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Marketing Strategy Project Marketing Research on “DABUR Ind Ltd”

Marketing strategy & Product Strategy for DABUR

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Marketing Strategy & Product Strategy for Dabur

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Page 1: Marketing strategy & Product Strategy for DABUR

Marketing Strategy Project

Marketing Research on “DABUR Ind Ltd”

Page 2: Marketing strategy & Product Strategy for DABUR

Dabur India Ltd

INTRODUCTION TO DABUR –

“Dabur is derived from the word ‘Da’ for ‘Daktar’ or ‘Doctor’ and ‘bur’ from Burman.”

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of about US$750 Million (over Rs 3416 Crore) & Market Capitalization of over US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.

Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stand at over Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

Page 3: Marketing strategy & Product Strategy for DABUR

COMPANY PROFILE OF DABUR Ind Ltd

Type -Public (NSE, BSE)

Founded -1884

Headquarters -Ghaziabad

Key people -V. C. Burman

Business -Dabur’s product range encompasses health care, personal care, ayurvedic specialties and

food segments.

Brands -Well-known brands include Amla, Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care and

Pudin Hara.

Location -Dabur has been marketing its products in more than 50 countries all over the world. The

company has offices and representatives in Europe, America and Africa. Manufacturing facilities are spread across three overseas locations.

Revenue –Turnover of approx Rs 3417,1 Crore (FY-2010) & Market Capitalization of Rs. 15500 Crore.

Page 4: Marketing strategy & Product Strategy for DABUR

Strength •Century Old Company•Established Brand•Ayurvedic/ herbal Product line•Leader in Herbal Digestives where the product has 90% of the market share•Core knowledge of Ayurveda as competitive advantage•Strong Brand ImageStrong  Distribution Network•Extensive Supply Chain•R & D - a key Strength

Weakness•Seasonal Demand (like Chyawanprash in winter and Vatika not in winter)•Profitability is uneven across product line•Low Penetration (Chyawanprash)•Limited differentiation (Vatika)•Unbranded players account for 2/3rd of the total market (Vatika)

Opportunity•Extend Vatika brand to new categories like Skin Care and body wash segments•Market Development•Export Opportunities•Innovation•Increasing income level of the middle class•Creating additional consumption pattern

Threat

• Existing Competition like Himami, Baidyanth and Zandu for Dabur Chyawanprash and Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil)•New Entrants•Other fields of medicine- Allopathic and Homeopathic

SWOT ANALYSIS FOR “DABUR”

Page 5: Marketing strategy & Product Strategy for DABUR

Main Competitors for Dabur ProductsCategory of

productsDabur’s Share Main Competitors

Fruit Juice 58% Real Active Tropicana

Hair Oil 6.4% Vartika HUL, P&G, Marico

Shampoo 7.1% Vartika Shampoo HUL, P&G

Hair Care (Overall) 27% HUL, P&G, Himalaya

Chyawanprash 64% Himani, Pathanjali, Himalaya

Honey 40% Himani, Hambard and Local Players

Digestive 37% Paras & Local Players

Page 6: Marketing strategy & Product Strategy for DABUR

Product Range of Dabur (as per 2010 survey)

Hair Care

Hair oil –

Ø  Dabur Amla,

Ø  Dabur Amla Flower magic,

Ø  Dabur Vatika coconut,

Ø  Vatika Almond.

Ø  Dabur Anmol

 Shampoo –

Ø  Smooth & Silky,

Ø  Root Strengthening and Black Shine shampoo,

Ø  Vatika Dandruff Control,

Ø  Dabur Total Protect.

Conditioner –

Ø  Vatika Smooth & Silky Conditioner,

Ø  Vatika Root Strengthening Conditioner

Oral Care

Ø  Dabur RED Paste,

Ø  Meswak,

Ø  Promise,

Ø  Babool Mint Fresh,

Ø  Babool

Ø  Dabur Lal Dant Manjan

Health Suppliment

Ø  Dabur Chyawanprash

Ø  Dabur ChyawanPrakash -Orange an Mango flavors available

Ø  Dabur Chyawan Junior. (Chocolate-flavored)

Ø  Dabur Honey, the purest branded Honey.

Ø  Dabur Glucose

Digestive

Hajmola (Tablets and Candies)

Skin Care

Gulabari

FEM

Uveda Ranges

Bleaches

Food Products –

Ø  Real Active Juice

Ø  Real Juice  (12 delicious variant)

Ø  Real Burrst

Ø  Hommade

Ø  Lemoneez

Ø  Capsico Red Pepper Sauce

Page 7: Marketing strategy & Product Strategy for DABUR

Home Care

Ø  Surface Cleaner

Dazzil

SaniFresh

Ø  Odomos (Mosquito Repellent)

Odomos Cream

Odomos Lotion

Ø  Air Care

Odonil Room Freshener

Odonil Block

Ø  Dish wash

Odopic Dish wash

Odopic Dish washing powder

Health Care

Ø  Rubs & Balm

Dabur Balm Strong

Dabur Balm Double Action

Ø  Baby Care

Dabur Lal Tail

Dabur Janma Ghunti

Dabur Gripe Water

Ø  Gastro-Intestinal

Dabur Pudin Hara

Ø  Cough & Cold

Dabur's Honitus Cough Syrup

Page 8: Marketing strategy & Product Strategy for DABUR

Pricing Strategy of DaburPRICEPrice is normally expressed in monetary terms. It is worth of a product or service

in monetary terms. Price is the value which a buyer passes on to the seller in lieu of the product or service provided. Price is a crucial determinant of the fact whether the exchange between the buyer and seller should materialize or not. While pricing the products three main factors should be kept in mind -:

Cost Competition Consumer demand

Pricing Strategies of DaburDabur has stepped up the pace of new product launches and is investing ad

spend and marketing. The entire product portfolio is also tweaked to include premium offerings such as more variants under almost every category, like Dabur Vatika Hair Oil is available in 3 different versions.

Dabur is today seen as far more proactive in the market. Dabur is now an external oriented company. Across the whole organization the company have one definition of winning, and that means not just growing, but growing completely. Over the last two years, Dabur has maintained its operating margins through judicious price hikes across products and reduction in pack sizes.

Page 9: Marketing strategy & Product Strategy for DABUR

I.COST

One of the most important factor to take care while pricing is the cost costs set the floor for pricing decisions. There are two types of cost variable cost and fixed cost. It is important that the price should recover all costs including a fair return for undertaking the marketing effort and risk.

II.COMPETITION

Competition is another important consideration while pricing. When a firm does not face any competition it can enjoy complete freedom in fixing its price. But when there are competitors selling the same or similar products, the pricing freedom is considerably reduced. Its price must fall in line with the competitors. Similarly Dabur India Limited also has many competitors. But Dabur’s top selected competitors are:-

Hindustan Unilever Limited Proctor and Gamble Pepsi co. Colgate Palmolive Godrej Industries Marico Ltd.   etc.

III.CONSUMER DEMAND

Dabur learned that the majority of Indian population tends to go towards the Indianised natural and herbal products thus they made it their USP. Dabur is efficiently leading the market with this product range, providing the customers with special products easily.

Page 10: Marketing strategy & Product Strategy for DABUR

PLACE & PROMOTIONAL STRATEGYPLACE:

Place in the context of marketing mix refers to a set of decisions that need to be taken in order to make the products available to the customers for purchase and consumption. Making the products available to the customers require development of channels of distribution and physical distribution of products.

CHANNELS OF DISTRIBUTION:

A channel of distribution refers to the path taken by the goods in their movement to the customers. For instance, the toothpaste we use is manufactured in the factory of a company Dabur. But before it reaches us it passes through the hands of many middlemen who help it come to you in right time, at right place and in right quantity.

Dabur’s distribution network is recognized as one of its key strengths. Its focus is not only to enable easy access to our brands, but also to touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience.

The Channel of Distribution of Dabur foods, here first the products are manufactured and from Manufacturing plants the packed goods are supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the goods to them, this work is generally done by stockiest salesman through ready stock or by taking orders first and then placing the order. From here the goods finally reaches to Customers. Customer purchases the product from retailers.

Page 11: Marketing strategy & Product Strategy for DABUR

PROMOTION

Once the product has been manufactured, priced rightly and is distributed, the next task of the marketer is to inform potential customer about the product and persuade them to buy the same. The promotion element of marketing mix is concerned with activities that are undertaken to communicate with both customers and participants in the channel of distribution such that sales goals are realized. There are different promotional activities like-: Advertising, Sales promotion, trade promotion, personal selling etc. but one of the most convenient and effective one that most of the industries uses is the Advertising and Sales Promotion.

AdvertisingAdvertising is a form of communication that typically attempts to persuade

potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization.

Dabur has created the huge brand image and a vast product following by associating mega-names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the company has been successful in this mission as the people now know the brand and ask for its products by name.

Page 12: Marketing strategy & Product Strategy for DABUR

Sales promotion“An activity designed to boost the sales of a product or service. It may include

an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods”.

In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales.

Sales promotion involves short-term incentives to encourage buyers to purchase a product. It's aim is to encourage immediate purchase of a product. If used too often however, sales promotion can create a situation where consumers will not buy unless there is a bonus offer. This will result in loss of profit for the company.

More than any other element of the promotional mix, sales promotion is about “action”. It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to.

Sales promotion can be directed at:-•The ultimate consumer (a “pull strategy” encouraging purchase)

•The distribution channel (a “push strategy” encouraging the channels to stock the product). This is usually known as “selling into the trade”

Page 13: Marketing strategy & Product Strategy for DABUR

SALES PROMOTIONAL TOOLS OF DABUR FOODS Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Point-of-sale displays Free samples Contest /demos Festival Sales Retailer coupons Multi-packs Special price for twos Allowances for additional shelf space Merchandising Sales contest Incentives Awards & prizes Premium gifts Sales Meetings Samples/product sampling Contests & Sweepstakes Exchange Offers/buyback Refund / Rebate Price / Bonus Packs

Page 14: Marketing strategy & Product Strategy for DABUR

PROMOTIONAL SCHEMES USED FOR STOCKIESTS§  Encourage stockiest to participate in displays and sales contests.

§  Higher Margins: Tries to give higher margins to stockiest so that they don’t loose interest in the product and can earn good profits after meeting all the expenses.

§  Sales Contests: Sales contest are held annually and whichever stockiest has the best sales record a prize is given to him, like free holiday to the family etc.

§  Allowances: Special allowances are given to both stockiest and stockiest sales man if they achieve their monthly target.

§  Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some money on the promotional schemes, like conducting a sampling activity.

§  Danglers and Posters: Company gives posters and danglers to stockiest which are further pasted and distributed by stockiest sales man.

§  Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by the company for stockiest sales man so that they don’t face any problem while placing their products and taking orders from retailers.

§  Annual Gathering: All the stockiest meet under one roof at least once a year and then the stockiest whose performance was best in term of sales is awarded.

§  Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once a year.

§  Gathering While Launch of New Products: All the stockiest and their sales man gather when there is a launch of a new product. Company gives free samples & gifts to stockiest and their sales man.

§  Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.

§  Free danglers and posters for publicity.

§  Buyback: Dabur foods have a scheme of replacement of products which gets expired.

Page 15: Marketing strategy & Product Strategy for DABUR

PROMOTIONAL SCHEMES USED FOR RETAILERS

Trade allowances: Short term incentives are offered to induce a retailer to stock up more dabur products. Dealer loader: An incentive given to induce a retailer to purchase and display the products of dabur.  Trade contest: A contest to reward retailers those sells the most product of dabur foods and after a specific

period they are rewarded. Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like danglers,

posters, banners etc helps in promoting sales. Push money: Also known as "spiffs". An extra commission paid to retail employees to push products. This

kind of practice dabur hardly follows. Free samples: Dabur foods gives free samples are given to retailers so that they can try that product if the

product is new, or gives some discounts. Demos: Special demos are given to retailers and even some stands, fridge are given by retailers. Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash discounts if

payment is made in cash. Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer buys and sells a

specific amount of products. Higher Margins: Retailer has the highest margins and dabur foods also have the same criteria, and retailer

can further sell the dabur product to consumer at discount keeping his margin safe. Allowances for additional shelf space: Company as such does not pay anything to retailer but gives

some additional benefits for giving them shelf space which is visible to customer when ever they enter the shop.

Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising dabur products. When ever the Stockiest sales man goes to take orders then he also merchandises dabur products.

Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with that. Trade Allowance: Dabur comes with different types of trade discounts from time to time, like sometime

price discounts, sometimes gifts etc. Free goods: Dabur gives free goods on the purchase of specific number of goods. Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at the time

of purchase. Product sampling: Dabur organizes sampling activities for its products which are new, these activities are

generally at the place where footfall is very high. Displays: Dabur tries to give special displays to the retailers, so that they can display their products on that. Point-of-Purchase Material: POP material is available in the form of stickers, banners, displays, posters,

signs, streamers, etc. put up inside and outside the stores & other possible purchase locations.

Page 16: Marketing strategy & Product Strategy for DABUR

PROMOTIONAL SCHEMES USED FOR CONSUMERS§  Price deal: A temporary reduction in the price is given to consumer during some festival

session by dabur foods.

§  Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).

§  Coupons: Dabur foods gives coupons during different sampling activities to consumers and it have become a standard mechanism for sales promotions.

§  Loss leader: Dabur foods temporarily reduce the price of its popular product in order to stimulate other profitable sales.

§  On-shelf coupons: Coupons are present at the shelf where the product is available.

§  Rebates: Consumers are offered money back, rebate at different point of time.

§  Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling activities then they are given a discount coupon of products of dabur foods.

§  Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps a special check on the displays and merchandising of dabur products.

§  Sampling Activities: Dabur organizes different sampling actives at different retail outlets.

§  Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.

§  Money Refunds: Customer can claim for refund of money if they face some problem with the product

§  Contest /demos: There are different contests where customers play games and win contests.

§  Festival Sales: Dabur foods come out with some special offers during festival seasons like buy one get one free.

§  Multi-packs: Dabur foods has some products in multiple packaging which are comparatively priced lower to the products sold in a single pack.

§  Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier for customers to know about product line and choose the best out of that.

Page 17: Marketing strategy & Product Strategy for DABUR

Awards and Achievements-1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes

2. Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods space in India

3. Dabur ranked among Top 10 Best Companies to Work For in the Consumer Goods and Durables sector

4. Dabur ranked 45 among Most Trusted Brands In India, according to Brand Trust Report, India Study, 2011

5. The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100 Richest Indians' list

6. Dabur listed among the enterprises that are 'Doing India Proud' in Limca Book of Records

2010

7. Dabur ranked 200 in the Fortune India 500 list that ranks India's 500 largest corporations

8. Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company

9. Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace bag international Promotion Marketing Award of Asia 2010

Page 18: Marketing strategy & Product Strategy for DABUR

Project Done by :

Sayantan Bhattacharya Abhik Sinha

Ankur Chhetri Promit Chowdhury