dabur(net version)

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Marketing Strategy Of Dabur India Ltd

MARKETING STRATERY

Marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage.

Marketing strategy consists of the analysis, strategy development, and implementation

activities in: Developing a vision about the market(s) of interest to the organization, selecting

market target strategies, setting objectives, and developing, implementing, and managing the

marketing program positioning strategies designed to meet the value requirements of thecustomers in each market target.

Strategic marketing is a market-driven process of strategy development, taking into

account a constantly changing business environment and the need to deliver superior customer

value. The focus of strategic marketing is on organizational performance rather than a primary

concern about increasing sales. Marketing strategy seeks to deliver superior customer value by

combining the customer-influencing strategies of the business into a coordinated set of market-

driven actions. Strategic marketing links the organization with the environment and views

marketing as a responsibility of the entire business rather than a specialized function.

Because of marketings boundary orientation between the organization and its

customers, channel members, and competition, marketing processes are central to the business

strategy planning process. Strategic marketing provides the expertise for environmental

monitoring, for deciding what customer groups to serve, for guiding product specifications, and for

choosing which competitors to position against. Successfully integrating cross-functional

strategies is critical to providing superior customer value. Customer value requirements must be

transformed into product design and production guidelines. Success in achieving high-quality

goods and services require finding out which attributes of goods and service quality drive

customer value.

Marketing Strategy Process

The marketing strategy analysis, planning, implementation and management process is

described below. The strategic situation analysis considers market and competitor analysis,
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market segmentation, and continuous learning about markets. Designing marketing strategy

examines customer targeting and positioning strategies, marketing relationship strategies and

planning for new products. Marketing program development consists of product, distribution,

price, and promotion strategies designed and implemented to meet the value requirements of

targeted buyers. Strategy implementation and management consider organizational design and

marketing strategy implementation and control.

Stage 1: Strategic Situation Analysis

Marketing management uses the information provided by the situation analysis to guidethe design of a new strategy or change an existing strategy. The situation analysis is conducted

on a regular basis after the strategy is under way to evaluate strategy performance and identify

needed strategy changes.

Market Vision, Structure, and Analysis

Markets need to be defined so that buyers and competition can be analyzed. For a

market to exist there must be (1) people with particular needs and wants and one or more

products that can satisfy buyers needs,and (2) buyers willing and able to purchase a product

that satisfies their needs and wants. A product-market consists of a specific product (or line ofrelated products) that can satisfy a set of needs and wants for the people (or organizations)

willing and able to purchase it. The term product is used to indicate either a physical good or an

intangible service.

Analyzing product-markets and forecasting how they will change in the future are vital to

business and marketing planning. Decisions to enter new product-markets, how to serve existing

product-markets, and when to exist in unattractive product-markets are critical strategic choices.

The objective is to identify and describe the buyers, understand their preferences for products,

estimate the size and rate of growth of the market, and find out what companies and products are

competing in the market.

Evaluation of competitors strategies, strengths, limitations and plans is also a key aspect

of the situation analysis. It is important to identify both existing and potential competitors.

Competitor analysis includes evaluating each key competitor. The analyses highlight the

competitions important strengths and weaknesses. A key issue is trying to figure out what each

competitor is likely to do in future.


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Segmenting Markets

Market segmentation looks at the nature and extent of diversity of buyers needs and

wants in a market. It offers an opportunity for an organization to focus in business capabilities on

the requirements of one or more groups of buyers. The objective of segmentation is to examine

differences in needs and wants and to identify the segments (sub-groups) within the product-

market of interest. Each segment contains buyers with similar needs and wants for the product

category of interest to management. The segments are described using the various

characteristics of people, the reasons that they buy or use certain products, and their preferences

for certain brands of products. Likewise, segments of industrial product-markets may be formedaccording to the type of industry, the uses for the product, frequency of product purchase, and

various other factors.

Continuous Learning about Markets

One of the major realities of achieving business success today is the necessity of

understanding markets and competition. Sensing what is happening and is likely to occur in the

future is complicated by competitive threats that may exist beyond traditional industry boundaries.

For example, CD-ROMs compete with books.

Stage 2: Designing Market-Driven Strategies

The strategic situation analysis phase of the marketing strategy process identifies market

opportunities, defines market segments, evaluates competition, and assesses the organizations

strengths and weaknesses. Market sensing information plays a key role in designing marketing

strategy, which includes market targeting and positioning strategies, building marketing

relationships, and developing and introducing new products.

Market Targeting and Strategic Positioning


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Marketing advantage is influenced by several situational factors including industry

characteristics, type of firm (e.g., size), extent of differentiation in buyers needs, and the specific

competitive advantage(s) of the company designing the marketing strategy. The core issue is

deciding how, when, and where to compete, given a firms market and competitive environment.

The purpose of the marketing targeting strategyis to select the people (or organizations)

that management wishes to serve in the product-market. When buyers needs and wants vary,

the market target is usually one or more segments of the product-market. Once the segments are

identified and their relative importance to the firm determined, the targeting strategy is selected.

The objective is to find the best match between the value requirements of each segment and the

organizations distinctive capabilities. The targeting decision is the focal point of marketing

strategy since targeting guides the setting of objectives and developing a positioning strategy.

The options range from targeting most of the segments to targeting one or few segments in a

product-market. The targeting strategy may be influenced by the markets maturity , the diversity

of buyers needs and preferences, the firms size compared to competition, corporate resources

and priorities, and the volume of sales required to achieve favorable financial results. Deciding

the objectives for each market target spells out the results expected by management. Examples

of market target objectives are desired levels of sales, market share, customer retention, profit

contribution, and customer satisfaction. Marketing objectives may also be set for the entire

business unit and for specific marketing activities such as advertising.

The marketing program positioning strategy is the combination of product, value-chain,

price, and promotion strategies a firm uses to position itself against its key competitors in meeting

the needs and wants of the market target, the strategies and tactics used to gain a favorable

position are called the marketing mix or the marketing program.

Marketing Relationship Strategies

Marketing relationship partners may include end user customers, marketing channel

members, suppliers, competitor alliances, and internal teams. The driving force underlying these

relationships is that a company may enhance its ability to satisfy customers and cope with a

rapidly changing business environment through collaboration of the parties involved. Relationship

strategies gained new importance in the last decade as customers became more demanding and

competition became more intense. Building long-term relationships with customers and value-

chain partners offers companies a way to provide superior customer value. Although building

collaborative relationships may not always be the best course of action, this avenue for gaining a

competitive edge is increasing in popularity.

Strategic partnering has become an important strategic initiative for many well known

companies and brands. Many firms outsource the manufacturing of their products. Examples

include Motorola cell phones, Calvin Klein jeans, Pepsi beverages, and Nike footwear. Strong


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relationships with outsourcing partners are vital to the success of these powerful brands. The

trend of the 21stcentury is partnering rather than vertical integration.

Planning for New Products

New products are needed to replace old products because of declining sales and profits.Strategies for developing and positioning new market entries involve all functions of the business.

Closely coordinated new-product planning is essential to satisfy customer requirements and

produce products with high quality at competitive prices. New-product decisions include finding

and evaluating ideas, selecting the most promising for development, designing the products,

developing marketing programs, use and market testing the products, and introducing them to the

market.

The new-product planning process starts by identifying gaps in customer satisfaction.

The differences between existing product attributes and those desired by customers offer

opportunities for new and improved products.

Stage 3: Market-Driven Program Development

Market targeting and positioning strategies for new and existing products guide the

choice of strategies for the marketing program components. Product, distribution, price, and

promotion strategies are combined to form the positioning strategy selected for each market

target.

The marketing program (mix) strategies implement the positioning strategy. The objective

is to achieve favorable positioning while allocating financial, human, and production resources to

markets, customers, and products as effectively and efficiently as possible.

Strategic Brand Management

Products (goods and services) often are the focal point of positioning strategy,

particularly when companies or business adopt organizational approaches emphasizing product

or brand management. Product strategy includes: (1) developing plans for new products, (2)

managing programs for successful products, and (3) deciding what to do about problem products(e.g., reduce costs or improve the product). Strategic brand management consists of building

brand value (equity) and managing the organizations portfolio for overall performance.

Value-Chain, Price, and Promotion Strategies

One of the major issues in managing program is deciding how to integrate the

components of the mix. Product, distribution, price, and promotion strategies are shaped into a


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coordinated plan of action. Each component helps to influence buyers in their positioning of

products. If the activities of these mix components are not coordinated, the actions may conflict

and resources may be wasted. For example, if the advertising messages for a companys brand

stress quality and performance, but salesperson emphasize low price, buyers will be confused

and brand damage may occur.

Market target buyers may be contacted on a direct basis using the firms sales force or by

direct marketing contact (e.g., Internet), or instead, through a value-added chain (distribution

channel) of marketing intermediaries (e.g., wholesalers, retailers, or dealers). Distribution

channels are often used in linking procedures with end user household and business markets.

Decisions that need to be made include the type of channel organization to use, the extent of

channel management performed by the firm, and the intensity of distribution appropriate for the

product or service. The choice of distribution channels influences buyers positioning of the brand.

Price also plays an important role in positioning a product or service. Customer reaction

to alternative prices, the cost of the product, the prices of the competition and various legal and

ethical factors establish the extent of flexibility management has in setting prices. Price strategy

involves choosing the role of price in the positioning strategy, including the desired positioning of

the product or brand as well as the margins necessary to satisfy and motivate distribution channel

participants. Price may be used as an active (visible) component of marketing strategy, or,

instead, marketing emphasis may be on other marketing mix components (e.g., product quality).

Advertising, sales promotion, the sales force, direct marketing, and public relations help

the organization to communicate with its customers, value-chain partners, the public, and other

target audiences. These activities make up the promotion strategy, which performs an essential

role in communicating the positioning strategy to buyers and other relevant influences. Promotion

informs, reminds, and persuades buyers and others who influence the purchasing process.

Stage 4: Implementing and Managing Market-Driven Strategy

Selecting customers to target and the positioning strategy for each target moves

marketing strategy development to the action stage. This stage considers designing the

marketing organization and implementing and managing the strategy.

Designing Effective Market-Driven Organizations

An effective organization design matches people and work responsibilities in a way that is

best for accomplishing the firms marketing strategy. Deciding how to assemble people into

organizational units and assign responsibility to the various mix components that make up the

marketing strategy are important influences on performance. Organizational structures and


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processes must be matched to the business and marketing strategies that are developed and

implemented. Organizational design needs to be evaluated on a regular basis to assess its

adequacy and to identify necessary changes.

Strategy Implementation and Control

Marketing strategy implementation and control consist of: (1) preparing the marketing

plan and budget; (2) implementing the plan; and (3) using the plan in managing and controlling

the strategy on an ongoing basis. The marketing plan includes details concerning targeting,

positioning, and marketing mix activities. The plan spells out what is going to happen over the

planning period, who is responsible, how much it will cost, and the expected results (e.g., sales

forecasts).

The marketing plan includes action guidelines for the activities to be implemented, who

does what, the dates and location of implementation, and how implementation will be

accomplished. Several factors contribute to implementation effectiveness including the skills andcommitment of the people involved, organizational design, incentives, and the effectiveness of

communication within the organization and externally.

Marketing strategy is an ongoing process of making decisions, implementing them, and

tracking their effectiveness over time. In terms of its time requirements, strategic evaluation is far

more demanding than planning. Evaluation and control are concerned with tracking performance

and, when necessary, altering plans to keep performance on track. Evaluation also includes

looking for new opportunities and potential threats in the future. It is the concerning link in the

strategic marketing planning process. By serving as both the last stage and the first stage

(evaluation before taking action) in the planning process, strategic evaluation assures that

strategy is an ongoing activity.

CHAPTER .2

AIMS AND OBJECTIVES


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Aims and Objectives:

To understand the demand pattern of Dabur products in the market.

To know the amount of household income spent on the consumption of FMCG products of

Dabur.

To understand the image of the products in the eyes of the consumers.

To analysis market petition strategy of Dabur in the market.

To study the present marketing strategy of Dabur IndiaLimited.

To study the effectiveness of marketing strategy Of Dabur India Limited.

To know about the portfolio of Dabur India Limited.

CHAPTER .3

DABUR INDIA LTD.


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INTRODUCTION TO DABUR

Dabur is derived from the word Da for Daktar or Doctor and bur from Burman.

Dabur India Ltdis one of Indias leading FMCG Companies withRevenues of about

US$750 Million (over Rs 3416 Crore) & Market Capitalization of over US$3.5 Billion (over Rs16,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today

Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company .

Dabur India is also a world leader in Ayurveda with a portfolio of over 250

Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with

distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for

premium personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for

fairness bleaches and skin care products.

Dabur today operates in key consumer products categories like Hair Care, Oral Care,

Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network,

covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are

today available in over 60 countries across the globe . Its brands are highly popular in the Middle

East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stand at

over Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had started operations in

1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of

Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned

consumer goods companies with the largest herbal and natural product portfolio in the world.

Overall, Dabur has successfully transformed itself from being a family-run business to become aprofessionally 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.

COMPANY PROFILE -

Type -


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Public (NSE, BSE)

Founded -

1884

Headquarters -

Ghaziabad

Key people -

V. C. Burman

Business -

Daburs product range encompasses health care, personal care, ayurvedic specialties

and food segments.

Brands -

Well-known brands include Amla, Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care

and Pudin Hara.

Location -

Dabur has been marketing its products in more than 50 countries all over the world. The

company has offices and representatives in Europe, America and Africa. Manufacturing facilities

are spread across three overseas locations.

Revenue

Turnover of approx Rs 3417,1 Crore (FY-2010) & Market Capitalization of Rs. 15500

Crore.


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Official Website -

www.dabur.com

MISSION:

To maximize shareholders value by offering superior quality nature based products that

contributes in improving consumers life in Personal care Health Care and foods.

VISION:

HEALTH AND WELL BEING OF EVERY HOUSEHOULD

Dabur is a company with a set of established business values, which direct it's

functioning as well as all its operations. The guiding forces for Dabur are the words of its founder,

Dr.S. K. Burman,

What is that life worth that can not give comfort to others.

The Company offers its customers, the products to suit their needs and give them good

values for money. The company is committed to follow the ethical practices in doing business. At

Dabur, nature acts as not only the source of raw materials but also an inspiration and the

company is committed to product the ecological balance.

VISION 2011

After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur

has launched another plan for 2011. The main objectives are:

Doubling of the sales figure from 2006


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The new plan will focus on expansion, acquisition and innovation. Although Daburs

international business has done wellgrowing by almost 29 per cent to Rs.292 crore in

2006-07, plans are to increase it by leaps and bounds.

Growth will be achieved through international business, homecare, healthcare and foods.

Southern markets will remain as a focus area to increase its revenue share to 15 per

cent.

With smoothly sailing through its previous plans, this vision seems possible. Time and again,

Dabur has made decisions that have led to its present position. However, if Dabur could be more

aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year

performance table from Daburs website.

PRINCIPLES

OWNERSHIP:

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

needs.

PASSION FOR WINNING:

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

PEOPLE DEVELOPMENT:

People are our most important asset. We add value through result- driven training and we

encourage rewards and excellence.

CONSUMER FOCUS:

We have superior understanding of consumer needs and develop products to fulfill their

demands.

INNOVATION:

Continuous innovation in products and processes and is the base of our success.


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1956: Dabur buys its first computer. Accounts and stock keeping are one of the first operations to

be computerized.

1970: Dabur expands its personal care portfolio by adding oral care products. Dabur Lal Dant

Manjan is launched and captures the Indian rural market.

1972: Dabur shifts base to Delhi from Calcutta. Starts production

From a hired manufacturing facility at Faridabad.

1978: Dabur launches the Hajmola tablets. This is the first time that a classical Ayurvedic

medicine is branded from Shudhabardhak bati to Hajmola tablets.

1979: The Dabur Research Foundation (DRF), an independent

Company is set up to spearhead Dabur's multi-faceted research.

Commercial production starts at Sahibabad. This is one of the largest and most modern

production facilities for Ayurvedic medicines in India at this time.

1984: The Dabur brand turns 100 but is still young enough to

Experiment with new offerings in the market.

1986: Dabur becomes a public Limited company through reverse

merger with Vidogum Limited, and is re-christened Dabur India

Limited.

1989: Hajmola Candy is launched and captures the imagination of

Children and establishes a large market share.

1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing and marketing

confectionery items such as bubble gums in India.

1993: Dabur set up the oncology formulation plant at Baddi,

Himachal Pradesh.

1994: Dabur India Limited comes out with its first public issued at a premium of Rs.85 per share.

The issue is subscribed over 21 times.


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1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Pacitaxel).

Dabur becomes only the second company in the world to launch this product. The Dabur

Research Foundation develops the unique eco-friendly process of extracting the drug from the

leaves of the Asian Yew Tree.

1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for

cheese other dairy products.

1996: Dabur launches Real fruit juices, which heralds the company's entry into the processed

food market.

1997: The foods division is created, compromising of real fruit juices and Homemade cooking

paste to form the core of this division's product portfolio.

1998: Project STARS (Strive to Achieve Record Successes) is Initiated by the company to

achieve accelerated growth in the coming years. The scope of this project is strategic, structural

and operational changes to enables efficiencies and improves growth rates.

1998: The Burman family hands over the reins of the company to a professional, Mr. Ninu

Khanna joins Dabur, as the Chief Executive Officer.

1999-2000: Dabur achieves the Rs.1000 crores turnover mark.

2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple active, orange

active, homemade pappad, Vatika- an- anti-dandruff shampoo.

2002: New launches homemade coconut milk (in south), Tang,

Tomato puree, Vatika light.

2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per cent. Turnover of

FMCG reaches to Rs l048.5 crores, which shows a profit of Rs. 72 crores. Turnover of

pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.

2005:Dabur Acquires Balsara in Rs -143 crore in all-cash deal.

Dabur Announces Bonus after 12years.

2007:Dabur Crosses $2 Bil of market capitalalization

2008:Acquires Fem care Pharma a leading player in the womens skin care market.

Dabur (Company History) -


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Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he prepared

Ayurvedic medicines to treat diseases like malaria, plague and cholera that had no cure during

that period. It was his dedication, commitment and empathy that made Dabur a renowned name

among the masses. And today, after more than 120 years, Dabur is known for its trustworthiness

more than anything else.

During this passage of time, Dabur went through several structural and strategic changes

to maintain its market strength. The real mass production started in 1896. Early 1900s saw

Dabur emerge as the first company to provide health care through scientifically tested methods. It

achieved significant improvements after setting up Research and Development centers and

manufacturing automation. The launch of Daburs Amla hair oil and Chyawanprash was a boon to

the expanding business. To keep up with the times, Dabur computerized its operations in 1957.

ItsDant Manjan and digestive tablets were widely accepted as well.

However with a large product portfolio in the market, Dabur had to maintain operational

efficiency. To make sure it adjusted to the business environment it became a public limited

company in 1986 followed by diversification in Spain in 1992. A major change came when Dabur

came up with its IPO in 1994. Because of its position, Daburs issue was 21 times

oversubscribed. Dabur further divided its business into three separate groups:

Health Care Products Division

Family Products Division

Dabur Ayurvedic Specialties Limited

In 1998, for the first time in the history of Dabur, a non-family member took charge. Dabur

handed over the operations to professionals. Successful implementation of procedures, timely

changes and maintaining its essence, Dabur achieved its highest-ever sales figure of Rs 1166.5

crore in 2000-01.

As FMCG sector was struggling with the slow growth in the Indian economy, Dabur decided

to take numerous strategic initiatives, reorganize operations and improvise on its brand

architecture beginning 2002. It decided to concentrate its marketing efforts on Dabur, Vatika,

Anmol, Real and Hajmola to strengthen their brand equity, create differentiation and emerge as a

pure FMCG player recognized as a herbal brand. This was chosen after a study with Accenture,

which revealed that Dabur was mainly perceived as a Herbal brand and connected more with the

age group above 35.

Also, larger retailers were making their foray into the FMCG market. Apart from HLL, P&G,

Marico and Himalya, ITC was also posing a challenge. The supply chain of Dabur was becoming

complex because of the large array of products. Southern markets share in the sales figure wasnegligible. These factors posed a threat to Dabur and hence small changes were not enough.

MANAGEMENT & OWNERSHIP STRUCTURE

Board of Directors


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Dabur has an illustrious Board of Directors who are committed to take the company onto

newer levels of human endeavour in the service of mankind. The Board comprises of:

Chairman

Dr. Anand Burman

Vice-Chairman

Mr. Amit Burman

Whole Time Directors

Mr. P.D. Narang, Mr. Sunil Duggal, Mr.Pradeep Burman

Non Whole Time Promoters, Directors

Mr. Mohit Burman

Independent Directors

Maharaja Gaj Singh Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan

The C.E.O

Sunil Duggal

(Chief Executive Officer)

Dabur India Limited

CHAPTER .4


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SWOT ANALYSIS

STRENGTHS

Century Old Company Established Brand Ayurvedic/ herbal Product line Leader in Herbal Digestives where the product has 90% of the market share Core knowledge of Ayurveda as competitive advantage Strong Brand Image Strong Distribution Network Extensive Supply Chain R & D - a key Strength

WEAKNESS

Seasonal Demand (like Chyawanprash in winter and Vatika not in winter)

Profitability is uneven across product line

Low Penetration (Chyawanprash)

Limited differentiation (Vatika)

Unbranded players account for 2/3rdof the total market (Vatika)

OPPORTUNITIES


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Extend Vatika brand to new categories like Skin Care and body wash segments

Market Development

Export Opportunities

Innovation

Increasing income level of the middle class

Creating additional consumption pattern

THREATS

Existing Competition like Himami, Baidyanth and Zandu for Dabur Chyawanprash and Marico,

Keo Karpin, HLL and Bajaj for Vatika Hair Oil)

New Entrants

Other fields of medicine- Allopathic and Homeopathic

CHAPTER .4

COMPETITORS


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Given Below is a Segment Wise Competitor list:

Category of products

Daburs Share

Main Competitors

Fruit Juice 58% Real and Active Tropicana.

Fruit Drinks (coolers) 1% Coolers Frooti, Mazza, and Slice.

Hair oil Coconut Base 6.4% Vatika HUL, Marico.

Shampoo Vatika 7.1% HUL and P&G.

Hair Care (overall) 27% HUL, P&G and Himalaya.

Chyawanprash 64% Himami, Zandu and Himalaya

Honey 40% Himami, Hamdard and players.


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Digestive 37% Paras and local players.

CHAPTER .6

PRODUCTS

LOCATIONS OF OPERATIONS ALL UNITS OF PRODUCTION ALL JOINT VENTURE PRODUCTS SUBSIDIARIES ALL DABUR PRODUCTS

LOCATION OF OPERATIONS

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

Regd. Office: Asaf Ali Road, New Delhi

Corporate office: Kaushambi, Ghaziabad (U.P.)


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Sales & Marketing: New Delhi

OFFICES:

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

Ahmadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hyderabad (A.P.),

Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam), Kathmandu

(Nepal), Russia, U.K.

FACTORY:

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

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

C&Fa:

Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun

(U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta(West Bengal), Jaipur

(Rajasthan), Ahmadabad (Gujarat), lndore (M.P.) Raipur(M.P.), Bhubaneswar (Orissa), Cuttak

(Orissa), Mumbai (Maharashtra), Hyderabad (A.P.), Chennai (TamilNadu), Bangalore

(Karnataka), Cochin (Kerela).

MANUACTURING UNITS OF DABUR:

Dabur India Limited has 12 manufacturing plants in India,


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Nepal and Egypt.

Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The Key product line of this

unit includes Asavs, Hajmola, Hingoli, Oncology medicines, Dabur Amla hair oil, Chyawanprashand Ashokarisht.The unit operated on these shifts as well as a general shift, with product lines

running for one, two or three shifts according to the market demand and supply chain

requirell1ents.

Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet

Bottles.

Baddi unit 1: The most modern plant for manufacturing ayurvedic

Medicines and honey, this unit was built following stringent guideline for pharmaceutical units.

Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur Chyawanprash, this unit

also boasts of the most modern processing and packaging unit for the medicated oil

Asavrishthas.

Baddi Injectibles: This unit manufactures Oncologicals, and is certified by OGYI of Hungary and

South Africa.

Alwar: This unit manufactures food and print grade Natural gums,

Psyllium Husk and Ayurvedic Veterinary products.

Narendrapur: One of Dabur oldest plant. It produces Ayurvedic

medicines and Honey.


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Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture oncology bulk

drugs of critical importance.

Katni: Set up in the heart of Amla producing belt of India. This unit

manufactures Amla pishi, an essential ingredient in Dabur Chyawanprash.

Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important besides

Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic Medicines, Oral

Care and Hair Care Products, Honey and Fruit Juices. It also has the facility to process leaves of

the Asian Yew Tree to extract Paclitaxel, an important part of all anti-cancer products.

Egypt: This part was established to serve Saudi Arabia and the fast growing African market. It

manufactures Hair and Skin Care and Food products.

JOINT VENTURES:

Dabur International Limited: Dabur has also collaborated with Bongrain of France for the

manufacture and marketing of speciality cheese and other Dairy Products. This joint venture

company has already made its presence felt in the Indian cheese market through the launch of

processed cheese under the brand name Lebon, and a specialty cheese under the brand name

Delicieux.

SUBSIDIARIES:

Dabur has six subsidiary units, which come under the umbrella of the Dabur India Organisation.

These are:


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Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India Limited, is

spearheading Dabur's foray into food processing industry. The company, set up in April 1999,is

marketing a range of fruits juices under the brand name Real, Homemade Cooking Paste and

Sauces and Lemoneez -- lemon juice. Dabur was the first company in India to introduce fruitjuices in packaged form without any artificial additive. Real is today the market leader in this

category with more than 50 per cent market share. Homemade cooking paste is the only national

brand in this category. Lemoneez is the only product in its category available in unique drop and

trickle pack and uniquely shaped tabletop pack.

Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for Dabur

group. The company is today the leading exporter of Nepal and the third largest and most modern

manufacturing base for Dabur. Dabur Nepal is today involved in promoting cultivation of herbs

and apiculture activities inNepal. The Company has set up state of the art greenhouse at Banepa

for developing sampling for 20 medicinal plants. Dabur Nepal has also set up an Apiculture center

for promoting bee-keeping activity in Nepal and developing queen bee colonies for exports.

Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base set up a

couple of years back to cater to the demands of Middle East and African market is producing Hair

Care, Skin Care Products and foods.

Dabur oncology Place: Set up recently in UK, this subsidiary of Dabur India Limited will bemanufacturing anti-cancer formulations for European market. The company is in the process of

setting up manufacturing base near London and is expected to start operation from year 2001.

Dabur Research Foundation (DRF): Incorporated in 1979, is a

Premier research organisation recognized by Department of Scientific and Industrial Research,

Government of India. It is situated at Sahibabad, Ghaziabad, Uttar Pradesh. DRF today is known

for its path breaking research in the field of health care and personal care. The foundation is on

the forefront of oncology research and is in the process of developing many new molecules tofight with a dreaded disease like Cancer. In fact DRF was the first organisation in the world to

develop a process for extraction of Paclitaxel, a drug, for cancer without harming its source tree.

This process has now become a universal one. Herbal health care is an area where Dabur

Research Foundation has made immense contribution by doing research and development work

using modern pharmaceutical protocols.


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PRODUCTS

Given below is the product portfolio of Dabur (Consumer Care Division 2010):

HAIR CARE

Hair oil

Dabur Amla,

Dabur Amla Flower magic,

Dabur Vatika coconut,

Vatika Almond.

Dabur Anmol

Shampoo

Smooth & Silky,

Root Strengthening and Black Shine shampoo,

Vatika Dandruff Control,

Dabur Total Protect.


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Conditioner

Vatika Smooth & Silky Conditioner,

Vatika Root Strengthening Conditioner

ORAL CARE

Dabur RED Paste,

Meswak,

Promise,

Babool Mint Fresh,

Babool

Dabur Lal Dant Manjan

HEALTH SUPPLEMENTS

Dabur Chyawanprash

Dabur ChyawanPrakash -Orange an Mango flavors available

Dabur Chyawan Junior. (Chocolate-flavored)

Dabur Honey, the purest branded Honey.

Dabur Glucose

DIGESTIVE

Hajmola

(Keep your digestion toned up with Dabur's range of Digestives tablets and

candies.)


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SKIN CARE

Gulabari Gulabari Rose water Gulabari Face Freshener

Gulabari Moisturising Cream Gulabari Moisturising Lotion

Uveda Range Fairness Cream Moisturising Face wash Clarifying Face wash 2 in 1 Moisturiser

FEM Fem Pink Bleach Fem Blue Bleach Fem Gold Bleach Fem Herbal Bleach

OXY Bleach SAKA Bleach for men Fem Hair Removing Cream Fem Liquid Hand Wash

FOOD PRODUCTS

Real Active Juice Real Juice (12 delicious variant)

Real Burrst Hommade Lemoneez Capsico Red Pepper Sauce


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HOME CARE

Surface Cleaner Dazzil SaniFresh

Odomos (Mosquito Repellent) Odomos Cream Odomos Lotion

Air Care Odonil Room Freshener Odonil Block


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Dish wash Odopic Dish wash Odopic Dish washing powder

Consumer Health - Ethical

Stresscom

Antistress immune modulator

TrifgolIsabgol based natural fibre laxative.

Broncorid Madhuvaani

For the management of stable asthma and breathlessness.

LipistatHypolipidaemic and Cardioprotective.

Rheumatil gel Rheumatil oil

Quickly absorbed and relieves joint pain

MenstaComplete Control 30 days a month.
http://www.dabur.com/Products-Ayurvedic%20Specialities-Stresscomhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Stresscomhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Trifgolhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Trifgolhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Broncoridhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Broncoridhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Broncoridhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Trifgolhttp://www.dabur.com/Products-Ayurvedic%20Specialities-Stresscom


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CONSUMER HEALTH - OTC

Gastro-Intestinal Dabur Pudin Hara

Cough & Cold Dabur's Honitus Cough Syrup

Rejuvenation Shilajit Gold


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Womens Health

Dabur Active Blood Purifier

Memory Enchancer Dabur Shankha Pushpi

Medicated Oils Dabur Badam Oil

Baby Care Dabur Lal Tail Dabur Janma Ghunti Dabur Gripe Water


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Rubs & Balms

Dabur Balm Strong Dabur Balm Double Action

CHAPTER .7

PRICE

PRICE

Price is normally expressed in monetary terms. It is worth of a product or service in monetary

terms. Price is the value which a buyer passes on to the seller in lieu of the product or service

provided. Price is a crucial determinant of the fact whether the exchange between the buyer and

seller should materialize or not. While pricing the products three main factors should be kept in

mind -:

1. Cost

2. Competition

3. consumer demand


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Pricing Strategies of Dabur

Dabur has stepped up the pace of new product launches and is investing ad spend and

marketing. The entire product portfolio is also tweaked to include premium offerings such as more

variants under almost every category, like Dabur Vatika Hair Oil is available in 3 different

versions.

Dabur is today seen as far more proactive in the market. Dabur is now an external oriented

company. Across the whole organization the company have one definition of winning, and that

means not just growing, but growing completely. Over the last two years, Dabur has maintained

its operating margins through judicious price hikes across products and reduction in pack sizes.

The three main factors affecting the pricing strategies have been discussed below -:

I.COST

One of the most important factor to take care while pricing is the cost costs set the floor for pricing

decisions. There are two types of cost variable cost and fixed cost. It is important that the price

should recover all costs including a fair return for undertaking the marketing effort and risk.

II.COMPETITION

Competition is another important consideration while pricing. When a firm does not face any

competition it can enjoy complete freedom in fixing its price. But when there are competitors

selling the same or similar products, the pricing freedom is considerably reduced. Its price must

fall in line with the competitors. Similarly Dabur India Limited also has many competitors. But

Daburs top selected competitors are:-

1.

Hindustan Unilever Limited2. Proctor and Gamble

3. Pepsi co.

4. Colgate Palmolive

5. Godrej Industries

6. Marico Ltd. etc.

III.CONSUMER DEMAND

Dabur learned that the majority of Indian population tends to go towards the Indianised naturaland herbal products thus they made it their USP. Dabur is efficiently leading the market with this

product range, providing the customers with special products easily.


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CHAPTER .8

PLACE AND PROMOTION

PLACE:


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Place in the context of marketing mix refers to a set of decisions that need to be taken in

order to make the products available to the customers for purchase and consumption. Making the

products available to the customers require development of channels of distribution and physical

distribution of products.

CHANNELS OF DISTRIBUTION

A channel of distribution refers to the path taken by the goods in their movement to the

customers. For instance, the toothpaste we use is manufactured in the factory of a company

Dabur. But before it reaches us it passes through the hands of many middlemen who help it come

to you in right time, at right place and in right quantity.

Daburs distribution network is recognized as one of its key strengths. Its focus is not only

to enable easy access to our brands, but also to touch consumers with a three-way convergence

- of product availability, brand communication, and higher levels of brand experience.

A Diagram explaining the channels of Distribution is given below

The diagram shows channel of distribution of dabur foods, here first the products are

manufactured and from Manufacturing plants the packed goods are supplied to Clearing And

Forwarding Agents(C&FA) and from here the goods are then further supplied to number of

Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty

of Stockiest to take orders from retailers and then supply the goods to them, this work is generally

done by stockiest salesman through ready stock or by taking orders first and then placing the

order. From here the goods finally reaches to Customers. Customer purchases the product from

retailers.


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Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A Stockist B Stockist C

Retailers Retailers Retailers Retailers Retailers Retailers

C O N S U M E R S

Supply Chain Management


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Supply chain management starts before physical distribution: it involves procuring the

right inputs (raw materials, components and capital equipment), converting them into finished

products and dispatching them to the final destinations. The supply chain perspective can help

identify superior suppliers and distributors and help them improve productivity, which ultimately

brings down the companys costs.

A broader view sees a company at the center of a value network that includes its

suppliers, its immediate customers and their end customers. The value network includes valued

relations with others such as university researchers, government approval agencies and so on.

MANUFACTURING PLANT

Dabur Foods has Number of products in its product line but its main area of interest or

the product on which they concentrate the most is Real Juice & Coolers.

Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured

and tested.

PROCUREMENT & TRANSPORT

Getting the raw material and packaging material requirement from the production unit in

charge Constant updates on the procurement of materials and transport details

Production details and ingredient content information from the different personnel and

coordinating this activity

PACKAGING

Approval and coordination of the supply of packaging material to the production unit

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and forwarding

agents. Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so

company has nothing to do in building the relationship with them. Here C&FA keep or stock the goods with them. They charge Dabur for stocking the good and even Dabur dont mind doing so as it is a

measure of cost cutting as well as there is no need for gowdowns and maintenance.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to them as per

their order. Stockiest has some sales men working under him, they are known as stockiest sales

man. Their work is to place the products in the market and take order from retailers and

then supply goods to them.


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Sales man either take ready stock with them or they first take orders and then supply

goods later on. There is a beat which is a schedule route of sales man, means sales man has to daily

cover the route as mention in the beat. Merchandising, making products visible, pasting posters, putting banners, and seeing

that goods are properly placed in the retail outlets is also the duty of stockiest sales man. Companies sales officer keeps a check on the stockiest and monthly report is also

prepared which is further analyzed by SM & ZSM.

RETAILERS

Retailers are backbone of the company as they are the one who can take the product on

new heights or can bring it down to toes.

Stockiest supplies goods to retailers and tries Persuading retailers to give the brand

special displays (using merchandising tools) to get affective brand presence, and

arranging it in more noticeable manner. Margin of retailers is always higher than stockiest.

Retailers are the ones who have direct contact with the customers. Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail

outlets making its product available to the consumers across the country at ease.

PROMOTION

Once the product has been manufactured, priced rightly and is distributed, the next task

of the marketer is to inform potential customer about the product and persuade them to buy

the same. The promotion element of marketing mix is concerned with activities that are

undertaken to communicate with both customers and participants in the channel of

distribution such that sales goals are realized. There are different promotional activities like-:

Advertising, Sales promotion, trade promotion, personal selling etc. but one of the mostconvenient and effective one that most of the industries uses is the Advertising and Sales

Promotion.

Advertising

Advertising is a form of communication that typically attempts to persuade potential

customers to purchase or to consume more of a particular brand of product or service. Many

advertisements are designed to generate increased consumption of those products and

services through the creation and reinforcement of "brand image" and "brand loyalty". For

these purposes, advertisements sometimes embed their persuasive message with factual

information. Every major medium is used to deliver these messages, including television,radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising

is often placed by an advertising agency on behalf of a company or other organization.

Dabur has created the huge brand image and a vast product following by associating

mega-names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc.

Dabur invested Rs. 150 crore just on the advertising of Real Fruit Juice and Real Active.


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So far the company has been successful in this mission as the people now know the brand

and ask for its products by name.

Sales promotion

An activity designed to boost the sales of a product or service. It may include anadvertising campaign, increased PR activity, a free-sample campaign, offering free gifts or

trading stamps, arranging demonstrations or exhibitions, setting up competitions with

attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal

letters on other methods.

In marketing, sales promotion is one of the four aspects of promotion. (The other three

parts of the promotional mix are advertising, personal selling, and publicity/public relations.)

Sales promotions are non-personal promotional efforts that are designed to have an

immediate impact on sales.

Sales promotion involves short-term incentives to encourage buyers to purchase a

product. It's aim is to encourage immediate purchase of a product. If used too often however,

sales promotion can create a situation where consumers will not buy unless there is a bonus

offer. This will result in loss of profit for the company.

More than any other element of the promotional mix, sales promotion is about action. It

is about stimulating customers to buy a product. It is not designed to be informative a role

which advertising is much better suited to.

Sales promotion can be directed at:-

The ultimate consumer (a pull strategy encouraging purchase)

The distribution channel (a push strategy encouraging the channels to stock the product).

This is usually known as selling into the trade

SALES PROMOTIONAL TOOLS OF DABUR FOODS

Price promotions

Coupons Gift with purchase Competitions and prizes Money refunds Point-of-sale displays Free samples Contest /demos Festival Sales


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Retailer coupons Multi-packs Special price for twos

Allowances for additional shelf space Merchandising Sales contest Incentives Awards & prizes Premium gifts Sales Meetings Samples/product sampling

Contests & Sweepstakes

Exchange Offers/buyback

Refund / Rebate Price / Bonus Packs

PROMOTIONAL SCHEMES USED FOR STOCKIESTS

Encourage stockiest to participate in displays and sales contests.

Higher Margins:Tries to give higher margins to stockiest so that they dont loose interest in the

product and can earn good profits after meeting all the expenses.

Sales Contests: Sales contest are held annually and whichever stockiest has the best sales

record a prize is given to him, like free holiday to the family etc.

Allowances: Special allowances are given to both stockiest and stockiest sales man if they

achieve their monthly target.

Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some

money on the promotional schemes, like conducting a sampling activity.

Danglers and Posters: Company gives posters and danglers to stockiest which are further

pasted and distributed by stockiest sales man.

Training:Special Training is given to Stockiest Sales Man, a training workshop is organized by

the company for stockiest sales man so that they dont face any problem while placing their

products and taking orders from retailers.

Annual Gathering: All the stockiest meet under one roof at least once a year and then the

stockiest whose performance was best in term of sales is awarded.

Fun Trip:A zone wise fully paid fun trip is organized by the company for all the stockiest once

a year.


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Gathering While Launch of New Products: All the stockiest and their sales man gather when

there is a launch of a new product. Company gives free samples & gifts to stockiest and

their sales man.

Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.

Free danglers and posters for publicity.

Buyback: Dabur foods have a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS

Trade allowances:Short term incentives are offered to induce a retailer to stock up more

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

products of dabur.

Trade contest:A contest to reward retailers those sells the most product of dabur foods

and after a specific period they are rewarded. Point-of-purchase displays:Extra sales tools given to retailers by dabur to boost sales,

like danglers, posters, banners etc helps in promoting sales. Push money: Also known as "spiffs". An extra commission paid to retail employees to

push products. This kind of practice dabur hardly follows. Free samples: Dabur foods gives free samples are given to retailers so that they can try

that product if the product is new, or gives some discounts. Demos: Special demos are given to retailers and even some stands, fridge are given by

retailers.

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

Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer

buys and sells a specific amount of products. Higher Margins: Retailer has the highest margins and dabur foods also have the same

criteria, and retailer can further sell the dabur product to consumer at discount keeping

his margin safe. Allowances for additional shelf space: Company as such does not pay anything to retailer

but gives some additional benefits for giving them shelf space which is visible to

customer when ever they enter the shop. Merchandising Allowances: Allowances are given to Stockiest sales man for

merchandising dabur products. When ever the Stockiest sales man goes to take ordersthen he also merchandises dabur products.

Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free

with that. Trade Allowance: Dabur comes with different types of trade discounts from time to time,

like sometime price discounts, sometimes gifts etc. Free goods: Dabur gives free goods on the purchase of specific number of goods.


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Cash Rebate:Generally cash rebate is given by stockiest if retailer makes the payment in

cash at the time of purchase. Product sampling: Dabur organizes sampling activities for its products which are new,

these activities are generally at the place where footfall is very high. Displays: Dabur tries to give special displays to the retailers, so that they can display their

products on that. Point-of-Purchase Material: POP material is available in the form of stickers, banners,

displays, posters, signs, streamers, etc. put up inside and outside the stores & other

possible purchase locations.


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PROMOTIONAL SCHEMES USED FOR CONSUMERS

Price deal:A temporary reduction in the price is given to consumer during some festival session

by dabur foods.

Price-pack deal:The packaging offers a consumer a certain percentage more of the product forthe same price (for example, 25 percent extra).

Coupons: Dabur foods gives coupons during different sampling activities to consumers and it

have become a standard mechanism for sales promotions.

Loss leader: Dabur foods temporarily reduce the price of its popular product in order to

stimulate other profitable sales.

On-shelf coupons:Coupons are present at the shelf where the product is available.

Rebates:Consumers are offered money back, rebate at different point of time.

Contests/sweepstakes/games:if a customer wins some game or contest at the time of sampling

activities then they are given a discount coupon of products of dabur foods.

Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur

keeps a special check on the displays and merchandising of dabur products.

Sampling Activities: Dabur organizes different sampling actives at different retail outlets.

Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.

Money Refunds: Customer can claim for refund of money if they face some problem with the

product

Contest /demos: There are different contests where customers play games and win contests.

Festival Sales: Dabur foods come out with some special offers during festival seasons like buy

one get one free.

Multi-packs: Dabur foods has some products in multiple packaging which are comparatively

priced lower to the products sold in a single pack.

Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier

for customers to know about product line and choose the best out of that.

Customer feedback: dabur foods consider its customer most important and in case of any

complaint by customer the foods department will leave all its important work and will contact

the customer.


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Contact points: Customer can contact dabur foods by writing the mail or letter on the addresses

given at the back of dabur products, or even they can call and visit the dabur web site.

THE PATH AHEAD:

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

Focus on growing their core brands across categories, reaching out to new geographies,

within and outside India, and improve operational efficiencies by leveraging technology.

Be the preferred company to meet the health and personal grooming needs of their target

consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge

of ayurveda and herbs with modern science.

Provide the consumers with innovative products within easy reach. Build a platform to enable Dabur to become a global ayurvedic leader.

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

quality personnel.

Be responsible citizens with a commitment to environmental protection.

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

CHAPTER .10

RECENT INITIATIVES


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Recent Initiatives:

Following its plans, Dabur made significant changes in the time period 2002-2007.

Brand Rejuvenation

With youth forming a major population of India, Dabur decided to revamp its brand

identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and

Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of

Chyawanprash grow by 8.5 per cent in 2003-04.

The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was

replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting growth,

energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness, the

trunk represented three people raising their hands in joy, the broad trunk symbolized stability,

multiple branches were chosen to convey growth, and warmth and energy were displayed

through the soft orange color. Celebrating Life was chosen as a new tag that completely

summarized the whole essence.

The Chairman in his annual report message said, If I were to summarize your

Companys performance during the year under review (2004 -2005), it would be Pursuit of

Profitable Growth.

HR Initiaves

The culture at Dabur gives full autonomy to its employees. Various training and

development programs like Young Manager Development Program, Prayas, Leading and

Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to

performance evaluation, helps employees realize their potential.

Recently, Dabur has adopted an innovative HR program of offering ESOPs to new

engineering and management trainees at the time of joining. Also in 2005, Dabur gave Bonus to

its employees after 12 years. This boosted the employee morale further.

Dabur was listed as a Great Place to Work, in a survey conducted by Grow Talent &

Company and Great Place to Work Institute, USA. Dabur was listed as the 10th Great Place to

Work. The results were published in Business World dated February 2006.


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DABURS SOCIAL INITIATIVES

Sustainable Development Society (Sundesh)

Sundesh is a non profit organization engaged in carrying out welfare activities with the

aim of improving the quality of life of the people in rural areas.Mr. Pradip Burmanis the FounderChairman. Sundesh is majorly involved in Health Care, Education and other socio economic

activities.

Sundesh started with Health Care and today its activities have diversified into various

other projects like education, veterinary services and income generation activities. These projects

were implemented after the need assessment survey of the rural community. The enthusiastic

volunteers support the society in implementing various projects in the rural areas through their

consistent efforts. Sundesh is executing various integrated rural development projects in the

villages of Ghaziabad and Gautam Budh Nagar Districts (Uttar Pradesh) in India.

SUNDESH is associated with the following activities

Education

Health Care

Self Help Groups (Micro Credit Society)

Income Generation

Veterinary Services

IT initiatives

Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It

also implemented a country wide new WAN Infrastructure for running centralized ERP system.

Further it set up new Data Center at KCO Head Office.

Supply chain Initiatives

Dabur has undertaken e-procurement in a big way. Dabur India procured Rs.210 crore of

raw materials through e-sourcing or almost 50 per cent of total raw material expenditure

and, in the process, considerably controlled raw material costs which were on a rise.

For better production and operation management, Dabur included automation,

debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax

holidays to reduce cost and improve efficiency.

Other important changes

Dabur made its largest acquisition by taking over Balsara hygiene and home products

business. Dabur bought the entire promoters stake of three Balsara companies through an all -

cash deal of Rs.140 crore. This was done to ensure Daburs presence in all price segments in the

herbal oral care market. Moreover, it allowed Daburs entry in the household care segment,

where Balsara has well-established brands.
http://www.sundesh.org/chairman_message.htmhttp://www.sundesh.org/chairman_message.htmhttp://www.sundesh.org/chairman_message.htmhttp://www.sundesh.org/chairman_message.htm


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Dabur also de-merged its pharmaceutical businessto come out as a pure FMCG player

Dabur estimated that the southern region was contributing as low as 7% to its overall

growth. For this purpose, the south team adopted a three-phase approach. First, it focused on

point of sale promotions and stocking practices. Second phase included better marketing efforts

in terms of advertising and packaging. Finally, it envisioned customized product launches for the

Southern states. The completion of first two phases by 2005-06 resulted in increasing contribution

to 10%.

CHAPTER .11

AWARDS AND ACHIEVEMENTS

Awards and Achievements-

1.Dabur ranked 182 in the ET-500 list Of India Inc's Heroes


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2.Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods space in India

3.Dabur ranked among Top 10 Best Companies to Work For in the Consumer Goods and Durables

sector

4.Dabur ranked 45 among Most Trusted Brands In India, according to Brand Trust Report, India

Study, 2011

5.The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100 Richest Indians' list

6.Dabur listed among the enterprises that are

'Doing India Proud' in Limca Book of Records

2010

7.Dabur ranked 200 in the Fortune India 500 list

That ranks India's 500 largest corporations

8.Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company


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9. Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace

bag international Promotion Marketing Award of Asia 2010

CHAPTER .12

RECOMMENDATION AND CONCLUSION

Recommendations:

Focus on growing core brandsacross categories.

Reaching out to new geographiesareas.


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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 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

Executive Summary

This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd

(DIL) for the brands Dabur. Pioneering role that it has played in the evolution of the categories it

has had a presence in. Dabur Chyawanprash is the leader in the Chyawanprash category and

enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded

Chyawanprash and since has invested heavily in product development, clinical studies and

consumer awareness. The product is essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing strategy of Dabur

India Ltd, but is an attempt to analyse the marketing mix of Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth Share Matrix

analysis, Ansoffs Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been


54/54

done on the basis of the information gathered from the company website and other online

resources and books and articles.

Posted 11th June 2012 bymukesh bisht

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