DISSERTATION REPORT

ON

Marketing strategy of Dabur Vatika Hair

Oil & Dabur Chyawanprash

SUBMITTED TO: SUBMITTED BY:

MS ANAMIKA AGGARWAL AMARKANT SHARMA

MBA-IV SEM

Marketing Mix for Dabur Vatika Hair Oil and Dabur

Chyawanprash

2

Acknowledgement

The present work is an effort to throw some light on “Marketing

Strategy of Dabur vatika hair oil & Chyawanprash”. The work

would not have been possible to come to the present shape without

the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement

and guidance received by my faculty guide Ms. Anamika aggarwal

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Dissertation

Report.

AMARKANT SHARMA

3

TABLE OF CONTENT

1. Executive Summary 3

2. FMCG Sector Overview 4

3. Company Overview

4. Company History 8

5. Product Line of Dabur 9

6. SWOT Analysis 11

7. Overview of Hair Oil Segment 13

8. Overview of Vatika 14

9. STP Analysis of Vatika Hair Oil 15

10. Marketing Mix of Vatka hair Oil 17

11. Advertising 24

12. Competitor Analysis of Vatika Hair Oil 25

13. Customer Questionnaire of Vatika Hair Oil 27

14. Customer Survey Results of Vatika Hair Oil 30

15. Retailer Questionnaire of Vatika Hair Oil 33

16. Retailer Survey Results of Vatika Hair Oil 35

17. STP Analysis of Dabur Chyawanprash 38

18. Marketing Mix of Dabur Chyawanprash 40

19. Competitor Analysis of Dabur Chyawanprash 48

20. Customer Questionnaire of Dabur Chyawanprash 50

4

21. Customer Survey Results of Dabur Chywanprash 53

22. Retailer Questionnaire of Dabur Chywanprash 57

23. Retailer Survey Results of Dabur Chyawanprash 59

24. The BCG Growth-Share Matrix 66

25. The New Dabur Entity 68

26. The Future of Daburcon 70

27. Recommendations 73

28. References 74

5

EXECUTIVE SUMMARY

This report aims at analyzing and reporting on the marketing

strategies of Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil

and Dabur Chyawanprash

The Vatika brand was launched in 1995 with Vatika Hair Oil as its first

product. In the very first year of its launch it crossed Rs. 100 million in

turnover. Over the years, Vatika has come to be amongst the

company’s highest selling brands. Vatika is a comparatively young

brand but is already acknowledged for the qualitatively influential and

pioneering role that it has played in the evolution of the categories it

has had a presence in. Dabur Chyawanprash is the leader in the

Chyawanprash category and enjoys a market share of 61 per cent. In

50s Dabur pioneered the concept of branded Chyawanprash and since

has invested heavily in product development, clinical studies and

consumer awareness. The product is essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing

strategy of Dabur India Ltd, but is an attempt to analyze the marketing

mix of Dabur Vatika Hair Oil and Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth

Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT 6

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.

7

OBJECTIVE OF THE STUDYs

Following are the major objective of study:-

1. To study the Marketing Strategy of Dabur Foods.

2. Comparative analysis of Dabur chyawanprash & competitors.

3. How distribution channel work in Dabur.

4. To study the Consumer Buying behavior.

5. To study the problems faced by Dabur.

8

IMPORTANCE OF THE STUDY

Being student of PGDM it is very essential for me to have a practical

knowledge in an organisation. Only to study PGDM course and

knowledge of books is not the solution of the problems, which arise in

practical field. There is a certain formula for any particular problem,

but the aim of this study is to develop the ability of decision making. A

right decision at right time and right place itself helps an organisation

to run smoothly.

This study gives an idea of all marketing activities. So the way a

problem is solved right decision making and knowledge of different

types of making activities give much importance to the study. it was

not possible to understand it so deeply, but an overall idea could be

developed.

9

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.

10

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 (2001-02), 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 11

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.

12

Rapid urbanisation, increased literacy and rising per capita income,

have all caused rapid growth and change in demand patterns, leading

to an explosion of new opportunities. Around 45 per cent of the

population in India is below 20 years of age and the young population

is set to rise further. Aspiration levels in this age group have been

fuelled by greater media exposure, unleashing a latent demand with

more money and a new mindset.

13

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.

1884 Birth of Dabur

14

 

1896 Setting up a manufacturing plant

Early 1900s Ayurvedic medicines

1919 Establishment of research laboratories

1920 Expands further

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

1972 Shift to Delhi

1979 Sahibabad factory / Dabur Research Foundation

1986 Public Limited Company

1992 Joint venture with Agrolimen of Spain

1993 Cancer treatment

1994 Public issues

1995 Joint Ventures

1996 3 separate divisions

1997 Foods Division / Project STARS

1998 Professionals to manage the Company

2000 Turnover of Rs.1,000 crores

COMPANY HISTORY

15

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

16

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 Oil17

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 Pack18

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

SWOT ANALYSIS OF DABUR

19

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

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)

OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the

middle class

Creating additional consumption

pattern

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)

20

OVERVIEW OF THE HAIR OIL SEGMENT

In the last quarter of the previous century Indian women have

imbibed global mores, ethics, fashions and styles in a remarkable

way. Yet the popular iconography of Indian beauty still associates

them with beautiful fair skin and dark, long lustrous hair – a

commonly accepted definition of beauty in Indian society.

Across the country, mothers spend endless hours teaching their

daughters what their mothers had taught them about maintenance

of their natural beauty – taken primarily as caring for the skin and

hair. In the hair care regime, of the numerous prescriptions none is

more universally accepted than the oiling of hair for nourishment

and use of home-made concoctions of henna and shikakai paste for

conditioning them.

It would come as a surprise to only a few that hair oils have a

penetration of almost 98% (Source: IRS 2003). Of the branded

market, hair oils form a major chunk accounting for Rs. 13 billion

with coconut hair oils as the prime segment at Rs. 9.1 billion.

(Source: ACNielsen ORG-MARG 2003). 21

OVERVIEW OF VATIKA:

The Vatika brand was launched in 1995 with Vatika Hair Oil as its

first product. In the very first year of its launch it crossed Rs. 100

million in turnover. Over the years, Vatika has come to be amongst

the company’s highest selling brands.

It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo

and later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand

sales crossed Rs. 1,000 million. From the company’s perspective,

Vatika is expected to continue to drive its growth in the years to

come. With its innovative offerings, the brand aims to become a

frontrunner in the market for hair care and skin care products.

Vatika is a comparatively young brand but is already acknowledged

for the qualitatively influential and pioneering role that it has played

in the evolution of the categories it has had a presence in. Currently,

the total annual sales of Vatika products are over Rs. 1,000 million.

Of this, Vatika Hair Oil enjoys a 6.4% market share in the coconut

hair oil category (Source: ACNielsen ORG-MARG, 2003).

Vatika has not just been successful in garnering a premium image

but, today, stands as the preferred and trusted brand of 11.1 million

users (Source: IRS Household Data).

STP ANALYSIS OF VATIKA HAIR OIL

22

SEGMENTATION

Vatika Hair Oil was launched at an almost 100% premium to the

market leader. This meant that the segment of the market that

dabur wanted to cater to was the premium segment which valued

nourishment of the hair above the price and it tried to attend to

that segment which was not price sensitive.

TARGETING

This was in line with its proposition and overall brand strategy of a

premium up-market product targeted for individual needs as

opposed to the collectivist culture of the category. It targeted the

high income urban category of hair oil users. Since the product was

expensive it could mainly cater to the urban market as opposed to

the rural market where consumers are highly price sensitive. Being

positioned as having amla, henna and lemon extracts, the product

was targeted towards the young, contemporary, educated, multi-

faceted, achievement-driven and confident women who were

positioned as the Vatika Woman.

POSITIONING

‘Total hair Care’ brand:

The product innovation was fed by the vital consumer insight that

many women in contemporary India are worried about hair

problems caused by urban pollution, frequent change of diet due

to geographical mobility and other factors. Beset by modern-day

23

hair problems, they are far more inclined to rely on home-grown

remedies. By offering hair oil that combined the benefits of

natural products in a single pack, Vatika created a niche for itself

as the ‘total hair care’ brand.

“Natural” offering:

Vatika is a brand that espouses traditional wisdom about health in

a modern format. It believes that nature has perennial answers to

day-to-day health issues, particularly when it comes to hair care

and skin care. In a world where modern living causes untold stress

the Vatika brand holds out the promise of providing natural

ingredients that rejuvenate and safeguard the human body in an

extraordinary way. This concept is put to work through

contemporary, modern products, offered by Vatika.

The Vatika woman:

The Vatika woman is young, contemporary, educated, multi-

faceted, achievement-driven and confident. It is in the Vatika

brand that she sees a true reflection of her own personal

ideals.Through creation of the concept of Vatika woman,it has

tried to carve out a new positioning in the minds of the new age

woman.

MARKETING MIX OF VATIKA HAIR OIL

24

Vatika Hair Oil has made a huge impact with its innovative product

offering, pricing strategy, easy availability and promotion campaigns.

In the marketing mix of Dabur, we shall be discussing the 4 Ps of

marketing mix with respect to Vatika Hair Oil. The mix shall be

analyzed as followed:

Product

Price

Place

Promotion

Product Price Promotion Place

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit

Terms

• Advertising

& Promotion

• Public

Relations

• Sponsorship

s

• Internet

Marketing

• Channels

• Location

• Inventor

y

PRODUCT:

25

Brand Name: Vatika in English means

‘garden’. The brand attempts to live up to the

promises – beauty and nature – that are

associated with its very name. Starting with

these associations Vatika has assiduously built a

brand that delivers on all these values through

its various product offerings, the mother brand

being Vatika Hair Oil..

Innovative product offering:. Vatika Hair Oil is coconut hair oil

with special ingredients adding value to the product. While

coconut oil has been regularly used by Indian women as a basic

hair nutrient, a combination of herbs and natural products such as

henna, amla and lemon have been used for special hair needs.

Coconut hair oil provides nourishment to the hair, while henna

along with other herbs coat the hair and protect it from oxidation,

thereby maintaining its natural colour. Amla strengthens hair

roots and helps maintain their natural health and thickness.

Lemon with its astringent action controls sebum flow and helps in

prevention of dandruff.

Apart from henna, amla and lemon, it also contains other natural

ingredients like brahmi, neem, bahera, kapurkachari, harar,

dugdha and sugandhit dravyas.

26

Packaging: The qualities of Vatika products, ascribed to the

brand by hundreds of thousands of satisfied consumers, have

been further underlined by its attractive packaging. In a

category dominated by blue packs as analogous of pure

coconut oils, Vatika broke the norm with its white and green

bottle with a mushroom cap.The green-and-white colours, used in

its packaging, reflect the brands’ natural ancestry and give it a

premium look. These also help Vatika stand out in the cluttered

environment of Indian retail.

Available in:

Bottles 75 ml, 150 ml, 300 ml

Flip cans 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have

been blended together through scientific processes at Dabur’s in-

house research laboratories. Dabur Research Foundation has

more than 100 scientists working together to make superior

quality products that match international standards.

PRICE:

27

In the traditional coconut hair oil category, which presumably had

price sensitive consumers, Vatika Hair Oil with its value added

proposition – henna, amla and lemon in a pure coconut oil – broke

this myth when it launched at almost a 100% premium to

the market leader; even with such a pricing strategy it was able

to garner a significant share from the leader in the very first year

of its launch.

The table above shows that Dabur Vatika is one of the highest

priced of hair oils since it targets the higher income class and also

that the prices have remain unchanged since 1999.

PRICE/QUALITY MATRIX

28

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

VATIKA

Ideal For

Penetration

Premiere

Offering

MiddleOverpriced Average Real

Bargain

Low

Make The

Sale and

Run

Unhappy

Customers

Cheap

Goods

PLACE

29

Vatika products including Vatika Hair Oil are sold in 38 countries

through more than 15 lakh retail outlets and 5,000 distributors who

service the entire country through a wide marketing network.

Dabur’s distribution network extends beyond India in the following

countries as well:

Distribution Network

Central, North & South America

Australia

Asia

Middle East

30

North & South Africa

East & West Europe

PROMOTION:

Vatika – the key focus brand of the company – has always been

well supported. The company realized early that, from the

perspective of brand building, it was vital to invest in this brand.

.

Vatika Hair Oil’s first promotion: It focussed on the key

benefit – beautiful hair without hair problems – that came about

as a result of the extra nourishment through the value addition of

henna, amla and lemon-derived additives.

Creating conceptual awareness: In the initial phase of the

communication, the marketing objective was to create conceptual

31

awareness about the new product – the goodness of coconut oil

enriched with natural herbs. Vatika was firmly established as the

leader in the new category of value-added hair oils and its

promotion campaign was so successful that the product segment

itself came to be identified with Vatika.

In 1997, the company created a new promotion campaign which

reinforced the obvious fact that most coconut oil brands were not

equipped to combat the effects of pollution, hard water and

chemicals – the major causes of hair ailments and hair

deterioration.

ADVERTISING

“Advertising is some form of paid-for method of communicating

with the target audience to inform, educate, reinforce or

persuade, leading to mutually satisfactory exchange”

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.

Vatika Hair Oil uses a number of advertising media like television,

print, internet, outdoor media which includes hoardings.

32

Events: In a series of other promotional activities, Vatika has

been associated with shows and sponsored events such as the

Vatika Super Model India 2001 and Vatika Zee Sangeet

Awards. It has also had a strong association, since its inception,

with Mover’s and Shakers’ – the popular TV show.

Celebrity Endorsements:

The idea of using an extraordinary hair

oil that offered extra nourishment was

communicated through campaigns

featuring icons such as Mandira Bedi,

Shefali Chhaya and Sudha

Chandran– all modern, young

women perceived to have that extra edge in their personality.A

number of commercials over the years have featured

personalities like Aditi Govitrikar, Preeti Jhangiani and Shweta

Jaishankar.To infuse the values of youthfulness and natural

beauty, Rani Mukherjee is the current brand ambassador.

33

COMPETITOR ANALYSIS

The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin,

Emami, Bajaj, Marico, HLL which together with Dabur have about 64%

of India's domestic market.

Dabur is one of India's largest player in the hair oil segment and the

fourth largest producer of FMCG. It was established in 1884, and had

grown to a business level in 2003 of about 650 million dollars per year.

Dabur Hair Oils have a market share of 19%.

We have tried to analyse the competition for Dabur in the Hair Care

segment as follows:

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil

category. The pleasantly perfumed hair oil has its main market in the

34

Hindi belt and also has significant presence in eastern and western

India. Its share is 6% of the total hair oil market.

Emami has existence in hair oil market through Himani Navratan oil

and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador

for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall

it has a share of 4% in hair oil market.

Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond

Drops — currently have a value share of 19 per cent and 12 per cent in

their respective oil categories as per ORG-Marg. Besides, the company

has also decided to enhance its retail presence by nearly 20 per cent

from the existing 5 lakh retail outlets in an attempt to reach the rural

parts. Overall it has a market share of 4% in hair oil market.

Marico’s Parachute is premium edible grade oil, a market leader in its

category. Synonymous with pure coconut oil in the market, Parachute

is positioned on the platform of purity. In fact over time it has become

the gold standard for purity. Parachute's primary target has been

women of all ages. The brand has a huge loyalty, not only in the urban

sections of India but also in the rural sector. It has a market share of

28%.

HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil.

Overall it has a 3% share in hair oil market.

35

CHANNEL OF DISTRIBUTION OF DABUR

OR

SUPPLIER ORGANIZATION RELATIONSHIP

Channel O f D istributions

Manufacturing plant

Retailer Retailer Retailer Retailers Retailers Retailers

Consumers

Clearing and forwarding agent (different regions)

Stockiest A A

Stockiest B Stockiest C

36

CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help

us to study the consumer perception for hair oil.

Any information provided by you will strictly be used for Academic

Purpose.

1. Which brands of hair oil are you aware of?

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

2. Which brand of Hair Oil do you use?

Parachute

Keo Karpin

Nihar

Hair And Care

Dabur Vatika

37

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?

Non sticky

Brand Loyalty

Fragrance

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 substitute38

Buy what is offered by the retailer

7. Which pack size do you prefer?

75 ml

150 ml

300 ml

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

Availability

Price

Family size

Storage

9. How often do you buy?

Once in 15 days

Once a month

Once in two months

10. Are you satisfied with your brand?

Yes

No

Personal Information :-

39

Age:

Location:

Income (per month):

(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000

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

CUSTOMER SURVEY RESULTS

DABUR VATIKA

AWARNESS LEVEL40

PREFERRED BRAND

SATISFACTION LEVEL

41

REASON TO BUY THE PREFFERED BRAND

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

UNAVAILABILITY OF PREFERRED BRAND

42

PREFERRED PACK SIZE

REASON TO SELECT PREFERRED PACK SIZE

FREQUENCY OF PURCHASE

43

RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help

us to study the consumer perception for the Hair Oil category that we

have chosen to study.

Any information provided by you will purely and strictly be used for

Academic Purpose only.

1. Which brands of Hair Oil do you stock?

Marico

HLL

Keo Karpin

Dabur Vatika

2. Out of these which are the most preferred?

Marico

HLL

Keo Karpin

Dabur Vatika

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

preferences?

Brand loyalty44

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?45

Yes

No

RETAIL SURVEY RESULTS

DABUR VATIKA 46

1. Which brands of Hair Oil do you stock?

2.Out of these which are the most preferred?

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

4. What is the profile of your typical consumer?

47

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?

48

8.Does a change in price affect their preferences

STP ANALYSIS OF DABUR CHYAWANPRASH

49

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 50

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.

51

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.

52

MARKETING MIX OF DABUR CHYAWANPRASH

Dabur Chyawanprash is the market leader in the chyawanprash

segment and has achieved this with its innovative product offering,

pricing strategy, easy availability and promotion campaigns. In the

marketing mix of Dabur, we shall be discussing the 4 Ps of marketing

mix with respect to Dabur Chyawanprash. The mix shall be analyzed as

followed:

Product

Price

Place

Promotion

Product Price Promotion Place

53

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit

Terms

• Advertising

& Promotion

• Public

Relations

• Sponsorship

s

• Internet

Marketing

• Channels

• Location

• Inventor

y

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

54

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:

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.

55

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

PRICE56

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

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

Ideal For

Penetration

DABUR

CHYAWANPRA

SH

Premiere

Offering

MiddleOverpriced Average Real

Bargain

Low

Make The

Sale and

Run

Unhappy

Customers

Cheap

Goods

PLACE

57

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

58

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

59

be translated in Bengali. These advertisements are supposed to target

the old and the younger generation respectively.

Advertisement showing Vivek Oberoi

A little boy suggests his brother to have

Dabur Chyawanprash everyday.

To which the brother

replies, “Mujhe iski kya

zaroorat?

The boy asserts, “Zaroorat hai!” and starts

running.

The big brother follows

him but is unable to catch

him using every way.

60

Running with super energy the boy dives

into the river. Not to be left behind...

...the big brother also

dives in the river but

ultimately stops when he

gets tired

With no option left he agrees

with his younger brother, “maan

gaye guru, tere Dabur Chyawanprash ko”

The ad ends on the big

brother promising to

have a spoon of the

chyawanprash everyday.

But our younger one

insists on two spoons.

61

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%.

62

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).

63

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

products, doing 110 million dollars of business annually, though only a

portion is involved with Ayurvedic products, through its Himani line;

the company is mainly involved with toiletries and cosmetics, but also

provides Chyawanprash and other health products.Its market share is

12%.

CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH

Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help

us to study the consumer perception for chawanprash.

Any information provided by you will strictly be used for Academic

Purpose.

1.Which brands of Chawanprash are you aware of?

Zandu

Himani64

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?65

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 months66

Once in six months

10.Are you satisfied with your brand?

Yes

No

Personal Information :-

Age:

Location:

Income (per month):

(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000

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

67

CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL

68

PREFERRED BRAND

SATISFACTION LEVEL

REASONS FOR SELECTING A PARTICULAR BRAND

69

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

UNAVAILABILITY OF PREFERRED BRAND

PREFERRED PACK SIZE

70

REASON TO SELECT PREFERRED PACK SIZE

FREQUENCY OF PURCHARE

71

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.

72

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 discounts73

Buy one get one free

Others

6.What schemes does a consumer prefer most?

Price discounts

Buy one get one free

Others

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

consumers’ preference?

Yes

No

8.Does a change in price affect their preferences?

Yes

No

Personal Information :-

Location of store:

74

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

75

2.Out of these which are the most preferred?

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

76

4.What is the profile of your typical consumer?

5.What schemes are you offered by the companies?

77

6.What schemes does a consumer prefer most?

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

preference?

78

8.Does a change in price affect their preferences?

79

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 80

core customizations. The integrated system allows each Area Manager

to plan for the month's sales forecasts, stockists performance, and

sales officers' performance.The integration allows better control on

pipelines in primaries and secondaries, brings down inventories, and

offers better control on production and sales against a confirmed

forecast. The idea is to increasingly shift focus from primaries to

secondaries. Schemes based on secondary volumes will help control

secondary pipelines and sales. Primary sales will therefore come from

a resultant 'pull' from secondary replenishments. Further, sales order

servicing can be improved by taking orders through the Internet, and

by setting stocking norms and replenishing stocks to improve ROI of

stock holders.

BOSTON CONSULTANCY GROUP’S GROWTH SHARE MATRIX

81

↓ DABUR

In the past, the sheer diversity of Dabur's product portfolio has

made an evaluation of the company's prospects quite difficult.

Dabur's FMCG business contributes over 70 per cent of Dabur India's

current revenues. Within the FMCG business, Dabur India focusses on

three key product groups — family products, healthcare and FMCG

exports. The family products portfolio boasts of quite a few market

leading brands — Dabur Amla and Vatika hair oils, Vatika shampoo,

Dabur Honey, and Dabur Lal Dant Manjan.

Dabur India also has well-recognised brand names and an established

distribution set-up in the healthcare business with brands such as

Dabur Chyawanprash, Hajmola, Pudin Hara and Dabur Lal Tail. Given

Dabur's acknowledged strengths in ayurvedic healthcare, the scope

for expansion in each of these product baskets is considerable.

Though in the recent years, the growth from Dabur's FMCG

portfolio has been sedate, due to sluggish rural demand and

intense competition from a host of regional brands and counterfeit

products. However Dabur's operating profit margins have been more

or less constant over this period.

However, the FMCG business is Dabur's cash cow contributing over

70 per cent of Dabur India's current revenues. The business has

consistently generated high cash flows and called for minimal

82

incremental investments. The overall growth in hair oil industry has

been 7% whereas growth in branded coconut oil has been

10%.Vatika hair oil has a market share of 19% and Dabur

Chyawanprash has a 61% market share and is the market leader.

Both of these are therefore Dabur’s cash cow.

83

THE NEW DABUR ENTITY

The New Dabur Identity modernizes the 100-year old equity of the

Dabur brand by subtly transforming the tree. While it retains the

essence of the banyan tree, it now projects a contemporary image, in

consonance with today's lifestyle.

The tree, a symbol of nature, is indelibly regarded as a provider of

shelter, food and protection. On a metaphysical plane, the tree is

regarded as sacred, trustworthy and a symbol of fertility. The new

Dabur identity retains these enduring and valuable attributes, while it

adds a fresh, healthy and holistic dimension to the tree.

The new identity appropriates nature as the wellspring for Dabur. It

conveys Dabur's heritage, commitment and stability through the form

and colours of the tree; its branches and leaves. It also conveys that

the brand stands for wellness across age groups.Taken as a whole, the

tree appears well rooted, implying stability; and its abundant canopy

implies that it can provide amply for those who seek its produce and

shade. Further, the entire image, being well-proportioned, evokes a

harmonious, well-balanced, wholesome and holistic brand.

84

In India, the tree is a symbol of life. It is a giver of fuel, food and

protection. It is a heaven for creatures it generously harbours in its

foliage, as well as in the shade of its canopy. The tree is held

auspicious as it spreads through the three spheres with its roots

meshing through the earth, its trunk rising through the terrestrial world

and its branches reaching into the heavens. This symbolism also

occurs in cultures across the world.

Keeping these vital associations in mind, the tree in the new Dabur

identity has been carefully created to communicate Dabur's invaluable

100-year old legacy as well as its future aspirations. It now takes on a

younger avatar, in its form and colours, and strikes a rapport with the

consumer as a proactive brand with a commitment to wellness and to

nurturing an active lifestyle across age groups.

Thus, through its form and colours, the new logo identity combines

freshness and stability. It expresses a brand that is positive, proactive

and progressive. The burst of leaves and their colours symbolize

growth, rejuvenation and inner strength. The form and colour of the

trunk convey growth, youthfulness and stability. Thus, the logo identity

lock up presents Dabur as a stable yet evolving, contemporary, vibrant

and active brand cherishing nature as the source of all its endeavours

along with an abiding commitment to the wellness of consumers

across age groups.

85

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.

86

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 87

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.

88

RECOMMENDATIONS

Focus on growing core brands across categories.

Reaching out to new geographies, within and outside India.

Improve operational efficiencies by leveraging technology.

Be the preferred company to meet the health and personal

grooming needs of our target consumers with safe, efficacious,

natural solutions by synthesizing the deep knowledge of ayurveda

and herbs with modern science.

Provide consumers with innovative products within easy reach.

Vatika hair care centre: On the lines of 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.

89

RESEARCH METHODOLOGY

As the purpose of the project report is to analyse the consumable

products successfully launched in the last three years.

The data was collected both with the help of primary as well as

secondary sources.

For primary data, I proceeded with the drafting of the questionnaire for

consumers was structured as undisguised, & Personal -interview

retailers. Distributors & wholesalers and it was handed personally by

me to the respondents to be analysed.

The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained

by just asking the questions.

c) Questioning is usually faster and cheaper.

d) Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the

company has furnished for the general public. The secondary data was

gathered with the help of various magazines, newspapers, journals,

brochures and also through the internet. For secondary sources no

field work was employed.

90

In order to amplify the empirical findings from primary and secondary

sources, a survey was conducted both of consumers and retailers

Distributor & Wholesalers in order to gauge the market opinion.

The questionnaire was of multiple choice and the pattern of questions

was as simple as possible. With every question, multiple choices were

given and respondents were asked to select one of them. The

questionnaire technique was structured and not disguised as the

questions followed one pattern and reason behind the questionnaire

was stated properly. All the questions were directly related to the

subject.

For Dabor Chyawanprash and Vatika hair oil.

1. Sample size for customers were 20 in number and the universe

comprised of all the consumers within the geographical region of

Delhi.

2. Sample size for retailers were 10 in number and the universe

comprised of all the consumers within the geographical region or

Delhi.

3) Sample size for Distributor & Wholesaler were four in number &

the universe comprised of all the consumers within the

geographical region of Delhi.

91

No other field work was employed to gather the information. The

questionnaire were distributed to the respondents and the data was

collected through primary and secondary sources.

The statistical technique such a Pi-chart and percentages were used in

analysing and interpreting the data.

92

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 rather well 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

Dabur successful ATA (Availability, Taste and Affordability) marketing

module, the attributes most rated by the consumers. Lack of publicity

has hampered the growth progress of the brand so aggressive

advertising is needed to promote Chyawanprash and vatika hair oil

brand .The brands such as that of Chyawanprash by vaidnath,

Chyawanprash with its ‘sonacahndi, ‘Minute- made’ and also US food

giantssDel Monte are ready to hit the Chyawanprash market very

soon.

93

Vatika hair oil has no major competition except an Australian Product

Tobasco. As a new product so people are not able to digest it yet

Dabur is getting 8 crores from Vatika hair oil in which accounts for 4

crores, Lemoneez 1 Crore & others 3 Crores .

As the strategies of the companies keeps on changing, be it in

Chyawanprash industry, a company has to create perceptions and

cover them into realities. It is an expensive proposition requiring

huge expenditure on advertising, sponsorships and media. Thus, the

ideal company will be the one which combines the high end

technology with consumer insight.

As 16% of the excise duty is exempted on food products in this

budget , Many food companies including Dabur got benefited from it .

On the analysis of survey it was found that target Market of

Chyawanprash want quality benefit rather then Price benefit, so it is

better to stress on quality rather than on decreasing price to increase

sales and profit. To increase market share Dabur should give slight

price benefit on Dabur brand so that customers of other Juice brand

should switch from other brand to Dabur brand .

As vatika hair oil is a new product introduced by Dabur and as Dabur

is getting excise benefit from the Government so Dabur should pass

slight Price benefit to the target market so that target market should

use the vatika hair oil and adopt it in making daily food thereby

increasing the market share of vatika hair oil.

94

REFERENCES

Books:

Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane

Keller

Websites:

www.google.com

www.dabur.com

www.tutor2u.net

www.brandchannel.com

www.blonnet.com

www.superbrandsindia.com

95