institute. Significantly, over 23 million Indians -more than the population of
Australia-will number among the country's
wealthiest citizens.

2. Rising Disposable Incomes

The fact that the per capita income has nearly

doubled in a short span of four years to just under
US$ 800 in 2006-07 (from around US$ 450 in
2002-03), has boosted the growth of FMCG
companies. For example, the sales of 11 major listed
FMCG companies grew by 16 per cent in the first
nine months of the current fiscal (2007-08).
In fact, the surge in consumer spending along
with the changes in consumer tastes and low
penetration levels of the organized sector in several
commodities is likely to ensure high growth rate
across a range of FMCG categories. For example,
market research firm A C Nielsen has identified 24
categories in personal grooming space that are

~ 40 ~
growing at an average growth rate of 13 per cent. Products like perfumes, body
washes and hair colours among others have all been experiencing high double-digit
growth.

3. Increasing Preference for Herbal Based Products

Growing preference in India and abroad toward the use herbal and non synthetic
chemicals based personal grooming and health supplement. This offers tremendous
opportunity for Dabur to exploit it’s domain knowledge and expertise in blending
knowledge of traditional medicines
with modern science.

4. Rising costs of R&D overseas

This is resulting in a greater tendency towards outsourcing and networking. This
offers
potential for clinical research and initiating clinical trials and opportunity to
improve quality
standards.

5. Low Per capital consumption

India has a low per capita consumption in the world. As can be seen in the
followingchart India’s per capita consumption stands even lower than Brazil

6. Liberal Government Policy

The possibility of Foreign Direct Investment being allowed in the retail sector and
consequent entry of large international retail chains, the FMCG industry will see
some
structural changes happening which could result in a strong growth momentum.

7. Low level of FMCG goods in the Rural Markets

Except for the category of Toilet Soaps, washing powder ,detergent bars and to a
reasonable extent the hair care segment, most of the segments have very low level
of penetration, espeacialy the health supplement, packaged fruit juice and
mosquito repellant segment. In all these segments Dabur is having Market leader
status.
Dabur Ansoff's matrix is shown below :

~ 41 ~
 Existing Products New Products

Product Development
Existing Market Penetration Food Division 1.
Markets Hair care segment, ( Juices and pastes etc )
Home Care Health Care segment
Baby & Skin Care like Dabur Pudin Hara

New Market Development Diversification

Markets Fruit Juice, Nectar etc, New Look Retail Format
Expansion in new
Geographic Markets

Market Penetration
The strategic focus is to achieve growth with existing products in
their current market segments thereby increasing market share. Dabur is applying
this
strategy through brand building and through the low price high quality value
proposition. It has increased it advertisement budget by to match the aggressive
campaign of its rivals. The strategy is followed in all the SBU’s. Dabur successfully
applying this strategy in the hair Care division. It slashed prices by as much as 20%
to capture market share.

2. Market Development
The strategic focus involves the firm to seeks growth by targeting its
existing products to new market segments. This is the underlying philosophy behind
the Dabur’ relentless effort in bringing out new flavors in practically all the sub-
segments to cover the different segments. For example it entered in the
processed juices category with Real brand. It was positioned toward the SEC B &
~ 42 ~
 SEC C category. To cater to the premium category it came out with Activ brand.
More over it is trying to sell it products in new geographical area like in South
India and internationally where sizable ethic population is present.

3. Product Development
The firms develops new products targeted to its existing
market segments. This is the strategy that Dabur is adopting in expanding in
Southern Market. The Company’s Flagship brand Chywanprash may be reformulated
to suit the South Indian palate and it could be repackaged to account for language
differences. Others well known brands where rebranding is being considered are
Hajmola, Pudin Hara group of products and Dabur Lal tel.

4. Diversification
The firm grows by diversifying into new businesses by developing new
products for new markets. The move to acquire Balsara and move into Home Care
segment (Odorni, Odomos etc) can be termed as diversification move. Similarly the
recent foray of Dabur into new retail format with its new venture is on similar
dimension.
The Indian retail trade scenario is witnessing a growth of the modern
format retail stores. Shoppers at these stores have a higher propensity for trial
and experimentation, making them early adopters for a host of products. These
stores offer better shopping ambience and a more scientific approach to displays
and promotions. Also, experience has shown,that for certain niche products,
modern trade formats are a better retail option. Dabur move into the new retail
format is to capitalize into this new opportunity.

AWARDS AND ACHIEVEMENTS OVER THE YEARS

1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes.

~ 43 ~
2. Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods
space in India.

3. Dabur ranked among Top 10 Best Companies to Work For in the Consumer
Goods and Durables sector.

4. Dabur ranked 45 among Most Trusted Brands In India, according to Brand

Trust Report, India Study, 2011.

5. The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100
Richest Indians' list.

6. Dabur listed among the enterprises that are 'Doing India Proud' in Limca Book
of Records
2010.

7. Dabur ranked 200 in the Fortune India 500 list That ranks India's 500 largest
corporations.

8. Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company.

9. Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace
bag international Promotion Marketing Award of Asia 2010.

SUGGESTIONS
ON THE BASIS OF
CASE STUDY

~ 44 ~
On 29th March 2006, Mr. Sunil Duggal, CEO Dabur India Limited unveiled Dabur’s
four year
strategy and business plan which envisions doubling the turnover and net profit by
the year 2010.
Christened ‘Vision 2010’,
In early 2002, Dabur had undertaken a study in association with consulting firm
Accenture, to
understand its brand equity. The key finding of the study was that Dabur’s brand
perception was
of a herbal specialist. The herbal segment was one
of the fastest growing in FMCG sector and
could be leveraged across both, urban and rural
markets. However, in the past Dabur’s products
had come to be associated with the 35 plus age
group. With almost half the country’s population in
the below 30 years age bracket, the company ran
the risk of missing the next generation consumers.

The new identity modernizes the 100 year old equity of Dabur, both as a company
and as a brand. The new logo- the tree with a younger look in form and colours –
was also in sync with the new brand essence - Celebrate Life. Each element of the
identity was crafted to convey a relevant message. The burst of leaves signified
growth, vitality and rejuvenation. The dual colours reflected the combination of
stability and freshness. The form of the trunk mirrored three people raising
their hands in exultation. Whilst the broad trunk represented stability, the
multiple branches represented growth. The soft orange color of the trunk was
selected for its message of warmth
and energy. Thus, through its form and colours, the new logo combined stability and
freshness
and expressed a positive, proactive and progressive brand.

Promotion :

~ 45 ~
An FMCG company relies very heavily on advertisement. The promotional aspect is
very
important. More important is what you communicate. In such a scenario Brand
Management
becomes very important. The use of celebrity endorsement and concept of brand
ambassador
should be continued. Recently the company has signed on Amitabh Bachchan as
brand
ambassador, for all of Rs 8 crores. Dabur should reposition the company as a
‘herbal specialist’
rather than flogging its ayurvedic lineage alone. Confining to the ayurvedic
platform is restrictive
as the domain could only be stretched to a certain level and not beyond.
Dabur’s portfolio seems like the periodic table in chemistry; The Company had a
brand
profile which was proliferating and undisciplined. The top management team at
Dabur put together a new brand architecture which will form the basis for all new
launches. This is a step in the right direction. Dabur should avoid the tendency to
go for lengthy brand extensions. Moreover an Integrated marketing approach
should be adopted for maximum efficiency and clarity in the mind of the consumer
as to what the company is communicating.

Channel of Distributions:

This is the second most important marketing mix as the FMCG sector is concerned.
Only those
Channel of distribution: should be chosen that are fast, efficient and cost
effective. More over it
should convey and should strategically fit with the companies overall strategic
objective. It should
follow intensive distribution for Hair care, Home care, Health supplement and food
division. The
Skin and baby care should have either selective or exclusive distribution

Product:

~ 46 ~
Dabur should continue with its practice of coming out with new variants to fill in
the need gap.
Moreover the packaging should be sensitive to the geographic diversity and should
include details in local language. More over the brand name should such so as to fit
with the local culture.

Pricing Policy:

Dabur should follow an integrated pricing approach matching the brand positioning
and
strategic objective to be achieved. At the same time the prices should be close to
the
average market price of the category. It needs to work more on building it brand
Identity
before it can charge premium price.
For the Health supplement segment, Home Care segment and food division
segment, the company should try to find out the price sensitivity of their products
through market
research. Since the objective is to increase market share, in case of price
sensitive
products, Dabur will have to have price lower than competitors. If the competitor
reduces
prices it should promptly reduce prices while if the competitors raises prices it
should be
slow to react. For price insensitive products, pricing should be based on overall
positioning strategy appropriate for the brand.
In the Hair care segment, oral care segment Dabur should follow essentially pricing
policies which are reactionary in nature.
In the Skin care and Baby Care segment, the strategy which is followed is that of
of
market Nicher. So, Dabur should set premium prices in order to achieve this
objective.

~ 47 ~
 Chapter 4:
CONCLUSIONS &
RECOMMENDATION

~ 48 ~
4.1 Summary

It was really a very great experience to study this FMCG Company “Dabur India
Limited”. After going into all its aspects i.e., its marketing strategies, policies,
pricing strategies etc. we can conclude that the company is excellent on all the
fronts. The company’s different projects like Sundesh and its social initiatives in
Nepal etc. indicates that the company is also loyal towards the society, and all such
social responsibilities are very necessary to build a strong customer base and
brand loyalty

Through its comprehensive range of products it touches the lives of all consumers,
in all age groups, across all social boundaries. And this legacy has helped them
develop a bond of trust with our consumers. That guarantees us the best in all
products carrying the Dabur name. Dabur has strong distribution network. Dabur is
the Fourth largest FMCG Company of India. Dabur is one of the most trusted
brands.

The case deals with the restructuring initiatives Dabur took in the early 2000s. In
order to cater to a wider audience, Dabur decided to reposition itself as an FMCG
company with an herbal plank, moving away from its earlier image of an Ayurvedic
medicine manufacturer. In order to convey a new vibrancy, the company has
adopted new product offerings and new packaging. Dabur's promotional campaign
includes leading Bollywood actors and sports Stars. Dabur moved away from an
umbrella branding strategy and went in for individual branding. It pruned products
which were not aligned with its brand architecture. It also took concerted steps
towards geographical expansion to international markets, and within India, focused
on regions like southern India, which it had earlier neglected. The company's
revenues in 2004-05 reveal that the changes undertaken by the company have
started showing results. Though Dabur diversified into number of areas, the image
of Dabur was that of an Ayurvedic company. In the public perception, Dabur
products were associated with the 35-plus age group. With almost seventy percent
of India's population below 35, it appeared that Dabur would be missing out on this
mass market, which also had high disposable income.

~ 49 ~
4.2 Suggestions And
Recommendations

 Focus on growing core brands across categories.

 Reaching out to new geographies areas

.
 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 center: On the lines of Marico’s Kaya Skin Clinic, Dabur
could start a venture called Vatika hair care center 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.

 Be a professionally managed employer of choice, attracting, developing

and retaining quality personnel.

 Build a platform to enable Dabur to become a global ayurvedic leader

~ 50 ~
 4.3 Limitations Of The Study

 Due to time constraint, the detailed analysis of the topic could not be done.
The project has been prepared in a manner to provide an overview of the
topic.

 The information used in the project is collected from secondary resources as

the primary resources are not easily available.

 In this project, mainly 4-5 years data has been taken to compare and evaluate
the effect of marketing & promotional strategies on the performance of the
organization.

~ 51 ~
 Chapter 5:
Bibliography

~ 52 ~
5.1 Bibliography & References

 www.dabur.com

 Philip Kotlar, Marketing Management ; Analysis Planning & Control; Prentice

Hall, 9th Edition

 Saxena Ranjan, Marketing Management; TATA McGraw Hill, 4th Edition,

2000.

 Dr. R.L. Varshney & Dr. S.L. Gupta, Marketing Management; An Indian

Perspective; Sultan Chand & Sons Education Publishers, New Delhi; 2nbd Ed.

2001.

 Cravens & Hills & Woodruff, Marketing Management; A.I.I.B.S. Publishers &

Distributor, New Delhi, 4th Ed., 2003.

 Gupta Santosh, Research Methodology & Statistical Technique; Deep & Deep

Publication, New Delhi, Ed. 2002.

 V.S. Ramaswamy & S. Namakumari, Marketing Management; MacMillian India

Ltd., 2nd Ed.

 Batra Rajeev & John G. Myers & David A. AAKER; Prentice Hall, 5th Ed. 2003.

~ 53 ~
  Kothari C.R. Research Methodology; Method & Techniques, Wishwa

Prakashan, New Delhi, 2nd Ed.

6. Sample Questionnaire

NAME:

AGE:

GENDER: Male Female

1. What is the profile of a typical consumer?

High Income Middle Income Low Income

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

Brand Loyalty Price

Availability No Reason

3. Which brands of Chyawanprash do the retailers stock as per consumer

preference?

Zandu Himani

Baidyanath Dabur

4. Which brand of Hair Oil do consumers use?

Parachute Dabur Vatica

~ 54 ~
 Nihar Navratan Hair Oil

5. How many people are aware of Dabur and other competitive brands?
Zandu Himani

P&G Dabur

6. What schemes does a consumer prefer most?

Price Discount 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. How did the customers come to know about the brand DABUR?

TV Internet

Word Of Mouth Print

10. If your brand is not available you would?

~ 55 ~
Purchase another brand Wait for it to be available

Go for a substitute Buy what is offered by the retailer

~ 56 ~