APROJECT REPORT

ON DABUR INDIA LIMITED

[MARKETING & HR]

Submitted toward the partial fulfillment for the award of DegreeIn BACHELOR OF BUSINESS ADMINISTRATION OF

C.C.S. University Meerut

(2013 - 2016)SUBMITTED BY

SUBODHROLL NO:- 6487524BATCH : (2013-2016)

UNDER THE SUPERVISION OF(MR. BHARAT BHUSHAN SHARMA)

DEPARTMENT OF BBASHARI RONACHARYA PGCOLLEGE,

DANKAUR, GREATER NOIDA1

DECLARATION

I hereby declare that the summer training report on Dabur India Ltd. is prepared and submitted by me is the original work; the report is based on the data collected by me during the training tenure.

SUBODH

2

ACKNOWLEDGMENT

I wish to place on record my deepest gratitude and thanks to

personnel from Dabur. Without whose help this project

would not have been possible Mr. Vasuki.n.Kilam, [Area

Sales Manager], Mr. Tarkesh Gupta [ Manager - HR] from

Dabur Co. were the concerned personnel I interacted with.

I would further like to thank Ms. Komal Tomar for his able

guidance throughout this project.

3

Table of Content

1. Synopsis

2. Introduction

3. Assumption

4. Company Information

5. Organization Structure (Existing)

6. Organization Structure (Proposed)

7. Activities

8. Mission

9. Product

10. Research and Development

11. Expansion and Diversification

12. Product placement strategy

13. Pricing Strategy

14. Promotional Strategy

15. Conclusion

16. Recommendation

17. Bibliography

18. Limitation

19. Methodology

4

SYNOPSIS

This project report covers and brings to light the marketing

strategies & Human Resource Management of Dabur India

Limited.

Herbal product industry, though based on the age old

practice of Ayurveda, is still in its nascent stage in India. But

it is growing by leaps and bounds every year. This is

because of the growing awareness of people for natural

products and with the general tendency to revert back to

nature.

The demand for herbal products is increasing world wide and

this provides an opportunity for India, with its inheritance of

abundant natural herbs and the Ayurvedic and Unani system

of medicine, to rise up to the occasion. If, India wants and

takes the necessary steps it can be the leader in the herbal

export segment.

It is a strange co-incidence that both the companies in

question, started their business, nearly a century ago, with

the production an sale of Ayurvedic medicines. While Dabur

grew with time and became a company with highly

5

diversified product portfolio. Today Dabur is the market

leader in Ayurvedic segment (45%).

For collection of data together with taking company

information from various primary and secondary sources, 25

consumers were also interviewed regarding their attitudes

about herbal products and about Dabur. A deep insight into

the company, peoples perception about it was available

though this.

The company has some well defined marketing strategies

which suit their needs and requirement. Dabur has been

family held business, but Dabur on the recommendation of

McKinsey and company gave up its control in the

management and appointed outside officials. Dabur which

has set his eyes on becoming a FMCG and of achieving a

turnover of Rs. 2000 crore by the next century has brought

in several changes.

6

INTRODUCTION

This Project Report forms an integral part of the Post

Graduate Diploma in marketing management. As a

prerequisite the companies should be registered in Delhi

Stock Exchange and should have a minimum operational

period of five year. It is also required that the project should

be done highlighting the area of specialization of the

student.

This project report covers the corporate area of marketing,

as it is my field of interest and area of specialization. The

specific industry chosen is the upcoming, dynamic herbal

product industry. This industry can be further be segmented

into herbal drugs and herbal cosmetics sectors. This is an

industry, which has suddenly proved to be a major threat to

the conventional companies in this segment and is giving

major companies, doing prolific business a run for their

money. The sudden inclination for herbal products due to

increasing consumer awareness has suddenly brought this

industry in the limelight.

The herbal product industry is characterized by changes,

which are brought directly in relation to customer 7

preferences and awareness. New companies offering

‘something new and extra’ to the consumers are

mushrooming every day. As such the industry provides an

inexhaustible opportunity to study and analyse the

marketing strategies of the different companies.

The objective of my study is to report and analyze the herbal

product related marketing strategies of Dabur .

ASSUMPTIONS

The analysis and the reporting of the information gathered

from these two companies would be based on certain

assumptions, which are as follows:

I. The information given by the company officials is taken as

correct at face value.

II. Same is the case with the information gathered through

the consumer questionnaire. The perception of the

consumers regarding the product regarding the product

quality, promotion and other aspects is not disclosed

suitably. This is also to a great extent the basis of any

conclusion.

8

III.The information from the secondary sources is accepted

to be correct and authentic.

9

DABUR INDIA LTD.

COMPANY INFORMATION

The company, Dabur India Limited, was started in 1884 by

Dr. SK Burman as a small mail order business for Ayurvedic

medicines, ‘Pudin Hara’ was the first medicine to be mail

ordered. Over the years the company passed down amongst

the descendents of Dr. SK Burman and remained a closely

held family business. This remained true till November 2,

1998. That day the 114 yr. old Dabur India reinvested itself.

Breaking over a century of tradition, executive powers of

running the company were handed over to an outsider

appointed as CEO Mr. Neenu Khanna.

Dabur at this particular instance is going through a period of

transition. This transformation is going to result in the

emergence of the largest Indian fast moving consumer

goods Company. The company, which has always shown a

signs of a visionary had set its rights on becoming the

country’s largest homegrown FMCG Company. The company

realized that to be the industry leader, it needs to be the

best in all areas and have to be benchmarked with the best

industry practices. As such the company appointed 10

McKinsey and Co. In April, 1997 to look into the health of the

company and to come up with suggestions which will help

turn Dabur into one of the largest fast moving consumer

goods company of the country. McKinsey & Co. has

identified the areas of improvement and suggested

initiatives required in them.

The company has decided to leave the day to day

management in the hands of professionals. The promoters

(the Burman family) will withdraw themselves from the

routine functions and will concentrate on giving strategic

direction to the company. The major step in this direction is

the decision to appoint a CEO to head the company

management. All business units’ heads and functional heads

will report to the CEO. The existing and proposed

organization structure of the company as follows:

ORGANISATION STRUCTURE (EXISTING)

CHAIRMAN

Managing Director

V.C. Burman

Managing

director

G.C. Burman

11

Sales & Marketing

Health care family

product Ayurvedic

spl. Foods and

cosmetics.

Operations

Personnel and

HR quality

Assurance

purchase

packaging

development

diversification

Pharmaceuticals

Oncology R&D IT,

Bulk Drug and

Chemicals

Director

Veterinary

Natural

Gums

Director

Overseas

operations

Finance

Exports

Corporate

Communic

ation

12

ORGANISATION STRUCTURE (PROPOSED)

Board of Directors

Management

Committee

CEO

BUSINESS UNITS

HEADS

Health care

Personal Care

Ayurvedic Spl.

Ayurvedic Veterinary

Pharmaceutical

Oncology

Food

FUNCTIONAL

HEADS

Operations

supply Chain

Purchase

IT

HR

Packaging Dev.

R&D

Quality Assurance

Finance & Accounts

Corporate Comm.

13

Dabur India Limited

SBUs

Health Care

Personal Care

Foods

Global Oncology

Ayurvedic Specialties

Dabur Group Cos.

Dabur India Limited

Dabur Finance Ltd.

Dabur Nepal Pvt. Ltd.

Dabur Egypt Ltd.

Dabur Overseas Ltd.

14

Dabur International Ltd.

Joint Venture

Coufiteria de General

India Ltd.

Dabon International

Excelcia Foods Ltd.

15

The biggest Indian FMCG Company, Dabur India Ltd., is

poised to become the true Indian multinational. The

company today is a multi-location enterprise employing a

dedicated task force of over 5000 people. Dabur has 12

manufacturing plants in India, Nepal and Egypt. Dabur also

has a manufacturing license in Middle East. It has a

transnational network of 19 offices servicing both sales and

marketing offices have been set up in Dabur, New York,

London, Moscow and its products are now available in over

fifty countries.

Besides this Dabur has collaborated with leaders in their

fields to set up joint ventures in India. The joint ventures

with Agrolimen of Spain, General De Confiteria India

Limited, manufacturer confectioneries Dabur International

Limited, the joint ventures with Bongrain of France

manufactures specialty cheese. Dabur has collaborated with

Osem Israel to manufacturer bakery specialties and other

food products under the name of Excelcia Food Pvt. Ltd.

Dabur Exports, Dabur products have found appreciation

across the globe, in a market that spans the seven

continents:

16

Middle East, East and West Europe, Russia and CIS, Central

and South America, USA and Canada, South East

Asia (Japan, Malaysia, Singapore, Thailand), North Africa,

Bangladesh & Sri Lanka.

Dabur Overseas Offices: London, Moscow & Kathmandu.

Dabur Representatives Overseas: Dubai, Kenya

Production Base Overseas: United Kingdom (Work in

progress), Egypt, Nepal & UAE (franchisee under technology

transfer agreement).

Activities

Dabur products span the seven continents and over 50

countries. Though Dabur starting its exports way back in the

early 1900s, it gathered momentum in the seventies with

the Middle East market. Presently, Dabur Amla Hair Oil is not

only the largest hair oil brand, it has also helped in making

Dabur a household brand in that region.

17

Yet another major market for Dabur is Europe. With

increasing awareness about the natural goodness of herbal

products, the demand for Dabur products has seen a steady

increase in the last one decade. Dabur set up its office and

warehouse in UK to service this burgeoning market. Apart

from this, Africa, USA, Russia and the Far East also offer

tremendous potential.

Dabur Egypt Limited is a subsidiary of Dabur and was set up

to manufacture and market Dabur products in Egypt and

other parts of Africa. Dabur also has a franchisee for

manufacturing its products in the Middle East. Dabur Nepal

Private Limited is yet another subsidiary that has done

exceedingly well since its inception. Today, the company is

one of the largest exporters of Nepal. Dabur Nepal

manufactures an astounding variety of Dabur products like

Fruit Juices, Tooth powders, Digestives, Hair Oils and Honey.

In fact, Dabur Nepal is the only manufacturing base for Real

Fruit Juices. It has also set up a greenhouse for developing

saplings of medicinal plants. The company has set up an

apiculture centre to develop Honeybee Products in Nepal for

exports.18

Each division at Dabur functions as a SBU (Strategic

Business Unit) where the head is responsible for the cost

and revenue and ultimately the profit of the unit. The

various companies of the Dabur group are as below.

The turnover of Dabur India Ltd., which accounts for 80% of

the group’s total turnover has steadily grown between 1992-

93 and 1996-97 by 25-26%. The turnover which in 1993-94 a

mere 61602 lakhs rose to 81136 lakhs in 1997-98.

As per McKinsey’s suggestions several changes are being

brought in the company. The changed focus is not only on

strategic front but also on operational issues.

Induction of more professionals

streamlining of supply chain

Setting up a centralized material procurement cell and

Updating its management process will take Dabur to a

new era of faster growth. From a closely held

conservative company, Dabur India Ltd. Is all set to

become a modern FMCG company not shy of taking the

competition head-on. As it enters a new millenium, Dabur 19

has set itself a new mission. The mission is to offer

superior quality nature based products, that offer value

for money and contribute in improving the quality of

consumer’s lifestyle in the areas of personal care, health

care and processing foods. As such the mission statement

of the country is as follows.

20

MISSION:

To fully export our core competencies in the field of

Ayurvedic and Herbal products by identifying the consumer

needs and aiming for full consumer satisfaction.

Together with this the company has set itself the target of

being best in the industry and plans to achieve a turnover of

Rs. 20 million by the year 2003. There is a sense of urgency

in all actions which suggests a new dynamism. The company

is at present bringing in major changes which have

remarkably altered their marketing mix strategies. All of

them have been discussed in the following pages.

21

PRODUCT

PRODUCT RANGE: Till a year and halfback Dabur had over

500 products covering around 10 categories in all. These

were as below:

Healthcare Products Division: Marketed a range of

OTC Healthcare products based on Ayurveda. These

included Herbal immunomodulators; digestive,

restoratives, anti-flatulence and laxatives, tonics and

mother and child care products. Some of its products had

over 65% market share in their respective categories.

Family Products Division: Markets a range of beauty is

a product, toiletries, herbal hair care products and select

goods. Hair oils, red tooth powder, honey and rosewater

are market leaders with nearly 70% market share in their

respective categories.

Ayurvedic specialties: Based on the ancient holistic

system of healthcare. This had a range of over 400

medicines. Ethically promoted these include classical

Ayurvedic medicines as well as products developed

through in-house R&D.

22

Foods Division: The of the youngest division of the

company markets a range of services, ethnic pastes and

foods. Real fruit juices gave Indian consumer for the first

time, fruit juices with nothing-artificial non-preservative,

no color and no flower added.

Cosmetics: Marketed range of beauty therapies under

the brand name Samara - Sanskrit for “to meet”. This

range of hair and skin care products is a fusion of

chemical Indian Ayurvedic recipes and contemporary

cosmetology.

Pharmaceutical Division: This division has a major

presence in anti cancer products and focuses on niche

markets like anti-thrombolytic, anti migraine therapy and

radio opaque rays. The product line included a range of

generic and branded formulations in wide-therapeutic

segments.

Bulk Drugs & Chemicals: Dabur manufactured

synthetic and semi synthetic bulk pharmaceutical

substances, bulk natural compounds and intermediaries.

Isolation of pure natural compounds and customs

synthesis was focus areas.23

Natural Gums: This division manufactured and

processed guar gums, gum kanaya, tamarind-based gums

and psyllium husk. the division produced a range of

industrial and food grade natural gums as per exacting

customer specification.

Ayurvedic Veterinary: This division dealt exclusively in

Animal healthcare. Market safe and non-toxic herbal

veterinary products for poultry large and companion

animals. These products are manufactured according to

traditional Ayurvedic formulation.

Product for global markets: Dabur products are

available in over 50 countries. These include soaps and

shampoos, shaving creams, cooking oils and other items.

Company personnel in London, Dubai and Kenya service

the overseas markets. The products for global markets

are manufactured in Nepal, Dubai and Egypt.

The above mentioned product lines were there at Dabur till

1½ years back. On the recommendation of McKinsey and

Co., Dabur India Ltd., has decided to restructure its product

portfolio. Over the years, Dabur had added many new

product, lines that gave the company a very diverse 24

portfolio. Although these new businesses have been

profitable, some are unrelated to the core competence - that

of manufacturing herbal or Ayurvedic based medicines. The

company has decided to hive off such unrelated businesses

to separate companies under the Dabur group. This

rationalization of product portfolio will make the company a

true FMCG. Guided by the philosophy of “Doing Fewer things

but doing them better”, the company plans to concentrate

on 12-15 major brands and add a few new products under

these brands each year.

McKinsey also identified 5 pillars of strength

Product lines which will give maximum benefits to the

company. As such the revised product portfolio has 5

product lines. These include eight brands having market

shares of over 65%. Dabur’s products are positioned at the

varied socio-economic cross section, thus providing products

for literally every Indian. The major areas of company’s

business activity today comprises the following:

A. Personal care products : This division accounts for 40

percent of Dabur’s total sales and is the largest business

in terms of turnover. Some previously marketed brands of 25

this category will be dropped and others will be added on.

The turnover from the division is expected it rise from the

current RS. 350 crore to about RS. 430 crore next year

growth in this division is attributed to come largely from

eight key brands. The major products lines and brands of

this division are :-

I. Hair care: - These include herbal, Ayurved based hair oil

and shampoos, Some major brands are Anmol coconut oil,

Amla hair oil, Vatika hair oil and shampoo.

Dabur Amla Hair Oil - This grand old product of Dabur has

a turnover in excess of RS. 100 crore (RS 1000 million).

Vatika Shampoo - Dabur introduced premium natural

shampoo under the brand name ‘Vatika’ in 1997. Branded

Vatika Henna cream conditioning shampoo, it provides

natural conditioning and nourishment without harmful

chemicals. The shampoo has as its main ingredients -

Henna, Shikakai, Henna, and green almonds. The product

is confluence of the best of natural ingredients with

modern day care.

Vatika shampoo has received tremendous response since

26

its launch and is all set to be one of the leading brands in

Dabur range of products.

II. Oral Care : Red tooth powder and the Binaca range, which

Dabur acquired few years back.

III.Foods - including

Dabur honey

Sharbath - e Azam - a sweet rose flavored syrup.

Gulabari - rose water

kewra water

B. Healthcare products - This division accounts for 36%

of the total turnover of Dabur India Ltd. This business

unit has some of the best known brands of Dabur. From

all the 16 brands of this division, only 12 will be in the

limelight; two new brands will be added to the portfolio.

This division is also the oldest division as Pudin Hara

was one of the three original formulations marketed by

Dr. S.K. Burman, major product lines are

I. Mother & child care - this include

Janam Gaunt27

All Tail

Gripe Water

II. Digestives - Hingoli, Pudin Hara, Hajmola Tablets and

Hajmola Candy.

Dabur is the largest digestive brand in India. Its Hajmola

brand which has both plain and candy variations as well as

Pudin Hara and Hingoli have a strong Ayurvedic essence to

them. The Hajmola candy has tamarind pulp, which

stimulates the digestive glands to secrete more digestive

juices. Pudin Hara is claimedly a natural stomach remedy,

free of side effects, while Hingoli has added its asafetida

blend to the after meal digestive market. Together, the

three brands hold a major chunk of the herbal digestive

market of which Dabur has an overwhelming chunk, thanks

to its Ayurvedic competence.

III.Herbal Tonics - including Chyawanprash and Restora.

While Restora brand helps in restoring as well as building

up the digestive system of the body, Dabur

Chyawanprash is a herbal tonic for general well being.

28

A herbal immunomodulator, Dabur Chyawanprash not only

builds immunity against cold and infections but also

improves the blood supply to a person’s lungs thus providing

beneficial for smokes and asthmatic patients.

Dabur Chyawanprash is one of the leading brands in Dabur’s

product portfolio. Introduced in late sixties in tin packs, the

brands has come a long way to be the market leader with

market share above 70%. Dabur Chyawanprash is available

in two variants - Ashtavarg and special. It is the third brand

after Dabur Lal Dant Manjan and Dabur Amla hair oil to

reach the coveted mark of RS. 100 crores in terms of

turnover in last financial year. The product is exported to

more than 25 countries worldwide.

C - Ayurvedic Specialties: This is a 60 crore

division which grew by 20 per cent last year. This division

includes ethically produced traditional Ayurvedic medicines

sold ethically through Ayurvedic practitioners. It has a range

of over 400 generic and proprietary Ayurvedic medicines in

its portfolio. These product are divided in 16 categories.

This year the strategy of Dabur, regarding this product

range is to pick on 7 promising products of its portfolio of 29

401, and focus on their growth. But this will be more of a

test market lab. The major product lines are:

I. Asav - Arishta

II. Ras Rasayana

III.Medicated Oils

IV. Churnas

V. Proprietary Medicines

D. Foods & Cosmetic: This is the youngest business unit

of Dabur. It handles a range of ethnic Indian food

products and a range of 33 skin care and Hair Care

products sold under the brand name Samara. Major

product lines are

I. Real Fruit Juices.

II. Home made Ethnic cloaking pastes and sauces.

III.Capsico chilli sauces.

IV. Nutrasalt low sodium salt.

V. Samara beauty therapies which includes of skin

nourishers and toners. Moisturizers and sun protectors,

30

cleansers, face masks hair oils and vitalizers, hair wash

and cleansers.

Dabur’s Homemade brand of ethnic pastes (ginger, garlic,

onion, & green chilli) which was launched just last year has a

turnover of 3.5 crore and has successfully made a place in

today’s urban homes. Dabur has identified this brand as one

of the pillars for growth over the next millennium. The

brand, which was brought into the market after much

research on the psychographic profile of today’s urban

women, has been well received by its target segment.

Dabur already has a well-etched out strategy for its foods

division. Over the next three years, Dabur will spend close to

Rs. 60 crore in advertising in foods, besides and additional

capital investment of Rs. 20 crore. On the anvil: some more

pastes and a range of other culinary products.

E. Oncology: The last product line, which has been

recognized, as the pillar of growth for the company is that of

oncological products. This business of Dabur has a huge

future potential in India and abroad.

Dabur is the only company in India to manufacture anti-

cancer drugs, all a result of the efforts at Dabur Research 31

Foundation. This product line at present has a range of 10

products.

Major products are intanel (paelitanel) and Eotel (Docetanel)

- both derived from Asian Yew Tree. Dabur is the only

second company in the world to manufacture these drugs.

DRF developed the unique Eco-friendly process for

extraction of these drugs from leaves of the tree.

Besides the above 5 product lines, Dabur is also

concentrating on few other businesses.

Dabur has diversified in confectioneries and foods in

collaboration with leading international companies. Dabur’s

joint venture with Agrolimen of Spain is manufacturing

Bubble gums under the brand name of Boomer and candies

by the name of Bonkers. Excelcia Foods Pvt. Ltd., Dabur’s

joint venture with Osem of Israel has stated marketing

cream filled crisps under the brand name of Creamwich.

Some new products are ready to be introduced in the

market shortly. Bongrain of France, one of the world’s

biggest cheese companies, is the partner with Dabur for

another JV set up for manufacture and sale of specialty

cheese and other dairy products.32

Major factories of Dabur are located at Shahibabad, Baddi

(H.P)Maksi (KP), Daburgram (Bihar) and Nasndrapur

(Bengal). Besides this Dabur also has 3rd party

manufacturing for some of its products.

Research and Development

Research and Development of the company continues to

support the company’s business by developing innovative

products and process to cater to consumer needs and

preferences. Research and Development activities in health

care and other products were aimed at developing value

added products, delivering consumer perceptible and

demonstrable benefits. A range of new generation products

with improved financial and sensing properties was

developed. A new formulation for their protective drugs has

been developed which has shown efficacies against hepatitis

virus A, C & E. several new products in the form of ethnic

paste have been developed. New variants of fruit juice

namely tomato and mixed juice have been developed. A

new low sodium salt combination which has been

recommended as a cooking salt for health conscious people

has been developed.

33

All this has been a result of the efforts of Dabur Research

Foundation. DRF, an independent organization, which has

over 125 scientists working full time on developing and

scientific validation of products through clinical trails. DRF is

a independent profit center of Dabur and is another major

strength of Dabur.

The Research and Development center has successfully

completed a project on Ayurveda on CD-ROM. This is a

comprehensive multimedia CD which gives information of

Ayurveda, Ayurvedic herbs and products, philosophy,

history, expert system related to Doshas, guidance to daily

healthy living styles in a very user friendly interactive way.

Dabur Research Foundation (DRF), incorporated in 1979,

is a premier research organization recognized by

34

Department of Scientific and Industrial Research,

Government of India. Situated at Sahibabad, DRF is today a

known name for its pathbreaking research in the field of

healthcare and personal care.

The Foundation is at the forefront of oncology research, and

is in the process of developing many new molecules to fight

this dreaded disease. In fact, DRF was the first organization

in the world to develop a process for extraction of paclitaxel,

a drug for cancer, without harming the source tree. The

process is now followed worldwide.

Herbal health care is an area where Dabur Research

35

Foundation has made immense contribution by doing

research and development work using modern

pharmaceutical protocols. The foundation has been doing

clinical trials on traditional herbal drugs to validate the

claims made in age-old scriptures of Ayurveda. The

foundation has also done the standardization of around 200

herbal ingredients using marker compounds.

DRF has also developed some of the well-known personal

care products like Vatika Hair Oil and Shampoo, Special

Hair Oil, Samara range of herbal skin and hair care

products.

36

DRF’s R&D thrust is towards the development of new

formulations with improved levels of efficacy and safety.

To become the leading research organization of the

country, developing safe, effective, consumer friendly

health care products.

Expansion/Modernization/Diversification

A new manufacturing unit with high degree of automation

came into operation in Baddi (HP) during 1998 to produce

Dabur’s well known brands Chyawanprash, Janma Ghunti

Ayurvedic oils and Asav-Arishtas. This, apart from

underwriting assured quality of the products, has

substantially reduced per unit energy consumption and

improved yields. To complete the expansion plans at Baddi

for the branded products, a modern unit has been

constructed to produce a range of softgel products. The

environment control system at this plant and GMP standards

are world class. Honey grading facilities at Baddi have been

37

modernized as a strategic initiative to deliver the goodness

of honey to the consumer.

The bulk pharmaceutical compounds manufacturing facilities

at Kalyani (WB) became fully operational during 1998 under

review for producing oncology and non-oncology products

for both national and international market.

The fruit and fruit processing facility at Katni and Sahibabad

have been further modernized to allow high volume hygienic

process of natural materials. This process allows mechanical

handling throughout the process using equipment used in

the best European factories.

A modern air-conditioned packing line has been

commissioned at Sahibabad for Dabur’s hommade brands of

ethnic pastes and lime juices. A new state of the art plant for

manufacturing of hair oils at Sahibabad started commercial

production during the year 1997-98.

A new corporate office at Sahibabad is at an advance stage

of finalization and will be operational by the end of this

financial year. A new PET project to manufacture PET bottles

is being set up at Sahibabad. These bottles will be used for

38

packing of hair oils. The project is likely to commence its

commercial production during the current year.

39

PRODUCT PLACEMENT STRATEGY

Distribution is said to be one of the major strengths of the

company. Dabur India Ltd. has a transnational network of

more than 5500 distributors. 21 sales office and 19 branch

offices service these. This strong network ensures

availability of Dabur products in more the 1,300,000 retail

outlets in India. The products from its Health care products

division are alone available in 4,50,000 outlets, which range

from grocery stores to chemists to confections. Company

people directly cover these outlets. One of the product -

Hajmola candy is available in 1,25,000 outlets which include

paan shops, roadside kiosks and also large department

shops besides the smaller general merchants.

The distribution set up for Dabur is as follows:

Factory - Dabur

40

Branch

Warehouse or C

& F agent

Stockist

Wholesaler

Retailer

Consumer

Thus it can be seen that Dabur has a significant coverage of

the market. Based on this the product placement should be

one of Dabur’s greatest strength. But unfortunately there

had been some loopholes.

41

Firstly there were shortcoming in supply chain management

- from the buying of raw material to the selling of finished

goods to the retailers. For instance demand forecasting was

done on a annual basis. Feedback from the company’s sales

department would be discussed with its marketing cell and

the branch heads would request for fresh stocks based on

estimates, which were, part statistical and part out of gut

feel. This, at times, led to huge inventory pile-ups. The

forecasts were made on a historical basis on statistics

available. There forecasts were many-a-times inadequate

and often lead to stock out or inventory pile ups.

Second problem was with logistics and procedures. A branch

took six days to process an order. It then took almost the

same number of days to obtain the goods from its godowns.

Very often, the godowns did not have the right stock since

the goods used to be sent by truck, and the truckers wanted

full truck loads before they started rolling, at times the

goods would be at the truckers godowns for a week.

Dabur’s system of accepting payments from its stockists

was also very elaborate with vouchers etc. This delayed its

42

payment cycle and also affected the cash flows for the

company.

Dabur realized that there is something wrong in its supply

chain-from buying of raw materials to the selling of the

finished goods to the retailer. For a growing FMCG, this was

the most critical aspect of business as it has 3 major

benefits.

One, have the right stock, at the right place at the right

time.

Two, keep inventories down.

Third, do all this with lower operational costs.

It was with the intention of fixing its internal processes that

Dabur hired Mckinsey and Company in 1997. McKinsey

accordingly has given suggestions to Dabur to improve its

supply chain and procurement processes. Firstly Dabur has

shed the process of making annual forecasts and is fast

moving towards a mode of rolling three monthly forecasts,

where the projections for one month are fixed. This

forecasting model is based on the current market needs

rather than historical performance of the product and hence

43

chances of error have been reduced. Moreover, unlike in the

past, when forecasting was brand specific now forecasting is

done on the basis of stock keeping units e.g., If earlier the

off-take of a certain volume of Dabur’s Chyawanprash was

predicted, the forecast now has to include specifics based on

the three different sizes of the products.

Based on the 3 month rolling fore model, which accurately

predicts how much the company’s factory should produce,

how goods should more from factories to warehouses to the

branches. This replenishment model works on the

fundamental principal that inventory should be avoided at

all costs.

Dabur has also tried to reduce its inventory level, which had

earlier resulted into high working capital requirements. The

company has been successful in these aspect brands to

better systems and information technology, and the finished

goods inventory is down to 40 days from 52 days.

Besides all the above measures of supply chain

improvement, the company has kicked off other initiatives

like improving the collections from its dealers. Unlike earlier,

when Dabur used a complicated system of invoices to 44

recover dues, the company now insists its dealers to pay by

checks. Simultaneously, it is hot on what is called “Planned

Journey Period” planning - in other words, route planning for

its trucks. Dabur will now plan delivery along geographical

routes. The company’s sales personnel are encourages

collecting orders from stockists along pre-selected routes

and Dabur sends suppliers along these routes. These days,

Dabur even pay its truckers 5% over its earlier rates so that

they carry only the company’s goods and therefore reduce

idle time in wailing for whole truckloads.

Also on the procurements side, a central procurement

planing cell has been created comprising of six category

managers to keep takes on the organization of raw

materials, packing materials and outsourcing of certain

products.

PRICING STRATEGY

Pricing is undoubtedly one of the most important decision

areas of marketing. Price and sales volume together decide

the revenue of any business. As the sales volume in itself is

45

dependent in price. Pricing really becomes the key to the

revenue of the business such is the case with Dabur. Though

some of the products of Dabur have been leading brands in

their segments over the years, still others are upcoming

brands trying to make their pressure.

Dabur as a brand name is well reputed and readily accepted

in the market. The main strength of Dabur’s products

besides their quality is the brand name. This gives to the

company, opportunity to fix the price at a level, which gives

suitable profits. Major factors affecting Dabur’s pricing policy

are:

I. Corporate and Marketing objectives: Whether the

product is marketed with the initial objectives of capturing

maximum market share or earning maximum profits.

Dabur’s product like Hajmola candy, hingoli were

marketed with the objectives of capturing a sizeable

share of the market and so were priced towards the lower

end of the scale. This strategy has secured its purpose

because today Dabur is the market leader in digestive

candy segment.

46

II. Image sought by the firm through pricing: of through

pricing, the company wants to communicate to the

consumers that the product it is marketing is for the

premium segment it will adopt a policy of high prices.

When Dabur marketed Vatika shampoo the product was

meant for the middle classes and was moderately priced.

But when Dabur honeys and Real fruit juices were

marketed, they were targeted at the premium segment

and were relatively high priced.

III.Costs of manufacturing & Marketing: Sometimes the

costs that a company incurs in manufacturing and

marketing a product also get reflected in the price. Four

years ago, when Dabur launched Vatika Hair oil, it was the

first coconut oil to have other ingredients beneficial for

hair. A lot of research work had done into it and to have

the product readily accepted it was heavily advertised. All

this resulted in raising the MRP of the product.

IV. Competitors pricing policy: often when in a segment

there is much competition to the reckoned with, the

prices of the competitors for similar products have to be

kept in mind before deciding on the price for a product. In

47

such category fall the Dabur Amla hair oil, Anmol coconut

oil and Dabur Chyawanprash.

The pricing policy adopted by Dabur India limited is cost

based pricing where the total cost incurred in the

manufacturing process of a product plays a significant part

in deciding the price of the product. The approach used in

cost - based pricing, at Dabur is Mark-up pricing. The major

elements in this policy are:

Fixed Costs: These results from the expenses on men and

machinery e.g., the wages and salaries paid, the annual

changes of running a machine etc. These expenses remain

fixed with the volume of production.

Variable Costs: These expenses vary with the volume of

production. They are a result of the raw materials used, the

processes and technology employed, the sales tax or the

excise duty accused in course of production of a particular

product.

Mark-up: This is the margin, which is added to the above-

mentioned costs before arising at the price of a product. This

mark-up is what finally results into a profit for the company.

Mark-up is a percentage of the total fixed and variable costs. 48

Depending upon the type of product, its saleability, the

target segment, the competitor’s price, the mark-up may be

anything between 50-150% of the total costs.

Since Dabur’s products a mostly Ayurvedic or herbal, the

cost of the raw materials constitutes the chunk of the total

costs. The costs of raw material form a part of the variable

costs and differ from the variable costs and is different from

products to product.

Most of Dabur’s products are affordable i.e.; they are priced

towards the lower or moderately high end of the scale.

Dabur very well knows where it can change a premium and

where it cannot. This is why; Dabur has made its presence in

most of the homes of India and is steadily doing so abroad.

49

PROMOTIONAL STRATEGY

Dabur, like an upcoming FMCG company realizes the

importance of advertising in the marketing of its product.

Like a true visionary Dabur from time to time, introduced as

well as changed some of its campaigns (for key products) to

bring them according to the changing market scenario. In all

its advertising is handled by 8 agencies.

Campaign for digestive: Hajmola, Hajmola Candy, and

Pudin Hara are done by Hindustan Thompson Associates

(HTA). Pudin Hara has been identified as one of the core

brands of Dabur by McKinsey and HTA is going to release a

new campaign for it shortly. Advertising for digestions is

through all the media - T.V, newspapers and magazines.

Campaign for Dabur Amla Hair Oil: This account has

been looked after by Ogilvy & Mather over the years. This

grand old product of Dabur has once again adorned a new

face for advertising. Known for celebrity advertising, this

product is now promoted by Karishma Kapoor. Some of the

leading ladies of the film industry who have endorsed this

product are Jayapradha, Sridevi, Juhi Chawla.

50

Campaign for Vatika hair oil & Shampoo: Advertising for

Vatika hair oil which was introduced 4 years back and Vatika

Shampoo which was introduced a year back has been looked

after by Mudra. Another product which is campaigned for by

Mudra is Red tooth powder. While Vatika hair oil and

shampoo is advertised both in print and electronic media,

advertising in print media is more common for red tooth

power. Also, for this, magazines prevalent in small cities (in

vernacular language) are more often used. This is because

the target segment of this product is in small cities and

towns.

Campaign for Dabur Chywanprash: Over the years the

advertising campaign for Dabur Chyawanprash has been

handled by Response, an advertising agency of Calcutta.

Both print and electronic media are used for campaigns for

Dabur Chywanprash.

Campaign for Dabur Honey, Real Fruit Juice: The

agency responsible for handling the campaigns for the

food’s division is enterprise Venus also both print and

electronic media are used for this product range.

51

All the advertising agencies hired by Dabur are responsible

for creative execution and media planning for their

advertisements. A vast number of appeals can be seen to be

there in Dabur’s advertisements. While Pudin Hara uses a

common man to endorse the product celebrity appeal is

used for Dabur amla hair oil. Chyawanprash, Dabur Honey,

Vatika Shampoo, and Real Fruit Juice extensive information

about the constituents used, their goodness and benefits to

human beings are clearly explained in the ads of these

products.

Still other products like Hajmola pills and candies as well as

Hingoli have a humorous aspect in their campaign to catch

the imagination of the consumers.

The reason why Dabur does not use one or two agencies to

advertise for its products is simple - it does not want any two

of its campaigns to be similar. While the agencies look after

the creative aspect and media planning and scheduling;

media buying is done by the in-home agency - Adbur. Media

space (in case of print newspapers, magazines etc.) and

media time (in case of electronic media like TV, Radio) are

bought in a consolidated manner by this agency. These may

52

be prime time slots, full page or half page bookings.

Whenever a product has to be advertised, dabur decides the

time and space and the product is advertised accordingly.

Dabur is a firm believer in advertising and benefits and as

such has a huge advertising outlay. But the manner in which

the advertising budget is appropriationed differs from

product to product and depends upon what the advertising

and ultimately the marketing objectives of the company

regarding those products are. Some of the methods used

advertising appropriationing are :

I. Historical basis: Dabur uses this method for products,

which have been in the market for long i.e.,

Chyawanprash, Amla Hair Oil. A regression analysis done

based on historical data in which a comparison of past

expenditure and sale is done. Likewise future advertising

outlays are decided.

II. Competition based: This method is used is used for

deciding outlays for products which are in highly

competitive segment like Real Fruit Juices, digestive

candies etc. Here a advertising budget is made which is

53

comparable to the budgets of the competitors in that

segment.

III.Task based : According to this method, the quantum of

funds required to attain the specified advertising goals is

decided on a function-to-basis.

Besides campaigning in print and electronic media, Dabur

also has various sales promotion techniques. Most of them

are the POP materials like dispenses for candies etc,

danglers, stickers and so on. Also from time to time various

Dealer promotion schemes are undertaken. These schemes

are tactical in nature i.e., there is always some object to be

achieved through them which can vary from increasing the

number of dealers or giving incentives to dealers to stock

Dabur’s product more.

Consumer schemes are also undertaken and they are

usually need based. These schemes may proceed the

introduction of a new product, to increase the sale of a

product, to sponsor an event, build an image for the

company etc.

In today’s changing times, communication - whether it is

internal or external forms an integral part of an organization. 54

Dabur has a corporate communication department, which is

responsible for the Public Relations of the company. Besides

this, the company brings out ‘Contact’ a quality newsletter,

which not only helps employees communicate effectively

with each other but also helps in dissemination of news and

information. It is a two-way communication channel between

employees due to its interactive nature.

55

CONCLUSION

Being a treasure trove of rare medicinal plants and the

birthplace of three therapeutic systems, the growth of

herbal product industry in India has been remarkable.

According to a survey, the current estimate of the total

herbal market is Rs. 2500 crores which is growing at a rate

of 25 to 30% per annum. Many companies are there in this

highly competitive field. With the growing awareness and

realization among people for herbal products, these

companies claim to be marketing not just a product but a

whole civilisation.

While for Dabur herbal products business forms the major

activity (Dabur is a highly diversified company),

manufacturing of herbal products is the only business of

Baidyanath.

Fast Moving Consumer Goods (FMCG) industry is one of the

most competitive and fast growing industry in India. Dabur,

keeping in view the challenge of the global market,

maximizing team performance, focusing on core

competency, changing competitive world and meeting the

demand of demanding customers, felt the need for 56

appointing an international consultant to study and identify

areas of improvement in various aspects of company’s

business to improve cost effectiveness and to diagnose

organizational and strategic aspects. The company

appointed McKinsey & Co., in 1997 for devising its strategic,

organizational and operational guidelines. Based on their

finding and suggestions the company is poised for

transformation. The major weaknesses of the company as

identified by McKinsey are:

Family run business lacking professional managers.

Highly diversified product portfolio with no or little

synergy.

Improper and unscientific methods of demand

forecasting.

Poor raw material procurement planning.

Huge inventory pile up or stock outs.

Complex system of payment to dealers and stockists.

Long cash-flow cycle and huge working capital

requirement.

57

Lack of co-ordination between central supply cell,

branches and warehouses.

Dabur’s brand was known but nothing much about the

company was known.

It is a positive sign that the company, based on McKinsey’s

recommendations, has taken the initiative to change and

alter its weak points.

Firstly Dabur has identified core areas of competence and

has decided to focus on these business to maximize growth

in the national and intentional market through effective

strategies. The company has also decided to exit from non-

core areas and has already appointed consultants to hive off

these business/brands. Dabur’s future growth will be guided

by the theme “DOING FEWER THINGS BUT DOING THEM

BETTER”.

Dabur is also changing from a promoter driven company to a

professionally managed company. The company is in the

process of recruiting a professional CEO from outside the

company to take on the day to day responsibilities of

management.

58

Based on the suggestions of McKinsey, Dabur has initiated

the process of adhering to new and better systems and

styles of management. The first step in this area is to polish

up its operational methods and to give up on redundant

practices. The focus is now on supply chain management,

improving purchasing capabilities, improving distribution

efficiencies, improving sales force, marketing inputs,

reduction in manufacturing costs and improvement in

quality, efficient utilization of corporate resources etc. Dabur

is putting up a new thrust to solve its loopholes and many of

its initiatives are commendable. Some of them are:

Undertaking a mammoth task of transforming a more

than 100-year-old company.

Appointing of an outside consultancy to look into its

problems.

Giving up the family hold on a 800 crore group.

Selling out non-core business.

Introduction of a series of operational and logistical

systems into the business.

59

All these combined with the inherent strength Dabur has-

well recognized and established brand, strong R&D backup,

right mix of advertising, promotion and product packaging,

we hitherto have a world class company. The major strength

of Dabur in this rapidly growing herbal industry is that they

were pioneers in this field. Today also, the name DABUR

is a household name and most of the consumers have

high regard for the company’s products and the products

are synonymous with quality and effectively.

Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., is today at a

stage where Dabur was few years back. It is a company

whose management still lies among the family members. It

has 2 joint managing directors who look after the operations

of its 5 offices spread countrywide. It is also one of the

oldest company of Ayurvedic/herbal medicines/products. It is

the only herbal Product Company to have a range of over

700 product. But with the largest range of Ayurvedic

products and with ages of business experience, the

company is still not at the top nor is so well rated by the

consumers. The reasons for this are not hard to find.

60

Baidyanath because of the low profile image it has for all

these years, is perceived to be a small and backward

company with some factory some where.

Advertising has not formed a thrust area of the marketing

strategy and hence of the correct brand or company

image has not been projected. Hence its products are at

times taken to be of inferior value and not upto the mark.

The company has not grown with the changing time and

has not adopted modern management practices in terms

of quality control, R& and operational process.

The packaging of the product as well as the quality of its

print and electronic media ads has not been improved

and this also suggests some negative connotation about

the company.

This aside, the company has some major strengths

Goodwill of the regular users of its products.

Well-earned reputation for quality.

A strong market presence by retail outlets.

61

Outlets readily accepting to stock its products. But still

Baidyanath, if its has to survive today’s cutthroat

competition, it has an uphill task of tackling the upcoming

companies like Smyle, Zandu, Yogi

Pharmacy,HimalayanDrugs etc.

Fast Moving Consumer Goods (FMCG) industry is one of the

most competitive and fast growing industry in India. Dabur,

keeping in view the challenge of global market, maximising

team performance, focussing on core competency, changing

competitive world and meeting the demands of demanding

customers, felt the need for appointing an international

consultant to study and identify areas of improvement in

various aspects of company’s business. To improve cost

effectiveness and to diagnose organizational and strategic

aspects, the company appointed McKinsey & Co., in 1997 for

devising its strategic, organizational and operational

guidelines. Based on their findings and suggestion the

company in poised for transformation. Baidyanath is today

at a stage where Dabur was few years back. Even with the

largest range of Ayurvedic products and with ages of

business experience, the company is still not at the top nor

62

is so well rated by the consumers. The reason for this are

quite obvious. Nothing much is known about the company.

Advertising has not formed the thrust area and so correct

company or brand image has not be created. Together with

this the company has not grown with modern times and has

not improved on packaging or R&D efforts.

63

RECOMMENDATIONS

DABUR INDIA LIMITED

Most of the recommendations for Dabur have been covered

by the McKinsey report. Nevertheless it would be worthwhile

to note them again.

1. If Dabur has to emerge as a true FMCG company it has to

divest its non-core businesses fast and focus only on

some core competencies. It this is done growth will follow

soon.

2. There are also changes to be brought on the operational

front. The company should hire more and more outside

professionals into both top and middle management. It

should also initiate the process of adhering to new and

better system and style of management.

3. The demand forecasting has to charge from the

unscientific, incredible system of annual forecasting to the

more reliable and error free system of making quarterly

rolling forecasts.

4. The order processing and procurement planning for raw

materials has to improve at Dabur. If this happens then 64

the situation of inventory putting up or stock outs will be

minimized.

5. Many-a-times Dabur’s products have not withstood quality

control tests. If Dabur has to surface as an multi-national

and face the world competition it will have to follow more

stringent quality control methods.

6. Also the quality of the raw materials used should be

looked into. This will also help Dabur to stand quality

control tests in the international arena.

7. Dabur has often been accused of pricing its products

arbitrarily. If the company has to grow, it has to adopt a

more scientific way of pricing an understand that today's

consumer is an intelligence one who has the freedom &

opportunity to choose.

Dabur, if it has to emerge as a fresh Indian multinational

and a true FMCG then it has to divert from its non-core

business. It also has to introduce systems in its operational

as well as strategic fronts. It also has to have more stringent

quality control methods and its pricing policy should be

more scientific.

65

Baidyanath, if it wants to survive today’s competition, then

the first thing it should do is to alter the image of the

company as well as its products. It also should include

outsiders in its business and also modern management

practices. Lastly, it should improve upon the packaging and

advertising of its products.

Most on the consumers interviewed also suggested similar

things for both the companies. Even though Dabur and

Baidyanath were the most popular companies with

consumers, most felt that Dabur’s products were highly

priced while Baidyanath had good and reasonably priced

products but cost out to other companies on account of poor

packaging & low key advertising.

66

BIBLIOGRAPHY

1. Magazines

Business India 1998 Issue

Businessworld 22 Nov-6 Dec

2. Books

Marketing Management - by Phillip Kotler

Principles of Marketing – by Phillip Kotler & Gary

Amstrong

3. Others

Annual Report of Dabur (1997-98)

Company Literature of Baidyanath

CII Library

Delhi Stock Exchange Library

Economic Times Newspaper

LIMITATIONS

Although it has been my endeavour to take all necessary

precautions to ensure that the information gathered is 67

authentic and maximum facts are presented the report has

a few handicaps.

1. Time: The nature of the report required detailed and

meticulous information gathering. In this sense time was

a limiting factor and a major constraint to accomplish the

given task. Also sometimes the executives were not

available and I had to re-schedule my appointments time

and again. This caused a lot of pilferage of time and

unnecessary of duplication of effort. Also many holidays

occurred during the preparation time of this report and

access to information was limited in this period.

2. Human Error: The feedback provided by the company

executives, consumers and others approached has been

assumed to be correct. But there might have been wrong

and biased facts given. The opinion of few cannot be

generalised in any manner. The reader has to discount

these fallacies with regard to the small scale on which it

has been prepared.

3. Non-cooperation: While by and large the people

approached were helpful some people were non-

cooperative. Also a lot of information was withheld due to 68

its sensitive nature. E.g. Baidyanath did not disclose the

sales figures.

4. Logistical Problems: One major problem that occurred

was the absence of marketing office of Baidyanath in

Delhi. Only a registered office is here and it proved quite

difficult to get information from there.

5. Cost: Baidyanath's head office in Calcutta had to be

contacted several times on fax and phone to get company

literature, product range etc. This resulted in major

expanses apart from the expenses incurred in local travel,

calls, computer work and printouts.

69

METHODOLOGY

The research design plays a pivotal role in the quality and

content of the data in making of any project report. The type

of research design chosen is seen to have a bearing on all

the aspects of report writing.

The research design undertaken for the study was an

exploratory one. The reasons for using an exploratory

research method was to obtain qualitative data and also

since the nature of study is as such that it required the

exploration of various aspects within and outside the

company. This method also gave the officials interviewed

the utmost freedom in responding and was highly

contributory in getting incisive information.

In order to carry out a well researched analysis efforts were

taken to collect enough information about both the

companies. For this purpose various primary and secondary

sources were used. For collecting primary information

(regarding the company as well as consumer's attitudes)

company executives and 25 consumers were approached.

Information was gathered through the questionnaire method

as well as by interview method. Interview method was used 70

whenever any reluctance was shown by the respondent for

filling up the questionnaire. Mostly for the company

executives, interview method was used. This method helped

in obtaining in depth knowledge and facts and whatever

doubts, if ever, surfaced were cleared at the very moment.

Some of the questions asked are:

What is the product range, under what brand name are

they marketed

What are the quality standards maintained

How s demand estimated and sales forecasted

Where are factories located

Major R&D efforts

Strength over competitors

What are the channels of distribution - who are the

intermediaries involved.

No outlets

How are inventory levels maintained and warehousing

done.

What is the pricing policy and main constituents of price 71

Advertising budget, allocation and programming

Types of sales promotion effort undertaken

Publicity and PR work done by the company

In order to gauge the consumer's attitude towards herbal

product and about the products of Dabur and Baidyanath in

particular another questionnaire was used. This

questionnaire has 10 close-ended questions. In all 25

consumers were approached and their responses taken.

These responses were later analysed and were of colossal

help in coming to various conclusions for the report. Each

question asked to the consumer and some logic behind it.

The questions and their logic are as below:

1. Do you use Herbal products/

If No, given a chance would you?

This question helped in knowing the percentage of people

using or favouring herbal products.

2. Herbal products are better than synthetic ones?

3. If Yes, then why? If No, then why? (Please tick)

72

- No side effects - Ineffective

- Affective - Short term remedy

- Long term remedy - Dicey constituents

Both the above questionnaires help in gauging the

perception of people regarding herbal products, the utility or

strength over synthetic products.

4. What kind of herbal products you use?

(a) Medicine (b) Cosmetic (c) Others (Pl.

specify______)

5. What portion of your total consumption of the above is

formed by herbal products?

The two above questions helped in knowing the growing

prevalence of herbal products.

6. Which two companies first come in your mind when your

talk of herbal products (medicines and cosmetics)?

7. Rate the following companies engaged in herbal product business in terms of your preference

Medicine Cosmetics

Dabur Biotique

Baidyanath Shahnaz

73

Zandu Dabur

Hamdard Ayur

Question nos. 6&7 helped in knowing the attitude of the

consumers regarding different companies.

8. Among Dabur and Baidyanath which one is better? Why

(Pl. specify).

- Genuine products

- Value for money/reasonably priced

- Effective

- Safe

9. List 2 product of the above mentioned company liked by

you/used by you the most.

1. …………………………….. 2. …………………………….

Question 8&9 helped in knowing the consumers attitude

specifically for Dabur or Baidyanath. It gave an idea why one

company was preferred over the other and which products

were mostly favoured.

10. (Ref. Quest. No. 8) What steps should the other

company take to improve its position? (Please tick)

74

- Better product range

- Better packaging

- Better advertising

- Improve quality

- Better availability

The last question helped in knowing the loopholes which

existed for the company (not preferred) and the steps which

could be taken to improve its image and standing in the

market.

Both the questionnaires formed the right tool to except the

required information from the respondents. Once the

information was collected the next step was to filter out the

data and to present in the most appealing manner.

Various secondary sources were also used to gather data as

these provided an objective basis of getting useful

information. Following are the main sources used in the

project.

Business magazines

Delhi stock exchange library

CII library75

Annual reports

These secondary sources gave some information which

helped in better understanding of the functioning of the

companies.

This project report covers the upcoming segment of the

herbal product industry. This industry has a special

relevance for India, since it derives its roots from the ancient

system of Indian medicine - Ayurveda. Therefore in course of

this project report, in order to facilitate better understanding

of the whole scenario a brief introduction to the system of

Ayurved has been given. This is followed by "Case for Herbal

products". Stating why people are for and against herbal

products and finally and overview of the whole herbal

product industry is presented. Also before coming to the

marketing strategies of Dabur and Baidyanath a brief write

up about marketing process and the growing relevance of

marketing for India has been given.

76