STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

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

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

TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for

the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults,
housewives, youth and kids. This it is trying to achieve through its
promotion activities by making Amitabh Bacchan and Vivek Oberoi do the
endorsement act. Amitabh has been projected as a user of Chyawanprash
attempting to establish the relevance of DCP amongst the adults in today’s
demanding lifestyle. Vivek, who represents an urban ambitious non-user
with a mindset that Chyawanprash is not for him, meets his moment of
truth when outperformed by a young Chyawanprash user, thus reaching
out to kids. His final conversion from a non-user to a Chyawanprash user
connects with the Youth. These two ads compliment each other and
connect very well with the targeted consumers

POSITIONING

"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong”
By using a natural language instead of scientific language it is able to
connect with the consumers and is able to achieve a better positioning in
the minds of the Indian health conscious consumer. A category like
Chyawanprash for instance needs to understand that in employing the
category language it loses any chance of expressing its own benefit
distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in

stimulating immune system, relieving stress, improving stamina, fighting
aging through anti-oxidant property, improving lung function, fighting
respiratory infections & building resistance to disease. The brand conveys
this health conscious holistic view of the product.

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

selection, processing and quality control of right herbs along with
scientific and clinical studies – makes DCP a trustworthy offering for
consumers. Consumers view DCP as a product by a trusted brand and
therefore do not need to think twice before making a purchasing decision.

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MARKETING MIX OF DABUR CHYAWANPRASH

Dabur Chyawanprash is the market leader in the chyawanprash segment

and has achieved this with its innovative product offering, pricing strategy,
easy availability and promotion campaigns. In the marketing mix of Dabur,
we shall be discussing the 4 Ps of marketing mix with respect to Dabur
Chyawanprash. The mix shall be analyzed as followed:
 Product
 Price
 Place
 Promotion

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Product Price Promotion Place

• Product • List Price • Advertising & • Channels

Variety • Discount Promotion • Location
• Quality • Financing • Public • Inventory
• Design Schemes Relations
• Features • Credit • Sponsorships
• Brand Terms • Internet
Names Marketing
• Services

PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash

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

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(Indian Gooseberry) acts as an anti-oxidant and immune-stimulant. Dabur
Chyawanprash helps in stimulating immune system, relieving stress,
improving stamina, fighting aging through anti-oxidant property, improving
lung function, fighting respiratory infections & building resistance to
disease. It is these properties that make Dabur Chyawanprash a preferred
choice for its users.

Ingredients of Dabur Chyawanprash

 Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
 Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.

Available in:
Dabur Chyawanprash is available in three sizes to cater to the needs of
different types of people.
1. One kilogram pack
2. 500 gram pack
3. 250 gram pack

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 PRICE

The pricing of Dabur chyawanprash is very competitive. Dabur

chyawanprash uses second-degree price discrimination i.e. more the
quantity, lower the price.
1kg Rs.175.00
500gms Rs.100.00
250gms Rs. 55.00

PRICE/QUALITY MATRIX

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 Price→

Quality High Middle Low

Luxury Ideal For Premiere

Segment Penetration Offering
High
DABUR
CHYAWANPRASH

Overpriced Average Real

Middle Bargain

Make The Unhappy Cheap

Low Sale and Customers Goods
Run

PLACE

Dabur has a very wide distribution of its products through 1.6 million retail
outlets and 50 C & F agents all over India who distribute products to the
retailers. A distribution of C & F agents and manufacturing locations is
given below.

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Dabur’s distribution network extends beyond India in the following
countries as well:

Distribution Network

 Central, North & South America

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

PROMOTION

The main form of promotional activities of Dabur chyawanprash is

concentrated towards advertising and it has legible sales promotional
activities.

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Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with
prospective buyers. Ads are necessary because the images are still mould
able and fluid and the consumer’s sophistication level is low. Dabur
chyawanprash is advertised on print media as well as on television.
The company has launched three ads, one each with Amitabh, M.S.DHONI
and Vivek, in national electronic media followed by a series of print media
campaign directed towards creating awareness to educate people about
the holistic benefits of Chyawanprash.The ads have been created by
McCann Ericsson and the company would be spending close to Rs 10
crore in promotional campaign this year. The ads would also be translated
in Bengali. These advertisements are supposed to target the old and the
younger generation respectively.

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 COMPETITOR ANALYSIS OF CHYAWANPRASH

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

Baidyanath, Zandu and Himani, which together with Dabur have about 85%
of India's domestic market.

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business
level in 2003 of about 650 million dollars per year, though only a fraction of
that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal
honey) has a market share of 61%.

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

segment as follows:

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Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded
in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has
recently expanded into the FMCG sector with cosmetic and hair care
products; one of its international products is Shikakai (soap pod)
Shampoo. Its Chyawanprash has a market share of 10%.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named

after an 18th-century Ayurvedic. The company focuses primarily on
Ayurvedic products (in 1930, pharmaceuticals were added, but the
pharmaceutical division was separated off about 30 years later).

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

doing 110 million dollars of business annually, though only a portion is
involved with Ayurvedic products, through its Himani line; the company is
mainly involved with toiletries and cosmetics, but also provides
Chyawanprash and other health products. Its market share

DABUR CHYAWANPRASH

AWARNESS LEVEL

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

INTERPRETATION

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

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 PREFERRED BRAND

60

50

40

30 PERCENTAGE
20

10

0
ZANDU HIMANI BAIDYANATH DABUR

INTERPRETATION

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

CHYAWANPRASH

SATISFACTION LEVEL

5
4.5
4
3.5
3
2.5
2 RATING(1-LOW 5-HIGH)
1.5
1
0.5
0
ZANDU HIMANI BAIDYANATH DABUR

INTERPRETATION

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

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 SWOT ANALYSIS OF DABUR
STRENGTHS
 Strong presence in well defined
niches( like value added Hair Oil
and Ayurveda specialities)
 Core knowledge of Ayurveda as
competitive advantage
 Strong Brand Image
 Product Development Strength
 Strong Distribution Network
 Extensive Supply Chain
 IT Initiatives
 R & D – a key strength
OPPORTUNITIES
 Untapped Market(Chyawanprash)
 Market Development
 Export opportunities.
 Innovation
 Increasing income level of the
middle class
 Creating additional consumption
pattern
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WEAKNESS
 Seasonal Demand( like
chyawanprash in winter and
Vatika not in winter)
 Low Penetration(Chyawanprash)
 High price(Vatika)
 Limited differentiation (Vatika)
 Unbranded players account for
the 2/3rd of the total
market(Vatika)
THREATS
 Existing Competition( like
Himani, baidyanath and Zandu
for Dabur Chyawanprash and
Marico,Keo Karpin, HLL and
Bajaj for Vatika Hair Oil)
 New Entrants
 Threat from substitutes (like
Bryllcream for Vatika hair oil)
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 DISTRIBUTION

Supply chain: Dabur has steadily improved its procurement and

distribution systems to achieve a significant reduction in material costs.
Dabur has an extensive supply chain and distribution network that has
grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen
manufacturing locations, six mother-warehouses and over 50 Carrying and
Forwarding Agents (CFAs) that distribute more than 1,000 SKU’s to several
thousand stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse
displays as-of-yesterday sales, stock, receivables, banking, and other MIS.
Over 5,000 ASP pages meet almost all reporting requirements and make
this a single source of MIS for all levels of decision makers.
VSATs: This Success paved the ground for the company's supply chain
initiative. Fifty-five Ku Band TDMA VSATs were used to link primary
distributors to the system. Factories were hooked up using PAMA
(Permanent Assigned Multiple Access) VSATs. At some locations VPNs
had to be used because it was not possible to set up a dish. The integrated
primary and secondary system has a number of unique features. The
features like tight integration of schemes, stockists credit limit control,
automated banking of cheques, and online cheque reconciliation have
obvious advantages in the primary distribution. These are basically
extensions to the MFG/PRO ERP system and not core customizations. The
integrated system allows each Area Manager to plan for the month's sales
forecasts, stockist’s performance, and sales officers' performance. The
integration allows better control on pipelines in primaries and secondaries,
brings down inventories, and offers better control on production and sales
against a confirmed forecast. The idea is to increasingly shift focus from
primaries to secondaries. Schemes based on secondary volumes will help
control secondary pipelines and sales. Primary sales will therefore come
from a resultant 'pull' from secondary replenishments. Further, sales order
servicing can be improved by taking orders through the Internet.

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