SUMMER TRAINING PROJECT

ON

“MARKETING STRATEGIES

OF DABUR”

Submitted in the partial fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)TO

MAHARISHI DAYANAND UNIVERSITYROHTAK

SUBMITTED BY SUBMITTED TO

YOGESH TANWARRoll No. 0905051MBA (III Sem)

MS. TEENA GUPTA

GURGAON COLLEGE OF ENGINEERINGBILASPUR

SESSION: 2009-11AUG. 2010

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DECLARATION

I, Yogesh Tanwar, Roll No. 0905051, Class MBA (III Sem) of

Gurgaon College of Engineering, Bilaspur, hereby declare that

summer training project entitled: "Marketing Strategies of Dabur

India Ltd." is an original work and the same has not been submitted to

any other institute for the award of any other degree.

A seminar presentation of the training report was made on 8th June,

2010 to 2nd August, 2010 and the suggestions s approved by the

faculty were duly incorporated.

Presentation In-charge Signature of the Candidate

Signature:

Name of the Faculty:

Countersigned

Director of the Institute

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ACKNOWLEDGMENT

My sincere thanks to Ms. Teena Gupta, Faculty Member, Gurgaon

College of Engineering, Bilaspur, for her valuable guidance and

support at all time.

I am grateful to all the employees of Dabur India Ltd deserve special

thanks for their cooperation and help in the collection of necessary and

relevant material for this summer training project.

Also, I do thank and remember my friends for their effort and helping

hand.

Every effort has been made to enhance the quality of work. However, I

owe the sole responsibility of the shortcoming, if any, in the study.

YOGESH TANWARRoll No. 0905051

MBA (III SEM)

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PREFACE

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PREFACE

Indian Economy has undergone a radical transformation in the last three

decades. The discoveries and invention in various fields of life is perhaps be

the reasons for this transformation. The marketing strategy in India which was

practiced in the olden days has either been changed or been refined so as to

adjust with this dynamic world.

If we consider the early years of development of our economy. It is observed

that the producer’s consumers as well as production and consumption is

becoming more and more complex and specialized .

The concept of giving more customer satisfaction has been changed .

The present emphasis is one matters of providing a complete ‘Pleasure’ or

‘delight’ to the customers every walk of life.

In the light of the present marketing scenario, through this project “With the

change of policies in Budget 2003-2004, How Dabur can increase its market

share in food Products” emphasis on marketing.

My two months of training, in Dabur India Ltd. enabled me to study and

widen the intellectual horizon with a practical sense in the concept of

marketing in real life.

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THEORETICAL

CONCEPT

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THEORETICAL CONCEPT

AREA OF SPECIALISATION

Marketing, more than any other business function deals with customers.

Creating customer value and satisfaction are the heart of modern marketing

thinking and practice.

Sound marketing is critical to the success of any organisation- large or small,

for profit or non-profit, domestic or global. Large for-profit firms such as

McDonnell’s, Sony Fed Ex use marketing, but so do non-profit organisations

such as colleges, hospitals, museums and even churches.

Many people think of marketing only as selling and advertising. However,

selling and marketing are only the tip of the marketing iceberg.

Today, marketing must be understood not in the old sense of making a sale-

“telling and selling”- but in the new sense of satisfying consumer needs.

If a marketer does a good job of understanding consumer needs; develops

products that provide superior value; and prices, distributes and promotes

them effectively, these products will sell very easily. Thus selling and

marketing are only a part of a larger “marketing mix”- a set of market tools

that work together to affect the market place.

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging products

and value with others.

So , Marketing Management is defined as the analysis, planning,

implementing and control of programs designed to create, build and maintain

beneficial exchanges with target buyers for the purpose of achieving

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organisational objectives. Marketing management involves managing

demand, which in turn involves managing customers relationships.

The basic task of marketing is the delivery of total offer to the consumer is

such a manner that

a) the offer fulfills the needs of the consumer

b) the term and attributes of the offer are acceptable, and beneficial to the

consumer, and

c) All the organisational goal, including profits are achieved in the process.

The concept of marketing touches every sphere of one’s life. It is through

marketing, the standard of living is developed. A successful business requires

marketing as its key factor. The firm marketing, in the traditional sense means

‘Making sale’ but in the modern era, this has changed. Now the emphasis is

laid on ‘ satisfying the customers need’ rather than selling the articles.

Therefore the recent defination of marketing would be ‘the fulfillment of

needs by the transactions and exchanges of products through the media of

markets in a ‘ satisfying manner’.

Now-a-days there a vast varieties of marketing strategies are developed by

the companies to promote the selling, but those companies which are giving

importance to a customer’s wants will be succeeded in their attempts. So

among the companies involved in the competition , the one which understand

the customer’s will thrive and others will perish as the saying goes struggle

for existence and survival of the fittest.

It the on going study various attempts have been made to understand the

tactics of Dabur. As a result of the competitions a company has to find new

orientations to bring about exchanges for the purpose of satisfying needs and

wants. Marketing decision is one of the important tools, a company has to

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take in its long run. Most of the marketing decisions are based on Products, its

price and the way in which the selling can be promoted.

DABUR INDIA LIMITED

Over hundred years of caring.......

Dabur commenced operations in 1884 and is today a multilocational,

multiproduct enterprise. The Company has major interests in health and

beauty care. Dabur is a leader in Ayurveda - the traditional Indian health care

system. The Company manufactures and markets a range of oncologicals.

Dabur is one of the few companies in the world to produce Paclitaxel - an anti

cancer drug. The Company has developed its own eco-friendly process to

manufacture this drug from raw material stage.

The Company has 12 manufacturing plants in India, Nepal and Egypt. Dabur

products are also manufactured in Dubai. Dabur has transnational network of

19 offices servicing both rural and urban markets in India. The company has

sales and marketing offices in Dubai and London.. Dabur products are

available in over 50 countries. Dabur has collaborated with leaders in their

fields to set up joint ventures in India. The joint venture with Agrolimen of

Spain, General De Confiteria India Limited, manufactures confectioneries.

Dabur International Limited, the joint ventures with Bon Grain of France, will

manufacture specially cheese. Dabur has collaborated with Osem of Israel to

manufacture bakery specially and another food products.

Dabur India Limited- Its historical background and its growth

Dabur commenced operations in 1884 and is today a multilocatonal,

multiproduct enterprise. The Company has major interests in health and

beauty care. During the late nineteenth century,most allopathic medicines

were out of the reach for the vast majority of the Indian population, both in

terms of price and availability. This promoted a doctor from Calcutta, Dr. S.K.

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Burman, to establish a Company in order to provide low priced alternative in

the form of a traditional Aurvedic medicines. The company in question was

called Dabur which later became incorporated as Dabur India limited, after

merging with Vidogum and chemical Ltd 1986. The company was started by

Burman family and has come a long way. The dream of becoming a Rs 1000

crore Company by the turn of the century, which it has shared as a promise

with prospective investors during its 1997 public issue, could well come true.

Its such refreshing change. In a corporate battlefield littered with the corpes of

the familiar feuds, Dabur’s story of succession has been relatively smooth. All

highly qualified professionals in various disciplines, the Burman clansmen

have each been assigned critical but well-defined roles that complement not

supplement on another. Moreover, it is one house where trasition has been an

integral part of its history.

Today Dabur stands at the thershold of a major diversification, expansion and

globalisation programme that is aimed at transforming the once closely-held

family company into a professional group with interests such as diverse as

toiletries and pharmaceuticals and held products.

Pivotal to this effort and resources. In one deft stroke, the Burman family

plans to dilute its holdings in the group by 20 percent by offering Rs 54 crore

worth of shares at a premium of Rs 85 each to financial institutions, FII’s and

the public. It issued bonus shares to existing shareholders in the ratio of 4:1.

Together, this will hike the company’s paid up capital from Rs 4.56 crores to

Rs 28.47 crores. In order to expand internal sources are no enough.

Traditionally known for its Ayurveda/ethic products, with well known herbal

bases Dabur Chyawanprash, Hajmola, Pudin Hara, Dabur Amla hair oil the

company has retrained this aura with even new products while at the same

time entering modern areas of business.

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The company manufactures and markets a range of oncologicals. Dabur is one

of the few companies in the world to produce Paclitaxel and anti-cancer drug.

The company has developed its own eco-friendly process to manufacture this

drug from raw material stage.

The company has 12 manufacturing plants in India, Nepal, and Egypt. Dabur

products are also produced in Dubai.Dabur has a transnational network of 19

offices serving both rural and urban markets in India. The company has its

sales and marketing offices in Dubai and London. Dabur products are

available in over fifty countries.

Dabur has collaborated with leaders in their field to set up a joint venture in

India. The joint venture with Agrolimen of Spain, General De Confiteria India

Limited, manufactures confectioneries. Dabur International Limited, the joint

venture with Bongrain of France, will manufacture speciality cheese.Dabur

has collaborated with Osem of Israel to manufacture bakery specialities and

other food products.

From Rs 5 crore company in 1971 to Rs 316 crore company in 1993 to a Rs

1050 crore conglomerate now.

The rethinking within the Burman family began just before Dabur’s maiden

Public issue in 1993. Introspection into product portfolio, analysis of markets

and distribution afresh.

A.F. Fergusen was appointed to examine possibilities and come up with

suggestions that would help Dabur achieve its turn of the century targets.

From a closely help group in early 1990’s, the over 700 crore Dabur group has

diverse interests, ranging from pharmaceuticals to cosmmetics to food

products to insurance.

The different product ranges that Dabur offers in different segments are :-

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Pharmaceuticals :-Cytostatics, Anti Bacterials, Anti Histimines, Anti

Ulcerants and Antiacids, Analgesics and Anti Diarrhoeals, and Anti

Hypertensive.

Cosmetics :- Skin Nourishers and Tonners, Moisturisers and Sun Protectors,

Cleaners, Face Masks, Hair Oils and Vitalizers, hair Wash and Cleaners.

Foods :-Fruit Juices and Homemade cooking.

Family Products :-Hair Care Products, Dentifrice, Sherbets, Honey and Food

Additives.

Product for Global Markets :-Soaps, Shampoos, Shaving Creams, Cooking

oils and other select products from Dabur range.

Ayurvedic Specialities :-Liver Tonics, Cardioprotectives, Anti Arthritic,

Hypoglycamic, Rejuvenators, Anti Diarrhoeals and Bowel Regulators.

Veterinary Products :-Digestive, Uterine Tonics, Oestrus Inducers, Liver

Tonics Dermatologicals and Anti Stress.

Traditionally known for its ayurvedic/ethic products, with well known herbal

bases. Dabur Chyawanprash, Hajmola, Pudin Hara, Dabur Amla Hair Oil the

company has interestingly, retained this aura with even new products. While at

the same time entering more modern areas of business. Dabur Honey, for

instance, an attempt to brand honey, an old age commodity favourite with

Indians. On the other the company has entered into new-age areas such as

cosmetics and pecked food Also an anvil and personal care products through

tie-ups with multinationals.

In 1994 the new-age Dabur emerged, fresh from the success of its maiden

public issue, when the Burmans decide to decentralise the control on day to

day affairs. Also a decision was taken to convert the three core business of

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healthcare, family care and ayurvedic specialities into independent profit

centres, each with its own marketing and distribution set up.

The company has six profit centres:-

Healthcare products division.

Family product division.

Ayurvedic specialities division.

Ayurvedic division.

Pharmaceutical division.

Export division.

This was done not only to increase visibility, but also to give the professionals

more time of focus on existing products with the scope and freedom for each

division to enhance their market presence with additional products.

The strategic rationale for shift from Dabur’s inherited business is that the

OTC drugs like Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of

the business. Dabur has more than 60% share of the branded Chyawan-prash

market. The market share of digestive like Hajmola and Pudin Hara above

80%. The high profile diversification’s, specially in foods and cosmetics, is all

set to build no that franchise.

Dabur has range of over 500 products covering Health and Beauty care, Bulk

Drug Pharmaeuticals, Animal Health Care, Foods, Cosmetic and Natural

Gums.

The strategic rationale for the shift from Dabur’s inherited business is that the

group hopes to leverage its considerable brand equity. Last year, more than

70% of the group’s business came from the family and healthcare division.

The former, which covers hair oils, oral care and Dabur Honey, the largest

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division, contributing 43% of the bottom line. Health care, covering OTC

drugs like Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of the

business. Dabur has more than 60% share of the branded Chyawan-prash

market. The market share of there digestives like Hajmola and Pudin Hara is

above 80%. The high profile diversifications, especially in foods and

cosmetics, is all set to build on that franchise. Analysts have questioned these

moves because they bring the group up squarely against market dominated by

multinationals and strong domestic players. The young cousins think

otherwise. A close look at the bussiness and the challenges they could face.

Foods:- This cannot strictly be called a new line of business for Dabur. The

company has been selling Sharbat-e-Azam, a herbal drink concentrate, for

over a decade and products like Chyawanprash and Hajmola were already

Classified and sold as food items abroad. Today, the Dabur game plan covers

the entire gamut of the Rs.3000- crore convenience and ready to eat foods.

Making it happen is a spate of tie-ups, there’s excelsior Foods, a 60:10 venture

with the $ 500 million Osem, Isarel’s largest food company, which launched

Creamwich crisps in February this year. Other products on the anvil include

salad dressings, biscuits and noodles. Dabur International is an equal

partnership company with the $2-billion Bongrain SA of Frnace, to make

specialty cheese products. The Rs.10-crore venture will enter the 7500-tonne

per annum cheese market. Here, it will take on established players like market

leaders Amul which has a 60% market share, Vijay(14%) and Vadilal(10%).

One Index of the kind of challenge Dabur could face is the group’s foray into

chewing gum in collaboration with Agrolimen of Spain for its Boomer brand

in 1995. The company claims the venture has been a success-sales reached Rs.

25 crore in the first year against a target of Rs.15 crore. But recently, the unit

price of Boomer was reduced from Rs.1.50 to Rs. 1 after Perfetti India, the

main competitor in this segment, reduced its price.

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Dabur take on established players like Hindustan Lever, Nestle and Amul.

Amit Burman, director-in-charge, foods and cosmetics, is confident. Their

products are unique. This coupled with product quality and Dabur’s brand

equity will give us a unique position.

But it is going to be a long haul. For one, Dabur may be a strong player in the

herbal market, but foods, with a shorter shelf life, require a different

distribution network.

Take the launch of Real fruit juices and Homemade Cooking Pastes in June

97. The product proved to be a sellout but the company was unable to keep

pace with demand. As a result Real and Homemade went off the shelves in 45

days and reappeared only on May 98 and from then it has picked up. The

Burmans are, however, putting some infrastructure in place for their foods

business. For instance, Dabur plans to set up a cold chain network to support

its cheese products business.

Cosmetics:-This was suggested by Gauri, G.C. Buaman’s daughter After a

stint abroad as a student, she realised that quality cosmetics were hard to come

by in India. She mooted the idea of diversify into cosmetics and positioning

the products at a price range the would make them affordable for urban,

middle class women, So Samara, a cosmetics range of skin-care products, was

developed by the Dabur Research Foundation.

Here again, there is tough competition from strong domestics and

multinational players like Lakme, Oriflame and Benekiser. But Amit Burman

is confident of penetrating the Rs. 800 crore cosmetic market. Dabur’s equity

in the herbal category is certainly going to help in marketing these products,

although we do not claim this range to be either herbal or Ayurvedic.

Samara is relating through 150 select outlets in Delhi and Chandigarh and will

roll out in Mumbai shortly. With a projected turnover of Rs. 3.5 crore in the

first year, Dabur is taking no chances. The company has installed skin testing

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machines and oil outlets. These will help buyers test their skin type before

making a purchase.

Veterinary ayurvedic : Dabur Ayurved, set up in 1995 targets the urbanised

sector. The turnover from this division comes Rs. 17.6 crores in 2003. In 2004

the company hopes to close with a turnover of Rs. 19.8 crores the Rs. 90 crore

market for veterinary herbal drugs, they hold a 20% market share. With very

few competitors, Dabur is eyeing the top slot by this year end.

Natural Gums: This is the binder division of the group set up in 2003,

catering to customer specific binding needs. The ubiquitous tamarind and

sugar seeds constitutes it raw materials. Dabur has signed a technology

transfer and buyback agreement with Sheikibo of Japan, the world market

leader for gums.

Finance: Also on the agenda in Dabur’s foray in the insurance sector. They

have signed an MoU for setting up a 50-50 joint venture with Boston-based

Liberty Mutual Group.

The different product ranges that Dabur offers in each segment are:-

Pharmaceuticals:-Cytostatics, Anti Bacterials, Anti Histimines, Anti

Ulcerants and Antacids, Analgesics and Anti Diarrhoeals, and Anti

Hypertensives.

Cosmetics:- Skin Nourishers and Tonners, Moisturisers and Sun

Protectors, Cleansers, Face Masks, Hair Oil and Ventilizers, Hair Wash

and Cleaners.

Foods:- Fruit Juices, Homemade Cooking.

Family Products :- Hair Care Products, Dentrificce, Sherbets, Honey and

Food Additives.

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Products for Global Markets:- Soaps, Shampoos, Shaving Creams,

Cooking Oils and Other select products from Dabur range.

Ayurvedic Specialities:- Liver Tonics, Cardioprotectives, Anti Arthic,

Hypoglycamic, Rejuvenators, Anti Diarrhoels and Bowel Regulatros.

Veterinary Products :- Digestigve, Uternice Tonics, Oestrus Inducers, Liver

Tonics Dermatologicals and Anti Stress.

Bakery Product :- Herbal and health products giant Dabur Ltd. is making an

entry into the business in collaboration with Israel based OSEM Group, a

leading bakery product company in the country. The joint venture will be

floated in which Dabur India Ltd. will hold 60% stake.

The initial investment in the project is to the tune Rs. 10 crore and the project

will be funded through an equity contribution of RS. 5 crore by the two

partners and a loan of Rs. 5 crore. OSEM is one of the largest grocery food

manufacturers with a product line of nearly thousand varieties of cookies,

cake, candies wafers and sauces among other things.

The Dabur-OSEM joint venture manufactures snack foods, mayonnaise,

specialty biscuits and extruded food. Dabur also proposes to transfer its

extruded food products to the joint venture company. The company is already

into making Sharbats (sharbat-ai-Azam), rose water, kewra water, cardamom

extract sold under the brand name of instant, a red pepper salt called Capisico.

Besides they are manufacturing candies called Hajmola. The company intend

making items that are suitable to Indian paletes like or ginger based chutney

along with mayonnaise to cater to the new evolving palet. The company is also

test-marketing a lemon flavoured juice. The revenue generated by the sales of

these products at present amounts to Rs. 4 crores. The joint venture company

will establish an exclusive distribution network for its products line and will

also use Dabur’s existing network for sale of its products.

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Dabur has its roots in Ayurveda and has been manufacturing wide range of the

health care products. If a person comes to buy Dabur honey or Hajmola, he

can also buy the snack food. It is this outlet that the company is using

ultimately to market the product of joint venture. And the product is packaged

convenience food. After all today chips and Pepsi are more popular even in the

remote villages.

Couple of years back Dabur realised that many of its brands were selling in

dying market. Items like extract, rose water etc., could not be promoted

because of thin margins. In the early 1970s Dabur even went into the

manufacturing of pan masalas, which was sold under the brand name of

Nawabi pan masala. However, the venture was given the go-by, in view of the

fact the Dabur is basically a health care company and the product did not go

with the image of the company. Similarly, Chyawan-prash was brought only

by grandparents in rural and semi-urban markets a group which was vanishing

rapidly. To keep growing and attract the younger set of the rural consumer, the

Dabur brand has to shed its image.

And after the years of perfecting rural selling pitch, the marketer need to learn

how to woo the urban buyers. For the past few years, Dabur has been engaged

in balancing its traditional appeal with a modern image and it is a difficult job.

There is a fear in the process that the company may lose its existing customers

and the balancing act between the rural and urban, modern and traditional has

to be maintained cautiously. This was a strategy of Dabur.

This is a bilateral agreement in which Dabur has majority. Dabur is doing the

market research of the Indian psyche-what can be sold and what can not be,

while OSEM is providing the technology. To be successful in the market,

product should have market acceptability and Dabur is confident that their

new products will be as popular as the existing ones. However, they are aware

of the fact that they will face stiff competition. If Hajmola could compete

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against chatpat churment from Procter and Gamble, then why not against other

things.

Besides catering to Indian market, the joint venture company also plans to

export its products to Middle East.

EXPORTS

Healthcare products and family products brands contribute 35% of Dabur’s

Export sales. Bulk Drug, including fluconazole, terfenadine and anti-cancer

drugs, accounts for a further 14% of exports, while oil, spices and gum

accounts for the remainder. The companies leading exports is Amla Hair Oil,

which is particularly popular in U.K and the Middle East. Other principal

market include Bangladesh, Sri Lanka and Malaysia, although the company

products are available in cover 50 countries in total.

In terms of recent international launches, the company introduced six single-

ingredient ayurvedic OTC dietary supplements under is Nature Care label in

the U.K, Germany and Italy.

The recent past has spawned a unique economic era. Over the century of

presence against the background of varying economic conditions, has

strengthened Dabur’s marketing skills. Dabur has cope with, indeed thrive in a

changing marketing environment. As a marketer Dabur has listened, learned,

reacted and then created products that have stood the best of time. Products

that have evoloved to become household names in over 35 countries.

Global Vision coupled with motivated human resources, appropriate

technologies and optimum utilisation of resources at all levels are today the

key ingredients for a successful enterprise. These are very foundations of

Dabur’s corporate philosophy.

As a leader cannot be insensitive to the changing nature of customers demand.

Serving them requires a continuous review of technology. Technology

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upgradation is a continuous process. At Dabur it is a culture you can not

service tomorrow’s market with yesterday process. Dabur’s advantage is its

superior technology edge. And in maintaining this they are not constantly

pushing back the frontiers of technology but also expanding the frontiers of

their own potential and capabilities. The world over standards and bench

marks have changed, and so have Dabur’s, though they continue to be inspired

by ancient wisdom. Dabur uses today technology to deliver it in this

successful blending that give Dabur the confidence of continuing to be the

leader even amidst chage.

The Indian market has gone sea change in the last few years. There has been

influx of some of the latest technology the world has to offer. Dabur has taken

advantage of this and embedded the best of the relevant technology.

Production, Research and Development are the two areas where this infusion

is evident.

Dabur prides itself on its R&D infrastructure. It is the investment that has been

paying rich dividends. R&D at the Dabur is obsession. It is the corner stone of

their innovative skills. Be it an anti cancer drug or herbal enriched hair oil,

Dabur’s research and development has been successfully in developing both

and in transferring laboratories techniques into production. This is very

important because research without its adoption into practice is a mere

academic exercise.

Technology upgradation has not been at the cost of be humanising the quality

of life. Stricker pollution control measures, as expansion of information

technology capabilities have all added to the better environment and work

ethos.

Dabur has always been synonymous with quality. For Dabur it is a culture and

not a stop gap arrangement. Dabur believes that quality is a corporate

responsibility towards employees, and environment in which they operate.

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Sustaining consumer confidence for over a century is no mean feat.It is indeed

a true reflection of quality of the Dabur’s products. Dabur as a company are

committed to sustain this consumer confidence.

Global vision, a perfect blending of technical and human resource are key

ingredients for growth. These are very foundation that will expand existing

business as well as nurture strategic alliance through commitment innovation

and as emphasis on total quality.

Fiftieth year of independence of India a year of introspection not only for the

country but for Dabur also. From private limited company at the time of

independence, Dabur has come a long way to be a widely held company rated

amongst the best business ho/se of India. Dabur feels proud in reminiscing

those years of achievement. Economic growth is not an end in itself. It is the

contribution to the environment in which you flourish, that matters. Dabur has

contributed by providing health care for the society we live in. has cared for its

customers and has tended the nature that provides raw material for the

company’s product.

Dabur has taken everyone in their journey towards growth and progress.

Shrinking global borders has made the company part of the international

community. Changing world economy has changed the ground realities. The

company has lived upto these challenges and have entered new market

overseas. Back home, company has diversified into new areas.The company

will look forward to new opportunities for growth in years to come. Dabur has

kept pace with time . It has changed, evolved and contemporised. Dabur has

learned to outpace the competition. And is sure that it will continue to be a

leader in all the areas of its activities in the golden year of Indian

independence and beyond.

ADVERTISING

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The new advertising campaigns were taken by 112- year old company to

position it as a contemporary, up market company. Forget dada- dadi’s brand.

The 112-year old veteran in pharmaceuticals and hair care, Dabur India

limited is swiftly shedding its traditional trappings and turning contemporary

and chic. It is not just the product profile that is metamorphishing, through

Dabur’s new offerings Samara cosmetics, Real fruit juices and home made

pastes are more trendy than its old brands Pudin Hara, Dabur Amla Hair Oil

and Chyawanprash. Far more interesting is the change in the company’s

positioning. From sedate endorsements from filmstars and rishis.

Dabur’s new preferece is for interactive advertising, and its spokes persons are

more often than not, attractive young women.

The brands have evolved over the years to suit the consumer. The shift from

traditional is in tandem with the changing trends in consumer behaviour.

Indians have become more aware of their rights and new generation refuses to

buy brands just because it is dadaji’s favourite. It needs more valid reasons to

make a choice. Dabur’s new advertising style gives them valid reasons.

The campaigns are intended to give better discounting on bourses. The intense

campaigns are a part of Dabur’s growth strategy which is aimed at:

Leveraging on its brand equity by introducing line extensions.

Creating a niche for itself by innovative product introductions.

Creative about Home made and Lamoneez campaigns ad conveys the

message to the target audience working women in a short span of 15-20

seconds.

Dabur’s attention to advertising and promotion was provoked by a 1993

market survey, which showed most consumers perceived Dabur to be a small

company, with only one or two factories and no more than a handfull of

22

products. However, the company was determined to strengthen its corporate

image in order to attract foreign partners and joint ventures.

DISTRIBUTION CHANNEL

Dabur commenced operations in 1984 and is today a multilocational,

multiproduct enterprise. The company has major interests in health and beauty

care.

Dabur is a leader in ayurveda the traditional Indian health care system. The

company manufactures and markets a range of oncologicals. Dabur is one of

the few companies in the world to produce Paclitaxel an anti-cancer drug. The

company has developed its own eco-friendly process to manufacture this drug

from raw material stage.

The company has 12 manufacturing plants in India, Nepal and Egypt. Dabur

products are also in Dubai.

Dabur has a transnational network of 19 offices servicing both rural and urban

markets in India.

The company has sales and marketing offices in London and Dubai. Dabur

products are available in over 50 countries.

Dabur has collaborated with leaders in their field to set up a joint venture in

India. The joint venture with Agrolimen of Spain, General de Confiteria India

Limited, manufactures confectioneries. Dabon International Ltd, the joint

venture with Bongrain will manufacture speciality cheese. Dabur has

collaborated with OSEM of Israel to manufacture bakery specialities and other

food products.

Dabur has a range of over 500 products covering health and beauty care, bulk

drugs, pharmaceuticals, animal health care, foods, cosmetics and natural gums.

23

Dabur has one of India’s largest distribution network.. In 2003 Dabur products

estimated 27 retail outlets. This strong distribution network has ensured

availability of Dabur products in almost every part of the country. From the

small pan shops to grocery stores, from drug stores to big markets, Dabur

products are available in all.

It has already deployed as many as 130 representatives to roam rural India,

where its market lies, and interact with farmers directly to spread the message

of herbal animal health care. This is one of the largest sales source deployed

by any company for marketing veterinary medicine in the country.

MARKETING

Having set up a new foods division recently, the Rs. 1050 crore Dabur group

has the difficult task of making an impact with its product launches in the

market place , initially dominated by mega brands from deep pocketed

transnationals, and ruled by consumers whose age old eating habits were not

easy to change. Moreover Dabur’s products are range of exotic pastes and

packed fruit juice were essentially new concepts which consumers were not

familiar with, in branded form at least, in this country.CEO G.C. Burman’s

search for the best way to stage a big bang entry ended in time based

competition. Instead of phasing out the launches of its new products, which

would have been tantamount to adding a small drop to an ocean at discrete

intervals, he decided to roll out new products in one breathless burst of six

weeks, introducing one new brand on every Monday. In the market place

Dabur beat every other company planning to introduce products in the same

segment, thus gaining almost generic association in the customers mind for

some newer brands. On the consumers psyche, the brands blikzkrieg registered

Dabur as a modern food company, helping in dismantling its earlier image of

being a vendor of semi medicinal ayurvedic products only, and within the

organisation. The imperative for these products only, and within the

organisation. The imperative for these rapid fire product launches led to a

24

dramatic quickening of the pace of supporting activities like distribution and

production, preparing these processes to respond to the changing demands on

them at high speed. Thus, by competing on time, Dabur has given both its

product and its internal processes a head start in locking horns with rivals.

STRONG BRAND EQUITY

A vast product portfolio (over 450 products), a modern research base and a

strong transnational marketing and distribution network are some of the major

factors contributing to the success of Dabur India. The companies product

portfolio encompasses product line like herbal health care, beauty care,

ayurvedic medicines, ayurvedic vaterinary products, pharmaceuticals

cosmetics, and natural gums and foods. Dabur is the market leader in most of

three product categories in the domestic market. It is also the leading exporter

of herbal health care and beauty care products. Having indentified its

strengths, the company stuck to its crore competencies.

While all the 450 products were under one umbrella earlier, the restructuring

of its business into six distinct divisions, each headed by an independent

professional, has provided Dabur with the much needed foucs. The result of

this restructuring of its business into six distinct divisions, each headed by an

independent professional, has provided Dabur with the much needed focus.

The result of this restructuring are reflected in the 9603 results sales growth of

39% and improvement in the OPM from 9% to 12%.

Distribution, marketing and product innovations are the major strength of

Dabur. The ability to find need gaps in the market, to develop products

accordingly and ensuring the timely availability of these products to

consumers have been the hallmark of the company. In the process, it has build

a formidable brand equity. One of the most important decisions taken by the

company in its formative years was to give the consumers good value for their

money.

25

Dabur has grown steadily over the last one decade. To achieve faster growth

rates, the company diversified into areas where its strengths could be utilised.

26

OBJECTIVES OF THE

STUDY

27

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 behaviour.

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.

28

COMPANY PROFILE

29

COMPANY PROFILE

DABUR AT A GLANCE

Dabur India Limited has marked its presence with some very 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 4th largest turnover of

Rs.1329 Crore (FY02)

2 major strategic business units (SBU) - Consumer Care Division

(CCD) and Consumer Health Division (CHD)

3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur

International and 3 step down subsidiaries of Dabur International -

Asian Consumer Care in Bangladesh, African Consumer Care in

Nigeria and Dabur Egypt.

13 ultra-modern manufacturing units spread around the globe

Products marketed in over 50 countries

Wide and deep market penetration with 47 C&F agents, more than

5000 distributors and over 1.5 million retail outlets all over India 

CCD, dealing with FMCG Products relating to Personal Care and Health Care

Leading brands -

Dabur - The Health Care Brand

30

Vatika-Personal Care Brand

Anmol- Value for Money Brand

Hajmola- Tasty Digestive Brand

and Dabur Amla, Chyawanprash and Lal Dant Manjan with

Rs.100 crore turnover each

Vatika Hair Oil & Shampoo the high growth brand

Strategic positioning of Honey as food product, leading to market

leadership (over 40%) in branded honey market 

Dabur Chyawanprash the largest selling Ayurvedic medicine with over

65% market share.

Leader in herbal digestives with 90% market share

Hajmola tablets in command with 75% market share of digestive

tablets category

Dabur Lal Tail tops baby massage oil market with 35% of total share

CHD (Consumer Health Division), dealing with classical Ayurvedic

medicines 

31

Has more than 250 products sold through prescriptions as well as over

the counter

Major categories in traditional formulations include:

- Asav Arishtas

- Ras Rasayanas

- Churnas

- Medicated Oils

Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol

- Madhuvaani

- Trifgol

Division also works for promotion of Ayurveda through organised

community of traditional practitioners and developing fresh batches of

students 

COMPANY HISTORY

1884   Birth of Dabur

32

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

33

Dabur's mission of popularising a natural lifestyle transcends national

boundaries. Today there is global awareness of alternative medicine, nature-

based and holistic lifestyles and an interest in herbal products. Dabur has been

in the forefront of popularising this alternative way of life, marketing its

products in more than 50 countries all over the world. 

Our products World Wide

We have spread ourselves wide and deep to be in close touch with our

overseas consumers. 

Offices and representatives in Europe, America and Africa;

A special herbal health care and personal care range successfully

selling in markets of the Middle East, Far East and several European

countries.

Inroads into European and American markets that have good potential

due to resurgence of the back-to-nature movement.

34

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 and Production

Strategic partnerships with leading multinational food and health care

companies to introduce innovations in products and services. 

Manufacturing facilities spread across 3 overseas locations to optimise

production by utilising local resources and the most modern

technology available.

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. Given the vast range of products,

sourcing, production and marketing have been divested to five leading group

companies that conduct their operations independently:

DABUR FOODS

DABUR NEPAL

DABUR EGYPT

DABUR ONCOLOGY

DABUR PHARMA

35

36

COMPANY PHILOSOPHY

"Dedicated to the health and well being of every household"

This is our company. We accept personal responsibility, and

accountability to meet business needs.

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 are our most important asset. We add value through result driven

training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products

to fulfill them better.

37

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

boundary-less organisation. We are intellectually honest in advocating

proposals, including recognizing risks.

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

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

We are honest with consumers, with business partners and with each

other.

MILESTONES

Milestones to success

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 gone a long way in popularising and making easily available a

whole range of products based on the traditional science of Ayurveda. And it

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.

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

38

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of

specialisation. It is the first Company to provide health care through

scientifically tested and automated production of formulations based on our

traditional science.

1930 - Automation and upgradation of Ayurvedic products manufacturing

initiated

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

1940 - Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda,

with the launch of Dabur Amla Hair Oil. So popular is the product that it

becomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products

continues. The ancient restorative Chyawanprash is launched in packaged

form, and becomes the first branded Chyawanprash in India.

1957 - 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

39

1978 - Launches Hajmola tablet

Dabur continues to make innovative products based on traditional

formulations that can provide holistic care in our daily life. An Ayurvedic

medicine used as a digestive aid is branded and launched as the popular

Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most modern herbal

medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun

The 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 Foundation develops an eco-friendly process to extract the drug from

its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

40

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. 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

Maintaining global standards

41

As a reflection of its constant efforts at achieving superior quality standards,

Dabur became the first Ayurvedic products company to get ISO 9002

certification.

INANCIAL REPORT

Rs (Crores)

2007-2008 2005-2006

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

From the previous yr

81.12 66.12

- Transferred from debenture

Redemption Reserve

-- 2.50

- Transferred from investment 0.83 -

42

Allowance Reserve

- Transferred from Investment

Deposit Revenue

1.82 -

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

43

RESEARCH

METHODOLOGY

44

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 gaunche 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

45

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 Real Fruit Juice and Homemade Cooking Paste.

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.

46

MARKETING

STRATEGY

47

MARKETING STRATEGY FOR DABUR FOODS

FRUIT JUICES : INDUSTRY

Fruit processing industry has been included in the high priority sector, which

means automatic approval for upto 51% foreign equity participation, free

import of capital goods, raw materials and other inputs for export oriented

units, and five tax-holiday for companies. This special treatment was

warranted due to inherent high growth potential.

There has been three-fold increase in fruits processing units in the last seven

years. The installed capacity of fruit processing industry has gone upto 29.10

lakh ton in 2003 from 19.50 lakh ton in 1998. The output of processed fruit

grew by around 22% during the same period.

Though, as a result of value addition, the industry is said to be rowing at 10-

15% per annum, no significant change has accrued to the companies from

increased production of fruits as the cost of production has remained high,

primarily driven by the cost of raw material. High cost of raw material is due

to small land holdings, which discourages the use of mechanised methods and

there are no economies of scale.

Also, as the processors from several small products, maintaining cosistency in

quality of raw material becomes a problem. A plausible solution to this

problem could be corporisation of agriculture, especially for the production of

fruits. Large tracts of land can be allowed to be developed by the corporate

using modern technology.

The industry is extremely decentralised and a large number of processing units

are in the cottage and small-scale sector. The other major problem is the poor

post-harvest handling facilities. Consequently, the quality of fruit reaching the

processors continues to suffer.

48

There are few or no cold chains and cold storages in and around growing

centres. Poor storage and constant handling affects the quality of the fruits and

the processing companies end up losing 30% of raw material. This again leads

to an increase in the cost of manufacturing. Capacity utilisation continues to

remain abysmally low, at around 32%. This is because most fruits are seasonal

and the processing plant still prefers to go in for single fruit. More recently

companies like Dabur, which manufactures Real range of fruit juices, have

started experimenting with processing two or more fruits. Capacity utilisation

may improve significantly if this trend becomes more popular. Brand building

is an important part of selling and surviving strategy for fruit processing

companies. Companies like Tropicana from Pepsico. which sells juice under

the brand name Tropicana and Dabur’s Real fruit juices have emerged as

successful brands, signifying the importance of brand building in the fruit

processing industry.

On the export market front, the picture seems to look better. A whole range of

new processed food products is emerging as the new export potential, which

specifically include the fruit juices. The Indian exports were generally

dominated by mango pulp.

Within the domestic market, among the processed fruit products, fruit juices

and such other products, like nectars etc, are beginning to get a market. But

the off-take is limited to the high income group. These products also face stiff

competition from bottled aerated drinks.

These facts does not really mean a dismal potential installed in for fruit juice

industry there exists a latent demand for fruit juice in the country. Indian

consumer has become more and more hygiene and health conscious, which

has led him to demand for hygienic food products. Fruit juices thus, have a

great potential to appeal to the Indian Consumer. The income level of the

average Indian is rising which has resulted in increase in disposable incomes.

Therefore, consumers are ready to buy packets, processed and hygienic fruit

49

juices rather than a glass of juice from the roadside juice vendor, even if the

packed juice may cost him more. Realising these facts and Govt policy to

include processed fruit juice industry under the high priority sector, many new

and old companies entered the packed fruit juice market.

To precede everyone, was the Rs. 1050 crore Dabur India Ltd which is well

known as a pharmaceutical company. In June, 1996 Dabur, entered the juice

market realising its potential with its vast range of Real fruit juices. Real fruit

juices were not an instant success. Its failure can be attributed to the slackness

in the distribution network.

Learning upon the lost opportunity by Dabur, a Mumbai based textile firm

looked upto to diversify its business operations and entered the fruit juice

market with the formation of Enkay Texofood Ltd. Their brand Onjus was

launched in April 97, and with careful planning they captured a huge market

share in virtually monopolistic market conditions.

Dabur later realised its mistakes and geared up to take on the market leader

Onjus. Relaunched, Real fruit juices in August 98, the revitalizedReal fruit

juices have started doing well after its relaunch.

Watching the intense battle between Tropicana and Real fruit juices, to caputer

the Indian fruit juice market, international soft drink giant Pepsi decided to

enter this lucrative fruit juice market. Pepsi recently launched its answer to

Onjus and Real in the shape of Tropicana.

The presence of Tropicana, Real and Berry suggest that there is an immense

potential in the Indian fruit juice market. Even though the established players

like Onjus and more frequently Real have captured a chunk of the juice

market. The entry of Tropicana suggest that there is still scope for others to

enter into this market and hatch the eggs of the golden goose, Indian juice

market.

50

The products undertaken in fruit juice segment in the Beverage industry are:

Tropicana from Pepsico

Real Fruit Juices by Dabur India Ltd.

Berry an Australia Product.

MARKETING STRATEGIES OF DABUR FOODS LTD.

The activities and programs which a business firm designs and carries out in

its efforts towards winning customers, relate one or the other of the four

elements, which are usually known as four P’s of marketing, or just Marketing

Mix variable.

Product

Place

Price

Promotion

1) Product means the goods and the services combination the company Offers

to the target market.

Its variables are :-

- Product mix and product line

- Design, quality, features, models, style, appearance, size and warranty

of products.

- Packaging, type, material, size, appearance, label

- Branding and trademark

51

- Services, pre-sale and after-sale

- New products

2) Place includes company activities that make the product available to

target consumers.

Its variables are :-

- Channels of distribution, types of intermediaries, channel design, location of

outlets, channel remuneration and dealer - principle relations

- Physical distribution, transportation, warehousing, inventory levels, Order

processing etc.

3) Price is the amount of money customers have to pay to obtain the Product.

Its variables are :-

- Pricing policies, levels of margins, discount and rebates.

- Terms of delivery, payment terms, credit terms and installments Facilities.

- Resale and price maintainence

4) Promotion means activities that communicate the merits of the product and

persuades the target customers to buy it.

Its variables are :-

- Personal selling:- objectives, level of effort, quality of sales force, cost level,

level of motivation.

- Advertising : media mix, budgets, allocations and programs.

- Sales promotional efforts, displays, contests, trade promotions.

- Publicity and public relation.

52

An effective marketing program blends all the, marketing mix elements into a

coordinated program designed to achieve the company’s marketing.

objectives by delivering values to consumers. The marketing mix constitutes

the company’s tactical tools kit for establishing strong positioning in target

markets.

Thus, from the above it is very much clear that the proper marketing mix is

necessary for the products to be successful.

Hence, the product to be analysed as stated here under with their marketing

mix.

53

PRESENTATION OF

DATA

54

PRESENTATION OF DATA

CONSUMERS ANALYSIS

DABUR REAL JUICES

1. People Drinking Fruit Juices

55

2. Brand Awareness

56

3. Category of Real Juice Consumer Mostly Buys

57

4. Seasonal Consumption of Real Juice

58

5. Consumption of Real Juice if there will be slight increase in Price

& Increase in quality

59

6. Customer Expectation from Dabur by exemption of excise Duty.

60

7. Consumption of Real Juice if there will be increase in quality and

slight decrease in price.

61

8. Will discount influence customers to leave Dabur & use other

Juice knowing Real Juice is better.

62

CONSUMERS ANALYSIS

DABUR HOMEMADE COOKING PASTES

1. Use of Cooking Paste to make food delicious

63

2. Recall of Dabur Homemade Cooking Pastes

64

3. Category of Paste Consumer Buy.

65

4. Customer expectation from Dabur by exemption of excise duty.

66

5. Consumer of Homemade if there will be slight increase in Price &

increase in quality

67

6. Consumption of Homemade if there will be increase in quality &

slight decrease in Price

68

7. Do discounts influence customers to leave Dabur & use other Paste

Knowing Homemade is better

69

RETAILERS ANALYSIS

DABUR REAL JUICE

1) Stocking of Real Juice by the Retailers

70

2) Purchase of Juice Type

71

3) Stocking of Real Juice Over the Past Year

4) Reasons for stocking Dabur Real Juice

72

73

5) Any effect of increase in Price in real Juice

74

RETAILER ANALYSIS

DABUR HOME MADE

1) Stocking of Homemade by the retailer

2) Purchase of Cooking Paste

75

3) Stocking of Dabur homemade cooking Paste over the past year.

Q.4. Reasons for stocking Dabur Homemade

76

77

5) Any effect of Budget

78

ANALYSIS OF DATA

79

ANALYSIS OF DATA

SWOT ANALYSIS

STRENGTHS:-

It is present in two sweetened and unsweetened taste

Efficient distribution channel

Affordable and visible

User friendly packaging

Extended shelf life

Easy availability

Reliability

Appeals to health and hygiene conscious people

Large product line

Undifferentiated market

WEAKNESSES

Consumer’s perception towards Dabur as a pharmaceutical company

Perishable product

Stringent quality management

High investment required

OPPORTUNITIES

Growing stage- sunrise industry

80

Changing consumer habits

New flavours especially vegetables

Export potential

THREATS

Entry barriers not high

Competition from MNC’s

Competition from non-alcoholic beverage market.

81

FINDINGS

82

FINDINGS

THE MARKETING MIX

PRODUCT ( Real Juice )

The Facts :

The Real range of juices includes orange, mango, pineapple and mixed fruit

juices as well as its vegetable variant, tomato in its product line.

This juices contain 100 percent fruit juice. Real has no additives artificial

flavour, colour or preservatives.

The fruit juice has a self life of six months and does not need refrigeration at

the retail end. The Juices are available both in sweetened and unsweetened

form.

Real fruit juices were available and packed in Nepal in 500ml and llitre

tetrapack, Prevaiously it was available in elopack. To overcome this

hindrance, Dabur India tied up with Godrej Foods regarding the packaging of

Real, and now Real is available in tetrapacks of 200ml, 250ml, 500ml, l litre

which are tapped at the top for easy handling. The market share of Real juices

account for 35% & enjoying the Privilege of becoming Mkt leader.

FINDINGS :-

In terms of variety and flavour, Real offers a multiflavoured variety. Also,

Indians are known to have a sweet tooth, Real juices are available in

sweetened flavour also. Real provides naturally sweet and artificially

sweetened juices- a big plus for the Real brand. Also now, Real fruit juices are

available at every hook and corner.

Elopacks were introduced by Real to ensure good juice quality but as

tetrapacks are preferred and now Real juices are packed in tetrapacks keeping

83

the quality and easy handling, so as for now, Real juices are available in

tetrapacks of 200ml, 500ml and l litre.

84

PRICE

FACTS

Brand Flavours 200ml 250 ml 500 ml 1 litre

REAL

Orange

(sweetened

Unsweetened)

13 - Rs 35 Rs 60

FRUIT

Mango

(Sw and Unsw) Rs 10 - Rs 35 Rs 60

JUICES

Pineapple

(Sw and Unsw) - - Rs 35 Rs 60

Mix Fruit Juice

(Sw and Unsw)- - Rs 35 Rs 68

Tomato

(Sw and Unsw - -

Rs 35 Rs 60

FINDINGS:-

Real, multi flavoured brands has put its different flavours under different price

tag keeping in mind the preferred tastes of Indian consumer. The sweetened

and unsweetened juice varieties are priced same.

Since Real is fighting its battle not just against its immediate competitor

Tropicana but also against the established Frooti, so the prices for orange and

mango juices are in a competitive range and the other juices are priced a

higher than that of orange and mango juices keeping their novelty and

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preferences of Indian consumer in mind. Last year, Real launched its festive

carton of four 500 ml packs (2 oranges, 1 mixed and 1 tomato) priced at Rs.

90. This year Real launched a gift pack of four 500ml packs (mango, orange,

pineapple and mixed fruit juices) priced at Rs. 105. Also, Real has launched a

scheme of Buy two orange juice pack of 250ml and save Rs. 8’. The company

believe that once the consumer try the brands at slashed price, the brands

would gain peak sales year after year. However, the company failed to

understand that consumer in general are no longer brand loyal and are always

hunting for “value of money”. In order to steal the show from aerated, non-

alcoholic fruit drinks, it is imperative that the company try and increase profits

by increasing sales volume and reaching economy of scale and not by

increasing price tag.

PLACE

The Facts:-

Real is aimed at teenagers, young kids, wives, mother and family people.

Initially, when Real Fruit juices were launched, they were sparsely available.

Positioned as an up market brand, it was mostly available in mid-up market

outlets. The absence of small, convenient packs made Real less discrete in a

Premises outlets like college canteens and roadside stores. To make matters

worse in-transit damages to the packs during carton handling earned the brand

a bad name initially. But realising their mistake and after loosing a large chunk

of its market share to its competitor, the packing of Real was changed from

elopackes to tetrapacks, and the distribution channel was made more efficient.

The efficiency of distribution is such, that now Real fruit juices are available

every where.

FINDINGS:-

Real has done well to elaborate their consumer segment from kids, teenagers

to young adults and family people, surprisingly the sales has not risen

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exponentially. In today’s buyer’s market, if one brand is not available, the

second one would conveniently takes its place. Product differentiation and

eventually brand loyalty is continuously diminishing in the competitive market

of today. As a result, services especially as that of distribution and logistics

gains crucial importance. So, initially Real went off the shelves due to the

slack distribution network and then in August, after relaunching it again in

tetrapacks and making it available at every nook and corner, it has gained

momentum substantially.

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PROMOTION

THE FACTS:-

Real : ‘Do you believe in real love? There’s nothing artificial about it’

The essence of Real’s promotional work is ‘real’. To the up market housewife,

it is posed as a convenient pack full of nutritional value. Though considered as

a premium product, because of its price competitiveness, it is being pitched

against roadside juicewalls. Completely hygienic and ‘value for money’ are

the messages being sent across. Real, barring a few advertising spots has not

really advertised much. But all this is set to change this year with and

advertising budget of about Rs. 1 crore strategy is being worked out with door

to door sales and sample promos. To add variety Real now even comes in blue

packs, equipped with screw back-ups.

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FINDINGS:-

When a company faces stiff competition form the other. It is but impossible

for the company to disregard promotion. Regarding the promotional effort,

Real poses a sedate and premium image. The packaging in itself speaks a lot

about the consumers being targeted. Packaging plays a very important role in

promoting the product. Availability of Real fruit juice in blue tetrapacks with

screw back up have tremendously promoted the product and also point of

purchase how help in impulse buy decisions. To promote fruit juices a gift

pack of four 500ml packs (mango, orange, pineapple and mixed fruit juice) are

launched at a price of Rs. 105. Real has also launched a scheme of “Buy 2

orange packs of 250ml and save Rs. 8” have really promoted the product.

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THE MARKETING MIX

PRODUCT (HOMEMADE)

FACTS:-

The Homemade range of Pastes includes Lemoneez, Garlic, Ginger, Mustard,

Garlic ginger mix, Tamarind, Capsico Red & Capsico green.

The Pastes contain 85% Natural ingredient with additives artificial flavour,

colour or Preservatives.

Home mades has a self life of 6 months & does not need refrigeration at the

retail end Home mades are & in tetrapack form & available in 50% (T.P.),

200g & 250g.

FINDINGS:-

In terms of variety & flavour, Real offers a multi flavoured variety. Also

Indians are known for eating delicious foods. In provides artificial taste- a big

Plus for Homemade brand.

Bottle, Pack & Tetra pack were introduced by Homemade to ensure goods

quality.

PRICE

FINDING:-

Homemade, multiflavoured brands has Put its different flavours under

different price tags keeping in mind the preferred tastes of Indian Consumer.

As Homemade is a new concept and Dabur was Ist to launch Cooking Paste by

the name of Homemade, Prices were kept low as Garlic/ Ginger mix 50g

(T.P.) is priced at Rs. 5 Homemade 50g (T.P.) was given free with 250g Dabur

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Honey as Company believe that once consumers try the brands at slashed

price, The brand would gain Peak sales year after year.

PLACE

Homemade is aimed at House wives & mothers. Initially when Homemade

cooking Paste were launched, they were sparsely available Positioned as an

up Market, brand it was mostly available in mid up Mkt., brand it was mostly

available in mid up Mkt outlets. The Packaging of Homemade was changed

from simple pack to tetrapacks & the distribution channel was made more

efficient. The efficiency of distribution is such, that now Dabur Homemade

available everywhere.

FINDINGS:-

Homemade has done well the market the market despite the fact that it is a

new concept for the people to digest it. Homemade sales are increasing every

year and its distribution network becomes strong. Now it is available at every

nook & corner, it has gained momentum substantially.

PROMOTION

HOMEMADE:- Silwatte Ka Jaadu.

The essance of Homemade’s Promotional work is Natural ie, Convenient Pack

full of nutritional value. Prices were kept less as it is a new concept and Dabur

is the only Indian Company which is manufacturing cooking pastes.

Completely hygienic & Taste of nature are the messages being sent across. To

add Variety Homemade comes in bottle, Pack & Tetrapacks.

As in India People prefer to go for fresh things and there is easy availability of

these food products. As it is a new concept and to promote Homemade. T.P of

Rs. 5 were given free with other Dabur products from time to time.

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LIMITATIONS

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LIMITATIONS

1. The retailers distributors & wholesales visited by me were

helpful but initially they were reluctant to provide any information

such as their monthly sales of or personal information budgets were

not provided by them, so secondary data was seeked.

2. The secondary data collected might consist of manipulations, which

might have given bias in the result.

3. The lack of experience in preparing the project report.

4. Lack of experience in drafting the questionnaire.

5. Lack of knowledge on the part of the respondents regarding the subject

matter.

6. Survey results may be prone to sampling errors.

7. Lack of time as time to visit retailers, distributors & wholesalers is

done mainly in afternoon.

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RECOMMENDATION

AND

CONCLUSION

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RECOMMENDATIONS

1. As the products analysed belong to the cooking pastes and fruit juices

segment, stringent quality management is necessary at each and every

stage of production, packaging and distribution.

2. The message of the nutrition value and the quality

in hygiene aspects should be put across on

tetrapacks and bottles.

3. A common Indian is aware of soft drinks and even fruit drinks but least

of all of fruit juices, so what is therefore required is extensive

promotion for Real Juices.

4. Real fruit juices has opened the gates for vegetable juices, by

introducing-Tomato variants, other vegetable flavours such as that of

carrot can also be introduced- which will definitely appeal to health

and hygiene conscious consumers.

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CONCLUSIONS

The juice Industry is yet to capture the beverage market in full swing. Aerated

soft drink followed by fruit drinks dominate the market. The consumer’s

patriotic love for tea and coffee is unfared. Juices 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 Real has hit off ratherwell with

the masses. Real 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 Real 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 Real and Homemade brand .The

brands such as that of ‘Splash’ by Nestle, Safal with its ‘Guavaand Mango

flavour, Coca-Cola’s ‘Minute- made’ and also US food giantssDel Monte are

ready to hit the juice market very soon.

Homemade cooking Pastes has no major competition except an Australian

Product Tobasco. As Cooking Paste is a new product so people are not able

to digest it yet Dabur is getting 8 crores from Homemades in which Ginger

garlic mix accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .

As the strategies of the companies keeps on changing, be it in juice industry

or soft drink 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

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survey it was found that target Market of real Juice 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 Real brand so that customers of other Juice brand

should switch from other brand to Real brand .

As Homemade 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 marget should use the homemade and adopt

it in making daily food thereby increasing the market share of Homemades.

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BIBLIOGRAPHY

TITLE SOURCE

The Juices to go places Business India

Boom in the times of Business World

Gloom

Fruit of the Loom Corporate Dossier,

The Economic Times

Body Coolants Pioneer

Fruits of Labour Financial Express

A Masti Swing The Economic Times

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