Project of Shweta
Project of Shweta
Project of Shweta
ANALYSIS OF MARKETING MIX FOR LEADING BRANDS OF HAIR OILS (PARACHUTE, NIHAR, HAIR & CARE, DABUR VATIKA) IN DELHI
Submitted by:
ACKNOWLEDGEMENT
This thesis work, which is my first step in the field of professionalism, has been successfully accomplished only because of timely support of my well-wishers. I would like to pay my sincere regards and thanks to those, who directed me at every step in my project work. I extend my sincere thanks to IITM, NEW DELHI for providing me with a wonderful opportunity to associate myself with this important project. A major role in this project was played by my project guide, Prof. , Lecturer in management at IITM, NEW DELHI. His invaluable guidance, enthusiastic encouragement and technical knowledge were the force that drove my project to its destination of an ideal project. During the thesis, I got an opportunity to interact with a lot of experience professionals in the field of marketing and business to whom I am grateful for their suggestions. Also, I would like to thank all my friends for their support at different steps in the project. I hope my modest efforts will be useful for my college.
TABLE OF CONTENT
1. Company profile 2. Introduction 3. Rationale of the topic chosen 4. Literature review 5. Objectives 6. Importantance of Marketing Research 7. Research Methodology 8. Findings 9. Recommendation 10. Conclusion 11. Bibliography 12. Appendix :
o Questionnaire o Graphs
COMPANY PROFILE
Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status. The story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders.
Leading consumer goods company in India with a turnover of Rs.2233.72 Crore (FY07)
2 major strategic business units (SBU) Consumer Care Division (CCD) and Consumer Health Division (CHD)
3 Subsidiary Group companies Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.
13 ultra-modern manufacturing units spread around the globe Products marketed in over 50 countries Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India.
Dabur Worl Wi
of 5opularizi
Company History
Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation
1986 1992 1993 1994 1995 1996 1997 1998 2000 2003 2005 2005 2006 GAAP 2006 2007 2008 2009
Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs.1,000 crores Dabur demerges Pharma Business Dabur aquires Balsara Dabur announces Bonus after 12 years Dabur crosses $2 Bin market Cap, adopts US Approves FCCB/GDR/ADR up to $200 million Celebrating 10 years of Real Foray into organised retail Dabur Foods Merged With Dabur India
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AMLA HAIR OIL AMLA LITE HAIR OIL VATIKA HAIR OIL ANTI-DANDRUFF SHAMPOO
SKIN CARE
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GULABARI VATIKA FAIRNESS FACE PACK VATIKA SAFFRON GLOW SOAP WITH SANDAL
DIGESTIVES
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NATURAL CURES
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INTRODUCTION
Market research is the function that links the consumer, and Stake holder to the marketer through information-information used to identify and define marketing opportunities and problems; generate refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Speaking in laymans language marketing research is the systematic and objective identification, collection , analysis, dissemination and use of data for the purpose of assisting management in decision making related to the identification and solution of problems(and opportunities) in marketing. This project report is based on the survey conducted by me to track the behavior and priority of hair oils buyers and retailer opinion in Delhi. The sample si e for this market research was 50 for consumers and 50 for retailer taken randomly, including various age group, income and profession and Target population was working people, business man and professionals across Delhi. The attitude of consumer or buyer decides how demand will emerge for a new product and service and how existing goods and services will be sold. The attitude in turn depends upon many economic, social, cultural, climatic factors. The decisions are also influenced by education, stage of economic development, lifestyle, information, si e of family and hoist of other factors. To Understand and analy e the marketing mix for leading brands of hair oils, I conduct marketing research with the help of the primary data collection from DSAs of different brands of hair oils company. During the study I met with different retailers, whole sellers from different parts of the Delhi region. I also met with the consumers and got questionnaire filled by them and collected data for the marketing research to study the different marketing mix components and analy e it.
This report is not aiming at the overall marketing mix or the marketing strategy of hair oils (parachute, Nihar, Hair & Care, Dabur Vatika), but attempt to analy e the marketing mix of hair oils(parachute, Nihar, Hair & Care, Dabur Vatika). ConsumerThe attitude of consumer or buyer decides how demand will emerge for a new product and service and how existing goods and services will be sold. The attitude in turn depends upon many economic, social, cultural, climatic factors. The decisions are also influenced by education, stage of economic development, lifestyle, information, si e of family and hoist of other factors. To understand consumers each brand has to start by asking several basic questions: WHO?: Who is the consumer? What are consumers demographics? Where does she stay? Which socio-economic class does she hail from? Who can influence her purchase behaviour? WHY?: Why does she buy this product? This brand? What are her beliefs? What is her attitude towards this brand and the key competitors? What needs does this brand fulfil? WHEN?: When does she buy the brand? Daily? Monthly? When does she use the brand? WHERE?: Where does she buy the brand? Where else may she want to buy the brand? Where does she use the brand? At home? Outside?
LITERATURE REVIEW
OVERVIEW OF FMCG SECTOR IN INDIA The Indian FMCG sector is the fourth largest sector in the economy with a total market si e in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential
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market in the world. The annual si e of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. The Indian FMCG sector is an important contributor to the countrys GDP. The FMCG sector is the Fourth largest sector of Indian economy. The FMCG market is estimated to treble from its current figure in the coming decade. Penetration levels as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. The growing Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. The Indian rural market with its vast si e and demand base offers a huge opportunity for investment. Rural India has a large consuming class with 41 per cent of Indias middle-class and 58 per cent of the total disposable income.
Marico holds a leadership position in the Indian FMCG space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods reach out to more than 20 countries in the Middle East, Asian sub-continent, Australia and USA. The company generated a turnover of about Rs. 19.1 billion (about USD 455 Million) during 2007 -08. Marico markets well-known brands such as Parachute, Saffola, Kaya, Sundari and Fiancee to name few, most of which enjoy leadership positions (No. 1 or No. 2), with significant market shares in respective categories. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (84 clinics in India and The Middle East) and Weight Management segment through Kaya Life (3 clinics in India).
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Maricos Products A many products have released by the Marico in the market. These are Parachute (hair oil), Hair & Care (hair oil), Hair & Care Silk n Shine (hair conditioner), Nihar (hair oil), Shanti Badam Amla (hair oil), Parachute after Shower (hair gel), Saffola (food oil) but Saffola are available at market in 3 categories Saffola Gold, saffola tasty blend and New Saffola, Mediker (hair oil), Sweekar (refined sunflower oil), Revive 1.Parachute
Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of Vital Nourishment today. From a loosely available commodity to a path-breaking brand, Parachute pioneered the switch from coconut oil sold in tins to plastic. Parachute is also available in pouch packs, to service the rural sectors, increasing penetration. MARKETING MIX OF PARACHUTE Marketing mix of Parachute, we shall be discussing the 4Ps of marketing mix. The mix shall be analy ed as followed: Product Parachute is premium edible grade coconut oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over a time it has become the gold standard for purity. Parachute is also available in pouch packs, to service the rural sectors, increasing penetration.. Packaging: parachute coconut hair oil are available at the market in blue color plastic bottle.
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Available in Bottles: 100 ml, 200 ml, 500 ml, 1000 ml (Jumbo Pack) Flip Cans: 100 ml, 200 ml Price Size Print Price 100 ml 20 Rs 200 ml 39 Rs 500 ml 90 Rs 1000 ml 185 Rs All Price are as on the Date: 26-06-2011 Reliance Fresh Price 20 Rs 37 Rs 90 Rs Not Available
During my research not any Discount offers was available in the market. Place Marico have 9000 distributer for parachute who service the entire country through the wide market network. Parachute is available across the country but in northern India especially in Uttar Pradesh, Madhya Pradesh, Chattisgrah, Gujrat, Delhi, Panjab, Haryana, Bihar, Jharkhand and in Rajasthan parachute is more popular in women. In whole south India Parachute are available and also in whole north east states it is available. Parachute coconut hair oil are sold in 42 countries. Through more than 20 lakh Retail outlets. Parachute distribution network extends beyond India in the following countries as well: Distribution Network
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Promotion
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Marico mainly believes in advertising for the purpose of promoting its hair care products. The ads of the companys products can be seen on the T.V. Along with this it also uses the print media as a promotional tool. Sales Promotion devices like giving a small pack of Parachute Herbal Oil with every large pack of Parachute Coconut Hair Oil can be a helpful tool in lifting of the sales of this new brand. Apart from this the company can make use of other promotional tools like coupons, cash rebates etc. which may boost up the brand in the market. The above new marketing strategy will help the company to enhance the market share and fight the competition in some of the other segments of the hair care oil market.
Medium for Advertisement: T.V, Print media, Radio. Company use multi media for promoting parachute but mainly use T.V. for advertisement.
Solid reputation locally. Individuali ed instruction. Good customer service. Emphasis on planning. Good management/staff relations.
Weaknesses:
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Need to develop programs and procedures for marketing. Inept and apathetic personnel need to be weeded out. Too many adjuncts.
Opportunities:
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North Indian market is rapidly growing. Traditional trends growth of area. Greater demand for hair oil Products.
Threasts:
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The main objective of Nihar coconut oil is to overtake the loose oil consumers in rural areas. It also aims at being the market leader in rural market by overcoming other brands. The uniqueness of Nihar Naturals is that it has incorporated time -tested ingredients while enhancing performance of oils through scientific understanding. It also offers consumers the advantage of choosing from a comprehensive range of Nihar Naturals to meet their every hair need. .
MARKETING MIX OF NIHAR Marketing mix of Nihar, we shall be discussing the 4Ps of marketing mix. The mix shall be
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analy ed as followed: Product Nihar Coconut Oil is a brand of pure coconut oil that has used the platform of purity to become the market leader in the eastern region. Nihar coconut oil speaks to young mothers whose lives revolve around their families. Aware and educated, they take great pride in shouldering their family responsibilities, and want to buy only the best for their family. And the best can only mean one thing Nihar Coconut Oil.
Pakaging: Nihar, Indias only double filtered coconut oil has made a change in packaging and logo, which is innovative, convenient and vibrant. The logo lettering is now in a fresh green colour and sports a leaf over the brand name. Nihar has consistently been brin ging innovations to its consumers, it was the first to introduce the wide mouth jar and pouches packaging. Available in: Bottles: 50 ml, 100 ml, 200 ml, 500ml Flip Cans: 200ml, 500ml Pouches: 50 ml, 100ml, and 200 ml Price Nihar Naturals is available in 100ml, 200ml and 500ml packs at an affordable price ranging from Rs 17 for a 100ml to Rs 36 for a 200ml pack. There is a special trial pack, which has been introduced at Rs 9 price point for a 50ml pack. Following Price are as on the Date: 0604-2009 Print Price Size 17 Rs 100 ml 36 Rs 200 ml 86 Rs 500 ml Distribution Network in Other Country
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Bangladesh
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Nihar attracts a large consumer preference in Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Andhra Pradesh and Bengal. Promotional activities are region-specific and locally flavoured to suit the brands requirement in its area of strength. SWOT ANALYSIS OF NIHAR Strengths:
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Good reputation in customers Great community support Great consumer service Reasonable Price
Weaknesses:
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Marketing and Public Relations Multiple locations (infrastructure/communication difficulties Understaffed Minimal risk taking
Opportunities:
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Greater demand for Nihar Product Growing need for hair problem concern Huge potential exists for coordinating with local businesses to meet their needs.
Threats:
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Budget cuts Lack of appropriate consumer attention Competition with major players in service area
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The hair and care oil is huge, valued at Rs 6 bn. Due to the varied consumption habits of consumers across the country, where coconut oil and edible oil are interchangeably used, the si e of the market is likely to be higher than estimated. More importantly, the market is growing at an impressive 6-7% in volume terms despite the high penetration level. Usage of hair and care oil is a typical Indian traditional habit. Hair and care oil is a very Indian phenomenon. It is used as a conditioner and nourished. Usage of hair care oil is an everyday habit with 50% of the population out of which some perceive that massaging the head with hair oil has a cooling impact. MARKETING MIX OF HAIR & CARE Marketing mix of Hair & Care, we shall be discussing the 4Ps of marketing mix. The mix shall be analy ed as followed: Product Hair & Care is upto 50% non sticky than any other hair oil & is enriched with Herbal Proteins, which nourishes hair with their natural goodness. Herbal Proteins are extracted from Neem & Tulsi, a process patented by Marico. Price Hare & Care are available in competitive price. And not any discount offer was available during the time of my project. Size 50 ml 100 ml Print Rate Rs 20 Rs 35 Reliance fresh Price Rs 20 Rs 35
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Promotion
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For the promotion of Hare & Care hair oil in Gujrat, Marico organi ed two contests. 1st was the Hair & Care Gujarat style Icon contest and 2nd one was the launch of winners Face on the product .For face on pack press contest chief guest was Ms Earth Air-2006 Amruta Patki.
SWOT ANALYSIS OF HAIR & CARE Strengths: It is perceived to offer benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem of falling hair. Weakness:
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Internal and external customer service Communication needs to improve with the resources and customers Conservative management style Lack of long-term fiscal planning
Opportunities:
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Effectiveness on hair problems Leverage with like organi ations Remediation for hair with insufficient nature Continue growth in the hair problem
Threats:
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Recession
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High competition other Products(Clinic All Clear Hair Oil, Keo Karpin) Increasing range of hair products Increase in Price reduction trend
4.DABUR VATIKA The vatika brand was launched in 1995 with Vatika Hair oils as its First product. In the very first year of its launch it crossed Rs.100million in turnover. Over the year, vatika has come to be amongst the companys highest selling brands. It was joined in 1997 by vatika Henna cream Conditioning shampoo and later, in 2000, by Vatika Anti Dandruff shampoo. In 2003, brand sales crossed Rs. 1000 million. MARKETING MIX OF DABUR VATIKA Vatika Hair Oil has made a huge impact with its innovative product offering, price strategy, easy availability and promotion campaigns. In the marketing mix of Dabur Vatika, we shall be discussing the 4ps of marketing mix respect to Vatika Hair oil. The mix shall be analy ed as followed: Product The Brand attempt to live up to the promises beauty and nature that are associated with its very name. starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product off erring, the mother brand beaing vatika hair oil . Packaging: the qualities of vatica product ascribed to the brand by hundreds of Thousands of satisfied customer, have been further underlined by its attractive Packaging. Price Size 75 ml 150 ml 300 ml Print Price Rs 23 Rs 45 Rs 85 Reliance fresh price Rs 23 Rs 40 Rs 80
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Distributor Network
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Central, North & south America Australia Asia Middle east North & South Africa East & West Europe
Promotion Vatika - the key focus brand of the company has always been well supported. The company reali ed early that, from the perspective of brand building. It was vital to invest in this brand SWOT Analysis of Dabur Vatika: Strengths:
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Higher enrolment Number of customers in the area Continuous increase in customer population Excellent leadership at the top
Weaknesses:
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Inability to remove marginal or poor staff Some of the instructors are not current within field Use of short-term grants for long-term opportunities
Opportunities:
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Increase in hair problems Lack of Good quality in market Need of Good Quality
Threats:
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Range of hair oil brands Adjust with Customer demand Recession in the market
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RESEARCH OBJECTIVES
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To know analyse the marketing mix for the different hair-oils. To know the satisfaction level of respondents. To know the buying behaviour pattern of hair oils buyers. To know the affect of the promotional activities on the buyer. To check the Brand loyalty of hair oils consumers. To know the retailer opinion about hair oils consumers priority, and buying behaviour.
To know the affect of the promotional activities on the buyer by retailer opinion.
Marketing Research has its importance not only to track the current scenario but also to know the future trend of consumer s preference and behaviour.
After liberali ation in India, competition among FMCG companies has increase. A lot every company is trying various strategies for creating Differentiation, Leading to developing Competitive Advantage & Dabur is one of them. Dabur Has used Multi Branding Strategy very successfully for creating Competitive Advantage. This area has good scope for studying.
It ascertains the position of a company in specified industry and point out how the companys affairs are being turned up.
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It helps in development and introduction of product. It helps to know the market share of a certain product
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1- Marketing Research has its importance not only to track the current scenario but also to know the future trend of consumer s preference and behaviour. 2-It ascertains the position of a company in specified industry and point out how the companys affairs are being turned up. 3- It helps in development and introduction of product. 4- It helps to know the market share of a certain product. 5-To know analyse the marketing mix for the different hair-oils.
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RESEARCH METHODOLOGY
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Sample size I took a sample si e of 50 people and 50 for retailer taken at random, across Delhi.
Target population Working people, businessmen, students and professionals across Delhi.
Primary data Primary data are data gathered and assembled specifically for the project at hand. Here the primary data collection was done with the help of structured interview and questionnaire.
Secondary data Secondary data are data collected and assembled for some project other than the one at hand. Here the secondary data was collected through website of Dabur and other hair oils company.
Data Collection The main research instrument used for collecting the required data was a wellstructured questionnaire. A detailed questionnaire has been prepared to seek the opinion of respondent. The respondents were asked to answer and information elicited was noted.
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LIMITATION In the course of thesis I faced certain difficulties during the market survey which took time and great effort to overcome and affected the market research. The certain difficulties which I faced during my market survey are 1- People are reluctant to spare time. 2- Sample si e was small and confined in Delhi region because time constrained. 3- When I approached the retailers/whole sellers they gave their response in a hurry as they wanted to leave me as soon as possible, Which may have resulted in inappropriate responses. 4- Some respondent were initially hesitant to cooperate because of the preconceived notion that data will be misused. However, In spite of these difficulties I have tried my best to bring out the facts of the market scenario.
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ANAL
AND INTE
ETATION OF DATA
Consumer Questionnaire Anal sis Q1- Whi h brand of hair oil are you aware of?
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Q3- Where would you rate your brand on a scale of 1 5 (5 being highest)
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Q4- What are the primary reasons for which you use this particular brand?
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12%
32%
Marico Hll 56% Dabur
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Q3- According to you what are the reasons for customers preferences?
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Q7- According to you, does in-store advertising have an affect on the consumers preference?
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RECOMMENDATIONS
Recommendations as based on the case are as per the four Ps of marketing, i.e. - Product Price Place Promotion Product: As far as the product is concerned there is no necessity for changing the basic features of the product. Parachute hair oil enjoys a great customer satisfaction and brand loyalty.
Price:
competitive.
Place: Although distribution channel of Marico is among the best in corporate India, during my retail analysis I found that many of the retailers were not storing the Jumbo pack of parachute even jumbo pack was not available on the whole sellers shop .
Promotion: As we are aware of the fact that for increasing the sales promotion is must. During my research period I asked the customers are they aware about the jumbo pack of parachute and most of them were not aware of the following pack.
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CONCLUSION
In the end it is certain that Hair oil will have to really gain inroads in the rural markets in order to achieve double digit growth targets in future. There is huge potential and definitely there is lot of money in rural India but the smart thing would be to weigh in the roadblocks as carefully as possible. The hair oil companies entering rural market must do so for strategic reasons and not for tactical gains as rural consumer is still a closed book and it is only through unwavering commitment that the companies can make a dent in the market. Ultimately the winner would be the one with the required resources like time and money and also with the much needed innovative ideas to tap the rural markets. A mention of rural India may conjure up an image of abject poverty in the minds of many people. This, however, does not hold true in the case of a few fast moving consumer goods (FMCG) companies that have over the years been giving their rural operations a renewed thrust. Why would these companies be tapping into the rural markets in the first place? First, let's take a look at the distribution networks of leading FMCG companies in India - Hindustan Lever Limited, Marico. These companies are market leaders in their core areas and much of their success has to do with the intricate marketing networks they have developed over the years. Hindustan Lever, as would be expected, has the largest reach in terms of the markets serviced. Marico on the other hand, has adopted a concentrated approach by focusing on fewer markets compared to the first two, has a much smaller reach. Hare and care and parachute now derive 35% and 30% respectively of their turnover from rural markets.
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BIBLIOGRAPHY
Web sites: www.domain-b.com www.marico.com www.daburindia.com Books: Understanding The Consumers David A. Statt Marketing Research- S. L. Gupta Marketing Management Philip Kotler
Business Line
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APPENDIX
Consumer Questionnaire Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Hair Oil. Any information provided by you will purely and strictly be used for Academic Purpose only. Personal Information:Age: ___________________________________________ Gender: ________________________________________ Occupation/ Profession: ___________________________ Location: _______________________________________
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4- What are the primary reasons for which you use this particular brand?
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Purchase another Brand Wait for it to be available Go for a substitute Buy what is offered by the retailer
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75 ml 150 ml 300 ml
Yes No
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Retailer Questionnaire Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Hair Oil category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only. Personal Information:NAME OF STORE: __________________________________ HOW LONG ARE YOU IN THIS PROFESSION: _____________ ADDRESS: ________________________________________________ _________________ __________ _____________________NEW DELHI. 1- Which brand of hair oil do you stock?
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7- According to you, does in-store advertising have an affect on the consumers preference?
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Yes No
Yes No
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