1. PART-1
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2. Chapter-1
1. Introduction
2. Need of study
3. Objective of study
4. Scope of study
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3. 1.1 INTRODUCTION
DABUR INDIA LIMITED is a leading Indian consumer goods company with interests in
HAIR CARE, ORAL CARE, HEALTH CARE, SKIN CARE, HOME CARE and
FOODS. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an
Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a
leading consumer products manufacturer in India. FOR THE PAST 125 YEARS, WE
HAVE BEEN DEDICATED TO PROVIDING NATURE-BASED SOLUTIONS FOR A
HEALTHY AND HOLISTIC LIFESTYLE.
Through our comprehensive range of products, we touch the lives of all consumers, in all
age groups, across all social boundaries. And this legacy has helped us develop a bond of
trust with our consumers. That GUARANTEES you the BEST IN ALL PRODUCTS
CARRYING THE DABUR NAME.
1.1.1 Dabur India Ltd. - Corporate Profile
Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of US$1 Billion
(over Rs 5,000 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Building on
a legacy of quality and experience of over 127 years, Dabur is today India’s most trusted
name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India
is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products.
Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities --
Dabur as the master brand for natural healthcare products, Vatika for premium personal care,
Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and
skin care products. Dabur today operates in key consumer products categories like Hair Care,
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4. Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide
distribution network, covering over 2.8 million retail outlets with a high penetration in both
urban and rural markets. Dabur's products also have a huge presence in the overseas markets
and are today available in over 60 countries across the globe. Its brands are highly popular in
the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas
revenue today accounts for over 30% of the total turnover.The 125-year-old company,
promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines
company. From its humble beginnings in the bylanes of Calcutta, Dabur India Ltd has come a
long way today to become one of the biggest Indian-owned consumer goods companies with
the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully
transformed itself from being a family-run business to become a professionally managed
enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and
to always set new standards in corporate governance & innovation.
1.1.2Dabur At-a-Glance
Dabur India Limited has marked its presence with significant achievements and today
commands a market leadership status. Our story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment to our partners and
stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods company in India with a turnover of Rs. 5,283 Crore (FY12),2 major
strategic business units (SBU) - Consumer Care Business and International Business
Division (IBD),2 Subsidiary Group companies - Dabur International and NewU and several
step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian
Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care
(Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and
Jaquline Inc. (USA).17 ultra-modern manufacturing units spread around the globe Products
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5. marketed in over 60 countries.Wide and deep market penetration with 50 C&F agents, more
than 5000 distributors and over 3.4 million retail outlets all over India
Consumer Care Business adresses consumer needs across the entire FMCG spectrum
through four distinct business portfolios of Personal Care, Health Care, Home
Care & Foods.
1.1.3 Master brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Réal - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, Dabur Honey, Glucose, Fem
and Odonil. Strategic positioning of Honey as food product, leading to market
leadership (over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market
share. Vatika has been the fastest growing hair care brand in the Middle East.
Hajmola tablets in command with 60% market share of digestive tablets category.
About 2.5 crore Hajmola tablets are consumed in India every day.Leader in herbal
digestives with 90% market share.Consumer Health Division (CHD) offers a range
of classical Ayurvedic medicines and Ayurvedic OTC products that deliver the age-
old benefits of Ayurveda in modern ready-to-use formats Has more than 300 products
sold through prescriptions as well as over the counter. Division also works for
promotion of Ayurveda through organised community of traditional practitioners and
developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of
customers across different international markets, spanning Nepal, Bangladesh, the Middle East,
North & West Africa, EU and the US with its brands Dabur & Vatika
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6. 1.1.4 Core Values-
Vision- "Dedicated to the health and well being of every household"
Principles-
Ownership-This is our company. We accept personal responsibility, and accountability to meet
business needs.
Passion for winning
We all are leaders in our area of responsibility, with a deep commitment to deliver results. We
are determined to be the best at doing what matters most.
People Development-People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.
Consumer Focus-We have superior understanding of consumer needs and develop products to
fulfill them better.
Team Work-We work together on the principle of mutual trust & transparency in a boundary-
less organization. We are intellectually honest in advocating proposals, including recognizing
risks.
Innovation-Continuous innovation in products & processes is the basis of our success.
Integrity-We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each other.
1.1.5
Strategic Intent-We intend to significantly accelerate profitable growth. To do this, we will:
• Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging
technology
• Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science
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7. • Provide our consumers with innovative products within easy reach
• Build a platform to enable Dabur to become a global ayurvedic leader
• Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel
• Be responsible citizens with a commitment to environmental protection
• Provide superior returns, relative to our peer group, to our shareholders
1.1.6 Company History
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8. 1884 Birth of Dabur
1896 Setting up a manufacturing plant
Early
Ayurvedic medicines
1900s
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
Sahibabad factory / Dabur Research &
1979
Development Centre (DRDC)
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
2003 Dabur demerges Pharma Business
2005 Dabur aquires Balsara
2005 Dabur announces Bonus after 12 years
Dabur crosses $2 Bin market Cap, adopts
2006
US GAAP
Approves FCCB/GDR/ADR up to $200
2006
million
2007 Celebrating 10 years of Real
2007 Foray into organised retail
2007 Dabur Foods Merged With Dabur India
2008 Acquires Fem Care Pharma
Dabur Red Toothpaste joins 'Billion Rupee
2009
Brand' club
2010 Dabur makes its first overseas acquisition
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9. 2011 Dabur enters professional skin care market
Dabur India acquires 30-Plus from Ajanta
2011
Pharma
Dabur crosses Billion-Dollar Turnover
2012
Mark
1.1.7 Founder and Leaders
Founding Thoughts "What is that life worth which cannot bring comfort to others"
The doorstep 'Daktar' The story of Dabur began with a small, but
visionary endeavour by Dr. S. K. Burman, a physician tucked away in
Bengal. His mission was to provide effective and affordable cure for
ordinary people in far-flung villages. With missionary zeal and
fervour, Dr. Burman undertook the task of preparing natural cures for
the killer diseases of those days, like cholera, malaria and plague. Soon
the news of his medicines traveled, and he came to be known as the trusted 'Daktar' or Doctor
who came up with effective cures. And that is how his venture Dabur got its name - derived
from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to produce
and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access
to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the
company growing from a fledgling medicine manufacturer in a small Calcutta house, to a
household name that at once evokes trust and reliability.
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10. 1.1.8 Milestones- Dabur India Ltd. made its beginnings with a small pharmacy, but has
continued to learn and grow to a commanding status in the industry. The Company has come a
long way in popularising and making easily available a whole range of products based on the
traditional science of Ayurveda. And Dabur has set very high standards in developing
products and processes that meet stringent quality norms. As it grows even further, Dabur
will continue to mark up on major milestones along the way, setting the road for others to
follow... Milestones To Success
1884 - Established by Dr. S K Burman at Kolkata
1896 - First production unit established at Garhia
1919 - First R&D unit established
Early1900s-Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is the first
Company to provide health care through scientifically tested and automated production of
formulations based on our traditional science.
1930 - Automation and up gradation of Ayurvedic products manufacturing initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940-Personal care through Ayurveda
Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of
Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil
brand in India.
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11. 1949-Launched Dabur Chyawanprash in tin pack
Widening the popularity and usage of traditional Ayurvedic products continues. The ancient
restorative Chyawanprash is launched in packaged form, and becomes the first branded
Chyawanprash in India.
1957 - Computerisation of operations initiated
1970-Entered Oral Care & Digestives segment
Addressing rural markets where homemade oral care is more popular than multinational
brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal
toothpowder is made available at affordable costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978-Launches Hajmola tablet
Dabur continues to make innovative products based on traditional formulations that can
provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is
branded and launched as the popular Hajmola tablet.
1979 - Dabur Research & Development Centre (DRDC) set up
1979 - Commercial production starts at Sahibabad, the most modern herbal medicines
plant at that time
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
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12. 1989-Care with funThe Ayurvedic digestive formulation is converted into a children's fun
product with the launch of Hajmola Candy. In an innovative move, a curative product is
converted to a confectionary item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncology segment
1994-Leadership in health care
Dabur establishes its leadership in health care as one of only two companies worldwide to
launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research & Development Centre
(DRDC) develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice
1996 - Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of Real Fruit
Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural
fruit juices made to international standards, Real becomes the fastest growing and largest
selling brand in the country.
1998 - Burman family hands over management of the company to professionals
2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores.
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13. Across a span of over a 100 years, Dabur has grown from a small beginning based on
traditional health care. To a commanding position amongst an august league of large
corporate businesses.
2001 - Super specialty drugs
With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry
into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory
in the UK have approval from the MCA of UK. They follow FDA guidelines for production
of drugs specifically for European and American markets.
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4
crore
2003 - Dabur demerges Pharmaceuticals business
Dabur India approved the demerger of its pharmaceuticals business from the FMCG business
into a separate company as part of plans to provider greater focus to both the businesses. With
this, Dabur India now largely comprises of the FMCG business that include personal care
products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business
would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a
subsidiary of Dabur India, would also be part of the Pharmaceutical business.
Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards, Dabur became
the first Ayurvedic products company to get ISO 9002 certification.
Science for nature
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of
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14. Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark
helps to produce saplings of rare medicinal plants that are under threat of extinction due to
ecological degradation.
2005 - Dabur aquires Balsara
As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home
products businesses, a leading provider of Oral Care and Household Care products in the
Indian market, in a Rs 143-crore all-cash deal.
2005 - Dabur announces bonus after 12 years
Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one
share for every one share held. The Board also proposed an increase in the authorized share
capital of the company from existing Rs 50 crore to Rs 125 crore.
2006 - Dabur crosses $2 bln market cap, adopts US GAAP.
Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted
US GAAP in line with its commitment to follow global best practices and adopt highest
standards of transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million
Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million
from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other
securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and
acquisition plans in India and abroad.
2007 - Celebrating 10 years of Real
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15. Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of
the brand. The new refined modern look depicts the natural goodness of the juice from freshly
plucked fruits.
2007 - Foray into organised retail
Dabur India announced its foray into the organised retail business through a wholly-owned
subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence
in the retail market in India with a chain of stores on the Health & Beauty format.
2007 - Dabur Foods merged with Dabur India
Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to
extract synergies and unlock operational efficiencies. The integration will also help Dabur
sharpen focus on the high growth business of foods and beverages, and enter newer product
categories in this space.
2008 - Acquires Fem Care Pharma
Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market.
Besides an entry into the high-growth skin care market with an established brand name FEM,
this transaction also offers Dabur a strong platform to enter newer product categories and
markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club
Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste
crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition
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16. Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a leading
personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab
Dabur acquired 100% equity in Namasté Laboratories LLC of the US for $100 million. This
marks Dabur’s entry into the fast-growing ethnic hair care products market in U.S., Europe
and Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours
Dabur launches India’s first fruit-flavoured Chyawanprash. Dabur Chyawanprash was
launched in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records
Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of hosting
the longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market
Dabur enters professional skin care market with the launch of OxyLife Professional Facial
Kit, created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal
Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com With
this, Dabur is the first Indian FMCG company to launch a dedicated online shopping portal
for its beauty products range. The portal will be the online gateway for consumers to know,
understand, buy and gift the exclusive Dabur Uveda range of skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma
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17. Dabur India Ltd acquired Ajanta Pharma’s over-the-counter energizer brand ’30-Plus’.
2011 - Dabur to enter Sri Lanka
Dabur India Ltdsets up new subsidiary in Sri Lanka – Dabur Lanka (Pvt.) Ltd. The company
will establish a new export-oriented manufacturing facility for producing a range of fruit-
based beverages in Gampaha, north of Colombo.
2011 - Dabur enters Almond Hair Oil market
Dabur India Ltd launches Dabur Almond Hair Oil, a one-of-its-kind product that offers
superior nourishment for 100% damage-free hair.
2012 - Dabur crosses Billion-Dollar turnover mark
Dabur India Ltd surpassed the Billion-Dollar Turnover mark during the 2011-12 fiscal to end
the year with Net Sales of Rs 5,283.17 Crore.
1.1.9 COMPANY DETAILS
Dabur Group
With a basket including personal care, health care and food
products, Dabur India Limited has set up subsidiary Group
Companies across the world that can manage its businesses
more efficiently.
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18. Given the vast range of products, sourcing, production and marketing have been divested to the
group companies that conduct their operations independently:
Dabur Worldwide
Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today,
there is growing global awareness on alternative medicine, nature-based and holistic lifestyles
and an interest in herbal products. Dabur has been in the forefront of popularizing this alternative
way of life, marketing its products in more than 60 countries all over the world. Over the years,
Dabur's overseas business has successfully transformed from being a small operation into a
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19. multi-location business spreading through the Middle East, North Africa, West Africa and South
Asia.
Our Products Worldwide- We have spread ourselves wide and deep to be close to our overseas
consumers. Our overseas product portfolio is tailor-made to suit the needs and aspirations of our
growing consumer base in the international markets. Offices and representatives in Europe, UK,
America and Africa.A special herbal health care and personal care range successfully selling in
markets ranging from the Middle East, Far East, North Africa and Europe. Inroads into several
European and American markets that have good potential due to resurgence of the back-to-nature
movement. Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict
international quality benchmarks, to Europe, Latin America, Africa, and other Asian countries.
Export of food and textile grade natural gums, extracted from traditional plant sources.
Partnerships & Production- Strategic partnerships with leading multinational food and health care
companies to introduce innovations in products and services. Six modern manufacturing facilities
spread across South Asia, Middle East and Africa to optimise production by utilising local
resources and the most modern technology available.
1.1.10 Manufacturing Facilities in India-
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20. 1.1.11 CEO OF DABUR-
Mr. Sunil Duggal took over as the Chief Executive Officer of Dabur
India Limited in June 2002, holding reins of the organization he
joined in 1995. Mr Duggal started his career as a management
trainee in Wimco Limited in 1981 after getting his Engineering
Degree (Electrical & Electronics) from BITS, Pilani, and Business
Management from IIM, Calcutta. His stint at Wimco continued till
1994, with a break in between when he joined Bennett Coleman &
Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM,
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21. SalesOperation.In 1995, he joined the Dabur family as General Manager (Sales & Marketing) of the
Family Products Division with products like Dabur Amla, Lal Dant Manjan and Vatika in his
portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. Vatika
was also launched during this period and is now the Company's second biggest brand. With his
dynamic spirit and leadership abilities, he soon became Vice-President and SBU-Head of the Family
Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of Dabur
India Limited. And in 2002, he became the CEO of the Company - a professional with valuable
experience to steer the company ahead in its growth plans.
Spanning a career of over 20 years, Mr. Sunil Duggal has travelled widely across India and handled
diverse portfolios that have helped him understand the dynamics of FMCG businesses and market
trends. He is well versed in the intricacies of India's regional diversities and consumer needs.
Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official
responsibilities, Mr. Duggal likes to spend time at home with his family and an occasional round of
golf.
1.1.12 Corporate Governance- Good corporate governance and transparency in actions of the
management is key to a strong bond of trust with the Company’s stakeholders. Dabur understands
the importance of good governance and has constantly avoided an arbitrary decision-making process.
Our initiatives towards this end include: -Professionalization of the board
Lean and active Board (reduced from 16 to 10 members)
Less number of promoters on the Board
More professionals and independent Directors for better management
Governed through Board committees for Audit, Remuneration, Shareholder Grievances,
Compensation and Nominations
Meets all Corporate Governance Code requirements of SEBI
1.1.13 Corporate Citizenship- When our Founder Dr. S. K. Burman first established Dabur, he
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22. had a vision that saw beyond the profit motive. In his words, "What is that life worth which cannot
bring comfort to others." This ideal of a humane and equitable society led to initiatives taken to
give back some part of what Dabur has gained from the community. Our major initiatives in the
Social sector include: Establishment of the Sustainable Development Society, or Sundesh, in 1993
- a non-profit organization to promote research and welfare activities in rural areas; Promoting
health and hygiene amongst the underprivileged through the Chunni Lal Medical Trust; and
Organizing the Plant for Life programme for schoolchildren - to create environmental awareness
amongst young minds.
Our commitment to Environment- Ancient wisdom of conservation- From times immemorial,
Indian sages and men of wisdom have understood and appreciated the value of nature and its
conservation. Our ancestors recognized that if we grabbed from nature beyond what was healthy, it
would lead to all round degradation, and even the extinction of humanity. That is why nature was
sanctified and worshipped in the form of gods and goddesses.
Dabur upholds the tradition
Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of Dabur
would never have been fulfilled. And that is the reason for our unfailing commitment to
ecological conservation and regeneration. We would like to follow the principles of our ancient
texts, which say: "Dehi me dadami te" - "you give me, and I give you".
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23. Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all our products are
derived. Due to overexploitation of these resources and unsustainable practices, these plants and
herbs are fast reaching the point of extinction. In view of this critical situation, Dabur has initiated
some significant programmes for ecological regeneration and protection of endangered plant
species.
Plants for Life
We have set up the "Plants for Life" project in the mountainous regions of the Himalayas. Under
the project, a high-tech greenhouse facility has been set up for developing saplings of rare and
endangered medicinal plants. Fully computer-controlled and monitored, this greenhouse maintains
the highly critical environmental parameters required for their survival. We are also developing
quality saplings of more than 20 herbs, 8 of them endangered, through micro propagation.
In addition, satellite nurseries spread across mountain villages and contract cultivation of
medicinal herbs helps in maintaining the ecological balance. These measures have also helped
provide local cultivators the scientific knowledge for harvesting herbs and a steady source of
income. So that they are not forced to exploit the environment to earn a livelihood.
Living a Green Heritage
These are significant stepsthat can contribute to a better world for coming generations. To whom
we would like to bequeath a world not bereft of nature. But full of flowering and fruit bearing
trees, animals, birds and humans living in good health and complete harmony.
1.1.14 IT Initiatives
At Dabur India Limited, knowledge and technology are key resources which have helped the
Company achieve higher levels of excellence and efficiency. Towards this overall goal of
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24. technology-driven performance, Dabur is utilizing Information Technology in a big way. This
will help in integrating a vast distribution system spread all over India and across the world. It
will also cut down costs and increase profitability.
Our major IT Initiatives
Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006
for all business units. Implementation of a country wide new WAN Infrastructure for running
centralized ERP system.
Setting up of new Data Centre at KCO Head Office.
Extension of Reach System to distributors for capturing Secondary Sales Data.
Roll out of IT services to new plants and CFAs.
Future Challenges
Forward Integration of SAP with Distributors and Stockists.
Backward Integration of SAP with Suppliers.
Implementation of new POS system at Stockist point and integration with SAP-ERP.
Implementation of SAP HR and payroll.
SAP Roll-out to DNPL and other new businesses.
1.1.15 Sustainability Report-
At Dabur, environment and nature is the lifeline of our business. With a portfolio of
Ayurveda and nature-based products, conservation of nature & natural resources is deep
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25. rooted in our organizational DNA, and in every aspect of our ever-growing business. We, at
Dabur, have not merely incorporated the concept of sustainability into the core of our business but
have, in fact, expanded it to encompass our aspirations and responsibilities to the society and to
the environment. It is this concept that inspires us to optimize our business performance to tackle
the new and growing challenges of environment and technology.It is a concept on which we
aspire to build an organization that will continue to increase value for all our stakeholders for
generations to come, through intensive focus on Conservation of Energy and Technology
Absorption, along with Health, Safety and Environment Protection.
1.1.16 Conservation of Energy-Dabur has been undertaking a host of energy conservation
measures. Successful implementation of various energy conservation projects have resulted in a
13.8% reduction in the Company’s energy bill in the 2008-09 fiscal alone. What was
noteworthy was the fact that this reduction has come despite an 8-9% volume increase in
manufacturing, and an average 11.7% increase in cost of key input fuels.The host of measures –
key among them being use of bio-fuels in boilers, generation of biogas and installation of energy
efficient equipment – helped lower the cost of production, besides reduce effluent and improve
hygiene conditions & productivity.
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26. 1.1.17 Technology Absorption
Dabur has also made continuous efforts towards technology absorption and innovation, which
have contributed towards preserving natural resources.
These efforts include:
Minimum use of water in process by pre-concentration of herbal extract and reduction in
concentration time. Uniform heating in VTDs by hot water as against steam earlier, resulting in
30% reduction in bulk wastage by using non-stick coating and formulation change. Improvement
in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water,
reutilization of waste water from pump seal cooling and RO reject waste-water management.
Introduction of water efficient CIP system with recycling of water in fruit juice manufacturing.
Development of in-house technology to convert fruit waste into organic manure by using the
culture Lactobacilus burchi.The Company has achieved a host of significant benefits in terms of
product improvement, cost reduction, product development, import substitution, cleaner
environment and waste disposal, amongst others.
1.1.18 Health Safety & Environmental Review
Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy
focusing on People, Technology and Facilities. A dedicated “Safety Management Team” has
also been put in place to work towards the prevention of untoward incidents at the corporate and
unit level, besides educate & motivate employees on various aspects of Health, Safety and
Environment. The Company is also continuously monitoring its waste in adherence with the
pollution control norms. In pursuance of its commitment towards the society, efforts have also
been initiated to conserve and maintain the ground water level. The efforts include
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27. implementation of rainwater harvesting, which has delivered encouraging results and has put the
company on the path to becoming a Water-Positive Corporation. Dabur also initiated a
Carbon Foot Print Study at the unit level with an aim to become a carbon positive Company
in years to come. At Dabur, we are committed to sustainable development throughout our diverse
operations. And, we will strive to translate the good intentions into concrete and lasting
results, contributing to the ultimate good of the society.
27

28. 1.1.19 PRODUCT LINE
Foods:
• Real
• Real Activ
• Hommade
28

29. • 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 Fun2
• Hajmola Candy
• Pudin Hara (Liquid and Pearls)
• Pudin Hara G
29

30. • 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
30

31. • Anmol Silky Black Shampoo
• VatikaHennaConditioning Shampoo
• Vatika AntiDandruff Shampoo
• Anmol Natural Shine Shampoo
Oral Care:
• Dabur Red Gel
• Dabur Red Toothpaste
• Babool Toothpaste
• Dabur Lal Dant Manjan
• DaburBinaca Toothbrush
Skin Care
• Gulabari
• Vatika Fairness Face Pack
Ayurvedic Specialities
• Ayurveda
• Ayurveda Vikas
Rural and urban potential
31

32. Rural-urban profile 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 characterized 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$ 14.6 billion in 2008 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
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 are expected to rise
from 145 million in 2007 one of the largest economies in the world in terms of purchasing
power and has a strong -08 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$
14.5 billion in 2007-08. With growing incomes at both the rural and the urban level, the
market potential is expected to expand further.
Urban Rural
Population 2007-08 (mn household) 53 145
32

33. Population 2009-10 (mn household) 69 153
% Distribution (2007-08) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
Source: Statistical Outline of India (2008-09), 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.
Product Profile-
OVERVIEW OF VATIKA
33

34. 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, 2007).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
34

35. 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 homegrown 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
35

36. 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 • Internet
• Brand Terms Marketing
Names
• Services
36

37. 37

38. 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, and ugdha and sugandhit 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 colors,
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.
38

39. 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/QUALITY MATRIX
Price→
Quality High Middle Low
↓
Luxury Ideal For Premiere
High Segment Penetration Offering
VATIKA
Overpriced Average Real
Middle
Bargain
Make The Unhappy Cheap
Low Sale and Run Customers Goods
39

40. 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
40

41. Promotion
Vatika – the key focus brand of the company – has always been well supported. The
company realized early that, from the perspective of brand building, it was vital to invest
in this brand.
Vatika Hair Oil’s first promotion: It focused on the key benefit – beautiful hair
without hair problems – that came about as a result of the extra nourishment through the
value addition of henna, alma 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.
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
41

42. 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 complement 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,
42

43. 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 FOR DABUR VATIKA HAIR OIL AND DABUR
CHYAWANPRASH
MARKETING MIX OF DABUR CHYAWANPRASH
Dabur Chyawanprash is the market leader in the chyawanprash segment and has
achieved this with its innovative product offering, 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
43

44. • 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 • Internet
• Brand Terms 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 immune-stimulant. Dabur Chyawanprash helps
in stimulating immune system, relieving stress, improving stamina, fighting aging
through anti-oxidant property, improving lung function, fighting
44

45. 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.
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.
45

46. 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 Run Customers Goods
46

47. 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:
COMPETITOR ANALYSIS OF VATIKA
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 players 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%.
47

48. 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.
48

49. 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 targets have been women of all age. 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.
COMPETITOR ANALYSIS OF CHYAWANPRASH
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.
49

50. 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%.
50

51. Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18 th-
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
OBJECTIVE OF THE Study’s
51

52. Following are the major objectives 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.
• Seasonal Demand( like chyawanprash in winter and Vatika not in winter)
• Low Penetration(Chyawanprash)
• High price(Vatika)
• Limited differentiation (Vatika)
• Unbranded players account for the 2/3rd of the total market(Vatika)
52

53. PART-II
53

54. Chapter-2
1. Research Methodology
2. Limitation
54

55. 2.1RESEARCH METHODOLOGY
“Marketing research is a systematic problem analysis, model building and fact
finding for the purpose of important decision making and control in the marketing of
goods and services.”
- Phillip Kotler
As the purpose of the project report is to analyze 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. I handed distributors
& wholesalers and it personally to the respondents to be analyzed. 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, and brochures and also through the Internet. For secondary sources no
fieldwork was employed.
55

56. 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 choices 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 fieldwork was employed to gather the information. The questionnaires 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.
56

57. 2.2 LIMITATIONS
Training is a costly affair for the management. It needs a handsome amount and long time. So
management has to play safe game for the benefits of the company as well as the workers. One
wrong decision may enforce the company to fall into deep troubles. So selecting the weak
areas of staffs and workers should be done very carefully. For that the management should be
conduct a test. For providing an effective training, company requires a knowledgeable trainer.
Selecting a particular trainer is again a difficult job. Trainer demands handsome money.
Training needs time and cost both.
To conclude, it is very clear that training should be provided but not at the loss of the
company. It is very costly and time taking affair. But it is most important for the development
of the company. So management can’t avoid it at any cost.
a) Due to lack of time (i.e., Two months) it is not possible to reach all respondents.
b) The lack of availability of time on the respondent’s part.
c) Some respondent’s was biased.
d) Unwillingness of the respondents.
57

58. Chapter III
1.Descriptive work on subtopic of study
58

59. 3.1 WHAT IS A MARKETING STRATEGY AND MARKETING PLAN?
A MARKETING STRATEGY in general sets a target market and a marketing mix. It is a
"big picture" of what a company will do in some market in order to gain a competitive
advantage. A MARKETING PLAN is a detailed breakdown of your marketing strategy. It is
a written statement of a marketing strategy with the time - related details as well as the
marketing budget for carrying out the strategy.
It should spell out the following in detail: -
• What marketing mix will be offered?
• To who (target market);
• For how long;
• What company resources will be needed at what rate;
• What results are expected (sales and profits).
DEVELOP A MARKETING STRATEGY
By now you should already:
• have decided on the nature of your business and you know that your business idea is
• feasible;
• have also identified your market and decided on your target market;
• know what the needs of your customers are and you have identified and assessed your
• Competition.
Now you need to decide on:
• the Product and Service to offer your customers;
59

60. • how you will make your Products available to customers;
• how you will communicate the benefits of your Products and persuade customers to buy
• them;
• the price you will charge.
These four decision variables are the ingredients of the so-called marketing mix. Your task is
to create these elements effectively in order to market your product/service to the target market
in an optimal way.
CREATE AN EFFECTIVE MARKETING MIX
The MARKETING MIX consists of all the controllable variables the company puts together
to satisfy its target market. A typical MARKETING MIX includes decisions regarding the
product, the price of the product, how to promote the product and how to get the product to the
right customer at the right time and place.
All these variables are controllable elements in the marketing mix and can be reduced to four
basic ones, each starting with a P (also known as the four Ps):
• Product.
• Place.
• Price.
• Promotion.
The four Ps are those factors that you can control directly, for example, you develop your
product, you decide how to get it to the customer, you determine the price and you choose the
promotion mix. The four Ps are, as you will realize now, with the selection of your target
market are the basic ingredients of your marketing strategy.
60

61. All four Ps are needed in a marketing mix and should therefore be tied together. When a
marketing mix is developed, all final decisions about the P's should be made. All four Ps
should be in harmony and aimed at satisfying the customer's needs in an optimum way.
You do have control over the marketing mix and can vary it to suit the needs of your customers
and the resources of your business. Customers are continuously matching their needs with the
products offered by you and your competitors.
You should now know your target market and the needs of your potential customers. From
analyzing your competitors, you can identify what they offer the target consumer through their
marketing mixes. This determines what your marketing mix and your competitive advantage
will be. All of the marketing mix elements must reinforce the image of the product or service
that the business portrays to the potential customer.
Let’s discuss each P in the marketing mix in more detail.
FOCUS ON THE PRODUCT
This area is concerned with developing the right product for the target market. This offering
may involve a physical product, a service, or a blend of both. Remember that a product is not
limited to a physical good. The important thing is that your product and/or service should
satisfy a specific customer need.
At the most fundamental level we normally talk about the core product. The core product
answers the question "what is the buyer really buying?" The woman buying a camera is not
buying a mechanical box, she is buying the opportunity to take photo's, when she want to have
and keep forms of "immortality" or precious moments. The marketers' job is to sell these core
benefits of the product or service.
Branding means the use of a name, term, symbol, design, or a combination of these, to
identify a product. It includes the use of brand names, trademarks, and practically all other
means of product identification. A brand name is a word, letter, or a group of words or letters.
61

62. Examples include Nike, IBM, and Kellogg's. Trademark is a legal term and includes only those
words, symbols, or marks that are legally registered for use by a single company.
Brand promotion has advantages for sellers as well as for customers. A good brand name
speeds up shopping for the customer, if the customer can immediately recognize the product,
and it will reduce the seller's selling time and effort. When customers repeatedly buy by brand,
the seller is protected against competition from other companies. Good brands can improve the
company's image, and thus speed up acceptance of new products marketed under the same
company name.
Packaging involves promoting and protecting the product. This can be important to both
sellers and customers. It can make a product more convenient to use or store. It can prevent
spoiling or damage. Good packaging makes products easier to identify and promotes the brand
at the point of sale and even in use.
In addition to branding and packaging if the formal product is a physical object, the market
may recognize it as having characteristics like a quality feel, specific features, as well as
styling. If it is a service, it may have some or all of these facets in an analogous manner.
The total product can also consist of elements like free delivery, installation, warranties,
services, maintenance systems, customer advice, financing and other things that customers
perceived to be of value.
MAKE YOUR DECISIONS ON THE PLACE ELEMENT OF THE MARKETING MIX
Place is concerned with all the decisions involved in getting the right product to the target
market's environment. A product isn't of much use to a customer if it's not available where and
when it is wanted, or needed. A product reaches its target market through a channel of
distribution - any series of companies or individuals, from producer to final user/consumer.
Sometimes a channel system is quite short. It may run directly from a product to a final user.
This is especially common in business markets and the marketing of services. Often a channel
system is more complex and has levels, which involves different middlemen and specialists.
62

63. A zero-level channel, often called a direct marketing channel, consists of a manufacturer
selling directly to a consumer. The choice of the level channel to use will be based on the
competitive advantage, offered by this level. For example, an apple farmer may choose a zero-
level channel by inviting the public to come and pick their own apples at a much lower price
than buying it at a shop.
A two-level channel, for example, contains two intermediaries. In consumer markets, they are
typically a wholesaler and a retailer. In industrial markets, they could be sales agents and
wholesalers and in the service market, only sales agents could be necessary.
Distribution channels could also be other than the abovementioned. For example, the Internet
is an excellent distribution channel for selling information. A comedian can also distribute his
services via the TV to his or her target audience.
Part of the place decision is also the layout of a store or shop. Layout is the arrangement and
display of merchandise. A retailer's success depends on a well - designed floor display. It
should pull customers into the shop, make it easy for them to locate merchandise, compare
price, quality, and features, and ultimately buy.
PRICE
In setting a price for your product, you must consider competition in the target market, and the
cost of the total marketing mix. You must also estimate customer reaction to possible prices.
Furthermore, you also should know current competitor practices such as markups, discounts,
and other terms of sale. You must be aware of legal restrictions on pricing. If customers won't
accept the price, all your planning effort will be wasted.
Consider what the customer is willing to pay and what the customer is likely to expect for that
price. Ask yourself whether the customer feel that he/she is getting value for money at that
price? Remember it is the customer's perception of value for money that counts, not yours.
63

64. You must set the price high enough to cover costs and earn a reasonable profit, but low enough
to attract customers and generate adequate sales volume. The right price today may be
completely inappropriate tomorrow. The reason for this: Ever changing market conditions.
For many small business people non-price competition - focusing on factors other than price -
is a more effective strategy than trying to beat larger competitors in a price war. Non-price
competition factors are: free trial offers, free delivery, lengthy warranties, money-back
guarantees, allowing for bargaining, stressing durability, quality, reputation, or special
features.
The pricing policy of a business also offers important information about its overall image. The
prices charged at ladies' clothing boutique reflect a completely different image from those
charged by a chain store. High prices for some products frequently convey the idea of quality,
prestige, and uniqueness to the customer.
Competitors' prices can have a dramatic impact on your sale. You should make it a habit to
monitor your rivals' prices, especially on identical items. The following two factors are vital to
studying the effects of competition on your pricing policies: location of competitors, and the
nature of competing products.
Without the advantage of a unique business image - quality of goods sold, number of services
provided, convenient location, favorable credit terms - you will have to match local
competitors' prices or lose sales. You also have to recognize which products are substitutes for
those you sell and then strive to keep your prices in line with them.
Effective Techniques you can use when Pricing a New Product
In the initial setting of a product's price, you must try to achieve three objectives:
* Getting the product accepted.
* Maintaining market share as competition grows.
* Earning a profit.
You have three strategies to choose from:
64

65. • Penetration: The idea is to gain quick acceptance and extensive distribution in the
market. You introduce your product at a low price. The low profit margins may
discourage other potential competitors from entering the market with similar products.
• Skimming: The idea is to set a price well above the total unit cost and to promote the
product heavily in order to appeal to the segment of the market that isn't sensitive to
price. This technique often reinforces the unique, prestigious image of a shop and
projects a quality picture of the product.
high price until technological advancements enable you to lower your costs. The art is to
reduce the product's price sooner than that of your its competitors. Computer price
declines are a good example of this technique.
Setting the Price
In this section, we will explain the process of setting the price of your product/service, by the
use of two case studies. The one is for retailers and the other for manufacturers.
65

66. Chapter IV
1. Data Analysis & Interpretation
66

67. 4.1 Data Analysis & Interpretation
CUSTOMER SURVEY RESULTS-DABUR VATIKA
AWARNESS LEVEL
100
90
80
70
60
50
40 PERCENTAGE
30
20
10
0
PARACHUTE NIHAR DABUR
VATIKA
67

68. INTERPRETATION-It was observed that 90% customers award about
the dabur vatika hair oil.
PREFERRED BRAND
40
35
30
25
20
15 PERCENTAGE
10
5
0
PARACHUTE NIHAR VATIKA
INTERPRETATION- It was observed that 30% customers preferred the
dabur vatika among the wide range of hair oil.
68

69. SATISFACTION LEVEL
4
3.5
3
2.5
2
1.5 RATING(1-LOW 5-HIGH)
1
0.5
0
PARACHUTE HAIR AND
CARE
INTERPRETATION-It was observed that the satisfaction levels are high
about the quality of the vatika hair oil.
69

70. REASON TO BUY THE PREFFERED BRAND
45
40
35
30
25
20 PERCENTAGE
15
10
5
0
NON STICKY PRICE
70

71. INTERPRETATION
It was observed that the reason to buy vatika hair oil is non-sticky 45%, brand
loyalty 20% fragrance 10% & price 30%.
UNAVAILABILITY OF PREFERRED BRAND
45
40
35
30
25 PERCENTAGE
20
15
10
5
0
PURCHASE BUY
ANOTHER SUBSTITUTE
BRAND
INTERPRETATION
71

72. It was observed that 25% customers could wait in case of unavailability the
dabur vatika hair oil.
PREFERRED PACK SIZE
60
50
40
30
PERCENTAGE
20
10
0
75ml 150 ml 300 ml
72

73. INTERPRETATION
It was observed that 55% of customers preferred 150ml, 20% of 75ml & 25%
of customers preferred 300ml pack of the dabur vatika hair oil.
REASON TO SELECT PREFERRED PACK SIZE
40
35
30
25
20
PERCENTAGE
15
10
5
0
AVAILABILITY STORAGE
73

74. INTERPRETATION
It was observed that 40% of customers preferred because of availability,
25% for price, 15% for family size & 20% of customers for storage.
FREQUENCY OF PURCHASE
70
60
50
40
30 PERCENTAGE
20
10
0
15 DAYS TWO
MONTHS
74

75. INTERPRETATION
It was observed that 5% of customers buy within the 15days, 32% of within
the 1 month & 63% of customers buy the hair oil after the 2month.
RETAIL SURVEY RESULTS
DABUR VATIKA
1. Which brands of Hair Oil do you stock?
75

76. 80
70
60
50
40
30 PERCENTAGE
20
10
0
marico karrpikeo
karpin
INTERPRETATION
It was observed that 75% of total stock of hair oil is dabur vatika hair oil
2.Out of these, which are the most preferred?
76

77. 50
45
40
35
30
25
20 PERCENTAGE
15
10
5
0
marico karrpikeo
karpin
INTERPRETATION
It was observed that 35% of total customers mostly preferred the dabur vatika
hair oil.
3. According to you what are the reasons for customers’ preferences?
77

78. 50
45
40
35
30
25
20 PERCENTAGE
15
10
5
0
brand availability
loyalty
INTERPRETATION
It was observed that the reasons for preferred are brand loyalty 50%
availability 5% & price 20%.
4. What is the profile of your typical consumer?
78

79. 50
45
40
35
30
25
20 PERCENTAGE
15
10
5
0
high middle low
income income income
INTERPRETATION
It was observed that 20% from high-class income, 50% from middle class
income group & 30% from low income.
79

80. 5. What schemes are you offered by the companies?
40
35
30
25
20
15 PERCENTAGE
10
5
0
price buy one others
discount get one
INTERPRETATION
It was observed that schemes that are mostly provided by the companies are
price discount 40%, buy one get one 35% & others are 25%.
80

81. 6. What schemes does a consumer prefer most?
60
50
40
30
PERCENTAGE
20
10
0
price others
discount
INTERPRETATION
It was observed that schemes that are mostly preferred by the customers are
price discount 60%, buy one get one 25% & others are 15%.
81

82. 7. According to you, does in-store advertising have an affect on the consumers’
preference?
60
50
40
30
PERCENTAGE
20
10
0
yes no
INTERPRETATION
It was observed that advertisings have an affect on the consumers’ preference
yes-40% and No 60%.
82

83. 8.Does a change in price affect their preferences
60
50
40
30
PERCENTAGE
20
10
0
yes no
INTERPRETATION
It was observed that price changes might be affected the sales by 55%.
83

84. 84

85. CUSTOMER SURVEY RESULTS
DABUR CHYAWANPRASH
AWARNESS LEVEL
100
80
60
PERCENTAGE
40
20
0
ZANDU BAIDYANATH
INTERPRETATION
It was observed that 100% of the customers already award about the DABUR
CHYAWANPRASH
85

86. PREFERRED BRAND
60
50
40
30
PERCENTAGE
20
10
0
ZANDU BAIDYANATH
86

87. INTERPRETATION
It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH
SATISFACTION LEVEL
5
4
3
2 RATING(1-LOW 5-HIGH)
1
0
ZANDU BAIDYANATH
87

88. INTERPRETATION
It was observed that the satisfaction level are high of the customers about the DABUR
CHYAWANPRASH
REASONS FOR SELECTING A PARTICULAR BRAND
INTERPRETATION
It was observed that 65% of the customers buy for the purpose of health, 20%of for
brand loyalty, 10% of customers for price & 5% of customers for taste.
HOW DID YOU COME TO KNOW ABOUT THIS BRAND?
88

89. 80
70
60
50
40
PERCENTAGE
30
20
10
0
TV INTERNET WOM PRINT
INTERPRETATION
It was observed that 80% of the customers award about the DABUR
CHYAWANPRASH through TV, and others through media, internet etc.
UNAVAILABILITY OF PREFERRED BRAND
89

90. 40
35
30
25
20
15
PERCENTAGE
10
5
0
PURCHASE WHATEVER
ANOTHER OFFERED BY
BRAND RETAILER
INTERPRETATION
It was observed that 40% of the customers could wait in case of unavailability of DABUR
CHYAWANPRASH.
PREFERRED PACK SIZE
90

91. 50
40
30
PERCENTAGE
20
10
0
1 Kg 500 gm 250 gm
INTERPRETATION
It was observed that 50% of the customers preferred 500ml pack, 30% of customers
preferred 1kg pack and 20% of customers preferred to buy 250ml pack of DABUR
CHYAWANPRASH
REASON TO SELECT PREFERRED PACK SIZE
91

92. 40
35
30
25
20
PERCENTAGE
15
10
5
0
AVAILABILITY PRICE FAMILY SIZE STORAGE
92

93. INTERPRETATION
It was observed that 20% of customers preferred because of availability, 40% for
price, 25% for family size & 15% of customers for storage.
FREQUENCY OF PURCHARE
60
50
40
30
PERCENTAGE
20
10
0
ONE MONTH TWO MONTHS SIX MONTHS
INTERPRETATION
It was observed that 30% of customers buy within the 15days, 55% of within
the 1 month & 15% of customers buy the hair oil after the 2month.
93

94. RETAILER SURVEY RESULTS
DABUR CHYAWANPRASH
1. Which brands of Chyawanprash do you stock?
100
80
60
PERCENTAGE
40
20
0
ZANDU HIMANI BAIDYANATH DABUR
INTERPRETATION
It was observed that 90% of total stock of CHYAWANPRASH is dabur
94

95. 2.Out of these, which are the most preferred?
80
70
60
50
40
30 RATING(1-LOW 5-HIGH)
20
10
0
ZANDU HIMANI BAIDYANATH DABUR
95

96. INTERPRETATION
It was observed that 80% of total customers mostly preferred the DABUR
CHYAWANPRASH
3. According to you what are the reasons for customers’ preferences?
60
50
40
30
PERCENTAGE
20
10
0
brand loyalty price availability no reason
INTERPRETATION
It was observed that 55% of the customers buy for the purpose of brand loyalty, 30% of
customers for price & 5% of customers for availability.
4.What is the profile of your typical consumer?
96

97. 70
60
50
40
30 PERCENTAGE
20
10
0
high income middle income low income
97

98. INTERPRETATION
It was observed that 20% from high-class income, 65% from middle class
income group & 15% from low income.
5.What schemes are you offered by the companies?
98

99. 60
50
40
30 PERCENTAGE
20
10
0
price discount buy one get one others
INTERPRETATION
It was observed that schemes that are mostly provided by the companies are price
discount 55%, buy one get one 5% & others are 40%.
6.What schemes does a consumer prefer most?
99

100. 70
60
50
40
30 PERCENTAGE
20
10
0
price discount buy one get one others
INTERPRETATION
It was observed that schemes that are mostly preferred by the customers are price
discount 70%, buy one get one 20% & others are 10%.
7.According to you, does in-store advertising have an affect on the consumers’
preference?
70
60
50
40
PERCENTAGE
30
20
10
0
yes no
INTERPRETATION
100

101. It was observed that advertisings have an affect on the consumers’ preference yes-
30% and No 70%.
8.Does a change in price affect their preferences?
60
50
40
30 PERCENTAGE
20
10
0
yes no
INTERPRETATION
It was observed that price changes might be affected the sales by 60%.
101

102. SWOT ANALYSIS OF DABUR
STRENGTHS WEAKNESS
• Strong presence in well defined • Seasonal Demand( like
niches( like value added Hair Oil and chyawanprash in winter and Vatika
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
Karpin, HLL and Bajaj for Vatika
• Innovation
Hair Oil)
• Increasing income level of the middle
• New Entrants
class
• Threat from substitutes (like
• Creating additional consumption
Bryllcream for Vatika hair oil)
pattern
102

103. Chapter v
1. Conclusion & Suggestion
103