GGSIPU

PROJECT REPORT ON
Marketing strategy of Dabur Vatika Hair Oil &
Dabur Chyawanprash

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQURITMENTS FOR THE AWARD OF THE
DEGREE OF BACHELORS OF BUSINESS
ADMINISTRATION (BBA)
TO
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY,
DELHI
MENTOR SUBMITTED BY:
Mrs.ANJALI SINGH RAHUL RANA
ENROLLMENT NO.
09514217088
BBA-3

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

VASANT KUNJ-70
2
 CERTIFICATE

This is to certify that RAHUL RANA of BBA-III, batch 2008-11,

enrolment no. – 0951421708 have undertaken a minor report on
“Marketing strategy of Dabur Vatika Hair Oil & Dabur
Chyawanprash” and have completed the project under my
supervision. I am satisfied with the project report submitted.

(Internal Guide)

Mrs. ANJALI SINGH

Lecturer, JIMS

3
 DECLARATION

I hereby declare that this project work titled “Marketing strategy

of Dabur Vatika Hair Oil & Dabur Chyawanprash” is my own
work and no part of this project has been submitted for any other
degree purpose or published in any other film till date.

RAHUL RANA

ENROLLMENT NO. 0951421708

4
I would profusely like to thank my faculty and mentors at
JIMS VK especially Mrs. ANJALI SINGH, for their
immense help and support throughout the making of this
project. I would also like to thank my parents and friends
for their encouragement and help, without which the
project would’ve been incomplete.

Thanking you ,
RAHUL RANA
BBA 3
0951421708

5
 TABLE OF CONTENT

Chapter-1 Introduction
1.1 Executive Summary
1.2 FMCG Sector Overview
1.3 Company Overview
1.4 FINANCIAL REPORT

1.5 Company History

1.6 Product Line of Dabur
1.7 SWOT Analysis

Chapter-2 Objective & Methodology

2.1 Overview of Hair Oil Segment
2.2 Overview of Vatika
2.3 STP Analysis of Vatika Hair Oil
2.4 Marketing Mix of Vatika hair Oil
2.5 Advertising
2.6 Competitor Analysis of Vatika Hair Oil

Chapter-3 Conceptual Discussion (Theoretical Backdrop & Literature Review)

3.1 Customer Questionnaire of Vatika Hair Oil
3.2 Customer Survey Results of Vatika Hair Oil
3.3 Retailer Questionnaire of Vatika Hair Oil
3.4 Retailer Survey Results of Vatika Hair Oil

6
Chapter-4 Data Analysis
4.1 STP Analysis of Dabur Chyawanprash
4.2 Marketing Mix of Dabur Chyawanprash
4.3 Competitor Analysis of Dabur Chyawanprash
4.4 Customer Questionnaire of Dabur Chyawanprash
4.5 Customer Survey Results of Dabur Chyawanprash
4.6 Retailer Questionnaire of Dabur Chyawanprash
4.7 Retailer Survey Results of Dabur Chyawanprash
4.8 Ansoff’s Product Market Expansion Grid
4.9 The BCG Growth-Share Matrix
4.10 The New Dabur Entity
4.11 The Future of Dabur con

Chapter-5 Findings and Recommendations

5.1 Recommendations
5.2 References

7
 EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur India
Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the
very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika
has come to be amongst the company’s highest selling brands. Vatika is a comparatively
young brand but is already acknowledged for the qualitatively influential and pioneering
role that it has played in the evolution of the categories it has had a presence in. Dabur
Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of
61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has
invested heavily in product development, clinical studies and consumer awareness. The
product is essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing strategy of Dabur
India Ltd, but is an attempt to analyze the marketing mix of Dabur Vatika Hair Oil and
Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth Share Matrix
analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis
has been done on the basis of the information gathered from the company website and
other online resources and books and articles.

8
 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 behavior.

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.

9
 OVERVIEW OF FMCG SECTOR IN
INDIA

The Indian FMCG sector is the fourth largest sector in the

economy with a total market size in excess of US$ 13.1
billion. It has a strong MNC presence and is characterized by a
well-established distribution network, intense competition
between the organized and unorganized segments and low operational cost. Availability
of key raw materials, cheaper labour costs and presence across the entire value chain
gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in
2015. Penetration level as well as per capita consumption in most product categories
like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped
market potential. Burgeoning Indian population, particularly the middle class and the
rural segments, presents an opportunity to makers of branded products to convert
consumers to branded products. Growth is also likely to come from consumer
'upgrading' in the matured product categories. With 200 million people expected to shift
to processed and packaged food by 2010, India needs around US$ 28 billion of
investment in the food-processing industry.
India is one of the largest emerging markets, with a population of over one billion. India
is one of the largest economies in the world in terms of purchasing power and has a
strong middle class base of 300 million. Around 70 per cent of the total households in
India (188 million) reside in the rural areas. The total number of rural households is
expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents
the largest potential market in the world. The annual size of the rural FMCG market was
estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the
rural and the urban level, the market potential is expected to expand further.

10
 Rural and urban potential
Rural-urban profile
Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/Villages) 3,768 627,000
Universe of Outlets (mn) 1 3.3
Source: Statistical Outline of India (2001-02), NCAER

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on
personal care products. The large share of fast moving consumer goods (FMCG) in total
individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets.

11
Rapid urbanization, increased literacy and rising per capita income, have all caused rapid
growth and change in demand patterns, leading to an explosion of new opportunities.
Around 45 per cent of the population in India is below 20 years of age and the young
population is set to rise further. Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a latent demand with more money and a new
mindset.

12
 COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through a natural
lifestyle. An umbrella name for a variety of products, ranging from hair care to honey,
Dabur has consistently ranked among India’s top brands. Its brands are built on the
foundation of trust that a Dabur offering will never cause one harm.
The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may
ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly
simple, it stands for India’s fourth largest fast moving consumer goods company that
both consumers and trade respect and trust unequivocally, and which has an annual
turnover of over Rs 15 billion.
The company has kept an eye on new generations of customers with a range of products
that cater to a modern lifestyle, while managing not to alienate earlier generations of
loyal customers.
Dabur is an investor friendly brand as its financial performance shows. There is an
abundance of information for its investors and prospective information including a daily
update on the share price (something that very few Indian brands do). There’s a great
sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s
philosophy of taking care of its constituents and it adds to the sense of trust for the brand
overall.

13
 FINANCIAL REPORT

Rs (Crores)

2006-2007 2005-2006

Turn over (including other income) 1280.22 1159.02

Profit before tax 165.02 113.44

Add: Provisions of earlier yr written back - 0.20

165.02 113.44

Less: provision for taxation - current 13.00 8.75

: provision for taxation – Deferred 4.00 3.49

: provision for taxation for earlier yr 0.05 00.26

PROFIT AFTER TAX 147.97 101.14

Add: Balance in profit & loss account b/f 81.12 66.12

From the previous yr

- Transferred from debenture -- 2.50

Redemption Reserve

- Transferred from investment 0.83 -

Allowance Reserve

- Transferred from Investment 1.82 -

Deposit Revenue

PROFIT AVAILABLE FOR APPLICATION 231.74 169.76

APPROPRIATION TO:

General Revenue 25.15 22.50

Capital Revenue - 1.56

Interim Dividend paid 28.63 17.17

Final Dividend – proposed 42.96 40.07

Corporate tax on Dividend 9.77 7.34

Balance carried over to Balance sheet 125.23 81.12

TOTAL 231.74 169.76

14
1884 Birth of Dabur
1896 Setting up a manufacturing plant
Early 1900s Ayurvedic medicines
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
1979 Sahibabad factory / Dabur Research Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Rs.1,000 crores

15
 COMPANY HISTORY

PRODUCT LINE

Foods

• Real
• Real Activ
• Hommade
• Lemoneez
• Capsico
• Shankha Pushpi
• Dabur Balm
• Sarbyna Strong

Personal Care

Hair Care Oil

• Amla Hair Oil
• Amla Lite Hair Oil
• Vatika Hair Oil
• Anmol Sarson Amla

Hair Care Shampoo

• Anmol Silky Black Shampoo
• Vatika Henna Conditioning Shampoo
• Vatika Antidandruff Shampoo

16
 • Anmol Natural Shine Shampoo

Oral Care
• Dabur Red Gel
• Dabur Red Toothpaste
• Babool Toothpaste
• Dabur Lal Dant Manjan
• Dabur Binaca Toothbrush

Skin Care
• Gulabari
• Vatika Fairness Face Pack

17
 SWOT ANALYSIS OF DABUR

STRENGTHS WEAKNESS
• Strong presence in well defined niches( • Seasonal Demand( like chyawanprash
like value added Hair Oil and Ayurveda in winter and Vatika not in winter)
specialties) • Low Penetration(Chyawanprash)
• Core knowledge of Ayurveda as • High price(Vatika)
competitive advantage • Limited differentiation (Vatika)
• Strong Brand Image • Unbranded players account for the 2/3rd
• Product Development Strength of the total market(Vatika)
• Strong Distribution Network
• Extensive Supply Chain
• IT Initiatives
• R & D – a key strength

OPPORTUNITIES THREATS
• Untapped Market(Chyawanprash) • Existing Competition( like Himani,
• Market Development baidyanath and Zandu for Dabur

• Export opportunities. Chyawanprash and Marico,Keo Karpin,

• Innovation HLL and Bajaj for Vatika Hair Oil)

• Increasing income level of the middle • New Entrants

class • Threat from substitutes (like

• Creating additional consumption Bryllcream for Vatika hair oil)

pattern

18
 OVERVIEW OF THE HAIR OIL SEGMENT
In the last quarter of the previous century Indian women have imbibed global mores,
ethics, fashions and styles in a remarkable way. Yet the popular iconography of Indian
beauty still associates them with beautiful fair skin and dark, long lustrous hair – a
commonly accepted definition of beauty in Indian society.

Across the country, mothers spend endless hours teaching their daughters what their
mothers had taught them about maintenance of their natural beauty – taken primarily
as caring for the skin and hair. In the hair care regime, of the numerous prescriptions
none is more universally accepted than the oiling of hair for nourishment and use of
home-made concoctions of henna and shikakai paste for conditioning them.

It would come as a surprise to only a few that hair oils have a penetration of almost
98% (Source: IRS 2003). Of the branded market, hair oils form a major chunk
accounting for Rs. 13 billion with coconut hair oils as the prime segment at Rs. 9.1
billion. (Source: ACNielsen ORG-MARG 2003).

OVERVIEW OF VATIKA:
The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In
the very first year of its launch it crossed Rs. 100 million in turnover. Over the years,
Vatika has come to be amongst the company’s highest selling brands.

It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in
2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales crossed Rs. 1,000
million. From the company’s perspective, Vatika is expected to continue to drive its
growth in the years to come. With its innovative offerings, the brand aims to become a
frontrunner in the market for hair care and skin care products.

Vatika is a comparatively young brand but is already acknowledged for the

qualitatively influential and pioneering role that it has played in the evolution of the
categories it has had a presence in. Currently, the total annual sales of Vatika products
19
are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the
coconut hair oil category (Source: ACNielsen ORG-MARG, 2003).

Vatika has not just been successful in garnering a premium image but, today, stands as
the preferred and trusted brand of 11.1 million users (Source: IRS Household Data).

STP ANALYSIS OF VATIKA HAIR OIL

SEGMENTATION

Vatika Hair Oil was launched at an almost 100% premium to the market leader.
This meant that the segment of the market that dabur wanted to cater to was the
premium segment which valued nourishment of the hair above the price and it tried
to attend to that segment which was not price sensitive.

TARGETING

This was in line with its proposition and overall brand strategy of a premium up-
market product targeted for individual needs as opposed to the collectivist culture of
the category. It targeted the high income urban category of hair oil users. Since the
product was expensive it could mainly cater to the urban market as opposed to the
rural market where consumers are highly price sensitive. Being positioned as having
amla, henna and lemon extracts, the product was targeted towards the young,
contemporary, educated, multi-faceted, achievement-driven and confident women
who were positioned as the Vatika Woman.

20
 POSITIONING

‘Total hair Care’ brand:

The product innovation was fed by the vital consumer insight that many women in
contemporary India are worried about hair problems caused by

MARKETING MIX OF VATIKA HAIR OIL

Vatika Hair Oil has made a huge impact with its innovative product offering, pricing
strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we
shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The mix
shall be analyzed as followed:
• Product
• Price
• Place
• Promotion

Product Price Promotion Place

• Product • List Price • Advertising & • Channels

Variety • Discount Promotion • Location
• Quality • Financing • Public • Inventory
• Design Schemes Relations
• Features • Credit • Sponsorships
• Brand Names Terms • Internet
• Services Marketing

21
 PRODUCT:

Brand Name: Vatika in Hindi means ‘garden’. The brand attempts

to live up to the promises – beauty and nature – that are associated
with its very name. Starting with these associations Vatika has
assiduously built a brand that delivers on all these values through
its various product offerings, the mother brand being Vatika Hair
Oil..

Innovative product offering:. Vatika Hair Oil is coconut hair oil

with special ingredients adding value to the product. While coconut oil has been
regularly used by Indian women as a basic hair nutrient, a combination of herbs
and natural products such as henna, amla and lemon have been used for special
hair needs.

Coconut hair oil provides nourishment to the hair, while henna along with other
herbs coat the hair and protect it from oxidation, thereby maintaining its natural
colour. Amla strengthens hair roots and helps maintain their natural health and
thickness. Lemon with its astringent action controls sebum flow and helps in
prevention of dandruff.

Apart from henna, amla and lemon, it also contains other natural ingredients like
brahmi, neem, bahera, kapurkachari, harar, dugdha and sugandhit dravyas.

Packaging: The qualities of Vatika products, ascribed to the brand by hundreds of

thousands of satisfied consumers, have been further underlined by its attractive
packaging. In a category dominated by blue packs as analogous of pure coconut
oils, Vatika broke the norm with its white and green bottle with a mushroom cap.
The green-and-white colours, used in its packaging, reflect the brands’ natural
ancestry and give it a premium look. These also help Vatika stand out in the
cluttered environment of Indian retail.

22
Available in:

Bottles 75 ml, 150 ml, 300 ml

Flip cans 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have been blended
together through scientific processes at Dabur’s in-house research laboratories.
Dabur Research Foundation has more than 100 scientists working together to make
superior quality products that match international standards.

PRICE:
In the traditional coconut hair oil category, which presumably had price sensitive
consumers, Vatika Hair Oil with its value added proposition – henna, amla and
lemon in a pure coconut oil – broke this myth when it launched at almost a 100%
premium to the market leader; even with such a pricing strategy it was able to
garner a significant share from the leader in the very first year of its launch.

The table above shows that Dabur Vatika is one of the highest priced of hair oils
since it targets the higher income class and also that the prices have remain
unchanged since 1999.

23
 PRICE/QUALITY MATRIX
Price→

Quality High Middle Low

Luxury Segment Ideal For Penetration Premiere

High Offering
VATIKA
Overpriced Average Real Bargain

Middle

Make The Sale Unhappy Customers Cheap Goods

and Run
Low

PLACE

Vatika products including Vatika Hair Oil are sold in 38 countries through
more than 15 lakh retail outlets and 5,000 distributors who service the entire

country through a wide marketing network.

Dabur’s distribution network extends beyond India in the following countries as well:

24
Distribution Network

• Central, North & South America

• Australia
• Asia
• Middle East

25
 PROMOTION:

Vatika – the key focus brand of the company – has always been well supported.
The company realized early that, from the perspective of brand building, it was
vital to invest in this brand.

Vatika Hair Oil’s first promotion: It focused on the key benefit – beautiful hair
without hair problems – that came about as a result of the extra nourishment
through the value addition of henna, amla and lemon-derived additives.

Creating conceptual awareness: In the initial phase of the communication, the

marketing objective was to create conceptual awareness about the new product –
the goodness of coconut oil enriched with natural herbs. Vatika was firmly
established as the leader in the new category of value-added hair oils and its
promotion campaign was so successful that the product segment itself came to be
identified with Vatika.

26
 COMPETITOR ANALYSIS

The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj,
Marico, HLL which together with Dabur have about 64% of India's domestic market.

Dabur is one of India's largest player in the hair oil segment and the fourth largest
producer of FMCG. It was established in 1884, and had grown to a business level in 2003
of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%.

We have tried to analyse the competition for Dabur in the Hair Care segment as follows:

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The
pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant
presence in eastern and western India. Its share is 6% of the total hair oil market.

27
Emami has existence in hair oil market through Himani Navratan oil and Himani Oil.
Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh
Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market.

Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond Drops —
currently have a value share of 19 per cent and 12 per cent in their respective oil
categories as per ORG-Marg. Besides, the company has also decided to enhance its retail
presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to
reach the rural parts. Overall it has a market share of 4% in hair oil market.

Marico’s Parachute is premium edible grade oil, a market leader in its category.
Synonymous with pure coconut oil in the market, Parachute is positioned on the platform
of purity. In fact over time it has become the gold standard for purity. Parachute's
primary target has been women of all ages. The brand has a huge loyalty, not only in the
urban sections of India but also in the rural sector. It has a market share of 28%.

HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it has
a 3% share in hair oil market.

28
 CONSUMER QUESTIONAIRRE- DABUR VATIKA
HAIR OIL

Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for hair oil.

Any information provided by you will strictly be used for Academic Purpose.

1. Which brands of hair oil are you aware of?

• Parachute
• Keo Karpin
• Nihar
• Hair And Care
• Dabur Vatika
2. Which brand of Hair Oil do you use?
• Parachute
• Keo Karpin
• Nihar
• Hair And Care
• Dabur Vatika

3. Where would you rate your brand on a scale of 1 – 5 ( 5 being highest)?

• 1
• 2
• 3
• 4
• 5

29
4. What are the primary reasons for which you use this particular brand?
• Non sticky
• Brand Loyalty
• Fragrance
• Price

5. How did you get to hear about this brand?

• TV
• Internet
• Word of Mouth
• Print

6. If your brand is not available you would..?

• Purchase another brand
• Wait for it to be available
• Go for a substitute
• Buy what is offered by the retailer

7. Which pack size do you prefer?

• 75 ml
• 150 ml
• 300 ml

8. On what parameters do you choose this pack size?

• Availability
• Price
• Family size
• Storage

30
 9. How often do you buy?
• Once in 15 days
• Once a month
• Once in two months

10. Are you satisfied with your brand?

• Yes
• No

Personal Information :-

Age:
Location:
Income (per month):
(1) Rs. 1,000 – Rs. 10,000 (2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,000

31
 CUSTOMER SURVEY RESULTS
DABUR VATIKA
AWARNESS LEVEL
100

80

60

40 PERCENTAGE

20

0
PARACHUTE NIHAR DABUR
VATIKA

PREFERRED BRAND
40
35
30
25
20
15 PERCENTAGE
10
5
0
PARACHUTE NIHAR VATIKA

SATISFACTIONLEVEL

4
3.5
3
2.5
2
1.5
RATING(1-LOW 5-HIGH)
1
0.5
0
PARACHUTE NIHAR VATIKA

32
 RETAILER QUESTIONNAIRE-DABUR VATIKA
HAIR OIL
Dear Respondent,
Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for the Hair Oil category that we have chosen to study.

Any information provided by you will purely and strictly be used for Academic Purpose
only.

1. Which brands of Hair Oil do you stock?

• Marico
• HLL
• Keo Karpin
• Dabur Vatika

2. Out of these which are the most preferred?

• Marico
• HLL
• Keo Karpin
• Dabur Vatika

3. According to you what are the reasons for customers’ preferences?

• Brand loyalty
• Price
• Availability
• No reason
4. What is the profile of your typical consumer?
• High income
• Middle income
• Low income

33
 5. What schemes are you offered by the companies?
• Price discounts
• Buy one get one free
• Others

6. What schemes does a consumer prefer most?

• Price discounts
• Buy one get one free
• Others

7. According to you, does in-store advertising have an affect on the consumers’

preference?
• Yes
• No

8. Does a change in price affect their preferences?

• Yes
• No

Personal Information :-

Location of store:

34
 RETAIL SURVEY RESULTS

DABUR VATIKA
1. Which brands of Hair Oil do you stock?
80
70
60
50
40
PERCENTAGE
30
20
10
0
marico hll karrpikeo karpin vatika

2. Out of these which are the most preferred?

50

40

30

20 PERCENTAGE

10

0
marico hll karrpikeo karpin vatika

3. According to you what are the reasons for customers’ preferences?

50

40

30
PERCENTAGE
20

10

0
brand loyalty price availability no reason

35
 STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under
the category of health supplements. The segments that it considers are growing kids,
competitive youth, ever busy housewives and the aged.
For the growing kids: In today's competitive environment, the children are under high
pressure to excel.
For the competitive youth: Modern life keeps the youth busy and demands them to be
active and efficient.
For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all
responsibilities.
For the aged: Old age weakens a person physically and mentally.
After segmenting the population into these categories it aims to keep them fit and
healthy.

TARGETING

Traditionally, chyawanprash was supposed to be a health supplement for the aged and
kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and
kids .This it is trying to achieve through its promotion activities by making Amitabh
Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a
user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in
today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user with a
mindset that Chyawanprash is not for him, meets his moment of truth when outperformed
by a young Chyawanprash user, thus reaching out to kids. His final conversion from a
non-user to a Chyawanprash user connects with the Youth. These two ads compliment
each other and connect very well with the targeted consumers

36
 MARKETING MIX OF DABUR CHYAWANPRASH
Dabur Chyawanprash is the market leader in the chyawanprash segment and has
achieved this with its innovative product offering, pricing strategy, easy availability and
promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of
marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as
followed:
• Product
• Price
• Place
• Promotion
Product Price Promotion Place

• Product • List Price • Advertising & • Channels

Variety • Discount Promotion • Location
• Quality • Financing • Public • Inventory
• Design Schemes Relations
• Features • Credit • Sponsorships
• Brand Terms • Internet
Names Marketing
• Services

37
 PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash category and

enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept
of branded Chyawanprash and since has invested heavily in product
development, clinical studies and consumer awareness. The product is
essentially a health supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning. The principal ingredient Amla (Indian
Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps
in stimulating immune system, relieving stress, improving stamina, fighting aging
through anti-oxidant property, improving lung function, fighting respiratory infections &
building resistance to disease. It is these properties that make Dabur Chyawanprash a
preferred choice for its users.

Ingredients of Dabur Chyawanprash

• Vishwast
Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several
other herbs and herbal extracts.
• Special
Vishwast fortified with additional health beneficial herbs like
Keshar, Akarkara etc.

Packaging:

The figure above shows the evolution of the packaging of Dabur Chyawanprash.

Advertisement showing Vivek Oberoi

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A little boy suggests his brother to have Dabur To which the brother replies,
Chyawanprash everyday. “Mujhe iski kya zaroorat?

The boy asserts, “Zaroorat hai!” and starts running. The big brother follows him but
is unable to catch him using
every way.

Running with super energy the boy dives into the river. ...the big brother also dives in
Not to be left behind... the river but ultimately stops
when he gets tired

COMPETITOR ANALYSIS

The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu
and Himani, which together with Dabur have about 85% of India's domestic market.
39
Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of
FMCG. It was established in 1884, and had grown to a business level in 2003 of about
650 million dollars per year, though only a fraction of that is involved with Ayurvedic
medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried
to analyse the competition for Dabur in the Chyawanprash segment as follows:

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in
Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into
the FMCG sector with cosmetic and hair care products; one of its international products
is Shikakai (soap pod) Shampoo.Its Chyawanprash has a market share of 10%.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an

18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930,
pharmaceuticals were added, but the pharmaceutical division was separated off about 30
years later).

The Emami Group, founded in 1974, provides a diverse range of products, doing 110
million dollars of business annually, though only a portion is involved with Ayurvedic
products, through its Himani line; the company is mainly involved with toiletries and
cosmetics, but also provides Chyawanprash and other health products. Its market share is
12%.

CONSUMER QUESTIONAIRRE-DABUR
CHYAWANPRASH

Dear Respondent,

40
Thanks for sparing few minutes to fill this questionnaire, which will help us to study the
consumer perception for chyawanprash.

Any information provided by you will strictly be used for Academic Purpose.

1. Which brands of Chyawanprash are you aware of?

• Zandu
• Himani
• Baidyanath
• Dabur

2. Which brand of Chyawanprash do you use?

• Zandu
• Himani
• Baidyanath
• Dabur

3. Where would you rate your brand on a scale of 1 – 5 (5 being highest)?

• 1
• 2
• 3
• 4
• 5

4. What are the primary reasons for which you use this particular brand?
• Health
• Brand Loyalty
• Taste
• Price

5. How did you get to hear about this brand?

• TV
41
 • Internet
• Word of Mouth
• Print

6. If your brand is not available you would..?

• Purchase another brand
• Wait for it to be available
• Go for a substitute
• Buy what is offered by the retailer

7. Which pack size do you prefer?

• 1 kg
• 500 gm
• 250 gm

8. On what parameters do you choose this pack size?

• Availability
• Price
• Family size
• Storage

42
 9. How often do you buy?
• Once a month
• Once in two months
• Once in six months

10. Are you satisfied with your brand?

• Yes
• No

CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL
100

80

60

40 PERCENTAGE

20

0
ZANDU HIMANI BAIDYANATH DABUR

PREFERRED BRAND
60

50

40

30
PERCENTAGE
20

10

0
ZANDU HIMANI BAIDYANATH DABUR

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 SATISFACTION LEVEL
5

2 RATING(1-LOW 5-HIGH)
1

0
ZANDU HIMANI BAIDYANATH DABUR

REASONS FOR SELECTING A PARTICULAR BRAND

70
60
50
40
30
PERCENTAGE
20
10
0
HEALTH BRAND TASTE PRICE
LOYALTY

HOW DID YOU COME TO KNOW ABOUT THIS BRAND.

80
70
60
50
40
PERCENTAGE
30
20
10
0
TV INTERNET WOM PRINT

44
UNAVAILABILITY OF PREFERRED BRAND
40
35
30
25
20
15
PERCENTAGE
10
5
0
PURCHASE WAIT BUY WHATEVER
ANOTHER SUBSTITUTE OFFERED BY
BRAND RETAILER

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

100

80

60

40 PERCENTAGE

20

0
ZANDU HIMANI BAIDYANATH DABUR

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2. Out of these which are the most preferred?

80
70
60
50
40
30 RATING(1-LOW 5-HIGH)
20
10
0
ZANDU HIMANI BAIDYANATH DABUR

3. According to you what are the reasons for customers’ preferences?

60
50

40
30
PERCENTAGE
20

10
0
brand loyalty price availability no reason

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 DISTRIBUTION
Supply chain: Dabur has steadily improved its procurement and distribution systems to
achieve a significant reduction in material costs. Dabur has an extensive supply chain and
distribution network that has grown and spans 29 factories, 47 stocking points, 4 zonal
offices, a dozen manufacturing locations, six mother-warehouses and over 50
Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKU’s to
several thousand stockists and dealers.
MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays as-
of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages
meet almost all reporting requirements and make this a single source of MIS for all levels
of decision makers.
VSATs: This Success paved the ground for the company's supply chain initiative. Fifty-
five Ku Band TDMA VSATs were used to link primary distributors to the system.
Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs.
At some locations VPNs had to be used because it was not possible to set up a dish. The
integrated primary and secondary system has a number of unique features. The features
like tight integration of schemes, stockist’s credit limit control, automated banking of
cheques, and online cheque reconciliation have obvious advantages in the primary
distribution. These are basically extensions to the MFG/PRO ERP system and not core
customizations. The integrated system allows each Area Manager to plan for the month's
sales forecasts, stockists performance, and sales officers' performance. The integration
allows better control on pipelines in primaries and secondaries, brings down inventories,
and offers better control on production and sales against a confirmed forecast. The idea is
to increasingly shift focus from primaries to secondaries. Schemes based on secondary
volumes will help control secondary pipelines and sales. Primary sales will therefore
come from a resultant 'pull' from secondary replenishments. Further, sales order servicing
can be improved by taking orders through the Internet, and by setting stocking norms and
replenishing stocks to improve ROI of stock holders.

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ANSOFF’S PRODUCT MARKET EXPANSION GRID

MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan and,

for the first time, Vivek Oberoi, makes an aggressive attempt to establish the relevance
of Chyawanprash in an increasingly tough and demanding lifestyle, for the entire family.
As a market leader, Dabur’s focus has been to increase the relevance of this time-tested
and proven product in the family - both for users and non users - and increase
penetration. In their new campaign they have tried to establish the fact that
Chyawanprash, with its ‘well - being’ properties, gives an edge to the users and dispel the
myth that it should be consumed in illness or is meant only for Children or the aged.

MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for
the future. An international business division has been set up within the company to
promote exports and it expect this business to grow steadily in the coming years. The
company plans to focus on Russia and CIS countries along with Afghanistan, West
Indies and the Asia Pacific region. It has also entered the North American markets by
appointing distributors and initiating marketing of products to the ethnic Indian segment.
The company has already been exporting hair oils, shampoos and Hajmola candies to
Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a local partner to
manufacture and market its products. Dabur will hold a majority stake in this joint
venture.

48
 BOSTON CONSULTANCY GROUP’S GROWTH
SHARE MATRIX

↓ DABUR

In the past, the sheer diversity of Dabur's product portfolio has made an evaluation of
the company's prospects quite difficult.

Dabur's FMCG business contributes over 70 per cent of Dabur India's current revenues.
Within the FMCG business, Dabur India focusses on three key product groups — family
products, healthcare and FMCG exports. The family products portfolio boasts of quite a
few market leading brands — Dabur Amla and Vatika hair oils, Vatika shampoo, Dabur
Honey, and Dabur Lal Dant Manjan.

Dabur India also has well-recognised brand names and an established distribution set-up
in the healthcare business with brands such as Dabur Chyawanprash, Hajmola, Pudin
Hara and Dabur Lal Tail. Given Dabur's acknowledged strengths in ayurvedic
healthcare, the scope for expansion in each of these product baskets is considerable.

Though in the recent years, the growth from Dabur's FMCG portfolio has been
sedate, due to sluggish rural demand and intense competition from a host of regional

49
brands and counterfeit products. However Dabur's operating profit margins have been
more or less constant over this period.

However, the FMCG business is Dabur's cash cow contributing over 70 per cent of
Dabur India's current revenues. The business has consistently generated high cash
flows and called for minimal incremental investments. The overall growth in hair oil
industry has been 7% whereas growth in branded coconut oil has been 10%.Vatika
hair oil has a market share of 19% and Dabur Chyawanprash has a 61% market
share and is the market leader. Both of these are therefore Dabur’s cash cow.

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THE NEW DABUR ENTITY

The New Dabur Identity modernizes the 100-year old equity of the
Dabur brand by subtly transforming the tree. While it retains the essence of the banyan
tree, it now projects a contemporary image, in consonance with today's lifestyle.

The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and
protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a
symbol of fertility. The new Dabur identity retains these enduring and valuable attributes,
while it adds a fresh, healthy and holistic dimension to the tree.

The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's
heritage, commitment and stability through the form and colours of the tree; its branches
and leaves. It also conveys that the brand stands for wellness across age groups.Taken as
a whole, the tree appears well rooted, implying stability; and its abundant canopy implies
that it can provide amply for those who seek its produce and shade. Further, the entire
image, being well-proportioned, evokes a harmonious, well-balanced, wholesome and
holistic brand.

In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a
heaven for creatures it generously harbours in its foliage, as well as in the shade of its
canopy. The tree is held auspicious as it spreads through the three spheres with its roots
meshing through the earth, its trunk rising through the terrestrial world and its branches
reaching into the heavens. This symbolism also occurs in cultures across the world.

Keeping these vital associations in mind, the tree in the new Dabur identity has been
carefully created to communicate Dabur's invaluable 100-year old legacy

51
 RECOMMENDATIONS
 Focus on growing core brands across categories.
 Reaching out to new geographies, within and outside India.
 Improve operational efficiencies by leveraging technology.
 Be the preferred company to meet the health and personal grooming needs of our
target consumers with safe, efficacious, natural solutions by synthesizing the deep
knowledge of ayurveda and herbs with modern science.
 Provide consumers with innovative products within easy reach.
 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could
start a venture called Vatika hair care centre which would provide total hair care
solutions. It could have hair care experts to solve hair problems. Services could
include dandruff treatment, straightening of hair, treatment for split ends,etc.
 Position Dabur Chyawanprash as not more of a medicine but as something which is
necessary for health.
 More initiatives like “Dabur ki Deewar” to
increase brand visibility. It is an initiative to
occupy shelf space.

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 RESEARCH METHODOLOGY

As the purpose of the project report is to analyse the consumable products successfully
launched in the last three years. The data was collected both with the help of primary as
well as secondary sources.

For primary data, I proceeded with the drafting of the questionnaire for consumers was
structured as undisguised, & Personal -interview retailers. Distributors & wholesalers and
it was handed personally by me to the respondents to be analyzed.

The questionnaire method was used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained by just asking the
questions.

c) Questioning is usually faster and cheaper.

d) Moreover, there is more control over data gathering activities.

Secondary data was also collected personally by me, which the company has furnished
for the general public. The secondary data was gathered with the help of various
magazines, newspapers, journals, brochures and also through the internet. For secondary
sources no field work was employed.

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
gauge the market opinion.

53
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.

54
For Dabur Chyawanprash and Vatika hair oil.

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 questionnaires were
distributed to the respondents and the data was collected through primary and secondary
sources.

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

55
 CONCLUSIONS

The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed
Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and
several

Other herbs and herbal extracts. The market. The consumer’s patriotic love for tea and
coffee is unfared. Chyawanprash 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 dabur has hit off rather well with the masses. Dabur has clearly lost it head start
advantage and thereby acquiring just 35% of the market share while others enjoy rest of
the market share. This could be well attributed to dabur 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 Chyawanprash and vatika hair oil brand .The brands
such as that of Chyawanprash by vednath, Chyawanprash with its ‘sonacahndi,
‘Minute- made’ and also US food giantssDel Monte are ready to hit the Chyawanprash
market very soon.

Vatika hair oil has no major competition except an Australian Product Tobasco. As a
new product so people are not able to digest it yet Dabur is getting 8 crores from Vatika
hair oil in which accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .

As the strategies of the companies keeps on changing, be it in Chyawanprash 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 Chyawanprash 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 Dabur brand so that
customers of other Juice brand should switch from other brand to Dabur brand.
56
As vatika hair oil 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 market should use the vatika hair oil and adopt it in making daily
food thereby increasing the market share of vatika hair oil.

57
 REFERENCES

Books:

Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller

Websites:

www.google.com
www.dabur.com
www.tutor2u.net
www.brandchannel.com
www.blonnet.com
www.superbrandsindia.com

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