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Introduction to the Topic


The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started a health care products manufacturing facility in a small Calcutta pharmacy. In 1896, as a result of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for mass production of formulations. In early 1900s, Dabur entered the specialized area of nature based Ayurvedic medicines. In 1919, Dabur established research laboratories to develop scientific processes and quality checks. In 1936, Dabur became a full-fledged company with the name Dabur India (Dr. S.K. Burman) Pvt Ltd. Dabur shifted its operations to Delhi in 1972. Dabur became a Public Limited Company in 1986 and Dabur India Limited came into existence after reverse merger with Vidogum Limited. In 1992, Dabur entered into a joint venture with Agrolimen of Spain to manufacture and market confectionary items in India. In 1994, Dabur raised its first IPO. In 1998, day to day running of the company was handed over to professionals. In 2000, Dabur achieved a turnover of Rs 1000 crores. In 2005, Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in 2006. Some of the well-known brands of Dabur are: Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika.

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 Indias 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 forshampoo or digestive tablets? The answer is fairly simple, it stands for Indias 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). Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.

COMPANY PROFILE

COMPANY HISTORY

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularizing and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms.

1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. 1930 - Automation and up gradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India. 1949 - Launched Dabur Chyawanprash in tin pack
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Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India. 1957 - Computerization of operations initiated 1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses.

1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care

Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source 1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country. 1998 - Burman family hands over management of the company to professionals 2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1, 000 crores. Across a span of over 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses.

2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialized area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets. 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore

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

Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola Candy Hajmola Candy Fun 2

Pudin Hara (Liquid and Pearls) Pudin Hara G Dabur Hingoli

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Natural Cures Shilajit Gold Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Backaid Shankha Pushpi Dabur Balm Sarbyna Strong

Personal Care

Hair Care Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla

Hair Care Shampoo

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Anmol Silky Black Shampoo Vatika Henna Conditioning Shampoo Vatika AntiDandruff Shampoo Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel Dabur Red Toothpaste Babool Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush

Skin Care

Gulabari
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Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda Ayurveda Vikas

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COMPANY PROFILE

ITC is one of India's foremost private sector companies with a market capitalization of over US $ 7.5 billion and a turnover of US $ 2.6 billion. Rated among the World's Leading Companies by Forbes magazine, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Branded Apparel, Greeting Cards and Packaged Foods & Confectionery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing 14

shareholder value. ITC practises this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new Businesses are expected to garner a significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to be rated for Corporate Governance by ICRA, an associate of Moody's Investors Service, which accorded it the second highest rating, signifying "a high level of assurance on the quality of corporate governance."

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ITC employs over 15,000 people at more than 60 locations across India. Ranked among India's most valuable companies by the 'Business Today' magazine, ITC continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 1, 37, 916 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

Key points
Strong volume growth in the core cigarette business in Q1FY200511% year-on-year, among the highest in the previous ten quarters. This is the third consecutive year of no excise duty increase and the second year of no price hike in cigarettes, leaving scope for the company to hike cigarette prices and boost its profits further. Diversification is paying off with non-cigarette businesses like hotels, paper and agriproducts turning around. The stock is presently quoting at 14.3x FY2005 earnings, which is attractive, and we recommend buying this stock.

ITC's core business of cigarettes, we believe, will continue to grow at 4% in FY2005 in volume terms. Besides, it has made an entry into bakery and other fast moving consumer goods (FMCG) product lines (such as soaps and detergents), which will benefit from its strengths in distribution. Meanwhile almost all of ITC's earlier diversifications are paying offthe hotels, paper and the agriproduct ventures are likely to return the cost of capital invested in the next couple of years. ITC quotes at 14.3x FY2005E earnings. Its capital expenditure needs are limited and litigation risks have all but disappeared. Hence we
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expect higher dividend pay-outs. We recommend buying this Apple Green stock

Key highlights of Q1FY06 results and interaction with ITC management

Core cigarette business growth of 11% in Q1FY05 partially due to early stocking at the dealer end in anticipation of a hike in excise duty in the Union Budget presented in July 2004.

Our reading is that volume growth in cigarettes stood at a strong 7-7.5% in Q1FY2005 (adjusted for the inventory build-up prior to the budget). Filter cigarettes now account for over 77% of overall turnover.

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The market share of ITC in cigarettes is around 69%. Growth in the agri segment was led by increased sales of soya in the quarter. Substantive increase in capacities in paper and paperboards with expansion at the Bhadrachalan plant (to be completed by October 2004) and the 65,000tpa (which was acquired by ITC from BILT) located at Kovai commenced production during the quarter.

Increase in other expenditure mainly coming from increased advertisement spends before the "Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003"

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History of ITC Ltd

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.

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Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.

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The Core Competency

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. Its highly popular portfolio of brands includes India Kings, Gold Flake, Wills, Scissors, Capstan, Berkeley and Bristol.

ITC's leadership is founded on its core strategy of continuously significant enhancing investments product in values product through design,

manufacturing technology, quality, marketing and distribution. In just the last 5 years, ITC has made capital investments of over Rs. 7 billion in its cigarettes business. In ITC, one of the pioneers of market research in India, the consumer is still the King. The Company continuously endeavours to provide its consumers products that are benchmarked to international quality. This strategic focus on the consumer has paid ITC handsome dividends. The most important of these is its enriched product mix, unmatched by competition. ITC's share of filter cigarettes in the country is more than 70%.

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In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-Val, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle East. The response to these brands has been encouraging. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of productivity and very contemporary work environment.

ITC's FMCG businesses have one of the largest retail networks in the country, consisting of over 2 million retailers. Its reach covers a wide range of the retail spectrum, from premium outlets in the metros to small shops in the interiors of rural India.

In Q1FY2005, cigarette volumes registered an increase of 11% year on year, which is among the highest growth rates seen in the previous ten quarters (see chart below). We believe that a part of this surge in volumes may be the normal build-up of stocks at the dealer level prior to the announcement of the Union Budget. As per our estimates the growth in cigarette volumes for Q1FY2005 stood at 7-7.5%, which is still higher than the 4% growth clocked over the past four quarters.

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ITC's Cigarettes business has won numerous awards for its quality, environmental management systems and product excellence:

The Kolkata factory has won the prestigious Greentech Safety Gold Award for the year 2003-2004 in the manufacturing sector. This award is in recognition of the high level of performance that the unit has achieved in Environment Health & Safety (EHS).

ITC's cigarette factories in Kolkata, Bangalore and Munger have been awarded the OHSAS:18001 Certificate by Det Norske Veritas (DNV) for their Occupational Health and Safety Management Systems (OHSMS).

The Kolkata factory has been placed First in Category 'B' for having made the best efforts towards Safety Management in the Safety Contest of the Confederation of Indian Industry-Eastern Region (CII-ER).

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ITC has been awarded the "Best Manufacturer of Cigarettes" and "3rd Best Exporter of Tobacco Products" for 2003, by the Tobacco Board of India.

The Saharanpur factory has won the "GOLD" Award, 2003 on Occupational Safety from The Royal Society for the Prevention of Accidents (RoSPA), UK.

The Kolkata factory was the first cigarette factory in the world to receive the ISO 14001 accreditation for their environmental management systems. The Saharanpur and Bangalore factories have also received the ISO 14001 certification.

The Munger, Saharanpur and Bangalore factories have received the prestigious Sword of Honour Award from the British Safety Council for highest standards of safety.

All cigarette factories have ISO 9002 quality certification. ITC's Tobacco Technology Centre at Peenya, Bangalore has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation.

The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern Region) for 1998.

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PARENT UNIT OF ITC LIMITED


Registered Office

Virgina House 37 Chowringhee Calcutta 700 071 Ph: (09133) 288 6426/226/0034 Fax: (09133) 217/2258 Email: itcses@cal3.vsnl.net.in

Plant location

SAHARANPUR BANGALORE CHENNAI CALCUTTA WEST BENGAL

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SISTER CONCERNS COMPANIES

A. IN INDIA

ITC Bhadrachalam Paperboards Ltd (56.00%) BFIL Finance Ltd (99.99%) BFIL Securities Ltd (99.98%) MRR Trading & Investment Ltd (99.98%) ITC Hotels Ltd (71.23%) Srinivasa Resort Ltd (68%) Bay Island Hotels Ltd (100%) Greenace Holding Ltd (100%) Fortune Park Hotel Ltd (99.99%) Russell Credit Ltd (100%) ITC Infotech Ltd (100%) All India Tobacco Company Ltd (100%) Elan Enterprises Ltd (100%) ITC Global Holdings Pvt Ltd (100%)

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Brands
SNo. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Name of the Product India King Classic Gold Flakes Gold Flakes King Filter Wills Wills Light Wills King Wills Filter Wills Flakes Silk cut Tiger Charms Filter King Charms Charminar Charminar Special Cavenders Cavenders Filter Cavenders Leaf Uttam Cavenders Magnum Multi National Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Indian Tobacco Company Wazir Sultan Tobacco Wazir Sultan Tobacco Wazir Sultan Tobacco Wazir Sultan Tobacco Godfrey Phillips India Ltd. Godfrey Phillips India Ltd. Godfrey Phillips India Ltd. Brooke Bond India Ltd. Godfrey Phillips India Ltd.

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22. 23. 24.

Four Square King Four Square Filter Four Square Special Filter

Godfrey Phillips India Ltd. Godfrey Phillips India Ltd. Godfrey Phillips India Ltd.

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Research Methodology

Research Plan Data source Research approach : : Primary data and secondary data

Observation & Survey Questionnaire for consumers, retailers & dealers : Sampling unit Sample size 100, Sampling

Research instrument : Sampling Plan procedure random Contact method Field work plan

: :

Personal Survey place & time

Research & common platform, refer to a knowledge. Another definition of research & a careful investigation or enquiry specially through search for new fact in any brand of knowledge. Before embarking upon the research plan the research objective were specified. The clarity of the objective was helpful in carrying forth the project plan with core & with encumbrance.

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Methodology used in survey Data collection : A structure from which is primary. In this sources of information was used in this research was designed in order to find out the various record information & also to fulfill the objectives of the project. All form filled by myself taking a part of on English. Some question were framed in the forms in directly so as to gather the information which . Would have been asked directly might have offered the retailers so that this had to be frame indirectly. Sample Selection : Area of study: I choose the routes to know the market conditions of the DABUR and ITC

Methodology Adopted As the purpose of the project report is to analyse the consumable products successfully launched in the last three years. The data was collected both with the help of primary as well as secondary sources. For primary data, I proceeded with the drafting of the questionnaire for consumers was structured as undisguised, & Personal -interview retailers. Distributors & wholesalers and it was handed personally by me to the respondents to be analysed. The questionnaire method was useda) b) To get first and relevant and unbiased information Questionnaire provides versatility and solutions can be obtained by just asking the questions.
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c) d)

Questioning is usually faster and cheaper. Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the company has furnished for the general public. The secondary data was gathered with the help of various magazines, newspapers, journals, brochures and also through the internet. For secondary sources no field work was employed. In order to amplify the empirical findings from primary and secondary sources, a survey was conducted both of consumers and retailers Distributor & Wholesalers in order to gauge the market opinion. The questionnaire was of multiple choice and the pattern of questions was as simple as possible. With every question, multiple choices were given and respondents were asked to select one of them. The questionnaire technique 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.

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For Dabor 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. For ITC I selected same questions for ITC Personnel care Products

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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)

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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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SWOT ANALYSIS OF ITC LTD.

Organization performs SWOT(Strength, Weakness, Opportunity, Threats) analysis to identify and evaluate their competitive position.

STREGTHS:
The company has excellent distribution system. The company has built a strong image among the customers. The company has an excellent distribution system. The company experiences excellent Brand loyalty for its Products from the customers. The company has made its Packaging attractive which lures the customers and consequently the products are favorite among the customers.

WEAKNESSES

Some products have high prices as compared to the other products OF Godfrey Philips India Ltd. & Gallaher Group. The company branches are not spread through out the region; as a result load of the work at the regional offices are tremendous. The company pays less attention towards advertisement as against its competitors. The brewery of the company is old and not up to expectation of modern times.

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OPPORTUNITIES
India has a vast potential market, which the company can get hold up. The company can prove to be major threats for its competitors if it increases its marketing efforts. ITC Ltd. should concentrate on the premium segment market.

THREATS
The major threat that company faces is from its competitors who are introducing products with more features at lower cost backed by aggressive promotional scheme .

The new packaging style introduce by the company for the beer i.e. in Tin is posing threat to the existing bottle packing system. The arrival of the MNC is a major serious threat for the company.

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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 upmarket 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.

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POSITIONING

Total hair Care brand The product innovation was fed by the vital consumer insight that many women in contemporary India are worried about hair problems caused by urban pollution, frequent change of diet due to geographical mobility and other factors. Beset by modern-day hair problems, they are far more inclined to rely on homegrown remedies. By offering hair oil that combined the benefits of natural products in a single pack, Vatika created a niche for itself as the total hair care brand.

Natural offering Vatika is a brand that espouses traditional wisdom about health in a modern format. It believes that nature has perennial answers to day-to-day health issues, particularly when it comes to hair care and skin care. In a world where modern living causes untold stress the Vatika brand holds out the promise of providing natural ingredients that rejuvenate and safeguard the human body in an extraordinary way. This concept is put to work through contemporary, modern products, offered by Vatika.

The Vatika woman

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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.

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MARKETING MIX OF VATIKA HAIR OIL Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The mix shall be analyzed as followed: Product Price Place Promotion

Product Product Variety Quality Design Features Brand Names Services

Price List Price Discount Financing Schemes Credit Terms

Promotion Advertising Promotion Public Relations Sponsorships Internet Marketing &

Place Channels Location Inventory

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PRODUCT

Brand Name: Vatika in Hindi means garden. The brand attempts to live up to the promises beauty and nature that are associated with its very name. Starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product offerings, the mother brand being Vatika Hair Oil.. Innovative product offering:. Vatika Hair Oil is coconut hair oil with special ingredients adding value to the product. While coconut oil has been regularly used by Indian women as a basic hair nutrient, a combination of herbs and natural products such as henna, amla and lemon have been used for special hair needs. Coconut hair oil provides nourishment to the hair, while henna along with other herbs coat the hair and protect it from oxidation, thereby maintaining its natural colour. Amla strengthens hair roots and helps maintain their natural health and thickness. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. Apart from henna, amla and lemon, it also contains other natural ingredients like brahmi, neem, bahera, kapur, kachari, harar, dugdha and sugandhit dravyas.

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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 colours, 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 Flip cans 75 ml, 150 ml, 300 ml 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 Daburs 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

In the traditional coconut hair oil category, which presumably had price sensitive consumers, Vatika Hair Oil with its value added proposition henna, amla and lemon in a pure coconut oil broke this myth when it launched at almost a 100% premium to the market leader; even with such a pricing strategy it was able to garner a significant share from the leader in the very first year of its launch.

The table above shows that Dabur Vatika is one of the highest priced of hair oils since it targets the higher income class and also that the prices have remain unchanged since 1999.

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PRICE/QUALITY MATRIX

Price Quality Luxury High Segment VATIKA Overpriced Middle Average Real Bargain Ideal Penetration For Premiere Offering High Middle Low

Make Low

The

Unhappy Customers

Cheap Goods

Sale and Run

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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.

Daburs distribution network extends beyond India in the following countries as well:

Distribution Network

Central, North & South America


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Australia Asia Middle East North & South Africa East & West Europe

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PROMOTION

Vatika the key focus brand of the company has always been well supported. The company realised early that, from the perspective of brand building, it was vital to invest in this brand.

. Vatika Hair Oils first promotion: It focussed 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
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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. ADVERTISING

Advertising is some form of paid-for method of communicating with the target audience to inform, educate, reinforce or persuade, leading to mutually satisfactory exchange Nothing can happen without establishing the brands heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mouldable and fluid and the consumers sophistication level is low. Vatika Hair Oil uses a number of advertising media like television, print, internet, outdoor media which includes hoardings. Events: In a series of other promotional activities, Vatika has been associated with shows and sponsored events such as the Vatika Super Model India 2001

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and Vatika Zee Sangeet Awards. It has also had a strong association, since its inception, with Movers and Shakers the popular TV show. Celebrity Endorsements: idea of hair oil The

using an extraordinary that offered extra was

nourishment

communicated through campaigns

featuring icons such as Mandira Bedi, Shefali Chhaya and Sudha Chandran all modern, young women perceived to have that extra edge in their personality.A number of commercials over the years have featured personalities like Aditi Govitrikar, Preeti Jhangiani and Shweta Jaishankar.To infuse the values of youthfulness and natural beauty, Rani Mukherjee is the current brand ambassador

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CUSTOMER SURVEY RESULTS DABUR VATIKA

AWARNESS LEVEL

40 35 30 25 20 15 10 5 0 PARACHUTE KEO KARPIN NIHAR HAIR AND CARE VATIKA


PERCENTAGE

PREFERRED BRAND

40 35 30 25 20 15 10 5 0 PARACHUTE KEO KARPIN NIHAR HAIR AND CARE VATIKA


PERCENTAGE

52

SATISFACTION LEVEL

4 3.5 3 2.5 2 1.5 1 0.5 0 PARACHUTE NIHAR VATIKA


RATING(1-LOW 5-HIGH)

REASON TO BUY THE PREFFERED BRAND

50 40 30 20 10 0 NON STICKY BRAND LOYALTYRAGRANCE F PRICE


PERCENTAGE

53

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

80 70 60 50 40 30 20 10 0 TV INTERNET WOM PRINT


PERCENTAGE

UNAVAILABILITY OF PREFERRED BRAND

45 40 35 30 25 20 15 10 5 0 PURCHASE ANOTHER BRAND WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER


PERCENTAGE

PREFERRED PACK SIZE

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60 50 40 30 20 10 0 75ml 150 ml 300 ml


PERCENTAGE

REASON TO SELECT PREFERRED PACK SIZE

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


PERCENTAGE

55

FREQUENCY OF PURCHASE

70 60 50 40 30 20 10 0 15 DAYS ONE MONTH TWO MONTHS


PERCENTAGE

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RETAIL SURVEY RESULTS DABUR VATIKA

1) Which brands of Hair Oil do you stock?

80 70 60 50 40 30 20 10 0 marico hll karrpikeo karpin vatika


PERCENTAGE

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

50 45 40 35 30 25 20 15 10 5 0 marico hll karrpikeo karpin vatika


PERCENTAGE

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

50 40 30 20 10 0 brand loyalty price availability no reason


PERCENTAGE

4) What is the profile of your typical consumer?

50 40 30 20 10 0 high income middle income low income


PERCENTAGE

58

5) What schemes are you offered by the companies?

40 35 30 25 20 15 10 5 0 price discount buy one get one others


PERCENTAGE

6) What schemes does a consumer prefer most?

60 50 40 30 20 10 0 price discount buy one get one others


PERCENTAGE

59

7) According to you, does in-store advertising have an affect on the consumers preference?

60 50 40 30 20 10 0 yes no
PERCENTAGE

8) Does a change in price affect their preferences

60 50 40 30 20 10 0 yes no
PERCENTAGE

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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.

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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 todays demanding lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads compliment each other and connect very well with the targeted consumers

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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 antioxidant 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 Daburs 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 Product Variety Quality Design Features Brand Names Services

Price List Price Discount Financing Schemes Credit Terms

Promotion Advertising Promotion Public Relations Sponsorships Internet Marketing &

Place Channels Location Inventory

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PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. Known as the elixir of life, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immuno-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.

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Packaging

The figure above shows the evolution of the packaging of Dabur Chyawanprash. Dabur continuously innovates the package and branding of its chayawanprash. It launched Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded Chyawanprash in India. Later Dabur came out with its new packet of Chyawanprash with Amitabh Bachchan as their brand ambassador. It also received Brand Relaunch of the Year award from IMA.

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 500gms 250gms Rs.175.00 Rs.100.00 Rs. 55.00

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PRICE/QUALITY MATRIX Price Quality Luxury High Segment Ideal For Penetration DABUR CHYAWANPRASH Overpriced Middle Bargain Make Low Sale Run The and Unhappy Customers Cheap Goods Average Real Premiere Offering High Middle Low

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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.

Daburs distribution network extends beyond India in the following countries as well:

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Distribution Network

Central, North & South America Australia Asia Middle East North & South Africa East & West Europe

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PROMOTION

The main form of promotional activities of Dabur chyawanprash are concentrated towards advertising and it has neglible sales promotional activities.

Advertising Nothing can happen without establishing the brands heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mouldable and fluid and the consumers sophistication level is low. Dabur chyawanprash is advertised on print media as well as on television. The company has launched two ads, one each with Amitabh 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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Advertisement showing Vivek Oberoi

A little boy suggests his brother to have Dabur Chyawanprash everyday.

To which the brother replies, Mujhe iski kya zaroorat?

The boy asserts, Zaroorat hai! and starts running.

The big brother follows him but is unable to catch him using every way.

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Running with super energy the boy

...the big brother also dives in the

dives into the river. Not to be left behind... river but ultimately stops when he get tired

With no option left he agrees with his younger brother, maan gaye guru, tere Dabur Chyawanprash ko

The ad ends on the big brother promising to have a spoon of the chyawanprash everyday. But Our younger one insists on two spoons.

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COMPETITOR ANALYSIS

The key competitors 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:

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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 is 12%.

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CUSTOMER SURVEY RESULTS DABUR CHYAWANPRASH

AWARNESS LEVEL
100 90 80 70 60 50 40 30 20 10 0 ZANDU HIMANI BAIDYANATH DABUR

PERCENTAGE

PREFERRED BRAND

60 50 40 30 20 10 0 ZANDU HIMANI BAIDYANATH DABUR


PERCENTAGE

78

SATISFACTION LEVEL

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 ZANDU HIMANI BAIDYANATH DABUR

RATING(1-LOW 5-HIGH)

REASONS FOR SELECTING A PARTICULAR BRAND

70 60 50 40 30 20 10 0 HEALTH BRAND LOYALTY TASTE PRICE


PERCENTAGE

79

HOW DID YOU COME TO KNOW ABOUT THIS BRAND

80 70 60 50 40 30 20 10 0 TV INTERNET WOM PRINT


PERCENTAGE

UNAVAILABILITY OF PREFERRED BRAND

40 35 30 25 20 15 10 5 0 PURCHASE ANOTHER BRAND WAIT BUY SUBSTITUTE WHATEVER OFFERED BY RETAILER


PERCENTAGE

80

PREFERRED PACK SIZE

50 40 30 20 10 0 1 Kg 500 gm 250 gm
PERCENTAGE

REASON TO SELECT PREFERRED PACK SIZE

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


PERCENTAGE

81

FREQUENCY OF PURCHARE

60 50 40 30 20 10 0 ONE MONTH TWO MONTHS SIX MONTHS


PERCENTAGE

RETAILER SURVEY RESULTS DABUR CHYAWANPRASH

1) Which brands of Chyawanprash do you stock?

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100 80 60 40 20 0 ZANDU HIMANI BAIDYANATH DABUR


PERCENT

2) Out of these which are the most preferred?

80 70 60 50 40 30 20 10 0 ZANDU HIMANI BAIDYANATH DABUR

RATING(1-LOW 5HIGH)

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

83

60 50 40 30 20 10 0 brand loyalty price availability no reason


PERCENTAGE

4) What is the profile of your typical consumer?


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

5) What schemes are you offered by the companies?

84

60 50 40 30 20 10 0 price discount buy one get one others


PERCENTAGE

6) What schemes does a consumer prefer most?


70 60 50 40 30 20 10 0 price discount buy one get one others
PERCENTAGE

7) According to you, does in-store advertising have an affect on the consumers preference?

85

70 60 50 40 30 20 10 0 yes no
PERCENTAGE

8) .Does a change in price affect their preferences?

60 50 40 30 20 10 0 yes no
PERCENTAGE

86

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 SKUs 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, stockists 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
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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, and by setting stocking norms and replenishing stocks to improve ROI of stock holders.

ANSOFFS PRODUCT MARKET EXPANSION GRID

MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish the relevance of Chyawanprash in an increasingly tough and demanding lifestyle, for the entire family. As a market leader, Daburs focus has been to increase the relevance of this time-tested and proven product in the family - both for users and non users - and increase penetration. In their new campaign they have tried to establish the fact that
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Chyawanprash, with its well - being properties, gives an edge to the users and dispel the myth that it should be consumed in illness or is meant only for Children or the aged.

MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for the future. An international business division has been set up within the company to promote exports and it expect this business to grow steadily in the coming years. The company plans to focus on Russia and CIS countries along with Afghanistan, West Indies and the Asia Pacific region. It has also entered the North American markets by appointing distributors and initiating marketing of products to the ethnic Indian segment. The company has already been exporting hair oils, shampoos and Hajmola candies to Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a local partner to manufacture and market its products. Dabur will hold a majority stake in this joint venture.

PRODUCT DEVELOPMENT:

Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first quarter this fiscal, would be investing significantly in the launch of several new products including Dabur Herbal Toothpaste and Vatika Henna Conditioning hair packs over the coming months.

The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry cannot be defined only by the performance of large players. Smaller companies are now dictating terms and defining the market. DIL will launch new products backed by adequate research."

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DIVERSIFICATION: Diversification across product segments and markets is one of the key factors in favour of Dabur India. In 2001-02, Dabur India had three major revenue contributors FMCG products, pharmaceuticals and ayurvedic specialties, accounting for 76 per cent, 14 per cent and 7 per cent respectively, of its revenues. Dabur's FMCG product basket includes such strong brands as Dabur Chyawanprash, Vatika hair products, Hajmola digestive candy, Pudin Hara, Dabur Lal Dant Manjan and Dabur Lal Tail massage oil. In pharmaceuticals, Dabur India markets branded as well as bulk formulations, both in the domestic and export markets; oncologicals is a key focus area. Dabur's anticancer molecule DRF 7295 is currently in Phase I clinical trials on humans.

In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has entered the toilet soap market besides expanding its over-the-counter (OTC) medicine range with 10 new additions over the next few months. The company has begun test marketing toilet soaps under the brand name Vatika in West Bengal. There is a single variant, containing saffron and honey, right now and Dabur is positioning it on the herbal platform. Manufacturing of the soaps category is being outsourced at present

Besides diversifying its product portfolio under the Consumer Care Division (CCD) with a foray into soaps, DIL has also decided to enhance focus on the Consumer Healthcare Division (CHD) this fiscal. The newly created CHD division within DIL deals in prescription-based Ayurvedic medicines and over-the-counter (OTC) products. Traditionally a business with low growth prospects, CHD closed 2004-05 at Rs 107.8 crore.

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Some of the existing OTC products of DIL include cough and cold formulation Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi .

The company plans to launch other products under its own brand name in Russia and has already launched Dabur Boro Glow.

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Findings

THE NEW DABUR ENTITY

The New Dabur Identity modernizes the 100-year old equity of the Dabur brand by subtly transforming the tree. While it retains the essence of the banyan tree, it now projects a contemporary image, in consonance with today's lifestyle.

The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a symbol of fertility. The new Dabur identity retains these enduring and valuable attributes, while it adds a fresh, healthy and holistic dimension to the tree. The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's heritage, commitment and stability through the form and colours of the tree; its branches and leaves. It also conveys that the brand stands for wellness across age groups. Taken as a whole, the tree appears well rooted, implying stability; and its abundant canopy implies that it can provide amply for those who seek its produce and shade. Further, the entire image, being well-proportioned, evokes a harmonious, wellbalanced, wholesome and holistic brand. In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a heaven for creatures it generously harbours in its foliage, as well as in the shade of its canopy. The tree is held auspicious as it spreads through the three spheres with its roots

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meshing through the earth, its trunk rising through the terrestrial world and its branches reaching into the heavens. This symbolism also occurs in cultures across the world. Keeping these vital associations in mind, the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy as well as its future aspirations. It now takes on a younger avatar, in its form and colours, and strikes a rapport with the consumer as a proactive brand with a commitment to wellness and to nurturing an active lifestyle across age groups. Thus, through its form and colours, the new logo identity combines freshness and stability. It expresses a brand that is positive, proactive and progressive. The burst of leaves and their colours symbolize growth, rejuvenation and inner strength. The form and colour of the trunk convey growth, youthfulness and stability. Thus, the logo identity lock up presents Dabur as a stable yet evolving, contemporary, vibrant and active brand cherishing nature as the source of all its endeavours along with an abiding commitment to the wellness of consumers across age groups

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USEFULNESS AND IMPORTANCE OF STUDY IMPORTANCE OF THE STUDY Being student of MBA it is very essential for me to have a practical knowledge in an organization. Only to study business administration course knowledge is not the

solution of the problems, which arise in practical field. There is a certain formula for any particular problem, but the aim of this study is to develop the ability of decision making. A right decision at right time and right place itself helps an organization to run smoothly. This study gives an idea of all marketing activities. So the way a problem is solved right decision making and knowledge of different types of making activities give much importance to the study. Only in two month training it was not possible to understand it so deeply, but an overall idea could be developed.

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The importance and usefulness of the study is discussed as under 1. To study the impact of Budget Policies on Marketing Strategy of Dabur Foods. 2. To study the Consumer, Buying behavior. 3. To study the problems faced by Dabur.

97

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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 consumers patriotic love for tea and coffee is unfared. Chyawanprash are yet to establish their supplement use in the average household here in lies the great opportunities. Within the market, it is safe to conclude that dabur has hit off ratherwell 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 dabor 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 an Australian Product Tobasco. 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 . 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.


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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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LIMITATION OF THE STUDY

It was quenching time in the shops that use to deal in and some retailers could not give proper attention towards our queries. Some retailer did not co-operative with us as they thought; it is just wastage of time There was no way to assess the reliability of the retailers. What ever they said had to be assumed to be truth. Category wise search for retailer was a terrific job in the market.

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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 Maricos 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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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)?


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1 2 3 4 5

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

Non sticky Brand Loyalty Fragrance Price

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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?


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Availability Price Family size Storage

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

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REFERENCES

Books:

Kotler Philip, Marketing Management, 11th edition, 2003, Pearson Education Inc., P. 8-9.

Ramaswamy V S, Marketing Management, 3rd edition, 2002, Macmillan India Ltd., P. 5-10

Kothari C. R., Research Methodology, 2nd edition, 2002, New Age International Pvt. Ltd., P. 11, 130.

Robbins Stephen P., Organizational Behaviour, 10th edition, 2004, Pearson Education Inc., P. 425-432.

Company Documents.

Websites www.google.com www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com

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