A

ENTERPRISE ANALYSIS-DESK RESEARCH REPORT

ENTITLED

“A STUDY OF DABUR INDIA LTD.”

SUBMITTED BY
MS. AMRUTA AJAY BHAVSAR

GUIDED BY

MR.S.V.BACHHAV

DEPARTMENT OF MBA

NASHIK DISTRICT MARATHA VIDYA PRASARAK SAMAJ’S

KARMAVEER ADV.BABURAO GANPATRAO THAKARE
COLLEGE OF ENGINEERING, NASHIK-013
2019-2020
 DEPARTMENT OF MBA

CERTIFICATE
This is to certify that Ms. Amruta Ajay Bhavsar has successfully completed the
Enterprise Analysis-Desk Research Project entitled

“A STUDY OF DABUR INDIA LTD.”

Under the guidance of

Mr.S.V.Bachhav

In the partial fulfillment of the requirement of MBA Course as expected by Savitribai

Phule Pune University during the academic year 2019 – 2020.

Mr.S.V.Bachhav Dr.D.T.Khairnar
Project Guide Head of Department Principal
 INDEX
CHAPTER CONTENT PAGE
NO. NO.
1 INTRODUCTION TO ORGANIZATION 1-4
2 ENTERPRISE HISTORY & BACKGROUND 5-10
2.1 Establishment,
2.1.1 History
2.2 Vision,
2.3 Mission,
2.4 Members of board of directors

3 ORGANIZATION PROFILE 11-15

3.1 Organization Structure
3.2 Company’s Current Head quarter ,Corporate Office
3.3 Service Locations
3.3.1 Office
3.3.2 Factory
3.4 Certificate

4 MARKET 16-31
4.1 Market Strategy,
4.2 Product and Product line,
4.3 SWOT Analysis,
4.4 Competitors
4.5 Promotion-Advertising, Agency,
4.6 Logo

5 FINANCIAL DATA/STATISTICS 32-35

5.1 Balance Sheet of last 5 yr.
5.2 BSE
5.3 NSE

6 GOVERNANCE 36-39
6.1 Awards and achievements

7 CONCLUSION 40
CHAPTER-1

1
 Introduction of Organization

“Dabur is derived from the word ‘Da’ for ‘Daktar’ or ‘Doctor’ and ‘bur’ from Burman.”Dabur
India Ltd is one of India’s leading FMCG Companies with Revenues of about US$750 Million
(over Rs 3416 Crore) & Market Capitalization of over US$3.5 Billion (over Rs 16,000 Crore).
Building on a legacy of quality and experience of over 125 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 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.

Dabur today operates in key consumer products categories like Hair Care, Oral Care,
Health Care, Skin Care, Home Care and Foods. 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
2
countries, Africa, US, Europe and Russia. Dabur's overseas revenues stand at over Rs 500 Crore
in the 2008-09 fiscal, accounting for about 20% 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 bylanes 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 3 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.

Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he prepared
Ayurvedic medicines to treat diseases like malaria, plague and cholera that had no cure during
that period. It was his dedication, commitment and empathy that made Dabur a renowned name
among the masses. And today, after more than 120 years, Dabur is known for its trustworthiness
more than anything else. During this passage of time, Dabur went through several structural and
strategic changes to maintain its market strength. The real mass production started in 1896. Early
1900’s saw Dabur emerge as the first company to provide health care through scientifically
tested methods. It achieved significant improvements 7 after setting up Research and
Development centers and manufacturing automation. The launch of Dabur’s Amla hair oil and
Chyawanprash was a boon to the expanding business. To keep up with the times, Dabur
computerized its operations in 1957. It’s Dant Manjan and digestive tablets were widely accepted

as well. However with a large product portfolio in the market, Dabur had to maintain operational
efficiency. To make sure it adjusted to the business environment it became a public limited
company in 1986 followed by diversification in Spain in 1992. A major change came when
Dabur came up with its IPO in 1994. Because of its position, Dabur’s issue was 21 times
oversubscribed. Dabur further divided its business into three separate groups:

 Health Care Products Division

 Family Products Division
 Dabur Ayurvedic Specialties Limited

In 1998, for the first time in the history of Dabur, a non-family member took charge. Dabur
handed over the operations to professionals. Successful implementation of procedures, timely

3
changes and maintaining its essence, Dabur achieved its highest-ever sales figure of Rs 1166.5
crore in 2000-01. As FMCG sector was struggling with the slow growth in the Indian economy,

Dabur decided to take numerous strategic initiatives, reorganize operations and improvise on its
brand architecture beginning 2002. It decided to concentrate its marketing efforts on Dabur,
Vatika, Anmol, Real and Hajmola to strengthen their brand equity, create differentiation and
emerge as a pure FMCG player recognized as a herbal brand. This was chosen after a study with
Accenture, which revealed that Dabur was mainly perceived as a Herbal brand and connected

more with the age group above 35. Also, larger retailers were making their foray into the FMCG
market. Apart from HLL, P&G, Marico and Himalya, ITC was also posing a challenge. The
supply chain of Dabur was becoming complex because of the large array of products. Southern
markets share in the sales figure was negligible. These factors posed a threat to Dabur and hence
small changes were not enough.

4
CHAPTER-2

5
 Enterprise History and Background

2.1 ESTABLISHMENT
Established in 1884 by Dr. S K Burman, Dabur is among India’s leading FMCG companies. It
has business interests in healthcare, personal care and food products. Over the years, the
company has focussed on manufacturing and selling ayurvedic products targeted at the mass
consumer segment. A number of personal care products, ayurvedic tonics and oral care products
that Dabur launched over the years are leading brands in their respective segments. Dabur’s
portfolio comprises over 400 products, covering a wide range in health and personal care
segments. The company has over 16 brands with more than Rs. 100 crore sales and four brands
with Rs. 500-crore sales. Dabur has manufacturing facilities at 20 locations – 12 in India and one
each in UAE, South Africa, Sri Lanka, Egypt, Turkey, Nigeria, Nepal and Bangladesh. The
company has built a strong distribution network of over 6.3 million retail outlets in India. In
FY2011, Dabur has made two overseas acquisitions – Turkey-based Hobi Kozmetik Group for
$69 million and USAbased Namaste Laboratories LLC for $100 million. Earlier, Dabur had
made two domestic acquisitions (Balsara in 2005 and Fem Care in 2009) which have been
successfully integrated. In April 2017, Dabur acquired certain assets from CTL Management and
Personnel Services Proprietary Limited for ~Rs. 9.0 crore. In April 2018, Dabur acquired South
African brand – Long and Lasting – from D and A Cosmetics Proprietary Limited and Atlanta
Body and Health Products Proprietary Limited for ~Rs. 20 crore.

2.1.1 HISTORY

1884 – Established by Dr. S K Burman at Kolkata

1896 – First production unit established at Garhia (W.B.)

1919 – First R&D unit established

Early 1900s - Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first
Company to provide health care through scientifically tested and automated production of
formulations based on our traditional science.

6
1930 – Automation and up gradation of Ayurvedic products manufacturing initiated

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

1940 – Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of

Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand
in India.

1949 – Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of
traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in
packaged form, and becomes the first branded Chyawanprash in India.

1957 - Computerization of operations initiated

1970 – Entered Oral Care & Digestive segment

Addressing rural markets where homemade oral care is more popular than multinational brands,
Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is
made available at affordable costs to the masses.

1972 – Shifts base to Delhi from Calcutta

1978 – Launches Hajmola tablet

Dabur continues to make innovative products based on traditional formulations that can provide
holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and
launched as the popular Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad (U.P.), the most modern herbal medicines
plant at that time

1984 - Dabur completes 100 years

1988 – Launches pharmaceutical medicines

1989 - Care with fun

7
The Ayurvedic digestive formulation is converted into children's fun product with the launch of
Hajmola Candy. In an innovative move, a curative product is converted to a confectionery item
for wider usage.

1994 - Comes out with first public issue

1996 - Enters oncology segment

2000 - Leadership in health care

Dabur establishes its leadership in health care as one of only two companies worldwide to launch
the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an Ecofriendly
process to extract the drug from its plant source

2003 - Enters foods business with the launch of Real Fruit Juice

2005 - Burman family hands over management of the company to professionals

2008 - The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of Rs.1000 corers. Across a
span of over 100 years, Dabur has grown from a small beginning based on traditional health care.
To a commanding position amongst an august league of large corporate businesses.

2009 - Super specialty drugs with the setting up of Dabur Oncology's sterile cytotoxic facility,
the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art
plant and laboratory in the UK have approval from the MCA of UK. They follow FDA
guidelines for production of drugs specifically for European and American markets.

2010 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore

2011 - Dabur demerges Pharmaceuticals business

2.2 VISION
"Dedicated to the health & wellbeing of every household"

 Principles

1. Ownership:

This is our company. We accept personal responsibility, and accountability to meet

business needs.
8
 2. Passion For Winning :

We all are leaders in our area of responsibility, with a deep commitment to deliver
results. We are determined to be the best at doing what matters most.

3. People Development

People are our most important asset. We add value through result driven training,
and we encourage & reward excellence.

4. Consumer Focus

We have superior understanding of consumer needs and develop products to

fulfill them better.

5. Team Work

We work together on the principle of mutual trust & transparency in a boundary

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

6. Innovation

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

7. Integrity

We are committed to the achievement of business success with integrity. We are

honest with consumers, with business partners and with each other.

2.3 MISSION
”maximizing shareholders value, by offering superior quality nature based products, improving
consumers’ life in personal care, health care and foods.”

2.4 MEMBERS OF BOARD

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

9
 Table 1 : Board of Directors

Name Designation

A K Jain Executive Vice President & Co. Secretary

A K Jain Secretary

Aditya Burman Non-Executive Director

Ajay Dua Director

Ajit Mohan Sharan Director

Amit Burman CEO

Amit Burman Chairman

Falguni Sanjay Nayar Director

Lalit Malik Chief Financial Officer

Mohit Burman Vice Chairman

Mohit Malhotra WholeTime Director & CEO

P D Narang Whole Time Director

P N Vijay Director

R C Bhargava Director

S Narayan Director

Saket Burman Director

Sanjay Kumar Bhattacharyya Director

10
CHAPTER - 3

11
 ORGANISATION PROFILE
3.1 Organisation Structure

Figure 1: Structure of Dabur India ltd.

In yet another restructuring drive aimed at reorganising its recently hived-off FMCG business,
Dabur India Limited has merged its two major strategic business units (SBUs) the Family
Products Division (FPD) and Health Care Division (HCD) into one.

Apart from cutting down layers in the structural hierarchy of the Organisation, the move will also
see a drastic rationalization of Daburs stockists and distribution network. While the company
refused to comment on the move, a company official confirmed that the two divisions had been
merged into the company’s fold and the restructuring of distribution channel was currently on.

12
Daburs operations were hitherto split into 3 major strategic business units (SBU) Family
Products Division (FPD), Healthcare Products Division (HPD) and Ayurvedic Specialties Ltd
(ASL) created way back in 1996 with the aim to have better operations and management. Each
SBU had multi-tier structure with a separate SBU head at the top and a separate sales team and
distribution network.

In the new set up, the company will have a flatter structure with a single marketing head, a sales
chief and a common sales and distribution team. So, the erstwhile SBU HeadHPD Mr Devendra
Garg will now head the companys overall marketing function, while sales will be attended to by
former SBU HeadFPD Mr S Raghunandan. It is however not known whether the sales team has
been pruned or not.

According to a company offical, the initiative has been taken to reengineer its sales and
distribution structure to make it more synergestic, and give it a better scale and reach. The move
is designed to give better operating effeciencies to the company, bring business synergy which
will in the long run help the company to improve its topline growth, says he.

The downside of the initiative though will be that the company will have to rationalize its
stockists network and that may have a short-term negative impact on the distribution channel.
Dabur currently has a wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India.

For Dabur, the FPD is the largest SBU contributing 45 per cent (Rs 526.61 crore) sales of Dabur
products related to hair care, skin care and oral care. It consists of 3 leading brands - Vatika,
Amla Hair Oil and Lal Dant Manjan with Rs 100 crore turnovers each.

The HPD ranks second and accounts for 28 per cent (Rs 327.6 crore) in sales. Dabur
Chyawanprash is the flagship brand of this division, with a 65 per cent (Rs 127 crore) market
share. The Digestives category under HPD is a high-growth segment with 90 per cent share in
the herbal digestives market. Dabur Lal Tail is also a market leader in the baby massage oil
segment with 35 per cent of total share.

Daburs ASL deals with classical Ayurvedic medicine and has more than 250 products sold
through prescriptions as well as over the counter. This range constitutes 7 per cent (Rs 86.25
crore) in Daburs total revenue. Some of the proprietary Ayurvedic medicines developed by
Dabur include Nature Care Isabgol; Madhuvaani and Trifgol.
13
Daburs foods portfolio which includes products from Dabur Foods and the FPDfalls under the
purview of Dabur Foods, set up in 1996 as a 100 per cent subsidiary. Apart from brands like Real
Juices and Hommade cooking pastes, Dabur Honey of the FPD is the largest branded honey with
over 40 per cent of the market share.

3.2 Company’s Current Head Quarter, Corporate Office

 Corporate Office:

Dabur India Limited

Kaushambi

Ghaziabad - 201010

Uttar Pradesh, India

Tel: +91 (0120) 3962100, 39412525, 4182100

 Registered Office:
8/3, Asaf Ali Road,

New Delhi – 110 002

Tel: +91 (011) 23253488

14
3.3 Service locations

 Head office: Sahibabad, Ghaziabad (U.P.)

 Regd. Office: Asaf Ali Road, New Delhi

 Corporate office: Kaushambi, Ghaziabad (U.P.)
 Sales & Marketing: New Delhi

3.3.1 OFFICES:

Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna

(Bihar), Ahmadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai

(Maharashtra), Hyderabad (A.P.), Chennai (TamilNadu), Bangalore (Kamatka),

Kochi (Kerela), Guwahati (Assam), Kathmandu (Nepal), Russia, U.K.

3.3.2 FACTORY

Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani

& Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.

3.4 Certificates

 ISO 27001:2013 Certificate Presentation to Dabur India Limited

15
CHAPTER - 4

16
 MARKET
4.1 Marketing Strategy

Dabur is one of the leading companies in India and it deals with products that are
Ayurvedic in nature. Dabur is known to be a natural product as all of Dabur products are related
to herbs. Dabur, the brand name, is associated with trust and its products have helped the
company to become a household name.

Dabur has the distinction of having nearly two hundred and fifty products under its brand
name. It is a very popular brand with outlets in Africa, Europe, United States, Russia, SAARC
Countries and Middle East Countries.

Dabur has been in the market for a long time. It was founded in the year 1884 by Dr. S K
Burman and has been in the thick of things for nearly one hundred and thirty years. The company
was started with the intention of manufacturing Ayurvedic medicines for diseases like malaria
and cholera. Today the company specializes in nearly 260 medicines and deals with a variety of
diseases and disorders.

Dabur is a Public ltd company and has its headquarters in Ghaziabad, India. Dr. Anand
Burman is its chairperson and its CEO is Mr. Sunil Duggal. At present, the company’s net
income is estimated at nearly INR 14.75 billion. The company officials are devoted in their
endeavor to take the company forward. Their commitment to their customers and their associates
is to be admired and saluted.

The company is facing competition from Hindustan Unilever, Marico, Tropicana, Frooti,
Slice, Himani, Zandu, Procter & Gamble, ITC and Himalaya but it has been able to retain its
hold on the market with its exclusive products and hard efforts.

 Product in the marketing mix of Dabur :

Dabur is committed in offering its customers products that are of excellent quality and are herbal.
Their mission is in providing goods that prove healthy for its customers, as health is wealth.
Nature provides inspiration to all its products. Dabur deals in many categories of merchandises
like oral care, hair care, skin care, food products, and health-care and home-care products.

17
 Product in the marketing mix of Dabur :
Dabur is committed in offering its customers products that are of excellent quality and are
herbal. Their mission is in providing goods that prove healthy for its customers, as health
is wealth. Nature provides inspiration to all its products. Dabur deals in many categories
of merchandises like oral care, hair care, skin care, food products, and health-care and
home-care products.

 Price in the marketing mix of Dabur :

Dabur has hired a special team of trained professionals who scrutinizes the changing
perception of the market. They make a systematic and regular evaluation of their own
products as well as their competitors’ products. After analyzing each aspect carefully,
they determine their pricing strategy. As Dabur is a nature, based company and they deal
with Herbal products, so compromise is not allowed with the product. The prices are kept
with a minimum profit in mind. It is the aim of the company that more and more people
buy these natural products, as they are beneficial for the health of every individual.

 Place in the marketing mix of Dabur :

Dabur has nearly 2.8 million showrooms and retail outlets. It has covered its base
successfully in both the markets, rural and urban. It has captured the imagination of
worldwide markets, all over the globe, in more than 60 countries. Talks are going on with
other countries also, to include Dabur products in their market. Dabur authorities uses its
sales force as well as distribution channel to market its products. It has a firm grip on its
market intermediaries like wholesalers and then retailers and lastly dealers. It is through
all these channels that a Dabur product passes and at last reaches the consumer. Their
strong network for distribution and supply is extensive and incomparable. The products
are sent from one place to another with ease.

18
  Promotions in the marketing mix of Dabur :

Trust and Dabur go hand in hand. Their innovative vision has led to phenomenal progress
and conquering milestone after milestone. The confidence that the people show in Dabur
products helps them to buy those products. It has joined hands with international
companies to boost up its sales.

In India, Dabur has launched a full-fledged advertising campaign. This will help in making
the customers aware of all the Dabur products, their prices, their main features and the
places where the buyers can buy them easily. Every little detail of a Dabur product is
available online. Online shopping is being encouraged, as the younger generation is
techno-savvy. Even the children and older generation have become interested in buying
products online to save time.

In Televisions, famous actors and sportsperson are advertising the products. Amitabh
Bachchan is seenregularly in Dabur ads like Dabur Chyawanprash and Dabur Hajmola.
Sonakshi Sinha and Samantha Prabhuare are seen in Dabur Vatika Hair Oil. Salman Khan
has been a regular promoter of Ranbaxy’s Revital 30+. The promotions by celebrities help
in the continuous and high sales of the products.

4.2 Products and product line

Dabur India marketed by Health care, Hair care, oral care, Skin care, Home care & food

a. Hare Care:

1. Amla Flower magic

2. Amla hair oil
3. Badom Oil
4. Balm Double Actin
5. Lal Tail
6. Uper Tanda Oil
7. Total Protect Health Shampoo
8. Vatika black Shine Shampoo
9. Vatika Conditioner

19
 10. Vatika Danddruff control shampoo

11. Vatika Enriched Almond Hair Oil

12. Vatika Enriched Coconut Hair Oil.

13. Vatika Root Strengthening Shampoo

14. Vatika Smooth and Silky Shampoo

b. Oral Care:

1. Babool Tooth pest

2. Lal Dant Manjan

3. Meswak Tooth past

4. Promise Tooth past

5. Read pest

c. Home Care:

1. Odomos Green

2. Odonil

d. Food:

1. Active juice.

2. Active Sauce

3. Burrest Juice real

4. Capsico juice

5. Chyawan junior

6. Chyawan prakash

7. Chyawan prash

8. Hajmoal

9. Hajmala candy
20
 10. Hommade
11. Glucouse-D
12. Honey
13. Honitus lozenges

14. Real juice

e. Skin Care:

1. Golabari Face Freshener

2. Golabari Moisturising cream

3. Galabari Moisturising Lotion

4. Galabari Rose water

5. Vaeda-2-in-1 moisturiser

6. Vaeda clarifying face wash

7. Vaeda complete fairness creem

8. Vadea moisturising face wash

9. Fem

f. Health Care:

1. Active Antacid shirap

2. Active Blood purifier
3. Dazzal
4. Gripe water
5. Honitus Cough Syrap
6. Janma Ghunti
7. Lemoneez
8. Sanifresh
9. Shankha pushpi

21
 10. Shilajit gold
11. Balm Strong
12. Pudin Hara

4.3 SWOT Analysis

Figure 2 : SWOT Analysis

 STRENGTHS

1. Century Old Company

2. Established Brand
22
 3. Ayurvedic/ herbal Product line

4. Leader in Herbal Digestives where the product has 90% of the market share

5. Core knowledge of Ayurveda as competitive advantage

6. Strong Brand Image

7. Strong Distribution Network

8. Extensive Supply Chain

9. R & D - a key Strength

 WEAKNESS
1. Seasonal Demand (like Chyawanprash in winter and Vatika not in winter)
2. Profitability is uneven across product line
3. Low Penetration (Chyawanprash)
4. Limited differentiation (Vatika)
5. Unbranded players account for 2/3rd of the total market (Vatika)
 OPPORTUNITIES
1. Extend Vatika brand to new categories like Skin Care and body wash
segments
2. Market Development
3. Export Opportunities
4. Innovation
5. Increasing income level of the middle class
6. Creating additional consumption pattern
 THREATS
1. Existing Competition like Himami, Baidyanth and Zandu for Dabur
Chyawanprash and Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil)
2. New Entrants
3. Other fields of medicine- Allopathic and Homeopathic

23
4.4 Competitors
Given Below is a Segment Wise Competitor list:

Table 2: Competitors of Dabur india ltd.

Category of products Dabur’s Share Main 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.

4.5 Promotion –Advertising, Agency

Once the product has been manufactured, priced rightly and is distributed, the next task of
the marketer is to inform potential customer about the product and persuade them to buy the
same. The promotion element of marketing mix is concerned with activities that are undertaken

24
to communicate with both customers and participants in the channel of distribution such that
sales goals are realized. There are different promotional activities like-: Advertising, Sales
promotion, trade promotion, personal selling etc. but one of the most convenient and effective
one that most of the industries uses is the Advertising and Sales Promotion.

 Advertising :

Advertising is a form of communication that typically attempts to persuade

potential customers to purchase or to consume more of a particular brand of product or service.
Many advertisements are designed to generate increased consumption of those products and
services through the creation and reinforcement of "brand image" and "brand loyalty". For these
purposes, advertisements sometimes embed their persuasive message with factual information.
Every major medium is used to deliver these messages, including television, radio, cinema,
magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by
an advertising agency on behalf of a company or other organization.

Dabur has created the huge brand image and a vast product following by associating mega-
names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur
invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the
company has been successful in this mission as the people now know the brand and ask for its
products by name.

 Sales promotion :

“An activity designed to boost the sales of a product or service. It may include an advertising
campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps,
arranging demonstrations or exhibitions, setting up competitions with attractive prizes,
temporary price reductions, door-to-door calling, telemarketing, personal letters on other
methods”.

In marketing, sales promotion is one of the four aspects of promotion. (The other three parts
of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales
promotions are non-personal promotional efforts that are designed to have an immediate impact
on sales.

25
 Sales promotion involves short-term incentives to encourage buyers to purchase a product.
Its aim is to encourage immediate purchase of a product. If used too often however, sales
promotion can create a situation where consumers will not buy unless there is a bonus offer. This
will result in loss of profit for the company.

More than any other element of the promotional mix, sales promotion is about “action”. It is
about stimulating customers to buy a product. It is not designed to be informative – a role which
advertising is much better suited to.

 Sales promotion can be directed at:-

 The ultimate consumer (a “pull strategy” encouraging purchase)

 The distribution channel (a “push strategy” encouraging the channels to stock the
product). This is usually known as “selling into the trade”
 Sales promotional tools of dabur foods

 Price promotions

 Coupons

 Gift with purchase

 Competitions and prizes

 Money refunds

 Point-of-sale displays

 Free samples

 Contest /demos

 Festival Sales

 Retailer coupons

 Multi-packs

 Special price for twos

 Allowances for additional shelf space

 Merchandising
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  Sales contest

 Incentives

 Awards & prizes

 Premium gifts

 Sales Meetings

 Samples/product sampling

 Contests & Sweepstakes

 Exchange Offers/buyback

 Refund / Rebate

 Price / Bonus Packs

 Promotional schemes used for stockists

 Encourage stockiest to participate in displays and sales contests.

 Higher Margins: Tries to give higher margins to stockiest so that they don’t lose
interest in the product and can earn good profits after meeting all the expenses.
 Sales Contests: Sales contest are held annually and whichever stockiest has the best
sales record a prize is given to him, like free holiday to the family etc.
 Allowances: Special allowances are given to both stockiest and stockiest sales man if
they achieve their monthly target.
 Subsidy for Promotion Budget: Company gives subsidy to the stockiest, which spend
some money on the promotional schemes, like conducting a sampling activity.
 Danglers and Posters: Company gives posters and danglers to stockiest which are
further pasted and distributed by stockiest sales man.
 Training: Special Training is given to Stockiest Sales Man, a training workshop is
organized by the company for stockiest sales man so that they don’t face any problem
while placing their products and taking orders from retailers.
 Annual Gathering: All the stockiest meet under one roof at least once a year and then
the stockiest whose performance was best in term of sales is awarded.

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  Fun Trip: A zone wise fully paid fun trip is organized by the company for all the
stockiest once a year.
 Gathering While Launch of New Products: All the stockiest and their sales man
gather when there is a launch of a new product. Company gives free samples & gifts to
stockiest and their sales man.
 Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
 Free danglers and posters for publicity.
 Buyback: Dabur foods have a scheme of replacement of products which gets expired.
 Promotional schemes used for retailers

 Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.

 Dealer loader: An incentive given to induce a retailer to purchase and display the
products of dabur.

 Trade contest: A contest to reward retailers those sells the most product of dabur foods
and after a specific period they are rewarded.

 Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales,
like danglers, posters, banners etc helps in promoting sales.

 Push money: Also known as "spiffs". An extra commission paid to retail employees to
push products. This kind of practice dabur hardly follows.

 Free samples: Dabur foods gives free samples are given to retailers so that they can try
that product if the product is new, or gives some discounts.

 Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.

 Discount Sales: Some special discounts are given to retailers from time to time, like 1%
cash discounts if payment is made in cash.

 Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.

 possible purchase locations.

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 Promotional schemes used for consumers
 Price deal: A temporary reduction in the price is given to consumer during some festival
session by dabur foods.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
 Coupons: Dabur foods gives coupons during different sampling activities to consumers
and it have become a standard mechanism for sales promotions.
 Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
 On-shelf coupons: Coupons are present at the shelf where the product is available.
 Rebates: Consumers are offered money back, rebate at different point of time.
 Contests/sweepstakes/games: if a customer wins some game or contest at the time of
sampling activities then they are given a discount coupon of products of dabur foods.
 Point-of-sale displays: Displays helps the consumer easily recognize their products,
dabur keeps a special check on the displays and merchandising of dabur products.
 Sampling Activities: Dabur organizes different sampling actives at different retail
outlets.
 Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
 Money Refunds: Customer can claim for refund of money if they face some problem
with the product
 Contest /demos: There are different contests where customers play games and win
contests.
 Festival Sales: Dabur foods come out with some special offers during festival seasons
like buy one get one free.
 Multi-packs: Dabur foods has some products in multiple packaging which are
comparatively priced lower to the products sold in a single pack.
 Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making
it easier for customers to know about product line and choose the best out of that.
 Customer feedback: dabur foods consider its customer most important and in case of
any complaint by customer the foods department will leave all its important work and
will contact the customer.
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  Contact points: Customer can contact dabur foods by writing the mail or letter on the
addresses given at the back of dabur products, or even they can call and visit the dabur
web site.
 The path ahead :

Dabur intends to significantly accelerate profitable growth. To do this, Dabur will:

 Focus on growing their core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology.

 Be the preferred company to meet the health and personal grooming needs of their target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science.

 Provide the consumers with innovative products within easy reach.

 Build a platform to enable Dabur to become a global ayurvedic leader.

 Be a professionally managed employer of choice, attracting, developing and retaining

quality personnel.

 Be responsible citizens with a commitment to environmental protection.

 Provide superior returns, relative to their peer group, to the shareholders.

4.6 Logo

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CHAPTER - 5

31
 FINANCIAL DATA
5.1 Balance sheet of last 5 years

Table 3 : Balance sheet of Dabur india ltd.

BalanceSheet - Dabur India Ltd.

Rs (in Crores)

Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

12 12 12 12 12
Liabilities Months Months Months Months Months

Share Capital 251.62 176.15 176.15 175.91 175.65

Reserves & Surplus 3717.20 4050.71 3481.73 2695.87 2160.54

Net Worth 3968.82 4226.86 3657.88 2871.78 2336.19

Secured Loan 134.77 208.60 209.07 7.68 15.74

Unsecured Loan .00 77.93 74.61 78.83 113.39

TOTAL LIABILITIES 4103.59 4513.39 3941.56 2958.29 2465.32

Assets

Gross Block 1714.89 1617.88 1501.96 1154.71 1093.98

(-) Acc. Depreciation 678.27 587.40 508.63 464.18 411.46

Net Block 1036.62 1030.48 993.33 690.53 682.52

Capital Work in Progress 21.69 26.82 28.25 24.96 12.22

Investments 2962.14 3433.08 3054.15 2424.87 1778.17

Inventories 732.90 704.79 599.27 615.56 550.60

Sundry Debtors 431.46 321.34 333.25 420.69 338.79

Cash and Bank 124.71 87.02 26.16 54.16 123.94

Loans and Advances 269.26 209.17 182.61 224.24 202.12

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Total Current Assets 1558.33 1322.32 1141.29 1314.65 1215.45

Current Liabilities 1341.34 1184.88 1173.56 1183.56 977.21

Provisions 133.85 114.43 101.90 313.16 245.83

Total Current Liabilities 1475.19 1299.31 1275.46 1496.72 1223.04

NET CURRENT ASSETS 83.14 23.01 -134.17 -182.07 -7.59

Misc. Expenses .00 .00 .00 .00 .00

TOTAL
ASSETS(A+B+C+D+E) 4103.59 4513.39 3941.56 2958.29 2465.32

5.2 BSE

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5.3 NSE

34
CHAPTER - 6

35
 GOVERNANCE
6.1 Awards and Achievements:
1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes

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

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 Dabur Chyawanprash sets Guinness World Record with ‘Largest Immunity
Lesson’ for school kids

 Dabur India Ltd placed in List of “20 Stocks you must own”, Brands 2009 list for
FMCG Prepared by Forbes India

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 Dabur ranked 28th in ET- Brand Equity Most Trusted Brands 2009 list

38
 CONCLUSION
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 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.

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