Dissertation Report On
‘Marketing strategy of Dabur Vatika Hair Oil & Dabur Chyawanprash’
Under the Guidance of Prof. Bikram K Dutta & Prof. Sartaj Khera
Submitted by: Saurabh Kumar Roll no. 20080276 ______________________________________________________
Sri Sharada Institute of Indian Management - Research
Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, Vasant Kunj, New Delhi – 110070
Tel.: 2612409090 / 91; Fax: 26124092 E-mail: email@example.com; Website: www.srisim.org
Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
often fail to express one’s feelings of
gratitude and indebtedness to one’s benefactors, but then it is the only readily available medium through which the undersigned can express their sincere thanks to all those who are associated with the work in one way or another.” A project can never exist and thrive in solitude. Project work is never the work of an individual. It is more a combination of use, suggestion and contributions and work involving many individuals. This project also bears the impact of many people. Thus, one of the most pleasant parts of writing this report is the opportunity to thank all those who have been active part in it. I am thankful to PROF. BIKRAM DUTTA for his vital inputs and valuable suggestions and continuous guidance, which have gone a long way in providing necessary impetus to our efforts in consummating this report. I am thankful to our professors from Marketing department for their vital inputs regarding the project work. I am also thankful to friends who
helped me in understanding of the topic given in an easier way.
TABLE OF CONTENT
1.1 1.2 1.3 1.4 1.5 1.6 1.7 Executive Summary FMCG Sector Overview Company Overview
Company History Product Line of Dabur SWOT Analysis
Chapter-2 Objective & Methodology
2.1 2.2 2.3 2.4 2.5 Overview of Hair Oil Segment Overview of Vatika STP Analysis of Vatika Hair Oil Marketing Mix of Vatika hair Oil Advertising 4
Competitor Analysis of Vatika Hair Oil
Chapter-3 Conceptual Discussion (Theoretical Backdrop & Literature Review)
3.1 3.2 3.3 3.4 Customer Questionnaire of Vatika Hair Oil Customer Survey Results of Vatika Hair Oil Retailer Questionnaire of Vatika Hair Oil Retailer Survey Results of Vatika Hair Oil
Chapter-4 Data Analysis
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 STP Analysis of Dabur Chyawanprash Marketing Mix of Dabur Chyawanprash Competitor Analysis of Dabur Chyawanprash Customer Questionnaire of Dabur Chyawanprash Customer Survey Results of Dabur Chyawanprash Retailer Questionnaire of Dabur Chyawanprash Retailer Survey Results of Dabur Chyawanprash Ansoff’s Product Market Expansion Grid The BCG Growth-Share Matrix The New Dabur Entity The Future of Dabur con
Chapter-5 Findings and Recommendations
5.1 5.2 Recommendations References
In the very first year of its launch it crossed Rs. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent.
. SWOT Analysis etc. Vatika has come to be amongst the company’s highest selling brands. clinical studies and consumer awareness. Over the years. Ansoff’s Product Matrix Expansion Grid. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development. but is an attempt to analyze the marketing mix of Dabur Vatika Hair Oil and Dabur Chyawanprash. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd.EXECUTIVE SUMMARY This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. The product is essentially a health supplement. 100 million in turnover. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles. The report also enlists various recommendations based on BCG Growth Share Matrix analysis.
OBJECTIVE OF THE STUDY Following are the major objective of study:1. To study the impact of Budget Policies on Marketing Strategy of Dabur Foods. To study the problems faced by Dabur. but an overall idea could be developed. Buying behavior. 2. but the aim of this study is to develop the ability of decision making. So the way a problem is solved right decision making and knowledge of different types of making activities give much importance to the study. To study the Consumer. 3. which arise in practical field. This study gives an idea of all marketing activities.
. Only to study business administration course knowledge is not the solution of the problems. A right decision at right time and right place itself helps an organisation to run smoothly. There is a certain formula for any particular problem. Only in two month training it was not possible to understand it so deeply. IMPORTANCE OF THE STUDY Being student of MBA it is very essential for me to have a practical knowledge in an organisation.
'Bird of Gold': The Rise of India's Consumer Market. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The survey showed that in addition to the emerging markets of Indonesia and India. presents an opportunity to makers of branded products to convert consumers to branded products. particularly the middle class and the rural segments. India ranks second in the Nielsen Global Consumer Confidence survey released on January 7. It has a strong MNC presence and is characterized by a well-established distribution network.1 billion. intense competition between the organized and unorganized segments and low operational cost. With 200 million people expected to shift to processed and packaged food by 2010. According to a study by the McKinsey Global Institute (MGI).
.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. hair wash etc in India is low indicating the untapped market potential. skin care. Availability of key raw materials.4 billion in 2015.1 billion in 2009 to US$ 33. toothpaste. Penetration level as well as per capita consumption in most product categories like jams. Burgeoning Indian population. 2010—an indication that recovery from the economic downturn is faster in India with consumers more willing to spend. eight of the top ten most confident markets in The fourth quarter of 2009 came from the Asia Pacific region. moving up from its 2007 position as the world's 12th largest consumer market. India needs around US$ 28 billion of investment in the foodprocessing industry. Indian incomes are likely to grow three-fold over the next two decades and India will become the world's fifth largest consumer market by 2025. Growth is also likely to come from consumer 'upgrading' in the matured product categories. The FMCG market is set to treble from US$ 13.
According to Pradeep Kashyap. the country is witnessing the creation of many new markets and a further expansion of the existing ones.Demand for personal care products such as shampoos. despite the economic slowdown. India's fast moving consumer goods (FMCG) sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. chief executive officer of MART Rural Solutions.1 billion by 2009-10 and trebling it to US$ 271. toothpastes and hair-oils grew faster in rural areas than urban areas during AprilSeptember 2009. as per the numbers released by market researcher AC Nielsen. As socio-economic changes sweep across India.
. The Ministry of Food Processing Industries is also planning to double the market size of the food processing industry to US$ 165.According to a FICCI-Technopak report.8 billion by 2014-15. speaking at the Calcutta Management Association Rural Marketing Meet. a period that includes the peak monsoon months. over 300 million people would move up from the category of rural poor to rural lower middle class between 2005 and 2025 and rural consumption levels are expected to rise to current urban levels by 2017. The report states that implementation of the proposed Goods and Services Tax (GST) and the opening of Foreign Direct Investment (FDI) are expected to fuel growth further and raise the industry's size to US$ 47 billion by 2013 and US$ 95 billion by 2018.
The questionnaire was of multiple choices and the pattern of questions was as simple as possible. With every question.RESEARCH METHODOLOGY
As the purpose of the project report is to analyses the consumable products successfully launched in the last three years. & Personal -interview retailers. brochures and also through the internet. In order to amplify the empirical findings from primary and secondary sources. which the company has furnished for the general public. there is more control over data gathering activities. The secondary data was gathered with the help of various magazines. journals. Moreover. a survey was conducted both of consumers and retailers Distributor & Wholesalers in order to gauge the market opinion. The questionnaire technique was structured and not disguised as the questions followed one pattern and reason behind the questionnaire was stated properly. It was handed personally by me to the respondents to be analyzed. For secondary sources no field work was employed. I proceeded with the drafting of the questionnaire for consumers was structured as undisguised.
. multiple choices were given and respondents were asked to select one of them. For primary data.
Secondary data was also collected personally by me. c) d) Questioning is usually faster and cheaper. The data was collected both with the help of primary as well as secondary sources. The questionnaire method was useda) b) To get first and relevant and unbiased information Questionnaire provides versatility and solutions can be obtained by just asking the questions. newspapers. All the questions were directly related to the subject.
Sample size for customers were 100 in number and the universe comprised of all the consumers within the geographical region of Delhi. The statistical technique such a Pi-chart and percentages were used in analyzing and interpreting the data. have all caused rapid growth and change in demand patterns. Rapid urbanization. 3) Sample size for Distributor & Wholesaler were four in number & the universe comprised of all the consumers within the geographical region of Delhi. Aspiration levels in this age group have been fuelled by greater media exposure. 1. unleashing a latent demand with more money and a new mindset. The questionnaires were distributed to the respondents and the data was collected through primary and secondary sources. No other field work was employed to gather the information. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. leading to an explosion of new opportunities. 2.For Dabur Chyawanprash and Vatika hair oil.
. Sample size for retailers were 20 in number and the universe comprised of all the consumers within the geographical region or Delhi. increased literacy and rising per capita income.
Its brands are built on the foundation of trust that a Dabur offering will never cause one’s harm. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). Dabur is an investor friendly brand as its financial performance shows. While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple. the Dabur brand has stood for goodness through a natural lifestyle. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle. and which has an annual turnover of over Rs 15 billion. Dabur has consistently ranked among India’s top brands. it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally. The trust levels that this brand enjoys are phenomenally high. while managing not to alienate earlier generations of loyal customers. An umbrella name for a variety of products.
Over its 120 years of existence. There’s a great sense of responsibility for investors’ funds on view. ranging from hair care to honey.
97 235.77 386.93 189.42 696.12 118.46 185.64 309.12 -38.40 441.27 18.08 317.54
Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (lacs) 319.92 86.94
Net current assets
Current assets.15 8650.26 270.51 651.25 468.26 270.77 210.90 57.18 175.03 227.23 65.32 51.02 5733.48 174.76 67.64 877.82 153.73 285.17 16.Financial Analysis Review
.05 467.62 2864.33 390.23 1.26 130.45 308.68 324.19 171.87 468.35 9.71 232.17 576.45 8.16 -81.25 8628.72 877.81 5.33 3.FINANCIAL REPORT Balance sheet
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 86.35 253.95 545.84 234.01 397.43 43.82 610.54
Uses of funds
Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 518.01 19.07 275.44 32.30 168.78 379.17 16.43 190.28 0.35 335.71 145.45 0.23 142.77 278.77 13.46 135.20
Report title: Dabur India Limited .99 205.26 422.75 13.29 316.82 422.35 15.24 8640. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 973.12 46.12 182.37 404.97 276.43
Secured loans Unsecured loans Total 8.57 -33.24 545.73 19.54 28.70 32.35 328.81 386.99 80.69 86.52 19.
health care products. Global Market Directs Financial Analysis Review is an essential source for data. financial position and efficiency ratios. Understand and respond to your competitors business structure. analysis and insight into Dabur India Limited . The report provides information regarding key data. It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. It examines the companys business structure and operations.Reasons to buy A quick one-stop-shop to understand the company. It markets its products in India as well as in International markets as Middle East.from Global Markets Direct . products and services. home care products and foods. Source: Global Markets Direct
COMPANY HISTORY 14
. Dabur also offers ayurveda-based healthcare products. Product portfolio offered by the company includes personal care products. Ratios include profitability. strategy and prospects. 2009 Dabur India Limited Financial Analysis ReviewSummaryDabur India Limited (Dabur) is a consumer care and health care products company. Get an in depth understanding of companys recent and historical financial performance. South-East Asia. It also provides key financial ratios for the company. details on key executives and the major locations and subsidiaries of the company. liquidity and leverage. products and services. and key suppliers and competitors. the European Union and America.Scope The report includes key company information such as business description. margins and returns. Get the latest metrics on companys performance. Support sales activities by understanding your customers businesses better Qualify prospective partners and suppliers. Africa.Company Reports 16 page report published Sep 15.
PRODUCT LINE Foods • • • • • • • • Real Real Activ Hommade Lemoneez Capsico Shankha Pushpi Dabur Balm Sarbyna Strong
Personal Care Hair Care Oil • • • • Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla
Hair Care Shampoo • • • • Anmol Silky Black Shampoo Vatika Henna Conditioning Shampoo Vatika Antidandruff Shampoo Anmol Natural Shine Shampoo
Oral Care • • Dabur Red Gel Dabur Red Toothpaste 15
• • •
Babool Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush
Skin Care • • Gulabari Vatika Fairness Face Pack
Keo Karpin.SWOT ANALYSIS OF DABUR
STRENGTHS • Strong presence in well defined niches( like value added Hair Oil and Ayurveda 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
WEAKNESS • • • • • Seasonal Demand( like chyawanprash in winter and Vatika not in winter) Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd of the total market(Vatika)
OPPORTUNITIES • • • • • • Untapped Market(Chyawanprash) Market Development Export opportunities. baidyanath and Zandu for Dabur Chyawanprash and Marico. HLL and Bajaj for Vatika Hair Oil) • • New Entrants Threat from substitutes (like Bryllcream for Vatika hair oil)
. Innovation Increasing income level of the middle class Creating pattern additional consumption
THREATS • Existing Competition( like Himani.
9. Over the years.
OVERVIEW OF VATIKA: The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. 13 billion with coconut hair oils as the prime segment at Rs. In 2009. the total annual sales of Vatika products 18
. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later. ethics. In the very first year of its launch it crossed Rs. of the numerous prescriptions none is more universally accepted than the oiling of hair for nourishment and use of home-made concoctions of henna and shikakai paste for conditioning them. in 2000. From the company’s perspective. long lustrous hair – a commonly accepted definition of beauty in Indian society. mothers spend endless hours teaching their daughters what their mothers had taught them about maintenance of their natural beauty – taken primarily as caring for the skin and hair. Of the branded market. With its innovative offerings.1 billion. 1. Yet the popular iconography of Indian beauty still associates them with beautiful fair skin and dark. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. fashions and styles in a remarkable way. 100 million in turnover. In the hair care regime. It would come as a surprise to only a few that hair oils have a penetration of almost 98%. the brand aims to become a frontrunner in the market for hair care and skin care products.OVERVIEW OF THE HAIR OIL SEGMENT In the last quarter of the previous century Indian women have imbibed global mores. Vatika is expected to continue to drive its growth in the years to come. brand sales crossed Rs. hair oils form a major chunk accounting for Rs.000 million. Across the country. Vatika has come to be amongst the company’s highest selling brands. by Vatika Anti-Dandruff Shampoo. Currently.
Vatika Hair Oil enjoys a 6. multi-faceted. POSITIONING ‘Total hair Care’ brand: The product innovation was fed by the vital consumer insight that many women in contemporary India are worried about hair problems. today.000 million. Since the product was expensive it could mainly cater to the urban market as opposed to the rural market where consumers are highly price sensitive. stands as the preferred and trusted brand of 11. the product was targeted towards the young. Of this. achievement-driven and confident women who were positioned as the Vatika Woman. This meant that the segment of the market that dabur wanted to cater to was the premium segment which valued nourishment of the hair above the price and it tried to attend to that segment which was not price sensitive.
MARKETING MIX OF VATIKA HAIR OIL 19
.are over Rs. It targeted the high income urban category of hair oil users. contemporary. educated. 1. henna and lemon extracts.
STP ANALYSIS OF VATIKA HAIR OIL
SEGMENTATION Vatika Hair Oil was launched at an almost 100% premium to the market leader. Vatika has not just been successful in garnering a premium image but.4% market share in the coconut hair oil category. TARGETING This was in line with its proposition and overall brand strategy of a premium upmarket product targeted for individual needs as opposed to the collectivist culture of the category. Being positioned as having amla.1 million users (Source: IRS Household Data).
pricing strategy. In the marketing mix of Dabur. The mix shall be analyzed as followed: • • • • Product Price Place Promotion Product • • • • • • Product Variety Quality Design Features Brand Names Services • Price • • • List Price Discount Financing Schemes Credit Terms • • • Promotion • Advertising Promotion Public Relations Sponsorships Internet Marketing Place & • • • Channels Location Inventory
. we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil.Vatika Hair Oil has made a huge impact with its innovative product offering. easy availability and promotion campaigns.
Vatika broke the norm with its white and green bottle with a mushroom cap. Coconut hair oil provides nourishment to the hair. used in its packaging. Starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product offerings.PRODUCT:
Brand Name: Vatika in Hindi means ‘garden’. reflect the brands’ natural ancestry and give it a premium look. The brand attempts to live up to the promises – beauty and nature – that are associated with its very name. In a category dominated by blue packs as analogous of pure coconut oils. harar. bahera. Innovative product offering: Vatika Hair Oil is coconut hair oil with special ingredients adding value to the product. kapurkachari. amla and lemon have been used for special hair needs. These also help Vatika stand out in the cluttered environment of Indian retail. it also contains other natural ingredients like brahmi. amla and lemon. Amla strengthens hair roots and helps maintain their natural health and thickness. thereby maintaining its natural colour. Packaging: The qualities of Vatika products. While coconut oil has been regularly used by Indian women as a basic hair nutrient.
. ascribed to the brand by hundreds of thousands of satisfied consumers. have been further underlined by its attractive packaging. the mother brand being Vatika Hair Oil. The green-and-white colours. Apart from henna. while henna along with other herbs coat the hair and protect it from oxidation. neem. a combination of herbs and natural products such as henna. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. dugdha and sugandhit dravyas.
amla and lemon in a pure coconut oil – broke this myth when it launched at almost a 100% premium to the market leader.
The table above shows that Dabur Vatika is one of the highest priced of hair oils since it targets the higher income class and also that the prices have remain
unchanged since 1999. 150 ml.
. Vatika Hair Oil with its value added proposition – henna. PRICE: In the traditional coconut hair oil category. 300 ml
Flip cans were introduced for the winter season. even with such a pricing strategy it was able to garner a significant share from the leader in the very first year of its launch. which presumably had price sensitive consumers. Quality: Vatika products contain natural ingredients that have been blended together through scientific processes at Dabur’s in-house research laboratories.Available in: Bottles Flip cans 75 ml. 300 ml 150 ml. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards.
000 distributors who service the entirecountry through a wide marketing network.PRICE/QUALITY MATRIX
Price→ Quality ↓ Luxury Segment High VATIKA Overpriced Middle Average Ideal For Penetration Premiere Offering Real Bargain High Middle Low
Vatika products including Vatika Hair Oil are sold in 38 countries through more than 15 lakh retail outlets and 5.
Dabur’s distribution network extends beyond India in the following countries as well:
North & South America Australia Asia Middle East
• • • •
. Vatika was firmly established as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika. the marketing objective was to create conceptual awareness about the new product – the goodness of coconut oil enriched with natural herbs. Creating conceptual awareness: In the initial phase of the communication. The company realized early that.PROMOTION:
Vatika – the key focus brand of the company – has always been well supported.
. amla and lemon-derived additives. from the perspective of brand building. it was vital to invest in this brand. Vatika Hair Oil’s first promotion: It focused on the key benefit – beautiful hair without hair problems – that came about as a result of the extra nourishment through the value addition of henna.
is a pioneer in the light hair oil category. Dabur is one of India's largest players in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884. Bajaj. HLL which together with Dabur have about 64% of India's domestic market. Emami.COMPETITOR ANALYSIS The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin. Overall it has a share of 4% in hair oil market. and had grown to a business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%. The pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant presence in eastern and western India. Marico. a fifty-year old brand. Besides. Its share is 6% of the total hair oil market. Bajaj has two flagship oil brands . Emami has existence in hair oil market through Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil.Bajaj Brahmi Amla and Bajaj Almond Drops — currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. We have tried to analyse the competition for Dabur in the Hair Care segment as follows:
Keo Karpin. the company has also decided to enhance its retail 26
not only in the urban sections of India but also in the rural sector. which will help us to study the consumer perception for hair oil. Overall it has a market share of 4% in hair oil market. Which brands of hair oil are you aware of? • • • • • • • • • • Parachute Keo Karpin Nihar Hair And Care Dabur Vatika Parachute Keo Karpin Nihar Hair And Care Dabur Vatika 27
2.DABUR VATIKA HAIR OIL Dear Respondent. a market leader in its category. Thanks for sparing few minutes to fill this questionnaire. The brand has a huge loyalty. 1. Which brand of Hair Oil do you use?
. CONSUMER QUESTIONAIRRE.presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Any information provided by you will strictly be used for Academic Purpose. Clinic plus Hair Oil and All Clear Clinic Hair Oil. Parachute's primary target has been women of all ages. Overall it has a 3% share in hair oil market. It has a market share of 28%. Marico’s Parachute is premium edible grade oil. HUL has two products. In fact over time it has become the gold standard for purity. Parachute is positioned on the platform of purity. Synonymous with pure coconut oil in the market.
? • • • • Purchase another brand Wait for it to be available Go for a substitute Buy what is offered by the retailer
7.. Where would you rate your brand on a scale of 1 – 5 (5 being highest)? • • • • • 1 2 3 4 5
4. Which pack size do you prefer? • • • 75 ml 150 ml 300 ml 28
. How did you get to hear about this brand? • • • • 6.3. TV Internet Word of Mouth Print
If your brand is not available you would. What are the primary reasons for which you use this particular brand? • • • • Non sticky Brand Loyalty Fragrance Price
000 (3) Rs. 50. 10. 10.000
.000 (4) Above Rs.000 – Rs. 30. Are you satisfied with your brand? • • Yes No
Personal Information:Age: Location: Income (per month): (1) Rs.000 – Rs. 30.8. 50. How often do you buy? • • • Once in 15 days Once a month Once in two months
10.000 (2) Rs. On what parameters do you choose this pack size? • • • • Availability Price Family size Storage
9. 1.000 – Rs.
5 3 2.5 2 1.5 1 0.CUSTOMER SURVEY RESULTS DABUR VATIKA AWARNESS LEVEL
100 80 60 40 20 0 PARACHUTE NIHAR DABUR VATIKA
40 35 30 25 20 15 10 5 0
4 3.5 0 PARACHUTE NIHAR VATIKA
which will help us to study the consumer perception for the Hair Oil category that we have chosen to study. What is the profile of your typical consumer? • • • High income Middle income Low income 31
. Thanks for sparing few minutes to fill this questionnaire. Which brands of Hair Oil do you stock? • • • • Marico HLL Keo Karpin Dabur Vatika
2. Out of these which are the most preferred? • • • • Marico HLL Keo Karpin Dabur Vatika
3. 1. Any information provided by you will purely and strictly be used for Academic Purpose only.RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL Dear Respondent. According to you what are the reasons for customers’ preferences? • • • • Brand loyalty Price Availability No reason
does in-store advertising have an affect on the consumers’ preference? • • Yes No
8. What schemes are you offered by the companies? • • • Price discounts Buy one get one free Others
6.5. According to you. What schemes does a consumer prefer most? • • • Price discounts Buy one get one free Others
7. Does a change in price affect their preferences? • • Yes No
Personal Information:Location of store:
Which brands of Hair Oil do you stock?
80 70 60 50 40 30 20 10 0 marico hll karrpikeo karpin vatika
2. According to you what are the reasons for customers’ preferences?
50 40 30 20 10 0 brand loyalty price availability no reason PERCENTAGE
. Out of these which are the most preferred?
50 40 30 20 10 0 marico hll karrpikeo karpin vatika PERCENTAGE
3.RETAIL SURVEY RESULTS DABUR VATIKA 1.
These two ads compliment each other and connect very well with the targeted consumers
. competitive youth. For the growing kids: In today's competitive environment.STP ANALYSIS OF DABUR CHYAWANPRASH
SEGMENTATION Dabur Chyawanprash is the market leader in the Chyawanprash segment. The segments that it considers are growing kids. meets his moment of truth when outperformed by a young Chyawanprash user. housewives. Dabur Chyawanprash (DCP) is now targeting adults. Vivek. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle. His final conversion from a non-user to a Chyawanprash user connects with the Youth. It comes under the category of health supplements. thus reaching out to kids.This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient. For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy. TARGETING Traditionally. who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him. ever busy housewives and the aged. youth and kids . chyawanprash was supposed to be a health supplement for the aged and kids. the children are under high pressure to excel.
pricing strategy. we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash.MARKETING MIX OF DABUR CHYAWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering. In the marketing mix of Dabur. The mix shall be analyzed as followed: • • • • Product Price Place Promotion Product • • • • • • Product Variety Quality Design Features Brand Names Services • Price • • • List Price Discount Financing Schemes Credit Terms • • • Promotion • Advertising Promotion Public Relations Sponsorships Internet Marketing Place & • • • Channels Location Inventory
. easy availability and promotion campaigns.
fighting aging through anti-oxidant property. Dashmul. relieving stress. Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. Akarkara etc.
The figure above shows the evolution of the packaging of Dabur Chyawanprash. Dabur Chyawanprash helps in stimulating immune system. clinical studies and consumer awareness.PRODUCT Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. It is these properties that make Dabur Chyawanprash a preferred choice for its users. Known as the “elixir of life”. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immuno-stimulant.
. Packaging: Ashwagandha. improving lung function. fighting respiratory infections & building resistance to disease. Hareetaki. improving stamina. • Special Vishwast fortified with additional health beneficial herbs like Keshar. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development. Ghrit and several other herbs and herbal extracts. The product is essentially a health supplement. Ingredients of Dabur Chyawanprash • Vishwast Amla.
Chyawanprash everyday.. 38
.the big brother also dives in Not to be left behind. “Zaroorat hai!” and starts running. . Zandu and Himani. the river but ultimately stops
COMPETITOR ANALYSIS The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath.. which together with Dabur have about 85% of India's domestic market.Advertisement showing Vivek Oberoi
A little boy suggests his brother to have Dabur To which the brother replies.
Running with super energy the boy dives into the river.. “Mujhe iski kya zaroorat?
The boy asserts..
The big brother follows him but is unable to catch him using every way.
but the pharmaceutical division was separated off about 30 years later). but also provides Chyawanprash and other health products. though only a portion is involved with Ayurvedic products.Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows:
Sri Baidyanath Ayurvedic Bhawan Ltd. named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930. and specializes in Ayurvedic medicines. one of its international products is Shikakai (soap pod) Shampoo. The Emami Group. doing 110 million dollars of business annually. Its Chyawanprash has a market share of 10%. (Baidyanath for short) was founded in 1917 in Calcutta. Dabur Chyawanprash (herbal honey) has a market share of 61%. pharmaceuticals were added. through its Himani line. provides a diverse range of products. Zandu Pharmaceutical Works was incorporated in Bombay in 1919. founded in 1974. Its market share is 12%.
. though only a fraction of that is involved with Ayurvedic medicine. the company is mainly involved with toiletries and cosmetics. though it has recently expanded into the FMCG sector with cosmetic and hair care products. It was established in 1884. and had grown to a business level in 2003 of about 650 million dollars per year.
Which brand of Chyawanprash do you use? • • • • Zandu Himani Baidyanath Dabur
3. Any information provided by you will strictly be used for Academic Purpose.CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH Dear Respondent. Thanks for sparing few minutes to fill this questionnaire. Where would you rate your brand on a scale of 1 – 5 (5 being highest)? • • • • • 1 2 3 4 5
4. What are the primary reasons for which you use this particular brand? • • • Health Brand Loyalty Taste 40
. which will help us to study the consumer perception for chyawanprash. Which brands of Chyawanprash are you aware of? • • • • Zandu Himani Baidyanath Dabur
How did you get to hear about this brand? • • • • TV Internet Word of Mouth Print
6.? • • • • Purchase another brand Wait for it to be available Go for a substitute Buy what is offered by the retailer
7. If your brand is not available you would. How often do you buy? • • • Once a month Once in two months Once in six months
10. On what parameters do you choose this pack size? • • • • Availability Price Family size Storage
9. Which pack size do you prefer? • • • 1 kg 500 gm 250 gm
5. Are you satisfied with your brand? 41
Yes No CUSTOMER SURVEY RESULTS DABUR CHYAWANPRASH
100 80 60 40 20 0 ZANDU HIMANI BAIDYANATH DABUR PERCENTAGE
60 50 40 30 20 10 0 ZANDU HIMANI BAIDYANATH DABUR PERCENTAGE
5 4 3 2 1 0 ZANDU HIM ANI BAIDYANATH DABUR
REASONS FOR SELECTING A PARTICULAR BRAND
70 60 50 40 30 20 10 0 HEALTH BRAND LOYALTY TASTE PRICE PERCENTAGE
HOW DID YOU COME TO KNOW ABOUT THIS BRAND?
80 70 60 50 40 30 20 10 0 PERCENTAGE
UNAVAILABILITY OF PREFERRED BRAND
40 35 30 25 20 15 10 5 0
PURCHASE ANOTHER BRAND
BUY WHATEVER SUBSTITUTE OFFERED BY RETAILER
RETAILER SURVEY RESULTS DABUR CHYAWANPRASH 1. Out of these which are the most preferred?
80 70 60 50 40 30 20 10 0 ZANDU HIMANI BAIDYANATH DABUR
3. According to you what are the reasons for customers’ preferences? 44
. Which brands of Chyawanprash do you stock?
100 80 60 40 20 0 ZANDU HIMANI BAIDYANATH DABUR PERCENTAGE
These are basically extensions to the MFG/PRO ERP system and not core customizations. and other MIS. and online cheque reconciliation has obvious advantages in the primary distribution. Dabur has an extensive supply chain and distribution network that has grown and spans 29 factories. automated banking of cheques. stockist’s credit limit control.000 SKU’s to several thousand stockists and dealers. and sales officers' performance. 45
. VSATs: This Success paved the ground for the company's supply chain initiative. MIS: An in-house developed. The integrated system allows each Area Manager to plan for the month's sales forecasts. banking. At some locations VPNs had to be used because it was not possible to set up a dish. 47 stocking points. a dozen manufacturing locations. Over 5. The features like tight integration of schemes.000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers. The integrated primary and secondary system has a number of unique features. The integration allows better control on pipelines in primaries and secondaries. easy-to-use. six mother-warehouses and over 50 Carrying and Forwarding Agents(CFAs) that distribute more than 1. stock. Intranet based data-warehouse displays asof-yesterday sales. Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs. receivables. 4 zonal offices. brings down inventories. stockists’ performance. Fiftyfive Ku Band TDMA VSATs were used to link primary distributors to the system.60 50 40 30 20 10 0 brand loyalty price availability no reason PERCENTAGE
DISTRIBUTION Supply chain: Dabur has steadily improved its procurement and distribution systems to achieve a significant reduction in material costs.
.and increase penetration. Schemes based on secondary volumes will help control secondary pipelines and sales. The idea is to increasingly shift focus from primaries to secondaries. The company plans to focus on Russia and CIS countries along with Afghanistan.
ANSOFF’S PRODUCT MARKET EXPANSION GRID
MARKET PENETRATION: The new campaigns. and by setting stocking norms and replenishing stocks to improve ROI of stock holders. Primary sales will therefore come from a resultant 'pull' from secondary replenishments.and offers better control on production and sales against a confirmed forecast. An international business division has been set up within the company to promote exports and it expects this business to grow steadily in the coming years. Vivek Oberoi. Dabur’s focus has been to increase the relevance of this time-tested and proven product in the family . sales order servicing can be improved by taking orders through the Internet. for the first time. gives an edge to the users and dispel the myth that it should be consumed in illness or is meant only for Children or the aged. with its ‘well . for the entire family.both for users and non users . Further. In their new campaign they have tried to establish the fact that Chyawanprash. featuring Amitabh Bachchan and. As a market leader. makes an aggressive attempt to establish the relevance of Chyawanprash in an increasingly tough and demanding lifestyle.being’ properties. MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for the future.
BOSTON CONSULTANCY GROUP’S GROWTH SHARE MATRIX
. The company has already been exporting hair oils. shampoos and Hajmola candies to Afghanistan.Indies and the Asia Pacific region. It has also entered the North American markets by appointing distributors and initiating marketing of products to the ethnic Indian segment. Dabur will hold a majority stake in this joint venture. Dabur is entering into a joint venture with a local partner to manufacture and market its products. In Bangladesh.
Within the FMCG business. Vatika shampoo. healthcare and FMCG exports. Dabur Honey. Hajmola.↓
In the past. The business has consistently generated high cash 48
. Pudin Hara and Dabur Lal Tail. Given Dabur's acknowledged strengths in ayurvedic healthcare. and Dabur Lal Dant Manjan. The family products portfolio boasts of quite a few market leading brands — Dabur Amla and Vatika hair oils. the FMCG business is Dabur's cash cow contributing over 70 per cent of Dabur India's current revenues. due to sluggish rural demand and intense competition from a host of regional brands and counterfeit products. Though in the recent years. the scope for expansion in each of these product baskets is considerable. Dabur India also has well-recognised brand names and an established distribution set-up in the healthcare business with brands such as Dabur Chyawanprash. Dabur India focusses on three key product groups — family products. the sheer diversity of Dabur's product portfolio has made an evaluation of the company's prospects quite difficult. However. Dabur's FMCG business contributes over 70 per cent of Dabur India's current revenues. However Dabur's operating profit margins have been more or less constant over this period. the growth from Dabur's FMCG portfolio has been sedate.
flows and called for minimal incremental investments.Vatika hair oil has a market share of 19% and Dabur Chyawanprash has a 61% market share and is the market leader. The overall growth in hair oil industry has been 7% whereas growth in branded coconut oil has been 10%. Both of these are therefore Dabur’s cash cow.
THE NEW DABUR ENTITY The New Dabur Identity modernizes the 100-year old equity of the 49
its trunk rising through the terrestrial world and its branches reaching into the heavens. wholesome and holistic brand. the tree appears well rooted. its branches and leaves. It is a giver of fuel. evokes a harmonious. while it adds a fresh. it now projects a contemporary image. as well as in the shade of its canopy. the entire image. a symbol of nature. the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy. being well-proportioned. well-balanced. the tree is regarded as sacred. commitment and stability through the form and colours of the tree. The tree is held auspicious as it spreads through the three spheres with its roots meshing through the earth. food and protection. Keeping these vital associations in mind. The new identity appropriates nature as the wellspring for Dabur. In India. The new Dabur identity retains these enduring and valuable attributes. This symbolism also occurs in cultures across the world. implying stability. Further. It also conveys that the brand stands for wellness across age groups. On a metaphysical plane.
Focus on growing core brands across categories. Taken as a whole. The tree. It is a heaven for creatures it generously harbors in its foliage. food and protection. in consonance with today's lifestyle.Dabur brand by subtly transforming the tree. It conveys Dabur's heritage. healthy and holistic dimension to the tree. Improve operational efficiencies by leveraging technology. Reaching out to new geographies. trustworthy and a symbol of fertility. 50
. While it retains the essence of the banyan tree. the tree is a symbol of life. within and outside India. is indelibly regarded as a provider of shelter. and its abundant canopy implies that it can provide amply for those who seek its produce and shade.
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe.
. etc. treatment for split ends. efficacious. More initiatives like “Dabur ki Deewar” to increase brand visibility. natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science. It could have hair care experts to solve hair problems. Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. straightening of hair. Position Dabur Chyawanprash as not more of a medicine but as something which is necessary for health. Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic. Provide consumers with innovative products within easy reach. Services could include dandruff treatment. It is an initiative to occupy shelf space.
As the strategies of the companies keeps on changing. so it is
better to stress on quality rather than on decreasing price to increase sales and profit. the ideal company will be the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget. This could be well attributed to dabur successful ATA (Availability.made’ and also US food giantssDel Monte are ready to hit the Chyawanprash
want quality benefit rather then Price benefit. Lack of publicity has hampered the growth progress of such as that of Chyawanprash by vednath. Ashwagandha. It is an expensive proposition requiring huge expenditure on advertising. Vatika hair oil has no major competition except an Australian Product Tobasco. On the analysis of survey it was found that target Market of
the brand so aggressive
advertising is needed to promote Chyawanprash and Vatika hair oil brand . the attributes most rated by the consumers. Within the market. As a new product so people are not able to digest it yet Dabur is getting 8 Crores from Vatika hair oil in which accounts for 4 Crores. Hareetaki. many food companies including Dabur got benefited from it. sponsorships and media. Taste and Affordability) marketing module.CONCLUSIONS
The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed Chyawanprash followed by Amla. The consumer’s patriotic love for tea and coffee is unfared. be it in Chyawanprash industry.
. Ghrit and several other herbs and herbal extracts. a company has to create perceptions and cover them into realities. it is safe to conclude that dabur has hit off rather well with the masses. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand. Lemoneez 1 Crore & others 3 Crores . Dabur has clearly lost it head start advantage and thereby acquiring just 35% of the market share while others enjoy rest of the market share. Chyawanprash are yet to establish their supplement use in the average household here in lies the great opportunities.The brands Chyawanprash with its ‘sonacahndi. Thus. ‘Minute. Dashmul. market very soon.
As Vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target market should use the Vatika hair oil and adopt it in making daily food thereby increasing the market share of Vatika hair oil.
com www.com www.com www.com www.com
.superbrandsindia.google.blonnet.dabur.REFERENCES Books: • Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller
Websites: • • • • • • www.net www.brandchannel.tutor2u.