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A

PROJECT REPORT
ON
DABUR INDIA LIMITED
[MARKETING & HR]

Submitted toward the the partlal fulfilment for the award of Degree
In BACHELOR OF BUSINESS ADMINISTRATION OF

C.C.S. University Meerut


(2013 - 2016)
SUBMITTED BY
SUBODH
ROLL NO:- 6487524
Batch : (2013-2016)
UNDER THE SUPERVISION OF
(MR. BHARAT BHUSHAN SHARMA)

DEPARTMENT OF BBA

SHRI DRONACHARYA PGCOLLEGE,


DANKAUR,GREATER NOIDA

DECLARATION
I hereby declare that the summer training report on Dabur India
Ltd. is prepared and submitted by me is the original work; the
report is based on the data collected by me during the training
tenure.
During my training I worked under the able guidance of Mr.
Vasuki.n.Kilam, [Area Sales Manager] & Mr. Tarkesh Gupta
[Manager - HR].

SUBODH

ACKNOWLEDGMENT
I wish to place on record my deepest gratitude and thanks
to personnel from Dabur. Without whose help this project
would not have been possible Mr. Vasuki.n.Kilam, [Area
Sales Manager], Mr. Tarkesh Gupta [ Manager - HR] from
Dabur Co. were the concerned personnel I interacted with.
I would further like to thank Ms. Komal Tomar for his
able guidance throughout this project.

Table of Content
1. Synopsis
2. Introduction
3. Assumption
4. Company Information
5. Organization Structure (Existing)
6. Organization Structure (Proposed)
7. Activities
8. Mission
9. Product
10. Research and Development
11. Expansion and Diversification
12. Product placement strategy
13. Pricing Strategy
14. Promotional Strategy
15. Conclusion
16. Recommendation
17. Bibliography
18. Limitation
19. Methodology

SYNOPSIS
This

project

report

covers

and

brings

to

light

the

marketing strategies & Human Resource Management of


Dabur India Limited.
Herbal product industry, though based on the age old
practice of Ayurveda, is still in its nascent stage in India.
But it is growing by leaps and bounds every year. This is
because of the growing awareness

of people for natural

products and with the general tendency to revert back to


nature.
The demand for herbal products is increasing world wide
and this provides an opportunity for India, with its
inheritance of abundant natural herbs and the Ayurvedic
and Unani system of medicine, to rise up to the occasion.
If, India wants and takes the necessary steps it can be the
leader in the herbal export segment.
It is a strange co-incidence that both the companies in
question, started their business, nearly a century ago,
with the production an sale of Ayurvedic medicines. While
Dabur grew with time and became a company with highly
5

diversified product portfolio. Today Dabur is the market


leader in Ayurvedic segment (45%).
For collection of data together with taking company
information from various primary and secondary sources,
25 consumers were also interviewed regarding their
attitudes about herbal products and about Dabur. A deep
insight into the company, peoples perception about it was
available though this.
The company has some well defined marketing strategies
which suit their needs and requirement. Dabur has been
family held business, but Dabur

on the recommendation

of McKinsey and company gave up its control in the


management and appointed outside officials. Dabur which
has set his eyes on becoming a FMCG and of achieving a
turnover of Rs. 2000 crore by the next century has
brought in several changes.

INTRODUCTION
This Project Report forms an integral part of the Post
Graduate

Diploma

in

marketing

management.

As

prerequisite the companies should be registered in Delhi


Stock Exchange and should have a minimum operational
period of five year. It is also required that the project
should be done highlighting the area of specialization of
the student.
This project report covers the corporate area of marketing,
as it is my field of interest and area of specialization. The
specific industry chosen is the upcoming, dynamic herbal
product

industry.

This

industry

can

be

further

be

segmented into herbal drugs and herbal cosmetics sectors.


This is an industry, which has suddenly proved to be a
major threat to the conventional companies in this
segment and is giving major companies, doing prolific
business a run for their money. The sudden inclination for
herbal products due to increasing consumer awareness
has suddenly brought this industry in the limelight.

The herbal product industry is characterized by changes,


which

are

brought

directly

preferences

and

awareness.

something

new

and

extra

in

relation

New
to

to

companies
the

customer
offering

consumers

are

mushrooming every day. As such the industry provides an


inexhaustible

opportunity

to

study

and

analyse

the

marketing strategies of the different companies.


The objective of my study is to report and analyze the
herbal product related marketing strategies of Dabur .
ASSUMPTIONS
The analysis and the reporting of the information gathered
from these two companies would be based on certain
assumptions, which are as follows:
I. The information given by the company officials is taken
as correct at face value.
II.Same is the case with the information gathered through
the consumer questionnaire. The perception of the
consumers regarding the product regarding the product
quality, promotion and other aspects is not disclosed

suitably. This is also to a great extent the basis of any


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

DABUR INDIA LTD.


COMPANY INFORMATION
The company, Dabur India Limited, was started in 1884 by
Dr. SK Burman as a small mail order business for
Ayurvedic medicines, Pudin Hara was the first medicine to
be mail ordered. Over the years the company passed
down amongst the descendents of Dr. SK Burman and
remained a closely held family business. This remained
true till November 2, 1998. That day the 114 yr. old Dabur
India

reinvested

itself.

Breaking

over

century

of

tradition, executive powers of running the company were


handed over to an outsider appointed as CEO Mr. Neenu
Khanna.
Dabur at this particular instance is going through a period
of transition. This transformation is going to result in the
emergence of the largest Indian fast moving consumer
goods Company. The company, which has always shown a
signs of a visionary had set its rights on becoming the
countrys

largest

homegrown

FMCG

Company.

The

company realized that to be the industry leader, it needs


10

to be the best in all areas and have to be benchmarked


with the best industry practices. As such the company
appointed McKinsey and Co. In April, 1997 to look into the
health of the company and to come up with suggestions
which will help turn Dabur into one of the largest fast
moving

consumer

goods

company

of

the

country.

McKinsey & Co. has identified the areas of improvement


and suggested initiatives required in them.
The company has decided to leave the day to day
management in the hands of professionals. The promoters
(the Burman family) will withdraw themselves from the
routine functions and will concentrate on giving strategic
direction to the company. The major step in this direction
is the decision to appoint a CEO to head the company
management. All business units heads and functional
heads will report to the CEO. The existing and proposed
organization structure of the company as follows:
ORGANISATION STRUCTURE (EXISTING)
CHAIRMAN

Managing Director

Managing
11

V.C. Burman

director
G.C. Burman

Sales & Marketing

Operations

Health care family

Personnel

product Ayurvedic

HR

spl.

Assurance

Foods

and

cosmetics.

and

quality

purchase
packaging
development
diversification

Pharmaceuticals

Director

Director

Oncology R&D IT,

Veterinary

Overseas

Bulk

Natural

operations

Drug

Chemicals

and

Gums

Finance
Exports
Corporate
Communic
ation

12

ORGANISATION STRUCTURE (PROPOSED)


Board of Directors

Management
Committee

CEO

BUSINESS

UNITS

FUNCTIONAL

HEADS

HEADS

Health care

Operations

Personal Care

supply Chain

Ayurvedic Spl.

Purchase

Ayurvedic Veterinary

IT

Pharmaceutical

HR

Oncology

Packaging Dev.

Food

R&D
Quality Assurance
Finance & Accounts
Corporate Comm.

13

Dabur India Limited


SBUs
Health Care
Personal Care
Foods
Global Oncology
Ayurvedic Specialties

Dabur Group Cos.


Dabur India Limited
Dabur Finance Ltd.
Dabur Nepal Pvt. Ltd.
Dabur Egypt Ltd.
Dabur Overseas Ltd.

14

Dabur International Ltd.

Joint Venture
Coufiteria

de

General

India Ltd.
Dabon International
Excelcia Foods Ltd.

15

The biggest Indian FMCG Company, Dabur India Ltd., is


poised to become the true Indian multinational. The
company today is a multi-location enterprise employing a
dedicated task force of over 5000 people. Dabur has 12
manufacturing plants in India, Nepal and Egypt. Dabur
also has a manufacturing license in Middle East. It has a
transnational network of 19 offices servicing both sales
and marketing offices have been set up in Dabur, New
York, London, Moscow and its products are now available
in over fifty countries.
Besides this Dabur has collaborated with leaders in their
fields to set up joint ventures in India. The joint ventures
with Agrolimen of Spain, General De

Confiteria

India

Limited, manufacturer confectioneries Dabur International


Limited, the joint ventures with Bongrain of France
manufactures specialty cheese. Dabur has collaborated
with Osem Israel to manufacturer bakery specialties and
other food products under the name of Excelcia Food Pvt.
Ltd.

16

Dabur Exports,

Dabur products have found appreciation

across the globe, in a market that spans the seven


continents:
Middle East, East and West Europe, Russia and CIS,
Central and South America, USA and Canada, South East
Asia (Japan, Malaysia, Singapore, Thailand), North Africa,
Bangladesh & Sri Lanka.

Dabur Overseas Offices: London, Moscow & Kathmandu.


Dabur

Representatives

Overseas:

Dubai,

Kenya

Production Base Overseas: United Kingdom (Work in


progress),

Egypt,

Nepal

&

UAE

(franchisee

under

technology transfer agreement).

Activities
Dabur products span the seven continents and over 50
countries. Though Dabur starting its exports way back in
the early 1900s, it gathered momentum in the seventies
with the Middle East market. Presently, Dabur Amla Hair
17

Oil is not only the largest hair oil brand, it has also helped
in making Dabur a household brand in that region.

Yet another major market for Dabur is Europe. With


increasing awareness about the natural goodness of herbal
products, the demand for Dabur products has seen a
steady increase in the last one decade. Dabur set up its
office and warehouse in UK to service this burgeoning
market. Apart from this, Africa, USA, Russia and the Far
East also offer tremendous potential.

Dabur Egypt Limited is a subsidiary of Dabur and was set


up to manufacture and market Dabur products in Egypt
and other parts of Africa. Dabur also has a franchisee for
manufacturing its products in the Middle East. Dabur Nepal
Private Limited is yet another subsidiary that has done
exceedingly well since its inception. Today, the company is
one of the largest exporters of Nepal. Dabur Nepal
manufactures an astounding variety of Dabur products like
Fruit Juices, Tooth powders, Digestives, Hair Oils and
Honey. In fact, Dabur Nepal is the only manufacturing
18

base for Real Fruit Juices. It has also set up a greenhouse


for developing saplings of medicinal plants. The company
has set up an apiculture centre to develop Honeybee
Products in Nepal for exports.
Each division at Dabur functions as a SBU (Strategic
Business Unit) where the head is responsible for the cost
and revenue and ultimately the profit of the unit. The
various companies of the Dabur group are as below.

The turnover of Dabur India Ltd., which accounts for 80%


of the groups total turnover has steadily grown between
1992-93 and 1996-97 by 25-26%. The turnover which in
1993-94 a mere 61602 lakhs rose to 81136 lakhs in 199798.
As per McKinseys suggestions several changes are being
brought in the company. The changed focus is not only on
strategic front but also on operational issues.
Induction of more professionals
streamlining of supply chain
19

Setting up a centralized material procurement cell and


Updating its management process will take Dabur to a
new

era

of

faster

growth.

From

closely

held

conservative company, Dabur India Ltd. Is all set to


become a modern FMCG company not shy of taking the
competition head-on. As it enters a new millenium,
Dabur has set itself a new mission. The mission is to
offer superior quality nature based products, that offer
value for money and contribute in improving the quality
of consumers lifestyle in the areas of personal care,
health care and processing foods. As such the mission
statement of the country is as follows.

20

MISSION:
To fully export our core competencies in the field of
Ayurvedic

and

Herbal

products

by

identifying

the

consumer needs and aiming for full consumer satisfaction.


Together with this the company has set itself the target of
being best in the industry and plans to achieve a turnover
of Rs. 20 million by the year 2003. There is a sense of
urgency in all actions which suggests a new dynamism.
The company is at present bringing in major changes
which

have

remarkably

altered

their

marketing

mix

strategies. All of them have been discussed in the


following pages.

21

PRODUCT
PRODUCT RANGE: Till a year and halfback Dabur had
over 500 products covering around 10 categories in all.
These were as below:
Healthcare Products Division: Marketed a range of
OTC Healthcare products based on Ayurveda. These
included

Herbal

immunomodulators;

digestive,

restoratives, anti-flatulence and laxatives, tonics and


mother and child care products. Some of its products
had

over

65%

market

share

in

their

respective

categories.
Family Products Division: Markets a range of beauty
is a product, toiletries, herbal hair care products and
select goods. Hair oils, red tooth powder, honey and
rosewater are market leaders with nearly 70% market
share in their respective categories.
Ayurvedic specialties: Based on the ancient holistic
system of healthcare. This had a range of over 400
medicines. Ethically promoted these include classical
22

Ayurvedic medicines as well as products developed


through in-house R&D.
Foods Division: The of the youngest division of the
company markets a range of services, ethnic pastes and
foods. Real fruit juices gave Indian consumer for the
first

time,

fruit

juices

with

nothing-artificial

non-

preservative, no color and no flower added.


Cosmetics: Marketed range of beauty therapies under
the brand name Samara - Sanskrit for to meet. This
range of hair and skin care products is a fusion of
chemical Indian Ayurvedic recipes and contemporary
cosmetology.
Pharmaceutical Division: This division has a major
presence in anti cancer products and focuses on niche
markets like anti-thrombolytic, anti migraine therapy
and radio opaque rays. The product line included a
range of generic and branded formulations in widetherapeutic segments.
Bulk

Drugs

synthetic

and

&

Chemicals:

semi

synthetic

Dabur
bulk

manufactured
pharmaceutical
23

substances, bulk natural compounds and intermediaries.


Isolation of pure natural compounds and customs
synthesis was focus areas.
Natural

Gums:

This

division

manufactured

and

processed guar gums, gum kanaya, tamarind-based


gums and psyllium husk. the division produced a range
of industrial and food grade natural gums as per
exacting customer specification.
Ayurvedic Veterinary: This division dealt exclusively
in Animal healthcare. Market safe and non-toxic herbal
veterinary products for poultry large and companion
animals. These products are manufactured according to
traditional Ayurvedic formulation.
Product for global markets: Dabur products are
available in over 50 countries. These include soaps and
shampoos, shaving creams, cooking oils and other
items. Company personnel in London, Dubai and Kenya
service the overseas markets. The products for global
markets are manufactured in Nepal, Dubai and Egypt.

24

The above mentioned product lines were there at Dabur till


1 years back. On the recommendation of McKinsey and
Co., Dabur India Ltd., has decided to restructure its
product portfolio. Over the years, Dabur had added many
new product, lines that gave the company a very diverse
portfolio. Although these new businesses have been
profitable, some are unrelated to the core competence that

of

manufacturing

herbal

or

Ayurvedic

based

medicines. The company has decided to hive off such


unrelated businesses to separate companies under the
Dabur group. This rationalization of product portfolio will
make the company a true FMCG. Guided by the philosophy
of Doing Fewer things but doing them better, the
company plans to concentrate on 12-15 major brands and
add a few new products under these brands each year.
McKinsey also identified 5 pillars of strength
Product lines which will give maximum benefits to the
company. As such the revised product portfolio has 5
product lines. These include eight brands having market
shares of over 65%. Daburs products are positioned at
25

the varied socio-economic cross section, thus providing


products for literally every Indian. The major areas of
companys business activity today comprises the following:
A. Personal care products: This division accounts for 40
percent of Daburs total sales and is the largest
business

in

terms

of

turnover.

Some

previously

marketed brands of this category will be dropped and


others will be added on. The turnover from the division
is expected it rise from the current RS. 350 crore to
about RS. 430 crore next year growth in this division is
attributed to come largely from eight key brands. The
major products lines and brands of this division are :I. Hair care: - These include herbal, Ayurved based hair oil
and shampoos, Some major brands are Anmol coconut
oil, Amla hair oil, Vatika hair oil and shampoo.
Dabur Amla Hair Oil - This grand old product of Dabur
has a turnover in excess of RS. 100 crore (RS 1000
million).
Vatika Shampoo - Dabur introduced premium natural
shampoo under the brand name Vatika in 1997.
26

Branded Vatika Henna cream conditioning shampoo, it


provides natural conditioning and nourishment without
harmful chemicals. The shampoo has as its main
ingredients - Henna, Shikakai, Henna, and green
almonds. The product is confluence of the best of
natural ingredients with modern day care.
Vatika shampoo has received tremendous response
since its launch and is all set to be one of the leading
brands in Dabur range of products.
II.Oral Care: Red tooth powder and the Binaca range,
which Dabur acquired few years back.
III. Foods - including
Dabur honey
Sharbath - e Azam - a sweet rose flavored syrup.
Gulabari - rose water
kewra water
B.

Healthcare products - This division accounts for


36% of the total turnover of Dabur India Ltd. This
business unit has some of the best known brands of
27

Dabur. From all the 16 brands of this division, only 12


will be in the limelight; two new brands will be added
to the portfolio. This division is also the oldest
division as Pudin Hara was one of the three original
formulations marketed by Dr. S.K. Burman, major
product lines are
I. Mother & child care - this include
Janam Gaunt
All Tail
Gripe Water
II.Digestives - Hingoli, Pudin Hara, Hajmola Tablets and
Hajmola Candy.
Dabur is the largest digestive brand in India. Its Hajmola
brand which has both plain and candy variations as well as
Pudin Hara and Hingoli have a strong Ayurvedic essence to
them. The Hajmola candy has tamarind pulp, which
stimulates the digestive glands to secrete more digestive
juices. Pudin Hara is claimedly a natural stomach remedy,
free of side effects, while Hingoli has added its asafetida
28

blend to the after meal digestive market. Together, the


three brands hold a major chunk of the herbal digestive
market of which Dabur has an overwhelming chunk,
thanks to its Ayurvedic competence.
III. Herbal Tonics - including Chyawanprash and Restora.
While Restora brand helps in restoring as well as
building up the digestive system of the body, Dabur
Chyawanprash is a herbal tonic for general well being.
A herbal immunomodulator, Dabur Chyawanprash not only
builds immunity against cold and infections but also
improves the blood supply to a persons lungs thus
providing beneficial for smokes and asthmatic patients.
Dabur Chyawanprash is one of the leading brands in
Daburs product portfolio. Introduced in late sixties in tin
packs, the brands has come a long way to be the market
leader

with

market

share

above

70%.

Dabur

Chyawanprash is available in two variants - Ashtavarg and


special. It is the third brand after Dabur Lal Dant Manjan
and Dabur Amla hair oil to reach the coveted mark of RS.

29

100 crores in terms of turnover in last financial year. The


product is exported to more than 25 countries worldwide.
C-

Ayurvedic Specialties: This is a 60 crore division

which grew by 20 per cent last year. This division includes


ethically produced traditional Ayurvedic medicines sold
ethically through Ayurvedic practitioners. It has a range of
over 400 generic and proprietary Ayurvedic medicines in
its portfolio. These product are divided in 16 categories.
This year the strategy of Dabur, regarding this product
range is to pick on 7 promising products of its portfolio of
401, and focus on their growth. But this will be more of a
test market lab. The major product lines are:
I. Asav - Arishta
II.Ras Rasayana
3. Medicated Oils
4. Churnas
V. Proprietary Medicines
D.

Foods & Cosmetic: This is the youngest business


unit of Dabur. It handles a range of ethnic Indian food
30

products and a range of 33 skin care and Hair Care


products sold under the brand name Samara. Major
product lines are
I. Real Fruit Juices.
II.Home made Ethnic cloaking pastes and sauces.
III. Capsico chilli sauces.
IV.

Nutrasalt low sodium salt.

V. Samara

beauty

therapies

which

includes

of

skin

nourishers and toners. Moisturizers and sun protectors,


cleansers, face masks hair oils and vitalizers, hair wash
and cleansers.
Daburs Homemade brand of ethnic pastes (ginger, garlic,
onion, & green chilli) which was launched just last year
has a turnover of 3.5 crore and has successfully made a
place in todays urban homes. Dabur has identified this
brand as one of the pillars for growth over the next
millennium. The brand, which was brought into the market
after much research on the psychographic profile of

31

todays urban women, has been well received by its target


segment.
Dabur already has a well-etched out strategy for its foods
division. Over the next three years, Dabur will spend close
to Rs. 60 crore in advertising in foods, besides and
additional capital investment of Rs. 20 crore. On the anvil:
some more pastes and a range of other culinary products.
E.

Oncology: The last product line, which has been

recognized, as the pillar of growth for the company is that


of oncological products. This business of Dabur has a huge
future potential in India and abroad.
Dabur is the only company in India to manufacture anticancer drugs, all a result of the efforts at Dabur Research
Foundation. This product line at present has a range of 10
products.
Major

products

are

intanel

(paelitanel)

and

Eotel

(Docetanel) - both derived from Asian Yew Tree. Dabur is


the only second company in the world to manufacture
these drugs. DRF developed the unique Eco-friendly

32

process for extraction of these drugs from leaves of the


tree.
Besides

the

above

product

lines,

Dabur

is

also

concentrating on few other businesses.


Dabur has diversified in confectioneries and foods in
collaboration with leading international companies. Daburs
joint venture with Agrolimen of Spain is manufacturing
Bubble gums under the brand name of Boomer and
candies by the name of Bonkers. Excelcia Foods Pvt. Ltd.,
Daburs joint venture with Osem of Israel has stated
marketing cream filled crisps under the brand name of
Creamwich.

Some

new

products

are

ready

to

be

introduced in the market shortly. Bongrain of France, one


of the worlds biggest cheese companies, is the partner
with Dabur for another JV set up for manufacture and sale
of specialty cheese and other dairy products.
Major factories of Dabur are located at Shahibabad, Baddi
(H.P)Maksi (KP), Daburgram (Bihar) and Nasndrapur
(Bengal).

Besides

this

Dabur

also

has

3rd

party

manufacturing for some of its products.


33

Research and Development


Research and Development of the company continues to
support the companys business by developing innovative
products and process to cater to consumer needs and
preferences.

Research

and

Development

activities

in

health care and other products were aimed at developing


value added

products, delivering consumer perceptible

and demonstrable benefits. A range of new generation


products with improved financial and sensing properties
was developed. A new formulation for their protective
drugs has been developed which has shown efficacies
against hepatitis virus A, C & E. several new products in
the form of ethnic paste have been developed. New
variants of fruit juice namely tomato and mixed juice have
been developed. A new low

sodium salt combination

which has been recommended as a cooking salt for health


conscious people has been developed.
All this has been a result of the efforts of Dabur Research
Foundation. DRF, an independent organization, which has
over 125 scientists working full time on developing and
34

scientific validation of products through clinical trails. DRF


is a independent profit center of Dabur and is another
major strength of Dabur.
The Research and Development center has successfully

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

comprehensive multimedia CD which gives information of

Ayurveda, Ayurvedic herbs and products, philosophy,

history, expert system related to Doshas, guidance to daily

healthy living styles in a very user friendly interactive way.

Dabur Research Foundation (DRF), incorporated in 1979,

is a premier research organization recognized by

Department of Scientific and Industrial Research,

35

Government of India. Situated at Sahibabad, DRF is today


a

known name for its pathbreaking research in the field of

healthcare and personal care.

The Foundation is at the forefront of oncology research,


and

is in the process of developing many new molecules to


fight

this dreaded disease. In fact, DRF was the first


organization

in the world to develop a process for extraction of


paclitaxel,

a drug for cancer, without harming the source tree. The

36

process is now followed worldwide.

Herbal health care is an area where Dabur Research

Foundation has made immense contribution by doing

research and development work using modern

pharmaceutical protocols. The foundation has been doing

clinical trials on traditional herbal drugs to validate the

claims made in age-old scriptures of Ayurveda. The

foundation has also done the standardization of around


200

herbal ingredients using marker compounds.

DRF has also developed some of the well-known personal

37

care products like Vatika Hair Oil and Shampoo, Special

Hair Oil, Samara range of herbal skin and hair care

products.

DRFs R&D thrust is towards the development of new

formulations with improved levels of efficacy and safety.

To become the leading research organization of the


country, developing safe, effective, consumer
friendly health care products.

Expansion/Modernization/Diversification
A new manufacturing unit with high degree of automation
came into operation in Baddi (HP) during 1998 to produce
Daburs well known brands Chyawanprash, Janma Ghunti
Ayurvedic

oils

underwriting

and

assured

Asav-Arishtas.
quality

of

This,
the

apart

products,

from
has
38

substantially reduced per unit energy consumption and


improved yields. To complete the expansion plans at Baddi
for the branded products, a modern unit has been
constructed to produce a range of softgel products. The
environment

control

system at this plant and GMP

standards are world class. Honey grading facilities at Baddi


have been modernized as a strategic initiative to deliver
the goodness of honey to the consumer.
The

bulk

pharmaceutical

compounds

manufacturing

facilities at Kalyani (WB) became fully operational during


1998 under review for producing oncology and nononcology products for both national and international
market.
The fruit and fruit processing facility at Katni and
Sahibabad have been further modernized to allow high
volume hygienic process of natural materials. This process
allows mechanical handling throughout the process using
equipment used in the best European factories.
A

modern

air-conditioned

packing

line

has

been

commissioned at Sahibabad for Daburs hommade brands


39

of ethnic pastes and lime juices. A new state of the art


plant for manufacturing of hair oils at Sahibabad started
commercial production during the year 1997-98.
A new corporate office at Sahibabad is at an advance
stage of finalization and will be operational by the end of
this financial year. A new PET project to manufacture PET
bottles is being set up at Sahibabad. These bottles will be
used for packing of hair oils. The project is likely to
commence its commercial production during the current
year.

40

PRODUCT PLACEMENT STRATEGY


Distribution is said to be one of the major strengths of the
company. Dabur India Ltd. has a transnational network of
more than 5500 distributors. 21 sales office and 19 branch
offices

service

these.

This

strong

network

ensures

availability of Dabur products in more the 1,300,000 retail


outlets in India. The products from its Health care
products division are alone available in 4,50,000 outlets,
which

range

from

grocery

stores

to

chemists

to

confections. Company people directly cover these outlets.


One of the product -Hajmola candy is available in 1,25,000
outlets which include paan shops, roadside kiosks and also
large department shops besides the smaller general
merchants.

The distribution set up for Dabur is as follows:


Factory - Dabur
41

Branch
Warehouse or C
& F agent

Stockist

Wholesaler
Retailer

Consumer

Thus it can be seen that Dabur has a significant coverage


of the market. Based on this the product placement should
be one of Daburs greatest strength. But unfortunately
there had been some loopholes.
Firstly

there

were

shortcoming

in

supply

chain

management - from the buying of raw material to the


selling of finished goods to the retailers. For instance
42

demand forecasting was done on a annual basis. Feedback


from the companys sales department would be discussed
with its marketing cell and the branch heads would
request for fresh stocks based on estimates, which were,
part statistical and part out of gut feel. This, at times, led
to huge inventory pile-ups. The forecasts were made on a
historical basis on statistics available. There forecasts were
many-a-times inadequate and often lead to stock out or
inventory pile ups.
Second problem was with logistics and procedures. A
branch took six days to process an order. It then took
almost the same number of days to obtain the goods from
its godowns. Very often, the godowns did not have the
right stock since the goods used to be sent by truck, and
the truckers wanted full truck loads before they started
rolling, at times the goods would be at the truckers
godowns for a week.
Daburs system of accepting payments from its stockists
was also very elaborate with vouchers etc. This delayed its

43

payment cycle and also affected the cash flows for the
company.
Dabur realized that there is something wrong in its supply
chain-from buying of raw materials to the selling of the
finished goods to the retailer. For a growing FMCG, this
was the most critical aspect of business as it has 3 major
benefits.
One, have the right stock, at the right place at the right
time.
Two, keep inventories down.
Third, do all this with lower operational costs.
It was with the intention of fixing its internal processes
that

Dabur

hired

Mckinsey

and

Company

in

1997.

McKinsey accordingly has given suggestions to Dabur to


improve its supply chain and procurement processes.
Firstly Dabur has shed the process of making annual
forecasts and is fast moving towards a mode of rolling
three monthly forecasts, where the projections for one
month are fixed. This forecasting model is based on the
current market needs rather than historical performance of
44

the product and hence chances of error have been


reduced. Moreover, unlike in the past, when forecasting
was brand specific now forecasting is done on the basis of
stock keeping units e.g., If earlier the off-take of a certain
volume of Daburs Chyawanprash was predicted, the
forecast now has to include specifics based on the three
different sizes of the products.
Based on the 3 month rolling fore model, which accurately
predicts how much the companys factory should produce,
how goods should more from factories to warehouses to
the branches. This replenishment model works on the
fundamental principal that inventory should be avoided at
all costs.
Dabur has also tried to reduce its inventory level, which
had

earlier

resulted

into

high

working

capital

requirements. The company has been successful in these


aspect

brands

to

better

systems

and

information

technology, and the finished goods inventory is down to 40


days from 52 days.

45

Besides

all

the

above

measures

of

supply

chain

improvement, the company has kicked off other initiatives


like improving the collections from its dealers. Unlike
earlier, when Dabur used a complicated system of invoices
to recover dues, the company now insists its dealers to
pay by checks. Simultaneously, it is hot on what is called
Planned Journey Period planning - in other words, route
planning for its trucks. Dabur will now plan delivery along
geographical routes. The companys sales personnel are
encourages collecting orders from stockists along preselected routes and Dabur sends suppliers along these
routes. These days, Dabur even pay its truckers 5% over
its earlier rates so that they carry only the companys
goods and therefore reduce idle time in wailing for whole
truckloads.
Also on the procurements side, a central procurement
planing cell has been created comprising of six category
managers to keep takes on the organization of raw
materials, packing materials and outsourcing of certain
products.

46

PRICING STRATEGY
Pricing is undoubtedly one of the most important decision
areas of marketing. Price and sales volume together
decide the revenue of any business. As the sales volume in
itself is dependent in price. Pricing really becomes the key
to the revenue of the business such is the case with Dabur.
Though some of the products of Dabur have been leading
brands in their segments over the years, still others are
upcoming brands trying to make their pressure.
Dabur as a brand name is well reputed and readily
accepted in the market. The main strength of Daburs
products besides their quality is the brand name. This
gives to the company, opportunity to fix the price at a
level, which gives suitable profits. Major factors affecting
Daburs pricing policy are:
I. Corporate and Marketing objectives: Whether the
product is marketed with the initial objectives of
capturing maximum market share or earning maximum
profits. Daburs product like Hajmola candy, hingoli
47

were marketed with the objectives of capturing a


sizeable share of the market and so were priced
towards the lower end of the scale. This strategy has
secured its purpose because today Dabur is the market
leader in digestive candy segment.
II.Image sought by the firm through pricing: of
through pricing, the company wants to communicate to
the consumers that the product it is marketing is for the
premium segment it will adopt a policy of high prices.
When Dabur marketed Vatika shampoo the product was
meant for the middle classes and was moderately
priced. But when Dabur honeys and Real fruit juices
were marketed, they were targeted at the premium
segment and were relatively high priced.
III. Costs of manufacturing & Marketing: Sometimes
the costs that a company incurs in manufacturing and
marketing a product also get reflected in the price. Four
years ago, when Dabur launched Vatika Hair oil, it was
the first coconut oil to have other ingredients beneficial
for hair. A lot of research work had done into it and to
48

have the product readily accepted it was heavily


advertised. All this resulted in raising the MRP of the
product.
IV.

Competitors pricing policy:

often

when

in

segment there is much competition to the reckoned


with, the prices of the competitors for similar products
have to be kept in mind before deciding on the price for
a product. In such category fall the Dabur Amla hair oil,
Anmol coconut oil and Dabur Chyawanprash.
The pricing policy adopted by Dabur India limited is cost
based pricing where the total cost incurred in the
manufacturing process of a product plays a significant part
in deciding the price of the product. The approach used in
cost - based pricing, at Dabur is Mark-up pricing. The
major elements in this policy are:
Fixed Costs: These results from the expenses on men
and machinery e.g., the wages and salaries paid, the
annual changes of running a machine etc. These expenses
remain fixed with the volume of production.

49

Variable Costs: These expenses vary with the volume of


production. They are a result of the raw materials used,
the processes and technology employed, the sales tax or
the excise duty accused in course of production of a
particular product.
Mark-up: This is the margin, which is added to the abovementioned costs before arising at the price of a product.
This mark-up is what finally results into a profit for the
company. Mark-up is a percentage of the total fixed and
variable costs. Depending upon the type of product, its
saleability, the target segment, the competitors price, the
mark-up may be anything between 50-150% of the total
costs.
Since Daburs products a mostly Ayurvedic or herbal, the
cost of the raw materials constitutes the chunk of the total
costs. The costs of raw material form a part of the variable
costs and differ from the variable costs and is different
from products to product.
Most of Daburs products are affordable i.e.; they are
priced towards the lower or moderately high end of the
50

scale. Dabur very well knows where it can change a


premium and where it cannot. This is why; Dabur has
made its presence in most of the homes of India and is
steadily doing so abroad.

51

PROMOTIONAL STRATEGY
Dabur, like an upcoming FMCG company realizes the
importance of advertising in the marketing of its product.
Like a true visionary Dabur from time to time, introduced
as well as changed some of its campaigns (for key
products) to bring them according to the changing market
scenario. In all its advertising is handled by 8 agencies.
Campaign for digestive: Hajmola, Hajmola Candy, and
Pudin Hara are done by Hindustan Thompson Associates
(HTA). Pudin Hara has been identified as one of the core
brands of Dabur by McKinsey and HTA is going to release a
new campaign for it shortly. Advertising for digestions is
through all the media - T.V, newspapers and magazines.
Campaign for Dabur Amla Hair Oil: This account has
been looked after by Ogilvy & Mather over the years. This
grand old product of Dabur has once again adorned a new
face for advertising. Known for celebrity advertising, this
product is now promoted by Karishma Kapoor. Some of the
leading ladies of the film industry who have endorsed this
product are Jayapradha, Sridevi, Juhi Chawla.
52

Campaign for Vatika hair oil & Shampoo: Advertising


for Vatika hair oil which was introduced 4 years back and
Vatika Shampoo which was introduced a year back has
been looked after by Mudra. Another product which is
campaigned for by Mudra is Red tooth powder. While
Vatika hair oil and shampoo is advertised both in print and
electronic media, advertising in print media is more
common for red tooth power. Also, for this, magazines
prevalent in small cities (in vernacular language) are more
often used. This is because the target segment of this
product is in small cities and towns.
Campaign for Dabur Chywanprash: Over the years the
advertising campaign for Dabur Chyawanprash has been
handled by Response, an advertising agency of Calcutta.
Both print and electronic media are used for campaigns for
Dabur Chywanprash.
Campaign for Dabur Honey, Real Fruit Juice: The
agency responsible for handling the campaigns for the
foods division is enterprise Venus also both print and
electronic media are used for this product range.
53

All the advertising agencies hired by Dabur are responsible


for creative execution and media planning for their
advertisements. A vast number of appeals can be seen to
be there in Daburs advertisements. While Pudin Hara uses
a common man to endorse the product celebrity appeal is
used for Dabur amla hair oil. Chyawanprash, Dabur Honey,
Vatika

Shampoo,

and

Real

Fruit

Juice

extensive

information about the constituents used, their goodness


and benefits to human beings are clearly explained in the
ads of these products.
Still other products like Hajmola pills and candies as well
as Hingoli have a humorous aspect in their campaign to
catch the imagination of the consumers.
The reason why Dabur does not use one or two agencies
to advertise for its products is simple - it does not want
any two of its campaigns to be similar. While the agencies
look after the creative aspect and media planning and
scheduling; media buying is done by the in-home agency Adbur. Media space

(in case of print newspapers,

magazines etc.) and media time (in case of electronic


54

media like TV, Radio) are bought in a consolidated manner


by this agency. These may be prime time slots, full page
or half page bookings. Whenever a product has to be
advertised, dabur decides the time and space and the
product is advertised accordingly.
Dabur is a firm believer in advertising and benefits and as
such has a huge advertising outlay. But the manner in
which the advertising budget is appropriationed differs
from product to product and depends upon what the
advertising and ultimately the marketing objectives of the
company regarding those products are. Some of the
methods used advertising appropriationing are :
I. Historical basis: Dabur uses this method for products,
which

have

been

in

the

market

for

long

i.e.,

Chyawanprash, Amla Hair Oil. A regression analysis


done based on historical data in which a comparison of
past expenditure and sale is done. Likewise future
advertising outlays are decided.
II.Competition based: This method is used is used for
deciding outlays for products which are in highly
55

competitive segment like Real Fruit Juices, digestive


candies etc. Here a advertising budget is made which is
comparable to the budgets of the competitors in that
segment.
III. Task based : According to this method, the quantum
of funds required to attain the specified advertising
goals is decided on a function-to-basis.
Besides campaigning in print and electronic media, Dabur
also has various sales promotion techniques. Most of them
are the POP materials like dispenses for candies etc,
danglers, stickers and so on. Also from time to time
various Dealer promotion schemes are undertaken. These
schemes are tactical in nature i.e., there is always some
object to be achieved through them which can vary from
increasing the number of dealers or giving incentives to
dealers to stock Daburs product more.
Consumer schemes are also undertaken and they are
usually need based. These schemes may proceed the
introduction of a new product, to increase the sale of a

56

product, to sponsor an event, build an image for the


company etc.
In todays changing times, communication - whether it is
internal

or

organization.

external
Dabur

forms
has

an

integral

corporate

part

of

an

communication

department, which is responsible for the Public Relations


of the company. Besides this, the company brings out
Contact a quality newsletter, which not only helps
employees communicate effectively with each other but
also helps in dissemination of news and information. It is a
two-way communication channel between employees due
to its interactive nature.

57

CONCLUSION
Being a treasure trove of rare medicinal plants and the
birthplace of three therapeutic systems, the growth of
herbal product industry in India has been remarkable.
According to a survey, the current estimate of the total
herbal market is Rs. 2500 crores which is growing at a
rate of 25 to 30% per annum. Many companies are there
in

this

highly

awareness

and

competitive

field.

realization

among

With

the

people

growing

for

herbal

products, these companies claim to be marketing not just


a product but a whole civilisation.
While for Dabur herbal products business forms the major
activity

(Dabur

is

highly

diversified

company),

manufacturing of herbal products is the only business of


Baidyanath.
Fast Moving Consumer Goods (FMCG) industry is one of
the most competitive and fast growing industry in India.
Dabur, keeping in view the challenge of the global market,
maximizing

team

performance,

focusing

on

core

competency, changing competitive world and meeting the


58

demand of demanding customers, felt the need for


appointing

an

international

consultant

to

study

and

identify areas of improvement in various aspects of


companys business to improve cost effectiveness and to
diagnose

organizational

and

strategic

aspects.

The

company appointed McKinsey & Co., in 1997 for devising


its strategic, organizational and operational guidelines.
Based on their finding and suggestions the company is
poised for transformation. The major weaknesses of the
company as identified by McKinsey are:
Family run business lacking professional managers.
Highly diversified product portfolio with no or little
synergy.
Improper

and

unscientific

methods

of

demand

forecasting.
Poor raw material procurement planning.
Huge inventory pile up or stock outs.
Complex system of payment to dealers and stockists.

59

Long

cash-flow

cycle

and

huge

working

capital

requirement.
Lack of co-ordination between central supply cell,
branches and warehouses.
Daburs brand was known but nothing much about the
company was known.
It is a positive sign that the company, based on McKinseys
recommendations, has taken the initiative to change and
alter its weak points.
Firstly Dabur has identified core areas of competence and
has decided to focus on these business to maximize
growth in the national and intentional market through
effective strategies. The company has also decided to exit
from

non-core

areas

and

has

already

appointed

consultants to hive off these business/brands. Daburs


future growth will be guided by the theme DOING FEWER
THINGS BUT DOING THEM BETTER.
Dabur is also changing from a promoter driven company
to a professionally managed company. The company is in
60

the process of recruiting a professional CEO from outside


the company to take on the day to day responsibilities of
management.
Based on the suggestions of McKinsey, Dabur has initiated
the process of adhering to new and better systems and
styles of management. The first step in this area is to
polish up its operational methods and to give up on
redundant practices. The focus is now on supply chain
management,

improving

purchasing

capabilities,

improving distribution efficiencies, improving sales force,


marketing inputs, reduction in manufacturing costs and
improvement in quality, efficient utilization of corporate
resources etc. Dabur is putting up a new thrust to solve its
loopholes and many of its initiatives are commendable.
Some of them are:
Undertaking a mammoth task of transforming a more
than 100-year-old company.
Appointing of an outside consultancy to look into its
problems.
Giving up the family hold on a 800 crore group.
61

Selling out non-core business.


Introduction of a series of operational and logistical
systems into the business.
All these combined with the inherent strength Dabur haswell

recognized

and

established

brand,

strong

R&D

backup, right mix of advertising, promotion and product


packaging, we hitherto have a world class company. The
major strength of Dabur in this rapidly growing herbal
industry is that they were pioneers in this field. Today
also, the name DABUR

is a household name and most

of the consumers have high regard for the companys


products and the products are synonymous with quality
and effectively.
Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., is today at a
stage where Dabur was few years back. It is a company
whose management still lies among the family members.
It has 2 joint managing directors who look after the
operations of its 5 offices spread countrywide. It is also
one

of

the

oldest

company

of

Ayurvedic/herbal

medicines/products. It is the only herbal Product Company


62

to have a range of over 700 product. But with the largest


range of Ayurvedic products and with ages of business
experience, the company is still not at the top nor is so
well rated by the consumers. The reasons for this are not
hard to find.
Baidyanath because of the low profile image it has for
all these years, is perceived to be a small and backward
company with some factory some where.
Advertising has not formed a thrust area of the
marketing strategy and hence of the correct brand or
company image has not been projected. Hence its
products are at times taken to be of inferior value and
not upto the mark.
The company has not grown with the changing time and
has not adopted modern management practices in
terms of quality control, R& and operational process.
The packaging of the product as well as the quality of
its print and electronic media ads has not been
improved

and

this

also

suggests

some

negative

connotation about the company.


63

This aside, the company has some major strengths


Goodwill of the regular users of its products.
Well-earned reputation for quality.
A strong market presence by retail outlets.
Outlets readily accepting to stock its products. But still
Baidyanath, if its has to survive todays cutthroat
competition, it has an uphill task of tackling the upcoming
companies like Smyle, Zandu, Yogi
Pharmacy,HimalayanDrugs etc.
Fast Moving Consumer Goods (FMCG) industry is one of
the most competitive and fast growing industry in India.
Dabur, keeping in view the challenge of global market,
maximising

team

performance,

focussing

on

core

competency, changing competitive world and meeting the


demands of demanding
appointing

an

customers, felt the need for

international

consultant

to

study

and

identify areas of improvement in various aspects of


companys business. To improve cost effectiveness and to
diagnose

organizational

and

strategic

aspects,

the
64

company appointed McKinsey & Co., in 1997 for devising


its strategic, organizational and operational guidelines.
Based on their findings and suggestion the company in
poised for transformation. Baidyanath is today at a stage
where Dabur was few years back. Even with the largest
range of Ayurvedic products and with ages of business
experience, the company is still not at the top nor is so
well rated by the consumers. The reason for this are quite
obvious. Nothing much is known about the company.
Advertising has not formed the thrust area and so correct
company or brand image has not be created. Together
with this the company has not grown with modern times
and has not improved on packaging or R&D efforts.

65

RECOMMENDATIONS
DABUR INDIA LIMITED
Most of the recommendations for Dabur have been
covered by the McKinsey report. Nevertheless it would be
worthwhile to note them again.
1. If Dabur has to emerge as a true FMCG company it has
to divest its non-core businesses fast and focus only on
some core competencies. It this is done growth will
follow soon.
2. There are also changes to be brought on the operational
front. The company should hire more and more outside
professionals into both top and middle management. It
should also initiate the process of adhering to new and
better system and style of management.
3. The demand forecasting has to charge from the
unscientific, incredible system of annual forecasting to
the more reliable and error free system of making
quarterly rolling forecasts.

66

4. The order processing and procurement planning for raw


materials has to improve at Dabur. If this happens then
the situation of inventory putting up or stock outs will
be minimized.
5. Many-a-times Daburs products have not withstood
quality control tests. If Dabur

has to surface as an

multi-national and face the world competition it will


have to follow more stringent quality control methods.
6. Also the quality of the raw materials used should be
looked into. This will also help Dabur to stand quality
control tests in the international arena.
7. Dabur has often been accused of pricing its products
arbitrarily. If the company has to grow, it has to adopt a
more scientific way of pricing an understand that
today's consumer is an intelligence one who has the
freedom & opportunity to choose.
Dabur, if it has to emerge as a fresh Indian multinational
and a true FMCG then it has to divert from its non-core
business.

It

also

has

to

introduce

systems

in

its

operational as well as strategic fronts. It also has to have


67

more stringent quality control methods and its pricing


policy should be more scientific.
Baidyanath, if it wants to survive todays competition, then
the first thing it should do is to alter the image of the
company as well as its products. It also should include
outsiders in its business and also modern management
practices. Lastly, it should improve upon the packaging
and advertising of its products.
Most on the consumers interviewed also suggested similar
things for both the companies. Even though Dabur and
Baidyanath

were

the

most

popular

companies

with

consumers, most felt that Daburs products were highly


priced while Baidyanath had good and reasonably priced
products but cost out to other companies on account of
poor packaging & low key advertising.

68

BIBLIOGRAPHY

1. Magazines
Business India
Businessworld

1998 Issue
22 Nov-6 Dec

2. Books
Marketing Management - by Phillip Kotler
Principles of Marketing by Phillip Kotler & Gary
Amstrong
3. Others
Annual Report of Dabur (1997-98)
Company Literature of Baidyanath
CII Library
Delhi Stock Exchange Library
Economic Times Newspaper
LIMITATIONS

69

Although it has been my endeavour to take all necessary


precautions to ensure that the information gathered is
authentic and maximum facts are presented the report
has a few handicaps.
1. Time: The nature of the report required detailed and
meticulous information gathering. In this sense time
was a limiting factor

and a major

accomplish

task.

the

given

Also

constraint to

sometimes

the

executives were not available and I had to re-schedule


my appointments time and again. This caused a lot of
pilferage of time and unnecessary of duplication of
effort.

Also

preparation

many
time

holidays
of

this

occurred

report

and

during
access

the
to

information was limited in this period.


2. Human Error: The feedback provided by the company
executives, consumers and others approached has been
assumed to be correct. But there might have been
wrong and biased facts given. The opinion of few cannot
be generalised in any manner. The reader has to

70

discount these fallacies with regard to the small scale


on which it has been prepared.
3. Non-cooperation: While by and large the people
approached

were

helpful

some

people

were

non-

cooperative. Also a lot of information was withheld due


to its sensitive nature. E.g. Baidyanath did not disclose
the sales figures.
4. Logistical

Problems:

One

major

problem

that

occurred was the absence of marketing office of


Baidyanath in Delhi. Only a registered office is here and
it proved quite difficult to get information from there.
5. Cost: Baidyanath's head office in Calcutta had to be
contacted several times on fax and phone to get
company literature, product range etc. This resulted in
major expanses apart from the expenses incurred in
local travel, calls, computer work and printouts.

71

METHODOLOGY
The research design plays a pivotal role in the quality and
content of the data in making of any project report. The
type of research design chosen is seen to have a bearing
on all the aspects of report writing.
The research design undertaken for the study was an
exploratory one. The reasons for using an exploratory
research method was to obtain qualitative data and also
since the nature of study is as such that it required the
exploration of various aspects within and outside the
company. This method also gave the officials interviewed
the

utmost

freedom

in

responding

and

was

highly

contributory in getting incisive information.


In order to carry out a well researched analysis efforts
were taken to collect enough information about both the
companies.

For

this

purpose

various

primary

and

secondary sources were used. For collecting primary


information (regarding the company as well as consumer's
attitudes) company executives and 25 consumers were
approached.

Information

was

gathered

through

the
72

questionnaire method as well as by interview method.


Interview method was used whenever any reluctance was
shown by the respondent for filling up the questionnaire.
Mostly for the company executives, interview method was
used. This method helped in obtaining in depth knowledge
and facts and whatever doubts, if ever, surfaced were
cleared at the very moment. Some of the questions asked
are:
What is the product range, under what brand name are
they marketed
What are the quality standards maintained
How s demand estimated and sales forecasted
Where are factories located
Major R&D efforts
Strength over competitors
What are the channels of distribution - who are the
intermediaries involved.
No outlets
73

How are inventory levels maintained and warehousing


done.
What is the pricing policy and main constituents of price
Advertising budget, allocation and programming
Types of sales promotion effort undertaken
Publicity and PR work done by the company
In order to gauge the consumer's attitude towards herbal
product and about the products of Dabur and Baidyanath
in

particular

another

questionnaire

was

used.

This

questionnaire has 10 close-ended questions. In all 25


consumers were approached and their responses taken.
These responses were later analysed and were of colossal
help in coming to various conclusions for the report. Each
question asked to the consumer and some logic behind it.
The questions and their logic are as below:
1. Do you use Herbal products/
If No, given a chance would you?
This question helped in knowing the percentage of people
using or favouring herbal products.
74

2. Herbal products are better than synthetic ones?


3. If Yes, then why?

If No, then why? (Please

tick)
- No side effects

- Ineffective

- Affective

- Short term remedy

- Long term remedy

- Dicey constituents

Both the above questionnaires help in gauging the


perception of people regarding herbal products, the utility
or strength over synthetic products.
4. What kind of herbal products you use?
(a) Medicine

(b) Cosmetic

(c) Others (Pl.

specify______)
5. What portion of your total consumption of the above is
formed by herbal products?
The two above questions helped in knowing the growing
prevalence of herbal products.
6. Which two companies first come in your mind when
your talk of herbal products (medicines and cosmetics)?

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7. Rate the following companies engaged in herbal product


business in terms of your preference
Medicine

Cosmetics

Dabur

Biotique

Baidyanath

Shahnaz

Zandu

Dabur

Hamdard

Ayur

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


consumers regarding different companies.
8. Among Dabur and Baidyanath which one is better? Why
(Pl. specify).
- Genuine products
- Value for money/reasonably priced
- Effective
- Safe
9. List 2 product of the above mentioned company liked by
you/used by you the most.
1. ..

2. .

Question 8&9 helped in knowing the consumers attitude


specifically for Dabur or Baidyanath. It gave an idea why

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one company was preferred over the other and which


products were mostly favoured.
10. (Ref. Quest. No. 8) What steps should the other
company take to improve its position? (Please tick)
- Better product range
- Better packaging
- Better advertising
- Improve quality
- Better availability
The last question helped in knowing the loopholes which
existed for the company (not preferred) and the steps
which could be taken to improve its image and standing in
the market.
Both the questionnaires formed the right tool to except the
required information from the respondents. Once the
information was collected the next step was to filter out
the data and to present in the most appealing manner.
Various secondary sources were also used to gather data
as these provided an objective basis of getting useful

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information. Following are the main sources used in the


project.
Business magazines
Delhi stock exchange library
CII library
Annual reports
These secondary sources gave some information which
helped in better understanding of the functioning of the
companies.
This project report covers the upcoming segment of the
herbal product industry. This industry has a special
relevance for India, since it derives its roots from the
ancient system of Indian medicine - Ayurveda. Therefore
in course of this project report, in order to facilitate better
understanding of the whole scenario a brief introduction to
the system of Ayurved has been given. This is followed by
"Case for Herbal products". Stating why people are for and
against herbal products and finally and overview of the
whole herbal product industry is presented. Also before
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coming

to

the

marketing

strategies

of

Dabur

and

Baidyanath a brief write up about marketing process and


the growing relevance of marketing for India has been
given.

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