ASSIGNMENT

OF
MARKETING
MANAGEMENT
ON

SUBMITTED TO:
MISS. SONALI PUNJ
SUBMITTED BY:
MUKESH VERMA
BBA-MBA (INTG.)
IIIrd SEM.
R346A29
 INTRODUCTION

Dabur India Limited is India’s fourth largest FMCG Company. The first Dabur plant was set up in
1896 and research laboratories established in 1919. Dabur became a public limited company in
1986. In 1998, the Burman family, the original promoters, handed over the day-to-day running of
the company to professionals. With effect from 1 April 2005, Balsara Home Products became a
subsidiary of Dabur. Apart from Balsara, Dabur has five other subsidiaries — Dabur Foods, Dabur
Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma. Dabur ended Q1 2008-09 with a net
profit of Rs 70.14 crores.

Business

Dabur’s product range encompasses health care, personal care, ayurvedic specialities and food
segments.

Brands

Well-known brands include Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care and
Pudin Hara.

Location

Dabur has been marketing its products in more than 50 countries all over the world. The company
has offices and representatives in Europe, America and Africa. Manufacturing facilities are spread
across three overseas locations.
 PROFILE OF DABUR

Type Public (NSE, BSE)

Founded 1884

Headquarters Ghaziabad

Key people V. C. Burman

Industry Health Care, Food

Dabur Amla, Dabur Chyawanprash,

Products
Vatika, Hajmola & Real

Revenue Rs 1375,03 crore

Website www.dabur.com
 NEWS RELATING TO DABUR

1. Big B, Dhoni to feature together in Dabur ad campaign

New Delhi, Dec 18 (PTI) FMCG firm Dabur India today said cricketer Mahendra Singh Dhoni and
Bollywood star Amitabh Bachchan would appear for the first time together in an ad campaign to
promote its honey brand.
Bringing the two celebrities together for the first time, the company said the campaign would make
an "aggressive" pitch to establish the relevance of Dabur Honey in an increasingly tough and
demanding lifestyle.

2. Hold Dabur India, target of Rs 89: PINC

PINC Research has recommended a hold rating on Dabur India with a target of Rs 89 in its December 18, 2008
research report. "The company acquired 72.15% stake in Fem Care Pharma Ltd. (FCPL) in Nov'08 for Rs 2.04 billion.

3. Dabur launches Hajmola Pudina

In a bid to push the growth of its Hajmola brand, homegrown FMCG company Dabur India has
extended the digestive range with the launch of a new variant - Hajmola Pudina. Further, the
company also plans to undertake a host of consumer connect initiatives - by way of tie-ups with
Highway Dhabas - to increase frequency of consumption by promoting post-meal consumption.

4. Anand Rathi Securities maintains SELL on Dabur

5. Dabur to integrate Fem Care by March - official MUMBAI

(Reuters) - Personal care products maker Dabur India Ltd said Fem Care Pharma will become
subsidiary of the company around March 2009, a top official said. Dabur, which bought a 72.15
percent stake in the fairness bleach maker, had said it would make an open offer for 20 percent in
Fem Care. Shares of the company were down 5.36 percent at
80.4 rupees each in a weak Mumbai market.

6. Dabur’s growth appetite

Dabur’s recent acquisition of skincare brand Fem and the price it paid for it, Rs 203 crore, has
raised a few eyebrows. But the FMCG company, that owns popular brands such as Chyawanprash,
Vatika hair oil and Hajmola amongst others, has met with such reactions in the past too, when it
acquired the Balsara range of products.

7. Dabur freezes retail expansion plan

FMCG major Dabur India has decided to hold back the expansion plan of its newly launched retail
arm with an aim of capitalising more from further downslide in retail rentals that the company is
expecting.
 CHANGE IN MARKETING MIX OF DABUR

1. PRODUCTS

The company has decided to enter businesses of soups and tomato puree under the
Hommade brand and fruit drinks under Coolers. As
the all companies are trying to cover the market by launching the new product therefore Dabur is
also trying to cover the marker with the launch of `Coolers', a fruit-based beverage in a ready-to-
drink format, Dabur Foods Limited on Thursday introduced its new brand in seven years. After
major success of its `Real' brand of fruit juices, through `Coolers' the company hopes to corner a
chunk of beverages market that protects from excessive effects of heat during summer. The
company invested Rs. 12 crores for the development of the new brand, which will be available in
three variants — Aam Panna, Pomegranate and Watermelon — while Jamun drink will be
launched shortly. `Coolers' brand of products will be 25-30 per cent cheaper than the `Real' juices.

The new offering will be initially available in top 30 towns and 50,000 outlets. In the second
phase, the distribution network would be expanded to 50 towns and one lakh outlets. The company
enjoys 55 per cent market share in the Rs. 120-crore fruit juice market.

Dabur is planning to expand: Aiming to tap the fast growing home cleaning products market in
the country, homegrown FMCG major Dabur is planning to expand its range of kitchen and home
cleaners and freshners.

Dabur launches Hajmola Pudina: As I have mentioned in the previous page that Dabur launched
the Hajmola Pudina In a bid to push the growth of its Hajmola brand, homegrown FMCG company
Dabur India has extended the digestive range with the launch of a new variant - Hajmola Pudina.
Further, the company also plans to undertake a host of consumer connects initiatives - by way of
tie-ups with Highway Dhabas - to increase frequency of consumption by promoting post-meal
consumption.

2. PRICE

Price is one of the most effective marketing tools to promote a business because price conveys
image, affects demand, and can help target a market segment. ... Every marketing strategy will
have its own related pricing strategy.

After running as a family business for over 100 years, when in late 1990s, the management of the
Dabur was handed over to a team of professional managers, the new management faced a gigantic
task of improving performance in several critical areas. In particular, working capital and cost
management required urgent attention as the company's performance in these areas had been far
from satisfactory. The then prevailing current ratio of 3:2 and quick ratio of 2:4 were considered
too high and indicative of heavy unnecessary investments in working capital that would have a
negative effect on company's profitability.

Efforts to improve the working capital efficiency were met with stiff resistance from various
quarters, but finally yielded results. The case study discusses the measures taken to improve the
working capital and cost management performance, and how with concerted efforts the
management turned around a highly inefficient working capital management into one of the most
efficient in the FMCG sector of the Indian industry. In fact, the company seemed to have taken the
matter to the other extreme of negative working capital, with the current ratio declining to 0:8 and
the quick ratio to just 0.4 in 2004–05.

3. PLACE

Shopkeepers selling Dabur India's consumer products would now learn marketing through role-
plays staged by professional actors at their shops. As part of a recent initiative titled Astra,
advanced sales training for retail ascendance, FMCG major has recruited 75 sales and HR
managers across the country who would educate over 2,000 distribution channel partners of the
firm about the complexities of sales and distribution through the audio-visual medium.

Dabur is targeting sales growth of above 15 per cent after implementing Astra, which was unveiled
in May, and expects nearly 40 per cent growth in sales through modern trade and institutions, like
hotels. The company also will keep a tab on its performance on a monthly and quarterly basis.

Dabur has a distribution reach of 25 lakh retail outlets across the country. About 75 per cent of the
company's sales come form rural areas, hence, it has created the Astra training consultancy module
in five vernacular languages, Bengali, Tamil, telungu, Malayalam and Kannada. The company also
expects rise in consumer spending in the rural areas and plans to spread the initiative in the rural
market.

Changing retail landscape in the country has compelled FMCG companies to relook at their sales
and distribution models.

Under Astra, Dabur has categorised its sales and distribution channels into finer segments, such as
key grocers, mass grocers, chemist, wholesale, small outlet and modern trade.

The programme will address specific needs and expectations of each channel in the areas such as,
trade activation programmes, trade promotion programmes, brand/SKU focus, merchandising and
managing channel conflict.

Astra is a step ahead of Dare, driving achievement of retail excellence, introduced by the company
in 2006. Dare was aimed at leveraging Dabur's brands performance in modern retail. Astra will
encompass all the distribution channels including modern retail.

4. PROMOTION

DABUR is focusing on the customer service and to serve their customers they are customizing
their products according to the customers needs. Customized Marketing To
customize = to build, fit, or alter according to individual specifications. Customized service
Customized service firms offer a variety of research services that are tailored to meet the clients
specific needs.
DABUR Foods has identified several new product areas it will enter to meet the Rs 200-crore
turnover target it has set for itself by 2006-07.

The company is targeting a 10 per cent market share of the Rs 1,500 crore home cleaning products
segment in the country, over the next two years.
For the promotion of the company Dabur is developing the communicating information between
seller and potential buyer or others in the channel which will influence consumer’s behavior

Integrated Marketing Communication on Pharmaceutical industry Integrated Marketing

Communication (IMC) means involves coordinating the various promotional elements and other
marketing activities that communicate with a firm’s customers

Effects of Reccesion on Dabur

There is no doubt that the world economic outlook has turned unfavourable. According to a recent
report by the International Monetary Fund (IMF), the world GDP growth estimates have been cut
to 3.7 per cent for 2008 and 2.2 per cent for 2009, which is significantly lower as compared to 5
per cent achieved in 2007.

1. Due to the reccesion Dabur India Ltd. is one of the leading FMCG companies in India. The
company has a market capital of Rs. 6,532.01 corers and is next to Hindustan Unilever Ltd,, who
has a market capital of Rs 43,386.21 crores in the country. The financial health of the company is
to be measured based on the combination of a number of factors, such as profitability, short-term
liquidity and long term liquidity. The key profitability ratios that reflects the business environment
at present s given below; Return on Total Assets (ROTA) 36.04% Return on capital employed
(ROCE) 58.12% Net profit margin 15.07%

As FMCG companies reel under inflationary and rising input costs pressures, homegrown major
Dabur is turning to its employees to improve productivity and cost saving by rewarding them for
their engagements in decision making.

2. As FMCG companies reel under inflationary and rising input costs pressures, homegrown major
Dabur is turning to its employees to improve productivity and cost saving by rewarding them for
their engagements in decision making.
Under a programme 'Applause' Dabur is recognising employees in different categories, including
the trailblazer employee, the best newcomer, best suggestion for their actions which are innovative,
save cost, promote team spirit, institute new initiative and raise standards of performance.

3. The FMCG sector is largely a domestic consumption story, with exports contributing around 4-
5 per cent of total sales. However, for companies like Tata Tea, Dabur and Godrej Consumer, the
contribution of their overseas subsidiaries is significant (over 20 per cent of sales). These
companies haven't observed any slowdown from their international operations. Says Amit Burman,
vice chairman, Dabur India, “The international business is, in fact, the fastest growing business
division within Dabur, growing at almost three times the domestic growth rate.”