“MARKETING STRATEGIES OF DABUR”55

7/29/2019 MARKETING STRATEGIES OF DABUR55

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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 producers 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 2009-2010 , 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.

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THEORETICAL

CONCEPT

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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

McDonnells, 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.

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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 ones 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

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fulfillment of needs 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 customers wants will be succeeded in their attempts. So

among the companies involved in the competition , the one which understand

the customers 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.

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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 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

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question was called Dabur 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, Daburs 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, FIIs and

the public. It issued bonus shares to existing shareholders in the ratio of 4:1.

Together, this will hike the companys paid up capital from Rs 4.56 crores to

Rs 28.47 crores. In order to expand internal sources are no enough.

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Traditionally 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.

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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 Daburs 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 1990s, 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.

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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:-

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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 Daburs 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 diversifications, specially in foods and

cosmetics, is all set to build no that franchise.

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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 Daburs inherited business is that the

group hopes to leverage its considerable brand equity. Last year, more than

70% of the groups 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.

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Making it happen is a spate of tie-ups, theres excelsior Foods, a 60:10

venture with the $ 500 million Osem, Isarels 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

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 groups 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 Daburs brand

equity will give us a unique position.

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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 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. Buamans 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. Daburs 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.

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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.

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 Daburs 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:-

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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.

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.

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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

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 Daburs 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

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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 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,

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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

Healthcare products and family products brands contribute 35% of Daburs

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.

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The recent past has spawned a unique economic era. Over the century of

presence against the background of varying economic conditions, has

strengthened Daburs 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

Daburs corporate philosophy.

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 tomorrows market with yesterday process. Daburs

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 Daburs, though they continue to

be inspired by ancient wisdom. Dabur uses today technology to deliver it in

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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, Daburs 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.

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

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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 Daburs 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 customers and has tended the nature that provides raw material for the

companys 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

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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- dadis 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

Daburs 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 companys

positioning. From sedate endorsements from filmstars and rishis.

Daburs 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.

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Indians have become more aware of their rights and new generation refuses

to buy brands just because it is dadajis favourite. It needs more valid reasons

to make a choice. Daburs new advertising style gives them valid reasons.

The campaigns are intended to give better discounting on bourses. The

intense campaigns are a part of Daburs 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.

Daburs 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.

DISTRIBUTION CHANNEL

Dabur commenced operations in 1984 and is today a multilocational,

multiproduct enterprise. The company has major interests in health and

beauty care.

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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

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.

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Dabur has one of Indias 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 Daburs products are range of exotic pastes and

packed fruit juice were essentially new concepts which consumers were not

familiar with, in branded form at least, in this country.CEO G.C. Burmans

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

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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 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

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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.

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OBJECTIVES OF

THE STUDY

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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 MBA 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.

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COMPANY

PROFILE

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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

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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

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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

Division also works for promotion of Ayurveda through organised

community of traditional practitioners and developing fresh batches of

students

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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.

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

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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;

A special herbal health care and personal care range successfully

selling in markets of the Middle East, Far East and several European

countries.

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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.

DABUR GROUP

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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

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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.

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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

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Company has gone a long way in popularising and making easily available a

whole range of products based on the traditional science of Ayurveda. And it

has set very high standards in developing products and processes that meet

stringent quality norms. As it grows even further, Dabur will continue to

mark up on major milestones along the way, setting the road for others to

follow.

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of

specialisation. It is the first Company to provide health care through

scientifically tested and automated production of formulations based on

our traditional science.

1930 - Automation and upgradation of Ayurvedic products manufacturing

initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda,

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with the launch of Dabur Amla Hair Oil. So popular is the product that it

becomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products

continues. The ancient restorative Chyawanprash is launched in packaged

form, and becomes the first branded Chyawanprash in India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment

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

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

medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun

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

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Dabur captures the imagination of young Indian consumers with the launch

ofReal Fruit Juices - a new concept in the Indian foods market. The first

local brand of 100% pure natural fruit juices made to international standards,

Real becomes the fastest growing and largest selling brand in the country.

1998 - Burman family hands over management of the company to

professionals

2000 - The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of

Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a

small beginning based on traditional health care. To a commanding position

amongst an august league of large corporate businesses.

2001 - Super specialty drugs

With the setting up of Dabur Oncology's sterile cytotoxic facility, the

Company gains entry into the highly specialised area of cancer therapy.

The state-of-the-art plant and laboratory in the 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

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Maintaining global standards

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

Dabur became the first Ayurvedic products company to get ISO 9002

certification.

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

Add: Balance in profit & loss account

b/f

81.12 66.12

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From the previous yr

- 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

Corporate tax on Dividend 9.77 7.34

Balance carried over to Balance sheet 125.23 81.12

TOTAL 231.74 169.76

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RESEARCH

METHODOLOGY

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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.

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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

Delhi.

2. Sample size for retailers were 40 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.

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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.

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MARKETING

STRATEGY

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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

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problem 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 Daburs Real fruit

juices have emerged as successful brands, signifying the importance of brand

building in the fruit processing industry.

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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

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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

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enter into this market and hatch the eggs of the golden goose, Indian juice

market.

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 Ps 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.

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Its variables are :-

- Product mix and product line

- 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.


- 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.


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- Pricing policies, levels of margins, discount and rebates.

- Terms of delivery, payment terms, credit terms and installments Facilities.

- Resale and price maintainence

4) Promotion means activities that communicate the merits of the product and

persuades the target customers to buy it.


- 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 companys marketing.

objectives by delivering values to consumers. The marketing mix constitutes

the companys 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.

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GRAPHICAL

PRESENTATION

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PRESENTATION OF DATA

CONSUMERS ANALYSIS

DABUR REAL JUICES

1. People Drinking Fruit Juices

Yes

100%

No

0%

2. Brand Awareness

82%

4%

19%

11%7%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Ad. Pos te r Shopk ee pe r Frie nds Ne ighbours Othe rs

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3. Category of Real Juice Consumer Mostly Buys

67%

52%

36%

43%

13%

0%

10%

20%

30%

40%

50%

60%

70%

Mango Orange Pineapple Mix Tomatto

4. Seasonal Consumption of Real Juice

Summer

83%

Winter

4%

Constant13%

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5. Consumption of Real Juice if there will be slight increase in Price &

Increase in quality

High

37%

Low

16%

Constant47%

6. Customer Expectation from Dabur by exemption of excise Duty.

Price Benefit

21%

Quality Benefit

43%

Mix of both

Price &Quality

36%

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7. Consumption of Real Juice if there will be increase in quality and

slight decrease in price.

High

71%

Low0%

Constant

29%

8. Will discount influence customers to leave Dabur & use other

Juice knowing Real Juice is better.

Yes

27%

No

73%

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CONSUMERS ANALYSIS

DABUR HOMEMADE COOKING PASTES

1. Use of Cooking Paste to make food delicious

Yes

79%

No

21%

2. Recall of Dabur Homemade Cooking Pastes

62%

6%

47%

14%11%

3%

0%

10%

20%

30%

40%

50%

60%

70%

Ad.

Posters

Shopkeepers

Friends

Neighbours

Others

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3. Category of Paste Consumer Buy.

74%

36%41%

87%

9% 11% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Lemoneez

Garlic

Ginger

Garlic/Ginger

Tamarind

CapsicoRed

CapsicoGreen

4 . Customer expectation from Dabur by exemption of excise duty.

Price Benefit

57%Quality Benefit

17%

Mix of both

Price & Quality

26%

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5. Consumer of Homemade if there will be slight increase in Price &

increase in quality

High

16%

Low

43%

Constant

41%

6. Consumption of Homemade if there will be increase in quality &

slight decrease in Price

High

34%

Low

0%

Constant

66%

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7. Do discounts influence customers to leave Dabur & use other Paste

Knowing Homemade is better

Yes

21%

No

79%

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RETAILERS ANALYSIS

DABUR REAL JUICE

1) Stocking of Real Juice by the Retailers

Yes

82%

No

18%

2) Purchase of Juice Type

Real Juice

44%

Tropicana

32%

Others

24%

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3) Stocking of Real Juice Over the Past Year

Increased

77%

Remined the

same

23%

Decreased

0%

4) Reasons for stocking Dabur Real Juice

Higher trade

margins

49%

Consumer ask

for it

43%

Promotional

Schemes

8%

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5) Any effect of increase in Price in real Juice

Yes

17%

No

83%

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RETAILER ANALYSIS

DABUR HOME MADE

1) Stocking of Homemade by the retailer

Yes

63%

No

37%

2) Purchase of Cooking Paste

DaburHomemade

91%

Others

5%Locally made,

Unbranded

4%

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3) Stocking of Dabur homemade cooking Paste over the past year.

Increased59%

Decreased

0%

Remained the

same

41%

Q.4. Reasons for stocking Dabur Homemade

Higher trade

margins

42%

Consumer ask

for IT

39%

Natural brands

available

15%

Schemes

4%

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5) Any effect of Budget

Yes

16%

No

84%

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SWOT

ANALYSIS

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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

Consumers perception towards Dabur as a pharmaceutical company

Perishable product

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Stringent quality management

High investment required

OPPORTUNITIES

Growing stage- sunrise industry

Changing consumer habits

New flavours especially vegetables

Export potential

THREATS

Entry barriers not high

Competition from MNCs

Competition from non-alcoholic beverage market.

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FINDINGS

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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.

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

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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.

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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

Tomato

(Sw and Unsw - -

Rs 35 Rs 60

FINDINGS:-

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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 the company try and increase

profits by increasing sales volume and reaching economy of scale and not by

increasing price tag.

PLACE

The Facts:-

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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 todays buyers market, if one brand is not available, the

second one would conveniently takes its place. Product differentiation and

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

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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? Theres nothing artificial about it

The essence of Reals 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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HOME MADE

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.

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.

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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 Homemades 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

consumers 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) mark

Documents

“MARKETING STRATEGIES OF DABUR”55