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PREFACE
Indian Economy has undergone a radical transformation in the last three
decades. The discoveries and invention in various fields of life is perhaps be
the reasons for this transformation. The marketing strategy in India which was
practiced in the olden days has either been changed or been refined so as to
adjust with this dynamic world.
If we consider the early years of development of our economy. It is observed
that the producer’s consumers as well as production and consumption is
becoming more and more complex and specialized .
The concept of giving more customer satisfaction has been changed .
The present emphasis is one matters of providing a complete ‘Pleasure’ or
‘delight’ to the customers every walk of life.
In the light of the present marketing scenario, through this project “With the
change of policies in Budget 2003-2004, How Dabur can increase its market
share in food Products” emphasis on marketing.
My two months of training, in Dabur India Ltd. enabled me to study and widen
the intellectual horizon with a practical sense in the concept of marketing in real
life.
1
THEORETICAL
CONCEPT
2
THEORETICAL CONCEPT
AREA OF SPECIALISATION
Marketing, more than any other business function deals with customers.
Creating customer value and satisfaction are the heart of modern marketing
thinking and practice.
Sound marketing is critical to the success of any organisation- large or small,
for profit or non-profit, domestic or global. Large for-profit firms such as
McDonnell’s, Sony Fed Ex use marketing, but so do non-profit organisations
such as colleges, hospitals, museums and even churches.
Many people think of marketing only as selling and advertising. However,
selling and marketing are only the tip of the marketing iceberg.
Today, marketing must be understood not in the old sense of making a sale-
“telling and selling”- but in the new sense of satisfying consumer needs.
If a marketer does a good job of understanding consumer needs; develops
products that provide superior value; and prices, distributes and promotes them
effectively, these products will sell very easily. Thus selling and marketing are
only a part of a larger “marketing mix”- a set of market tools that work together
to affect the market place.
3
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and
value with others.
So , Marketing Management is defined as the analysis, planning,
implementing and control of programs designed to create, build and maintain
beneficial exchanges with target buyers for the purpose of achieving
organisational objectives. Marketing management involves managing
demand, which in turn involves managing customers relationships.
The basic task of marketing is the delivery of total offer to the consumer is such
a manner that
a) the offer fulfills the needs of the consumer
b) the term and attributes of the offer are acceptable, and beneficial to the
consumer, and
c) All the organisational goal, including profits are achieved in the process.
The concept of marketing touches every sphere of one’s life. It is through
marketing, the standard of living is developed. A successful business requires
marketing as its key factor. The firm marketing, in the traditional sense means
‘Making sale’ but in the modern era, this has changed. Now the emphasis is
laid on ‘ satisfying the customers need’ rather than selling the articles.
Therefore the recent defination of marketing would be ‘the fulfillment of needs
4
by the transactions and exchanges of products through the media of markets in
a ‘ satisfying manner’.
Now-a-days there a vast varieties of marketing strategies are developed by the
companies to promote the selling, but those companies which are giving
importance to a customer’s wants will be succeeded in their attempts. So among
the companies involved in the competition , the one which understand the
customer’s will thrive and others will perish as the saying goes struggle for
existence and survival of the fittest.
It the on going study various attempts have been made to understand the tactics
of Dabur. As a result of the competitions a company has to find new
orientations to bring about exchanges for the purpose of satisfying needs and
wants. Marketing decision is one of the important tools, a company has to take
in its long run. Most of the marketing decisions are based on Products, its price
and the way in which the selling can be promoted.
DABUR INDIA LIMITED
Over hundred years of caring.......
Dabur commenced operations in 1884 and is today a multilocational,
multiproduct enterprise. The Company has major interests in health and beauty
care. Dabur is a leader in Ayurveda - the traditional Indian health care system.
The Company manufactures and markets a range of oncologicals. Dabur is one
5
of the few companies in the world to produce Paclitaxel - an anti cancer drug.
The Company has developed its own eco-friendly process to manufacture this
drug from raw material stage.
The Company has 12 manufacturing plants in India, Nepal and Egypt. Dabur
products are also manufactured in Dubai. Dabur has transnational network of 19
offices servicing both rural and urban markets in India. The company has sales
and marketing offices in Dubai and London.. Dabur products are available in
over 50 countries. Dabur has collaborated with leaders in their fields to set up
joint ventures in India. The joint venture with Agrolimen of Spain, General De
Confiteria India Limited, manufactures confectioneries. Dabur International
Limited, the joint ventures with Bon Grain of France, will manufacture
specially cheese. Dabur has collaborated with Osem of Israel to manufacture
bakery specially and another food products.
Dabur India Limited- Its historical background and its growth
Dabur commenced operations in 1884 and is today a multilocatonal,
multiproduct enterprise. The Company has major interests in health and beauty
care. During the late nineteenth century,most allopathic medicines were out of
the reach for the vast majority of the Indian population, both in terms of price
and availability. This promoted a doctor from Calcutta, Dr. S.K. Burman, to
establish a Company in order to provide low priced alternative in the form of a
traditional Aurvedic medicines. The company in question was called Dabur
6
which later became incorporated as Dabur India limited, after merging with
Vidogum and chemical Ltd 1986. The company was started by Burman family
and has come a long way. The dream of becoming a Rs 1000 crore Company by
the turn of the century, which it has shared as a promise with prospective
investors during its 1997 public issue, could well come true. Its such refreshing
change. In a corporate battlefield littered with the corpes of the familiar feuds,
Dabur’s story of succession has been relatively smooth. All highly qualified
professionals in various disciplines, the Burman clansmen have each been
assigned critical but well-defined roles that complement not supplement on
another. Moreover, it is one house where trasition has been an integral part of its
history.
Today Dabur stands at the thershold of a major diversification, expansion and
globalisation programme that is aimed at transforming the once closely-held
family company into a professional group with interests such as diverse as
toiletries and pharmaceuticals and held products.
Pivotal to this effort and resources. In one deft stroke, the Burman family plans
to dilute its holdings in the group by 20 percent by offering Rs 54 crore worth of
shares at a premium of Rs 85 each to financial institutions, FII’s and the public.
It issued bonus shares to existing shareholders in the ratio of 4:1.
Together, this will hike the company’s paid up capital from Rs 4.56 crores to Rs
28.47 crores. In order to expand internal sources are no enough. Traditionally
7
known for its Ayurveda/ethic products, with well known herbal bases Dabur
Chyawanprash, Hajmola, Pudin Hara, Dabur Amla hair oil the company has
retrained this aura with even new products while at the same time entering
modern areas of business.
The company manufactures and markets a range of oncologicals. Dabur is one
of the few companies in the world to produce Paclitaxel and anti-cancer drug.
The company has developed its own eco-friendly process to manufacture this
drug from raw material stage.
The company has 12 manufacturing plants in India, Nepal, and Egypt. Dabur
products are also produced in Dubai.Dabur has a transnational network of 19
offices serving both rural and urban markets in India. The company has its sales
and marketing offices in Dubai and London. Dabur products are available in
over fifty countries.
Dabur has collaborated with leaders in their field to set up a joint venture in
India. The joint venture with Agrolimen of Spain, General De Confiteria India
Limited, manufactures confectioneries. Dabur International Limited, the joint
venture with Bongrain of France, will manufacture speciality cheese.Dabur has
collaborated with Osem of Israel to manufacture bakery specialities and other
food products.
8
From Rs 5 crore company in 1971 to Rs 316 crore company in 1993 to a Rs
1050 crore conglomerate now.
The rethinking within the Burman family began just before Dabur’s maiden
Public issue in 1993. Introspection into product portfolio, analysis of markets
and distribution afresh.
A.F. Fergusen was appointed to examine possibilities and come up with
suggestions that would help Dabur achieve its turn of the century targets. From
a closely help group in early 1990’s, the over 700 crore Dabur group has diverse
interests, ranging from pharmaceuticals to cosmmetics to food products to
insurance.
The different product ranges that Dabur offers in different segments are :-
Pharmaceuticals :-Cytostatics, Anti Bacterials, Anti Histimines, Anti Ulcerants
and Antiacids, Analgesics and Anti Diarrhoeals, and Anti Hypertensive.
Cosmetics :- Skin Nourishers and Tonners, Moisturisers and Sun Protectors,
Cleaners, Face Masks, Hair Oils and Vitalizers, hair Wash and Cleaners.
Foods :-Fruit Juices and Homemade cooking.
Family Products :-Hair Care Products, Dentifrice, Sherbets, Honey and Food
Additives.
9
Product for Global Markets :-Soaps, Shampoos, Shaving Creams, Cooking
oils and other select products from Dabur range.
Ayurvedic Specialities :-Liver Tonics, Cardioprotectives, Anti Arthritic,
Hypoglycamic, Rejuvenators, Anti Diarrhoeals and Bowel Regulators.
Veterinary Products :-Digestive, Uterine Tonics, Oestrus Inducers, Liver
Tonics Dermatologicals and Anti Stress.
Traditionally known for its ayurvedic/ethic products, with well known herbal
bases. Dabur Chyawanprash, Hajmola, Pudin Hara, Dabur Amla Hair Oil the
company has interestingly, retained this aura with even new products. While at
the same time entering more modern areas of business. Dabur Honey, for
instance, an attempt to brand honey, an old age commodity favourite with
Indians. On the other the company has entered into new-age areas such as
cosmetics and pecked food Also an anvil and personal care products through
tie-ups with multinationals.
In 1994 the new-age Dabur emerged, fresh from the success of its maiden
public issue, when the Burmans decide to decentralise the control on day to day
affairs. Also a decision was taken to convert the three core business of
healthcare, family care and ayurvedic specialities into independent profit
centres, each with its own marketing and distribution set up.
The company has six profit centres:-
10
Healthcare products division.
Family product division.
Ayurvedic specialities division.
Ayurvedic division.
Pharmaceutical division.
Export division.
This was done not only to increase visibility, but also to give the professionals
more time of focus on existing products with the scope and freedom for each
division to enhance their market presence with additional products.
The strategic rationale for shift from Dabur’s inherited business is that the OTC
drugs like Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of the
business. Dabur has more than 60% share of the branded Chyawan-prash
market. The market share of digestive like Hajmola and Pudin Hara above 80%.
The high profile diversification’s, specially in foods and cosmetics, is all set to
build no that franchise.
Dabur has range of over 500 products covering Health and Beauty care, Bulk
Drug Pharmaeuticals, Animal Health Care, Foods, Cosmetic and Natural Gums.
The strategic rationale for the shift from Dabur’s inherited business is that the
group hopes to leverage its considerable brand equity. Last year, more than 70%
11
of the group’s business came from the family and healthcare division. The
former, which covers hair oils, oral care and Dabur Honey, the largest division,
contributing 43% of the bottom line. Health care, covering OTC drugs like
Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of the business.
Dabur has more than 60% share of the branded Chyawan-prash market. The
market share of there digestives like Hajmola and Pudin Hara is above 80%.
The high profile diversifications, especially in foods and cosmetics, is all set to
build on that franchise. Analysts have questioned these moves because they
bring the group up squarely against market dominated by multinationals and
strong domestic players. The young cousins think otherwise. A close look at the
bussiness and the challenges they could face.
Foods:- This cannot strictly be called a new line of business for Dabur. The
company has been selling Sharbat-e-Azam, a herbal drink concentrate, for over
a decade and products like Chyawanprash and Hajmola were already Classified
and sold as food items abroad. Today, the Dabur game plan covers the entire
gamut of the Rs.3000- crore convenience and ready to eat foods.
Making it happen is a spate of tie-ups, there’s excelsior Foods, a 60:10 venture
with the $ 500 million Osem, Isarel’s largest food company, which launched
Creamwich crisps in February this year. Other products on the anvil include
salad dressings, biscuits and noodles. Dabur International is an equal
partnership company with the $2-billion Bongrain SA of Frnace, to make
12
specialty cheese products. The Rs.10-crore venture will enter the 7500-tonne
per annum cheese market. Here, it will take on established players like market
leaders Amul which has a 60% market share, Vijay(14%) and Vadilal(10%).
One Index of the kind of challenge Dabur could face is the group’s foray into
chewing gum in collaboration with Agrolimen of Spain for its Boomer brand in
1995. The company claims the venture has been a success-sales reached Rs. 25
crore in the first year against a target of Rs.15 crore. But recently, the unit price
of Boomer was reduced from Rs.1.50 to Rs. 1 after Perfetti India, the main
competitor in this segment, reduced its price.
Dabur take on established players like Hindustan Lever, Nestle and Amul. Amit
Burman, director-in-charge, foods and cosmetics, is confident. Their products
are unique. This coupled with product quality and Dabur’s brand equity will
give us a unique position.
But it is going to be a long haul. For one, Dabur may be a strong player in the
herbal market, but foods, with a shorter shelf life, require a different distribution
network.
Take the launch of Real fruit juices and Homemade Cooking Pastes in June 97.
The product proved to be a sellout but the company was unable to keep pace
with demand. As a result Real and Homemade went off the shelves in 45 days
and reappeared only on May 98 and from then it has picked up. The Burmans
13
are, however, putting some infrastructure in place for their foods business. For
instance, Dabur plans to set up a cold chain network to support its cheese
products business.
Cosmetics:-This was suggested by Gauri, G.C. Buaman’s daughter After a stint
abroad as a student, she realised that quality cosmetics were hard to come by in
India. She mooted the idea of diversify into cosmetics and positioning the
products at a price range the would make them affordable for urban, middle
class women, So Samara, a cosmetics range of skin-care products, was
developed by the Dabur Research Foundation.
Here again, there is tough competition from strong domestics and multinational
players like Lakme, Oriflame and Benekiser. But Amit Burman is confident of
penetrating the Rs. 800 crore cosmetic market. Dabur’s equity in the herbal
category is certainly going to help in marketing these products, although we do
not claim this range to be either herbal or Ayurvedic.
Samara is relating through 150 select outlets in Delhi and Chandigarh and will
roll out in Mumbai shortly. With a projected turnover of Rs. 3.5 crore in the first
year, Dabur is taking no chances. The company has installed skin testing
machines and oil outlets. These will help buyers test their skin type before
making a purchase.
14
Veterinary ayurvedic : Dabur Ayurved, set up in 1995 targets the urbanised
sector. The turnover from this division comes Rs. 17.6 crores in 2003. In 2004
the company hopes to close with a turnover of Rs. 19.8 crores the Rs. 90 crore
market for veterinary herbal drugs, they hold a 20% market share. With very
few competitors, Dabur is eyeing the top slot by this year end.
Natural Gums: This is the binder division of the group set up in 2003, catering
to customer specific binding needs. The ubiquitous tamarind and sugar seeds
constitutes it raw materials. Dabur has signed a technology transfer and buyback
agreement with Sheikibo of Japan, the world market leader for gums.
Finance: Also on the agenda in Dabur’s foray in the insurance sector. They
have signed an MoU for setting up a 50-50 joint venture with Boston-based
Liberty Mutual Group.
The different product ranges that Dabur offers in each segment are:-
Pharmaceuticals:-Cytostatics, Anti Bacterials, Anti Histimines, Anti Ulcerants
and Antacids, Analgesics and Anti Diarrhoeals, and Anti Hypertensives.
Cosmetics:- Skin Nourishers and Tonners, Moisturisers and Sun Protectors,
Cleansers, Face Masks, Hair Oil and Ventilizers, Hair Wash and Cleaners.
Foods:- Fruit Juices, Homemade Cooking.
15
Family Products :- Hair Care Products, Dentrificce, Sherbets, Honey and Food
Additives.
Products for Global Markets:- Soaps, Shampoos, Shaving Creams, Cooking
Oils and Other select products from Dabur range.
Ayurvedic Specialities:- Liver Tonics, Cardioprotectives, Anti Arthic,
Hypoglycamic, Rejuvenators, Anti Diarrhoels and Bowel Regulatros.
Veterinary Products :- Digestigve, Uternice Tonics, Oestrus Inducers, Liver
Tonics Dermatologicals and Anti Stress.
Bakery Product :- Herbal and health products giant Dabur Ltd. is making an
entry into the business in collaboration with Israel based OSEM Group, a
leading bakery product company in the country. The joint venture will be
floated in which Dabur India Ltd. will hold 60% stake.
The initial investment in the project is to the tune Rs. 10 crore and the project
will be funded through an equity contribution of RS. 5 crore by the two partners
and a loan of Rs. 5 crore. OSEM is one of the largest grocery food
manufacturers with a product line of nearly thousand varieties of cookies, cake,
candies wafers and sauces among other things.
The Dabur-OSEM joint venture manufactures snack foods, mayonnaise,
specialty biscuits and extruded food. Dabur also proposes to transfer its
extruded food products to the joint venture company. The company is already
16
into making Sharbats (sharbat-ai-Azam), rose water, kewra water, cardamom
extract sold under the brand name of instant, a red pepper salt called Capisico.
Besides they are manufacturing candies called Hajmola. The company intend
making items that are suitable to Indian paletes like or ginger based chutney
along with mayonnaise to cater to the new evolving palet. The company is also
test-marketing a lemon flavoured juice. The revenue generated by the sales of
these products at present amounts to Rs. 4 crores. The joint venture company
will establish an exclusive distribution network for its products line and will
also use Dabur’s existing network for sale of its products.
Dabur has its roots in Ayurveda and has been manufacturing wide range of the
health care products. If a person comes to buy Dabur honey or Hajmola, he can
also buy the snack food. It is this outlet that the company is using ultimately to
market the product of joint venture. And the product is packaged convenience
food. After all today chips and Pepsi are more popular even in the remote
villages.
Couple of years back Dabur realised that many of its brands were selling in
dying market. Items like extract, rose water etc., could not be promoted because
of thin margins. In the early 1970s Dabur even went into the manufacturing of
pan masalas, which was sold under the brand name of Nawabi pan masala.
However, the venture was given the go-by, in view of the fact the Dabur is
basically a health care company and the product did not go with the image of
17
the company. Similarly, Chyawan-prash was brought only by grandparents in
rural and semi-urban markets a group which was vanishing rapidly. To keep
growing and attract the younger set of the rural consumer, the Dabur brand has
to shed its image.
And after the years of perfecting rural selling pitch, the marketer need to learn
how to woo the urban buyers. For the past few years, Dabur has been engaged
in balancing its traditional appeal with a modern image and it is a difficult job.
There is a fear in the process that the company may lose its existing customers
and the balancing act between the rural and urban, modern and traditional has to
be maintained cautiously. This was a strategy of Dabur.
This is a bilateral agreement in which Dabur has majority. Dabur is doing the
market research of the Indian psyche-what can be sold and what can not be,
while OSEM is providing the technology. To be successful in the market,
product should have market acceptability and Dabur is confident that their new
products will be as popular as the existing ones. However, they are aware of the
fact that they will face stiff competition. If Hajmola could compete against
chatpat churment from Procter and Gamble, then why not against other things.
Besides catering to Indian market, the joint venture company also plans to
export its products to Middle East.
EXPORTS
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Healthcare products and family products brands contribute 35% of Dabur’s
Export sales. Bulk Drug, including fluconazole, terfenadine and anti-cancer
drugs, accounts for a further 14% of exports, while oil, spices and gum accounts
for the remainder. The companies leading exports is Amla Hair Oil, which is
particularly popular in U.K and the Middle East. Other principal market include
Bangladesh, Sri Lanka and Malaysia, although the company products are
available in cover 50 countries in total.
In terms of recent international launches, the company introduced six single-
ingredient ayurvedic OTC dietary supplements under is Nature Care label in the
U.K, Germany and Italy.
The recent past has spawned a unique economic era. Over the century of
presence against the background of varying economic conditions, has
strengthened Dabur’s marketing skills. Dabur has cope with, indeed thrive in a
changing marketing environment. As a marketer Dabur has listened, learned,
reacted and then created products that have stood the best of time. Products that
have evoloved to become household names in over 35 countries.
Global Vision coupled with motivated human resources, appropriate
technologies and optimum utilisation of resources at all levels are today the key
ingredients for a successful enterprise. These are very foundations of Dabur’s
corporate philosophy.
19
As a leader cannot be insensitive to the changing nature of customers demand.
Serving them requires a continuous review of technology. Technology
upgradation is a continuous process. At Dabur it is a culture you can not service
tomorrow’s market with yesterday process. Dabur’s advantage is its superior
technology edge. And in maintaining this they are not constantly pushing back
the frontiers of technology but also expanding the frontiers of their own
potential and capabilities. The world over standards and bench marks have
changed, and so have Dabur’s, though they continue to be inspired by ancient
wisdom. Dabur uses today technology to deliver it in this successful blending
that give Dabur the confidence of continuing to be the leader even amidst chage.
The Indian market has gone sea change in the last few years. There has been
influx of some of the latest technology the world has to offer. Dabur has taken
advantage of this and embedded the best of the relevant technology. Production,
Research and Development are the two areas where this infusion is evident.
Dabur prides itself on its R&D infrastructure. It is the investment that has been
paying rich dividends. R&D at the Dabur is obsession. It is the corner stone of
their innovative skills. Be it an anti cancer drug or herbal enriched hair oil,
Dabur’s research and development has been successfully in developing both and
in transferring laboratories techniques into production. This is very important
because research without its adoption into practice is a mere academic exercise.
20
Technology upgradation has not been at the cost of be humanising the quality of
life. Stricker pollution control measures, as expansion of information
technology capabilities have all added to the better environment and work ethos.
Dabur has always been synonymous with quality. For Dabur it is a culture and
not a stop gap arrangement. Dabur believes that quality is a corporate
responsibility towards employees, and environment in which they operate.
Sustaining consumer confidence for over a century is no mean feat.It is indeed a
true reflection of quality of the Dabur’s products. Dabur as a company are
committed to sustain this consumer confidence.
Global vision, a perfect blending of technical and human resource are key
ingredients for growth. These are very foundation that will expand existing
business as well as nurture strategic alliance through commitment innovation
and as emphasis on total quality.
Fiftieth year of independence of India a year of introspection not only for the
country but for Dabur also. From private limited company at the time of
independence, Dabur has come a long way to be a widely held company rated
amongst the best business ho/se of India. Dabur feels proud in reminiscing those
years of achievement. Economic growth is not an end in itself. It is the
contribution to the environment in which you flourish, that matters. Dabur has
contributed by providing health care for the society we live in. has cared for its
21
customers and has tended the nature that provides raw material for the
company’s product.
Dabur has taken everyone in their journey towards growth and progress.
Shrinking global borders has made the company part of the international
community. Changing world economy has changed the ground realities. The
company has lived upto these challenges and have entered new market overseas.
Back home, company has diversified into new areas.The company will look
forward to new opportunities for growth in years to come. Dabur has kept pace
with time . It has changed, evolved and contemporised. Dabur has learned to
outpace the competition. And is sure that it will continue to be a leader in all the
areas of its activities in the golden year of Indian independence and beyond.
ADVERTISING
The new advertising campaigns were taken by 112- year old company to
position it as a contemporary, up market company. Forget dada- dadi’s brand.
The 112-year old veteran in pharmaceuticals and hair care, Dabur India limited
is swiftly shedding its traditional trappings and turning contemporary and chic.
It is not just the product profile that is metamorphishing, through Dabur’s new
offerings Samara cosmetics, Real fruit juices and home made pastes are more
trendy than its old brands Pudin Hara, Dabur Amla Hair Oil and Chyawanprash.
Far more interesting is the change in the company’s positioning. From sedate
endorsements from filmstars and rishis.
22
Dabur’s new preferece is for interactive advertising, and its spokes persons are
more often than not, attractive young women.
The brands have evolved over the years to suit the consumer. The shift from
traditional is in tandem with the changing trends in consumer behaviour.
Indians have become more aware of their rights and new generation refuses to
buy brands just because it is dadaji’s favourite. It needs more valid reasons to
make a choice. Dabur’s new advertising style gives them valid reasons.
The campaigns are intended to give better discounting on bourses. The intense
campaigns are a part of Dabur’s growth strategy which is aimed at:
Leveraging on its brand equity by introducing line extensions.
Creating a niche for itself by innovative product introductions.
Creative about Home made and Lamoneez campaigns ad conveys the
message to the target audience working women in a short span of 15-20
seconds.
Dabur’s attention to advertising and promotion was provoked by a 1993 market
survey, which showed most consumers perceived Dabur to be a small company,
with only one or two factories and no more than a handfull of products.
However, the company was determined to strengthen its corporate image in
order to attract foreign partners and joint ventures.
23
DISTRIBUTION CHANNEL
Dabur commenced operations in 1984 and is today a multilocational,
multiproduct enterprise. The company has major interests in health and beauty
care.
Dabur is a leader in ayurveda the traditional Indian health care system. The
company manufactures and markets a range of oncologicals. Dabur is one of the
few companies in the world to produce Paclitaxel an anti-cancer drug. The
company has developed its own eco-friendly process to manufacture this drug
from raw material stage.
The company has 12 manufacturing plants in India, Nepal and Egypt. Dabur
products are also in Dubai.
Dabur has a transnational network of 19 offices servicing both rural and urban
markets in India.
The company has sales and marketing offices in London and Dubai. Dabur
products are available in over 50 countries.
Dabur has collaborated with leaders in their field to set up a joint venture in
India. The joint venture with Agrolimen of Spain, General de Confiteria India
Limited, manufactures confectioneries. Dabon International Ltd, the joint
venture with Bongrain will manufacture speciality cheese. Dabur has
24
collaborated with OSEM of Israel to manufacture bakery specialities and other
food products.
Dabur has a range of over 500 products covering health and beauty care, bulk
drugs, pharmaceuticals, animal health care, foods, cosmetics and natural gums.
Dabur has one of India’s largest distribution network.. In 2003 Dabur products
estimated 27 retail outlets. This strong distribution network has ensured
availability of Dabur products in almost every part of the country. From the
small pan shops to grocery stores, from drug stores to big markets, Dabur
products are available in all.
It has already deployed as many as 130 representatives to roam rural India,
where its market lies, and interact with farmers directly to spread the message of
herbal animal health care. This is one of the largest sales source deployed by
any company for marketing veterinary medicine in the country.
MARKETING
Having set up a new foods division recently, the Rs. 1050 crore Dabur group
has the difficult task of making an impact with its product launches in the
market place , initially dominated by mega brands from deep pocketed
transnationals, and ruled by consumers whose age old eating habits were not
easy to change. Moreover Dabur’s products are range of exotic pastes and
packed fruit juice were essentially new concepts which consumers were not
25
familiar with, in branded form at least, in this country.CEO G.C. Burman’s
search for the best way to stage a big bang entry ended in time based
competition. Instead of phasing out the launches of its new products, which
would have been tantamount to adding a small drop to an ocean at discrete
intervals, he decided to roll out new products in one breathless burst of six
weeks, introducing one new brand on every Monday. In the market place Dabur
beat every other company planning to introduce products in the same segment,
thus gaining almost generic association in the customers mind for some newer
brands. On the consumers psyche, the brands blikzkrieg registered Dabur as a
modern food company, helping in dismantling its earlier image of being a
vendor of semi medicinal ayurvedic products only, and within the organisation.
The imperative for these products only, and within the organisation. The
imperative for these rapid fire product launches led to a dramatic quickening of
the pace of supporting activities like distribution and production, preparing
these processes to respond to the changing demands on them at high speed.
Thus, by competing on time, Dabur has given both its product and its internal
processes a head start in locking horns with rivals.
STRONG BRAND EQUITY
A vast product portfolio (over 450 products), a modern research base and a
strong transnational marketing and distribution network are some of the major
factors contributing to the success of Dabur India. The companies product
26
portfolio encompasses product line like herbal health care, beauty care,
ayurvedic medicines, ayurvedic vaterinary products, pharmaceuticals cosmetics,
and natural gums and foods. Dabur is the market leader in most of three product
categories in the domestic market. It is also the leading exporter of herbal health
care and beauty care products. Having indentified its strengths, the company
stuck to its crore competencies.
While all the 450 products were under one umbrella earlier, the restructuring of
its business into six distinct divisions, each headed by an independent
professional, has provided Dabur with the much needed foucs. The result of this
restructuring of its business into six distinct divisions, each headed by an
independent professional, has provided Dabur with the much needed focus. The
result of this restructuring are reflected in the 9603 results sales growth of 39%
and improvement in the OPM from 9% to 12%.
Distribution, marketing and product innovations are the major strength of
Dabur. The ability to find need gaps in the market, to develop products
accordingly and ensuring the timely availability of these products to consumers
have been the hallmark of the company. In the process, it has build a formidable
brand equity. One of the most important decisions taken by the company in its
formative years was to give the consumers good value for their money.
Dabur has grown steadily over the last one decade. To achieve faster growth
rates, the company diversified into areas where its strengths could be utilised.
27
OBJECTIVES OF
THE STUDY
28
OBJECTIVE OF THE STUDY
Following are the major objective of study:-
1. To study the impact of Budget Policies on Marketing Strategy of Dabur
Foods.
2. To study the Consumer, Buying behaviour.
3. To study the problems faced by Dabur.
IMPORTANCE OF THE STUDY
Being student of BBA it is very essential for me to have a practical knowledge
in an organisation. Only to study business administration course knowledge 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. Only in two month training it was
not possible to understand it so deeply, but an overall idea could be developed.
29
COMPANY
PROFILE
30
COMPANY PROFILE
DABUR AT A GLANCE
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 4th largest turnover of
Rs.1329 Crore (FY02)
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
31
Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over 1.5 million retail outlets all over India
CCD, dealing with FMCG Products relating to Personal Care and Health Care
Leading brands -
Dabur - The Health Care Brand
Vatika-Personal Care Brand
Anmol- Value for Money Brand
Hajmola- Tasty Digestive Brand
and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100
crore turnover each
Vatika Hair Oil & Shampoo the high growth brand
Strategic positioning of Honey as food product, leading to market
leadership (over 40%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over
65% market share.
Leader in herbal digestives with 90% market share
32
Hajmola tablets in command with 75% market share of digestive tablets
category
Dabur Lal Tail tops baby massage oil market with 35% of total share
CHD (Consumer Health Division), dealing with classical Ayurvedic medicines
Has more than 250 products sold through prescriptions as well as over the
counter
Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
33
Division also works for promotion of Ayurveda through organised
community of traditional practitioners and developing fresh batches of
students
COMPANY HISTORY
1884 Birth of Dabur
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.
34
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
35
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;
36
A special herbal health care and personal care range successfully selling
in markets of the Middle East, Far East and several European countries.
Inroads into European and American markets that have good potential
due to resurgence of the back-to-nature movement.
Export of Active Pharmaceutical Ingredients (APIs), manufactured under
strict international quality benchmarks, to Europe, Latin America, Africa,
and other Asian countries.
Export of food and textile grade natural gums, extracted from traditional
plant sources.
Partnerships and Production
Strategic partnerships with leading multinational food and health care
companies to introduce innovations in products and services.
Manufacturing facilities spread across 3 overseas locations to optimise
production by utilising local resources and the most modern technology
available.
37
DABUR GROUP
With a basket including personal care, health care and food products, Dabur
India Limited has set up subsidiary Group Companies across the world that can
manage its businesses more efficiently. Given the vast range of products,
sourcing, production and marketing have been divested to five leading group
companies that conduct their operations independently:
DABUR FOODS
DABUR NEPAL
DABUR EGYPT
DABUR ONCOLOGY
DABUR PHARMA
38
COMPANY PHILOSOPHY
"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.
39
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 organisation. 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.
MILESTONES
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
40
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.
41
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
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 popular Hajmola tablet.
1979 - Dabur Research Foundation set up
1979 - Commercial production starts at Sahibabad, the most modern herbal
medicines plant at that time
42
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
1989 - Care with fun
The Ayurvedic digestive formulation is converted into a children's fun product
with the launch of 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 of
Real Fruit Juices - a new concept in the Indian foods market. The first local
43
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 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
44
As a reflection of its constant efforts at achieving superior quality standards,
Dabur became the first Ayurvedic products company to get ISO 9002
certification.
INANCIAL REPORT
Rs (Crores)
2007-2008 2005-2006
Turn over (including other income) 1280.22 1159.02
Profit before tax 165.02 113.44
Add: Provisions of earlier yr written
back
- 0.20
165.02 113.44
Less: provision for taxation - current 13.00 8.75
: provision for taxation – Deferred 4.00 3.49
: provision for taxation for earlier
yr
0.05 00.26
PROFIT AFTER TAX 147.97 101.14
45
Add: Balance in profit & loss account
b/f
From the previous yr
81.12 66.12
- Transferred from debenture
Redemption Reserve
-- 2.50
- Transferred from investment
Allowance Reserve
0.83 -
- Transferred from Investment
Deposit Revenue
1.82 -
PROFIT AVAILABLE FOR
APPLICATION
231.74 169.76
APPROPRIATION TO:
General Revenue 25.15 22.50
Capital Revenue - 1.56
Interim Dividend paid 28.63 17.17
Final Dividend – proposed 42.96 40.07
46
Corporate tax on Dividend 9.77 7.34
Balance carried over to Balance sheet 125.23 81.12
TOTAL 231.74 169.76
47
RESEARCH
METHODOLOGY
48
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.
49
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 gaunche 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 Real Fruit Juice and Homemade Cooking Paste.
1. Sample size for customers were 150 in number and the universe
comprised of all the consumers within the geographical region of AGRA.
2. Sample size for retailers were 40 in number and the universe comprised
of all the consumers within the geographical region or AGRA.
3) Sample size for Distributor & Wholesaler were four in number & the
universe comprised of all the consumers within the geographical region
of AGRA.
50
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.
51
MARKETING
STRATEGY
52
MARKETING STRATEGY FOR DABUR FOODS
FRUIT JUICES : INDUSTRY
Fruit processing industry has been included in the high priority sector, which
means automatic approval for upto 51% foreign equity participation, free import
of capital goods, raw materials and other inputs for export oriented units, and
five tax-holiday for companies. This special treatment was warranted due to
inherent high growth potential.
There has been three-fold increase in fruits processing units in the last seven
years. The installed capacity of fruit processing industry has gone upto 29.10
lakh ton in 2003 from 19.50 lakh ton in 1998. The output of processed fruit
grew by around 22% during the same period.
Though, as a result of value addition, the industry is said to be rowing at 10-
15% per annum, no significant change has accrued to the companies from
increased production of fruits as the cost of production has remained high,
primarily driven by the cost of raw material. High cost of raw material is due to
small land holdings, which discourages the use of mechanised methods and
there are no economies of scale.
Also, as the processors from several small products, maintaining cosistency in
quality of raw material becomes a problem. A plausible solution to this problem
53
could be corporisation of agriculture, especially for the production of fruits.
Large tracts of land can be allowed to be developed by the corporate using
modern technology.
The industry is extremely decentralised and a large number of processing units
are in the cottage and small-scale sector. The other major problem is the poor
post-harvest handling facilities. Consequently, the quality of fruit reaching the
processors continues to suffer.
There are few or no cold chains and cold storages in and around growing
centres. Poor storage and constant handling affects the quality of the fruits and
the processing companies end up losing 30% of raw material. This again leads
to an increase in the cost of manufacturing. Capacity utilisation continues to
remain abysmally low, at around 32%. This is because most fruits are seasonal
and the processing plant still prefers to go in for single fruit. More recently
companies like Dabur, which manufactures Real range of fruit juices, have
started experimenting with processing two or more fruits. Capacity utilisation
may improve significantly if this trend becomes more popular. Brand building is
an important part of selling and surviving strategy for fruit processing
companies. Companies like Tropicana from Pepsico. which sells juice under
the brand name Tropicana and Dabur’s Real fruit juices have emerged as
successful brands, signifying the importance of brand building in the fruit
processing industry.
54
On the export market front, the picture seems to look better. A whole range of
new processed food products is emerging as the new export potential, which
specifically include the fruit juices. The Indian exports were generally
dominated by mango pulp.
Within the domestic market, among the processed fruit products, fruit juices and
such other products, like nectars etc, are beginning to get a market. But the off-
take is limited to the high income group. These products also face stiff
competition from bottled aerated drinks.
These facts does not really mean a dismal potential installed in for fruit juice
industry there exists a latent demand for fruit juice in the country. Indian
consumer has become more and more hygiene and health conscious, which has
led him to demand for hygienic food products. Fruit juices thus, have a great
potential to appeal to the Indian Consumer. The income level of the average
Indian is rising which has resulted in increase in disposable incomes. Therefore,
consumers are ready to buy packets, processed and hygienic fruit juices rather
than a glass of juice from the roadside juice vendor, even if the packed juice
may cost him more. Realising these facts and Govt policy to include processed
fruit juice industry under the high priority sector, many new and old companies
entered the packed fruit juice market.
To precede everyone, was the Rs. 1050 crore Dabur India Ltd which is well
known as a pharmaceutical company. In June, 1996 Dabur, entered the juice
55
market realising its potential with its vast range of Real fruit juices. Real fruit
juices were not an instant success. Its failure can be attributed to the slackness
in the distribution network.
Learning upon the lost opportunity by Dabur, a Mumbai based textile firm
looked upto to diversify its business operations and entered the fruit juice
market with the formation of Enkay Texofood Ltd. Their brand Onjus was
launched in April 97, and with careful planning they captured a huge market
share in virtually monopolistic market conditions.
Dabur later realised its mistakes and geared up to take on the market leader
Onjus. Relaunched, Real fruit juices in August 98, the revitalizedReal fruit
juices have started doing well after its relaunch.
Watching the intense battle between Tropicana and Real fruit juices, to caputer
the Indian fruit juice market, international soft drink giant Pepsi decided to enter
this lucrative fruit juice market. Pepsi recently launched its answer to Onjus and
Real in the shape of Tropicana.
The presence of Tropicana, Real and Berry suggest that there is an immense
potential in the Indian fruit juice market. Even though the established players
like Onjus and more frequently Real have captured a chunk of the juice market.
The entry of Tropicana suggest that there is still scope for others to enter into
this market and hatch the eggs of the golden goose, Indian juice market.
56
The products undertaken in fruit juice segment in the Beverage industry are:
Tropicana from Pepsico
Real Fruit Juices by Dabur India Ltd.
Berry an Australia Product.
MARKETING STRATEGIES OF DABUR FOODS LTD.
The activities and programs which a business firm designs and carries out in its
efforts towards winning customers, relate one or the other of the four elements,
which are usually known as four P’s of marketing, or just Marketing Mix
variable.
Product
Place
Price
Promotion
1) Product means the goods and the services combination the company Offers to
the target market.
Its variables are :-
- Product mix and product line
57
- Design, quality, features, models, style, appearance, size and warranty
of products.
- Packaging, type, material, size, appearance, label
- Branding and trademark
- Services, pre-sale and after-sale
- New products
2) Place includes company activities that make the product available to
target consumers.
Its variables are :-
- Channels of distribution, types of intermediaries, channel design, location of
outlets, channel remuneration and dealer - principle relations
- Physical distribution, transportation, warehousing, inventory levels, Order
processing etc.
3) Price is the amount of money customers have to pay to obtain the Product.
Its variables are :-
- Pricing policies, levels of margins, discount and rebates.
- Terms of delivery, payment terms, credit terms and installments Facilities.
58
- Resale and price maintainence
4) Promotion means activities that communicate the merits of the product and
persuades the target customers to buy it.
Its variables are :-
- Personal selling:- objectives, level of effort, quality of sales force, cost level,
level of motivation.
- Advertising : media mix, budgets, allocations and programs.
- Sales promotional efforts, displays, contests, trade promotions.
- Publicity and public relation.
An effective marketing program blends all the, marketing mix elements into a
coordinated program designed to achieve the company’s marketing.
objectives by delivering values to consumers. The marketing mix constitutes the
company’s tactical tools kit for establishing strong positioning in target markets.
Thus, from the above it is very much clear that the proper marketing mix is
necessary for the products to be successful.
59
PRESENTATION OF
DATA
60
PRESENTATION OF DATA
CONSUMERS ANALYSIS
DABUR REAL JUICES
1. People Drinking Fruit Juices
2. Brand Awareness
61
3. Category of Real Juice Consumer Mostly Buys
4. Seasonal Consumption of Real Juice
62
5. Consumption of Real Juice if there will be slight increase in Price &
Increase in quality
6. Customer Expectation from Dabur by exemption of excise Duty.
63
7. Consumption of Real Juice if there will be increase in quality and
slight decrease in price.
8. Will discount influence customers to leave Dabur & use other Juice
knowing Real Juice is better.
64
CONSUMERS ANALYSIS
DABUR HOMEMADE COOKING PASTES
1. Use of Cooking Paste to make food delicious
2. Recall of Dabur Homemade Cooking Pastes
65
3. Category of Paste Consumer Buy.
4 . Customer expectation from Dabur by exemption of excise duty.
66
5. Consumer of Homemade if there will be slight increase in Price &
increase in quality
6. Consumption of Homemade if there will be increase in quality &
slight decrease in Price
67
7. Do discounts influence customers to leave Dabur & use other Paste
Knowing Homemade is better
68
RETAILERS ANALYSIS
DABUR REAL JUICE
1) Stocking of Real Juice by the Retailers
2) Purchase of Juice Type
69
3) Stocking of Real Juice Over the Past Year
4) Reasons for stocking Dabur Real Juice
70
5) Any effect of increase in Price in real Juice
71
RETAILER ANALYSIS
DABUR HOME MADE
1) Stocking of Homemade by the retailer
2) Purchase of Cooking Paste
72
3) Stocking of Dabur homemade cooking Paste over the past year.
Q.4. Reasons for stocking Dabur Homemade
73
5) Any effect of Budget
74
ANALYSIS OF DATA
75
ANALYSIS OF DATA
SWOT ANALYSIS
STRENGTHS:-
It is present in two sweetened and unsweetened taste
Efficient distribution channel
Affordable and visible
User friendly packaging
Extended shelf life
Easy availability
Reliability
Appeals to health and hygiene conscious people
Large product line
Undifferentiated market
WEAKNESSES
Consumer’s perception towards Dabur as a pharmaceutical company
Perishable product
Stringent quality management
76
High investment required
OPPORTUNITIES
Growing stage- sunrise industry
Changing consumer habits
New flavours especially vegetables
Export potential
THREATS
Entry barriers not high
Competition from MNC’s
Competition from non-alcoholic beverage market.
77
FINDINGS
78
FINDINGS
THE MARKETING MIX
PRODUCT ( Real Juice )
The Facts :
The Real range of juices includes orange, mango, pineapple and mixed fruit
juices as well as its vegetable variant, tomato in its product line.
This juices contain 100 percent fruit juice. Real has no additives artificial
flavour, colour or preservatives.
The fruit juice has a self life of six months and does not need refrigeration at
the retail end. The Juices are available both in sweetened and unsweetened
form.
Real fruit juices were available and packed in Nepal in 500ml and llitre
tetrapack, Prevaiously it was available in elopack. To overcome this hindrance,
Dabur India tied up with Godrej Foods regarding the packaging of Real, and
now Real is available in tetrapacks of 200ml, 250ml, 500ml, l litre which are
tapped at the top for easy handling. The market share of Real juices account for
35% & enjoying the Privilege of becoming Mkt leader.
79
FINDINGS :-
In terms of variety and flavour, Real offers a multiflavoured variety. Also,
Indians are known to have a sweet tooth, Real juices are available in sweetened
flavour also. Real provides naturally sweet and artificially sweetened juices- a
big plus for the Real brand. Also now, Real fruit juices are available at every
hook and corner.
Elopacks were introduced by Real to ensure good juice quality but as tetrapacks
are preferred and now Real juices are packed in tetrapacks keeping the quality
and easy handling, so as for now, Real juices are available in tetrapacks of
200ml, 500ml and l litre.
80
PRICE
FACTS
Brand Flavours 200ml 250 ml 500 ml 1 litre
REAL
Orange
(sweetened
Unsweetened)
13 - Rs 35 Rs 60
FRUIT
Mango
(Sw and
Unsw)
Rs 10 - Rs 35 Rs 60
JUICES
Pineapple
(Sw and
Unsw)
- - Rs 35 Rs 60
Mix Fruit
Juice (Sw and
Unsw)
- - Rs 35 Rs 68
81
Tomato
(Sw and
Unsw
- -
Rs 35 Rs 60
FINDINGS:-
Real, multi flavoured brands has put its different flavours under different price
tag keeping in mind the preferred tastes of Indian consumer. The sweetened
and unsweetened juice varieties are priced same.
Since Real is fighting its battle not just against its immediate competitor
Tropicana but also against the established Frooti, so the prices for orange and
mango juices are in a competitive range and the other juices are priced a higher
than that of orange and mango juices keeping their novelty and preferences of
Indian consumer in mind. Last year, Real launched its festive carton of four 500
ml packs (2 oranges, 1 mixed and 1 tomato) priced at Rs. 90. This year Real
launched a gift pack of four 500ml packs (mango, orange, pineapple and mixed
fruit juices) priced at Rs. 105. Also, Real has launched a scheme of Buy two
orange juice pack of 250ml and save Rs. 8’. The company believe that once the
consumer try the brands at slashed price, the brands would gain peak sales year
after year. However, the company failed to understand that consumer in general
are no longer brand loyal and are always hunting for “value of money”. In order
to steal the show from aerated, non-alcoholic fruit drinks, it is imperative that
82
the company try and increase profits by increasing sales volume and reaching
economy of scale and not by increasing price tag.
PLACE
The Facts:-
Real is aimed at teenagers, young kids, wives, mother and family people.
Initially, when Real Fruit juices were launched, they were sparsely available.
Positioned as an up market brand, it was mostly available in mid-up market
outlets. The absence of small, convenient packs made Real less discrete in a
Premises outlets like college canteens and roadside stores. To make matters
worse in-transit damages to the packs during carton handling earned the brand a
bad name initially. But realising their mistake and after loosing a large chunk of
its market share to its competitor, the packing of Real was changed from
elopackes to tetrapacks, and the distribution channel was made more efficient.
The efficiency of distribution is such, that now Real fruit juices are available
every where.
FINDINGS:-
Real has done well to elaborate their consumer segment from kids, teenagers to
young adults and family people, surprisingly the sales has not risen
exponentially. In today’s buyer’s market, if one brand is not available, the
second one would conveniently takes its place. Product differentiation and
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eventually brand loyalty is continuously diminishing in the competitive market
of today. As a result, services especially as that of distribution and logistics
gains crucial importance. So, initially Real went off the shelves due to the slack
distribution network and then in August, after relaunching it again in tetrapacks
and making it available at every nook and corner, it has gained momentum
substantially.
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PROMOTION
THE FACTS:-
Real : ‘Do you believe in real love? There’s nothing artificial about it’
The essence of Real’s promotional work is ‘real’. To the up market housewife,
it is posed as a convenient pack full of nutritional value. Though considered as a
premium product, because of its price competitiveness, it is being pitched
against roadside juicewalls. Completely hygienic and ‘value for money’ are the
messages being sent across. Real, barring a few advertising spots has not really
advertised much. But all this is set to change this year with and advertising
budget of about Rs. 1 crore strategy is being worked out with door to door sales
and sample promos. To add variety Real now even comes in blue packs,
equipped with screw back-ups.
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FINDINGS:-
When a company faces stiff competition form the other. It is but impossible for
the company to disregard promotion. Regarding the promotional effort, Real
poses a sedate and premium image. The packaging in itself speaks a lot about
the consumers being targeted. Packaging plays a very important role in
promoting the product. Availability of Real fruit juice in blue tetrapacks with
screw back up have tremendously promoted the product and also point of
purchase how help in impulse buy decisions. To promote fruit juices a gift pack
of four 500ml packs (mango, orange, pineapple and mixed fruit juice) are
launched at a price of Rs. 105. Real has also launched a scheme of “Buy 2
orange packs of 250ml and save Rs. 8” have really promoted the product.
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THE MARKETING MIX
PRODUCT (HOMEMADE)
FACTS:-
The Homemade range of Pastes includes Lemoneez, Garlic, Ginger, Mustard,
Garlic ginger mix, Tamarind, Capsico Red & Capsico green.
The Pastes contain 85% Natural ingredient with additives artificial flavour,
colour or Preservatives.
Home mades has a self life of 6 months & does not need refrigeration at the
retail end Home mades are & in tetrapack form & available in 50% (T.P.), 200g
& 250g.
FINDINGS:-
In terms of variety & flavour, Real offers a multi flavoured variety. Also
Indians are known for eating delicious foods. In provides artificial taste- a big
Plus for Homemade brand.
Bottle, Pack & Tetra pack were introduced by Homemade to ensure goods
quality.
PRICE
FINDING:-
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Homemade, multiflavoured brands has Put its different flavours under different
price tags keeping in mind the preferred tastes of Indian Consumer.
As Homemade is a new concept and Dabur was Ist to launch Cooking Paste by
the name of Homemade, Prices were kept low as Garlic/ Ginger mix 50g (T.P.)
is priced at Rs. 5 Homemade 50g (T.P.) was given free with 250g Dabur Honey
as Company believe that once consumers try the brands at slashed price, The
brand would gain Peak sales year after year.
PLACE
Homemade is aimed at House wives & mothers. Initially when Homemade
cooking Paste were launched, they were sparsely available Positioned as an up
Market, brand it was mostly available in mid up Mkt., brand it was mostly
available in mid up Mkt outlets. The Packaging of Homemade was changed
from simple pack to tetrapacks & the distribution channel was made more
efficient. The efficiency of distribution is such, that now Dabur Homemade
available everywhere.
FINDINGS:-
Homemade has done well the market the market despite the fact that it is a new
concept for the people to digest it. Homemade sales are increasing every year
and its distribution network becomes strong. Now it is available at every nook
& corner, it has gained momentum substantially.
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PROMOTION
HOMEMADE:- Silwatte Ka Jaadu.
The essance of Homemade’s Promotional work is Natural ie, Convenient Pack
full of nutritional value. Prices were kept less as it is a new concept and Dabur
is the only Indian Company which is manufacturing cooking pastes. Completely
hygienic & Taste of nature are the messages being sent across. To add Variety
Homemade comes in bottle, Pack & Tetrapacks.
As in India People prefer to go for fresh things and there is easy availability of
these food products. As it is a new concept and to promote Homemade. T.P of
Rs. 5 were given free with other Dabur products from time to time.
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LIMITATIONS
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LIMITATIONS
1. The retailers distributors & wholesales visited by me were
helpful but initially they were reluctant to provide any information such
as their monthly sales of or personal information budgets were not
provided by them, so secondary data was seeked.
2. The secondary data collected might consist of manipulations, which
might have given bias in the result.
3. The lack of experience in preparing the project report.
4. Lack of experience in drafting the questionnaire.
5. Lack of knowledge on the part of the respondents regarding the subject
matter.
6. Survey results may be prone to sampling errors.
7. Lack of time as time to visit retailers, distributors & wholesalers is done
mainly in afternoon.
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RECOMMENDATION
AND
CONCLUSION
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RECOMMENDATIONS
1. As the products analysed belong to the cooking pastes and fruit juices
segment, stringent quality management is necessary at each and every
stage of production, packaging and distribution.
2. The message of the nutrition value and the quality in
hygiene aspects should be put across on tetrapacks and
bottles.
3. A common Indian is aware of soft drinks and even fruit drinks but least of
all of fruit juices, so what is therefore required is extensive promotion for
Real Juices.
4. Real fruit juices has opened the gates for vegetable juices, by introducing-
Tomato variants, other vegetable flavours such as that of carrot can also
be introduced- which will definitely appeal to health and hygiene
conscious consumers.
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CONCLUSIONS
The juice Industry is yet to capture the beverage market in full swing. Aerated
soft drink followed by fruit drinks dominate the market. The consumer’s
patriotic love for tea and coffee is unfared. Juices 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 Real has hit off ratherwell with the
masses. Real 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 Real 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 Real and Homemade brand .The brands such
as that of ‘Splash’ by Nestle, Safal with its ‘Guavaand Mango flavour, Coca-
Cola’s ‘Minute- made’ and also US food giantssDel Monte are ready to hit the
juice market very soon.
Homemade cooking Pastes has no major competition except an Australian
Product Tobasco. As Cooking Paste is a new product so people are not able to
digest it yet Dabur is getting 8 crores from Homemades in which Ginger garlic
mix accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .
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As the strategies of the companies keeps on changing, be it in juice industry or
soft drink 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 real Juice 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 Real brand so that customers of other Juice brand should
switch from other brand to Real brand .
As Homemade 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 marget should use the homemade and adopt it
in making daily food thereby increasing the market share of Homemades.
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BIBLIOGRAPHY
TITLE SOURCE
The Juices to go places Business India
Boom in the times of Business World
Gloom
Fruit of the Loom Corporate Dossier,
The Economic Times
Body Coolants Pioneer
Fruits of Labour Financial Express
A Masti Swing The Economic Times
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