Marketing Strategy Project

Marketing Research on “DABUR Ind Ltd”

 Dabur India Ltd
INTRODUCTION TO DABUR –

“Dabur is derived from the word ‘Da’ for ‘Daktar’ or ‘Doctor’ and ‘bur’ from
Burman.”

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues
of about US$750 Million (over Rs 3416 Crore) & Market Capitalization
of over US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy of
quality and experience of over 125 years, Dabur is today India’s most
trusted name and the world’s largest Ayurvedic and Natural Health
Care Company.

Dabur today operates in key consumer products categories like Hair Care,
Oral Care, Health Care, Skin Care, Home Care and Foods. The
company has a wide distribution network, covering over 2.8 million
retail outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and
are today available in over 60 countries across the globe. Its brands are
highly popular in the Middle East, SAARC countries, Africa, US,
Europe and Russia. Dabur's overseas revenues stand at over Rs 500
Crore in the 2008-09 fiscal, accounting for about 20% of the total
turnover.
COMPANY PROFILE OF DABUR Ind Ltd

Type -
Public (NSE, BSE)

Founded -
1884

Headquarters -
Ghaziabad

Key people -
V. C. Burman

Business -
Dabur’s product range encompasses health care, personal care, ayurvedic specialties and food segments.

Brands -
Well-known brands include Amla, Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care and Pudin
Hara.

Location -
Dabur has been marketing its products in more than 50 countries all over the world. The company has
offices and representatives in Europe, America and Africa. Manufacturing facilities are spread across
three overseas locations.
Revenue –
Turnover of approx Rs 3417,1 Crore (FY-2010) & Market Capitalization of Rs. 15500 Crore.
 SWOT ANALYSIS FOR “DABUR”
Strength Weakness
•Century Old Company •Seasonal Demand (like Chyawanprash in winter
•Established Brand and Vatika not in winter)
•Ayurvedic/ herbal Product line •Profitability is uneven across product line
•Leader in Herbal Digestives where the product •Low Penetration (Chyawanprash)
has 90% of the market share •Limited differentiation (Vatika)
•Core knowledge of Ayurveda as competitive •Unbranded players account for 2/3rd of the total
advantage market (Vatika)
•Strong Brand Image
Strong Distribution Network
•Extensive Supply Chain
•R & D - a key Strength

Opportunity Threat
•Extend Vatika brand to new categories like Skin
Care and body wash segments
• Existing Competition like Himami, Baidyanth
and Zandu for Dabur Chyawanprash and Marico,
•Market Development
Keo Karpin, HLL and Bajaj for Vatika Hair Oil)
•Export Opportunities
•New Entrants
•Innovation
•Other fields of medicine- Allopathic and
•Increasing income level of the middle class
Homeopathic
•Creating additional consumption pattern
 Main Competitors for Dabur Products
Category of Dabur’s Share Main Competitors
products

Fruit Juice 58% Real Active Tropicana

Hair Oil 6.4% Vartika HUL, P&G, Marico

Shampoo 7.1% Vartika Shampoo HUL, P&G

Hair Care (Overall) 27% HUL, P&G, Himalaya

Chyawanprash 64% Himani, Pathanjali,

Himalaya

Honey 40% Himani, Hambard and

Local Players

Digestive 37% Paras & Local Players

 Product Range of Dabur (as per 2010 survey)

 Hair Care  Health Suppliment

Hair oil – Ø Dabur Chyawanprash
Ø Dabur Amla, Ø Dabur ChyawanPrakash -Orange an
Ø Dabur Amla Flower magic, Mango flavors available

Ø Dabur Vatika coconut, Ø Dabur Chyawan Junior. (Chocolate-

flavored)
Ø Vatika Almond.
Ø Dabur Honey, the purest branded Honey.
Ø Dabur Anmol
Ø Dabur Glucose
Shampoo –
 Digestive
Ø Smooth & Silky,
Hajmola (Tablets and Candies)
Ø Root Strengthening and Black
Shine shampoo,  Skin Care

Ø Vatika Dandruff Control, Gulabari

Ø Dabur Total Protect. FEM

Uveda Ranges
Conditioner –
Ø Vatika Smooth & Silky Conditioner, Bleaches

Ø Vatika Root Strengthening Conditioner  Food Products –

 Oral Care Ø Real Active Juice

Ø Dabur RED Paste, Ø Real Juice (12 delicious variant)

Ø Meswak, Ø Real Burrst

Ø Promise, Ø Hommade

Ø Babool Mint Fresh, Ø Lemoneez

Ø Babool Ø Capsico Red Pepper Sauce

Ø Dabur Lal Dant Manjan

 Home Care  Health Care

Ø Surface Cleaner Ø Rubs & Balm

Dazzil Dabur Balm Strong

SaniFresh Dabur Balm Double Action

Ø Odomos (Mosquito Repellent) Ø Baby Care

Odomos Cream Dabur Lal Tail

Odomos Lotion Dabur Janma Ghunti

Ø Air Care Dabur Gripe Water

Odonil Room Freshener Ø Gastro-Intestinal

Odonil Block Dabur Pudin Hara

Ø Dish wash Ø Cough & Cold

Odopic Dish wash Dabur's Honitus Cough Syrup

Odopic Dish washing powder

 Pricing Strategy of Dabur
PRICE
Price is normally expressed in monetary terms. It is worth of a product or service
in monetary terms. Price is the value which a buyer passes on to the seller in
lieu of the product or service provided. Price is a crucial determinant of the fact
whether the exchange between the buyer and seller should materialize or not.
While pricing the products three main factors should be kept in mind -:
 Cost
 Competition
 Consumer demand

Pricing Strategies of Dabur

Dabur has stepped up the pace of new product launches and is investing ad spend
and marketing. The entire product portfolio is also tweaked to include premium
offerings such as more variants under almost every category, like Dabur Vatika
Hair Oil is available in 3 different versions.
Dabur is today seen as far more proactive in the market. Dabur is now an external
oriented company. Across the whole organization the company have one
definition of winning, and that means not just growing, but growing completely.
Over the last two years, Dabur has maintained its operating margins through
judicious price hikes across products and reduction in pack sizes.
I.COST
One of the most important factor to take care while pricing is the cost costs
set the floor for pricing decisions. There are two types of cost variable cost
and fixed cost. It is important that the price should recover all costs
including a fair return for undertaking the marketing effort and risk.

II.COMPETITION
Competition is another important consideration while pricing. When a firm
does not face any competition it can enjoy complete freedom in fixing its
price. But when there are competitors selling the same or similar
products, the pricing freedom is considerably reduced. Its price must fall
in line with the competitors. Similarly Dabur India Limited also has many
competitors. But Dabur’s top selected competitors are:-
 Hindustan Unilever Limited
 Proctor and Gamble
 Pepsi co.
 Colgate Palmolive
 Godrej Industries
 Marico Ltd. etc.

III.CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the
Indianised natural and herbal products thus they made it their USP.
Dabur is efficiently leading the market with this product range, providing
the customers with special products easily.
 PLACE & PROMOTIONAL STRATEGY
PLACE:
Place in the context of marketing mix refers to a set of decisions that need to be
taken in order to make the products available to the customers for purchase
and consumption. Making the products available to the customers require
development of channels of distribution and physical distribution of products.

CHANNELS OF DISTRIBUTION:
A channel of distribution refers to the path taken by the goods in their movement
to the customers. For instance, the toothpaste we use is manufactured in the
factory of a company Dabur. But before it reaches us it passes through the
hands of many middlemen who help it come to you in right time, at right place
and in right quantity.
Dabur’s distribution network is recognized as one of its key strengths. Its focus is
not only to enable easy access to our brands, but also to touch consumers with
a three-way convergence - of product availability, brand communication, and
higher levels of brand experience.
The Channel of Distribution of Dabur foods, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to
Clearing And Forwarding Agents(C&FA) and from here the goods are then
further supplied to number of Stockiest or Distributors, from here goods
reaches to large number of Retailers and it is the duty of Stockiest to take
orders from retailers and then supply the goods to them, this work is generally
done by stockiest salesman through ready stock or by taking orders first and
then placing the order. From here the goods finally reaches to Customers.
Customer purchases the product from retailers.
 PROMOTION

Once the product has been manufactured, priced rightly and is distributed, the next
task of the marketer is to inform potential customer about the product and
persuade them to buy the same. The promotion element of marketing mix is
concerned with activities that are undertaken to communicate with both
customers and participants in the channel of distribution such that sales goals
are realized. There are different promotional activities like-: Advertising, Sales
promotion, trade promotion, personal selling etc. but one of the most convenient
and effective one that most of the industries uses is the Advertising and Sales
Promotion.
Advertising
Advertising is a form of communication that typically attempts to persuade potential
customers to purchase or to consume more of a particular brand of product or
service. Many advertisements are designed to generate increased consumption of
those products and services through the creation and reinforcement of "brand
image" and "brand loyalty". For these purposes, advertisements sometimes embed
their persuasive message with factual information. Every major medium is used
to deliver these messages, including television, radio, cinema, magazines,
newspapers, video games, the Internet and billboards. Advertising is often placed
by an advertising agency on behalf of a company or other organization.
Dabur has created the huge brand image and a vast product following by associating
mega-names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira
Bedi etc. Dabur invested Rs. 150 crore just on the advertising of Real “Fruit
Juice” and “Real Active”. So far the company has been successful in this mission
as the people now know the brand and ask for its products by name.
Sales promotion
“An activity designed to boost the sales of a product or service. It may include an
advertising campaign, increased PR activity, a free-sample campaign, offering
free gifts or trading stamps, arranging demonstrations or exhibitions, setting
up competitions with attractive prizes, temporary price reductions, door-to-
door calling, telemarketing, personal letters on other methods”.

In marketing, sales promotion is one of the four aspects of promotion. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Sales promotions are non-personal promotional
efforts that are designed to have an immediate impact on sales.

Sales promotion involves short-term incentives to encourage buyers to purchase a

product. It's aim is to encourage immediate purchase of a product. If used too
often however, sales promotion can create a situation where consumers will not
buy unless there is a bonus offer. This will result in loss of profit for the
company.

More than any other element of the promotional mix, sales promotion is about
“action”. It is about stimulating customers to buy a product. It is not designed
to be informative – a role which advertising is much better suited to.

Sales promotion can be directed at:-

•The ultimate consumer (a “pull strategy” encouraging purchase)
•The distribution channel (a “push strategy” encouraging the channels to stock the
product). This is usually known as “selling into the trade”
SALES PROMOTIONAL TOOLS OF DABUR FOODS
 Price promotions
 Coupons
 Gift with purchase
 Competitions and prizes
 Money refunds
 Point-of-sale displays
 Free samples
 Contest /demos
 Festival Sales
 Retailer coupons
 Multi-packs
 Special price for twos
 Allowances for additional shelf space
 Merchandising
 Sales contest
 Incentives
 Awards & prizes
 Premium gifts
 Sales Meetings
 Samples/product sampling
 Contests & Sweepstakes
 Exchange Offers/buyback
 Refund / Rebate
 Price / Bonus Packs
PROMOTIONAL SCHEMES USED FOR STOCKIESTS
§ Encourage stockiest to participate in displays and sales contests.
§ Higher Margins: Tries to give higher margins to stockiest so that they don’t loose interest in
the product and can earn good profits after meeting all the expenses.
§ Sales Contests: Sales contest are held annually and whichever stockiest has the best sales
record a prize is given to him, like free holiday to the family etc.
§ Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.
§ Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some
money on the promotional schemes, like conducting a sampling activity.
§ Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.
§ Training: Special Training is given to Stockiest Sales Man, a training workshop is organized
by the company for stockiest sales man so that they don’t face any problem while placing
their products and taking orders from retailers.
§ Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.
§ Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest
once a year.
§ Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and their
sales man.
§ Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
§ Free danglers and posters for publicity.
§ Buyback: Dabur foods have a scheme of replacement of products which gets expired.
PROMOTIONAL SCHEMES USED FOR RETAILERS

 Trade allowances: Short term incentives are offered to induce a retailer to stock up more dabur
products.
 Dealer loader: An incentive given to induce a retailer to purchase and display the products of dabur.
 Trade contest: A contest to reward retailers those sells the most product of dabur foods and after a
specific period they are rewarded.
 Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like danglers,
posters, banners etc helps in promoting sales.
 Push money: Also known as "spiffs". An extra commission paid to retail employees to push products.
This kind of practice dabur hardly follows.
 Free samples: Dabur foods gives free samples are given to retailers so that they can try that product if
the product is new, or gives some discounts.
 Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.
 Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash discounts
if payment is made in cash.
 Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer buys and sells
a specific amount of products.
 Higher Margins: Retailer has the highest margins and dabur foods also have the same criteria, and
retailer can further sell the dabur product to consumer at discount keeping his margin safe.
 Allowances for additional shelf space: Company as such does not pay anything to retailer but gives
some additional benefits for giving them shelf space which is visible to customer when ever they enter
the shop.
 Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising dabur
products. When ever the Stockiest sales man goes to take orders then he also merchandises dabur
products.
 Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with that.
 Trade Allowance: Dabur comes with different types of trade discounts from time to time, like sometime
price discounts, sometimes gifts etc.
 Free goods: Dabur gives free goods on the purchase of specific number of goods.
 Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at the
time of purchase.
 Product sampling: Dabur organizes sampling activities for its products which are new, these activities
are generally at the place where footfall is very high.
 Displays: Dabur tries to give special displays to the retailers, so that they can display their products on
that.
PROMOTIONAL SCHEMES USED FOR CONSUMERS
§ Price deal: A temporary reduction in the price is given to consumer during some festival
session by dabur foods.
§ Price-pack deal: The packaging offers a consumer a certain percentage more of the product
for the same price (for example, 25 percent extra).
§ Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.
§ Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
§ On-shelf coupons: Coupons are present at the shelf where the product is available.
§ Rebates: Consumers are offered money back, rebate at different point of time.
§ Contests/sweepstakes/games: if a customer wins some game or contest at the time of
sampling activities then they are given a discount coupon of products of dabur foods.
§ Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur
keeps a special check on the displays and merchandising of dabur products.
§ Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
§ Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
§ Money Refunds: Customer can claim for refund of money if they face some problem with the
product
§ Contest /demos: There are different contests where customers play games and win contests.
§ Festival Sales: Dabur foods come out with some special offers during festival seasons like
buy one get one free.
§ Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.
§ Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it
easier for customers to know about product line and choose the best out of that.
Awards and Achievements-
1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes

2. Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods
space in India

3. Dabur ranked among Top 10 Best Companies to Work For in the Consumer
Goods and Durables sector

4. Dabur ranked 45 among Most Trusted Brands In India, according to Brand Trust
Report, India Study, 2011

5. The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100 Richest
Indians' list

6. Dabur listed among the enterprises that are 'Doing India Proud' in Limca Book of
Records
2010

7. Dabur ranked 200 in the Fortune India 500 list that ranks India's 500 largest
corporations

8. Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company

9. Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace
bag international Promotion Marketing Award of Asia 2010
Project Done by :
 Sayantan Bhattacharya
 Abhik Sinha
 Ankur Chhetri
 Promit Chowdhury