Marketing Strategy of Dabur Vatika Hair Oil & Dabur Chyawanprash

PROJECT REPORT

ON

“MARKETING STRATEGY OF DABUR VATIKA

HAIR OIL & DABUR CHYAWANPRASH”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF

BACHLEOR OF BUSINESS ADMINISTRATION( 2008-2011 )

SUBMITTED BYMR. KUSHAL DUA

Roll No: 9342624UNDER THE GUIDANCE OF

SWATI SINGH

CERTIFICATE

This is to certify that the Dissertation entitled Marketing Strategy of Dabur Vatika

Hair oil & Dabur Chawanprash is a bonafide record of independent research work done by

KUSHAL DUA (Roll No:9342642) under my supervision during 2009-2010, submitted to

SWATI SINGH, ITS MOHAN NAGAR (GZB) in partial fulfillment for the award of the Degree

of BACHLEOR OF BUSINESS ADMINISTRATION and that the dissertation has not

previously formed the basis for the award of any other degree, Diploma, Associate ship,

Fellowship or other title.

Signature of the supervisor

2

MARKETING MIX FOR DABUR VATIKA HAIR

OIL AND DABUR CHYAWANPRASH

3

ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Marketing

Strategy of Dabur Vatika Hair Oil & Chyawanprash”. The work would not

have been possible to come to the present shape without the able guidance,

supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and

guidance received by my guide Dr. A.K. Srivastava (Director) and other staff

members of Dabur India Ltd.

I convey my heartful affection to all those people who helped and

supported me during the course, for completion of my Research Report.

4

DECLARATION

I, KUSHAL DUA hereby declare that the dissertation entitled “Marketing Strategy of

Dabur Vatika Hair oil & Dabur Chayawanprash” submitted to SAWTI SINGH, of ITS

MOHAN NAGAR (GZB) in partial fulfillment for the award of the Degree of BACHLEOR OF

BUSINESS ADMINISTRATION and that the dissertation has not previously formed the basis

for the award of any other degree, Diploma, Associate ship, Fellowship or other title.

Place:

Date: Signature of the candidate.

5

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

2. INTRODUCTION

COMPANY PROFILE

PRODUCT PROFILE

3. OBJECTIVE

4. RESEARCH METHODOLOGY

MARKETING RESEARCHSAMPLING

5. ANALYSIS

6. FINDINGS

7. SWOT ANALYSIS

8. CONCLUSION

9. RECOMMENDATIONS

10.APPENDICES

11. BIBLIOGRAPHY

6

EXECUTIVE SUMMARY

This report aims at analysing 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 analyse 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.

7

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 Rise 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.

9

COMPANY HISTORY

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 septante divisions

1997 Foods Division / Project STARS

1998 Professionals to manage the Company

2000 Turnover of Rs.1,000 crores

10

http://www.dabur.com/en/about/company/history.asp#%23

















PRODUCT LINE

Foods

Real

Real Activ

Hommade

Lemoneez

Capsico

Health Care

Baby Care

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

Health Supplements

Dabur Chyawanprash

Dabur Glucose D

Digestives

Hajmola Yumstick

Hajmola Mast Masala

Anardana

Hajmola

Hajmola Candy Fun2

11

Hajmola Candy

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

Natural Cures

Shilajit Gold

Nature Care

Sat Isabgol

Shilajit

Ring Ring

Itch Care

Backaid

Shankha Pushpi

Dabur Balm

Sarbyna Strong

Personal Care

Hair Care Oil

Amla Hair Oil

Amla Lite Hair Oil

Vatika Hair Oil

Anmol Sarson Amla

Anmol Silky Black Shampoo

VatikaHennaConditioning Shampoo

12

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

DaburBinaca Toothbrush

Skin Care

Gulabari

Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

RURAL AND URBAN POTENTIAL

13

RURAL-URBAN PROFILE 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$ 14.6 billion in 2008 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 are

expected to rise from 145 million in 2007-08 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$ 14.5 billion in 2007-08. With growing incomes at

both the rural and the urban level, the market potential is expected to expand further.

Urban Rural

14

Population 2007-08 (mn household) 53 145

Population 2009-10 (mn household) 69 153

% Distribution (2007-08) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3

Source: Statistical Outline of India (2008-09), 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.

15

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 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, 2007).

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).

17

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.

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 urban pollution,

frequent change of diet due to geographical mobility and other factors. Beset by

modern-day hair problems, they are far more inclined to rely on homegrown

remedies. By offering hair oil that combined the benefits of natural products in a

single pack, Vatika created a niche for itself as the ‘total hair care’ brand.

18

“Natural” offering:

Vatika is a brand that espouses traditional wisdom about health in a modern

format. It believes that nature has perennial answers to day-to-day health issues,

particularly when it comes to hair care and skin care. In a world where modern

living causes untold stress the Vatika brand holds out the promise of providing

natural ingredients that rejuvenate and safeguard the human body in an

extraordinary way. This concept is put to work through contemporary, modern

products, offered by Vatika.

The Vatika woman:

The Vatika woman is young, contemporary, educated, multi-faceted, achievement-

driven and confident. It is in the Vatika brand that she sees a true reflection of her

own personal ideals. Through creation of the concept of Vatika woman, it has tried

to carve out a new positioning in the minds of the new age woman.

19

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

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit

Terms

• Advertising &

Promotion

• Public Relations

• Sponsorships

• Internet

Marketing

• Channels

• Location

• Inventory

20

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, and ugdha 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 colors, 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.

Available in:

21

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/QUALITY MATRIX

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

VATIKA

Ideal For

Penetration

Premiere

Offering

MiddleOverpriced Average Real

Bargain

LowMake The

Sale and Run

Unhappy

Customers

Cheap

Goods

22

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:

Distribution Network

Central, North & South America

Australia

Asia

Middle East

North & South Africa

East & West Europe

23

http://www.dabur.com/en/exports/Network/Europe.asp

http://www.dabur.com/en/exports/Network/Africa.asp

http://www.dabur.com/en/exports/Network/MiddleEast.asp

http://www.dabur.com/en/exports/Network/Asia.asp

http://www.dabur.com/en/exports/Network/Australia.asp

http://www.dabur.com/en/exports/Network/America.asp

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.

In 1997, the company created a new promotion campaign, which reinforced the

obvious fact that most coconut oil brands were, not equipped to combat the effects

of pollution, hard water and chemicals – the major causes of hair ailments and

hair deterioration.

25

STP ANALYSIS OF DABUR CHYAWANPRASH

SEGMENTATION

Dabur Chawanprash 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

26

POSITIONING

"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By using a

natural language instead of scientific language it is able to connect with the consumers

and is able to achieve a better positioning in the minds of the Indian health conscious

consumer. A category like Chyawanprash for instance needs to understand that in

employing the category language it loses any chance of expressing its own benefit

distinctively.

Holistic Health benefit of Ayurveda: 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. The brand conveys this health conscious holistic view of the

product.

Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection,

processing and quality control of right herbs along with scientific and clinical studies –

makes DCP a trustworthy offering for consumers. Consumers view DCP as a product

by a trusted brand and therefore do not need to think twice before making a purchasing

decision.

27

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

28

• Product

Variety

• Quality

• Design

• Features

• Brand

Names

• Services

• List Price

• Discount

• Financing

Schemes

• Credit

Terms

• Advertising &

Promotion

• Public Relations

• Sponsorships

• Internet

Marketing

• Channels

• Location

• Inventory

PRODUCT

Dabur Chawanprash 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

29

Gooseberry) acts as an anti-oxidant and immune-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 Chawanprash

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.

Available in:Dabur Chyawanprash is available in three sizes to cater to the needs of different types

of people.

1. One kilogram pack

2. 500 gram pack

3. 250 gram pack

PRICE

The pricing of Dabur chyawanprash is very competitive. Dabur chyawanprash uses

second-degree price discrimination i.e. more the quantity, lower the price.

30

http://www.dabur.com/EN/Ayurveda/herbalGarden/details.asp?herbName=Ashgandh

http://www.dabur.com/EN/Ayurveda/herbalGarden/details.asp?herbName=Amla

1kg Rs.175.00

500gms Rs.100.00

250gms Rs.

55.00

PRICE/QUALITY MATRIX

Price→

Quality

↓

High Middle Low

High

Luxury

Segment

Ideal For

Penetration

DABUR

CHYAWANPRASH

Premiere

Offering

MiddleOverpriced Average Real

Bargain

LowMake The

Sale and Run

Unhappy

Customers

Cheap

Goods

PLACE

31

Dabur has a very wide distribution of its products through 1.6 million retail outlets and

50 C & F agents all over India who distribute products to the retailers. A distribution of

C & F agents and manufacturing locations is given below.

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

Distribution Network

Central, North & South America

Australia

Asia

Middle East

North & South Africa

East & West Europe

32

http://www.dabur.com/en/exports/Network/Europe.asp

http://www.dabur.com/en/exports/Network/Africa.asp

http://www.dabur.com/en/exports/Network/MiddleEast.asp

http://www.dabur.com/en/exports/Network/Asia.asp

http://www.dabur.com/en/exports/Network/Australia.asp

http://www.dabur.com/en/exports/Network/America.asp

PROMOTION

The main form of promotional activities of Dabur chyawanprash is concentrated

towards advertising and it has legible sales promotional activities.

Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective buyers.

Ads are necessary because the images are still mould able and fluid and the consumer’s

sophistication level is low. Dabur chyawanprash is advertised on print media as well as

on television.

The company has launched three ads, one each with Amitabh, M.S.DHONI and Vivek,

in national electronic media followed by a series of print media campaign directed

towards creating awareness to educate people about the holistic benefits of

Chyawanprash.The ads have been created by McCann Ericsson and the company

would be spending close to Rs 10 crore in promotional campaign this year. The ads

would also be translated in Bengali. These advertisements are supposed to target the old

and the younger generation respectively.

.

34

COMPETITOR ANALYSIS OF VATIKA

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 players 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:

36

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.

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 targets have been women of all age. 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.

37

COMPETITOR ANALYSIS OF CHYAWANPRASH

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.

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:

38

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

39

OBJECTIVE OF THE STUDY

Following are the major objective of study: -

1. To study the Consumer, Buying behavior of Dabur Chyawanprash

2. To study the problems faced by Consumer of Dabur Product.

Seasonal Demand( like chyawanprash in winter and Vatika not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

Limited differentiation (Vatika)

Unbranded players account for the 2/3rd of the total market(Vatika)

3. To study the awareness regarding the dabur product-(Chyawanprash & Vatika Hair

oil).

4. To study the level of satisfaction of consumer regarding the dabur products.

5. To study the preferred package size of the Dabur Chyawanprash & Vatika hair oil.

6. To study a retailers preference towards Dabur Chyawanprash & Vatika hair oil.

7. To study the preference of consumer towards these Dabur Brands.

42

RESEARCH METHODOLOGY

As the purpose of the project report is to analyse the consumable products successfully

launched in the last three years.

In order to find out current position of dabur chyawanprash & Dabur Vatika

Hair Oil. A survey was conducted where response of retailer & consumer was

seen.

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. I handed distributors &

wholesalers and it personally to the respondents to be analysed.

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,

44

newspapers, journals, and brochures and also through the Internet. For secondary sources no

fieldwork 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.

The questionnaire was of multiple choices 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 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 fieldwork was employed to gather the information. The questionnaires were

distributed to the respondents and the data was collected through primary and

secondary sources.

45

CUSTOMER SURVEY RESULTS

DABUR VATIKA

AWARNESS LEVEL

INTERPRETATION

It was observed that 90% customers award about the dabur vatika hai

PREFERRED BRAND

INTERPRETATION

It was observed that 30% customers preferred the dabur vatika among the wide range of hair oil.

47

SATISFACTION LEVEL

INTERPRETATION

It was observed that the satisfaction levels are high about the quality of the vatika hair oil.

REASON TO BUY THE PREFFERED BRAND

INTERPRETATION

It was observed that the reason to buy vatika hair oil is non-sticky 45%, brand loyalty 20% fragrance 10% & price 30%.

48

UNAVAILABILITY OF PREFERRED BRAND

INTERPRETATION

It was observed that 25% customers could wait in case of unavailability the dabur vatika hair oil.

PREFERRED PACK SIZE

INTERPRETATION

It was observed that 55% of customers preferred 150ml, 20% of 75ml & 25% of customers preferred 300ml pack of the dabur vatika hair oil.

49

REASON TO SELECT PREFERRED PACK SIZE

INTERPRETATION

It was observed that 40% of customers preferred because of availability, 25% for price, 15% for family size & 20% of customers for storage.

FREQUENCY OF PURCHASE

INTERPRETATION

It was observed that 5% of customers buy within the 15days, 32% of within the 1 month & 63% of customers buy the hair oil after the 2month.

50

RETAIL SURVEY RESULTS

DABUR VATIKA

1. Which brands of Hair Oil do you stock?

INTERPRETATION

It was observed that 75% of total stock of hair oil is dabur vatika hair oil

2. Out of these, which are the most preferred?

INTERPRETATION

It was observed that 35% of total customers mostly preferred the dabur vatika hair oil.

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

INTERPRETATION

It was observed that the reasons for preferred are brand loyalty 50% availability 5% & price 20%.

4. What is the profile of your typical consumer?

INTERPRETATION

It was observed that 20% from high-class income, 50% from middle class income group & 30% from low income.

52

5. What schemes are you offered by the companies?

INTERPRETATION

It was observed that schemes that are mostly provided by the companies are price discount 40%, buy one get one 35% & others are 25%.

6. What schemes does a consumer prefer most?

INTERPRETATION

It was observed that schemes that are mostly preferred by the customers are price discount 60%, buy one get one 25% & others are 15%.

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

INTERPRETATION

It was observed that advertisings have an affect on the consumers’ preference yes-40% and No 60%.

8. Does a change in price affect their preferences

INTERPRETATION

It was observed that price changes might be affected the sales by

54

CUSTOMER SURVEY RESULTS

DABUR CHYAWANPRASH

AWARNESS LEVEL

INTERPRETATION

It was observed that 100% of the customers already award about the DABUR CHYAWANPRASH

PREFERRED BRAND

INTERPRETATION

It was observed that 60% of the customers preferred the DABUR CHYAWANPRASH

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SATISFACTION LEVEL

INTERPRETATION

It was observed that the satisfaction level are high of the customers about the DABUR CHYAWANPRASH

REASONS FOR SELECTING A PARTICULAR BRAND

INTERPRETATION

It was observed that 65% of the customers buy for the purpose of health, 20%of for brand loyalty, 10% of customers for price & 5% of customers for taste.

HOW DID YOU COME TO KNOW ABOUT THIS BRAND?

INTERPRETATION

It was observed that 80% of the customers award about the DABUR CHYAWANPRASH through TV, and others through media, internet UNAVAILABILITY OF PREFERRED BRAND

56

INTERPRETATION

It was observed that 40% of the customers could wait in case of unavailability of DABUR CHYAWANPRASH.

PREFERRED PACK SIZE

INTERPRETATION

It was observed that 50% of the customers preferred 500ml pack, 30% of customers preferred 1kg pack and 20% of customers preferred to buy 250ml pack of DABUR CHYAWANPRASH

REASON TO SELECT PREFERRED PACK SIZE

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INTERPRETATION

It was observed that 20% of customers preferred because of availability, 40% for price, 25% for family size & 15% of customers for storage.

FREQUENCY OF PURCHARE

INTERPRETATION

It was observed that 30% of customers buy within the 15days, 55% of within the 1 month & 15% of customers buy the hair oil after the 2month.

58

RETAILER SURVEY RESULTS

DABUR CHYAWANPRASH

1. Which brands of Chyawanprash do you stock?

INTERPRETATION

It was observed that 90% of total stock of CHYAWANPRASH is dabur


INTERPRETATION

It was observed that 80% of total customers mostly preferred the DABUR CHYAWANPRASH


59

INTERPRETATION

It was observed that 55% of the customers buy for the purpose of brand loyalty, 30% of customers for price & 5% of customers for availability.


INTERPRETATION

It was observed that 20% from high-class income, 65% from middle class income group & 15% from low income.

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INTERPRETATION

It was observed that schemes that are mostly provided by the companies are price Discount 55%, buy one get one 5% & others are 40%.


INTERPRETATION

It was observed that schemes that are mostly preferred by the customers are price discount 70%, buy one get one 20% & others are 10%.

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

INTERPRETATION

It was observed that advertisings have an affect on the consumers’ preference yes-30% and No 70%.

8. Does a change in price affect their preferences?

INTERPRETATION

It was observed that price changes might be affected the sales by 60%.

62

LIMITATION S

Training is a costly affair for the management. It needs a handsome amount and long time. So

management has to play safe game for the benefits of the company as well as the workers.

One wrong decision may enforce the company to fall into deep troubles. So selecting the

weak areas of staffs and workers should be done very carefully. For that the management

should be conduct a test.

For providing an effective training, company requires a knowledgeable trainer. Selecting a

particular trainer is again a difficult job. Trainer demands handsome money. Training needs

time and cost both.

To conclude, it is very clear that training should be provided but not at the loss of the

company. It is very costly and time taking affair. But it is most important for the development

of the company. So management can’t avoid it at any cost.

Due to lack of time (i.e., Two months) it is not possible to reach all respondents.

The lack of availability of time on the respondent’s part.

Some respondent’s was biased.

Unwillingness of the respondents.

I tried to overcome on these limitations.

64

SWOT ANALYSIS OF DABURSTRENGTHS

Strong presence in well defined

niches( like value added Hair Oil and

Ayurveda specialities)

Core knowledge of Ayurveda as

competitive advantage

Strong Brand Image

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D – a key strength

WEAKNESS

Seasonal Demand( like

chyawanprash in winter and Vatika

not in winter)

Low Penetration(Chyawanprash)

High price(Vatika)

Limited differentiation (Vatika)

Unbranded players account for the

2/3rd of the total market(Vatika)

OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the middle

class

Creating additional consumption

pattern

THREATS

Existing Competition( like Himani,

baidyanath and Zandu for Dabur

Chyawanprash and Marico,Keo

Karpin, HLL and Bajaj for Vatika

Hair Oil)

New Entrants

Threat from substitutes (like

Bryllcream for Vatika hair oil)

66

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, stockists 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, stockist’s 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.

68

CONCLUSIONS

The Chawanprash 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 unfired. Chyawanprash are yet to establish their supplement use in the average

household here in lays 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 enjoys 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 Australian Product Tabasco. 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.

71

http://www.dabur.com/EN/Ayurveda/herbalGarden/details.asp?herbName=Ashgandh

http://www.dabur.com/EN/Ayurveda/herbalGarden/details.asp?herbName=Amla

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.

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.

72

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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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

76

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

9. How often do you buy?

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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. 5000

RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL

78

Dear Respondent,


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


Marico

HLL

Keo Karpin

Dabur Vatika


Brand loyalty

Price

Availability

No reason


High income

Middle income

Low income


Price discounts

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Buy one get one free

Others


Price discounts


Others

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

preference?

Yes

No


Yes

No


Location of store:

80

CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH

Dear Respondent,


consumer perception for chawanprash.

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

1. Which brands of Chawanprash are you aware of?

Zandu

Himani

Baidyanath

Dabur

2. Which brand of Chawanprash 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

4. What are the primary reasons for which you use this particular brand?

Health

Brand Loyalty

Taste

Price

81

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?

1 kg

500 gm

250 gm

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

Availability

Price

Family size

Storage

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

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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

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RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

Dear Respondent,


consumer perception for the Chyawanprash 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 Chyawanprash do you stock?

Zandu

Himani

Baidyanath

Dabur


Zandu

Himani

Baidyanath

Dabur


Brand loyalty

Price

Availability

No reason

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High income

Middle income

Low income


Price discounts


Others


Price discounts


Others

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

preference?

Yes

No


Yes

No

Personal Information:-

Location of store:

85

BIBLIOGRAPHY

BOOKS:

Kotler Philip: Marketing Management Malhotra Naresh K: Marketing research

WEBSITES:

WWW.Dabur.com

NEWSPAPERS:

Business Standard Economics Times

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Marketing Strategy of Dabur Vatika Hair Oil & Dabur Chyawanprash

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