GGSIPU

PROJECT REPORT ON
Marketing strategy of Dabur Vatika Hair Oil &
Dabur Chyawanprash
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQURITMENTS FOR THE AWARD OF THE DEGREE
OF BACHELORS OF BUSINESS ADMINISTRATION
(BBA)
TO
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY,
DELHI
MENTOR
Mrs.ANJALI SINGH

SUBMITTED BY:
RAHUL RANA
ENROLLMENT NO.
09514217088
BBA-3

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

VASANT KUNJ-70

CERTIFICATE

This is to certify that RAHUL RANA of BBA-III, batch 2008-11,

enrolment no. 0951421708 have undertaken a minor report on
Marketing strategy of Dabur Vatika Hair Oil & Dabur
Chyawanprash and have completed the project under my
supervision. I am satisfied with the project report submitted.

(Internal Guide)
Mrs. ANJALI SINGH
Lecturer, JIMS

DECLARATION

I hereby declare that this project work titled Marketing strategy

of Dabur Vatika Hair Oil & Dabur Chyawanprash is my own
work and no part of this project has been submitted for any other
degree purpose or published in any other film till date.

RAHUL RANA
ENROLLMENT NO. 0951421708

I would profusely like to thank my faculty and mentors at

JIMS VK especially Mrs. ANJALI SINGH, for their
immense help and support throughout the making of this
project. I would also like to thank my parents and friends
for their encouragement and help, without which the
project wouldve been incomplete.

Thanking you ,
RAHUL RANA
BBA 3
0951421708

TABLE OF CONTENT
Chapter-1 Introduction
1.1

Executive Summary

1.2

FMCG Sector Overview

1.3

Company Overview

1.4

FINANCIAL REPORT

1.5

Company History

1.6

Product Line of Dabur

1.7

SWOT Analysis

Chapter-2 Objective & Methodology

2.1

Overview of Hair Oil Segment

2.2

Overview of Vatika

2.3

STP Analysis of Vatika Hair Oil

2.4

Marketing Mix of Vatika hair Oil

2.5

Advertising

2.6

Competitor Analysis of Vatika Hair Oil

Chapter-3 Conceptual Discussion (Theoretical Backdrop & Literature Review)

3.1

Customer Questionnaire of Vatika Hair Oil

3.2

Customer Survey Results of Vatika Hair Oil

3.3

Retailer Questionnaire of Vatika Hair Oil

3.4

Retailer Survey Results of Vatika Hair Oil

Chapter-4 Data Analysis

4.1

STP Analysis of Dabur Chyawanprash

4.2

Marketing Mix of Dabur Chyawanprash

4.3

Competitor Analysis of Dabur Chyawanprash

4.4

Customer Questionnaire of Dabur Chyawanprash

4.5

Customer Survey Results of Dabur Chyawanprash

4.6

Retailer Questionnaire of Dabur Chyawanprash

4.7

Retailer Survey Results of Dabur Chyawanprash

4.8

Ansoffs Product Market Expansion Grid

4.9

The BCG Growth-Share Matrix

4.10

The New Dabur Entity

4.11

The Future of Dabur con

Chapter-5 Findings and Recommendations

5.1

Recommendations

5.2

References

EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur India
Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the
very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika
has come to be amongst the companys highest selling brands. Vatika is a comparatively
young brand but is already acknowledged for the qualitatively influential and pioneering
role that it has played in the evolution of the categories it has had a presence in. Dabur
Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of
61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has
invested heavily in product development, clinical studies and consumer awareness. The
product is essentially a health supplement.
This report is not aiming at the overall marketing mix or the marketing strategy of Dabur
India Ltd, but is an attempt to analyze the marketing mix of Dabur Vatika Hair Oil and
Dabur Chyawanprash.
The report also enlists various recommendations based on BCG Growth Share Matrix
analysis, Ansoffs Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has
been done on the basis of the information gathered from the company website and other
online resources and books and articles.

OBJECTIVE OF THE STUDY

Following are the major objective of study: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.
IMPORTANCE OF THE STUDY
Being student of MBA it is very essential for me to have a practical knowledge in an
organisation. 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 organisation 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.

OVERVIEW OF FMCG SECTOR IN

INDIA
The Indian FMCG sector is the fourth largest sector in the
economy with a total market size in excess of US$ 13.1 billion.
It has a strong MNC presence and is characterized by a wellestablished distribution network, intense competition between
the organized and unorganized segments and low operational cost. Availability of key
raw materials, cheaper labour costs and presence across the entire value chain gives
India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in
2015. Penetration level as well as per capita consumption in most product categories like
jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to convert consumers
to branded products. Growth is also likely to come from consumer 'upgrading' in the
matured product categories. With 200 million people expected to shift to processed and
packaged food by 2010, India needs around US$ 28 billion of investment in the foodprocessing industry.
India is one of the largest emerging markets, with a population of over one billion. India
is one of the largest economies in the world in terms of purchasing power and has a
strong middle class base of 300 million. Around 70 per cent of the total households in
India (188 million) reside in the rural areas. The total number of rural households is
expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents
the largest potential market in the world. The annual size of the rural FMCG market was
estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural
and the urban level, the market potential is expected to expand further.

10

Rural and urban potential

Rural-urban profile
Urban
Population 2001-02 (mn household)
53
Population 2009-10 (mn household)
69
% Distribution (2001-02)
28
Market (Towns/Villages)
3,768
Universe of Outlets (mn)
1
Source: Statistical Outline of India (2001-02), NCAER

Rural
135
153
72
627,000
3.3

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets.

11

Rapid urbanization, increased literacy and rising per capita income, have all caused rapid
growth and change in demand patterns, leading to an explosion of new opportunities.
Around 45 per cent of the population in India is below 20 years of age and the young
population is set to rise further. Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a latent demand with more money and a new
mindset.

12

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.

13

FINANCIAL REPORT
Rs (Crores)
2006-2007

2005-2006

Turn over (including other income)

1280.22

1159.02

Profit before tax

165.02

113.44

0.20

165.02

113.44

13.00

8.75

: provision for taxation Deferred

4.00

3.49

: provision for taxation for earlier yr

0.05

00.26

PROFIT AFTER TAX

147.97

101.14

Add: Balance in profit & loss account b/f

81.12

66.12

--

2.50

0.83

1.82

231.74

169.76

General Revenue

25.15

22.50

Capital Revenue

1.56

Interim Dividend paid

28.63

17.17

Final Dividend proposed

42.96

40.07

Corporate tax on Dividend

9.77

7.34

125.23

81.12

231.74

169.76

Add: Provisions of earlier yr written back

Less: provision for taxation - current

From the previous yr

-

Transferred from debenture

Redemption Reserve

Transferred from investment

Allowance Reserve

Transferred from Investment

Deposit Revenue

PROFIT AVAILABLE FOR APPLICATION

APPROPRIATION TO:

Balance carried over to Balance sheet

TOTAL

14

1884

Birth of Dabur

1896

Setting up a manufacturing plant

Early 1900s

Ayurvedic medicines

1919

Establishment of research laboratories

1920

Expands further

1936

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

1972

Shift to Delhi

1979

Sahibabad factory / Dabur Research Foundation

1986

Public Limited Company

1992

Joint venture with Agrolimen of Spain

1993

Cancer treatment

1994

Public issues

1995

Joint Ventures

1996

3 separate divisions

1997

Foods Division / Project STARS

1998

Professionals to manage the Company

2000

Turnover of Rs.1,000 crores

15

COMPANY HISTORY

PRODUCT LINE
Foods

Real

Real Activ

Hommade

Lemoneez

Capsico

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

Anmol Silky Black Shampoo

Vatika Henna Conditioning Shampoo

Vatika Antidandruff Shampoo

16

Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

Dabur Binaca Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

17

SWOT ANALYSIS OF DABUR

STRENGTHS

Strong

WEAKNESS
presence

in

well

defined

niches( like value added Hair Oil and

Seasonal Demand( like chyawanprash

in winter and Vatika not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

competitive advantage

Limited differentiation (Vatika)

Strong Brand Image

Unbranded players account for the 2/3rd

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D a key strength

Ayurveda specialties)

Core

knowledge

of

Ayurveda

as

of the total market(Vatika)

OPPORTUNITIES

THREATS

Untapped Market(Chyawanprash)

Market Development

baidyanath and Zandu for Dabur

Export opportunities.

Chyawanprash and Marico,Keo Karpin,

Innovation

Increasing income level of the middle

HLL and Bajaj for Vatika Hair Oil)

class

Creating

Existing Competition( like Himani,

additional

consumption

pattern

18

New Entrants

Threat

from

substitutes

Bryllcream for Vatika hair oil)

(like

OVERVIEW OF THE HAIR OIL SEGMENT

In the last quarter of the previous century Indian women have imbibed global mores,
ethics, fashions and styles in a remarkable way. Yet the popular iconography of Indian
beauty still associates them with beautiful fair skin and dark, long lustrous hair a
commonly accepted definition of beauty in Indian society.
Across the country, mothers spend endless hours teaching their daughters what their
mothers had taught them about maintenance of their natural beauty taken primarily
as caring for the skin and hair. In the hair care regime, of the numerous prescriptions
none is more universally accepted than the oiling of hair for nourishment and use of
home-made concoctions of henna and shikakai paste for conditioning them.
It would come as a surprise to only a few that hair oils have a penetration of almost
98% (Source: IRS 2003). Of the branded market, hair oils form a major chunk
accounting for Rs. 13 billion with coconut hair oils as the prime segment at Rs. 9.1
billion. (Source: ACNielsen ORG-MARG 2003).

OVERVIEW OF VATIKA:
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In
the very first year of its launch it crossed Rs. 100 million in turnover. Over the years,
Vatika has come to be amongst the companys highest selling brands.
It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in
2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales crossed Rs. 1,000
million. From the companys perspective, Vatika is expected to continue to drive its
growth in the years to come. With its innovative offerings, the brand aims to become a
frontrunner in the market for hair care and skin care products.
Vatika is a comparatively young brand but is already acknowledged for the
qualitatively influential and pioneering role that it has played in the evolution of the
19

categories it has had a presence in. Currently, the total annual sales of Vatika products
are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the
coconut hair oil category (Source: ACNielsen ORG-MARG, 2003).
Vatika has not just been successful in garnering a premium image but, today, stands as
the preferred and trusted brand of 11.1 million users (Source: IRS Household Data).

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.

20

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

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

Price

Promotion

Product

List Price

Variety

Discount

Quality

Financing

Design

Features

Brand

Channels

Promotion

Location

Public Relations

Inventory

Schemes

Sponsorships

Credit Terms

Internet
Marketing

Names

Advertising

Place

Services

21

&

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, kapurkachari, harar, dugdha and sugandhit dravyas.
Packaging: The qualities of Vatika products, ascribed to the brand by hundreds of
thousands of satisfied consumers, have been further underlined by its attractive
packaging. In a category dominated by blue packs as analogous of pure coconut
oils, Vatika broke the norm with its white and green bottle with a mushroom cap.
The green-and-white 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.

22

Available in:
Bottles

75 ml, 150 ml, 300 ml

Flip cans

150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have been blended
together through scientific processes at Daburs in-house research laboratories.
Dabur Research Foundation has more than 100 scientists working together to make
superior quality products that match international standards.

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.

23

PRICE/QUALITY MATRIX
Price
Quality

High

Middle

Low

Luxury Segment

Ideal For Penetration

Premiere

High

Offering

VATIKA
Overpriced

Average

Real Bargain

Unhappy Customers

Cheap Goods

Middle

Make
Low

The

Sale

and Run

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:
24

Distribution Network

Central, North & South America

Australia

Asia

Middle East

25

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

.
Vatika Hair Oils first promotion: It focused on the key benefit beautiful hair
without hair problems that came about as a result of the extra nourishment
through the value addition of henna, amla and lemon-derived additives.
Creating conceptual awareness: In the initial phase of the communication, the
marketing objective was to create conceptual awareness about the new product
the goodness of coconut oil enriched with natural herbs. Vatika was firmly
established as the leader in the new category of value-added hair oils and its
promotion campaign was so successful that the product segment itself came to be
identified with Vatika.

26

COMPETITOR ANALYSIS
The key competitors of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj,
Marico, HLL which together with Dabur have about 64% of India's domestic market.
Dabur is one of India's largest player in the hair oil segment and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business level in 2003
of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%.
We have tried to analyse the competition for Dabur in the Hair Care segment as follows:

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The
pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant
presence in eastern and western India. Its share is 6% of the total hair oil market.

27

Emami has existence in hair oil market through Himani Navratan oil and Himani Oil.
Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh
Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market.
Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond Drops
currently have a value share of 19 per cent and 12 per cent in their respective oil
categories as per ORG-Marg. Besides, the company has also decided to enhance its retail
presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to
reach the rural parts. Overall it has a market share of 4% in hair oil market.
Maricos Parachute is premium edible grade oil, a market leader in its category.
Synonymous with pure coconut oil in the market, Parachute is positioned on the platform
of purity. In fact over time it has become the gold standard for purity. Parachute's primary
target has been women of all ages. The brand has a huge loyalty, not only in the urban
sections of India but also in the rural sector. It has a market share of 28%.
HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it has
a 3% share in hair oil market.

28

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)?

29

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

Non sticky

Brand Loyalty

Fragrance

Price

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

6.

TV

Internet

Word of Mouth

Print

If your brand is not available you would..?

Purchase another brand

Wait for it to be available

Go for a substitute

Buy what is offered by the retailer

7. Which pack size do you prefer?

75 ml

150 ml

300 ml

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

Availability

Price

Family size

Storage

30

9. How often do you buy?

Once in 15 days

Once a month

Once in two months

10. Are you satisfied with your brand?

Yes

No

Personal Information :Age:

Location:
Income (per month):
(1) Rs. 1,000 Rs. 10,000

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

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

31

CUSTOMER SURVEY RESULTS

DABUR VATIKA
AWARNESS LEVEL

PREFERRED BRAND

SATISFACTIONLEVEL

32

RETAILER QUESTIONNAIRE-DABUR VATIKA

HAIR OIL
Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for the Hair Oil category that we have chosen to study.
Any information provided by you will purely and strictly be used for Academic Purpose
only.
1. Which brands of Hair Oil do you stock?

Marico

HLL

Keo Karpin

Dabur Vatika

2. Out of these which are the most preferred?

Marico

HLL

Keo Karpin

Dabur Vatika

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

Brand loyalty

Price

Availability

No reason

4. What is the profile of your typical consumer?

High income

Middle income

Low income
33

5. What schemes are you offered by the companies?

Price discounts

Buy one get one free

Others

6. What schemes does a consumer prefer most?

Price discounts

Buy one get one free

Others

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

preference?

Yes

No

8. Does a change in price affect their preferences?

Yes

No

Personal Information :Location of store:

34

RETAIL SURVEY RESULTS

DABUR VATIKA
1. Which brands of Hair Oil do you stock?

2. Out of these which are the most preferred?

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

35

36

STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION
Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under
the category of health supplements. The segments that it considers are growing kids,
competitive youth, ever busy housewives and the aged.
For the growing kids: In today's competitive environment, the children are under high
pressure to excel.
For the competitive youth: Modern life keeps the youth busy and demands them to be
active and efficient.
For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all
responsibilities.
For the aged: Old age weakens a person physically and mentally.
After segmenting the population into these categories it aims to keep them fit and healthy.

TARGETING
Traditionally, chyawanprash was supposed to be a health supplement for the aged and
kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and
kids .This it is trying to achieve through its promotion activities by making Amitabh
Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a
user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in
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

37

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
Product

Price

Promotion

Product

List Price

Variety

Discount

Quality

Financing

Design

Features

Brand

Channels

Promotion

Location

Public Relations

Inventory

Schemes

Sponsorships

Credit Terms

Internet
Marketing

Names

Advertising

Place

Services

PRODUCT
38

&

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

health

beneficial

and

several

other herbs and herbal extracts.

Special
Vishwast

fortified

with

additional

herbs

Keshar, Akarkara etc.

Packaging:

The figure above shows the evolution of the packaging of Dabur Chyawanprash.

Advertisement showing Vivek Oberoi

39

like

A little boy suggests his brother to have Dabur To which the brother replies,
Chyawanprash everyday.

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.

Running with super energy the boy dives into the river. ...the big brother also dives in
Not to be left behind...

the river but ultimately stops

when

he

gets

tired

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.

40

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:

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%.

CONSUMER QUESTIONAIRRE-DABUR
CHYAWANPRASH
Dear Respondent,
41

Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for chyawanprash.
Any information provided by you will strictly be used for Academic Purpose.
1. Which brands of Chyawanprash are you aware of?

Zandu

Himani

Baidyanath

Dabur

2. Which brand of Chyawanprash do you use?

Zandu

Himani

Baidyanath

Dabur

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

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

Health

Brand Loyalty

Taste

Price

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

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TV

Internet

Word of Mouth

Print

6. If your brand is not available you would..?

Purchase another brand

Wait for it to be available

Go for a substitute

Buy what is offered by the retailer

7. Which pack size do you prefer?

1 kg

500 gm

250 gm

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

Availability

Price

Family size

Storage

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9. How often do you buy?

Once a month

Once in two months

Once in six months

10. Are you satisfied with your brand?

Yes

No

CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH
AWARNESS LEVEL

PREFERRED BRAND

44

SATISFACTION LEVEL

REASONS FOR SELECTING A PARTICULAR BRAND

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

45

UNAVAILABILITY OF PREFERRED BRAND

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH
1. Which brands of Chyawanprash do you stock?

46

2. Out of these which are the most preferred?

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

47

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 asof-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. Fiftyfive 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 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.

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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
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.
49

BOSTON CONSULTANCY GROUPS GROWTH

SHARE MATRIX

DABUR

In the past, the sheer diversity of Dabur's product portfolio has made an evaluation of
the company's prospects quite difficult.
Dabur's FMCG business contributes over 70 per cent of Dabur India's current revenues.
Within the FMCG business, Dabur India focusses on three key product groups family
products, healthcare and FMCG exports. The family products portfolio boasts of quite a
few market leading brands Dabur Amla and Vatika hair oils, Vatika shampoo, Dabur
Honey, and Dabur Lal Dant Manjan.
Dabur India also has well-recognised brand names and an established distribution set-up
in the healthcare business with brands such as Dabur Chyawanprash, Hajmola, Pudin
Hara and Dabur Lal Tail. Given Dabur's acknowledged strengths in ayurvedic healthcare,
the scope for expansion in each of these product baskets is considerable.
Though in the recent years, the growth from Dabur's FMCG portfolio has been
sedate, due to sluggish rural demand and intense competition from a host of regional

50

brands and counterfeit products. However Dabur's operating profit margins have been
more or less constant over this period.
However, the FMCG business is Dabur's cash cow contributing over 70 per cent of
Dabur India's current revenues. The business has consistently generated high cash
flows and called for minimal incremental investments. The overall growth in hair oil
industry has been 7% whereas growth in branded coconut oil has been 10%.Vatika
hair oil has a market share of 19% and Dabur Chyawanprash has a 61% market
share and is the market leader. Both of these are therefore Daburs cash cow.

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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, well-balanced, 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
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
52

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.

53

RESEARCH METHODOLOGY
As the purpose of the project report is to analyse the consumable products successfully
launched in the last three years. The data was collected both with the help of primary as
well as secondary sources.
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 analyzed.
The questionnaire method was useda)

To get first and relevant and unbiased information

b)

Questionnaire provides versatility and solutions can be obtained by just asking the
questions.

c)

Questioning is usually faster and cheaper.

d)

Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the company has furnished
for the general public. The secondary data was gathered with the help of various
magazines, newspapers, journals, brochures and also through the internet. For secondary
sources no field work was employed.

54

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.

55

For Dabur Chyawanprash and Vatika hair oil.

1.

Sample size for customers were 150 in number and the universe comprised of all
the consumers within the geographical region of Delhi.

2.

Sample size for retailers were 40 in number and the universe comprised of all the
consumers within the geographical region or Delhi.

3)

Sample size for Distributor & Wholesaler were four in number & the universe
comprised of all the consumers within the geographical region of Delhi.

No other field work was employed to gather the information. The questionnaires were
distributed to the respondents and the data was collected through primary and secondary
sources.
The statistical technique such a Pi-chart and percentages were used in analyzing and
interpreting the data.

56

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 rather well with the masses. Dabur has clearly lost it head start
advantage and thereby acquiring just 35% of the market share while others enjoy rest of
the market share. This could be well attributed to dabur successful ATA (Availability,
Taste and Affordability) marketing module, the attributes most rated by the consumers.
Lack of publicity has hampered the growth progress of

the brand so aggressive

advertising is needed to promote Chyawanprash and vatika hair oil brand .The brands
such as that of Chyawanprash by vednath,

Chyawanprash with its sonacahndi,

Minute- made and also US food giantssDel Monte are ready to hit the Chyawanprash
market very soon.
Vatika hair oil has no major competition except 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.
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.
57

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.

58

REFERENCES
Books:
Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller
Websites:
www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com

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