Rpr Final Report

7/30/2019 Rpr Final Report

1/70

INTRODUCTION

Dr. S.K. Burman lays the foundation of what is today known as Dabur India

Limited. Starting from a small shop in Calcutta, he began a direct mailing

system to send his medicines to even the smallest of village in Bengal. The

brand name is derived from the words Dafor Daktar or doctor and

burfromBurman.

The principal activities of the group are manufacturing of natural/herbal and

ayurvedic product, healthcare and food product and pharmaceuticals. The

Group export its products to middle-east and other countries which

accounted for 9% of sale .Consumer goods accounted for 70% of 2009 gross

revenues; Pharmaceuticals products, 12%;Food products, 6% Ayurvedic

products, 6%; and other, 6%.

The founder S.K BURMAN was a physician who brought ayurvedic

medicines to the ailingmasses of Bengal. Dabur commenced operation in

1884 and is today a multinational multi-product enterprise. The company has

major interest in health and beauty care.

1


2/70

Dabur is a leader in ayurveda, the traditional Indian health care system. The

company manufacturers 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 12 manufacturing plants in India, Nepal and Egypt. Dabur

products are also manufactured in Dubai. It has a transactional network of 19

offices serving both rural and urban markets in India. The company has sales

and marketing offices in Dubai and London.

Products are available over 50 countries. It has collaborated with leaders in

their fields to set up joint ventures in India. The joint ventures are with

Agrolimen of Spain, general Deconfeteria India ltd., manufactures

confectioneries. the joint venture with Bongrain of France, Dabur has

collaborated with Osem of Israel to manufacture bakery specialties & other

food products.

Consumer attitudes defined as the decision process and physical activity

individuals engage in when evaluating, acquiring using or disposing of

goods and services. It also refers to the behavior that consumer displays in

searching for purchasing, using, evaluating and disposing off products and

services that they aspect will satisfy their needs. An attitude is a behavioral

disposition which is part of the structure of human perception. Trained is

2


3/70

offers a most understood definition of attitude when he says An attitude is

an idea charged with emotion which predisposes a class of action ton a

particular class of social situation .Any person, product or creation of

person or social event can function as a social object.

On the basis of above definition of attitude, we can say that a person can

have attitudes towards various brands of products and services. Attitudes are

generally conceived as having three components.

1- Cognitive- a person `s belief about an object.

2- Effective a persons feeling of like or dislike concerning an object.

3- Behavioral-action tendencies towards an object It includes the study

of what they buy, why they buy, where they buy it, how often they buy

and how often they use it. As marketers and future marketers, it is

important for us to recognize why and how individuals make their

consumption decisions, so that we can make better strategic decisions.

Marketers who understand consumer behavior have great competitive

advantage in the market place.

To better meet the need of specific group of consumers, most marketers

adopt the policy of market segmentation, which calls for the division of their

3


4/70

total potential markets into smaller, homogeneous segments for which they

can design specific products. They also adopt new promotional techniques to

vary the image of the product so that they will be perceived as better

fulfilling the specific needs of certain target segments- a process now known

as positioning.

Consumer attitude is influenced by environment like culture, subculture, and

social groups like family. It is influenced by personal influences, personality

and attitudes.

1. It has been recognized that cultures that influence consumers. The

implication is that although all customers may be biological

similar, all over the world, what they value and how they act differ

according to their cultural background. The culture is defined as

that complex that includes knowledge, belief, art, law, custom and

any other capabilities and habits acquired by man as a member of

society.

2. The marketers can distinguish more homogeneous sub-groups with

in the heterogeneous national society. We refer to these groups as

4


5/70

subcultures. The marketers must understand who is the most

relevant subcultures for their particular products and services by

knowing the characteristics and behavioral patterns they are in a

better position to refine the marketing risk.

3. It is defined as a group consisting in a number of people who have

approximately equal position in a society. Product choice and

usage among the social groups. Shopping behavior also varies by

social class.

4. A group consists of people who have a sense of interaction with

each other. Marketers therefore help individuals play their roles by

providing the right cost and props to be used in gaining acceptance

by some group.

5. The family is both a primary and a reference group. Marketers

need to understand the nature of the familys influence on its

members and the way in which purchase decisions are made by the

members. Individuals influence each others behavior as

5


6/70

consumers. Word of mouth is an oral-communication it is actually

a subset of personal influence. Personal influence is necessarily

dependant upon the process of communication. Consumer behavior

is said to be largely depending on the situation present at that time.

The people shop when need to purchase something. There can be both

personal and social motives which influence consumer shopping activities.

People can do shopping after looking at window displays also.

Brands that seek to improve both in getting brand users and in increasing

their loyalty. Brand loyalty is a challenging goal each marketer seeks to

attain. Glucose has got its brand name as awhole. People drink it for taste as

well as a energy drink. It is a product under food division. Many factors

affect its purchasing like you have been advised to to drink a energy drink so

you consume it for energy only, someone told you that it is good in taste

then you consume it for taste.

6


7/70

FMCG Concept and Definition:

The term FMCG (fast moving consumer goods), although popular and

frequently used does not have a standard definition and is generally used in

India to refer to products of everyday use. Conceptually, however, the term

refers to relatively fast moving items that are used directly by the consumer.

Thus, a significant gap exists between the general use and the conceptual

meaning of the term FMCG.

Further, difficulties crop up when attempts to devise a definition for FMCG.

The problem arises because the concept has a retail orientation and

distinguishes between consumer products on the basis of how quickly they

move at the retailers shelves. The moot question therefore, is what industry

turnaround threshold should be for the item to qualify as an FMCG. Should

the turnaround happen daily, weekly, or monthly?

One of the factors on which the turnaround depends is the purchase cycle.

However, the purchase cycle for the same product tend to vary across

population segments. Many low-income households are forced to buy

certain products more frequently because of lack of liquidity and storage

space while relatively high-income households buy the same products more

infrequently. Similarly, the purchase cycle also tends to vary because of

cultural factors. Most Indians, typically, prefer fresh food articles and

7


8/70

therefore to buy relatively small quantities more frequently. This is in sharp

contrast with what happens in most western countries, where the practice of

buying and socking foods for relatively longer period is more prevalent.

Thus, should the inventory turnaround threshold be universal, or should it

allow for income, cultural and behavioral nuances?

Advertisements and sales promotion convey brand differentiation and this

may be important in several categories, which consist of several brands. In

FMCG products like tea, coffee and detergents.The term advertisinig is

derived from the latin word adventure which means to turn thokers to

wards attention every piece of advertising turns the attention of the readers

or the listeners or the viewers or the onlookers towards or a service or an

idea therefore, it can be said that any thing that turns the attention to an

article or a service or an idea might be well called as advertising.

Advertising is any paid form of non personal presentation of ideas goals or

sevices by an identified sponsor. Advertising and sales promotion both are

the methods of promotion mix and are very effective in maximizing the sale

of FMCG products.

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG) are products that have a quick turnover and relatively low

cost. Consumers generally put less thought into the purchase of FMCG than

8


9/70

they do for other products. The Indian FMCG industry witnessed significant

changes through the 1990s. Many players had been facing several problems

on account of increased competition from small and regional players and

from slow growth across its various product categories. As a result, most of

the companies were forced to revamp their product, marketing, distribution

and customer service strategies to strengthen their position in the market. By

the turn of the 20th century, the face of the Indian FMCG industry had

changed significantly. With the liberalization and growth of the Indian

economy, the Indian customer witnessed an increasing exposure to new

domestic and foreign products through different media, such as television

and the Internet. Apart from this, social changes such as increase in the

number of nuclear families and the growing number of working couples

resulting in increased spending power also contributed to the increase in the

Indian consumers personal consumption. The realization of the customer's

growing awareness and the need to meet changing requirements and

preferences on account of changing lifestyles required the FMCG producing

companies to formulate customer-centric strategies. These changes had a

positive impact, leading to the rapid growth in the FMCG industry. Increased

availability of retail space, rapid urbanization, and qualified manpower also

boosted the growth of the organized retailing sector. HUL led the way in

9


10/70

revolutionizing the product, market, distribution and service formats of the

FMCG industry by focusing on rural markets, direct distribution, creating

new product, distribution and service formats. The FMCG sector also

received a boost by government led initiatives in the 2003 budget such as the

setting up of excise free zones in various parts of the country that witnessed

firms moving away from outsourcing to manufacturing by investing in the

zones. Though the absolute profit made on FMCG products is relatively

small, they generally sell in large numbers and so the cumulative profit on

such products can be large. Unlike some industries, such as automobiles,

computers, and airlines, FMCG does not suffer from mass layoffs every time

the economy starts to dip. A person may put off buying a car but he will not

put off having his dinner. Unlike other economy sectors, FMCG share float

in a steady manner irrespective of global market dip, because they generally

satisfy rather fundamental, as opposed to luxurious needs. The FMCG

sector, which is growing at the rate of 9% is the fourth largest sector in the

Indian Economy and is worth Rs.93000 crore. The main contributor, making

up 32% of the sector, is the South Indian region. It is predicted that by the

end of 2010, the FMCG sector will be worth Rs.143000 crore. The sector

being one of the biggest sectors of the Indian Economy provides up to 4

million jobs.

10


11/70

Fast moving consumer goods players Dabur, HUL are among the major

companies found to violate Advertising Standards Council of India code

during the first quarter of the current calendar year.

ASCI had taken action against 16 advertising campaigns by different

companies, of which seven were asked to withdraw, while nine were asked

to modify for violation of the codes.

The council asked Dabur India to discontinue its Red Toothpaste commercial

after the company was unable to substantiate claims made in a television

commercial, in which it said specific indgredients in the product could give

the consumer strong teeth.

Hindustan Lever's Clinic All Clear, which is now being endorsed by

Bollywood couple Bipasha Basu and John Abraham, was also on the list of

defaulters.

The company was found guilty of 'false and misleading' campaigns in its

hoardings and radio commercials. HUL had projected the shampoo as a

solution to hair fall through its tag-line BAAL GIRNEY KA SAWAAL HI

NAHI (no question of hair fall). ASCI ordered HUL to remove the

hoardings and radio commercials. This time around, several FMCG

companies have come under ASCI's (Advertising Standards Council of

India) scanner as complaints against their ads have been upheld by the

11


12/70

Consumer Complaints Council for the period between January and March

this year.

Dabur, Hindustan Lever, Johnson & Johnson and Colgate Palmolive are the

few FMCG majors who have had to withdraw their ads during this period.

For Dabur India, it was its Dabur Red Toothpaste; its pack claimed `strong

teeth.' The TV commercial claimed `Get strong teeth from Dabur Red

Toothpaste which contains laung, pudina and tomar.'According to the

complaint made by a member of the dental profession, the ingredients

declared on the pack are not scientifically and clinically proved to provide

strong teeth. The claim is false and needs to be validated with clinically

proven data, said ASCI. The TV commercial has been discontinued. Assurce

is awaited from the advertiser on the modification of the promotion message

on the product pack, said the advertising standards watchdog. In the case of

HUL, the radio commercials for Clinic All Clear Hair Defense claim "Baal

girne ka sawaal nahi (question of hair fall does not arise)" was looked upon

commercials distort facts and are misleading consumers into believing that

Clinic All Clear stops hair fall. The ads from radio and hoardings have thus

been withdrawn.

12


13/70

As the claim relies on a survey conducted by TNS India, one needs to

scrutinise the survey design, methodology and questionnaire to check the

validity of the survey, study the actual findings and check whether the same

reflects in conclusion," ASCI stated. The TV commercial had been

discontinued from March this year. For Colgate Palmolive (India), it was its

Colgate Sensitive Toothbrush being positioned as the Dentists' No.1 choice,

which ASCI objected to.

"In the absence of a notation in the advertisement on the source supporting

this claim, the advertiser is required to substantiate the claim," read the

complaint. In this case, the ad has been discontinued and the advertiser has

assured appropriate modification in future use.

The study conducted in association with the assistance of Yahoo, MSN,

Lycos, and AOL combined a total of 200 FMCG online campaigns executed

across Europe. The aim of the study was to quantify the average impact that

European ad campaigns have on traditional branding metrics, and create

benchmarks for categories such as FMCG which has traditionally not

embraced the Internet as a key advertising medium.

The research methodology follows global industry standards set forth by

Dynamic Logic (1999) which surveys consumers in two categories;

13


14/70

campaign exposed and non-exposed. In total 160,000 individuals were

surveyed across Europe representing the two groups. The full 'funnel' of

branding metrics was surveyed; brands awareness, ad recall, message

association, brand favourability, and purchase intent.

The conclusion of the study found that all 5 branding metrics were positively

impacted. Similarly to other categories, FMCG brands which advertised

online had the highest impact across brand awareness (both aided and un-

aided) and brand favorability in line with market norms and mirroring

similar research from the US. Furthermore, it was found that effective

frequency across each of the brand metrics was increasing even at 10+

average exposures, building the case against perceived 'ad burnout' which

traditionally is thought to be at much lower average exposures levels. Hence

FMCG branding metrics continue to increase with additional exposures.

14


15/70

DABUR FINANCE LIMITED

Dabur finance ltd. is a well diversified non-banking finance company

offering a full array of commercial finance & services. It focuses on

transparency, commitment and high quality. Set up in 1992, DFL derives its

skills and belief from its parent from its parent organization, Dabur India ltd.

It is involved in issue management, portfolio management, leasing and

finance.

ECO FRIENDLY DABUR

Dabur is committed to maintain the ecological balance. The companys

afforestation programs at planting medical herbs, plants and trees in the

Himalayan range. Extending into Nepal this exercise is actively supported

by an in-house tissue culture programs.

CORPORATE OBJECTIVE

Corporate goals for the next four years. This journey has been called the

STARS PROGRAMME.

The specific goals are:

15


16/70

- Sales turnover of Rs. 2000 crs. In 2009-10.

- Profit after tax Rs. 136 crs. In 2009-10.

- MAC (Most admired FMCG Company) within the top 5.

- QUALITY POLICY

The management is fully committed to quality and ensures all resources to

accomplish this task.

QUALITY OBJECTIVES

THE COMPANYS QUALITY OBJECTIVES ARE AS

FOLLOWS:

- To focus on its customers and successfully meet their needs and

requirements.

- To manufacture effective health care products at competitive prices

and to improve the quality of life of the common masses.

- To implement system to ensure prevention of errors rather than

detection of errors.

16


17/70

HISTORY OF COMPANY

MILESTONESTO 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 popularizing 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 specializations. It is the

first Company to provide health care through scientifically tested and

automated production of formulations based on our traditional science.

17


18/70

1930 - Automation and upgradation of Ayurvedic products manufacturing

initiated

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

1940 - Personal care through Ayurveda Dabur introduces Indian

consumers to personal care through Ayurveda, with the launch of Dabur

Amla Hair Oil. So popular is the product that it becomes the largest

selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack Widening the

popularity and usage of traditional Ayurvedic products continues. The

ancient restorative Chyawanprash is launched in packaged form, and

becomes the first branded Chyawanprash in India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment 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.

18


19/70

1972 - Shifts base to Meerut 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

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

19


20/70

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 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

2004 - 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.

20


21/70

2005 - Super specialty drugs with the setting up of Dabur Oncology's

sterile Cytoxic facility, the Company gains entry into the highly

specialized 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.

2006 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs

64.4 crore

2007 - Dabur demerges Pharmaceuticals business

Maintaining global standards

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

Dabur became the first Ayurvedic products company to get ISO 9002

certification.

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

subsidiary of Dabur India, has set up fully automated greenhouses in Nepal.

This scientific landmark helps to produce saplings of rare medicinal plants

that are under threat of extinction due to ecological degradation.

21


22/70

PROMOTIONAL TOOLS

TYPES OF PROMOTIONAL TOOLS

Websites, CD ROM's, email, broadcasting, posters

Fast becoming the most flexible and dynamic media of all. Expensive and

challenging to originate but this is where all advertising and customer

communications are headed, because the advantages and cost-to-value

factors are so great. It's now perfectly feasible to produce all sales literature

and brochures, plus lots more besides, in user-friendly, inter-active digital

format. Conventional printed sales material are steadily becoming obsolete,

and in ten years time the printed brochure will be a real rarity.

Websites and CD ROM's share much of the same origination process and

therefore cost, and as more agencies develop skills in these areas, and as

production technology improves, costs of origination and production will

reduce to levels that will threaten to finish off the traditional print industry as

we know it.

Press and Public Relations (PR)

22


23/70

The press release is the most under-rated form of advertising. Why? Because

its free, and moreover press editorial is perceived by the audience to be true,

whereas advertising of all almost all other types is seen as oh no another

advert and therefore implies uncertainty or scepticism. Getting your

editorial printed for free is easier than you may think, and guidelines for

doing so follow in more detail later. TV and radio publicity works in the

same way, although more difficult to secure and control.

Direct Mail

This is the process of sending, your material (by itself or in a shared mailing

with other items) direct to the address of the potential customer. Components

of the process are a list, (your own data-base or names sourced elsewhere)

the item to be mailed, facility to stuff and address envelopes, and postal

charges, depending on the weight of the item. The last two stages are called

fulfillment. Direct Mail is generally used to generate a direct response

from the recipient. Response rates vary according primarily to the quality of

the list, (ie how 'targeted' it is in terms of your offer). More than 5% is

extremely good. Under 1%. is more common. Many mail order

organizations are very profitable at responses of less than 0.5%. Your own

database will typically produce a response of two or three times that of a list

23


24/70

sourced elsewhere. List prices vary enormously, from 25 up to several

hundreds of pounds per 1000, depending on volume, how specific the list is,

and how selective your profiling criteria are. You can also choose whether to

have the list on labels, or on a disk in a common spreadsheet or database

format.

These days it's very easy and highly cost-effective to do your own or

outsource a mail merge direct mail, campaign, using a word-processing

program in conjunction with the list of names and addresses on a

spreadsheet program. Guide price including printed material, list and

fulfillment is 500 per thousand. Acid test of the the viability is to assume

0.5% response (ie 5 per thousand) multiplied by the average contribution

(sales minus cost of goods or service sold) that you would expect per new

customer. If the answer is less than the cost of the campaign you have a good

justification to proceed.

24


25/70

Display advertising

The taking of advertising space in the editorial sections of magazines or

newspapers, as opposed to the classified sections, which are a less

expensive, and generally lower performing method. All significant

publications will be pleased to provide you with their Media Pack, which

gives full details of all the types of display advertising available, for how

much, together with lots of information about their readership profile and

circulation. If you are trying to generate a direct response from display

advertising you may need to feature a coupon of some kind. Otherwise

display advertising is concerned with image-building and creating

awareness. As with other advertising methods, the use of free telephone

numbers and Freepost addresses all increase response rates.

Brochures, leaflets and printed material

Brochures and leaflets can be used for a variety of purposes, and can be

distributed in different ways. A good printer can provide examples and

castings, and the easiest way to learn what works and what doesnt is to look

at other peoples material. The aim of a brochure is foremost to generate new

25


26/70

business through providing information in a way that appeals to the reader.

The acronym AIDA (attention interest desire action) should be the basis of

its design. Some brochures and leaflets are pleasing pieces of art, but they

dont achieve anything for the business, so avoid this trap. If you work with

a designer be sure to control any fanciful tendencies and keep to the point.

Too much spent on a brochure can give the impression that your business is

extravagant. Restrict expenditure to keep material fit for purpose, unless

your are targeting a market that expects to pay top prices.

Common (and therefore more cost-effective) European leaflet formats are

A3 folded to A4, A4, A5, A4 folded to A5, A4 three-fold (gate-fold).

However, printed advertising material can be very small indeed, so dont

automatically assume A4 format is most cost-effective. When producing

leaflets and brochures think about the way that they are to be distributed. If it

needs an envelope is there one to fit? If the material is required as an insert

is it acceptable to the publication? Is it to be available from a rack? Do you

want people to retain the material, so would credit-card size be more

appropriate?

There are thousands of different types of paper. Letterheads are usually

printed on to 90-100gsm (grams per square meter) cartridge, laid or bond. A

26


27/70

100gsm paper is adequate for single sided mono or color printing. 130gsm is

better for double- sided. 200gsm is minimum weight for a post card format.

250-300gsm is used for business cards. Heavier boards are usually measured

in microns rather than gsm because density affects weight more at these

gauges. Coated matt and gloss art papers are used for higher quality effects,

but add to cost. Various lamination processes add more quality and more

cost.

Full color printing uses the colors black, red, yellow and blue, and requires

a plate to be made for each color. Mono printing is black on white and

requires just one black plate. Each color can be tinted (ie applied less than

100% solid) to varying degrees across the print area, so with good design

even black and white printing can give a high quality effect. Conversely, a

poor design can make full color printing look cheap and nasty. If you want

something classier than black and white, two color printing can produce

amazing results, without the cost of going to full color. Each plate can cost

20 to 50, so you can see that a full color job could cost 200 before any

printing at all.

As a rule, printing costs reduce dramatically with volume. Mono (black and

white) print runs of less than 1,000 are very expensive, and less than 2,000

27


28/70

for color are prohibitive too. For quantities from one single copy up to the

low-hundreds, digital printing is a fast-developing technology that now

offers superb quality without need for plates. Expect digital printing to

become more cost-effective, more prevalent and competitive with

conventional lithographic printing as the capital cost of equipment reduces,

and the technology proliferates.

Loose and bound inserts

Inserts, in the form of leaflets, brochures, or other material, are provided by

the advertiser to the publication, to be sent out with the magazine or

newspaper. You have to produce the materials to be used as inserts which

incurs printing costs, and then pay the publication a charge for insertion,

usually between 25 and 100 per thousand. There is a big effect from

economies of scale. Charges vary according to weight of insert, how many

inserts per publication, volume, the narrowness of the circulation profile, and

how the publication is itself distributed. Response rates from inserts are

almost always lower than direct mail, particularly solos, but inserts are a

very flexible and cheap method of distributing an advert. Bound-in inserts

cost extra, require longer lead-times, and are favoured by some because they

28


29/70

dont fall out and consequently are seen by the entire readership, which is

two or three times greater than the circulation.

Large quantity leaflet drops without the need for envelopes or normal postal

charges can be arranged through the Royal Mail, so that your leaflet is

delivered at the same time as the normal post. Targeting, based on postcodes

and Census data, is possible to a basic degree, and the cost is inclusive in the

distribution charges. Royal Mail minimum charge is 500, which, for

example, would pay for distribution of 11,900 leaflets weighing no more

than 20g. This compares with a cost of over 2,300 for direct mail postage

charges, apart from envelopes and stuffing.

Other specialized household distributors provide similar services, often

piggy-backing on local newspaper deliveries; details can be obtained from

the Association of Household Distributors.

Posters sites (hoardings, taxi-cabs, buses)

For advertising considered as public information a variety of poster sites are

free to the advertiser, so it makes sense to use these freely, supported by

some record system so you keep them up-to-date and utilized. Other sites

vary according to nature and cost, from large roadside hoardings to buses,

29


30/70

taxis and sports grounds. Anywhere that people pass or gather in large

numbers is a potential poster site, and as with printed media, audience

profile information is available. New sites are being discovered and

exploited all the time, such as supermarket trolleys and floors, table napkins,

and even public conveniences, and the media extends now into continuous

video at post offices and petrol forecourts etc.

Local radio, TV cinema and the Internet

Other forms of targeted media advertising, and now TV and radio are

increasingly used by smaller local businesses, although tight geographical

targeting is obviously difficult. Cost of production can be a significant

factor.

Producing your own information and e-commerce on the Internet is now

viable for even very small businesses. For consumer businesses, the in on-

line shopping boom has begun, so don't get left behind.

All business-to-business organizations should now have a web presence too,

if only for PR and communications reasons.

Particular styles and origination are required for a good web site, and the

medium is no longer passive, so you need to think about integrating

30


31/70

promotion and advertising to attract people to your site. If you want more

information or down-to-earth solid business advice on the biggest can of

worms in the history of the world, then please get in touch. If you want

technical information on the really esoteric stuff like meta tags and search

engine rankings, then the best free source by far is at deadlock.com.

Guide books, Hand books and Newsletters

Publishing your own information material is potentially very effective, and

costs can be reduced by incorporating relevant supporting advertising from

other organizations wishing to be associated with your services and to target

your audience. Guidelines for Newsletters follow later.

Alternatively you can advertise in a relevant guide book produced by

another organisation. However, be careful to ascertain accurate details of

circulation and profile if considering small or unproven publications.

Open days and exhibitions

The advantage of personal contact is that you actually get to talk to your

potential customers, which dramatically increases the chances of getting

your message across. But there is a limit to how many people you can target

31
mailto:[email protected]://www.deadlock.com/mailto:[email protected]://www.deadlock.com/


32/70

and access using these methods. Costs of preparation and organisation can

be big, and are rarely transparent at the outset so beware.

BUSINESS PLANS AND MARKETING STRATEGY

A plan - a statement of intent - a calculated intention to organize effort and

resource to achieve an outcome - in this context a plan is in written form,

comprising explanation, justification and relevant numerical and financial

statistical data. In a business context a plan's numerical data - costs and

revenues - are normally scheduled over at least one trading year, broken

down weekly, monthly quarterly and cumulatively.

A business - an activity or entity, irrespective of size and autonomy, which is

engaged in an activity, normally the provision of products and/or services, to

produce commercial gain, extending to non-commercial organizations

whose aim may or may not be profit (hence why public service sector

schools and hospitals are in this context be referred to as 'businesses'.

Business plan - This is now rightly a very general and flexible term,

applicable to the planned activities and aims of any entity, individual group

or organization where effort is being converted into results, for example: a

32


33/70

small company; a large company; a corner shop; a local window-cleaning

business; a regional business; a multi-million pound multi-national

corporation; a charity; a school; a hospital; a local council; a government

agency or department; a joint-venture; a project within a business or

department; a business unit, division, or department within another

organization or company, a profit centre or cost centre within an an

organization or business; the responsibility of a team or group or an

individual. The business entity could also be a proposed start-up, a new

business development within an existing organization, a new joint-venture,

or any new organizational or business project which aims to convert action

into results. The extent to which a business plan includes costs and

overheads activities and resources (eg., production, research and

development, warehouse, storage, transport, distribution, wastage, shrinkage,

head office, training, bad debts, etc) depends on the needs of the business

and the purpose of the plan. Large 'executive-level' business plans therefore

look rather like a 'predictive profit and loss account', fully itemized down to

the 'bottom line'. Businesses plans written at business unit or departmental

level do not generally include financial data outside the department

concerned. Most business plans are in effect sales plans or marketing plans

or departmental plans, which form the main bias of this guide.

33


34/70

Strategy - originally a military term, in a business planning context

strategy/strategic means/pertains to why and how the plan will work, in

relation to all factors of influence upon the business entity and activity,

particularly including competitors (thus the use of a military combative

term), customers and demographics, technology and communications.

Marketing - believed by many to mean the same as advertising or sales

promotion, marketing actually means and covers everything from company

culture and positioning, through market research, new business/product

development, advertising and promotion, PR (public/press relations), and

arguably all of the sales functions as well. Marketing is the process by which

a business decides what it will sell, to whom, when and how, and then does

it.

Marketing plan - logically a plan which details what a business will sell, to

whom, when and how, implicitly including the business/marketing strategy.

The extent to which financial and commercial numerical data is included

depends on the needs of the business. The extent to which this details the

sales plan also depends on the needs of the business.

Sales - the transactions between the business and its customers whereby

services and/or products are provided in return for payment. Sales (sales

34


35/70

department/sales team) also describes the activities and resources that enable

this process, and sales also describes the revenues that the business derives

from the sales activities.

Sales plan - a plan describing, quantifying and phased over time, how the

the sales will be made and to whom. Some organizations interpret this to be

the same as a business plan or a marketing plan.

Business strategy originally a military term, in a business planning

context strategy/strategic means/pertains to why and how the plan will work,

in relation to all factors of influence upon the business entity and activity,

particularly including competitors (thus the use of a military combative

term), customers and demographics, technology and communications.

35


36/70

PRODUCT PROFILE

For persistent dandruff problem, Vatika Anti-Dandruff Shampoo is the

natural choice. This herbal treatment is completely safe and cures dandruff

from within. Enhancing your hairs natural beauty, without damaging or

making it dry.

Vatika Anti - Dandruff Shampoo uses the natural goodness of lemon and

henna. Cleaning and curing difficult dandruff, while conditioning the hair to

give it body and strength.

36


37/70

37


38/70

The natural shampoo that conditions from deep within, while gently

cleansing and nourishing your hair. Created by the Vatika Expert with a

perfect balance of natural ingredients like henna, green almonds and

Shikakai. Unlike chemical shampoos that are harsh, Vatika is mild on your

hair, leaving it soft, silky and radiant, with the gentle and caring touch of

nature.

38


39/70

OBJECTIVE OF STUDY

1. To study the consumer awareness of Dabur vatika shampoo.

2. To study the promotional strategy of Dabur vatika Shampoo.

3. To study the consumer satisfaction level of Dabur vatika

shampoo.

4. To study the sales distribution parameters in Dabur vatika

shampoo.

5. To study the consumer attitude in respect to Dabur vatika

shampoo.

39


40/70

LITERATURE REVIEW

40


41/70

LITERATURE REVIEW

Advertising is the only direct method which helps to reach masses of

potential buyers. Advertising, being dynamic, changes with changing

methods of distribution and consumption. In the present era of information

explosion and media influence, these advertisements play a major role in

changing the settled perception or thinking, which is otherwise called

attitude, of the consumer and also the consumption pattern of the society in

general. Thus, the impact leads to cultural and social changes to a great

extent. Why is there a need of advertising? Advertising is a way of

communicating information to the consumer which enables him or her to

compare and choose from the products and services available. Advertising is

the most economical means by which a manufacturer or an Institutional

body can communicate to an audience whether to sell a product or promote a

cause of social welfare. Essentials of Effective Advertisement-the writer

thinks that there are 4 important things for an advertisement to be effective.

They are importance of claim, believable, uniqueness and repetition. The

advertiser must constantly assess the situation to choose the right

environment and ideal time for an advertisement to be launched. Some of the

situations are as follows:-

When there is a favourable primary demand of particular product.

41


42/70

When there is a distinctive product differentiation from other competitive

brands.

When mass market is penetrated.

In order to ensure that the advertisements reach the target consumers in a

most effective way and gets right response from them, it has to be ensuring

that such advertisements are presented in the right way. The following steps

on the part of the consumer may ensure that the advertisements are on the

right track.

Getting attracted towards the advertisements.

Listening and observing the contents of the advertisements in full.

Continuous watching of the same over a period.

Comparing the advertisements of similar products.

Making a trial purchase as follow up activity.

Assessing the level of utility of the product individually.

Ascertaining the level of utility derived with other similar consumers.

In the article Dr. Alexander-- Told about a model which exemplifies the

attitude or response of a consumer to an advertisement.

42


43/70

RESEARCH METHODOLOGY

Research Methodology is a systematic way, which consists of series of

actions or steps necessary to effectively carry out research and the desired

sequencing of these steps. The marketing research is a process of involves a

number of inter-related activities, which overlap and do rigidly follow a

particicular sequence. It consists of the following steps

1. Formulating the objective of the study

2. Designing the methods of data collection

3. Selecting the sample plan

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings

RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a

particular study. A Research Design is the arrangement of conditions for

collection and analysis of the data in a manner that aims to combine

43


44/70

relevance to the research purpose with economy in procedure. Research

Design is broadly classified into three types as

1 Exploratory Research Design

2 Descriptive Research Design

3 Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with

describing the character tics of a particular individual, or of a group of

individual under study comes under Descriptive Research Design.

Descriptive Research Design: In this research design the objective of

study is clearly defined and has accurate method of measurement with a

clear cut definition of population which is to be studied.

FORMULATING THE RESEARCH PROBLEM

Two steps are involved in formulating the research problem:

1 Understanding the problem

2 Rephrasing the problem into meaningful terms from an analytical

point of view.

44


45/70

3.The training sessions are conducted in the beginning of training in

order to make us clear about the task provided and how to handle the

different situations.

PREPARING THE RESEARCH DESIGN

The research design is developed to collect the relevant information with

minimum of efforts, time and money.

Marketing Research Objectives:

1 To undertake a prior market study before doing owns research.

. To make an analysis on the basis of the results.

2 Type of Study: Descriptive.

3 Research Area: Ghaziabad.

4 Source of Information:Primary Data.

5 Data Collection Instrument: Questionnaires & Personal Interview.

6 Research Approach: Survey Method.

45


46/70

THE MARKET PLACE

The Rs. 525 Crore organization Vatika Shampoo market today has a

numbers of the homegrown brands like Ayur, Nyle & Chik who have

grabbed large share of Vatika Shampoo pie in their respective regions. Vatika

is planning to open 30 of its caf 100 parlous in the state of Meerut, Punjab

and Haryana. Vatika a market leader in yester years is already not to sure

how to gain back its lost ground and cut down its losses, there are many

more who are seeking entry to take and an early positioning in the market

that is expected to grow faster than any other Herbal products.Managing

branded parlour and shops chains may not be as difficult as managing chain

of Vatika Shampoo parlous as supply chain mechanism in case of Vatika

Shampoo is rather complex but nevertheless increasing supplies of Herbal in

pushing companies to develop the market for Herbal products. Vatika

Shampoo business in India, estimated at Rs.1200 Crore, till very recently

was drive by pushcarts selling Hindustan Levers Kwality Walls or the local

brands. Narulas Vatika Shampoo parlous came in vogue only after the arrival

of multinationals like Baskin Robins, super store, parlours and the most

recent good market value. Parlous have an edge over the rest, at least in the

urban market, which contributes the lions share to the industry. Baskin

Robbins had a tough building up its cold chain, the largest in India.

46


47/70

DATA ANALYSIS & INTERPRETATION

After data have been collected researcher turns to the task of analysis them.

The analysis of the task of closely related option such as establishment of

categories, the application of these calories to raw data through coding

tabulation and then drawing.

Statistical inferences

1) Coding

2) Editing

3) Tabulation

Coding operation is usually done at this stage through which the

categories of data was transfer into symbols that may be tabulated add

counted

Editing was the procedure that improves the quality of data for coding with

the stage was ready for tabulation

Tabulation was a part of the technical procedure where in the classified

data are put in the form of tables.

47


48/70

TABLE NO.1

0%

5%

10%

15%

20%

25%

30%

35%

40%

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

rajnagar

ghanta ghar

kavi nagar

48

Area of Survey No.Of Respondent

Rajnagar 35Ghantta Ghar 40

Kavi nagar 25

Total 100


49/70

PREFARANCE GIVEN BY RESPONDENT

TABLE NO.2

49

Brand No. of Respondent

Dabur 40

Nyle 25

Ayur 20

Chik 10

Other 5Total 100


50/70

0

0.05

0.1

0.15

0.20.25

0.3

0.35

0.4

Dabur

Nyle

Ayur

Chik

Other

3-D Column 6

50


51/70

Promotion by Vatika Shampoo Company

TABLE NO.3

51

Brand No. of Respondent Percentage

Dabur 40 31

Nyle 25 17Ayur 20 20

Chik 10 22

Other 5 10

Total 100 100


52/70

0%

5%

10%

15%20%

25%

30%

35%

40%


Dabur

Nyle

Ayur

Chik

Other

Suggestions given By RetailersTABLE NO.4

52

Suggestions No. of Respondent

Price Reduction 40

Increase Advertisement Spent 25

Taste Improvement 20

Distribution Improvement 10

Availability of Freezers 5

Total 100


53/70

0

5

1015

20

25

30

35

40


Price reduction

increase adv.spent

taste improvement

distribution impovement

availability of freezers

GRAPH.1

Market share of shampoo company

53

Brand No. of respondent

Dabur 40

Nyle 25

Ayur 20

Chik 10

Other 5

Total 100


54/70

0

5

10

15

20

25

30

35

40


Dbur

Nyle

Ayur

Chik

other

GRAPH.2

Availability of product

54


55/70

38%

12%17%

27%

6%

Dabur Nyle Ayur Chik Other

1 Dabur is present in 38% of the retailer surveyed.

2 Nyle is present in 12% of the retailer surveyed.

3 Ayur is present in 17% of the retailer surveyed.

4 Chik is present in 27% of the retailer surveyed.

5 Other is present in 8% of the retailer surveyed.

55


56/70

GRAPH.3

Preference by consumer

31%

17%20%

22%

10%


1 Dabur has liking of 31% among the consumers.

2 Nyle has liking of 17% among the consumers.

3 Ayur has liking of 20% among the consumers.

4 Chik has liking of 22% among the consumers.

5 Other has liking of 10% among the consumers.

56


57/70

GRAPH.4

On The Basis Of Distribution Channel

36%

18%

22%

17%

7%


1 36% retailer preferred the distribution channel of Dabur

2 18% retailer preferred the distribution channel of Nyle

3 22% retailer preferred the distribution channel of Ayur

4 17% retailer preferred the distribution channel of Chick

5 7% retailer preferred the distribution channel of Other

57


58/70

GRAPH.5

Promotion by shampoo company

35%

12%16%

31%

6%


1 Promotion strategies of Dabur are liked by 35% of retailer.

2 Promotion strategies of Nyle are liked by 12% of retailer.

3 Promotion strategies of Ayur are liked by 16% of retailer.

4 Promotion strategies of Chick are liked by 31% of retailer.

5 Promotion strategies of Other are liked by 6% of retailer.

GRAPH.6

58


59/70

Retailer suggestion

16%

35%

8%

22%

19%

Price reduction Increase advertisement spent

Quality improvement Distribution improvement

Availability of products

19% of retailer suggested for Availability of Freezers.

16% of retailer suggested for Price Reduction.

22% of retailer suggested for Distribution Improvement.

8% of retailer suggested for an improvement in taste.

35% of retailer suggested for increase in Advertisement.

FINDING

59


60/70

As regards outlet exclusivity, I found that the major manufacturers (Nyle and

Ayur) have entered into agreement with some retailer to stock only their

respective products, which has also adversely affected competition between

manufacturers and between the distributors.

Here is some of the finding that I came across as I surveyed the market.

1. An average Ghaziabad retailers is notorious and really very smart he is

hard to keep and the company has to make extra efforts to keep him

loyal.

2. The power outage was serious problem even in Ghaziabad the sub urban

areas like Rajnagar and the urban area like Sanjay Nagar were having

serious power outage which was again one reason why retailers were so

afraid of stocking up Vatika Shampoo.

3. The Vatika Shampoo market is very cost effective i.e. you need to be

good and cheap at the same time to make your product sell well.

4. The Vatika Shampoo business requires that the distribution network be

equally good besides there should be proper and timely delivery .

60


61/70

5. And also replacements should be timely done otherwise chances are that

the retailers would shy away from that particular brand.

6. The one reason why Nyle was able to stock its Vatika Shampoos in

Daburs freezers was because we provided replacement and they didnt.

7. The company has a very right policy of promoting itself hard at the

places where the youth actually hang out.

8. The company I found got the menus printed in city mall where young

people actually hang out this may promote company well and get it long

time loyalty from customers.

RECOMMENDATIONS

61


62/70

1. In considering the measures needed to remedy the adverse effects

identified our objective has been to establish a framework.

2. I which competition would be effective with as little ongoing

regulation as possible.

3. On distribution exclusivity, I recommend that other Vatika Shampoo

brands should be restricted from entering into any agreement or

arrangement for capacity .

4. Any good distribution channel , any retailer outlet used to stock

wrapped impulse Vatika Shampoo.

5. The company should make sure that it doesnt end up fighting with

other companies for the remaining freezer space .

6. the company should make sure that whichever market it enters it

should sanction enough money to fix freezers at least the shops where

the demand is good.

7. On outlet exclusivity, I recommend that the company make sure that

the retailer it invests on especially where the company gets the

pamphlets printed.

8. And also invests on the outlets fixing up big signboards and also

other acceseries like tables and chairs etc.

62


63/70

9. In that case the company should demand total loyalty and also fix up

certain target for that shop.

10. So that if the target is met the company further reward the retailer

with further discounts or margins.

11.On distribution, we consider remedies that would regulate the supply

by Dabur to independent wholesalers such as specifying the

minimum order range besides the distribution should also be perked

up.

12. the availability should be such that shortages ever occur besides care

must be taken that delivery be quick and that the Vatika Shampoo is

not loose or melted.

13.As far as the billings are concerned the company must take proper

care that billings be done accordingly.

14. Company has been right in addressing the top shops in town by

keeping product and giving other support to bigger retailers.

63


64/70

LIMITATIONS

Marketing research suffers from several limitations. A large number of

problems which are caused by financial constraints, insufficient sample size,

and lack of personal contact etc. marketing research only helps managers in

decision making process. It provides data and information to the managers

but it can not be a substitute for marketing.

Limitations of Survey:

In this industry, it is very difficult to find the exact figures as the

consumption is very low.

There is not a particular trend followed in this industry to promote

sales. Actions are taken according to the situations and the situation

changes very fast in this industry.

Sales price vary from retailer to retailer, as the cost price is different

for different retailers due to schemes given.

The number of shops is very large in number and it is very difficult to

cover all of them.

64


65/70

CONCLUSION

Shampoo industry is very competitive industry and dominance

of Nyle makes it tougher for other brands to establish in this

field. So in order to compete in this market everything should be

perfect with main focus on distribution.

The distribution must be proper and retailers must be the main

center of focus. They are the people who can make difference.

Dabur advertisement is coming on TV and FM Radio in

Ghaziabad also.

So there is a possibility that sales will increase as more and

more people come to know about Dabur shampoo.

Advertisement can bring the customers to the shops but after

that the retailer is the key person.

If he wants he can sell any Herbal. Therefore it should be the

combined effort of company and retailers to improve the sales.

Also people always prefer change so if we provide them better

substitute of Nyle they will welcome this change.

65


66/70

BIBLIOGRAPHY

1. Kotler, Philip, & Gary Armstrong, Marketing Management Ed-5th.

2. BERI G.C Research Methodology Ed-3rd (Tata McGraw-Hill).

3. Gupta, S.L Sales and distribution process Ed-5rd (1999).

4. Business Today, (Collector Edition, Vol.1).

5. Malhotra .k. Naresh & Das Satyabhusan Marketing Research

Ed-6th (Pearson Publication).

6. Sarin Anil (2007), Contemporary Issues in Marketing.

Indian journal of Marketing. Vol. 37, pp. 40-44.

7. Indian Journal of Marketing, (May 2011).

8.The Journal of India management &strategy, (July-Sep 2011).

9.Websites:

http://www.dabur.com.

www.managementanswer.com

66
http://www.managementanswer.com/http://www.managementanswer.com/


67/70

APPENDIX

QUESTIONNAIRE

Retailers Name:

Shop Address:

Tel:

1. Which brands keep in your shop?

a. Dabur ( )

b. Nyle ( )

c. Ayur ( )

d. Chik ( )

e. Other ( )

2. According to you best distribution channel is of?

a. Dabur ( )

b. Nyle ( )

c. Ayur ( )

d. Chik ( )

e. Other ( )

3. Which brand provides best promotional efforts?

a. Dabur ( )

b. Nyle ( )

67


68/70

c. Ayur ( )

d. Chik ( )

e. Other ( )

4. Which Brand is most liked by consumer in Ghaziabad?

a. Dabur ( )

b. Nyle ( )

c. Ayur ( )

d. Chik ( )

e. Other ( )

5. Is the Vatika Shampoo easily available to you on ordering to company?

a. Yes ( )

b. No ( )

6. Are you satisfied with margin provided by the company of the product?

a. Yes ( )

b. No ( )

7. Other competitive brand providing good marginal.

-------------------------------------------------------------.

8. Are you satisfied with the quality of these brands ?

a. Dabur ( )

b. Nyle ( )

68


69/70

c. Ayur ( )

d. Chik ( )

e. Other ( )

9. Are you satisfied with brand name?

a. Dabur ( )

b. Nyle ( )

c. Ayur ( )

d. Chik ( )

e. Other ( )

10. Suggestion from you side to an Vatika Shampoo company is?

a. Availability of product should be increased ( )

b. Price reduction ( )

c. Distribution improvement ( )

d. Taste improvement ( )

e. Other-----------------

11. Are you interested in selling Vatika Shampoo?

a. Yes ( )

b. No ( )

69


70/70

12. If given a choice among following brands of Shampoo, which one

would you like to have (choose Only one):

a. Dabur ( )

b. Nyle ( )

c. Ayur ( )

d. Chik ( )

Documents

Rpr Final Report