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COMPANY’S PROFILE

DABUR INDIA LTD:


Established 1884, backed by Burman family Dabur India Ltd (DIL) has grown in stature
ever since its inception. Today it is India’s one of the leading FMCG company with revenue
to tune of 7680 crores and market capitalization of over 48,800 crores. Dabur has been
very much a household brand for most of Indians when it comes to Ayurveda and 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 brand for natural healthcare products, Vatika for premium personal
care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness
bleaches and skin care products.
As per today Dabur operates in below key categories:

 HAIR OIL
 ORAL CARE
 HEALTH CARE
 SKIN CARE
 HOME CARE AND FOODS

PGPM (2019-20)
GROUP-7(B)-KHANJAN SHAH - P192B024
HARSHAD MAHAJAN - P192B019
NITESH DEVGAN - P192B029
SIDHANSHI SHARMA - P192B069
PRERNA CHAHAL - P192B064
DABUR CHYAWANPRASH
Dabur has a well-established distribution network and extensive supply chain which
covers more than six million retail outlets. Dabur is a well-known brand in both rural as
well as urban markets in India. Dabur also has a well-established International presence
and its products available in 120 countries throughout the globe. Dabur started as a
Ayurvedic medicines company in 1884 and today it specializes in ayurvedic products.
Ayurveda teaches us that person’s mental, physical and spiritual being are all
interconnected and any imbalance between them will result into diseases. Dabur
realizes this fact and invest heavily into its research and development wing to produce the
best for customers.

PRODUCT PROFILE

DABUR CHYAWANPRASH:
DABUR CHYAWANPRASH

Dabur Chyawanprash
has three main products within
its Health supplement
category- Dabur Chyawanprash, Dabur Honey and Dabur Glucose. Health Supplement
category constitutes 17.2% of Dabur India’s FMCG market.

Dabur Chyawanprash is one of the Dabur’s flagship products with a market share of over
61% in 500 crore chyawanprash market. It has got a healthy lead in terms of competition
as it was one the initiator of the category to Indian market. Main ingredient of
chyawanprash is amla which rich in Vitamin C. It is a formulation of Ayurvedic herbs of
more than 40 types which helps us improve our immune system and hence protects body
DABUR CHYAWANPRASH
from common infections such as cough and cold, etc. It provides anti-ageing benefits,
enhances memory, complexion, and lends strength to all the sense organs.
Chyawanprash was formulated by Chyawan Rishi about 10,000 years ago in Vedic age
hence the name Chyawanprash.
Chyawanprash has tangy sweet-sour taste with a consistency of jam. It is suggested to
consume 1-2 teaspoon daily with a glass of milk, in winters with hot milk and in summers
with cold milk. Chyawanprash in India comes in the following variants:
 DABUR CHYAWANPRASH
 DABUR RATNAPRASH
 DABUR CHYAWANPRASH MANGO
 DABUR CHYAWANPRASH MIXED FRUIT
 DABUR CHYAWANPRASH CHOCOLATE
 DABUR CHYAWANPRASH SUGERFREE (SAFE FOR DIABETES)

SEGMENTING, TARGETING AND


POSITIONING ANALYSIS
DABUR CHYAWANPRASH
Segmenting, Targeting and Positioning becomes a very critical factor in marketing of a
product. If any of these has a flaw, then it will have direct impact on the sales of the
product.

SEGMENTATION

Dabur Chyawanprash has highest market share in chyawanprash market. For Dabur
everyone was in its target segment from young child to old age people. Initially it was
perceived that Chyawanprash is only for small kids and old people. Earlier it also targeted
only middle class mostly living in urban market. Now with gamut of branding and
marketing strategies it is now also targeting the young professional and housewives.

 For growing Kids: Kids are most prone to diseases. And if something can delay or
prevent that then there nothing like it.
 For young professional: In this fast-paced life if we if we can have something
which prevents diseases, that would be very beneficial
 Housewives: A housewife has to be fit herself to run the family smoothly.
 For Old people: With age people start having diminishing immunity and heath
condition. Chyawanprash is boost to their immunity and heath.

In short now Chyawanprash is targeting a critical segment of many markets that is the
family! It is dedicated to health and well-being of every family.

TARGETING
DABUR CHYAWANPRASH
As per the popular perception, chyawanprash was a health supplement for the aged and
kids. Dabur Chyawanprash (DCP) through its new line of branding and promotions are
trying target adults, housewives, youth and kids. Amitabh Bacchan is a household name in
whole of India and Dabur has cashed it into that fact. He was the brand ambassador for the
product for very long time. After him they have moved on to Mahendra Singh Dhoni (Indian

Cricketer) to attract the healthy life enthusiast. Anil Kapoor also did some campaigning for
them to target the old age people who are young at heart. And as per last check they are
having Madhuri Dixit who is their present brand ambassador. She is roped into to target
housewives and kids. All the people who have been roped in by Dabur have different set of
people who follow them for various reasons. Thus, Dabur is going all in to cash in on their
brand image to enhance and expand their brand image.

Thus, Dabur has very rightly realized the perception of people regarding its product and
have been consciously trying to change it and reach wider demographics of the population.

POSITIONING

Dabur has positioned its chyawanprash as something which can keep doctors at bay. Dabur
chyawanprash is a health supplement which boosts your immune system and keeps all the
diseases at bay. There it faces very little competition from its competitors and has
monopoly of sorts.

Dabur’s positioning is brilliant also because of its excellent supply chain network. It is very
evident and present in urban as well as rural markets very easily.
Additionally, with add campaigns like “Andar se strong”, “Zaroorat Hai”, and the ongoing
one” Double Immunity” all have had connect with the audience. They have made instant
connection with target market. Thus, clarity about where they want to stand in market has
been very precise.

SWOT ANALYSIS
DABUR CHYAWANPRASH

For a company to analyze its position in the market we perform SWOT analysis. SWOT
stands for Strengths, Weaknesses, Opportunity and Threats. SWOT analysis helps a
company decide on its future course also. It identifies the agendas where the company
lacks and where it has a upper hand.

Please find SWOT analyses for Dabur Chyawanprash as below:

STRENGTHS
 Strong brand presence of Dabur in Indian Market. Dabur has wide range of products
and they are India’s fourth largest FMCG Company. Brand Dabur is a very big
positive for all its products
 Extensive knowledge of Ayurveda. Dabur has spent millions in R & D of its products,
and it is believed to be market leaders when it comes to capturing Ayurveda and its
essence in true sense. Dabur started with being Ayurvedic Medicines Company.
Thus, they are market leaders when it comes to ayurvedic products.
 A strong and well-established distribution network which has reach of over six
million retail outlets. Thus, reaching any urban or rural for a Dabur product is very
easy.
 An extensive supply chain which understands the length and breadth of the country
like very few in the country.

A top brand like Dabur has its own advantages. A clean brand image and financial capacity
to run any marketing and promotion activity. With well-established research and
development facilities provides a perfect platform to innovate any product. Dabur is also
well versed with knowledge of Ayurveda which their source of income. With lineage of 135
years Dabur has developed an efficient operations network.

WEAKNESSES
 Seasonal demand. Demand increases in winter and reduces during summers.
DABUR CHYAWANPRASH
 Low penetration as in certain regions such as south India as well as demographics
apart from growing kids and aged people
 There is lack of brand stores as such for Dabur as a brand.
 There is very limited awareness regarding Ayurveda and its products. Most of the
people don’t quite have idea regarding the powers of Ayurveda

It is very common public perception that disease prevention supplement will be useful only
in winters. Thus, during winters chyawanprash sales are on the rise while it declines
during summer. There is lack of brand stores such as for Dabur. Its products are sold with
others firms products. “Dabur ki Deewar” was unique concept which did try to deal with
this weakness. More such initiatives are required to distinguish Dabur from its
competitors.

OPPORTUNITIES
 Untapped market in terms of certain parts of country like south India especially and
demographics
 To create additional consumption of the existing market.
 Innovation in product. Different flavors have introduced but it didn’t have that
much impact on sales. An innovation in product form is something which can help
chyawanprash reach more people
 To promote Chyawanprash not as a medicine but a necessity for healthy lifestyle
 Promoting Ayurveda and its benefits to people and in return improve the market.

Dabur chyawanprash needs to make big inroads into south India market. There are certain
local players to deal with. Market penetration should be again a big part of their goals list.
Apart from that innovation in product form is the need of the hour. There should be some
alternative developed for the people who don’t like the jam like consistency of the
chyawanprash. It can be powder form which can be mixed with milk or tablet which is
equally efficient as the present chyawanprash. One more thing where they can from
Patanjali is promoting Ayurveda extensively and subsequently making people aware
regarding the benefits of chyawanprash

THREATS
 Competition from existing market players like Baidyanath, Himani and Zandu.
 Potential threat from Patanjali and other International brands entering Indian
market.
DABUR CHYAWANPRASH
Dabur constitutes more than 61% market share of the chyawanprash market, but they
can’t afford to be complacent about their market position. There is stiff competition from
existing market players such as Baidyanath, Himani and Zandu chyawanprash. And no one
can deny the imminent threat of Patanjali in ayurvedic products market. Dabur needs
reinstates that they are original ayurvedic products manufacturers.

PORTER
FIVE
FORCES

A company’s competitive environment can be analyzed by Porter five forces. It helps us


understand the company’s direct competition. And hence helps us plan and organize future
endeavors. Porter Five analyzes competitive rivalry, supplier power, buyer power, threat of
substitution and threat of new entry.

Please find the porter five analysis of Dabur chyawanprash as follows:

COMPETITIVE RIVALRY
DABUR CHYAWANPRASH
 Dabur Chyawanprash has direct competition with existing player like Himani,
Baidyanath and Zandu’s chyawanprash. Though Dabur has has very healthy market
share of more than 60% but they can’t afford to be complacent at point of time as
everyone is looking to increase their market share.
 Patanjali has very recently entered the market. Though at present they don’t have a
significant market share but as their brand is growing bigger and better they are
making inroads into the chyawanprash market
 Chyawanprash market faces a huge indirect competition from beverage market
which includes Bournvita, Horlicks, Boost, and Hamdard.

SUPPLIER POWER
 A well-established brand for more than 135 years. Bond with suppliers has never
been an issue for Dabur.
 Dabur has a policy of making the stakeholders accountable. Their stakeholders
include customers, employees, shareholders or suppliers.

BUYER POWER
 Dabur enjoyed a monopoly in the segment for a very long time. But now buyer
power is increasing significantly with growth of its competitors. That is very evident
from the fact Dabur has started pricing its chyawanprash in the range of its
competitors.
 Dabur in a recent statement has said that they are moving back to basics which are
Ayurveda for them. They will have hold their ground in this stiff competitive market.

THREAT OF SUBSTITUTION
 Chyawanprash has its niche market. In Ayurvedic health supplement market there
are very few players.
 If beverage companies such as Bournvita, Boost, Horlicks innovate and add
immunity enhancing ingredients to its product then it can hamper chyawanprash’
market. Thus, Dabur will have to invest heavily into the product innovation and stay
afloat in the market.

THREAT OF NEW ENTRY


 Dabur was first mover when it comes centralizing the idea of health supplement like
Chyawanprash. It has got brand loyalty, patents, and economies of scale on its side
DABUR CHYAWANPRASH
 There are no entry barriers in the existing market.

PESTEL ANALYSIS
DABUR CHYAWANPRASH

PESTEL ANALYSIS ON DABUR CHYAWANPRASH

(P)OLITICAL FACTORS
 Government Intervences: Government supports the FMCG industry to grow by
expanding & exporting its products.
DABUR CHYAWANPRASH
 Trading Policies: They are also favorable for Dabur and its products so it can
export its products & it also helps to expand & to grow.

(E)CONOMIC FACTORS
 GENERATES EMPLOYMENT: A state-of-the-art Greenhouse facility at Banepa,
which has the ability to deliver 5-6 million saplings of restorative plants per annum.
All the required climatic parameters for uniform development of saplings of the
therapeutic plants like temperature, dampness and so forth are constrained via
automatic computer systems. Besides helping preserve natural resources, this
activity has gone a long way in generating employment and income for the locals.

 CONSUMER FOCUS: A lively culture, average employee age of 31-32 years, direct
recruitment from a portion of the top B-schools in the nation under the youthful
managers development program and conduct of competency. Development centers
for rise are a portion of the other significant HR activities of the company.

 NATIONAL INCOME: National income is important factor as if affect the growth of


the organization. If per capita income is more the amount spend will be more & if it
will be lower the amount spent will be less.

 INFLATION RATE: Inflation means the rise in the value of all the product in the
economy, if inflation rate is higher the cost of products will be higher & if inflation
rate is lower the cost of product will be lower. This directly affect the growth of the
organization.
(S)OCIO-CULTURAL FACTORS
 Dabur’s CSR initiatives are driven through Sustainable Development Society or
SUNDESH, it is an outcome of the vision of Dabur India Ltd founder Dr. S.K Burman. 
 Sustainable Development Society (SUNDESH) is sworn to the mission of ensuring
overall socio-economic development of the rural & urban poor on a sustainable
basis, through different participatory and need-based initiatives. It aims to reach out
to the weaker and more vulnerable sections -- such as women and children, illiterate
and unemployed – of the society.
 (SUNDESH) is vowed to the mission of guaranteeing by and large financial
improvement of the rustic and urban poor on an economical premise, through
various participatory and need-based activities. It plans to connect with the more
fragile and progressively defenseless areas -, for example, ladies and youngsters,
unskilled and jobless – of the general public.
DABUR CHYAWANPRASH
 Law affect social behavior: Different laws are made by the government to safe guard
the rights of consumers. For example- Consumer protection act, this law indicates
that a consumer can file a case against a seller if he finds that he is cheated.

(T)ECHNOLOGICAL FACTORS
 DISCOVERIES: The Production & technology center ensures that the brand
maintains the highest level of Innovation & quality. By efficiently using technology,
Dabur introduced the sugar free Chyawanprash for diabetic patients and the Dabur
Chyawan junior in chocolate flavor for children, thereby improving customer
experience and increasing supply chain efficiency.

 AUTOMATION: In December 2002, Dabur joined with Free Markets, a worldwide


firm which gives IT-enabled solutions in e-sourcing that help the companies to
streamline their procurement process. It allows a company to link up all its
suppliers online, rank them based on costs and performance; and procure materials
through bidding "events" conducted over the Net. 

 This innovation has altogether cut acquisition costs, diminished the process
duration for buys and abbreviated the exchange procedure for purchasing materials.
  
 ADVANCEMENTS IN TECHNOLOGY: In 2003-04, Dabur acquired Rs 210 crore
worth of materials, half of its total raw material spend, through the e-sourcing
channel. The e-sourcing activity has not been confined to non-critical inputs alone.
In fact, the company says a whole host of herbal raw materials including saffron,
spices and essential oils, have been procured online. 

 EFFICIENCY IMPROVEMENT: Dabur has additionally e-sourced a decent piece of its


services and logistics. These activities have helped zip up Dabur's profit growth,
regardless of the rising product costs.

(E)NVIRONMENTAL FACTORS
 Environment Protection: A key thrust area at the manufacturing facilities was
environment protection, with organized activities embraced to control carbon
discharges such as a state-of-the-art Greenhouse facility at Banepa.
 Environment Regulations: It meets the health and personal grooming
requirements of their target consumers with safe, efficacious, natural solutions by
synthesizing the deep knowledge of ayurveda and herbs with modern science.
DABUR CHYAWANPRASH
 Environmental Protection: Responsible company to protect Ecological system & to
use Eco-friendly products.

(L)EGAL FACTORS
 Companies law: The company fulfils all the Company law requirement so as to
grow & develop & to sustain in the competitive market.
 Employment law: Employment law provides equal opportunities to every citizen
to work & earn his/her livelihood. It provides equal opportunities to every citizen.
 Consumer Protection: This law helps to protect the rights of consumers & they
can file a case against the seller if he/she finds that they are cheated.
 Industry-specific regulations: These laws are related to the industry for example-
no industry can be established between cities i.e. it should be outside the cities.

COMPETITI
VE
Dabur is brand
chyawanprash
ANALYSES leader when it comes to
market. With more than 61% of
market share it enjoys very healthy market presence. There are very few imminent market
players when it comes to chyawanprash market when it comes to Pan India presence.

Please find the competitors who have significant say in the chyawanprash market as
follows:

 Baidyanath: Started in 1917 in Baidyanath Dham in Bihar, has not yet capitalized
on the legacy of the brand. The product has 10% market share in chyawanprash
market. It states to contain more 51 herbs in combination with amla pulp. They
have not really penetrated the Pan india Market as branding is not very evident and
may be they also don’t believe much into promotion and branding.

 Zandu Chyawanprash: “Immunity plus mind power” is their tagline for their
chyawanprash. With a market share of 12% himani could also be string contender
for Dabur. But major issue with their promotion is they are still targeting the kids
segment of the market which others used to do and have moved on. They will
require to move on from “kijiye apne bachhon k sapne sakar” and will have to start
targeting different segments of the market.
DABUR CHYAWANPRASH
 Patanjali Chyawanprash: Latest to join chyawanprash market is Patanjali. Though
the brand has grown in leaps and bounds in past few years and made a mark in
ayurvedic products, but it has not lived up to its name in chyawanprash market.
Though they are youngest, but they have the potential and brand equity to become
market leader in any market. Dabur is very varying of what Patanjali is trying to do
and they have their own strategies to counter that.

 Others: There others also which have local strong hold but not Pan India appeal in
chyawanprash market in India. It includes Kottakal Arya Vaidya Sala majorly in
Kerala, Himalaya herbals, Apollo life, Shri Shri Tattva Ayurveda, Hamdard and
Organic India. Though all of them don’t have biiger market share but anyone can
gain market through aggressive marketing and branding strategies.

PROPOSAL

Market Penetration: One of the obvious steps would be to market the existing product
with renewed aggression and in volume. Let branding and promotions take chyawanprash
to every household of India. Invest in brand stores in tier II and tier III cities. Brand Dabur
DABUR CHYAWANPRASH
has its own presence and come up brand stores in the country which only sells Dabur
products. Dabur has monopoly in many of its products. So when people come to buy other
products at Dabur stores let them be influenced by chyawanprash marketing.

“Dabur ki deewar” is also an important campaign where in modern trade stores have
specific wall/area/corner only for Dabur products in metros and trier I cities. Brand
influence can be leveraged through this strategy.

Dabur also needs to enhance its reach to rural India. Need to innovate and establish supply
chain network in rural India to make brand reach maximum of people.

Product Development: Chyawanprash has market of around $1 billion market. Dabur


has the edge of its competitors due to its early market moving edge. If Dabur can develop
powdered form of chyawanprash as a milk supplement, than it turns the table in its
direction. Milk supplement is more than $1 billion market. Tapping onto that market can
become that next big thing.

There is large segment of people who leave eating chyawanprash after the age 15 as they
don’t like the tangy-bitter taste and semisolid form of chyawanprash. This segment of
market can be tapped by making chyawanprash powder. It can have two to three flavors
for starters. People can have one tablespoon chyawanprash powder mixed in milk and live
a guilt free life.

The campaign can be based on the idea that have two tablespoons of chyawanprash in a
day and live a guilt free life. Today’s working class has become very conscious about health
and fitness. There are many people who have left their favorite food for health and fitness.
Thus, we are going to sell them nostalgia, to get back to their favorite food without any
guilt. Live guilt free life, which should be Dabur’s campaign.

Segment: Todays India’s average age is 29 years. More than 50% are less than of age of
25 years and more than 65% are less than 35 years. Thus, old age people are already been
Dabur’s loyal customers since ages. Now Dabur should target the middle age people who
don’t have time to take care of their health in this busy life. Thus, Dabur chyawanprash can
become their go to product for their guilt free indulgence.

Target: As already mentioned targeting the young professional who is pretty busy in their
life. They don’t have any major alternative in beverage industry which is also a health
supplement. Thus, with new marketing campaign and product innovation Dabur can create
a niche for itself.
DABUR CHYAWANPRASH
Positioning: If this conceptual idea of chyawanprash powder is made into life, then
Dabur will have a unique position in the market. As all the beverages which are already
present in the market don’t offer any ayurvedic advantages. Most of them are targeting
children growth and no one is concerned with immunity like the way chyawanprash
provides. Thus, this market will make Dabur have niche in the market.

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