SUMMER TRAINING PROJECT

ON

MARKETING STRATEGIES

OF DABUR

Submitted in the partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) TO MAHARISHI DAYANAND UNIVERSITY ROHTAK

SUBMITTED BY YOGESH TANWAR Roll No. 0905051 MBA (III Sem)

SUBMITTED TO MS. TEENA GUPTA

GURGAON COLLEGE OF ENGINEERING

BILASPUR SESSION: 2009-11 AUG. 2010

DECLARATION
I, Yogesh Tanwar, Roll No. 0905051, Class MBA (III Sem) of Gurgaon College of Engineering, Bilaspur, hereby declare that summer training 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. A seminar presentation of the training report was made on 8th June, 2010 to 2nd August, 2010 and the suggestions s approved by the faculty were duly incorporated.

Presentation In-charge

Signature of the Candidate

Signature: Name of the Faculty:

Countersigned Director of the Institute

ACKNOWLEDGMENT
My sincere thanks to Ms. Teena Gupta, Faculty Member, Gurgaon College of Engineering, Bilaspur, 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 summer training 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.

YOGESH TANWAR Roll No. 0905051 MBA (III SEM)

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.

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. 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.

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 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.

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

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

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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

COMPANY HISTORY

1884

Birth of Dabur

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

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

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Dabur's mission of popularising a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicine, naturebased 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.

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Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to Europe, Latin America, Africa, and other Asian countries.

Export of food and textile grade natural gums, extracted from traditional plant sources.

Partnerships and Production

Strategic partnerships with leading multinational food and health care companies to introduce innovations in products and services.

Manufacturing facilities spread across 3 overseas locations to optimise production by utilising local resources and the most modern technology available.

DABUR GROUP
With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to five leading group companies that conduct their operations independently: DABUR FOODS DABUR NEPAL DABUR EGYPT DABUR ONCOLOGY DABUR PHARMA

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COMPANY PHILOSOPHY

"Dedicated to the health and well being of every household"

This

is

our company.

We accept

personal responsibility,

and

accountability to meet business needs.

We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most.

People are our most important asset. We add value through result driven training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products to fulfill them better.

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We work together on the principle of mutual trust & transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks.

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

We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.

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MARKETING STRATEGY FOR DABUR FOODS

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 of products. - Packaging, type, material, size, appearance, label - Branding and trademark - Services, pre-sale and after-sale - New products 2) Place includes company activities that make the product available to target consumers.

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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. objectives by delivering values to consumers. The marketing mix constitutes the companys tactical tools kit for establishing strong positioning in target markets.

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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.

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

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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 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. naturally sweet and artificially sweetened juices- a big plus for the Real brand. Also now, Real fruit juices are

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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. 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

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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, nonalcoholic fruit drinks, it is imperative that the company try and increase profits by increasing sales volume and reaching economy of scale and not by increasing price tag. PLACE The Facts: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

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eventually brand loyalty is continuously diminishing in the competitive market of today. As a result, services especially as that of distribution and logistics gains crucial importance. So, initially Real went off the shelves due to the slack distribution network and then in August, after relaunching it again in tetrapacks and making it available at every nook and corner, it has gained momentum substantially.

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PROMOTION THE FACTS:Real : Do you believe in real love? Theres nothing artificial about it The essence of Reals promotional work is real. To the up market housewife, it is posed as a convenient pack full of nutritional value. Though considered as a premium product, because of its price competitiveness, it is being pitched against roadside juicewalls. Completely hygienic and value for money are the messages being sent across. Real, barring a few advertising spots has not really advertised much. But all this is set to change this year with and advertising budget of about Rs. 1 crore strategy is being worked out with door to door sales and sample promos. To add variety Real now even comes in blue packs, equipped with screw back-ups.

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FINDINGS:When a company faces stiff competition form the other. It is but impossible for the company to disregard promotion. Regarding the promotional effort, Real poses a sedate and premium image. The packaging in itself speaks a lot about the consumers being targeted. Packaging plays a very important role in promoting the product. Availability of Real fruit juice in blue tetrapacks with screw back up have tremendously promoted the product and also point of purchase how help in impulse buy decisions. To promote fruit juices a gift pack of four 500ml packs (mango, orange, pineapple and mixed fruit juice) are launched at a price of Rs. 105. Real has also launched a scheme of Buy 2 orange packs of 250ml and save Rs. 8 have really promoted the product.

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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

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Honey as Company believe that once consumers try the brands at slashed price, The brand would gain Peak sales year after year. PLACE Homemade is aimed at House wives & mothers. Initially when Homemade cooking Paste were launched, they were sparsely available Positioned as an up Market, brand it was mostly available in mid up Mkt., brand it was mostly available in mid up Mkt outlets. The Packaging of Homemade was changed from simple pack to tetrapacks & the distribution channel was made more efficient. The efficiency of distribution is such, that now Dabur Homemade available everywhere. FINDINGS:Homemade has done well the market the market despite the fact that it is a new concept for the people to digest it. Homemade sales are increasing every year and its distribution network becomes strong. Now it is available at every nook & corner, it has gained momentum substantially. PROMOTION HOMEMADE:- Silwatte Ka Jaadu. The essance of Homemades Promotional work is Natural ie, Convenient Pack full of nutritional value. Prices were kept less as it is a new concept and Dabur is the only Indian Company which is manufacturing cooking pastes. Completely hygienic & Taste of nature are the messages being sent across. To add Variety Homemade comes in bottle, Pack & Tetrapacks. As in India People prefer to go for fresh things and there is easy availability of these food products. As it is a new concept and to promote Homemade. T.P of Rs. 5 were given free with other Dabur products from time to time.

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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. It is an expensive proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget , Many food companies including Dabur got benefited from it . On the analysis of survey it was found that target Market of real Juice want quality benefit rather

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then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit . To increase market share Dabur should give slight price benefit on Real brand so that customers of other Juice brand should switch from other brand to Real brand . As Homemade is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target marget should use the homemade and adopt it in making daily food thereby increasing the market share of Homemades.

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BIBLIOGRAPHY
TITLE
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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