DABUR Product Part-1

8/6/2019 DABUR Product Part-1

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A

DISSERTATION REPORTON

TO STUDY THE MARKET SHARE OF DABUR

FMCG (SKIN CARE) PRODUCTS

In Partial fulfillment for the requirement of the course

Curriculum of PGDM

COMPANY PROFILE


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INDUSTRY PROFILE

FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot

of thought, time and financial investment to purchase. The margin of profit on every individual

FMCG product is less. However the huge number of goods sold is what makes the difference.

Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer

Goods is a classification that refers to a wide range of frequently purchased consumer products

including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, and

other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as

buckets. Fast Moving is in opposition to consumer durables such as kitchen appliances that aregenerally replaced less than once a year. The category may include pharmaceuticals, consumer

electronics and packaged food products and drinks, although these are often categorized

separately. The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving

Consumer Goods (FMCG).Three of the largest and best known examples of Fast Moving

Consumer Goods companies are NESTL, UNILEVER AND PROCTER & GAMBLE. The

FMCG sector represents consumer goods required for daily or frequent use. The main segments of

this sector are personal care (oral care, hair care, soaps, cosmetics, and toiletries), household care

(fabric wash and household cleaners), branded and packaged food, beverages (health beverages,

soft drinks, staples, cereals, dairyproducts, chocolates, bakery products) and tobacco.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest

sector in the economy and is responsible for 5% of the total factory employment in India. The

industry also creates employment for 3 million people in downstream activities, much of which is

disbursed in small towns and rural India. This industry has witnessed strong growth in the past

decade. This has been due to liberalization, urbanization, increase in the disposable incomes and

altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to

attract the growing rich segment in the middle-class through product and packaging innovations.

Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in

reality, the sector meets the everyday needs of the masses. The lower-middle income group


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accounts for over 60% of the sector's sales. Rural markets account for 56% of the total domestic

FMCG demand. Many of the global FMCG majors have been present in the country for many

decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gainedin scale. As a result, the unorganized and regional players have witnessed erosion in market share .

HISTORY OF FMCG COMPNIES IN INDIA

In India, companies like ITC, HLL, Colgate,dabur, Cadbury and Nestle have been a dominant

force in the FMCG sector well supported by relatively less competition and high entry barriers

(import duty was high). These companies were, therefore, able to charge a premium for their

products. In this context, the margins were also on the higher side. With the gradual opening up of

the economy over the last decade, FMCG companies have been forced to fight for a market share.

In the process, margins have been compromised, more so in the last six years (FMCG sectorwitnessed decline in demand.)


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COMPANY PROFILE

The story of Dabur begin with a small but visionary Endeavour by Dr. S.K.

Burman, a physical tucked away in Bengal, his mission was to provide effective and

affordable cure for ordinary people in for flung villages.

Dr. Burman setup Dabur in 1884 to produce and dispense Ayurvedic Medicines.

Reaching out to a wide mask of people who had no access to proper treatment.

More than a century after Dr. S.K. Burman setup his company with the vision of

good health for all, Dabur has grown many fold. It is now a leading nature base

health and family care product company.


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FOUNDER OF DABUR INDIA LIMITED

DR. S. K. BURMAN

(1856-1907)


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HISTORY

Birth of Dabur - 18841896 - Setting up a manufacturing plant

1900 - Ayurvedic Medicines

1919 - Established to research laboratories

1920 - Expand further

1936 - Dabur India (S.K. Burman) Pvt. Ltd.

1972 - Shift in Delhi

1979 - Sahibabad Factory/Dabur research foundation

1986 - Public Ltd. Co.

1992 - Joint venture with Agrolimen of Spain.

1993 - Cancer Treatment

1994 - Public issues

1995 - Joint Ventures

1996 - Separate Division

1997 - Food division/project stars

1998 - Professionals to manage the company

2000 - Turnover of Rs. One Crore


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DABUR AT A GLANCE

Dabur India Ltd. is the fourth largest F.M.C.G. Company in India with interest in health care products, personal care products food products and skin care products. Building on a legacy of

quality and experience for over 100 years, today Dabur has powerful brands.

Dabur India Ltd. Has marked its presence with some significant achievement and today commands

a market leadership status. Dabur mission of popularizing a natural life style transcends national

boundaries. Today there is a global awareness of alternative medicine, nature-based and holistic

life style and interest in herbal products. Dabur has been in the forefront of popularizing this

alternative way to life, marketing its products in more than 50 countries all over the world.

It manufacture over 450 products covering a wide range in health and personal care, it has 10

manufacturing locations seven in India and one each in Nepal, Egypt and U.K.

It has five subsidiaries companies

Dabur food Dabur Nepal Dabur oncology Dabur pharma Dabur Egypt

Dabur has three business division

Family Product Division (FPD) Health Care Product Division Dabur Ayurvedic Speciality Division


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MILESTONES TO SUCCESS

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn andgrow 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.


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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 & Digestivessegment

Addressing rural markets where homemade oral care is more popular than multinational brands,Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is

made available at affordable costs to the masses.

1972 - Shifts base to Delhi from Calcutta

1978 Launches Hajmola tablet

Dabur continues to make innovative products based on traditional formulations that can provide

holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and

launched as the popularHajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most modern herbal medicines

plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 Care with fun


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The Ayurvedic digestive formulation is converted into a children's fun product with the launch

Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item

for wider usage.

1994 - Comes out with first public issue

1994 - Enters oncology segment

1994 Leadership in health care

Dabur establishes its leadership in health care as one of only two companies worldwide to

launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-

friendly process to extract the drug from its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkrieg

Dabur captures the imagination of young Indian consumers with the launch ofReal Fruit Juices

- a new concept in the Indian foods market. The first local brand of 100% pure natural fruit

juices made to international standards, Real becomes the fastest growing and largest selling

brand in the country.

1998 - Burman family hands over management of the company to professionals

2000 - The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across

a span of over a 100 years, Dabur has grown from a small beginning based on traditional health

care. To a commanding position amongst an august league of large corporate businesses.

2001 - Super specialty drugs

With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into

the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the


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UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs

specifically for European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore

2003 - Dabur demerges Pharmaceuticals business

Maintaining global standards

As a reflection of its constant efforts at achieving superior quality standards, Dabur became the

first Ayurvedic products company to get ISO 9002 certification.

Science for nature

Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur

India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to

produce saplings of rare medicinal plants that are under threat of extinction due to ecological

degradation.


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DABUR PERSONAL CARE PRODUCT RANGE

Amla Hair Oil -

Amla Lite Hair Oil -

Vatika Hair Oil -

Anmol Sarson Amla -

- Anmol Silky Black Shampoo

- Vatika Henna

Conditioning Shampoo

- Vatika Anti-Dandruff Shampoo- Anmol Natural Shine Shampoo

Dabur Gulabari-

Dabur uveda-

Dabur Moisturizer-

- Dabur Red Gel- Dabur Red Toothpaste

- Babool Toothpaste

- Dabur Lal Dant Manjan

- Dabur Binaca Toothbrush


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DABUR FOODS PRODUCT RANGE

Tastes like eating a fruit 100% Natural Fruit Juice Pure natural Honey

Hommade - a range of

culinary ingredients

giving you 'The taste

of Indian Kitchen'.

Lemoneez is a Natural Lemon Juice Capsico - a fiery red-pepper sauce


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DABUR HEALTH CARE PRODUCTS

Dabur Chyawanprash Glucose D Dabur Lal tail Dabur Baby olive oil Dabur Janma Ghunti Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola candy Hajmola Candy Fun2 Pudin hara (Liquid and pearls)

Pudin hara G Dabur Hingoli Shilajit GoldNature Care Sat Isabgol Shilajit Ring Ring Itch Care Back-aid Shankha Pushpi Dabur Balm Sarbyna Strong


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THE BRANDS

y Dabur Amla Hair oil.y Dabur Pudin Hara (Pearl + Herbal)y Dabur Chyawanprashy Dabur Honeyy Dabur Glucon-Dy Dabur Red Tooth Pastey Dabur Vatika anti dandruff Shampooy Dabur Gulabri


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ABOUTS THE PRODUTS

Dabur Vatika Fairness Face Pack:-

Available in: -10 gm

-60 gm

Dabur Pudin Hara:-

Available in :- (Liquid)

-10 ml

-30 ml

(Pearls)

- In Strip

Dabur Vatika Hair Oil :- (Henna conditioning + Anti-dandruff)

Available in:-

Bottles -75 ml

-150 ml

-300 ml

Flip Can -150 ml

-300 ml


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Dabur Lal Dant Manjan:-

. Available in:-

-10 gm-60 gm

-100gm

-150 gm

-300 gm

Dabur Glucose-D:-

Available in:

-100gms

-200gms

-500gms

-1 kg

Dabur Red Tooth Paste:-

Available in: -

-50 gm

-100 gm

-200 gm


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Henna Conditioning Shampoo :-

Dabur Vatika Shampoo:-

Anti-Dandruff Shampoo :-Available in: -8 ml

-50 ml

-100 ml

-200 ml

-300 ml

DABUR GULABRI

DABUR UVEDA

DABUR MOUSTIRESER


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OBJECTIVE OF THE RESEARCH

To get an idea about the demand of Dabur skin care products in the market. Analysis of market share of Dabur skin care products by the comparison of other brands.

PURPOSE

To calculate the percentage of product display of Dabur brand along with other brands atdifferent retail outlets in Bangalore.

To give suitable suggestions and recommendations by which Dabur India Ltd. Canmaintain and increases its position in the market.


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PROBLEM OF FMCG COMPANIES

The fast-moving consumer goods (FMCG) companies are faced with a peculiar challenge of

maintaining profitable growths in the backdrop of a low inflation rate. As against the high

inflation of the early 90s the peak growth season for all FMCG companies the ensuing

period of a lower inflation rate dares companies to now play the volume game. As against a

growth in profitability, which came with price increase in line with the rising inflation, the FMCGindustry will now have to do without this critical factor which has been contributing to almost half

of the industrys growth. Volumes will play a critical role now. The number of units sold will be

an important metric, as there is very little avenue to drive price growth, said MS Banga,

chairman, Hindustan Lever Ltd (HLL), in his keynote address at the 2nd National FMCG

Conclave organized by the Confederation of Indian Industry (CII). Since volume will be the key

determinant of growth, the industry will be forced to push volume growth. Hence, for those

companies which hitherto relied on price increase as an easy way to enhance profitability, there

could be a pressure on margins. To tackle the problem there needs to be a relentless focus on cost-

cutting. Many companies, which have understood that volumes will be critical, will benefit,

added Mr. Banga. According to Mahesh Vyas, executive director, the Centre for Monitoring

Indian Economy (CMIE), the year holds a lot of promise, if growth is good and inflation is lower.

Volume growth and no price reduction is good for FMCG, said Mr. Vyas. He, however, said

fresh investments were critical for sustained growth in the economy. Another serious challenge

which the industry is faced with, said Mr. Banga, is consumer promotions where freebies are

threatening to lead to the commoditization of the industry. I believe that the industry must take aserious note of it. It is threatening the very premise on which the FMCG industry stands today (i.e.

branding), Mr. Banga added. As to how HLL, which is a leading FMCG company, would boost

its volumes and maintain its margins, Mr. Banga said the only way out was branding. He denied

that HLL was cutting down upon its advertising spends, which he said, was only on a quarter-on-


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quarter basis. The total advertising expenditure for HLL declined to Rs 182.74 crore during the

third quarter ended September 30, 2003, from Rs 217.80 crore.

One of the reasons is the fact that the Conditional Cash Transfer scheme (CCT) is gathering

support as a replacement for myriad welfare schemes. Along with the rural employment guarantee

scheme, loan waivers and increase in prices at which agricultural products are bought, the CCT

could solve the FMCGs problem of unpredictability of agricultural income and the associated fall

in market demand. The mainstay of the rural thrust of FMCG companies is based on the hope that

there are disposable incomes lying untapped in the hinterland: if the rural population spends

some of this, it will certainly boost demand in the current recession. With urban consumption in

decline or stagnating because of the economic slowdown, FMCG companies have been hit hard.The idea is to give a choice to the rural customer to shift to branded products, from traditional,

unbranded merchandise from the nonorganised sector. The growth is in rural, says Indias top

marketing head, Rama Bijapurkar. Rural India constitutes over 60 percent of the countrys total

consumer base. Its estimated that rural markets hold 55 percent of total LIC policies, 50 percent

of the market for televisions, fans, bicycles and wristwatches and a massive 70 percent of the

market for toilet soap consumption. The Rs 65,000 crore debt waivers announced last year helped

3.6 million farmers and made them eligible to fund the next crop. The Centre continued to provide

short-term crop loans at 7 percent interest up to Rs 3 lakh. An upturn in agriculture was seen in the

UPAs interim budget of 2009-10, where the annual growth rate of agriculture was posted at 3.7

percent. Added to this was the election-inspired increase in minimum support prices (MSP) in

2008-09. Announced in the season ahead of the general election, the MSP for paddy (Rs 550 per

quintal in 2003-04) rose to Rs 900; for wheat, the MSP, which was Rs 630 per quintal, rose to Rs

1,080. It also led to massive procurement of food grains this year.

Factors like this, according to analysts, have created disposable incomes which the ruralconsumers should be, ideally, keen on spending on consumer goods. THE ECONOMIC SURVEY

2007-08 says rural India spends, on average, 55 percent on food and 45 percent on non-food items

like clothing, consumer durables, education and health. And its spend on urban costs of living

such as electricity, commuting, fuel and rent is negligible. That level of spending on regular


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consumables is good news for FMCG manufacturers. Add to that the fact that, unlike their urban

counterparts, rural citizens incomes are relatively better preserved from market fluctuations and

real estate shocks. For corporate, the rural hinterland had earlier meant high investment because ofpoor infrastructure, absence of storage services, no electricity, water or finance facilities. In times

of recession, the problems appear surmountable. Its expected that catching the villages fancy

should be far easier than that of the info-fatigued urban buyer. The rural market already accounts

for 50 percent of FMCG products like pressure cookers, tea, branded salt and tooth powder.

Companies expect to increase market share and to add products to the rural portfolio. According to

ASSOCHAM, which announced early this year that the FMCG sector is pegged to grow at 40

percent in the rural market, rising rural incomes, healthy agricultural growth, boost in demand,

rising consumerism and better penetration of FMCG products, are the reasons for this projection.

Agrees Deepak Jolly, a director with Coca-Cola India: The rural thrust in India today is huge. In

many ways, I would say it is the main driver for the markets. Among the few things that the

FMCG companies are seeking from this budget is that the taxes and duties that have been reduced

by the government to promote the sector should not be revoked. If only they could have the same

impact on the monsoon: any weakening or failure there will considerably affect the purchasing

power of villagers and volumes of FMCG products. Its in this context that the gathering support

for the conditional cash transfers (CCT) scheme should be seen it proposes that the governmentdeposit an amount in the account of beneficiaries identified according to poverty criteria. The

amount is deposited in the name of the woman member of the household and accessed only if

children go to school or attend the health centre. Farmers are spending more than ever to cultivate;

villagers are spending more than ever to buy food. The government hopes to bring the National

Food Security Bill that provides monthly 25kg to BPL families at Rs 3 per kg. It would be

interesting to watch if the disposable income left after such subsidies will be used for

consumption.


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RESEARCH METHODOLOGY

Data sources : Primary data. Research approaches : Survey. Research instrument : Questionnaire Sampling plan : Sample size Contact method : Direct interview

Taking the above attributes in to consideration the following decision is to be taken for research

plan.

Data sources :-

Primary data and information was collected from various retailers and customers as well in

Bangalore.


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METHOD OF DATA COLLECTION

PRIMARY DATA:-

Primary data refers to those figures which are self collected by the investigation. These data

are original in the sense that these are collected for the fist time.

In the word of Secrist, Data which are gathered originally for a certain purpose are known as

primary data.

According to Wessel: Data origanilly collected in the purpose of the investigation are known

as primary data. These figures are mostly in the raw form.

I have collected the primary data through the questionnaire.

Merits of Primary Data:-

High degree of accuracy. A primary source show data in greater details. For some investigators, secondary data are not suitable at all. It does not required extra caution regarding suitability, adequacy and reliability of data.

Demerits of primary data:-

Collection of primary data requires a lot of time. Collection of primary data requires requires a lot of funds. Collection of primary data requires a lot of labour and time Collection of primary data requires high degree of skill.


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AREA COVERED

BANGALORE

WEBSITS

y www.Google.comy www.dabur.com

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DABUR Product Part-1