PROJECT ON

MARKETING STRATEGIES OF

DABUR

Submitted in the partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) TO SIKKIM MANIPAL UNIVERSITY

SUBMITTED BY HEMA JOSHI Roll No. 5111218486 MBA ( Marketing - IV Sem)

SUBMITTED TO

Center NO :2017

DECLARATION
I, Hema Joshi, Roll No. 511121846, Class MBA (Marketing - IV Sem) of Sikkim Manipal University , hereby declare that project entitled: "Marketing Strategies of Dabur India Ltd." is an original work and the same has not been submitted to any other institute for the award of any other degree. .

Presentation In-charge

Signature of the Candidate

Signature: Name of the Faculty:

ACKNOWLEDGMENT
My sincere thanks to Ms. Teena Gupta, Faculty Member, Gurgaon College of Engineering, for her valuable guidance and support at all time. I am grateful to all the employees of Dabur India Ltd deserve special thanks for their cooperation and help in the collection of necessary and relevant material for this project. Also, I do thank and remember my friends for their effort and helping hand. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.

HEMA JOSHI Roll No. 511121846 MBA( MARKETING - IVSEM)

INDEX CONTENTS PAGE NO

PREFACE5 THEORETICAL CONCEPT.6 OBJECTIVE OF STUDY..20 COMPANY PROFILE...21 COMPANY HISTORY..23 COMPANY PHILOSOPHY..26 RESEARCH METHODOLOGY..32 MARKETIG STRETEGY.34 PRESENTAION OF DATA..39 CONSUMER ANLYSIS.43 RETAILER ANALYSIS.47 ANALYSIS OF DATA52 FINDINGS54 LIMITATIONS61 RECOMONDATION..62 CONCLUSION.63 BIBLIOGRAPHY.64

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 2003-2004, How Dabur can increase its market share in food Products emphasis on marketing. My two months of training, in Dabur India Ltd. enabled me to study and widen the intellectual horizon with a practical sense in the concept of marketing in real life.

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. 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) b) the offer fulfills the needs of the consumer 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 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. 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 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. 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. 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. 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: 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. 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-incharge, 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. 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.

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The different product ranges that Dabur offers in each segment are:Pharmaceuticals:-Cytostatics, Anti Bacterials, Anti Histimines, Anti Ulcerants and Antacids, Analgesics and Anti Diarrhoeals, and Anti Hypertensives. Cosmetics:- Skin Nourishers and Tonners, Moisturisers and Sun Protectors, Cleansers, Face Masks, Hair Oil and Ventilizers, Hair Wash and Cleaners. Foods:- Fruit Juices, Homemade Cooking. Family Products :- Hair Care Products, Dentrificce, Sherbets, Honey and Food Additives. Products for Global Markets:- Soaps, Shampoos, Shaving Creams, Cooking Oils and Other select products from Dabur range. Ayurvedic Specialities:- Liver Tonics, Cardioprotectives, Anti Arthic, Hypoglycamic, Rejuvenators, Anti Diarrhoels and Bowel Regulatros. Veterinary Products :- Digestigve, Uternice Tonics, Oestrus Inducers, Liver Tonics Dermatologicals and Anti Stress. Bakery Product :- Herbal and health products giant Dabur Ltd. is making an entry into the business in collaboration with Israel based OSEM Group, a leading bakery product company in the country. The joint venture will be floated in which Dabur India Ltd. will hold 60% stake. The initial investment in the project is to the tune Rs. 10 crore and the project will be funded through an equity contribution of RS. 5 crore by the two partners and a loan of Rs. 5 crore. OSEM is one of the largest grocery food manufacturers with a product line of nearly thousand varieties of cookies, cake, candies wafers and sauces among other things. The Dabur-OSEM joint venture manufactures snack foods, mayonnaise, specialty biscuits and extruded food. Dabur also proposes to transfer its extruded food products to the joint venture company. The company is already 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

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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 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, 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 14

is particularly popular in U.K and the Middle East. Other principal market include Bangladesh, Sri Lanka and Malaysia, although the company products are available in cover 50 countries in total. In terms of recent international launches, the company introduced six single-ingredient ayurvedic OTC dietary supplements under is Nature Care label in the U.K, Germany and Italy. The recent past has spawned a unique economic era. Over the century of presence against the background of varying economic conditions, has strengthened 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 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.

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Technology upgradation has not been at the cost of be humanising the quality of life. Stricker pollution control measures, as expansion of information technology capabilities have all added to the better environment and work ethos. Dabur has always been synonymous with quality. For Dabur it is a culture and not a stop gap arrangement. Dabur believes that quality is a corporate responsibility towards employees, and environment in which they operate. Sustaining consumer confidence for over a century is no mean feat.It is indeed a true reflection of quality of the 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 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

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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. 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. 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.

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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. 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 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

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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 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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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.

20

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 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 21

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 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

22

COMPANY HISTORY

1884 1896 Early 1900s 1919 1920 1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000

Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs.1,000 crores

23

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.

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

24

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
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

25

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.

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.

26

Continuous innovation in products & processes is the basis of our success.

We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other. MILESTONES Milestones to success Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow. 1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. 1930 - Automation and upgradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India.

27

1949

Launched

Dabur

Chyawanprash

in

tin

pack

Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India. 1957 - Computerisation of operations initiated 1970 Entered Oral Care & Digestives segment

Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses. 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 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

28

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 2000 The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses. 2001 Super specialty drugs

With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business Maintaining global standards As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification.

29

INANCIAL REPORT
Rs (Crores) 2007-2008 Turn over (including other income) Profit before tax Add: Provisions of earlier yr written back 1280.22 165.02 165.02 Less: provision for taxation - current : provision for taxation Deferred : provision for taxation for earlier yr PROFIT AFTER TAX Add: Balance in profit & loss account b/f From the previous yr Transferred from debenture Redemption Reserve Transferred from investment Allowance Reserve Transferred from Investment Deposit Revenue PROFIT AVAILABLE FOR APPLICATION APPROPRIATION TO: General Revenue Capital Revenue Interim Dividend paid Final Dividend proposed 25.15 28.63 42.96 22.50 1.56 17.17 40.07 231.74 169.76 1.82 0.83 -2.50 13.00 4.00 0.05 147.97 81.12 2005-2006 1159.02 113.44 0.20 113.44 8.75 3.49 00.26 101.14 66.12

30

Corporate tax on Dividend Balance carried over to Balance sheet TOTAL

9.77 125.23 231.74

7.34 81.12 169.76

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.

31

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 useda) b) c) d) To get first and relevant and unbiased information Questionnaire provides versatility and solutions can be obtained by just asking the questions. Questioning is usually faster and cheaper. 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. 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. 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.

32

The statistical technique such a Pi-chart and percentages were used in analysing and interpreting the data.

33

MARKETING STRATEGY

FRUIT JUICES : INDUSTRY Fruit processing industry has been included in the high priority sector, which means automatic approval for upto 51% foreign equity participation, free import of capital goods, raw materials and other inputs for export oriented units, and five tax-holiday for companies. This special treatment was warranted due to inherent high growth potential. There has been three-fold increase in fruits processing units in the last seven years. The installed capacity of fruit processing industry has gone upto 29.10 lakh ton in 2003 from 19.50 lakh ton in 1998. The output of processed fruit grew by around 22% during the same period. Though, as a result of value addition, the industry is said to be rowing at 10-15% per annum, no significant change has accrued to the companies from increased production of fruits as the cost of production has remained high, primarily driven by the cost of raw material. High cost of raw material is due to small land holdings, which discourages the use of mechanised methods and there are no economies of scale. Also, as the processors from several small products, maintaining cosistency in quality of raw material becomes a problem. A plausible solution to this problem 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

34

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. 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 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.

35

Watching the intense battle between Tropicana and Real fruit juices, to caputer the Indian fruit juice market, international soft drink giant Pepsi decided to enter this lucrative fruit juice market. Pepsi recently launched its answer to Onjus and Real in the shape of Tropicana. The presence of Tropicana, Real and Berry suggest that there is an immense potential in the Indian fruit juice market. Even though the established players like Onjus and more frequently Real have captured a chunk of the juice market. The entry of Tropicana suggest that there is still scope for others to enter into this market and hatch the eggs of the golden goose, Indian juice market. 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. Its variables are :- Product mix and product line - Design, quality, features, models, style, appearance, size and warranty

36

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 Its variables are :- Channels of distribution, types of intermediaries, channel design, location of outlets, channel remuneration and dealer - principle relations - Physical distribution, transportation, warehousing, inventory levels, Order processing etc. 3) Price is the amount of money customers have to pay to obtain the Product. Its variables are :- Pricing policies, levels of margins, discount and rebates. - Terms of delivery, payment terms, credit terms and installments Facilities. - Resale and price maintainence 4) Promotion means activities that communicate the merits of the product and persuades the target customers to buy it. Its variables are :- Personal selling:- objectives, level of effort, quality of sales force, cost level, level of motivation. - Advertising : media mix, budgets, allocations and programs. - Sales promotional efforts, displays, contests, trade promotions. - Publicity and public relation. An effective marketing program blends all the, marketing mix elements into a coordinated program designed to achieve the companys marketing. 37 target consumers.

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. Hence, the product to be analysed as stated here under with their marketing mix.

38

PRESENTATION OF DATA
CONSUMERS ANALYSIS DABUR REAL JUICES 1. People Drinking Fruit Juices

No 0%

Yes 100%

2.

Brand Awareness

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

82%

19% 11% 4%
Ad. Poster Shopkeeper Friends

7%

3%
Others

Neighbours

39

3.

Category of Real Juice Consumer Mostly Buys

70% 60% 50% 40% 30% 20% 10% 0%

67%

52% 43% 36%

13%

Mango

Orange

Pineapple

Mix

Tomatto

4.

Seasonal Consumption of Real Juice

Constant 13% Winter 4%

Summer 83%

40

5.

Consumption of Real Juice if there will be slight increase in Price & Increase in quality

Constant 47%

High 37%

Low 16%

6.

Customer Expectation from Dabur by exemption of excise Duty.

Mix of both Price &Quality 36%

Price Benefit 21%

Quality Benefit 43%

41

7.

Consumption of Real Juice if there will be increase in quality and slight decrease in price.

Constant 29%

Low 0%

High 71%

8.

Will discount influence customers to leave Dabur & use other Juice knowing Real Juice is better.

Yes 27%

No 73%

42

CONSUMERS ANALYSIS

DABUR HOMEMADE COOKING PASTES 1. Use of Cooking Paste to make food delicious

No 21%

Yes 79%

2.

Recall of Dabur Homemade Cooking Pastes

70% 60% 50% 40% 30% 20% 10% 0%

62%

47%

14% 11% 6% 3%

Ad.

Friends

Posters

Shopkeepers

43

Neighbours

Others

3.

Category of Paste Consumer Buy.

90% 80% 70% 60% 50% 40% 30% 20%

87% 74%

41% 36%

9%
10% 0% Garlic Ginger Lemoneez Tamarind

11%

17%

Capsico Red

4.

Customer expectation from Dabur by exemption of excise duty.

Mix of both Price & Quality 26%

Quality Benefit 17%

Price Benefit 57%

44

Capsico Green

Garlic/Ginger

5.

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

High 16% Constant 41%

Low 43%

6.

Consumption of Homemade if there will be increase in quality & slight decrease in Price

High 34%

Constant 66%

Low 0%

45

7.

Do discounts influence customers to leave Dabur & use other Paste Knowing Homemade is better

Yes 21%

No 79%

46

RETAILERS ANALYSIS

DABUR REAL JUICE 1) Stocking of Real Juice by the Retailers

No 18%

Yes 82%

2)

Purchase of Juice Type

Others 24% Real Juice 44%

Tropicana 32%

47

3)

Stocking of Real Juice Over the Past Year

Remined the same 23%

Decreased 0%

Increased 77%

4)

Reasons for stocking Dabur Real Juice

Promotional Schemes 8% Higher trade margins 49% Consumer ask for it 43%

48

5)

Any effect of increase in Price in real Juice

Yes 17%

No 83%

RETAILER ANALYSIS
DABUR HOMEMADE 1) Stocking of Homemade by the retailer

No 37%

Yes 63%

49

2)

Purchase of Cooking Paste

Locally made, Unbranded 4%

Others 5%

Dabur Homemade 91%

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

Decreased 0%

Remained the same 41%

Increased 59%

50

Q.4.

Reasons for stocking Dabur Homemade

No other Natural brands available 15%

Promotional Schemes 4%

Higher trade margins 42%

Consumer ask for IT 39%

5)

Any effect of Budget

Yes 16%

No 84%

51

ANALYSIS OF DATA
SWOT ANALYSIS STRENGTHS: It is present in two sweetened and unsweetened taste Efficient distribution channel Affordable and visible User friendly packaging Extended shelf life Easy availability Reliability Appeals to health and hygiene conscious people Large product line Undifferentiated market

WEAKNESSES Consumers perception towards Dabur as a pharmaceutical company Perishable product Stringent quality management High investment required

OPPORTUNITIES Growing stage- sunrise industry Changing consumer habits New flavours especially vegetables 52

Export potential

THREATS Entry barriers not high Competition from MNCs Competition from non-alcoholic beverage market.

53

FINDINGS
THE MARKETING MIX PRODUCT ( Real Juice ) The Facts : The Real range of juices includes orange, mango, pineapple and mixed fruit juices as well as its vegetable variant, tomato in its product line. This juices contain 100 percent fruit juice. Real has no additives artificial flavour, colour or preservatives. The fruit juice has a self life of six months and does not need refrigeration at the retail end. The Juices are available both in sweetened and unsweetened form. Real fruit juices were available and packed in Nepal in 500ml and llitre tetrapack, Prevaiously it was available in elopack. To overcome this hindrance, Dabur India tied up with Godrej Foods regarding the packaging of Real, and now Real is available in tetrapacks of 200ml, 250ml, 500ml, l litre which are tapped at the top for easy handling. The market share of Real juices account for 35% & enjoying the Privilege of becoming Mkt leader. FINDINGS :In terms of variety and flavour, Real offers a multiflavoured variety. Also, Indians are known to have a sweet tooth, Real juices are available in sweetened flavour also. Real provides naturally sweet and artificially sweetened juices- a big plus for the Real brand. Also now, Real fruit juices are available at every hook and corner. Elopacks were introduced by Real to ensure good juice quality but as tetrapacks are preferred and now Real juices are packed in tetrapacks keeping the quality and easy handling, so as for now, Real juices are available in tetrapacks of 200ml, 500ml and l litre.

54

PRICE FACTS Brand Flavours Orange REAL (sweetened Unsweetened) Mango FRUIT (Sw and Unsw) Pineapple JUICES (Sw and Unsw) Mix Fruit Juice (Sw and Unsw) Tomato (Sw and Unsw FINDINGS:Real, multi flavoured brands has put its different flavours under different price tag keeping in mind the preferred tastes of Indian consumer. The sweetened and unsweetened juice varieties are priced same. Since Real is fighting its battle not just against its immediate competitor Tropicana but also against the established Frooti, so the prices for orange and mango juices are in a competitive range and the other juices are priced a higher than that of orange and mango juices keeping their novelty and preferences of Indian consumer in mind. Last year, Real launched its festive carton of four 500 ml packs (2 oranges, 1 mixed and 1 tomato) priced at Rs. 90. This year Real launched a gift pack of four 500ml packs (mango, orange, pineapple and mixed fruit juices) priced at Rs. 105. Also, Real has launched a scheme of Buy two orange juice pack of 250ml and save Rs. 8. The company believe that once the consumer try the brands at slashed price, the brands would gain peak sales year after year. However, the company failed to understand that consumer in general are no longer brand loyal and are always hunting for value of money. In order to steal the show from aerated, non-alcoholic fruit drinks, it is imperative that the Rs 35 Rs 35 Rs 68 Rs 60 Rs 35 Rs 60 Rs 10 Rs 35 Rs 60 13 Rs 35 Rs 60 200ml 250 ml 500 ml 1 litre

55

company try and increase profits by increasing sales volume and reaching economy of scale and not by increasing price tag. PLACE The Facts:Real is aimed at teenagers, young kids, wives, mother and family people. Initially, when Real Fruit juices were launched, they were sparsely available. Positioned as an up market brand, it was mostly available in mid-up market outlets. The absence of small, convenient packs made Real less discrete in a Premises outlets like college canteens and roadside stores. To make matters worse in-transit damages to the packs during carton handling earned the brand a bad name initially. But realising their mistake and after loosing a large chunk of its market share to its competitor, the packing of Real was changed from elopackes to tetrapacks, and the distribution channel was made more efficient. The efficiency of distribution is such, that now Real fruit juices are available every where. FINDINGS:Real has done well to elaborate their consumer segment from kids, teenagers to young adults and family people, surprisingly the sales has not risen exponentially. In 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 again in tetrapacks and making it available at every nook and corner, it has gained momentum substantially.

56

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.

57

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.

58

THE MARKETING MIX PRODUCT (HOMEMADE) FACTS:The Homemade range of Pastes includes Lemoneez, Garlic, Ginger, Mustard, Garlic ginger mix, Tamarind, Capsico Red & Capsico green. The Pastes contain 85% Natural ingredient with additives artificial flavour, colour or Preservatives. Home mades has a self life of 6 months & does not need refrigeration at the retail end Home mades are & in tetrapack form & available in 50% (T.P.), 200g & 250g. FINDINGS:In terms of variety & flavour, Real offers a multi flavoured variety. Also Indians are known for eating delicious foods. In provides artificial taste- a big Plus for Homemade brand. Bottle, Pack & Tetra pack were introduced by Homemade to ensure goods quality. PRICE FINDING: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.

59

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. 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.

60

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. 4. 5. 6. 7. The lack of experience in preparing the project report. Lack of experience in drafting the questionnaire. Lack of knowledge on the part of the respondents regarding the subject matter. Survey results may be prone to sampling errors. Lack of time as time to visit retailers, distributors & wholesalers is done mainly in afternoon.

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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) marketing module, the attributes most rated by the consumers. Lack of publicity has hampered the growth progress of the brand so aggressive advertising is needed to promote Real and Homemade brand .The brands such as that of Splash by Nestle, Safal with its Guavaand Mango flavour, Coca-Colas Minute- made and also US food giantssDel Monte are ready to hit the juice market very soon.

Homemade cooking Pastes has no major competition except an Australian Product Tobasco.

As

Cooking Paste is a new product so people are not able to digest it yet Dabur is getting 8 crores from Homemades in which Ginger garlic mix accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores . As the strategies of the companies keeps on changing, be it in juice industry or soft drink industry , a company has to create perceptions and cover them into realities. the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget , Many food companies including Dabur got benefited from it . On the analysis of survey it was found that target Market of real Juice want quality benefit rather then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit . To increase market share Dabur should give slight price benefit on Real brand so that customers of other Juice brand should switch from other brand to Real brand . As Homemade is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target marget should use the homemade and adopt it in making daily food thereby increasing the market share of Homemades. It is an expensive proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be

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BIBLIOGRAPHY
TITLE
The Juices to go places Boom in the times of Gloom Fruit of the Loom Corporate Dossier, The Economic Times Body Coolants Pioneer

SOURCE
Business India Business World

Fruits of Labour

Financial Express

A Masti Swing

The Economic Times

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