A

PROJECT REPORT

On

MARKETING STRATEGY OF DABUR VATIKA HAIR OIL & DABUR CHYAWANPRASH

SUMMAR TRAINING PROJECT REPORT SUBMITTED TOWARDS

PRACTICAL FULFILLMENTOF

MASTER OF BUSINESS ADMINISTRATION

Submitted To : Submitted By :

MR. KARTIK ANUJ KUMAR SHAHI Faculty MBA IInd Sem.

Reg. No. : MA91116

VEL RANGARAJAN SAKUNTHALA COLLEGE OF MANAGEMENT &

SCIENCE CHENNAI

MARKETING MANAGEMENT TERM PROJECT

Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash

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ACKNOWLEDGEMENT

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

Strategy of Dabur Vatika Hair Oil & Chyawanprash”. The work would

not have been possible to come to the present shape without the able

guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and

guidance received by my organizational guide Mr. Sumit Sharma

(BRANCH MANAGER) and other staff members of Dabur India Ltd.

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

supported me during the course, for completion of my Research Report.

{ANUJ KUMAR SHAHI}

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TABLE OF CONTENTS

1.EXECUTIVE SUMMARY 7

2.INTRODUCTION 9

COMPANY PROFILE 10

PRODUCT PROFILE 11

3.OBJECTIVE 39

4.RESEARCH METHODOLOGY 41

MARKETING RESEARCHSAMPLING

5.ANALYSIS 45

6.FINDINGS

7.SWOT ANALYSIS 63

8.RECOMMENDATIONS 67

9. CONCLUSION 69

10.APPENDICES 72

11. BIBLIOGRAPHY 83

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EXECUTIVE SUMMARY

This report aims at analysing and reporting on the marketing strategies of

Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur

Chyawanprash

The Vatika brand was launched in 1995 with Vatika Hair Oil as its first

product. In the very first year of its launch it crossed Rs. 100 million in

turnover. Over the years, Vatika has come to be amongst the company’s

highest selling brands. Vatika is a comparatively young brand but is

already acknowledged for the qualitatively influential and pioneering role

that it has played in the evolution of the categories it has had a presence

in. Dabur Chyawanprash is the leader in the Chyawanprash category and

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

of branded Chyawanprash and since has invested heavily in product

development, clinical studies and consumer awareness. The product is

essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing

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

of Dabur Vatika Hair Oil and Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth

Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT

Analysis etc. This analysis has been done on the basis of the information

gathered from the company website and other online resources and books

and articles.

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COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness

through a natural lifestyle. An umbrella name for a variety of products,

ranging from hair care to honey, Dabur has consistently ranked among

India’s top brands. Its brands are built on the foundation of trust that a

Dabur offering will never cause one harm.

The trust levels that this brand enjoys are phenomenally high. While Ries

and Trout may ask “What does Dabur stand for—shampoo or digestive

tablets?” The answer is fairly simple, it stands for India’s fourth largest fast

moving consumer goods company that both consumers and trade respect

and trust unequivocally, and which has an annual turnover of over Rs 15

billion.

The company has kept an eye on new generations of customers with a

range of products that cater to a modern lifestyle, while managing not to

alienate earlier generations of loyal customers.

Dabur is an investor friendly brand as its financial performance shows.

There is an abundance of information for its investors and prospective

information including a daily update on the share price (something that

very few Indian brands do). There’s a great sense of responsibility for

investors’ funds on view. This is a direct extension of Dabur’s philosophy

of taking care of its constituents and it adds to the sense of trust for the

brand overall.

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COMPANY HISTORY

1884

 

Birth of Dabur

1896 Setting up a manufacturing plant

Early 1900s Ayurvedic medicines

1919 Establishment of research laboratories

1920 Expands further

1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi

1979 Sahibabad factory / Dabur Research Foundation

1986 Public Limited Company

1992 Joint venture with Agrolimen of Spain

1993 Cancer treatment

1994 Public issues

1995 Joint Ventures

1996 3 septante divisions

1997 Foods Division / Project STARS

1998 Professionals to manage the Company

2000 Turnover of Rs.1,000 crores

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PRODUCT LINE

Foods

Real

Real Activ

Hommade

Lemoneez

Capsico

Health Care

Baby Care

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

Health Supplements

Dabur Chyawanprash

Dabur Glucose D

Digestives

Hajmola Yumstick

Hajmola Mast Masala

Anardana

Hajmola

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Hajmola Candy Fun2

Hajmola Candy

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

Natural Cures

Shilajit Gold

Nature Care

Sat Isabgol

Shilajit

Ring Ring

Itch Care

Backaid

Shankha Pushpi

Dabur Balm

Sarbyna Strong

Personal Care

Hair Care Oil

Amla Hair Oil

Amla Lite Hair Oil

Vatika Hair Oil

Anmol Sarson Amla

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Anmol Silky Black Shampoo

VatikaHennaConditioning

Shampoo

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

DaburBinaca

Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

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Rural and urban potentialRural-urban profile OVERVIEW OF FMCG SECTOR IN

INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a

total market size in excess of US$ 13.1 billion. It has a strong MNC

presence and is characterized by a well-established distribution network,

intense competition between the organized and unorganized segments

and low operational cost. Availability of key raw materials, cheaper labour

costs and presence across the entire value chain gives India a competitive

advantage.

The FMCG market is set to treble from US$ 14.6 billion in 2008 to US$ 33.4

billion in 2015. Penetration level as well as per capita consumption in most

product categories like jams, toothpaste, skin care, hair wash etc in India

is low indicating the untapped market potential. Burgeoning Indian

population, particularly the middle class and the rural segments, presents

an opportunity to makers of branded products to convert consumers to

branded products. Growth is also likely to come from consumer

'upgrading' in the matured product categories. With 200 million people

expected to shift to processed and packaged food by 2010, India needs

around US$ 28 billion of investment in the food-processing industry.

India is one of the largest emerging markets, with a population of over one

billion. India is one of the largest economies in the world in terms of

purchasing power and has a strong middle class base of 300 million.

Around 70 per cent of the total households in India (188 million) reside in

the rural areas. The total number of rural households are expected to rise

from 145 million in 2007-08 to 153 million in 2009-10. This presents the

largest potential market in the world. The annual size of the rural FMCG

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market was estimated at around US$ 14.5 billion in 2007-08. With growing

incomes at both the rural and the urban level, the market potential is

expected to expand further.

Urban Rural

Population 2007-08 (mn household) 53 145Population 2009-10 (mn household) 69 153% Distribution (2007-08) 28 72Market (Towns/Villages) 3,768 627,000Universe of Outlets (mn) 1 3.3Source: Statistical Outline of India (2008-09), NCAER

An average Indian spends around 40 per cent of his income on grocery and

8 per cent on personal care products. The large share of fast moving

consumer goods (FMCG) in total individual spending along with the large

population base is another factor that makes India one of the largest FMCG

markets.

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OVERVIEW OF VATIKA:

The Vatika brand was launched in 1995 with Vatika

Hair Oil as its first product. In the very first year of its

launch it crossed Rs. 100 million in turnover. Over the years, Vatika has

come to be amongst the company’s highest selling brands.

It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and

later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales

crossed Rs. 1,000 million. From the company’s perspective, Vatika is

expected to continue to drive its growth in the years to come. With its

innovative offerings, the brand aims to become a frontrunner in the

market for hair care and skin care products.

Vatika is a comparatively young brand but is already acknowledged for

the qualitatively influential and pioneering role that it has played in the

evolution of the categories it has had a presence in. Currently, the total

annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika

Hair Oil enjoys a 6.4% market share in the coconut hair oil category

(Source: ACNielsen ORG-MARG, 2007).

Vatika has not just been successful in garnering a premium image but,

today, stands as the preferred and trusted brand of 11.1 million users

(Source: IRS Household Data).

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STP ANALYSIS OF VATIKA HAIR OIL

SEGMENTATION

Vatika Hair Oil was launched at an almost 100% premium to the

market leader. This meant that the segment of the market that dabur

wanted to cater to was the premium segment which valued

nourishment of the hair above the price and it tried to attend to that

segment which was not price sensitive.

TARGETING

This was in line with its proposition and overall brand strategy of a

premium up-market product targeted for individual needs as opposed to

the collectivist culture of the category. It targeted the high-income urban

category of hair oil users. Since the product was expensive it could

mainly cater to the urban market as opposed to the rural market where

consumers are highly price sensitive. Being positioned as having amla,

henna and lemon extracts, the product was targeted towards the young,

contemporary, educated, multi-faceted, achievement-driven and

confident women who were positioned as the Vatika Woman.

POSITIONING

‘Total hair Care’ brand:

The product innovation was fed by the vital consumer insight that

many women in contemporary India are worried about hair problems

caused by urban pollution, frequent change of diet due to geographical

mobility and other factors. Beset by modern-day hair problems, they

are far more inclined to rely on homegrown remedies. By offering hair

oil that combined the benefits of natural products in a single pack,

Vatika created a niche for itself as the ‘total hair care’ brand.

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“Natural” offering:

Vatika is a brand that espouses traditional wisdom about health in a

modern format. It believes that nature has perennial answers to day-to-

day health issues, particularly when it comes to hair care and skin

care. In a world where modern living causes untold stress the Vatika

brand holds out the promise of providing natural ingredients that

rejuvenate and safeguard the human body in an extraordinary way.

This concept is put to work through contemporary, modern products,

offered by Vatika.

The Vatika woman:

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

achievement-driven and confident. It is in the Vatika brand that she

sees a true reflection of her own personal ideals. Through creation of

the concept of Vatika woman, it has tried to carve out a new

positioning in the minds of the new age woman.

MARKETING MIX OF VATIKA HAIR OIL

Vatika Hair Oil has made a huge impact with its innovative product offering,

pricing strategy, easy availability and promotion campaigns. In the

marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix

with respect to Vatika Hair Oil. The mix shall be analyzed as followed:

Product

Price

Place

Promotion

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Product Price Promotion Place

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit Terms

• Advertising &

Promotion

• Public Relations

• Sponsorships

• Internet

Marketing

• Channels

• Location

• Inventory

PRODUCT:

Brand Name: Vatika in Hindi means ‘garden’. The

brand attempts to live up to the promises – beauty and

nature – that are associated with its very name.

Starting with these associations Vatika has

assiduously built a brand that delivers on all these

values through its various product offerings, the

mother brand being Vatika Hair Oil.

Innovative product offering:. Vatika Hair Oil is coconut hair oil with

special ingredients adding value to the product. While coconut oil has

been regularly used by Indian women as a basic hair nutrient, a

combination of herbs and natural products such as henna, amla and

lemon have been used for special hair needs.

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Coconut hair oil provides nourishment to the hair, while henna along

with other herbs coat the hair and protect it from oxidation, thereby

maintaining its natural colour. Amla strengthens hair roots and helps

maintain their natural health and thickness. Lemon with its astringent

action controls sebum flow and helps in prevention of dandruff.

Apart from henna, amla and lemon, it also contains other natural

ingredients like brahmi, neem, bahera, kapurkachari, harar, and ugdha

and sugandhit dravyas.

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

hundreds of thousands of satisfied consumers, have been further

underlined by its attractive packaging. In a category dominated by blue

packs as analogous of pure coconut oils, Vatika broke the norm with its

white and green bottle with a mushroom cap. The green-and-white

colors, used in its packaging, reflect the brands’ natural ancestry and

give it a premium look. These also help Vatika stand out in the cluttered

environment of Indian retail.

Available in:

Bottles 75 ml, 150 ml, 300 ml

Flip cans 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have been

blended together through scientific processes at Dabur’s in-house

research laboratories. Dabur Research Foundation has more than 100

scientists working together to make superior quality products that match

international standards.

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PRICE/QUALITY MATRIX

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

VATIKA

Ideal For

Penetration

Premiere

Offering

Middle

Overpriced Average Real

Bargain

Low

Make The

Sale and

Run

Unhappy

Customers

Cheap

Goods

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PLACE

Vatika products including Vatika Hair Oil are sold in 38 countries

through more than 15 lakh retail outlets and 5,000 distributors who

service the entire country through a wide marketing network.

Dabur’s distribution network extends beyond India in the following

countries as well:

Distribution Network

Central, North & South America

Australia

Asia

Middle East

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North & South Africa

East & West Europe

PROMOTION:

Vatika – the key focus brand of the company – has always been well

supported. The company realized early that, from the perspective of

brand building, it was vital to invest in this brand.

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

beautiful hair without hair problems – that came about as a result of

the extra nourishment through the value addition of henna, amla and

lemon-derived additives.

Creating conceptual awareness: In the initial phase of the

communication, the marketing objective was to create conceptual

awareness about the new product – the goodness of coconut oil

enriched with natural herbs. Vatika was firmly established as the

leader in the new category of value-added hair oils and its promotion

campaign was so successful that the product segment itself came to

be identified with Vatika.

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

reinforced the obvious fact that most coconut oil brands were, not

equipped to combat the effects of pollution, hard water and chemicals

– the major causes of hair ailments and hair deterioration.

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STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

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

comes under the category of health supplements. The segments that it

considers are growing kids, competitive youth, ever-busy housewives and

the aged.

For the growing kids: In today's competitive environment, the children are

under high pressure to excel.

For the competitive youth: Modern life keeps the youth busy and demands

them to be active and efficient.

For ever-busy housewives: The 'homemaker' needs to be fit in order to

shoulder all responsibilities.

For the aged: Old age weakens a person physically and mentally.

After segmenting the population into these categories it aims to keep them

fit and healthy.

TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for

the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults,

housewives, youth and kids. This it is trying to achieve through its

promotion activities by making Amitabh Bacchan and Vivek Oberoi do the

endorsement act. Amitabh has been projected as a user of Chyawanprash

attempting to establish the relevance of DCP amongst the adults in today’s

demanding lifestyle. Vivek, who represents an urban ambitious non-user

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with a mindset that Chyawanprash is not for him, meets his moment of

truth when outperformed by a young Chyawanprash user, thus reaching

out to kids. His final conversion from a non-user to a Chyawanprash user

connects with the Youth. These two ads compliment each other and

connect very well with the targeted consumers

POSITIONING

"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong”

By using a natural language instead of scientific language it is able to

connect with the consumers and is able to achieve a better positioning in

the minds of the Indian health conscious consumer. A category like

Chyawanprash for instance needs to understand that in employing the

category language it loses any chance of expressing its own benefit

distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in

stimulating immune system, relieving stress, improving stamina, fighting

aging through anti-oxidant property, improving lung function, fighting

respiratory infections & building resistance to disease. The brand conveys

this health conscious holistic view of the product.

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

selection, processing and quality control of right herbs along with

scientific and clinical studies – makes DCP a trustworthy offering for

consumers. Consumers view DCP as a product by a trusted brand and

therefore do not need to think twice before making a purchasing decision.

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MARKETING MIX OF DABUR CHYAWANPRASH

Dabur Chyawanprash is the market leader in the chyawanprash segment

and has achieved this with its innovative product offering, pricing strategy,

easy availability and promotion campaigns. In the marketing mix of Dabur,

we shall be discussing the 4 Ps of marketing mix with respect to Dabur

Chyawanprash. The mix shall be analyzed as followed:

Product

Price

Place

Promotion

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Product Price Promotion Place

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit Terms

• Advertising &

Promotion

• Public Relations

• Sponsorships

• Internet

Marketing

• Channels

• Location

• Inventory

PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash

category and enjoys a market share of 61 per cent. In 50s

Dabur pioneered the concept of branded Chyawanprash and

since has invested heavily in product development, clinical

studies and consumer awareness. The product is essentially a

health supplement.

Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits

in maintaining smooth body functioning. The principal ingredient Amla

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(Indian Gooseberry) acts as an anti-oxidant and immune-stimulant. Dabur

Chyawanprash helps in stimulating immune system, relieving stress,

improving stamina, fighting aging through anti-oxidant property, improving

lung function, fighting respiratory infections & building resistance to

disease. It is these properties that make Dabur Chyawanprash a preferred

choice for its users.

Ingredients of Dabur Chyawanprash

Vishwast

Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several

other herbs and herbal extracts.

Special

Vishwast fortified with additional health beneficial herbs like 

Keshar, Akarkara etc.

Available in:

Dabur Chyawanprash is available in three sizes to cater to the needs of

different types of people.

1. One kilogram pack

2. 500 gram pack

3. 250 gram pack

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PRICE

The pricing of Dabur chyawanprash is very competitive. Dabur

chyawanprash uses second-degree price discrimination i.e. more the

quantity, lower the price.

1kg Rs.175.00

500gms Rs.100.00

250gms Rs. 55.00

PRICE/QUALITY MATRIX

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

Ideal For

Penetration

DABUR

CHYAWANPRASH

Premiere

Offering

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Middle

Overpriced Average Real

Bargain

Low

Make The

Sale and

Run

Unhappy

Customers

Cheap

Goods

PLACE

Dabur has a very wide distribution of its products through 1.6 million retail

outlets and 50 C & F agents all over India who distribute products to the

retailers. A distribution of C & F agents and manufacturing locations is

given below.

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Dabur’s distribution network extends beyond India in the following

countries as well:

Distribution Network

Central, North & South America

Australia

Asia

Middle East

North & South Africa

East & West Europe

PROMOTION

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The main form of promotional activities of Dabur chyawanprash is

concentrated towards advertising and it has legible sales promotional

activities.

Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with

prospective buyers. Ads are necessary because the images are still mould

able and fluid and the consumer’s sophistication level is low. Dabur

chyawanprash is advertised on print media as well as on television.

The company has launched three ads, one each with Amitabh, M.S.DHONI

and Vivek, in national electronic media followed by a series of print media

campaign directed towards creating awareness to educate people about

the holistic benefits of Chyawanprash.The ads have been created by

McCann Ericsson and the company would be spending close to Rs 10

crore in promotional campaign this year. The ads would also be translated

in Bengali. These advertisements are supposed to target the old and the

younger generation respectively.

.

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COMPETITOR ANALYSIS OF VATIKA

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The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin,

Emami, Bajaj, Marico, HLL, which together with Dabur have about 64% of

India's domestic market.

Dabur is one of India's largest players in the hair oil segment and the fourth

largest producer of FMCG. It was established in 1884, and had grown to a

business level in 2003 of about 650 million dollars per year. Dabur Hair Oils

have a market share of 19%.

We have tried to analyse the competition for Dabur in the Hair Care

segment as follows:

36

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category.

The pleasantly perfumed hair oil has its main market in the Hindi belt and

also has significant presence in eastern and western India. Its share is 6%

of the total hair oil market.

Emami has existence in hair oil market through Himani Navratan oil and

Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami

oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share

of 4% in hair oil market.

Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond

Drops — currently have a value share of 19 per cent and 12 per cent in their

respective oil categories as per ORG-Marg. Besides, the company has also

decided to enhance its retail presence by nearly 20 per cent from the

existing 5 lakh retail outlets in an attempt to reach the rural parts. Overall it

has a market share of 4% in hair oil market.

Marico’s Parachute is premium edible grade oil, a market leader in its

category. Synonymous with pure coconut oil in the market, Parachute is

positioned on the platform of purity. In fact over time it has become the

gold standard for purity. Parachute's primary targets have been women of

all age. The brand has a huge loyalty, not only in the urban sections of

India but also in the rural sector. It has a market share of 28%.

HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil.

Overall it has a 3% share in hair oil market.

37

COMPETITOR ANALYSIS OF CHYAWANPRASH

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

Baidyanath, Zandu and Himani, which together with Dabur have about 85%

of India's domestic market.

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest

producer of FMCG. It was established in 1884, and had grown to a business

level in 2003 of about 650 million dollars per year, though only a fraction of

that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal

honey) has a market share of 61%.

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

segment as follows:

38

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded

in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has

recently expanded into the FMCG sector with cosmetic and hair care

products; one of its international products is Shikakai (soap pod)

Shampoo. Its Chyawanprash has a market share of 10%.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named

after an 18th-century Ayurvedic. The company focuses primarily on

Ayurvedic products (in 1930, pharmaceuticals were added, but the

pharmaceutical division was separated off about 30 years later).

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

doing 110 million dollars of business annually, though only a portion is

involved with Ayurvedic products, through its Himani line; the company is

mainly involved with toiletries and cosmetics, but also provides

Chyawanprash and other health products. Its market share

39

40

OBJECTIVE OF THE Study’s

Following are the major objective of study: -

1. To study the impact(strong effect or imperission) of Budget Policies on

Marketing Strategy of Dabur Foods.

2. To study the Consumer, Buying behavior.

3. To study the problems faced by Dabur.

41

42

RESEARCH METHODOLOGY

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

successfully launched in the last three years.

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

sources.

Primary data, I proceeded with the drafting of the questionnaire for

consumers was structured as undisguised, & Personal -interview retailers.

I handed distributors & wholesalers and it personally to the respondents to

be analysed.

The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained by

just asking the questions.

c) Questioning is usually faster and cheaper.

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

Secondary data was also collected personally by me, which the

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

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

brochures and also through the Internet. For secondary sources no

fieldwork was employed.

43

In order to amplify the empirical findings from primary and secondary

sources, a survey was conducted both of consumers and retailers

Distributor & Wholesalers in order to gauge the market opinion.

The questionnaire was of multiple choices and the pattern of questions

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

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

questionnaire technique was structured and not disguised as the questions

followed one pattern and reason behind the questionnaire was stated

properly. All the questions were directly related to the subject.

For Dabur chyawanprash and Vatika hair oil.

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

comprised of all the consumers within the geographical region of

Delhi.

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

comprised of all the consumers within the geographical region or

Delhi.

3) Sample size for Distributor & Wholesaler were four in number & the

universe comprised of all the consumers within the geographical

region of Delhi.

44

No other fieldwork was employed to gather the information. The

questionnaires were distributed to the respondents and the data was

collected through primary and secondary sources

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

in analysing and interpreting the data.

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46

CUSTOMER SURVEY RESULTS DABUR VATIKA

AWARNESS LEVEL

INTERPRETATION

It was observed that 90% customers award about the dabur vatika hair oil.

PREFERRED BRAND

NTERPRETATION

It was observed that 30% customers preferred the dabur vatika among the wide range of hair oil.

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SATISFACTION LEVEL

INTERPRETATION

It was observed that the satisfaction levels are high about the quality of the vatika hair oil.

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CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL

INTERPRETATION

It was observed that 100% of the customers already award about the DABUR CHYAWANPRASH

PREFERRED BRAND

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INTERPRETATION

It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH

SATISFACTION LEVEL

INTERPRETATION

It was observed that the satisfaction level are high of the customers about the DABUR CHYAWANPRASH

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SWOT ANALYSIS OF DABUR

STRENGTHS

Strong presence in well defined

niches( like value added Hair Oil

and Ayurveda specialities)

Core knowledge of Ayurveda as

competitive advantage

Strong Brand Image

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D – a key strength

WEAKNESS

Seasonal Demand( like

chyawanprash in winter and

Vatika not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

Limited differentiation (Vatika)

Unbranded players account for

the 2/3rd of the total

market(Vatika)

OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the

middle class

Creating additional consumption

pattern

THREATS

Existing Competition( like

Himani, baidyanath and Zandu

for Dabur Chyawanprash and

Marico,Keo Karpin, HLL and

Bajaj for Vatika Hair Oil)

New Entrants

Threat from substitutes (like

Bryllcream for Vatika hair oil)

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DISTRIBUTION

Supply chain: Dabur has steadily improved its procurement and

distribution systems to achieve a significant reduction in material costs.

Dabur has an extensive supply chain and distribution network that has

grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen

manufacturing locations, six mother-warehouses and over 50 Carrying and

Forwarding Agents (CFAs) that distribute more than 1,000 SKU’s to several

thousand stockists and dealers.

MIS: An in-house developed, easy-to-use, Intranet based data-warehouse

displays as-of-yesterday sales, stock, receivables, banking, and other MIS.

Over 5,000 ASP pages meet almost all reporting requirements and make

this a single source of MIS for all levels of decision makers.

VSATs: This Success paved the ground for the company's supply chain

initiative. Fifty-five Ku Band TDMA VSATs were used to link primary

distributors to the system. Factories were hooked up using PAMA

(Permanent Assigned Multiple Access) VSATs. At some locations VPNs

had to be used because it was not possible to set up a dish. The integrated

primary and secondary system has a number of unique features. The

features like tight integration of schemes, stockists credit limit control,

automated banking of cheques, and online cheque reconciliation have

obvious advantages in the primary distribution. These are basically

extensions to the MFG/PRO ERP system and not core customizations. The

integrated system allows each Area Manager to plan for the month's sales

forecasts, stockist’s performance, and sales officers' performance. The

integration allows better control on pipelines in primaries and secondaries,

brings down inventories, and offers better control on production and sales

against a confirmed forecast. The idea is to increasingly shift focus from

primaries to secondaries. Schemes based on secondary volumes will help

control secondary pipelines and sales. Primary sales will therefore come

from a resultant 'pull' from secondary replenishments. Further, sales order

servicing can be improved by taking orders through the Internet.

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RECOMMENDATIONS

Focus on growing core brands across categories.

Reaching out to new geographies, within and outside India.

Improve operational efficiencies by leveraging technology.

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

Provide consumers with innovative products within easy reach.

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

Position Dabur Chyawanprash as not more of a medicine but as something, which is necessary for health.

More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an initiative to occupy shelf space.

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CONCLUSIONS

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

swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki,

Dashmul, Ghrit and several

Other herbs and herbal extracts. The market. The consumer’s patriotic love

for tea and coffee is unfired. Chyawanprash are yet to establish their

supplement use in the average household here in lays the great

opportunities. Within the market, it is safe to conclude that dabur has hit

off rather well with the masses. dabur has clearly lost it head start

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

enjoys rest of the market share. This could be well attributed to dabur

successful ATA (Availability, Taste and Affordability) marketing module,

the attributes most rated by the consumers. Lack of publicity has

hampered the growth progress of the brand so aggressive advertising is

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

such as that of Chyawanprash by vednath, Chyawanprash with its

‘sonacahndi, ‘Minute- made’ and also US food giantssDel Monte are ready

to hit the Chyawanprash market very soon.

Vatika hair oil has no major competition except Australian Product

Tabasco. As a new product so people are not able to digest it yet Dabur is

getting 8 crores from Vatika hair oil in which accounts for 4 crores,

Lemoneez 1 Crore & others 3 Crores.

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

Chyawanprash industry, a company has to create perceptions and cover

them into realities. It is an expensive proposition requiring huge

expenditure on advertising, sponsorships and media. Thus, the ideal

company will be the one, which combines the high-end technology with

consumer insight.

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

Many food companies including Dabur got benefited from it. On the

analysis of survey it was found that target Market of Chyawanprash want

quality benefit rather then Price benefit, so it is better to stress on quality

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

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

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

brand.

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

getting excise benefit from the Government so Dabur should pass slight

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

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

market share of vatika hair oil.

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CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us

to study the consumer perception for hair oil.

Any information provided by you will strictly be used for Academic

Purpose.

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

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

2.Which brand of Hair Oil do you use?

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

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

1

2

3

4

5

60

4.What are the primary reasons for which you use this particular brand?

Non sticky

Brand Loyalty

Fragrance

Price

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

TV

Internet

Word of Mouth

Print

6. If your brand is not available you would?

Purchase another brand

Wait for it to be available

Go for a substitute

Buy what is offered by the retailer

7.Which pack size do you prefer?

75 ml

150 ml

300 ml

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

Availability

Price

Family size

Storage

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9.How often do you buy?

Once in 15 days

Once a month

Once in two months

10.Are you satisfied with your brand?

Yes

No

Personal Information: -

Age:

Location:

Income (per month):

(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000

(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,00

62

RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us

to study the consumer perception for the Hair Oil category that we have

chosen to study.

Any information provided by you will purely and strictly be used for

Academic Purpose only.

1.Which brands of Hair Oil do you stock?

Marico

HLL

Keo Karpin

Dabur Vatika

2.Out of these, which are the most preferred?

Marico

HLL

Keo Karpin

Dabur Vatika

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

Brand loyalty

Price

Availability

No reason

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4.What is the profile of your typical consumer?

High income

Middle income

Low income

5.What schemes are you offered by the companies?

Price discounts

Buy one get one free

Others

6.What schemes does a consumer prefer most?

Price discounts

Buy one get one free

Others

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

consumers’ preference?

Yes

No

8.Does a change in price affect their preferences?

Yes

No

Personal Information: -

Location of store:

64

CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us

to study the consumer perception for chawanprash.

Any information provided by you will strictly be used for Academic

Purpose.

1.Which brands of Chawanprash are you aware of?

Zandu

Himani

Baidyanath

Dabur

2.Which brand of Chawanprash do you use?

Zandu

Himani

Baidyanath

Dabur

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

1

2

3

4

65

4.What are the primary reasons for which you use this particular brand?

Health

Brand Loyalty

Taste

Price

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

TV

Internet

Word of Mouth

Print

6.If your brand is not available you would?

Purchase another brand

Wait for it to be available

Go for a substitute

Buy what is offered by the retailer

7.Which pack size do you prefer?

1 kg

500 gm

250 gm

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

Availability

Price

Family size

Storage

66

9.How often do you buy?

Once a month

Once in two months

Once in six months

10.Are you satisfied with your brand?

Yes

No

Personal Information: -

Age:

Location:

Income (per month):

(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000

(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,000

67

RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us

to study the consumer perception for the Chyawanprash category that we

have chosen to study.

Any information provided by you will purely and strictly be used for

Academic Purpose only.

1.Which brands of Chyawanprash do you stock?

Zandu

Himani

Baidyanath

Dabur

2.Out of these, which are the most preferred?

Zandu

Himani

Baidyanath

Dabur

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

Brand loyalty

Price

Availability

No reason

68

4.What is the profile of your typical consumer?

High income

Middle income

Low income

5.What schemes are you offered by the companies?

Price discounts

Buy one get one free

Others

6.What schemes does a consumer prefer most?

Price discounts

Buy one get one free

Others

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

consumers’ preference?

Yes

No

8.Does a change in price affect their preferences?

Yes

No

Personal Information :-

Location of store:

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BIBLIOGRAPHY

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BOOKS:

Kotler Philip: Marketing Management Malhotra Naresh K: Marketing research

WEBSITES:

WWW.Dabur.com

NEWSPAPERS:

Business Standard Economics Times

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