A

Project Report
On

Marketing strategy of Dabur Vatika Hair Oil

&
Dabur Chyawanprash

Submitted in partial fulfillment of award of the

Bachelor of Business Administration

Submitted To : Submitted by:

Mr. Sachin Gupta Hardeep Singh Bajwa
Roll no. 1470250014

Institute of Management & Technology

 MARKETING MANAGEMENT
TERM PROJECT

Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
 Acknowledgement

The present work is an effort to throw some light on “Marketing

Strategy of Dabur Honey & Chyawanprash”. The work would not have
been possible to come to the present shape without the able guidance,
supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and

guidance received by my organizational guide Mr. Sachin Gupta
(BRANCH MANAGER) and other staff members of Dabur India Ltd.

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Research Report.
 TABLE OF CONTENT
1. Executive Summary
2. FMCG Sector Overview
3. Company Overview
4. FINANCIAL REPORT

5. Company History
6. Product Line of Dabur
7. SWOT Analysis
8. Overview of Hair Oil Segment
9. Overview of Vatika
10. STP Analysis of Vatika Hair Oil
11. Marketing Mix of Vatka hair Oil
12. Advertising
13. Competitor Analysis of Vatika Hair Oil
14. Customer Questionnaire of Vatika Hair Oil
15. Customer Survey Results of Vatika Hair Oil
16. Retailer Questionnaire of Vatika Hair Oil
17. Retailer Survey Results of Vatika Hair Oil
18. STP Analysis of Dabur Chyawanprash
19. Marketing Mix of Dabur Chyawanprash
20. Competitor Analysis of Dabur Chyawanprash
21. Customer Questionnaire of Dabur Chyawanprash
22. Customer Survey Results of Dabur Chywanprash
23. Retailer Questionnaire of Dabur Chywanprash
24. Retailer Survey Results of Dabur Chyawanprash
25. Ansoff’s Product Market Expansion Grid
26. The BCG Growth-Share Matrix
27. The New Dabur Entity
28. The Future of Daburcon
29. Recommendations
30. References
 EXECUTIVE SUMMARY

This report aims at analyzing and reporting on the marketing strategies of Dabur
India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In
the very first year of its launch it crossed Rs. 100 million in turnover. Over the
years, Vatika has come to be amongst the company’s highest selling brands.
Vatika is a comparatively young brand but is already acknowledged for the
qualitatively influential and pioneering role that it has played in the evolution of
the categories it has had a presence in. Dabur Chyawanprash is the leader in the
Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur
pioneered the concept of branded Chyawanprash and since has invested heavily
in product development, clinical studies and consumer awareness. The product
is essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing strategy of
Dabur India Ltd, but is an attempt to analyse the marketing mix of Dabur Vatika
Hair Oil and Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc.
This analysis has been done on the basis of the information gathered from the
company website and other online resources and books and articles.
 OBJECTIVE OF THE STUDY

Following are the major objective of study:-

1. To study the impact of Budget Policies on Marketing Strategy of

Dabur Foods.

2. To study the Consumer, Buying behavior.

3. To study the problems faced by Dabur.

IMPORTANCE OF THE STUDY

Being student of MBA it is very essential for me to have a practical

knowledge in an organisation. Only to study business administration

course knowledge is not the solution of the problems, which arise in

practical field. There is a certain formula for any particular problem,

but the aim of this study is to develop the ability of decision making.

A right decision at right time and right place itself helps an

organisation to run smoothly.

This study gives an idea of all marketing activities. So the way a

problem is solved right decision making and knowledge of different

types of making activities give much importance to the study. Only in

two month training it was not possible to understand it so deeply, but

an overall idea could be developed.

 OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in

the economy with a total market size in excess of US$
13.1 billion. It has a strong MNC presence and is
characterised by a well-established distribution network,
intense competition between the organized and
unorganized 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 millions. Around 70 per cent of
the total households in India (188 million) resides in the rural areas. The total
number of rural households are expected to rise from 135 million in 2001-02 to
153 million in 2009-10. This presents the largest potential market in the world.
The annual size of the rural FMCG market was estimated at around US$ 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.
 Rural and urban potential
Rural-urban profile
Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
Source: Statistical Outline of India (2001-02), NCAER

An average Indian spends around 40 per cent of his income on grocery and 8 per
cent on personal care products. The large share of fast moving consumer goods
(FMCG) in total individual spending along with the large population base is
another factor that makes India one of the largest FMCG markets.
Rapid urbanisation, increased literacy and rising per capita income, have all
caused rapid growth and change in demand patterns, leading to an explosion of
new opportunities. Around 45 per cent of the population in India is below 20
years of age and the young population is set to rise further. Aspiration levels in
this age group have been fuelled by greater media exposure, unleashing a latent
demand with more money and a new mindset.
 COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through
a natural lifestyle. An umbrella name for a variety of products, ranging from hair
care to honey, Dabur has consistently ranked among India’s top brands. Its
brands are built on the foundation of trust that a Dabur offering will never cause
one harm.
The trust levels that this brand enjoys are phenomenally high. While Ries and
Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The
answer is fairly simple, it stands for India’s fourth largest fast moving consumer
goods company that both consumers and trade respect and trust unequivocally,
and which has an annual turnover of over Rs 15 billion.
The company has kept an eye on new generations of customers with a range of
products that cater to a modern lifestyle, while managing not to alienate earlier
generations of loyal customers.
Dabur is an investor friendly brand as its financial performance shows. There is
an abundance of information for its investors and prospective information
including a daily update on the share price (something that very few Indian
brands do). There’s a great sense of responsibility for investors’ funds on view.
This is a direct extension of Dabur’s philosophy of taking care of its constituents
and it adds to the sense of trust for the brand overall.
 FINANCIAL REPORT

Rs (Crores)

2004-2005 2003-2004

Turn over (including other income) 1280.22 1159.02

Profit before tax 165.02 113.44

Add: Provisions of earlier yr written back - 0.20

165.02 113.44

Less: provision for taxation - current 13.00 8.75

: provision for taxation – Deferred 4.00 3.49

: provision for taxation for earlier yr 0.05 00.26

PROFIT AFTER TAX 147.97 101.14

Add: Balance in profit & loss account b/f 81.12 66.12

From the previous yr

- Transferred from debenture -- 2.50

Redemption Reserve

- Transferred from investment 0.83 -

Allowance Reserve

- Transferred from Investment 1.82 -

Deposit Revenue

PROFIT AVAILABLE FOR APPLICATION 231.74 169.76

APPROPRIATION TO:

General Revenue 25.15 22.50

Capital Revenue -
1.56

Interim Dividend paid 28.63 17.17

Final Dividend – proposed 42.96 40.07

Corporate tax on Dividend 9.77 7.34

Balance carried over to Balance sheet 125.23 81.12

TOTAL 231.74 169.76

1884 Birth of Dabur

1896 Setting up a manufacturing plant
Early 1900s Ayurvedic medicines
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
1979 Sahibabad factory / Dabur Research Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Rs.1,000 crores

COMPANY HISTORY

PRODUCT LINE

Foods

 Real
 Real Activ
  Hommade
 Lemoneez
 Capsico

Health Care

Baby Care

 Dabur Lal Tail

 Dabur Baby Olive Oil
 Dabur Janma Ghunti

Health Supplements

 Dabur Chyawanprash
 Dabur Glucose D

Digestives

 Hajmola Yumstick
 Hajmola Mast Masala
 Anardana
 Hajmola
 Hajmola Candy
 Hajmola Candy Fun2
 Pudin Hara (Liquid and Pearls)
 Pudin Hara G
 Dabur Hingoli

Natural Cures
  Shilajit Gold
 Nature Care
 Sat Isabgol
 Shilajit
 Ring Ring
 Itch Care
 Backaid
 Shankha Pushpi
 Dabur Balm
 Sarbyna Strong

Personal Care

Hair Care Oil

 Amla Hair Oil

 Amla Lite Hair Oil
 Vatika Hair Oil
 Anmol Sarson Amla

Hair Care Shampoo

 Anmol Silky Black Shampoo

 Vatika Henna Conditioning Shampoo
 Vatika AntiDandruff Shampoo
  Anmol Natural Shine Shampoo

Oral Care

 Dabur Red Gel

 Dabur Red Toothpaste
 Babool Toothpaste
 Dabur Lal Dant Manjan
 Dabur Binaca Toothbrush

Skin Care

 Gulabari
 Vatika Fairness Face Pack

Ayurvedic Specialities

 Ayurveda
 Ayurveda Vikas

SWOT ANALYSIS OF DABUR

STRENGTHS WEAKNESS
 Strong presence in well defined  Seasonal Demand( like
niches( like value added Hair Oil chyawanprash in winter and Vatika
and Ayurveda specialities) not in winter)
 Core knowledge of Ayurveda as  Low Penetration(Chyawanprash)
competitive advantage  High price(Vatika)
 Strong Brand Image  Limited differentiation (Vatika)
 Product Development Strength  Unbranded players account for the
 Strong Distribution Network 2/3rd of the total market(Vatika)
 Extensive Supply Chain
 IT Initiatives
 R & D – a key strength

OPPORTUNITIES THREATS
 Untapped Market(Chyawanprash)  Existing Competition( like Himani,
 Market Development baidyanath and Zandu for Dabur
 Export opportunities. Chyawanprash and Marico,Keo

 Innovation Karpin, HLL and Bajaj for Vatika

 Increasing income level of the Hair Oil)

middle class  New Entrants

 Creating additional consumption  Threat from substitutes (like

pattern Bryllcream for Vatika hair oil)

 OVERVIEW OF THE HAIR OIL SEGMENT

In the last quarter of the previous century Indian women have imbibed global
mores, ethics, fashions and styles in a remarkable way. Yet the popular
iconography of Indian beauty still associates them with beautiful fair skin and
dark, long lustrous hair – a commonly accepted definition of beauty in Indian
society.

Across the country, mothers spend endless hours teaching their daughters
what their mothers had taught them about maintenance of their natural beauty
– taken primarily as caring for the skin and hair. In the hair care regime, of the
numerous prescriptions none is more universally accepted than the oiling of
hair for nourishment and use of home-made concoctions of henna and
shikakai paste for conditioning them.

It would come as a surprise to only a few that hair oils have a penetration of
almost 98% (Source: IRS 2003). Of the branded market, hair oils form a major
chunk accounting for Rs. 13 billion with coconut hair oils as the prime segment
at Rs. 9.1 billion. (Source: ACNielsen ORG-MARG 2003).

OVERVIEW OF VATIKA:
The Vatika brand was launched in 1995 with Vatika Hair Oil as its
first product. In the very first year of its launch it crossed Rs. 100 million in
turnover. Over the years, Vatika has come to be amongst the company’s
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.
1,000 million. From the company’s perspective, Vatika is expected to continue
to drive its growth in the years to come. With its innovative offerings, the brand
aims to become a frontrunner in the market for hair care and skin care
products.

Vatika is a comparatively young brand but is already acknowledged for the

qualitatively influential and pioneering role that it has played in the evolution of
the categories it has had a presence in. Currently, the total annual sales of
Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a
6.4% market share in the coconut hair oil category (Source: ACNielsen ORG-
MARG, 2003).

Vatika has not just been successful in garnering a premium image but, today,
stands as the preferred and trusted brand of 11.1 million users (Source: IRS
Household Data).

STP ANALYSIS OF VATIKA HAIR OIL

 SEGMENTATION

Vatika Hair Oil was launched at an almost 100% premium to the market
leader. This meant that the segment of the market that dabur wanted to
cater to was the premium segment which valued nourishment of the hair
above the price and it tried to attend to that segment which was not price
sensitive.

TARGETING

This was in line with its proposition and overall brand strategy of a premium
up-market product targeted for individual needs as opposed to the collectivist
culture of the category. It targeted the high income urban category of hair oil
users. Since the product was expensive it could mainly cater to the urban
market as opposed to the rural market where consumers are highly price
sensitive. Being positioned as having amla, henna and lemon extracts, the
product was targeted towards the young, contemporary, educated, multi-
faceted, achievement-driven and confident women who were positioned as the
Vatika Woman.

POSITIONING

‘Total hair Care’ brand:

The product innovation was fed by the vital consumer insight that many
women in contemporary India are worried about hair problems caused by
urban pollution, frequent change of diet due to geographical mobility and
other factors. Beset by modern-day hair problems, they are far more
inclined to rely on home-grown remedies. By offering hair oil that combined
the benefits of natural products in a single pack, Vatika created a niche for
itself as the ‘total hair care’ brand.

“Natural” offering:
Vatika is a brand that espouses traditional wisdom about health in a
modern format. It believes that nature has perennial answers to day-to-day
health issues, particularly when it comes to hair care and skin care. In a
world where modern living causes untold stress the Vatika brand holds out
the promise of providing natural ingredients that rejuvenate and safeguard
the human body in an extraordinary way. This concept is put to work
through contemporary, modern products, offered by Vatika.

The Vatika woman:

The Vatika woman is young, contemporary, educated, multi-faceted,

achievement-driven and confident. It is in the Vatika brand that she sees a
true reflection of her own personal ideals.Through creation of the concept
of Vatika woman,it has tried to carve out a new positioning in the minds of
the new age woman.
 MARKETING MIX OF VATIKA HAIR OIL

Vatika Hair Oil has made a huge impact with its innovative product offering,
pricing strategy, easy availability and promotion campaigns. In the marketing mix
of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika
Hair Oil. The mix shall be analyzed as followed:
 Product
 Price
 Place
 Promotion

Product Price Promotion Place

• Product • List Price • Advertising & • Channels

Variety • Discount Promotion • Location
• Quality • Financing • Public Relations • Inventory
• Design Schemes • Sponsorships
• Features • Credit Terms • Internet
• Brand Marketing
Names
• Services

PRODUCT:
Brand Name: Vatika in Hindi means ‘garden’. The brand attempts
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 offerings,
the mother brand being Vatika Hair Oil..

Innovative product offering:. Vatika Hair Oil is coconut hair oil with
special ingredients adding value to the product. While coconut oil has been
regularly used by Indian women as a basic hair nutrient, a combination of
herbs and natural products such as henna, amla and lemon have been
used for special hair needs.

Coconut hair oil provides nourishment to the hair, while henna along with
other herbs coat the hair and protect it from oxidation, thereby maintaining
its natural colour. Amla strengthens hair roots and helps maintain their
natural health and thickness. Lemon with its astringent action controls
sebum flow and helps in prevention of dandruff.

Apart from henna, Amla and Lemon, it also contains other natural
ingredients like Brahmi, Neem, Bahera, Kapurkachari, Harar, Dugdha
and Dugandhit Dravyas.

Packaging: The qualities of Vatika products, ascribed to the brand by

hundreds of thousands of satisfied consumers, have been further
underlined by its attractive packaging. In a category dominated by blue
packs as analogous of pure coconut oils, Vatika broke the norm with its
white and green bottle with a mushroom cap. The green-and-white colours,
used in its packaging, reflect the brands’ natural ancestry and give it a
premium look. These also help Vatika stand out in the cluttered
environment of Indian retail.

Available in:

Bottles 75 ml, 150 ml, 300 ml

Flip cans 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have been

blended together through scientific processes at Dabur’s in-house research
laboratories. Dabur Research Foundation has more than 100 scientists
working together to make superior quality products that match international
standards.

PRICE:

In the traditional coconut hair oil category, which presumably had price
sensitive consumers, Vatika Hair Oil with its value added proposition –
henna, Amla and Lemon in a pure coconut oil – broke this myth when it
launched at almost a 100% premium to the market leader; even with
such a pricing strategy it was able to garner a significant share from
the leader in the very first year of its launch.

The table above shows that Dabur Vatika is one of the highest priced of
hair oils since it targets the higher income class and also that the prices
have remain unchanged since 1999.

PRICE/QUALITY MATRIX
 Price→ Low

Quality High Middle

↓
Luxury Ideal For Premiere

High Segment Penetration Offering

VATIKA
Overpriced Average Real
Middle Bargain

Make The Unhappy Cheap

Low Sale and Run Customers Goods

PLACE

Vatika products including Vatika Hair Oil are sold in 38 countries through more
than 15 lakh retail outlets and 5,000 distributors who service the entire country
through a wide marketing network.
Dabur’s distribution network extends beyond India in the following countries as
well:

Distribution Network

 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 realised early that, from the perspective of
brand building, it was vital to invest in this brand.

Vatika Hair Oil’s first promotion: It focussed on the key benefit –

beautiful hair without hair problems – that came about as a result of the
extra nourishment through the value addition of henna, amla and lemon-
derived additives.

Creating conceptual awareness: In the initial phase of the

communication, the marketing objective was to create conceptual
awareness about the new product – the goodness of coconut oil enriched
with natural herbs. Vatika was firmly established as the leader in the new
category of value-added hair oils and its promotion campaign was so
successful that the product segment itself came to be identified with Vatika.

In 1997, the company created a new promotion campaign which reinforced

the obvious fact that most coconut oil brands were not equipped to combat
the effects of pollution, hard water and chemicals – the major causes of hair
ailments and hair deterioration.

ADVERTISING
 “Advertising is some form of paid-for method of communicating
with the target audience to inform, educate, reinforce or persuade, leading
to mutually satisfactory exchange”

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with
prospective buyers. Ads are necessary because the images are still
mouldable and fluid and the consumer’s sophistication level is low.

Vatika Hair Oil uses a number of advertising media like television, print,
internet, outdoor media which includes hoardings.

Events: In a series of other promotional activities, Vatika has been

associated with shows and sponsored events such as the Vatika Super
Model India 2001 and Vatika Zee Sangeet Awards. It has also had a
strong association, since its inception, with Mover’s and Shakers’ – the
popular TV show.

Celebrity Endorsements: The idea of using an

extraordinary hair oil that offered extra nourishment
was communicated through campaigns featuring
icons such as Mandira Bedi, Shefali Chhaya and
Sudha Chandran– all modern, young women
perceived to have that extra edge in their
personality.A number of commercials over the
years have featured personalities like Aditi
Govitrikar, Preeti Jhangiani and Shweta
Jaishankar.To infuse the values of youthfulness and natural beauty, Rani
Mukherjee is the current brand ambassador.

COMPETITOR ANALYSIS
The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin,
Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's
domestic market.

Dabur is one of India's largest player in the hair oil segment and the fourth
largest producer of FMCG. It was established in 1884, and had grown to a
business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have
a market share of 19%.

We have tried to analyse the competition for Dabur in the Hair Care segment as
follows:

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The
pleasantly perfumed hair oil has its main market in the Hindi belt and also has
significant presence in eastern and western India. Its share is 6% of the total hair
oil market.
Emami has existence in hair oil market through Himani Navratan oil
and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami
oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4%
in hair oil market.

Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond Drops —
currently have a value share of 19 per cent and 12 per cent in their respective oil
categories as per ORG-Marg. Besides, the company has also decided to
enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail
outlets in an attempt to reach the rural parts. Overall it has a market share of 4%
in hair oil market.

Marico’s 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 purity. In fact over time it has become the gold standard for purity.
Parachute's primary target has been women of all ages. The brand has a huge
loyalty, not only in the urban sections of India but also in the rural sector. It has a
market share of 28%.

HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it
has a 3% share in hair oil market.

CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for hair oil.

Any information provided by you will strictly be used for Academic Purpose.

1. Which brands of hair oil are you aware of?

 Parachute
 Keo Karpin
 Nihar
 Hair And Care
 Dabur Vatika

2. Which brand of Hair Oil do you use?

 Parachute
 Keo Karpin
 Nihar
 Hair And Care
 Dabur Vatika

3. Where would you rate your brand on a scale of 1 – 5 ( 5 being highest)?

 1
 2
 3
 4
 5

4. What are the primary reasons for which you use this particular brand?
 Non sticky
  Brand Loyalty
 Fragrance
 Price

5. How did you get to hear about this brand?

 TV
 Internet
 Word of Mouth
 Print

6. If your brand is not available you would..?

 Purchase another brand
 Wait for it to be available
 Go for a substitute
 Buy what is offered by the retailer

7. Which pack size do you prefer?

 75 ml
 150 ml
 300 ml

8. On what parameters do you choose this pack size?

 Availability
 Price
 Family size
 Storage

9. How often do you buy?

 Once in 15 days
 Once a month
  Once in two months

10. Are you satisfied with your brand?

 Yes
 No

Personal Information :-

Age:
Location:
Income (per month):
(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,000
 CUSTOMER SURVEY RESULTS
DABUR VATIKA
AWARNESS LEVEL

PREFERRED BRAND

SATISFACTION LEVEL
REASON TO BUY THE PREFFERED BRAND

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

UNAVAILABILITY OF PREFERRED BRAND

PREFERRED PACK SIZE

REASON TO SELECT PREFERRED PACK SIZE

FREQUENCY OF PURCHASE
 RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL

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.

1. Which brands of Hair Oil do you stock?

 Marico
 HLL
 Keo Karpin
 Dabur Vatika

2. Out of these which are the most preferred?

 Marico
 HLL
 Keo Karpin
 Dabur Vatika

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

 Brand loyalty
 Price
 Availability
 No reason

4. What is the profile of your typical consumer?

 High income
 Middle income
  Low income

5. What schemes are you offered by the companies?

 Price discounts
 Buy one get one free
 Others

6. What schemes does a consumer prefer most?

 Price discounts
 Buy one get one free
 Others

7. According to you, does in-store advertising have an affect on the

consumers’ preference?
 Yes
 No

8. Does a change in price affect their preferences?

 Yes
 No

Personal Information :-

Location of store:
 RETAIL SURVEY RESULTS

DABUR VATIKA

1. Which brands of Hair Oil do you stock?

2.Out of these which are the most preferred?

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

4. What is the profile of your typical consumer?

5. What schemes are you offered by the companies?

6. What schemes does a consumer prefer most?

7. According to you, does in-store advertising have an affect on the consumers’
preference?

8.Does a change in price affect their preferences

 STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It

comes under the category of health supplements. The segments that it considers
are growing kids, competitive youth, ever busy housewives and the aged.
For the growing kids: In today's competitive environment, the children are
under high pressure to excel.
For the competitive youth: Modern life keeps the youth busy and demands
them to be active and efficient.
For ever-busy housewives: The 'homemaker' needs to be fit in order to
shoulder all responsibilities.
For the aged: Old age weakens a person physically and mentally.
After segmenting the population into these categories it aims to keep them fit
and healthy.

TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for the

aged and kids. Dabur Chyawanprash (DCP) is now targeting adults,
housewives, youth and kids .This it is trying to achieve through its promotion
activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement
act. Amitabh has been projected as a user of Chyawanprash attempting to
establish the relevance of DCP amongst the adults in today’s demanding
lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that
Chyawanprash is not for him, meets his moment of truth when outperformed by a
young Chyawanprash user, thus reaching out to kids. His final conversion from a
non-user to a Chyawanprash user connects with the Youth. These two
ads compliment each other and connect very well with the targeted consumers

POSITIONING

"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong”
By using a natural language instead of scientific language it is able to connect
with the consumers and is able to achieve a better positioning in the minds of the
Indian health conscious consumer. A category like Chyawanprash for instance
needs to understand that in employing the category language it loses any chance
of expressing its own benefit distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating

immune system, relieving stress, improving stamina, fighting aging through anti-
oxidant property, improving lung function, fighting respiratory infections & building
resistance to disease. The brand conveys this health conscious holistic view of
the product.

Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures

selection, processing and quality control of right herbs along with scientific and
clinical studies – makes DCP a trustworthy offering for consumers. Consumers
view DCP as a product by a trusted brand and therefore do not need to think
twice before making a purchasing decision.
 MARKETING MIX OF DABUR CHYAWANPRASH
Dabur Chyawanprash is the market leader in the chyawanprash segment and
has achieved this with its innovative product offering, pricing strategy, easy
availability and promotion campaigns. In the marketing mix of Dabur, we shall be
discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The
mix shall be analyzed as followed:
 Product
 Price
 Place
 Promotion
Product Price Promotion Place
 • Product • List Price • Advertising & •
Variety • Discount Promotion Channels
• Quality • Financing • Public Relations • Location
• Design Schemes • Sponsorships • Inventory
• Features • Credit Terms • Internet
• Brand Marketing
Names
• Services
PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash

category and enjoys a market share of 61 per cent. In 50s Dabur
pioneered the concept of branded Chyawanprash and since has
invested heavily in product development, clinical studies and
consumer awareness. The product is essentially a health
supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning. The principal ingredient Amla (Indian
Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur
Chyawanprash helps in stimulating immune system, relieving stress, improving
stamina, fighting aging through anti-oxidant property, improving lung function,
fighting respiratory infections & building resistance to disease. It is these
properties that make Dabur Chyawanprash a preferred choice for its users.

Ingredients of Dabur Chyawanprash

 Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
 Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.
Packaging:

The figure above shows the evolution of the packaging of Dabur Chyawanprash.
Dabur continuously innovates the package and branding of its chayawanprash.
It launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first
branded Chyawanprash in India. Later Dabur came out with its new packet of
Chyawanprash with Amitabh Bachchan as their brand ambassador. It also
received “Brand Relaunch of the Year “award from IMA.

Available in:
Dabur Chyawanprash is available in three sizes to cater to the needs of different
types of people.
1. One kilogram pack
2. 500 gram pack
3. 250 gram pack
 PRICE

The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash

uses second degree price discrimination i.e more the quantity, lower the price.
1kg Rs.175.00
500gms Rs.100.00
250gms Rs. 55.00
PRICE/QUALITY MATRIX

Price→

Quality High Middle Low

↓
Luxury Ideal For Premiere
Segment Penetration Offering
High
DABUR
CHYAWANPRASH

Overpriced Average Real

Middle Bargain

Make The Unhappy Cheap

Low Sale and Customers Goods
Run
 PLACE

Dabur has a very wide distribution of its products through 1.6 million retail
outlets and 50 C & F agents all over India who distribute products to the retailers.
A distribution of C & F agents and manufacturing locations is given below.

Dabur’s distribution network extends beyond India in the following countries as

well:

Distribution Network
  Central, North & South America
 Australia

 Asia

 Middle East

 North & South Africa

 East & West Europe

PROMOTION

The main form of promotional activities of Dabur chyawanprash are concentrated

towards advertising and it has neglible sales promotional activities.

Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective
buyers. Ads are necessary because the images are still mouldable and fluid and
the consumer’s sophistication level is low. Dabur chyawanprash is advertised on
print media as well as on television.
The company has launched two ads, one each with Amitabh and Vivek, in
national electronic media followed by a series of print media campaign directed
towards creating awareness to educate people about the holistic benefits of
Chyawanprash.The ads have been created by McCann Ericsson and the
company would be spending close to Rs 10 crore in promotional campaign this
year. The ads would also be translated in Bengali. These advertisements are
supposed to target the old and the younger generation respectively.
.

Advertisement showing Vivek Oberoi

A little boy suggests his brother to have Dabur To which the brother replies,
Chyawanprash everyday. “Mujhe iski kya zaroorat?

The boy asserts, “Zaroorat hai!” and starts The big brother follows him
running. but is unable to catch him
using every way.
Running with super energy the boy dives into the ...the big brother also dives in
river. Not to be left behind... the river but ultimately stops
when he gets tired

With no option left he agrees The ad ends on the big

with his younger brother, “maan brother promising to have a
gaye guru, tere Dabur Chyawanprash ko” spoon of the chyawanprash
everyday. But our younger
one insists on two spoons.
 COMPETITOR ANALYSIS

The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath,

Zandu and Himani, which together with Dabur have about 85% of India's
domestic market.

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business
level in 2003 of about 650 million dollars per year, though only a fraction of that is
involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a
market share of 61%.

We have tried to analyse the competition for Dabur in the Chyawanprash

segment as follows:
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in
1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently
expanded into the FMCG sector with cosmetic and hair care products; one of its
international products is Shikakai (soap pod) Shampoo.Its Chyawanprash has a
market share of 10%.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named

after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic
products (in 1930, pharmaceuticals were added, but the pharmaceutical division
was separated off about 30 years later).

The Emami Group, founded in 1974, provides a diverse range of products,

doing 110 million dollars of business annually, though only a portion is involved
with Ayurvedic products, through its Himani line; the company is mainly involved
with toiletries and cosmetics, but also provides Chyawanprash and other health
products.Its market share is 12%.
 CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for chawanprash.

Any information provided by you will strictly be used for Academic Purpose.

1.Which brands of Chawanprash are you aware of?

 Zandu
 Himani
 Baidyanath
 Dabur

2.Which brand of Chawanprash do you use?

  Zandu
 Himani
 Baidyanath
 Dabur

3.Where would you rate your brand on a scale of 1 – 5 (5 being highest)?

 1
 2
 3
 4
 5

4.What are the primary reasons for which you use this particular brand?
 Health
 Brand Loyalty
 Taste
 Price

5.How did you get to hear about this brand?

 TV
 Internet
 Word of Mouth
 Print

6.If your brand is not available you would..?

 Purchase another brand
 Wait for it to be available
 Go for a substitute
 Buy what is offered by the retailer
 7.Which pack size do you prefer?
 1 kg
 500 gm
 250 gm

8.On what parameters do you choose this pack size?

 Availability
 Price
 Family size
 Storage

9.How often do you buy?

 Once a month
 Once in two months
 Once in six months

10.Are you satisfied with your brand?

 Yes
 No

Personal Information :-

Age:
Location:
Income (per month):
(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,000
 CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL
PREFERRED BRAND

SATISFACTION LEVEL

REASONS FOR SELECTING A PARTICULAR BRAND

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

UNAVAILABILITY OF PREFERRED BRAND

PREFERRED PACK SIZE

REASON TO SELECT PREFERRED PACK SIZE

FREQUENCY OF PURCHARE
 RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for the Chyawanprash category that we have
chosen to study.

Any information provided by you will purely and strictly be used for Academic
Purpose only.

1.Which brands of Chyawanprash do you stock?

 Zandu
 Himani
 Baidyanath
 Dabur

2.Out of these which are the most preferred?

 Zandu
 Himani
 Baidyanath
 Dabur

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

 Brand loyalty
 Price
 Availability
 No reason

4.What is the profile of your typical consumer?

 High income
 Middle income
 Low income
 5.What schemes are you offered by the companies?
 Price discounts
 Buy one get one free
 Others

6.What schemes does a consumer prefer most?

 Price discounts
 Buy one get one free
 Others

7.According to you, does in-store advertising have an affect on the

consumers’ preference?
 Yes
 No
8.Does a change in price affect their preferences?
 Yes
 No

Personal Information :-

Location of store:
 RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

2.Out of these which are the most preferred?

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

4.What is the profile of your typical consumer?

5.What schemes are you offered by the companies?

6.What schemes does a consumer prefer most?

7.According to you, does in-store advertising have an affect on the consumers’
preference?

8.Does a change in price affect their preferences?

 DISTRIBUTION

Supply chain: Dabur has steadily improved its procurement and distribution
systems to achieve a significant reduction in material costs. Dabur has an
extensive supply chain and distribution network that has grown and spans 29
factories, 47 stocking points, 4 zonal offices, a dozen manufacturing
locations, six mother-warehouses and over 50 Carrying and Forwarding
Agents(CFAs) that distribute more than 1,000 SKU’s to several thousand
stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse
displays as-of-yesterday sales, stock, receivables, banking, and other MIS. Over
5,000 ASP pages meet almost all reporting requirements and make this a single
source of MIS for all levels of decision makers.
VSATs :This Success paved the ground for the company's supply chain initiative.
Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the
system. Factories were hooked up using PAMA (Permanent Assigned Multiple
Access) VSATs. At some locations VPNs had to be used because it was not
possible to set up a dish.The integrated primary and secondary system has a
number of unique features. The features like tight integration of schemes,
stockists credit limit control, automated banking of cheques, and online cheque
reconciliation have obvious advantages in the primary distribution. These are
basically extensions to the MFG/PRO ERP system and not core customizations.
The integrated system allows each Area Manager to plan for the month's sales
forecasts, stockists performance, and sales officers' performance.The integration
allows better control on pipelines in primaries and secondaries, brings down
inventories, and offers better control on production and sales against a confirmed
forecast. The idea is to increasingly shift focus from primaries to secondaries.
Schemes based on secondary volumes will help control secondary pipelines and
sales. Primary sales will therefore come from a resultant 'pull' from secondary
replenishments. Further, sales order servicing can be improved by taking orders
through the Internet, and by setting stocking norms and replenishing
stocks to improve ROI of stock holders.

ANSOFF’S PRODUCT MARKET EXPANSION GRID

MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan

and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish
the relevance of Chyawanprash in an increasingly tough and demanding lifestyle,
for the entire family. As a market leader, Dabur’s focus has been to increase the
relevance of this time-tested and proven product in the family - both for users and
non users - and increase penetration. In their new campaign they have tried to
establish the fact that Chyawanprash, with its ‘well - being’ properties, gives an
edge to the users and dispel the myth that it should be consumed in illness or is
meant only for Children or the aged.

MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area

for the future. An international business division has been set up within the
company to promote exports and it expect this business to grow steadily in the
coming years. The company plans to focus on Russia and CIS
countries along with Afghanistan, West Indies and the Asia Pacific region. It
has also entered the North American markets by appointing distributors and
initiating marketing of products to the ethnic Indian segment. The company has
already been exporting hair oils, shampoos and Hajmola candies to Afghanistan.
In Bangladesh, Dabur is entering into a joint venture with a local partner to
manufacture and market its products. Dabur will hold a majority stake in this joint
venture.

PRODUCT DEVELOPMENT:

Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first
quarter this fiscal, would be investing significantly in the launch of several new
products including Dabur Herbal Toothpaste and Vatika Henna Conditioning
hair packs over the coming months.

The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry

cannot be defined only by the performance of large players. Smaller companies
are now dictating terms and defining the market. DIL will launch new products
backed by adequate research."

DIVERSIFICATION: Diversification across product segments and markets is one

of the key factors in favour of Dabur India. In 2001-02, Dabur India had three
major revenue contributors — FMCG products, pharmaceuticals and ayurvedic
specialties, accounting for 76 per cent, 14 per cent and 7 per cent respectively, of
its revenues. Dabur's FMCG product basket includes such strong brands as
Dabur Chyawanprash, Vatika hair products, Hajmola digestive candy, Pudin
Hara, Dabur Lal Dant Manjan and Dabur Lal Tail massage oil. In
pharmaceuticals, Dabur India markets branded as well as bulk formulations, both
in the domestic and export markets; oncologicals is a key focus area. Dabur's
anticancer molecule DRF 7295 is currently in Phase I clinical trials on humans.
In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has
entered the toilet soap market besides expanding its over-the-counter (OTC)
medicine range with 10 new additions over the next few months. The company
has begun test marketing toilet soaps under the brand name Vatika in West
Bengal. There is a single variant, containing saffron and honey, right now and
Dabur is positioning it on the herbal platform. Manufacturing of the soaps
category is being outsourced at present

Besides diversifying its product portfolio under the Consumer Care Division
(CCD) with a foray into soaps, DIL has also decided to enhance focus on the
Consumer Healthcare Division (CHD) this fiscal. The newly created CHD division
within DIL deals in prescription-based Ayurvedic medicines and over-the-counter
(OTC) products. Traditionally a business with low growth prospects, CHD closed
2004-05 at Rs 107.8 crore.

Some of the existing OTC products of DIL include cough and cold formulation
Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi .

The company plans to launch other products under its own brand name in Russia
and has already launched Dabur Boro Glow.

.
 BOSTON CONSULTANCY GROUP’S GROWTH SHARE MATRIX

↓ DABUR

In the past, the sheer diversity of Dabur's product portfolio has made an
evaluation of the company's prospects quite difficult.

Dabur's FMCG business contributes over 70 per cent of Dabur India's current
revenues. Within the FMCG business, Dabur India focusses on three key product
groups — family products, healthcare and FMCG exports. The family products
portfolio boasts of quite a few market leading brands — Dabur Amla and Vatika
hair oils, Vatika shampoo, Dabur Honey, and Dabur Lal Dant Manjan.

Dabur India also has well-recognised brand names and an established

distribution set-up in the healthcare business with brands such as Dabur
Chyawanprash, Hajmola, Pudin Hara and Dabur Lal Tail. Given Dabur's
acknowledged strengths in ayurvedic healthcare, the scope for expansion in
each of these product baskets is considerable.

Though in the recent years, the growth from Dabur's FMCG portfolio has
been sedate, due to sluggish rural demand and intense competition from a host
of regional brands and counterfeit products. However Dabur's
operating profit margins have been more or less constant over this period.

However, the FMCG business is Dabur's cash cow contributing over 70 per
cent of Dabur India's current revenues. The business has consistently
generated high cash flows and called for minimal incremental investments. The
overall growth in hair oil industry has been 7% whereas growth in branded
coconut oil has been 10%.Vatika hair oil has a market share of 19% and
Dabur Chyawanprash has a 61% market share and is the market leader. Both
of these are therefore Dabur’s cash cow.
THE NEW DABUR ENTITY

The New Dabur Identity modernizes the 100-year old equity of the Dabur brand
by subtly transforming the tree. While it retains the essence of the banyan tree, it
now projects a contemporary image, in consonance with today's lifestyle.

The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food

and protection. On a metaphysical plane, the tree is regarded as sacred,
trustworthy and a symbol of fertility. The new Dabur identity retains these
enduring and valuable attributes, while it adds a fresh, healthy and holistic
dimension to the tree.

The new identity appropriates nature as the wellspring for Dabur. It conveys
Dabur's heritage, commitment and stability through the form and colours of the
tree; its branches and leaves. It also conveys that the brand stands for wellness
across age groups.Taken as a whole, the tree appears well rooted, implying
stability; and its abundant canopy implies that it can provide amply for those who
seek its produce and shade. Further, the entire image, being well-proportioned,
evokes a harmonious, well-balanced, wholesome and holistic brand.

In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a
heaven for creatures it generously harbours in its foliage, as well as in the shade
of its canopy. The tree is held auspicious as it spreads through the three spheres
with its roots meshing through the earth, its trunk rising through the terrestrial
world and its branches reaching into the heavens. This symbolism also occurs in
cultures across the world.

Keeping these vital associations in mind, the tree in the new Dabur identity has
been carefully created to communicate Dabur's invaluable 100-year old legacy as
well as its future aspirations. It now takes on a younger avatar, in its form and
colours, and strikes a rapport with the consumer as a proactive brand with a
commitment to wellness and to nurturing an active lifestyle across age
groups.

Thus, through its form and colours, the new logo identity combines freshness and
stability. It expresses a brand that is positive, proactive and progressive. The
burst of leaves and their colours symbolize growth, rejuvenation and inner
strength. The form and colour of the trunk convey growth, youthfulness and
stability. Thus, the logo identity lock up presents Dabur as a stable yet evolving,
contemporary, vibrant and active brand cherishing nature as the source of all its
endeavours along with an abiding commitment to the wellness of consumers
across age groups.
 THE FUTURE FOR DABUR

Tapping the world markets: Dabur India, under its new brand architecture, has
five power brands under its portfolio with distinct offerings — Vatika, a herbal
beauty brand with products like Vatika Shampoo, Hair oil and Fairness Face
pack; Dabur, the natural healthcare brand with products like Chyawanprash and
Pudin Hara; Hajmola, the tasty digestive brand with Hajmola candy, Fun2 and
Anardana Churna; Real which offers fruit beverages and has products like Real
Fruit juices, Lemoneez; and the recently launched Anmol which is a cross
category value-for-money brand. Dabur has decided to take two of its five power
brands — Dabur and Vatika — global through its Dubai-based arm Dabur India .
And the Big B and Rani Mukherjee will help the company get a toehold in the
world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-
crore FMCG major has also decided to give a new impetus to its international
food supplement brand, Nature4u, by now launching it in the burgeoning Gulf
market. It is currently being sold only in UK and EU. “We have drawn an
aggressive plan to launch Dabur and Vatika globally, starting from the Middle
East , GCC and SAARC countries. We expect our market share to double within
two years in the 10 countries we will focus on initially,’’ said Mr Arvind Kumar,
CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are
UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and
Nigeria.
To develop Dabur International as its major overseas hub to service all markets
except Russia , the company is setting up a new plant which is expected to be
ready in a year. Dabur International already has a plant in Jabel Ali to both
package products sourced from India and produce some local variants. Dabur
India has been selling its product in Dubai and GCC countries since 1992
through a franchise — Redrock Limited. The company had acquired this
franchise last year at investments of about USD five million.
Growing market share: While there is no doubt that Dabur now has a presence
in several product categories ranging from hair care to oral care to home care to
health supplements to juices and even soaps, it is also true that in
some of these segments its market share is very low and trails the market leader
by a huge margin. For instance, Dabur only has a 6% market share in shampoos
against HLL’s 53%, and a 12% share in the oral care segment against Colgate’s
46%.

Company officials believe that low market share means that there are substantial
growth opportunities even if these categories do not grow. “Our market shares
are low in some segments. This gives us opportunity to penetrate these
categories,’’ says Mr Narang.

Drivers of growth: For the future, Dabur has identified foods, home care
products, skin care and OTC health care products as its growth engines. The
company plans to ramp up its home care business and in the food category it is
looking at expanding its Hommade range of cooking pastes and purees. In the
skin care segment, the company launched the Dabur Anmol cold cream last year
and its Vatika honey and saffron soap is currently under test launch.

Expansion in south India: Dabur is looking at expanding its business in south

India, which currently accounts for around 15% of its total sales.
GROWTH
STRATEGY
 RECOMMENDATIONS

 Focus on growing core brands across categories.

 Reaching out to new geographies, within and outside India.

 Improve operational efficiencies by leveraging technology.

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

 Provide consumers with innovative products within easy reach.

 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur
could start a venture called Vatika hair care centre which would provide total
hair care solutions. It could have hair care experts to solve hair
problems.Services could include dandruff treatment, straightening of hair,
treatment for split ends,etc.

 Position Dabur Chyawanprash as not more of a medicine but as something

which is necessary for health.

 More initiatives like “ Dabur ki Deewar” to

increase brand visibility. It is an initiative to
occupy shelf space.
 RESEARCH METHODOLOGY

As the purpose of the project report is to analyse the consumable

products successfully launched in the last three years.

The data was collected both with the help of primary as well as

secondary sources.

For primary data, I proceeded with the drafting of the questionnaire

for consumers was structured as undisguised, & Personal -interview

retailers. Distributors & wholesalers and it was handed personally by

me to the respondents to be analysed.

The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained

by just asking the questions.

c) Questioning is usually faster and cheaper.

d) Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the

company has furnished for the general public. The secondary data was

gathered with the help of various magazines, newspapers, journals,

brochures and also through the internet. For secondary

sources no field work was employed.

In order to amplify the empirical findings from primary and secondary

sources, a survey was conducted both of consumers and retailers

Distributor & Wholesalers in order to gauge the market opinion.

The questionnaire was of multiple choice and the pattern of questions

was as simple as possible. With every question, multiple choices were

given and respondents were asked to select one of them. The

questionnaire technique was structured and not disguised as the

questions followed one pattern and reason behind the questionnaire

was stated properly. All the questions were directly related to the

subject.

For Dabur Chyawanprash and Vatika hair oil.

1. Sample size for customers were 150 in number and the universe

comprised of all the consumers within the geographical region of

Delhi.

2. Sample size for retailers were 40 in number and the universe

comprised of all the consumers within the geographical region or

Delhi.
3) Sample size for Distributor & Wholesaler were four in

number & the universe comprised of all the consumers within the

geographical region of Delhi.

No other field work was employed to gather the information. The

questionnaire were distributed to the respondents and the data was

collected through primary and secondary sources.

The statistical technique such a Pi-chart and percentages were used in

analysing and interpreting the data.

 CONCLUSIONS

The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed

Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and

several

other herbs and herbal extracts. the market. The consumer’s patriotic love for tea and

coffee is unfared. Chyawanprash are yet to establish their supplement use in the average

household here in lies the great opportunities. Within the market, it is safe to conclude

that dabur has hit off ratherwell with the masses. dabur has clearly lost it head start

advantage and thereby acquiring just 35% of the market share while others enjoys rest of

the market share. This could be well attributed to dabor successful ATA (Availability,

Taste and Affordability) marketing module, the attributes most rated by the consumers.

Lack of publicity has hampered the growth progress of the brand so aggressive

advertising is needed to promote Chyawanprash and vatika hair oil brand .The brands

such as that of Chyawanprash by vednath, Chyawanprash with its ‘sonacahndi,

‘Minute- made’ and also US food giantssDel Monte are ready to hit the Chyawanprash

market very soon.

Vatika hair oil has no major competition except an Australian Product Tobasco. As a

new product so people are not able to digest it yet Dabur is getting 8 crores from Vatika

hair oil in which accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .
As the strategies of the companies keeps on changing, be it in

Chyawanprash industry, a company has to create perceptions and cover them into

realities. It is an expensive proposition requiring huge expenditure on advertising,

sponsorships and media. Thus,

the ideal company will be the one which combines the high end technology with

consumer insight.

As 16% of the excise duty is exempted on food products in this budget , Many food

companies including Dabur got benefited from it . On the analysis of survey it was found

that target Market of Chyawanprash want quality benefit rather then Price benefit, so it is

better to stress on quality rather than on decreasing price to increase sales and profit. To

increase market share Dabur should give slight price benefit on Dabur brand so that

customers of other Juice brand should switch from other brand to Dabur brand .

As vatika hair oil is a new product introduced by Dabur and as Dabur

is getting excise benefit from the Government so Dabur should pass

slight Price benefit to the target market so that target market should

use the vatika hair oil and adopt it in making daily food thereby

increasing the market share of vatika hair oil.

 REFERENCES

Books:

Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane Keller

Websites:

www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com
METHODOLOGY

EXPLORATORY RESEARCH:

Every research starts with exploratory research. Exploratory research is basically

done to seek insight and ideas into the problem. As our project entails a
comparative study of distribution between Dabur and HLL, many things have to
be explored before benchmarking Dabur’s distribution Vs HLL distribution.

DESCRIPTIVE RESEARCH : -

Our project is basically a descriptive research as our study revolves

around market characteristics and distribution pattern of Dabur and
HLL. Descriptive research in marketing is used to find out the market
potential, to study the distribution network of a company , and also
used in study of market share received by company and its
competitor.

DATA COLLECTION METHOD:

 PERSONAL INTERVIEW
 QUESTIONNAIRE

Primary data –

Primary data was collected by personal visits to stockists followed by

set of questions .Besides this , Information was also collected by
interviewing some of the stockists salesmen .

Stockists responses were conducted with the help of prepared

schedule. Whole universe of Delhi region has been taken into study.

Secondary data -

Secondary data was collected from various sources like Internet ,

Business Magazines, Marketing Journals and Annual report of
company.