the dissertation topic on

‘‘Market Expansion Strategy Of Dabur With Special

Reference To Dabur Chyawanprash for Rural Market Hapur’’

Submitted by: - Submitted to:-

PALASH ROY Prof. GOVIND NATH

PGDM 3RD SEM, (BATCH 2008-10) PROFESSOR
Enrollment No: PG2K8 133 ITS, GHAZIABAD
Email- palash.roy26@gmail.com Email- nathgovind@rediffmail.com
 CERTIFICATE

This is to certify that the Dissertation titled ‘‘Market Expansion Strategy

Of Dabur With Special Reference To Dabur Chyawanprash
for Rural Market Hapur” submitted by Mr. Palash Roy, student of PGDM
(2008-10) in INSTITUTE OF TECHNOLOGY & SCIENCE, Ghaziabad for
the partial fulfillment of the requirement of the POST GRADUATE DIPLOMA IN
MANAGEMENT, embodies the bonafide work done by him under my
supervision. I also declare that this summer training project is a result of his effort
and no part of this project work has been published earlier for any degree or
diploma for any institute or university.

Date: Signature of the Mentor

 ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual. Rather, it is an

amalgamation of the efforts, ideas and co-operation of a number of entities. The
compilation and presentation of this opuscule has bestowed me with an opportunity
to show my gratitude to those subservient to it.

I am highly indebted to my guide Prof. Govind Nath who has been the hallmark
of this effort. Their guidelines made me comprehend the enigmatical portion of the
subject and were the sole animating force that coerced me to meliorate my efforts
without the support and guidance the project report would not have taken shape.
 PREFACE

Management training has gained rapid importance only recently. Management was
previously considered as an inborn art or talent. But in today’s fast developing
word this view has been abandoned.
To develop managerial capabilities and to supplement their theoretical knowledge
with practical experience, the management students are required to go training in
business organization.
This study would not only help me as a management student to gain a deep insight
of how an organization works but also practical usage of all management
techniques that I have learnt during the course of my study. This project would also
help me analyze the difference between the organizational realities and the theories
that have been taught in my academic session and also gave me a real experience
of the corporate world let me better understand how it function. It also taught me
how to take every experience in the right and learn from each one. Finally the
analysis feasible to be put to test in real life situations. I shall consider all my hard
work worthwhile if this endeavor of mine is able to satisfy all those concerned and
proves useful to anyone or for any further study in the future.

PALASH ROY

CONTENTS
1. ACKNOWLEDGEMENT
2. EXECUTIVE SUMMARY
3. OVERVIEW OF FMCG SECTOR IN INDIA
4. ABOUT DABUR
 PRODUCT LINE
 SWOT ANALYSIS OF DABUR
 THE MARKETING MIX ANDSELLING PROCESS
5. THE MARKETING MIX
6. OBJECTIVE OF THE STUDY

7. RESEARCH METHODOLOGY
8. DATA ANALYSIS
9. RECOMMENDATIONS
10.COMPETITOR ANALYSIS
11.CONCLUSIONS
12.BIBLIOGRAPHY
13.QUESTIONNAIRE
 1.

EXECUTIVE SUMMARY

This report aims at analyzing and reporting on the marketing strategies of Dabur
India Ltd (DIL) for the brands Dabur Chyawanprash. 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 analyse the marketing mix of Dabur
Chyawanprash.

The report also enlists various recommendations based on BCG Growth Share
Matrix analysis, Ansoff’s 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.
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
characterised by a well-established distribution network,
intense competition between the organised and
unorganised 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 food-processing
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) resides in the rural areas. The total number of
rural households are 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.

Rural and urban potential

 Rural-urban profile

Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3

Source: Statistical Outline of India (2008-09), NCAER

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
 ABOUT
DABUR

A.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 India’s 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 for—shampoo or digestive tablets?” The
answer is fairly simple, it stands for India’s 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). There’s
a great sense of responsibility for investors’ funds on view. This is a direct
extension of Dabur’s philosophy of taking care of its constituents and it adds to the
sense of trust for the brand overall.
B.

Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story of
success is based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results of our
policies and initiatives speak for themselves.

 Leading consumer goods company in India with a turnover of Rs.2233.72

Crore (FY07)
 2 major strategic business units (SBU) - Consumer Care Division (CCD)
and Consumer Health Division (CHD)
 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur
International and 3 step down subsidiaries of Dabur International - Asian
Consumer Care in Bangladesh, African Consumer Care in Nigeria and
Dabur Egypt.
 13 ultra-modern manufacturing units spread around the globe
 Products marketed in over 50 countries
 Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India
C.

1884 Birth of Dabur

1896 Setting up a manufacturing plant
Early
Ayurvedic medicines
1900s
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
Sahibabad factory / Dabur Research
1979
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
2003 Dabur demerges Pharma Business
2005 Dabur aquires Balsara
2005 Dabur announces Bonus after 12 years
Dabur crosses $2 Bin market Cap, adopts
2006
US GAAP
Approves FCCB/GDR/ADR up to $200
2006
million
2007 Celebrating 10 years of Real
2007 Foray into organised retail
 2007 Dabur Foods Merged With Dabur India

D.

Founding Thoughts

"What is that life worth which cannot bring comfort to others"

The doorstep 'Daktar'
The story of Dabur began with a small, but visionary
endeavour by Dr. S. K. Burman, a physician tucked away in
Bengal. His mission was to provide effective and affordable
cure for ordinary people in far-flung villages. With missionary
zeal and fervour, Dr. Burman undertook the task of preparing
natural cures for the killer diseases of those days, like cholera, malaria and plague.
Soon the news of his medicines traveled, and he came to be known as the trusted
'Daktar' or Doctor who came up with effective cures. And that is how his venture
Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr.
Burman set up Dabur in 1884 to produce and dispense The mission continues...
Ayurvedic medicines. Reaching out to a wide mass of
people who had no access to proper treatment. Dr. S. K. Burman's commitment and
ceaseless efforts resulted in the company growing from a fledgling medicine
manufacturer in a small Calcutta house, to a household name that at once evokes
trust and reliability.

E.

"Dedicated to the health and well being of every household"

This is our company. We accept personal responsibility, and accountability to

meet business needs.

We all are leaders in our area of responsibility, with a deep commitment to

deliver results. We are determined to be the best at doing what matters most.
People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products to

fulfill them better.

We work together on the principle of mutual trust & transparency in a

boundary-less organization. We are intellectually honest in advocating
proposals, including recognizing risks.

Continuous innovation in products & processes is the basis of our success.

We are committed to the achievement of business success with integrity. We

are honest with consumers, with business partners and with each other.
 F.

Milestones to success

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued
to learn and grow to a commanding status in the industry. The Company has gone
a long way in popularising and making easily available a whole range of products
based on the traditional science of Ayurveda. And it has set very high standards
in developing products and processes that meet stringent quality norms. As it
grows even further, Dabur will continue to mark up on major milestones along
the way, setting the road for others to follow.
1884 - Established by Dr. S K Burman at Kolkata
1896 - First production unit established at Garhia
1919 - First R&D unit established
Early 1900s - Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialisation.
It is the first Company to provide health care through scientifically tested and
automated production of formulations based on our traditional science.
1930 - Automation and upgradation of Ayurvedic products manufacturing
initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda
Dabur introduces Indian consumers to personal care through Ayurveda, with
the launch of Dabur Amla Hair Oil. So popular is the product that it becomes
the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products continues.
The ancient restorative Chyawanprash is launched in packaged form, and
becomes the first branded Chyawanprash in India.
1957 - Computerisation of operations initiated
1970 - Entered Oral Care & Digestives segment
 G.

Dabur has an illustrious Board of Directors who are committed to take the
company onto newer levels of human endeavour in the service of mankind. The
Board comprises of:

Vice-
Chairman Chairman
Dr. Anand Mr. Amit
Burman Burman

Whole Time Directors

Mr. P.D. Narang Mr. Sunil Mr. Pradip Burman

Duggal

Non Whole Time Promoters, Directors

Mr. Mohit Burman

 Sunil Duggal took over as the Chief Executive Officer
of Dabur India Limited in June 2002, holding reins of
the organisation he joined in 1995.

Mr Duggal started his career as a management trainee in

Wimco Limited in 1981 after getting his Engineering
Degree (Electrical & Electronics) from BITS, Pilani, and
Sunil Duggal Business Management from IIM, Calcutta. His stint at
Chief Executive Officer Wimco continued till 1994, with a break in between
Dabur India Limited when he joined Bennett
Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM,
Sales Operation.

In 1995 he came into the Dabur family, as General Manager (Sales & Marketing),
of the Family Products Division with products like Dabur Amla, Lal Dant Manjan
and Vatika in his portfolio. This Division spearheaded the spectacular growth
recorded by Dabur in this period. Vatika was also launched during this period and
is now the Company's second biggest brand.

With his dynamic spirit and leadership abilities, he soon became Vice-President
and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was
appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he
became the CEO of the Company - a professional with valuable experience to steer
the company ahead in its growth plans.
Spanning a career of over 20 years, Sunil Duggal has travelled widely across India
and handled diverse portfolios that have helped him understand the dynamics of
FMCG businesses and market trends. He is well versed in the intricacies of India's
regional diversities and consumer needs.

Mr Duggal lives in Delhi with his wife and one child . Whenever he gets a break
from his official responsibilities, Mr. Duggal likes to spend time at home with his
family and an occasional round of golf.
 H.

Good corporate governance and transparency in actions of the management is key

to a strong bond of trust with the Company’s stakeholders. Dabur understands the
importance of good governance and has constantly avoided an arbitrary decision-
making process. Our initiatives towards this end include:

 Professionalisation of the board

 Lean and active Board(reduced from 16 to 10 members)
 Less number of promoters on the Board
 More professionals and independent Directors for better management
 Governed through Board committees for Audit, Remuneration, Shareholder
Grievances, Compensation and Nominations
 Meets all Corporate Governance Code requirements of SEBI
 I.

When our Founder Dr. S. K. Burman first established Dabur, he had a vision that
saw beyond the profit motive. In his words, "What is that life worth which cannot
bring comfort to others." This ideal of a humane and equitable society led to
initiatives taken to give back some part of what Dabur has gained from the
community.

Our major initiatives in the Social sector include:

 Establishment of the Sustainable Development Society, or Sundesh, in 1993

- a non-profit organisation to promote research and welfare activities in rural
areas;
 Promoting health and hygiene amongst the underpriviledged through the
Chunni Lal Medical Trust; and

 Organising the Plant for Life programme for schoolchildren - to create

environmental awareness amongst young minds.

Our commitment to Environment

Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood and
appreciated the value of nature and its conservation. Our ancestors recognised that
if we grabbed from nature beyond what was healthy, it would lead to all round
degradation, and even the extinction of humanity. That is why nature was
sanctified and worshipped in the form of gods and goddesses.
Dabur upholds the tradition
Today, we at Dabur also value nature's bounty. Without the fruits of nature, the
vision of Dabur would never have been fulfilled. And that is the reason for our
unfailing commitment to ecological conservation and regeneration. We would like
to follow the principles of our ancient texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all
our products are derived. Due to overexploitation of these resources and
unsustainable practices, these plants and herbs are fast reaching the point of
extinction. In view of this critical situation, Dabur has initiated some significant
programmes for ecological regeneration and protection of endangered plant
species.

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the
Himalayas. Under the project, a high-tech greenhouse facility has been set up for
developing saplings of rare and endangered medicinal plants. Fully computer-
controlled and monitored, this greenhouse maintains the highly critical
environmental parameters required for their survival. We are also developing
quality saplings of more than 20 herbs, 8 of them endangered, through micro
propagation.

In addition, satellite nurseries spread across mountain villages and contract

cultivation of medicinal herbs helps in maintaining the ecological balance. These
measures have also helped provide local cultivators the scientific knowledge for
harvesting herbs and a steady source of income. So that they are not forced to
exploit the environment to earn a livelihood.
Corporate Office

Living a Green Heritage Kaushambi

These are significant steps that can contribute
Ghaziabad to a better world for coming
- 201010
generations. To whom we would like toUttar
bequeath a world
Pradesh, not bereft of nature. But
India
full of flowering and fruit bearing trees,Tel:
animals, birds and humans living in good
health and complete harmony. +91 (0120) 3982000 (30
Lines)
+91 (0120) 3001000 (30
Lines)

Kaushambi Corporate
Office

Registered Office

8/3, Asaf Ali Road,

New Delhi – 110 002
Tel: +91 (011) 23253488
K.
 DABUR WORLD WIDE

Dabur's mission of popularising a natural lifestyle transcends national boundaries.

Today there is global awareness of alternative medicine, nature-based and holistic
lifestyles and an interest in herbal products. Dabur has been in the forefront of
popularising this alternative way of life, marketing its products in more than 50
countries all over the world.

Our products World Wide

We have spread ourselves wide and deep to be in close touch with our overseas
consumers.

 Offices and representatives in Europe, America and Africa ;

 M. PRODUCT LINE

Foods

• Real
• Real Activ
• Hommade
• Lemoneez
• Capsico

Health Care

Baby Care

• Dabur Lal Tail

• Dabur Baby Olive Oil
• Dabur Janma Ghunti

Health Supplements

• Dabur Chyawanprash
• Dabur Glucose D

Digestives
 • Hajmola Yumstick
• Hajmola Mast Masala
• Anardana
• Hajmola
• Hajmola Candy
• Hajmola Candy Fun2
• Pudin Hara (Liquid and Pearls)
• Pudin Hara G
• Dabur Hingoli

Natural Cures

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

Personal Care
Hair Care Oil

• Amla Hair Oil

• Amla Lite Hair Oil
• Vatika Hair Oil
• Anmol Sarson Amla

Hair Care Shampoo

• Anmol Silky Black Shampoo

• Vatika Henna Conditioning Shampoo
• Vatika AntiDandruff Shampoo
• Anmol Natural Shine Shampoo

Oral Care

• Dabur Red Gel

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

Skin Care

• Gulabari
• Vatika Fairness Face Pack

Ayurvedic Specialities

• Ayurveda
• Ayurveda Vikas
N.

Dabur Amongst Top Three Most Dabur Real Bags Gold In Reader's Digest
Respected FMCG Companies Trusted Brand Awards
Dabur Figures In Top Great Place To
Work 2006 List
 Dabur has been ranked Hajmola has been ranked Hajmola, one of the
amongst India's Most 34th in India’s 100 Most strongest brands in
Innovative Companies by a Valuable Brands list Dabur's portfolio, has
Business Today-Monitor been listed among the
Group survey Top 18 Iconic Brands in
India that have stood the
test of time

Dabur India’s fruit juice brand Three Dabur brands -- Hajmola moves up 11
Réal awarded the Reader’s Hajmola, Dabur Amla and spots to take the 34th
Digest Gold Trusted Brand Vatika -- have debuted in position among India's
Award 2008 in the food & the Economic Times Top 100 Most Valuable
beverages category Brand Equity's Most Brands of 2008,
Trusted Brands 2008 list. released by 4Ps and
 Besides, Dabur Foods has ICMR
climbed up to take the
40th spot

Dabur India Ltd has been ranked 28th in the list of India's Top 50 Most valuable
(Company) Brands by Brand Finance

newu was voted the Most Dabur India CEO Mr. Dabur India Ltd was
Admired New Retail Launch Sunil Duggal was named ranked the Business
of the year at Images Retail Best Corporate Leader of Leader in the FMCG -
Awards 2008 at the B&E Personal Care Category
Leadership and at the NDTV Profit
Excellence Awards Business Leadership
Award 2008
 Dabur India Ltd CEO Mr. Dabur India Ltd has been listed among the Super
Sunil Duggal has been ranked 100 of India Inc, prepared by Business India
among India's Most 'value'able
CEOs by Business World

__________________________________________________________________________
_
5. SWOT ANALYSIS OF DABUR
STRENGTHS WEAKNESS
• Strong presence in well defined • Seasonal Demand( like
niches( like value added Hair Oil chyawanprash in winter and
and Ayurveda specialities) Vatika not in winter)
• Core knowledge of Ayurveda as • Low Penetration(Chyawanprash)
competitive advantage • High price(Vatika)
• Strong Brand Image • Limited differentiation (Vatika)
• Product Development Strength • Unbranded players account for
• Strong Distribution Network the 2/3rd of the total
• Extensive Supply Chain market(Vatika)

• IT Initiatives
• R & D – a key strength

OPPORTUNITIES THREATS
• Untapped Market(Chyawanprash) • Existing Competition( like
• Market Development Himani, baidyanath and Zandu

• for Dabur Chyawanprash and

• Export opportunities. Marico,Keo Karpin, HLL and

Bajaj for Vatika Hair Oil)
• Innovation
• New Entrants
• Increasing income level of the
middle class • Threat from substitutes (like
Bryllcream for Vatika hair oil)
• Creating additional consumption
pattern
The Marketing Mix

Product Place

Target
Market

Price Promotion

The firm attempts to generate a positive response in the target market by blending
these four marketing mix variables in an optimal manner.
 A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of
some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality List price Channel members Advertising

Appearance Discounts Channel Personal selling

motivation
Quality Allowances Public relations
Market coverage
Packaging Financing Message
Locations
Brand Leasing Media
options Logistics
Warranty Budget
Service levels
Service/Suppor
t

DABUR FOODS SELLING PROCESS

 Dabur food process of selling starts from stockiest.

  C&FA dose not have any process to play in the process of selling of dabur
foods products. They are just Clearing & Forwarding Agents they store the
manufacturing products and then supply it to stockiest.

 Stockiest pay the money to dabur foods through demand draft.

 Stockiest further sells the products to retailers.

 Retailer finally sells the products to consumers.

MARKETING HOW DABUR FOODS IS USING MIX
Product

Appearance: Dabur tries to make its products appear very attractive.

Quality: Quality of the product is really unmatchable as it is tested number of

times and its products are processed using very advanced machinery and
technology.

Packaging: Dabur products packaging is done in such a way that its juices does
not get expired before 6 months inspite of perishable products.

Brand: Dabur itself is a very reputed and well known brand in the market and its
Real juice is also known all over India.

Warranty: Dabur as such does not gives any warranty but if there is any problem
in its products before expiry then they replace the product.

Service/Support: Dabur foods provide full support to its stockiest, retailers and
consumers, what so ever the problem is
Price

List price: Dabur decide its price according to its competitors and the price
structure is different for retailers and stockiest.

Discounts: There are different discounts for retailers, stockiest and consumer from
time to time.

Allowances: Special allowances are gicen to stockiest sales man if he acives his
targets.

Place

Channel members: Channel members or business partners of dabur are its

stockiest, retailers.

Channel motivation: Channel motivation for dabur is pull and push strategy.

Market coverage: Dabur Foods has a distribution network that covers 175 towns
and 75 thousand retail outlets making its product available to the consumers across
the country at ease.

Locations: Dabur foods try to cover or tries to place its products in each and every
shop and every location.

Promotion

Advertising: Dabur products are advertised through television, newspapers,

magazine etc.
Personal selling: Dabur hardly do any personal selling except in tent shows and
road shows. Same for less & more for same

Media: Media of promotion is TV, Radio, newspapers, magazine.

Budget: Budget is Decided by finance team for different strategic business unit.

Critique of selling

In theory, the purpose of selling is to help a customer realize his or her goals in an
economic fashion. However, in reality this is not always the case. Customers can
be influenced to purchase a product or service that initially was not of interest to
them. Some salespeople are trained in the art of selling customers things they don't
need.

Take for example the purchasing of a car: a consumer may have a set of cars in
mind (called an evoked set) that she feels match her needs, wants and budget. She
may seek the advice of a salesperson given that a salesperson can help her realize
the right car given those criteria. This can be a socially useful function; salespeople
have specialized knowledge of products that can help consumers make an informed
decision. However, a salesperson may also talk a consumer into purchasing a more
expensive or perhaps larger car then she needs or can afford. In this context, the
salesperson may have usefully helped the customer re-evaluate her needs, thereby
establishing a new set of appropriate choices among which included the newer or
large car. This again would be a helpful and useful service provided by the
salesperson. However, it is sometimes the case that customers purchase a product
or service that was not initially intended and remains an inappropriate purchase
after the fact. On the other hand, the consumer in this scenario can be held partially
responsible for the inappropriate purchase; indeed, "A fool and his money are soon
parted." (P.T. Barnum, English proverbs)

This dysfunctional behavior is encouraged by:

Incentives of salespeople to increase their total number of sales, especially
where retailers keep track of sales or offer commission-based salaries
 Incentives from the manufactures of products or the companies of service
providers to salespeople to sell their products where other similar products
offered by competitors are offered
 The incentive to sell a customer a product that is in need of being cleared
out, despite the fact that a customer may be better to wait for the new
product
B.

Channel Of Distributions

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A Stockist B Stockist C

Retailers Retailers Retailers Retailers Retailers Retailers

 CONSUMERS

The above diagram it shows 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.
This was the basic Channel of Distribution used by Dabur Foods, now I will throw
light on each channel of distribution of Dabur Foods.

Supply Chain Management:

Supply chain management starts before physical distribution: it involves procuring

the right inputs (raw materials, components and capital equipment), converting
them into finished products and dispatching them to the final destinations. The
supply chain perspective can help identify superior suppliers and distributors and
help them improve productivity, which ultimately brings down the company’s
costs.
A broader view sees a company at the center of a value network that includes
its suppliers, its immediate customers and their end customers. The value network
includes valued relations with others such as university researchers, government
approval agencies and so on.

MANUFACTURING PLANT:
Dabur Foods has Number of products in its product line but its main area of
interest or the product on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is
manufactured and tested.

PROCUREMENT & TRANSPORT:

• Getting the raw material and packaging material requirement from the
production unit in charge

• Constant updates on the procurement of materials and transport details

• Production details and ingredient content information from the different

personnel and coordinating this activity
PACKAGING:
 • Approval and coordination of the supply of packaging material to the
production unit

CLEARING AND FORWARDING AGENTA (C&FA)

 From manufacturing plant the stock is transported or supplied to clearing and

forwarding agents.
 Clearing and Forwarding Agents is a third party and Dabur gives contract to
them, so company has nothing to do in building the relationship with them.
 Here C&FA keep or stock the goods with them.
 They charge dabur for stocking the good and even dabur don’t mind doing
so as it is a measure of cost cutting as well as there is no need for gowdowns
and maintenance.
 For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in
Mohan Nagar, here all goods which dabur foods hare kept here.
C.
STOCKIEST OR DISTRIBUTORS
 Stockiest store the products in their godowns, C&FA supplies the goods to
them as per their order.
 Stockiest has some sales men working under him, they are known as
stockiest sales man. Their work is to place the products in the market and
take order from retailers and then supply goods to them.
 Sales man either take ready stock with them or they first take orders and then
supply goods later on.
 There is a beat which is a schedule route of sales man, means sales man has
to daily cover the route as mention in the beat.
 Merchandising, making products visible, pasting posters, putting banners,
and seeing that goods are properly placed in the retail outlets is also the duty
of stockiest sales man.
 Companies’ sales officer keeps a check on the stockiest and monthly report
is also prepared which is further analyzed by ASM & ZSM.
 In Noida Dabur has 1 stockist, and in Ghaziabad 1

D.

RETAILERS
  Retailers are backbone of the company as they are the one who can take the
product on new heights or can bring it down to toes.

 Stockiest supplies goods to retailers and tries Persuading retailers to give the
brand special displays (using merchandising tools) to get affective brand
presence, and arranging it in more noticeable manner.

 Classification of outlets in different type of markets is different according to

their sales volume.

TYPES OF RETAILS OUTLETS

Class Average Monthly Business

A Above 10,000
B 5,000-10,000
C Upto 5,000

 Margin of retailers is always higher than stockiest.

 Retailers are the one who have direct contact with the customers.
 Dabur Foods has a distribution network that covers 175 towns and 75
thousand retail outlets making its product available to the consumers across
the country at ease.

E.
TYPES OF RETAIL MARKET

The retail market can be classified on the basis of magnitude of retail.

SCATTERED MARKET
Lesser no. of outlets, and
Extensive outlets

BLOCK MARKET
Large no. of retail outlets in chunk

SUPER MARKET
Through their superior information ,logistical systems and buying power deliver
good service and immense volumes of products at attractive prices.

CHAIN OUTLETS
Having more than one key outlet all across with a single control unit and central
purchasing strategy
 7.

THE FUTURE FOR DABUR

Tapping the world markets: Dabur India, under its new brand
architecture, has five power brands under its portfolio with distinct
offerings — Vatika, a herbal beauty brand with products like Vatika Shampoo,
Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with products
like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with
Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and
has products like Real Fruit juices, Lemoneez; and the recently launched Anmol
which is a cross category value-for-money brand. Dabur has decided to take two of
its five power brands — Dabur and Vatika — global through its Dubai-based arm
Dabur India .
And the Big B and Rani Mukherjee will help the company get a toehold in the
world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore
FMCG major has also decided to give a new impetus to its international food
supplement brand, Nature4u, by now launching it in the burgeoning Gulf
market. It is currently being sold only in UK and EU. “We have drawn an
aggressive plan to launch Dabur and Vatika globally, starting from the Middle East
, GCC and SAARC countries. We expect our market share to double within two
years in the 10 countries we will focus on initially,’’ said Mr Arvind Kumar, CEO,
Dabur International. The 10 top-of-mind markets for Dabur right now are UAE,
Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan , Egypt and
Nigeria.
To develop Dabur International as its major overseas hub to service all markets
except Russia , the company is setting up a new plant which is expected to be
ready in a year. Dabur International already has a plant in Jabel Ali to both package
products sourced from India and produce some local variants. Dabur India has been
selling its product in Dubai and GCC countries since 1992 through a franchise —
Redrock Limited. The company had acquired this franchise last year at investments
of about USD five million.
Growing market share: While there is no doubt that Dabur now has a presence in
several product categories ranging from hair care to oral care to home care to
health supplements to juices and even soaps, it is also true that in some of these
segments its market share is very low and trails the market leader by a huge
margin. For instance, Dabur only has a 6% market share in shampoos against
HLL’s 53%, and a 12% share in the oral care segment against Colgate’s 46%.

Company officials believe that low market share means that there are substantial
growth opportunities even if these categories do not grow. “Our market shares are
low in some segments. This gives us opportunity to penetrate these categories,’’
says Mr Narang.

Drivers of growth: For the future, Dabur has identified foods, home care
products, skin care and OTC health care products as its growth engines. The
company plans to ramp up its home care business and in the food category it is
looking at expanding its Hommade range of cooking pastes and purees. In the skin
care segment, the company launched the Dabur Anmol cold cream last year and its
Vatika honey and saffron soap is currently under test launch.

Expansion in south India: Dabur is looking at expanding its business in south

India, which currently accounts for around 15% of its total sales.
 Objectives of the Study:-

• To understand the demand pattern of Dabur Chyawanprash products in the

rural market.
• To know the amount of household income spent on the consumption of
FMCG products of Dabur.
• To understand the image of the products in the eyes of the consumers.
• To analysis market petition strategy of Dabur for rural market.
 Research Methodology

Data collection
Sample unit:
1) working people (including men & women) & housewife
2) college students
3) school students
4) senior citizens
5) Retailer

Sample size:
1. working people & housewife: 30%
2. college students: 25%
3. school students: 20%
4. senior citizens: 10%
5. Retailer :10%
Sampling techniques:
Judgmental sampling techniques used.

Sampling region:
Sampling region will be HAPUR of Uttar Pradesh.

Data collection method:

1. Primary data: It will be collected with the help of a self administered
questionnaire.
2. Secondary data: it will be collected with the help of books, research
papers, magazines, news papers, journals, internet, etc.

Research instruments:

Questionnaire design:
As the questionnaire is self administrated one, the survey will be simple and user
friendly. Words used in questionnaire will be readily understandable to all
respondent. Also technical jargons will be avoided to ensure that there is no
confusion for respondents.
Data Analysis: - Data analysis will be done with the help of MS Excel and SPSS
Software.

8 DATA ANALYSIS

DABUR CHYAWANPRASH

1. AWARNESS LEVEL
2. PREFERRED BRAND
3.SATISFACTION LEVEL

4. REASONS FOR SELECTING A PARTICULAR BRAND

5.HOW DID YOU COME TO KNOW ABOUT THIS BRAND.
6. UNAVAILABILITY OF PREFERRED BRAND
7. PREFERRED PACK SIZE

8. REASON TO SELECT PREFERRED PACK SIZE

9. FREQUENCY OF PURCHARE

60

50

40
PERCENTAGE
30

20

10

0
ONE MONTH TWO MONTHS SIX MONTHS
10.

11.
 RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

2.Out of these which are the most preferred?

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

4.What is the profile of your typical consumer?

5.What schemes are you offered by the companies?
 6.What schemes does a consumer prefer most?

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

preference?
8.Do a change in price affect their preferences?
 RECOMMENDATIONS

 Focus on growing core brands across categories.

 Reaching out to new geographies, within Hapur area.

 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 Marico’s 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.
 COMPETITOR ANALYSIS

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:
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 Himani 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%.

B.

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.
C.
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

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
• Promotion
 D.
PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash category

and enjoys a market share of 61 per cent. In 50s Dabur pioneered the
concept of branded Chyawanprash and since has invested heavily in
product development, clinical studies and consumer awareness. The
product is essentially a health supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning. The principal ingredient Amla (Indian
Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash
helps in stimulating immune system, relieving stress, improving stamina, fighting
aging through anti-oxidant property, improving lung function, fighting respiratory
infections & building resistance to disease. It is these properties that make Dabur
Chyawanprash a preferred choice for its users.

Ingredients of Dabur Chyawanprash

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

Packaging:

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

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

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.195.00
500gms Rs.110.00
250gms Rs.
62.00

PRICE/QUALITY MATRIX
 Price→

Quality High Middle Low

↓
Luxury Ideal For Premiere
Segment Penetration Offering
High DABUR
CHYAWANPRA
SH
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.
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 are concentrated

towards advertising and it has neglible sales promotional activities.
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 mouldable 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 two ads, one each with Amitabh and Vivek, in
national electronic media followed by a series of print media campaign directed
towards creating awareness to educate people about the holistic benefits of
Chyawanprash.The ads have been created by McCann Ericsson and the company
would be spending close to Rs 10 crore in promotional campaign this year. The ads
would also be translated in Bengali. These advertisements are supposed to target
the old and the younger generation respectively
Thecompany has launched a new ad with M.S. Dhoni who is leader of Indian
cricket team
 11.

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 consumer’s patriotic love for tea
and coffee is unfared. Chyawanprash are yet to establish their supplement use in
the average household here in lies the great opportunities. Within the market, it is
safe to conclude that dabur has hit off ratherwell with the masses. dabur has
clearly lost it head start advantage and thereby acquiring just 35% of the market
share while others enjoys rest of the market share. This could be well attributed to
dabor successful ATA (Availability, Taste and Affordability) marketing module,
the attributes most rated by the consumers. Lack of publicity has hampered the
growth progress of the brand so aggressive advertising is needed to promote
Chyawanprash and vatika hair oil brand .The brands such as that of
Chyawanprash by vednath, Chyawanprash with its ‘sonacahndi, ‘Minute-
made’ and also US food giantssDel Monte are ready to hit the Chyawanprash
market very soon.

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 .
 12.

BIBLIOGRAPHY

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
 13
CONSUMER QUESTIONAIRE-DABUR CHYAWANPRASH

Dear Respondent,
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 Chawanprash are you aware of?

• Zandu
• Himani
• Baidyanath
• Dabur

2.Which brand of Chawanprash do you use?

• Zandu
• Himani
• Baidyanath
• Dabur

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

• 1
• 2
 • 3
• 4
• 5

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?

• 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

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
 11) Please [√] the following attributes based on importance, which purchasing a

FMCG products.

Attributes Not so important Important Must have

Product Specific
Lowest price
Offers running
Price discount
Retail brand
Product quality
 RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to
study the consumer perception for the Chyawanprash 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 Chyawanprash do you stock?

• Zandu
• Himani
• Baidyanath
• Dabur

2.Out of these which are the most preferred?

• Zandu
 • Himani
• Baidyanath
• Dabur

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
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

9. In how many days you receive the product after placing the order?

a. One week

b. Two weeks

c. Monthly