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ROLL NO: - MBA-307-2K9

MARKETING RESEARCH AT DABUR LTD.

Submitted in Partial Fulfillment of the requirement For the Award of Degree of

M.B.A (IT & MARKETING)

Under the Supervision ofMrs. Roopali Madan

Lecturer (MBA)

YMCA UNIVERSITY OF SCIENCE AND TECHNOLOGY, FARIDABAD

Submitted By:- Neeraj Kumar MBA-307-2K9

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PREFACE

Research project is one of the most vital and active part for the life of management

students. The basic idea behind this is to give the Research project to the student and

make them acquainted with actual method and procedures.

As a part of P.G. course, I completed my Research project on MARKETING

RESEARCH .

This project report covers the corporate area of marketing, as it is my field of interest

and area of specialization. The specific industry chosen is the upcoming, dynamic

herbal product industry. This industry can be further be segmented into herbal drugs

and herbal cosmetics sectors. This is an industry, which has suddenly proved to be a

major threat to the conventional companies in this segment and is giving major

companies, doing prolific business a run for their money.

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DECLARATION

I NEERAJ KUMAR student of Post Graduation in YMCA University of Science and

Technology, Faridabad hereby declare that I have completed the project on

MARKETING RESEARCH AT DABUR in the academic year 2010-2011. The

information provided is true and original to the best of my knowledge.

(NEERAJ KUMAR)

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CERTIFICATE

This is to certify that NEERAJ KUMAR (MBA-307-2K9) Department of

Management studies, YMCA University of Science and Technology Faridabad, for

the award of degree of Master of Business Administration has worked under my

supervision and guidance for his project titled “MARKETING RESEARCH”. The

matter embodied in this report is original and authentic to the best of my knowledge.

I wish him all the best in all his future endeavours.

Roopali Madan

Lect. In MBA Department

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PROJECT REPORT ON

DABUR INDIA LIMITED

[MARKETING]

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TABLE OF CONTENTS

S.NO TITLE PAGE NO

1 SYNOPSIS 7

2 INTRODUCTION 9

3 ASSUMPTIONS 10

4 COMPANY INFORMATION 11

5 STRATEGY 38

6 CONCLUSION 47

7 RECOMMENDATIONS 50

8 BIBLIOGRAPHY 53

9 METHODOLOGY 56

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SYNOPSIS

This project report covers and brings to light the marketing strategies of Dabur India

Limited.

Herbal product industry, though based on the age old practice of Ayurveda, is still in

its nascent stage in India. But it is growing by leaps and bounds every year. This is

because of the growing awareness of people for natural products and with the general

tendency to revert back to nature.

The demand for herbal products is increasing worldwide and this provides an

opportunity for India, with its inheritance of abundant natural herbs and the Ayurvedic

and Unani system of medicine, to rise up to the occasion. If, India wants and takes the

necessary steps it can be the leader in the herbal export segment.

It is a strange co-incidence that both the companies in question, started their business,

nearly a century ago, with the production an sale of Ayurvedic medicines. While

Dabur grew with time and became a company with highly diversified product

portfolio. Today Dabur is the market leader in Ayurvedic segment (45%).

For collection of data together with taking company information from various primary

and secondary sources, 25 consumers were also interviewed regarding their attitudes

about herbal products and about Dabur. A deep insight into the company, peoples

perception about it was available though this.

The company has some well defined marketing strategies which suit their needs and

requirement. Dabur has been family held business, but Dabur on the

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recommendation of McKinsey and company gave up its control in the management

and appointed outside officials. Dabur which has set his eyes on becoming a FMCG

and of achieving a turnover of Rs. 2000 crore by the next century has brought in

several changes.

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INTRODUCTION

This Project Report forms an integral part of the Post Graduate Diploma in marketing

management. As a prerequisite the companies should be registered in Delhi Stock

Exchange and should have a minimum operational period of five year. It is also

required that the project should be done highlighting the area of specialization of the

student.

This project report covers the corporate area of marketing, as it is my field of interest

and area of specialization. The specific industry chosen is the upcoming, dynamic

herbal product industry. This industry can be further be segmented into herbal drugs

and herbal cosmetics sectors. This is an industry, which has suddenly proved to be a

major threat to the conventional companies in this segment and is giving major

companies, doing prolific business a run for their money. The sudden inclination for

herbal products due to increasing consumer awareness has suddenly brought this

industry in the limelight.

The herbal product industry is characterized by changes, which are brought directly in

relation to customer preferences and awareness. New companies offering ‘something

new and extra’ to the consumers are mushrooming every day. As such the industry

provides an inexhaustible opportunity to study and analyse the marketing strategies of

the different companies.

The objective of my study is to report and analyze the herbal product related

marketing strategies of Dabur .

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ASSUMPTIONS

The analysis and the reporting of the information gathered from these two companies

would be based on certain assumptions, which are as follows:

I. The information given by the company officials is taken as correct at face value.

II. Same is the case with the information gathered through the consumer

questionnaire. The perception of the consumers regarding the product regarding

the product quality, promotion and other aspects is not disclosed suitably. This is

also to a great extent the basis of any conclusion.

III. The information from the secondary sources is accepted to be correct and

authentic.

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DABUR INDIA LTD.

COMPANY INFORMATION

The company, Dabur India Limited, was started in 1884 by Dr. SK Burman as a small

mail order business for Ayurvedic medicines, ‘Pudin Hara’ was the first medicine to

be mail ordered. Over the years the company passed down amongst the descendents of

Dr. SK Burman and remained a closely held family business. This remained true till

November 2, 1998. That day the 114 yr. old Dabur India reinvested itself. Breaking

over a century of tradition, executive powers of running the company were handed

over to an outsider appointed as CEO Mr. Neenu Khanna.

Dabur at this particular instance is going through a period of transition. This

transformation is going to result in the emergence of the largest Indian fast moving

consumer goods Company. The company, which has always shown a signs of a

visionary had set its rights on becoming the country’s largest home grown FMCG

Company. The company realized that to be the industry leader, it needs to be the best

in all areas and have to be benchmarked with the best industry practices. As such the

company appointed McKinsey and Co. In April, 1997 to look into the health of the

company and to come up with suggestions which will help turn Dabur into one of the

largest fast moving consumer goods company of the country. McKinsey & Co. has

identified the areas of improvement and suggested initiatives required in them.

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The company has decided to leave the day to day management in the hands of

professionals. The promoters (the Burman family) will withdraw themselves from the

routine functions and will concentrate on giving strategic direction to the company.

The major step in this direction is the decision to appoint a CEO to head the company

management. All business units’ heads and functional heads will report to the CEO.

The existing and proposed organization structure of the company as follows:

ORGANISATION STRUCTURE (EXISTING)

CHAIRMAN

Managing Director

V.C. Burman

Managing director

G.C. Burman

Sales & Marketing

Health care family

product Ayurvedic spl.

Foods and cosmetics.

Operations

Personnel and HR

quality Assurance

purchase

packaging

development

diversification

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Pharmaceuticals

Oncology R&D IT,

Bulk Drug and

Chemicals

Director

Veterinary

Natural Gums

Director

Overseas

operations

Finance

Exports

Corporate

Communicati

on

ORGANISATION STRUCTURE (PROPOSED)

Board of Directors

Management Committee

CEO

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BUSINESS UNITS HEADS

Health care

Personal Care

Ayurvedic Spl.

Ayurvedic Veterinary

Pharmaceutical

Oncology

Food

FUNCTIONAL HEADS

Operations

supply Chain

Purchase

IT

HR

Packaging Dev.

R&D

Quality Assurance

Finance & Accounts

Corporate Comm.

Dabur India Limited SBUs

Health Care

Personal Care

Foods

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Global Oncology

Ayurvedic Specialties

Dabur Group Cos.

Dabur India Limited

Dabur Finance Ltd.

Dabur Nepal Pvt. Ltd.

Dabur Egypt Ltd.

Dabur Overseas Ltd.

Dabur International Ltd.

Joint Venture

Coufiteria de General India Ltd.

Dabon International

Excelcia Foods Ltd.

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The biggest Indian FMCG Company, Dabur India Ltd., is poised to become the true

Indian multinational. The company today is a multi-location enterprise employing a

dedicated task force of over 5000 people. Dabur has 12 manufacturing plants in India,

Nepal and Egypt. Dabur also has a manufacturing license in Middle East. It has a

transnational network of 19 offices servicing both sales and marketing offices have

been set up in Dabur, New York, London, Moscow and its products are now available

in over fifty countries.

Besides this Dabur has collaborated with leaders in their fields to set up joint ventures

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

Limited, manufacturer confectioneries Dabur International Limited, the joint ventures

with Bongrain of France

manufactures specialty cheese. Dabur has collaborated with Osem Israel to

manufacturer bakery specialties and other food products under the name of Excelcia

Food Pvt. Ltd.

Dabur Exports, Dabur products have found appreciation across the globe, in a market

that spans the sevencontinents:

Middle East, East and West Europe, Russia and CIS,

Central and South America, USA and Canada, South East Asia (Japan, Malaysia,

Singapore, Thailand), North Africa, Bangladesh & Sri Lanka.

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Dabur Overseas Offices: London, Moscow & Kathmandu.

Dabur Representatives Overseas: Dubai, Kenya

Production Base Overseas: United Kingdom (Work in progress), Egypt, Nepal & UAE

(franchisee under technology transfer agreement).

Activities

Dabur products span the seven continents and over 50 countries. Though Dabur

starting its exports way back in the early 1900s, it gathered momentum in the seventies

with the Middle East market. Presently, Dabur Amla Hair Oil is not only the largest

hair oil brand, it has also helped

in making Dabur a household brand in that region.

Yet another major market for Dabur is Europe. With increasing awareness about the

natural goodness of herbal products, the demand for Dabur products has seen a steady

increase in the last one decade. Dabur set up its office and warehouse in UK to service

this burgeoning market. Apart from this, Africa, USA, Russia and the Far East also

offer tremendous potential.

Dabur Egypt Limited is a subsidiary of Dabur and was set up to manufacture and

market Dabur products in Egypt and other parts of Africa. Dabur also has a franchisee

for manufacturing its products in the Middle East. Dabur Nepal Private Limited is yet

another subsidiary that has done exceedingly well since its inception. Today, the

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company is one of the largest exporters of Nepal. Dabur Nepal manufactures an

stounding variety of Dabur products like Fruit Juices, Tooth powders, Digestives, Hair

Oils and Honey. In fact, Dabur Nepal is the only manufacturing base for Real Fruit

Juices. It has also set up a greenhouse for developing saplings of medicinal plants.

The company has set up an apiculture centre to develop Honeybee Products in Nepal

for exports.

Each division at Dabur functions as a SBU (Strategic Business Unit) where the head is

responsible for the cost and revenue and ultimately the profit of the unit. The various

companies of the Dabur group are as below.

The turnover of Dabur India Ltd., which accounts for 80% of the group’s total

turnover has steadily grown between 1992-93 and 1996-97 by 25-26%. The turnover

which in 1993-94 a mere 61602 lakhs rose to 81136 lakhs in 1997-98.

As per McKinsey’s suggestions several changes are being brought in the company.

The changed focus is not only on strategic front but also on operational issues.

Induction of more professionals

streamlining of supply chain

Setting up a centralized material procurement cell and

Updating its management process will take Dabur to a new era of faster growth.

From a closely held conservative company, Dabur India Ltd. Is all set to become a

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modern FMCG company not shy of taking the competition head-on. As it enters a

new millennium, Dabur has set itself a new mission. The mission is to offer

superior quality nature based products, that offer value for money and contribute in

improving the quality of consumer’s lifestyle in the areas of personal care, health

care and processing foods. As such the mission statement of the country is as

follows.

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MISSION:

To fully export our core competencies in the field of Ayurvedic and Herbal products

by identifying the consumer needs and aiming for full consumer satisfaction.

Together with this the company has set itself the target of being best in the industry

and plans to achieve a turnover of Rs. 20 million by the year 2003. There is a sense of

urgency in all actions which suggests a new dynamism. The company is at present

bringing in major changes which have remarkably altered their marketing mix

strategies. All of them have been discussed in the following pages.

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PRODUCT

PRODUCT RANGE: Till a year and halfback Dabur had over 500 products covering

around 10 categories in all. These were as below:

Healthcare Products Division: Marketed a range of OTC Healthcare products

based on Ayurveda. These included Herbal immune modulators; digestive,

restoratives, anti-flatulence and laxatives, tonics and mother and child care

products. Some of its products had over 65% market share in their respective

categories.

Family Products Division: Markets a range of beauty is a product, toiletries,

herbal hair care products and select goods. Hair oils, red tooth powder, honey and

rosewater are market leaders with nearly 70% market share in their respective

categories.

Ayurvedic specialties: Based on the ancient holistic system of healthcare. This

had a range of over 400 medicines. Ethically promoted these include classical

Ayurvedic medicines as well as products developed through in-house R&D.

Foods Division: The of the youngest division of the company markets a range of

services, ethnic pastes and foods. Real fruit juices gave Indian consumer for the

first time, fruit juices with nothing-artificial non-preservative, no colour and no

flavourer added.

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Cosmetics: Marketed range of beauty therapies under the brand name Samara -

Sanskrit for “to meet”. This range of hair and skin care products is a fusion of

chemical Indian Ayurvedic recipes and contemporary cosmetology.

Pharmaceutical Division: This division has a major presence in anti cancer

products and focuses on niche markets like anti-thrombolytic, anti migraine

therapy and radio opaque rays. The product line included a range of generic and

branded formulations in wide-therapeutic segments.

Bulk Drugs & Chemicals: Dabur manufactured synthetic and semi synthetic bulk

pharmaceutical substances, bulk natural compounds and intermediaries. Isolation

of pure natural compounds and customs synthesis was focus areas.

Natural Gums: This division manufactured and processed guar gums, gum

kanaya, tamarind-based gums and psyllium husk. the division produced a range of

industrial and food grade natural gums as per exacting customer specification.

Ayurvedic Veterinary: This division dealt exclusively in Animal healthcare.

Market safe and non-toxic herbal veterinary products for poultry large and

companion animals. These products are manufactured according to traditional

Ayurvedic formulation.

Product for global markets: Dabur products are available in over 50 countries.

These include soaps and shampoos, shaving creams, cooking oils and other items.

Company personnel in London, Dubai and Kenya service the overseas markets.

The products for global markets are manufactured in Nepal, Dubai and Egypt.

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The above mentioned product lines were there at Dabur till 1½ years back. On the

recommendation of McKinsey and Co., Dabur India Ltd., has decided to restructure its

product portfolio. Over the years, Dabur had added many new product, lines that gave

the company a very diverse portfolio. Although these new businesses have been

profitable, some are unrelated to the core competence - that of manufacturing herbal or

Ayurvedic based medicines. The company has decided to hive off such unrelated

businesses to separate companies under the Dabur group. This rationalization of

product portfolio will make the company a true FMCG. Guided by the philosophy of

“Doing Fewer things but doing them better”, the company plans to concentrate on 12-

15 major brands and add a few new products under these brands each year.

McKinsey also identified 5 pillars of strength Product lines which will give maximum

benefits to the company. As such the revised product portfolio has 5 product lines.

These include eight brands having market shares of over 65%. Dabur’s products are

positioned at the varied socio-economic cross section, thus providing products for

literally every Indian. The major areas of company’s business activity today comprises

the following:

A. Personal care products : This division accounts for 40 percent of Dabur’s total

sales and is the largest business in terms of turnover. Some previously marketed

brands of this category will be dropped and others will be added on. The turnover

from the division is expected it rise from the current RS. 350 crore to about RS.

430 crore next year growth in this division is attributed to come largely from eight

key brands. The major products lines and brands of this division are :-

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I. Hair care: - These include herbal, Ayurved based hair oil and shampoos, Some

major brands are Anmol coconut oil, Amla hair oil, Vatika hair oil and shampoo.

Dabur Amla Hair Oil - This grand old product of Dabur has a turnover in excess of

RS. 100 crore (RS 1000 million).

Vatika Shampoo - Dabur introduced premium natural shampoo under the brand

name ‘Vatika’ in 1997. Branded Vatika Henna cream conditioning shampoo, it

provides natural conditioning and nourishment without harmful chemicals. The

shampoo has as its main ingredients - Henna, Shikakai, Henna, and green almonds.

The product is confluence of the best of natural ingredients with modern day care.

Vatika shampoo has received tremendous response since its launch and is all set to

be one of the leading brands in Dabur range of products.

II. Oral Care : Red tooth powder and the Binaca range, which Dabur acquired few

years back.

III. Foods - including

Dabur honey

Sharbath - e Azam - a sweet rose flavored syrup.

Gulabari - rose water

kewra water

B. Healthcare products - This division accounts for 36% of the total turnover of

Dabur India Ltd. This business unit has some of the best known brands of

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Dabur. From all the 16 brands of this division, only 12 will be in the limelight;

two new brands will be added to the portfolio. This division is also the oldest

division as Pudin Hara was one of the three original formulations marketed by

Dr. S.K. Burman, major product lines are

I. Mother & child care - this include

Janam Gaunt

All Tail

Gripe Water

II. Digestives - Hingoli, Pudin Hara, Hajmola Tablets and Hajmola Candy.

Dabur is the largest digestive brand in India. Its Hajmola brand which has both plain

and candy variations as well as Pudin Hara and Hingoli have a strong Ayurvedic

essence to them. The Hajmola candy has tamarind pulp, which stimulates the digestive

glands to secrete more digestive juices. Pudin Hara is claimedly a natural stomach

remedy, free of side effects, while Hingoli has added its asafetida blend to the after

meal digestive market. Together, the three brands hold a major chunk of the herbal

digestive market of which Dabur has an overwhelming chunk, thanks to its Ayurvedic

competence.

III. Herbal Tonics - including Chyawanprash and Restora. While Restora brand helps

in restoring as well as building up the digestive system of the body, Dabur

Chyawanprash is a herbal tonic for general well being.

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A herbal immunomodulator, Dabur Chyawanprash not only builds immunity against

cold and infections but also improves the blood supply to a person’s lungs thus

providing beneficial for smokes and asthmatic patients.

Dabur Chyawanprash is one of the leading brands in Dabur’s product portfolio.

Introduced in late sixties in tin packs, the brands has come a long way to be the market

leader with market share above 70%. Dabur Chyawanprash is available in two variants

- Ashtavarg and special. It is the third brand after Dabur Lal Dant Manjan and Dabur

Amla hair oil to reach the coveted mark of RS. 100 crores in terms of turnover in last

financial year. The product is exported to more than 25 countries worldwide.

C - Ayurvedic Specialties: This is a 60 crore division which grew by 20 per

cent last year. This division includes ethically produced traditional Ayurvedic

medicines sold ethically through Ayurvedic practitioners. It has a range of over 400

generic and proprietary Ayurvedic medicines in its portfolio. These product are

divided in 16 categories.

This year the strategy of Dabur, regarding this product range is to pick on 7 promising

products of its portfolio of 401, and focus on their growth. But this will be more of a

test market lab. The major product lines are:

I. Asav - Arishta

II. Ras Rasayana

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III. Medicated Oils

IV. Churnas

V. Proprietary Medicines

D. Foods & Cosmetic: This is the youngest business unit of Dabur. It handles a

range of ethnic Indian food products and a range of 33 skin care and Hair Care

products sold under the brand name Samara. Major product lines are

I. Real Fruit Juices.

II. Home made Ethnic cloaking pastes and sauces.

III. Capsico chilli sauces.

IV. Nutrasalt low sodium salt.

V. Samara beauty therapies which includes of skin nourishers and toners.

Moisturizers and sun protectors, cleansers, face masks hair oils and vitalizers, hair

wash and cleansers.

Dabur’s Homemade brand of ethnic pastes (ginger, garlic, onion, & green chilli)

which was launched just last year has a turnover of 3.5 crore and has successfully

made a place in today’s urban homes. Dabur has identified this brand as one of the

pillars for growth over the next millennium. The brand, which was brought into the

market after much research on the psychographic profile of today’s urban women, has

been well received by its target segment.

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Dabur already has a well-etched out strategy for its foods division. Over the next three

years, Dabur will spend close to Rs. 60 crore in advertising in foods, besides and

additional capital investment of Rs. 20 crore. On the anvil: some more pastes and a

range of other culinary products.

E. Oncology: The last product line, which has been recognized, as the pillar of

growth for the company is that of oncological products. This business of Dabur has a

huge future potential in India and abroad.

Dabur is the only company in India to manufacture anti-cancer drugs, all a result of

the efforts at Dabur Research Foundation. This product line at present has a range of

10 products.

Major products are intanel (paelitanel) and Eotel (Docetanel) - both derived from

Asian Yew Tree. Dabur is the only second company in the world to manufacture these

drugs. DRF developed the unique Eco-friendly process for extraction of these drugs

from leaves of the tree.

Besides the above 5 product lines, Dabur is also concentrating on few other

businesses.

Dabur has diversified in confectioneries and foods in collaboration with leading

international companies. Dabur’s joint venture with Agrolimen of Spain is

manufacturing Bubble gums under the brand name of Boomer and candies by the

name of Bonkers. Excelcia Foods Pvt. Ltd., Dabur’s joint venture with Osem of Israel

has stated marketing cream filled crisps under the brand name of Creamwich. Some

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new products are ready to be introduced in the market shortly. Bongrain of France,

one of the world’s biggest cheese companies, is the partner with Dabur for another JV

set up for manufacture and sale of specialty cheese and other dairy products.

Major factories of Dabur are located at Shahibabad, Baddi (H.P)Maksi (KP),

Daburgram (Bihar) and Nasndrapur (Bengal). Besides this Dabur also has 3rd party

manufacturing for some of its products.

Research and Development

Research and Development of the company continues to support the company’s

business by developing innovative products and process to cater to consumer needs

and preferences. Research and Development activities in health care and other

products were aimed at developing value added products, delivering consumer

perceptible and demonstrable benefits. A range of new generation products with

improved financial and sensing properties was developed. A new formulation for their

protective drugs has been developed which has shown efficacies against hepatitis virus

A, C & E. several new products in the form of ethnic paste have been developed. New

variants of fruit juice namely tomato and mixed juice have been developed. A new low

sodium salt combination which has been recommended as a cooking salt for health

conscious people has been developed.

All this has been a result of the efforts of Dabur Research Foundation. DRF, an

independent organization, which has over 125 scientists working full time on

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developing and scientific validation of products through clinical trails. DRF is a

independent profit center of Dabur and is another major strength of Dabur.

The Research and Development center has successfully

completed a project on Ayurveda on CD-ROM. This is a comprehensive multimedia

CD which gives information of Ayurveda, Ayurvedic herbs and products, philosophy,

history, expert system related to Doshas, guidance to daily healthy living styles in a

very user friendly interactive way.

Dabur Research Foundation (DRF), incorporated in 1979, is a premier research

organization recognized by Department of Scientific and Industrial Research,

Government of India. Situated at Sahibabad, DRF is today a known name for its

pathbreaking research in the field of healthcare and personal care.

The Foundation is at the forefront of oncology research, and is in the process of

developing many new molecules to fight this dreaded disease. In fact, DRF was the

first organization in the world to develop a process for extraction of paclitaxel, a drug

for cancer, without harming the source tree. The process is now followed worldwide.

Herbal health care is an area where Dabur Research Foundation has made immense

contribution by doing research and development work using modern pharmaceutical

protocols. The foundation has been doing clinical trials on traditional herbal drugs to

validate the claims made in age-old scriptures of Ayurveda. The foundation has also

done the standardization of around 200 herbal ingredients using marker compounds.

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DRF has also developed some of the well-known personal care products like Vatika

Hair Oil and Shampoo, Special Hair Oil, Samara range of herbal skin and hair care

products.

DRF’s R&D thrust is towards the development of new formulations with improved

levels of efficacy and safety.

To become the leading research organization of the country, developing safe,

effective, consumer friendly health care products.

Expansion/Modernization/Diversification

A new manufacturing unit with high degree of automation came into operation in

Baddi (HP) during 1998 to produce Dabur’s well known brands Chyawanprash, Janma

Ghunti Ayurvedic oils and Asav-Arishtas. This, apart from underwriting assured

quality of the products, has substantially reduced per unit energy consumption and

improved yields. To complete the expansion plans at Baddi for the branded products, a

modern unit has been constructed to produce a range of softgel products. The

environment control system at this plant and GMP standards are world class. Honey

grading facilities at Baddi have been modernized as a strategic initiative to deliver the

goodness of honey to the consumer.

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The bulk pharmaceutical compounds manufacturing facilities at Kalyani (WB) became

fully operational during 1998 under review for producing oncology and non-oncology

products for both national and international market.

The fruit and fruit processing facility at Katni and Sahibabad have been further

modernized to allow high volume hygienic process of natural materials. This process

allows mechanical handling throughout the process using equipment used in the best

European factories.

A modern air-conditioned packing line has been commissioned at Sahibabad for

Dabur’s hommade brands of ethnic pastes and lime juices. A new state of the art plant

for manufacturing of hair oils at Sahibabad started commercial production during the

year 1997-98.

A new corporate office at Sahibabad is at an advance stage of finalization and will be

operational by the end of this financial year. A new PET project to manufacture PET

bottles is being set up at Sahibabad. These bottles will be used for packing of hair oils.

The project is likely to commence its commercial production during the current year.

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PRODUCT PLACEMENT STRATEGY

Distribution is said to be one of the major strengths of the company. Dabur India Ltd.

has a transnational network of more than 5500 distributors. 21 sales office and 19

branch offices service these. This strong network ensures availability of Dabur

products in more the 1,300,000 retail outlets in India. The products from its Health

care products division are alone available in 4,50,000 outlets, which range from

grocery stores to chemists to confections. Company people directly cover these

outlets. One of the product -Hajmola candy is available in 1,25,000 outlets which

include paan shops, roadside kiosks and also large department shops besides the

smaller general merchants.

The distribution set up for Dabur is as follows:

Factory - Dabur

Branch Warehouse or C

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& F agent

Stockist

Wholesaler

Retailer

Consumer

Thus it can be seen that Dabur has a significant coverage of the market. Based on this

the product placement should be one of Dabur’s greatest strength. But unfortunately

there had been some loopholes.

Firstly there were shortcoming in supply chain management - from the buying of raw

material to the selling of finished goods to the retailers. For instance demand

forecasting was done on a annual basis. Feedback from the company’s sales

department would be discussed with its marketing cell and the branch heads would

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request for fresh stocks based on estimates, which were, part statistical and part out of

gut feel. This, at times, led to huge inventory pile-ups. The forecasts were made on a

historical basis on statistics available. There forecasts were many-a-times inadequate

and often lead to stock out or inventory pile ups.

Second problem was with logistics and procedures. A branch took six days to process

an order. It then took almost the same number of days to obtain the goods from its

godowns. Very often, the godowns did not have the right stock since the goods used to

be sent by truck, and the truckers wanted full truck loads before they started rolling, at

times the goods would be at the truckers godowns for a week.

Dabur’s system of accepting payments from its stockists was also very elaborate with

vouchers etc. This delayed its payment cycle and also affected the cash flows for the

company.

Dabur realized that there is something wrong in its supply chain-from buying of raw

materials to the selling of the finished goods to the retailer. For a growing FMCG, this

was the most critical aspect of business as it has 3 major benefits.

One, have the right stock, at the right place at the right time.

Two, keep inventories down.

Third, do all this with lower operational costs.

It was with the intention of fixing its internal processes that Dabur hired Mckinsey and

Company in 1997. McKinsey accordingly has given suggestions to Dabur to improve

36

its supply chain and procurement processes. Firstly Dabur has shed the process of

making annual forecasts and is fast moving towards a mode of rolling three monthly

forecasts, where the projections for one month are fixed. This forecasting model is

based on the current market needs rather than historical performance of the product

and hence chances of error have been reduced. Moreover, unlike in the past, when

forecasting was brand specific now forecasting is done on the basis of stock keeping

units e.g., If earlier the off-take of a certain volume of Dabur’s Chyawanprash was

predicted, the forecast now has to include specifics based on the three different sizes

of the products.

Based on the 3 month rolling fore model, which accurately predicts how much the

company’s factory should produce, how goods should more from factories to

warehouses to the branches. This replenishment model works on the fundamental

principal that inventory should be avoided at all costs.

Dabur has also tried to reduce its inventory level, which had earlier resulted into high

working capital requirements. The company has been successful in these aspect brands

to better systems and information technology, and the finished goods inventory is

down to 40 days from 52 days.

Besides all the above measures of supply chain improvement, the company has kicked

off other initiatives like improving the collections from its dealers. Unlike earlier,

when Dabur used a complicated system of invoices to recover dues, the company now

insists its dealers to pay by checks. Simultaneously, it is hot on what is called

37

“Planned Journey Period” planning - in other words, route planning for its trucks.

Dabur will now plan delivery along geographical routes. The company’s sales

personnel are encourages collecting orders from stockists along pre-selected routes

and Dabur sends suppliers along these routes. These days, Dabur even pay its truckers

5% over its earlier rates so that they carry only the company’s goods and therefore

reduce idle time in wailing for whole truckloads.

Also on the procurements side, a central procurement planing cell has been created

comprising of six category managers to keep takes on the organization of raw

materials, packing materials and outsourcing of certain products.

38

PRICING STRATEGY

Pricing is undoubtedly one of the most important decision areas of marketing. Price

and sales volume together decide the revenue of any business. As the sales volume in

itself is dependent in price. Pricing really becomes the key to the revenue of the

business such is the case with Dabur. Though some of the products of Dabur have

been leading brands in their segments over the years, still others are upcoming brands

trying to make their pressure.

Dabur as a brand name is well reputed and readily accepted in the market. The main

strength of Dabur’s products besides their quality is the brand name. This gives to the

company, opportunity to fix the price at a level, which gives suitable profits. Major

factors affecting Dabur’s pricing policy are:

I. Corporate and Marketing objectives: Whether the product is marketed with the

initial objectives of capturing maximum market share or earning maximum profits.

Dabur’s product like Hajmola candy, hingoli were marketed with the objectives of

capturing a sizeable share of the market and so were priced towards the lower end

of the scale. This strategy has secured its purpose because today Dabur is the

market leader in digestive candy segment.

II. Image sought by the firm through pricing: of through pricing, the company

wants to communicate to the consumers that the product it is marketing is for the

premium segment it will adopt a policy of high prices. When Dabur marketed

Vatika shampoo the product was meant for the middle classes and was moderately

39

priced. But when Dabur honeys and Real fruit juices were marketed, they were

targeted at the premium segment and were relatively high priced.

III. Costs of manufacturing & Marketing: Sometimes the costs that a company

incurs in manufacturing and marketing a product also get reflected in the price.

Four years ago, when Dabur launched Vatika Hair oil, it was the first coconut oil

to have other ingredients beneficial for hair. A lot of research work had done into

it and to have the product readily accepted it was heavily advertised. All this

resulted in raising the MRP of the product.

IV. Competitors pricing policy: often when in a segment there is much competition

to the reckoned with, the prices of the competitors for similar products have to be

kept in mind before deciding on the price for a product. In such category fall the

Dabur Amla hair oil, Anmol coconut oil and Dabur Chyawanprash.

The pricing policy adopted by Dabur India limited is cost based pricing where the total

cost incurred in the manufacturing process of a product plays a significant part in

deciding the price of the product. The approach used in cost - based pricing, at Dabur

is Mark-up pricing. The major elements in this policy are:

Fixed Costs: These results from the expenses on men and machinery e.g., the wages

and salaries paid, the annual changes of running a machine etc. These expenses remain

fixed with the volume of production.

40

Variable Costs: These expenses vary with the volume of production. They are a result

of the raw materials used, the processes and technology employed, the sales tax or the

excise duty accused in course of production of a particular product.

Mark-up: This is the margin, which is added to the above-mentioned costs before

arising at the price of a product. This mark-up is what finally results into a profit for

the company. Mark-up is a percentage of the total fixed and variable costs. Depending

upon the type of product, its saleability, the target segment, the competitor’s price, the

mark-up may be anything between 50-150% of the total costs.

Since Dabur’s products a mostly Ayurvedic or herbal, the cost of the raw materials

constitutes the chunk of the total costs. The costs of raw material form a part of the

variable costs and differ from the variable costs and is different from products to

product.

Most of Dabur’s products are affordable i.e.; they are priced towards the lower or

moderately high end of the scale. Dabur very well knows where it can change a

premium and where it cannot. This is why; Dabur has made its presence in most of the

homes of India and is steadily doing so abroad.

41

PROMOTIONAL STRATEGY

Dabur, like an upcoming FMCG company realizes the importance of advertising in the

marketing of its product. Like a true visionary Dabur from time to time, introduced as

well as changed some of its campaigns (for key products) to bring them according to

the changing market scenario. In all its advertising is handled by 8 agencies.

Campaign for digestive: Hajmola, Hajmola Candy, and Pudin Hara are done by

Hindustan Thompson Associates (HTA). Pudin Hara has been identified as one of the

core brands of Dabur by McKinsey and HTA is going to release a new campaign for it

shortly. Advertising for digestions is through all the media - T.V, newspapers and

magazines.

Campaign for Dabur Amla Hair Oil: This account has been looked after by Ogilvy

& Mather over the years. This grand old product of Dabur has once again adorned a

new face for advertising. Known for celebrity advertising, this product is now

promoted by Karishma Kapoor. Some of the leading ladies of the film industry who

have endorsed this product are Jayapradha, Sridevi, Juhi Chawla.

Campaign for Vatika hair oil & Shampoo: Advertising for Vatika hair oil which

was introduced 4 years back and Vatika Shampoo which was introduced a year back

has been looked after by Mudra. Another product which is campaigned for by Mudra

is Red tooth powder. While Vatika hair oil and shampoo is advertised both in print and

electronic media, advertising in print media is more common for red tooth power.

Also, for this, magazines prevalent in small cities (in vernacular language) are more

42

often used. This is because the target segment of this product is in small cities and

towns.

Campaign for Dabur Chywanprash: Over the years the advertising campaign for

Dabur Chyawanprash has been handled by Response, an advertising agency of

Calcutta. Both print and electronic media are used for campaigns for Dabur

Chywanprash.

Campaign for Dabur Honey, Real Fruit Juice: The agency responsible for handling

the campaigns for the food’s division is enterprise Venus also both print and electronic

media are used for this product range.

All the advertising agencies hired by Dabur are responsible for creative execution and

media planning for their advertisements. A vast number of appeals can be seen to be

there in Dabur’s advertisements. While Pudin Hara uses a common man to endorse the

product celebrity appeal is used for Dabur amla hair oil. Chyawanprash, Dabur Honey,

Vatika Shampoo, and Real Fruit Juice extensive information about the constituents

used, their goodness and benefits to human beings are clearly explained in the ads of

these products.

Still other products like Hajmola pills and candies as well as Hingoli have a humorous

aspect in their campaign to catch the imagination of the consumers.

The reason why Dabur does not use one or two agencies to advertise for its products is

simple - it does not want any two of its campaigns to be similar. While the agencies

look after the creative aspect and media planning and scheduling; media buying is

43

done by the in-home agency - Adbur. Media space (in case of print newspapers,

magazines etc.) and media time (in case of electronic media like TV, Radio) are

bought in a consolidated manner by this agency. These may be prime time slots, full

page or half page bookings. Whenever a product has to be advertised, dabur decides

the time and space and the product is advertised accordingly.

Dabur is a firm believer in advertising and benefits and as such has a huge advertising

outlay. But the manner in which the advertising budget is appropriationed differs from

product to product and depends upon what the advertising and ultimately the

marketing objectives of the company regarding those products are. Some of the

methods used advertising appropriationing are :

I. Historical basis: Dabur uses this method for products, which have been in the

market for long i.e., Chyawanprash, Amla Hair Oil. A regression analysis done

based on historical data in which a comparison of past expenditure and sale is

done. Likewise future advertising outlays are decided.

II. Competition based: This method is used is used for deciding outlays for products

which are in highly competitive segment like Real Fruit Juices, digestive candies

etc. Here a advertising budget is made which is comparable to the budgets of the

competitors in that segment.

III. Task based : According to this method, the quantum of funds required to attain

the specified advertising goals is decided on a function-to-basis.

44

Besides campaigning in print and electronic media, Dabur also has various sales

promotion techniques. Most of them are the POP materials like dispenses for candies

etc, danglers, stickers and so on. Also from time to time various Dealer promotion

schemes are undertaken. These schemes are tactical in nature i.e., there is always some

object to be achieved through them which can vary from increasing the number of

dealers or giving incentives to dealers to stock Dabur’s product more.

Consumer schemes are also undertaken and they are usually need based. These

schemes may proceed the introduction of a new product, to increase the sale of a

product, to sponsor an event, build an image for the company etc.

In today’s changing times, communication - whether it is internal or external forms an

integral part of an organization. Dabur has a corporate communication department,

which is responsible for the Public Relations of the company. Besides this, the

company brings out ‘Contact’ a quality newsletter, which not only helps employees

communicate effectively with each other but also helps in dissemination of news and

information. It is a two-way communication channel between employees due to its

interactive nature.

CONCLUSION

Being a treasure trove of rare medicinal plants and the birthplace of three therapeutic

systems, the growth of herbal product industry in India has been remarkable.

According to a survey, the current estimate of the total herbal market is Rs. 2500

crores which is growing at a rate of 25 to 30% per annum. Many companies are there

45

in this highly competitive field. With the growing awareness and realization among

people for herbal products, these companies claim to be marketing not just a product

but a whole civilisation.

While for Dabur herbal products business forms the major activity (Dabur is a highly

diversified company), manufacturing of herbal products is the only business of

Baidyanath.

Fast Moving Consumer Goods (FMCG) industry is one of the most competitive and

fast growing industry in India. Dabur, keeping in view the challenge of the global

market, maximizing team performance, focusing on core competency, changing

competitive world and meeting the demand of demanding customers, felt the need for

appointing an international consultant to study and identify areas of improvement in

various aspects of company’s business to improve cost effectiveness and to diagnose

organizational and strategic aspects. The company appointed McKinsey & Co., in

1997 for devising its strategic, organizational and operational guidelines. Based on

their finding and suggestions the company is poised for transformation. The major

weaknesses of the company as identified by McKinsey are:

Family run business lacking professional managers.

Highly diversified product portfolio with no or little synergy.

Improper and unscientific methods of demand forecasting.

Poor raw material procurement planning.

46

Huge inventory pile up or stock outs.

Complex system of payment to dealers and stockists.

Long cash-flow cycle and huge working capital requirement.

Lack of co-ordination between central supply cell, branches and warehouses.

Dabur’s brand was known but nothing much about the company was known.

It is a positive sign that the company, based on McKinsey’s recommendations, has

taken the initiative to change and alter its weak points.

Firstly Dabur has identified core areas of competence and has decided to focus on

these business to maximize growth in the national and intentional market through

effective strategies. The company has also decided to exit from non-core areas and has

already appointed consultants to hive off these business/brands. Dabur’s future growth

will be guided by the theme “DOING FEWER THINGS BUT DOING THEM

BETTER”.

Dabur is also changing from a promoter driven company to a professionally managed

company. The company is in the process of recruiting a professional CEO from

outside the company to take on the day to day responsibilities of management.

Based on the suggestions of McKinsey, Dabur has initiated the process of adhering to

new and better systems and styles of management. The first step in this area is to

polish up its operational methods and to give up on redundant practices. The focus is

now on supply chain management, improving purchasing capabilities, improving

47

distribution efficiencies, improving sales force, marketing inputs, reduction in

manufacturing costs and improvement in quality, efficient utilization of corporate

resources etc. Dabur is putting up a new thrust to solve its loopholes and many of its

initiatives are commendable. Some of them are:

Undertaking a mammoth task of transforming a more than 100-year-old company.

Appointing of an outside consultancy to look into its problems.

Giving up the family hold on a 800 crore group.

Selling out non-core business.

Introduction of a series of operational and logistical systems into the business.

All these combined with the inherent strength Dabur has- well recognized and

established brand, strong R&D backup, right mix of advertising, promotion and

product packaging, we hitherto have a world class company. The major strength of

Dabur in this rapidly growing herbal industry is that they were pioneers in this field.

Today also, the name DABUR is a household name and most of the consumers

have high regard for the company’s products and the products are synonymous with

quality and effectively.

Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., is today at a stage where Dabur was

few years back. It is a company whose management still lies among the family

members. It has 2 joint managing directors who look after the operations of its 5

offices spread countrywide. It is also one of the oldest company of Ayurvedic/herbal

48

medicines/products. It is the only herbal Product Company to have a range of over 700

product. But with the largest range of Ayurvedic products and with ages of business

experience, the company is still not at the top nor is so well rated by the consumers.

The reasons for this are not hard to find.

Baidyanath because of the low profile image it has for all these years, is perceived

to be a small and backward company with some factory some where.

Advertising has not formed a thrust area of the marketing strategy and hence of the

correct brand or company image has not been projected. Hence its products are at

times taken to be of inferior value and not upto the mark.

The company has not grown with the changing time and has not adopted modern

management practices in terms of quality control, R& and operational process.

The packaging of the product as well as the quality of its print and electronic

media ads has not been improved and this also suggests some negative connotation

about the company.

This aside, the company has some major strengths

Goodwill of the regular users of its products.

Well-earned reputation for quality.

A strong market presence by retail outlets.

49

Outlets readily accepting to stock its products. But still Baidyanath, if its has to

survive today’s cutthroat competition, it has an uphill task of tackling the

upcomingcompanies like Smyle, Zandu, Yogi Pharmacy,HimalayanDrugs etc.

Fast Moving Consumer Goods (FMCG) industry is one of the most competitive and

fast growing industry in India. Dabur, keeping in view the challenge of global market,

maximising team performance, focussing on core competency, changing competitive

world and meeting the demands of demanding customers, felt the need for appointing

an international consultant to study and identify areas of improvement in various

aspects of company’s business. To improve cost effectiveness and to diagnose

organizational and strategic aspects, the company appointed McKinsey & Co., in 1997

for devising its strategic, organizational and operational guidelines. Based on their

findings and suggestion the company in poised for transformation. Baidyanath is today

at a stage where Dabur was few years back. Even with the largest range of Ayurvedic

products and with ages of business experience, the company is still not at the top nor is

so well rated by the consumers. The reason for this are quite obvious. Nothing much is

known about the company. Advertising has not formed the thrust area and so correct

company or brand image has not be created. Together with this the company has not

grown with modern times and has not improved on packaging or R&D efforts.

50

RECOMMENDATIONS

DABUR INDIA LIMITED

Most of the recommendations for Dabur have been covered by the McKinsey report.

Nevertheless it would be worthwhile to note them again.

1. If Dabur has to emerge as a true FMCG company it has to divest its non-core

businesses fast and focus only on some core competencies. It this is done growth

will follow soon.

2. There are also changes to be brought on the operational front. The company should

hire more and more outside professionals into both top and middle management. It

should also initiate the process of adhering to new and better system and style of

management.

3. The demand forecasting has to charge from the unscientific, incredible system of

annual forecasting to the more reliable and error free system of making quarterly

rolling forecasts.

4. The order processing and procurement planning for raw materials has to improve

at Dabur. If this happens then the situation of inventory putting up or stock outs

will be minimized.

51

5. Many-a-times Dabur’s products have not withstood quality control tests. If Dabur

has to surface as an multi-national and face the world competition it will have to

follow more stringent quality control methods.

6. Also the quality of the raw materials used should be looked into. This will also

help Dabur to stand quality control tests in the international arena.

7. Dabur has often been accused of pricing its products arbitrarily. If the company

has to grow, it has to adopt a more scientific way of pricing an understand that

today's consumer is an intelligence one who has the freedom & opportunity to

choose.

Dabur, if it has to emerge as a fresh Indian multinational and a true FMCG then it has

to divert from its non-core business. It also has to introduce systems in its operational

as well as strategic fronts. It also has to have more stringent quality control methods

and its pricing policy should be more scientific.

Baidyanath, if it wants to survive today’s competition, then the first thing it should do

is to alter the image of the company as well as its products. It also should include

outsiders in its business and also modern management practices. Lastly, it should

improve upon the packaging and advertising of its products.

Most on the consumers interviewed also suggested similar things for both the

companies. Even though Dabur and Baidyanath were the most popular companies

with consumers, most felt that Dabur’s products were highly priced while Baidyanath

52

had good and reasonably priced products but cost out to other companies on account

of poor packaging & low key advertising.

53

BIBLIOGRAPHY

1. Magazines

Business India 1998 Issue

Businessworld 22 Nov-6 Dec

2. Books

Marketing Management - by Phillip Kotler

Principles of Marketing – by Phillip Kotler & Gary Amstrong

3. Others

Annual Report of Dabur (1997-98)

Company Literature of Baidyanath

Economic Times Newspaper

54

LIMITATIONS

Although it has been my endeavour to take all necessary precautions to ensure that the

information gathered is authentic and maximum facts are presented the report has a

few handicaps.

1. Time: The nature of the report required detailed and meticulous information

gathering. In this sense time was a limiting factor and a major constraint to

accomplish the given task. Also sometimes the executives were not available and I

had to re-schedule my appointments time and again. This caused a lot of pilferage

of time and unnecessary of duplication of effort. Also many holidays occurred

during the preparation time of this report and access to information was limited in

this period.

2. Human Error: The feedback provided by the company executives, consumers and

others approached has been assumed to be correct. But there might have been

wrong and biased facts given. The opinion of few cannot be generalised in any

manner. The reader has to discount these fallacies with regard to the small scale on

which it has been prepared.

3. Non-cooperation: While by and large the people approached were helpful some

people were non-cooperative. Also a lot of information was withheld due to its

sensitive nature. E.g. Baidyanath did not disclose the sales figures.

55

4. Logistical Problems: One major problem that occurred was the absence of

marketing office of Baidyanath in Delhi. Only a registered office is here and it

proved quite difficult to get information from there.

5. Cost: Baidyanath's head office in Calcutta had to be contacted several times on fax

and phone to get company literature, product range etc. This resulted in major

expanses apart from the expenses incurred in local travel, calls, computer work

and printouts.

56

METHODOLOGY

The research design plays a pivotal role in the quality and content of the data in

making of any project report. The type of research design chosen is seen to have a

bearing on all the aspects of report writing.

The research design undertaken for the study was an exploratory one. The reasons for

using an exploratory research method was to obtain qualitative data and also since the

nature of study is as such that it required the exploration of various aspects within and

outside the company. This method also gave the officials interviewed the utmost

freedom in responding and was highly contributory in getting incisive information.

In order to carry out a well researched analysis efforts were taken to collect enough

information about both the companies. For this purpose various primary and

secondary sources were used. For collecting primary information (regarding the

company as well as consumer's attitudes) company executives and 25 consumers were

approached. Information was gathered through the questionnaire method as well as by

interview method. Interview method was used whenever any reluctance was shown by

the respondent for filling up the questionnaire. Mostly for the company executives,

interview method was used. This method helped in obtaining in depth knowledge and

facts and whatever doubts, if ever, surfaced were cleared at the very moment. Some of

the questions asked are:

What is the product range, under what brand name are they marketed

57

What are the quality standards maintained

How s demand estimated and sales forecasted

Where are factories located

Major R&D efforts

Strength over competitors

What are the channels of distribution - who are the intermediaries involved.

No outlets

How are inventory levels maintained and warehousing done.

What is the pricing policy and main constituents of price

Advertising budget, allocation and programming

Types of sales promotion effort undertaken

Publicity and PR work done by the company

In order to gauge the consumer's attitude towards herbal product and about the

products of Dabur and Baidyanath in particular another questionnaire was used. This

questionnaire has 10 close-ended questions. In all 25 consumers were approached and

their responses taken. These responses were later analysed and were of colossal help

58

in coming to various conclusions for the report. Each question asked to the consumer

and some logic behind it. The questions and their logic are as below:

1. Do you use Herbal products/

If No, given a chance would you?

This question helped in knowing the percentage of people using or favouring herbal

products.

2. Herbal products are better than synthetic ones?

3. If Yes, then why? If No, then why? (Please tick)

- No side effects - Ineffective

- Affective - Short term remedy

- Long term remedy - Dicey constituents

Both the above questionnaires help in gauging the perception of people regarding

herbal products, the utility or strength over synthetic products.

4. What kind of herbal products you use?

(a) Medicine (b) Cosmetic (c) Others (Pl. specify______)

5. What portion of your total consumption of the above is formed by herbal products?

The two above questions helped in knowing the growing prevalence of herbal

products.

59

6. Which two companies first come in your mind when your talk of herbal products

(medicines and cosmetics)?

7. Rate the following companies engaged in herbal product business in terms of your preference

Medicine Cosmetics

Dabur Biotique

Baidyanath Shahnaz

Zandu Dabur

Hamdard Ayur

Question nos. 6&7 helped in knowing the attitude of the consumers regarding

different companies.

8. Among Dabur and Baidyanath which one is better? Why (Pl. specify).

- Genuine products

- Value for money/reasonably priced

- Effective

- Safe

9. List 2 product of the above mentioned company liked by you/used by you the

most.

1. …………………………….. 2. …………………………….

60

Question 8&9 helped in knowing the consumers attitude specifically for Dabur or

Baidyanath. It gave an idea why one company was preferred over the other and which

products were mostly favoured.

10. (Ref. Quest. No. 8) What steps should the other company take to improve its

position? (Please tick)

- Better product range

- Better packaging

- Better advertising

- Improve quality

- Better availability

The last question helped in knowing the loopholes which existed for the company (not

preferred) and the steps which could be taken to improve its image and standing in the

market.

Both the questionnaires formed the right tool to except the required information from

the respondents. Once the information was collected the next step was to filter out the

data and to present in the most appealing manner.

Various secondary sources were also used to gather data as these provided an

objective basis of getting useful information. Following are the main sources used in

the project.

Business magazines

61

Annual reports

These secondary sources gave some information which helped in better understanding

of the functioning of the companies.

This project report covers the upcoming segment of the herbal product industry. This

industry has a special relevance for India, since it derives its roots from the ancient

system of Indian medicine - Ayurveda. Therefore in course of this project report, in

order to facilitate better understanding of the whole scenario a brief introduction to the

system of Ayurved has been given. This is followed by "Case for Herbal products".

Stating why people are for and against herbal products and finally and overview of the

whole herbal product industry is presented. Also before coming to the marketing

strategies of Dabur and Baidyanath a brief write up about marketing process and the

growing relevance of marketing for India has been given.