SUMMER TRAINING PROJECT

ON

“MARKETING STRATEGIES
OF DABUR”

Submitted in the partial fulfillment of the requirement for the

degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
TO
MAHARISHI DAYANAND UNIVERSITY
ROHTAK

SUBMITTED BY SUBMITTED TO
YOGESH TANWAR MS. TEENA GUPTA
Roll No. 0905051
MBA (III Sem)

GURGAON COLLEGE OF ENGINEERING

BILASPUR
SESSION: 2009-11
AUG. 2010

1
 DECLARATION

I, Yogesh Tanwar, Roll No. 0905051, Class MBA (III Sem) of

Gurgaon College of Engineering, Bilaspur, hereby declare that
summer training project entitled: "Marketing Strategies of Dabur
India Ltd." is an original work and the same has not been submitted to
any other institute for the award of any other degree.

A seminar presentation of the training report was made on 8th June,

2010 to 2nd August, 2010 and the suggestions s approved by the
faculty were duly incorporated.

Presentation In-charge Signature of the Candidate

Signature:

Name of the Faculty:

Countersigned

Director of the Institute

2
 ACKNOWLEDGMENT

My sincere thanks to Ms. Teena Gupta, Faculty Member, Gurgaon

College of Engineering, Bilaspur, for her valuable guidance and
support at all time.

I am grateful to all the employees of Dabur India Ltd deserve special

thanks for their cooperation and help in the collection of necessary and
relevant material for this summer training project.

Also, I do thank and remember my friends for their effort and helping
hand.

Every effort has been made to enhance the quality of work. However, I
owe the sole responsibility of the shortcoming, if any, in the study.

YOGESH TANWAR
Roll No. 0905051
MBA (III SEM)

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PREFACE

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 PREFACE

Indian Economy has undergone a radical transformation in the last three

decades. The discoveries and invention in various fields of life is perhaps be
the reasons for this transformation. The marketing strategy in India which was
practiced in the olden days has either been changed or been refined so as to
adjust with this dynamic world.

If we consider the early years of development of our economy. It is observed

that the producer’s consumers as well as production and consumption is
becoming more and more complex and specialized .

The concept of giving more customer satisfaction has been changed .

The present emphasis is one matters of providing a complete ‘Pleasure’ or

‘delight’ to the customers every walk of life.

In the light of the present marketing scenario, through this project “With the
change of policies in Budget 2003-2004, How Dabur can increase its market
share in food Products” emphasis on marketing.

My two months of training, in Dabur India Ltd. enabled me to study and

widen the intellectual horizon with a practical sense in the concept of
marketing in real life.

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THEORETICAL
CONCEPT

6
 THEORETICAL CONCEPT

AREA OF SPECIALISATION

Marketing, more than any other business function deals with customers.
Creating customer value and satisfaction are the heart of modern marketing
thinking and practice.

Sound marketing is critical to the success of any organisation- large or small,

for profit or non-profit, domestic or global. Large for-profit firms such as
McDonnell’s, Sony Fed Ex use marketing, but so do non-profit organisations
such as colleges, hospitals, museums and even churches.

Many people think of marketing only as selling and advertising. However,

selling and marketing are only the tip of the marketing iceberg.

Today, marketing must be understood not in the old sense of making a sale-
“telling and selling”- but in the new sense of satisfying consumer needs.

If a marketer does a good job of understanding consumer needs; develops

products that provide superior value; and prices, distributes and promotes
them effectively, these products will sell very easily. Thus selling and
marketing are only a part of a larger “marketing mix”- a set of market tools
that work together to affect the market place.

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging products
and value with others.

So , Marketing Management is defined as the analysis, planning,

implementing and control of programs designed to create, build and maintain
beneficial exchanges with target buyers for the purpose of achieving

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organisational objectives. Marketing management involves managing
demand, which in turn involves managing customers relationships.

The basic task of marketing is the delivery of total offer to the consumer is
such a manner that

a) the offer fulfills the needs of the consumer

b) the term and attributes of the offer are acceptable, and beneficial to the
consumer, and

c) All the organisational goal, including profits are achieved in the process.

The concept of marketing touches every sphere of one’s life. It is through

marketing, the standard of living is developed. A successful business requires
marketing as its key factor. The firm marketing, in the traditional sense means
‘Making sale’ but in the modern era, this has changed. Now the emphasis is
laid on ‘ satisfying the customers need’ rather than selling the articles.
Therefore the recent defination of marketing would be ‘the fulfillment of
needs by the transactions and exchanges of products through the media of
markets in a ‘ satisfying manner’.

Now-a-days there a vast varieties of marketing strategies are developed by

the companies to promote the selling, but those companies which are giving
importance to a customer’s wants will be succeeded in their attempts. So
among the companies involved in the competition , the one which understand
the customer’s will thrive and others will perish as the saying goes struggle
for existence and survival of the fittest.

It the on going study various attempts have been made to understand the
tactics of Dabur. As a result of the competitions a company has to find new
orientations to bring about exchanges for the purpose of satisfying needs and
wants. Marketing decision is one of the important tools, a company has to

8
take in its long run. Most of the marketing decisions are based on Products, its
price and the way in which the selling can be promoted.

DABUR INDIA LIMITED

Over hundred years of caring.......

Dabur commenced operations in 1884 and is today a multilocational,

multiproduct enterprise. The Company has major interests in health and beauty
care. Dabur is a leader in Ayurveda - the traditional Indian health care system.
The Company manufactures and markets a range of oncologicals. Dabur is one
of the few companies in the world to produce Paclitaxel - an anti cancer drug.
The Company has developed its own eco-friendly process to manufacture this
drug from raw material stage.

The Company has 12 manufacturing plants in India, Nepal and Egypt. Dabur
products are also manufactured in Dubai. Dabur has transnational network of
19 offices servicing both rural and urban markets in India. The company has
sales and marketing offices in Dubai and London.. Dabur products are
available in over 50 countries. Dabur has collaborated with leaders in their
fields to set up joint ventures in India. The joint venture with Agrolimen of
Spain, General De Confiteria India Limited, manufactures confectioneries.
Dabur International Limited, the joint ventures with Bon Grain of France, will
manufacture specially cheese. Dabur has collaborated with Osem of Israel to
manufacture bakery specially and another food products.

Dabur India Limited- Its historical background and its growth

Dabur commenced operations in 1884 and is today a multilocatonal,

multiproduct enterprise. The Company has major interests in health and beauty
care. During the late nineteenth century,most allopathic medicines were out of
the reach for the vast majority of the Indian population, both in terms of price
and availability. This promoted a doctor from Calcutta, Dr. S.K. Burman, to

9
establish a Company in order to provide low priced alternative in the form of a
traditional Aurvedic medicines. The company in question was called Dabur
which later became incorporated as Dabur India limited, after merging with
Vidogum and chemical Ltd 1986. The company was started by Burman family
and has come a long way. The dream of becoming a Rs 1000 crore Company
by the turn of the century, which it has shared as a promise with prospective
investors during its 1997 public issue, could well come true. Its such
refreshing change. In a corporate battlefield littered with the corpes of the
familiar feuds, Dabur’s story of succession has been relatively smooth. All
highly qualified professionals in various disciplines, the Burman clansmen
have each been assigned critical but well-defined roles that complement not
supplement on another. Moreover, it is one house where trasition has been an
integral part of its history.

Today Dabur stands at the thershold of a major diversification, expansion and

globalisation programme that is aimed at transforming the once closely-held
family company into a professional group with interests such as diverse as
toiletries and pharmaceuticals and held products.

Pivotal to this effort and resources. In one deft stroke, the Burman family
plans to dilute its holdings in the group by 20 percent by offering Rs 54 crore
worth of shares at a premium of Rs 85 each to financial institutions, FII’s and
the public. It issued bonus shares to existing shareholders in the ratio of 4:1.

Together, this will hike the company’s paid up capital from Rs 4.56 crores to
Rs 28.47 crores. In order to expand internal sources are no enough.
Traditionally known for its Ayurveda/ethic products, with well known herbal
bases Dabur Chyawanprash, Hajmola, Pudin Hara, Dabur Amla hair oil the
company has retrained this aura with even new products while at the same
time entering modern areas of business.

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The company manufactures and markets a range of oncologicals. Dabur is one
of the few companies in the world to produce Paclitaxel and anti-cancer drug.
The company has developed its own eco-friendly process to manufacture this
drug from raw material stage.

The company has 12 manufacturing plants in India, Nepal, and Egypt. Dabur
products are also produced in Dubai.Dabur has a transnational network of 19
offices serving both rural and urban markets in India. The company has its
sales and marketing offices in Dubai and London. Dabur products are
available in over fifty countries.

Dabur has collaborated with leaders in their field to set up a joint venture in
India. The joint venture with Agrolimen of Spain, General De Confiteria India
Limited, manufactures confectioneries. Dabur International Limited, the joint
venture with Bongrain of France, will manufacture speciality cheese.Dabur
has collaborated with Osem of Israel to manufacture bakery specialities and
other food products.

From Rs 5 crore company in 1971 to Rs 316 crore company in 1993 to a Rs

1050 crore conglomerate now.

The rethinking within the Burman family began just before Dabur’s maiden
Public issue in 1993. Introspection into product portfolio, analysis of markets
and distribution afresh.

A.F. Fergusen was appointed to examine possibilities and come up with

suggestions that would help Dabur achieve its turn of the century targets. From
a closely help group in early 1990’s, the over 700 crore Dabur group has
diverse interests, ranging from pharmaceuticals to cosmmetics to food
products to insurance.

The different product ranges that Dabur offers in different segments are :-

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Pharmaceuticals :-Cytostatics, Anti Bacterials, Anti Histimines, Anti
Ulcerants and Antiacids, Analgesics and Anti Diarrhoeals, and Anti
Hypertensive.

Cosmetics :- Skin Nourishers and Tonners, Moisturisers and Sun Protectors,

Cleaners, Face Masks, Hair Oils and Vitalizers, hair Wash and Cleaners.

Foods :-Fruit Juices and Homemade cooking.

Family Products :-Hair Care Products, Dentifrice, Sherbets, Honey and Food
Additives.

Product for Global Markets :-Soaps, Shampoos, Shaving Creams, Cooking

oils and other select products from Dabur range.

Ayurvedic Specialities :-Liver Tonics, Cardioprotectives, Anti Arthritic,

Hypoglycamic, Rejuvenators, Anti Diarrhoeals and Bowel Regulators.

Veterinary Products :-Digestive, Uterine Tonics, Oestrus Inducers, Liver

Tonics Dermatologicals and Anti Stress.

Traditionally known for its ayurvedic/ethic products, with well known herbal
bases. Dabur Chyawanprash, Hajmola, Pudin Hara, Dabur Amla Hair Oil the
company has interestingly, retained this aura with even new products. While at
the same time entering more modern areas of business. Dabur Honey, for
instance, an attempt to brand honey, an old age commodity favourite with
Indians. On the other the company has entered into new-age areas such as
cosmetics and pecked food Also an anvil and personal care products through
tie-ups with multinationals.

In 1994 the new-age Dabur emerged, fresh from the success of its maiden
public issue, when the Burmans decide to decentralise the control on day to
day affairs. Also a decision was taken to convert the three core business of

12
healthcare, family care and ayurvedic specialities into independent profit
centres, each with its own marketing and distribution set up.

The company has six profit centres:-

• Healthcare products division.

• Family product division.

• Ayurvedic specialities division.

• Ayurvedic division.

• Pharmaceutical division.

• Export division.

This was done not only to increase visibility, but also to give the professionals
more time of focus on existing products with the scope and freedom for each
division to enhance their market presence with additional products.

The strategic rationale for shift from Dabur’s inherited business is that the
OTC drugs like Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of
the business. Dabur has more than 60% share of the branded Chyawan-prash
market. The market share of digestive like Hajmola and Pudin Hara above
80%. The high profile diversification’s, specially in foods and cosmetics, is all
set to build no that franchise.

Dabur has range of over 500 products covering Health and Beauty care, Bulk
Drug Pharmaeuticals, Animal Health Care, Foods, Cosmetic and Natural
Gums.

The strategic rationale for the shift from Dabur’s inherited business is that the
group hopes to leverage its considerable brand equity. Last year, more than
70% of the group’s business came from the family and healthcare division.

13
The former, which covers hair oils, oral care and Dabur Honey, the largest
division, contributing 43% of the bottom line. Health care, covering OTC
drugs like Hajmola, Chyawanprash and Pudin Hara, accounts for 30% of the
business. Dabur has more than 60% share of the branded Chyawan-prash
market. The market share of there digestives like Hajmola and Pudin Hara is
above 80%. The high profile diversifications, especially in foods and
cosmetics, is all set to build on that franchise. Analysts have questioned these
moves because they bring the group up squarely against market dominated by
multinationals and strong domestic players. The young cousins think
otherwise. A close look at the bussiness and the challenges they could face.

Foods:- This cannot strictly be called a new line of business for Dabur. The
company has been selling Sharbat-e-Azam, a herbal drink concentrate, for
over a decade and products like Chyawanprash and Hajmola were already
Classified and sold as food items abroad. Today, the Dabur game plan covers
the entire gamut of the Rs.3000- crore convenience and ready to eat foods.

Making it happen is a spate of tie-ups, there’s excelsior Foods, a 60:10 venture

with the $ 500 million Osem, Isarel’s largest food company, which launched
Creamwich crisps in February this year. Other products on the anvil include
salad dressings, biscuits and noodles. Dabur International is an equal
partnership company with the $2-billion Bongrain SA of Frnace, to make
specialty cheese products. The Rs.10-crore venture will enter the 7500-tonne
per annum cheese market. Here, it will take on established players like market
leaders Amul which has a 60% market share, Vijay(14%) and Vadilal(10%).

One Index of the kind of challenge Dabur could face is the group’s foray into
chewing gum in collaboration with Agrolimen of Spain for its Boomer brand
in 1995. The company claims the venture has been a success-sales reached Rs.
25 crore in the first year against a target of Rs.15 crore. But recently, the unit
price of Boomer was reduced from Rs.1.50 to Rs. 1 after Perfetti India, the
main competitor in this segment, reduced its price.

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Dabur take on established players like Hindustan Lever, Nestle and Amul.
Amit Burman, director-in-charge, foods and cosmetics, is confident. Their
products are unique. This coupled with product quality and Dabur’s brand
equity will give us a unique position.

But it is going to be a long haul. For one, Dabur may be a strong player in the
herbal market, but foods, with a shorter shelf life, require a different
distribution network.

Take the launch of Real fruit juices and Homemade Cooking Pastes in June
97. The product proved to be a sellout but the company was unable to keep
pace with demand. As a result Real and Homemade went off the shelves in 45
days and reappeared only on May 98 and from then it has picked up. The
Burmans are, however, putting some infrastructure in place for their foods
business. For instance, Dabur plans to set up a cold chain network to support
its cheese products business.

Cosmetics:-This was suggested by Gauri, G.C. Buaman’s daughter After a

stint abroad as a student, she realised that quality cosmetics were hard to come
by in India. She mooted the idea of diversify into cosmetics and positioning
the products at a price range the would make them affordable for urban,
middle class women, So Samara, a cosmetics range of skin-care products, was
developed by the Dabur Research Foundation.

Here again, there is tough competition from strong domestics and

multinational players like Lakme, Oriflame and Benekiser. But Amit Burman
is confident of penetrating the Rs. 800 crore cosmetic market. Dabur’s equity
in the herbal category is certainly going to help in marketing these products,
although we do not claim this range to be either herbal or Ayurvedic.

Samara is relating through 150 select outlets in Delhi and Chandigarh and will
roll out in Mumbai shortly. With a projected turnover of Rs. 3.5 crore in the
first year, Dabur is taking no chances. The company has installed skin testing

15
machines and oil outlets. These will help buyers test their skin type before
making a purchase.

Veterinary ayurvedic : Dabur Ayurved, set up in 1995 targets the urbanised

sector. The turnover from this division comes Rs. 17.6 crores in 2003. In 2004
the company hopes to close with a turnover of Rs. 19.8 crores the Rs. 90 crore
market for veterinary herbal drugs, they hold a 20% market share. With very
few competitors, Dabur is eyeing the top slot by this year end.

Natural Gums: This is the binder division of the group set up in 2003,
catering to customer specific binding needs. The ubiquitous tamarind and
sugar seeds constitutes it raw materials. Dabur has signed a technology
transfer and buyback agreement with Sheikibo of Japan, the world market
leader for gums.

Finance: Also on the agenda in Dabur’s foray in the insurance sector. They
have signed an MoU for setting up a 50-50 joint venture with Boston-based
Liberty Mutual Group.

The different product ranges that Dabur offers in each segment are:-

Pharmaceuticals:-Cytostatics, Anti Bacterials, Anti Histimines, Anti

Ulcerants and Antacids, Analgesics and Anti Diarrhoeals, and Anti
Hypertensives.

• Cosmetics:- Skin Nourishers and Tonners, Moisturisers and Sun

Protectors, Cleansers, Face Masks, Hair Oil and Ventilizers, Hair Wash
and Cleaners.

Foods:- Fruit Juices, Homemade Cooking.

Family Products :- Hair Care Products, Dentrificce, Sherbets, Honey and

Food Additives.

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• Products for Global Markets:- Soaps, Shampoos, Shaving Creams,
Cooking Oils and Other select products from Dabur range.

Ayurvedic Specialities:- Liver Tonics, Cardioprotectives, Anti Arthic,

Hypoglycamic, Rejuvenators, Anti Diarrhoels and Bowel Regulatros.

Veterinary Products :- Digestigve, Uternice Tonics, Oestrus Inducers, Liver

Tonics Dermatologicals and Anti Stress.

Bakery Product :- Herbal and health products giant Dabur Ltd. is making an
entry into the business in collaboration with Israel based OSEM Group, a
leading bakery product company in the country. The joint venture will be
floated in which Dabur India Ltd. will hold 60% stake.

The initial investment in the project is to the tune Rs. 10 crore and the project
will be funded through an equity contribution of RS. 5 crore by the two
partners and a loan of Rs. 5 crore. OSEM is one of the largest grocery food
manufacturers with a product line of nearly thousand varieties of cookies,
cake, candies wafers and sauces among other things.

The Dabur-OSEM joint venture manufactures snack foods, mayonnaise,

specialty biscuits and extruded food. Dabur also proposes to transfer its
extruded food products to the joint venture company. The company is already
into making Sharbats (sharbat-ai-Azam), rose water, kewra water, cardamom
extract sold under the brand name of instant, a red pepper salt called Capisico.
Besides they are manufacturing candies called Hajmola. The company intend
making items that are suitable to Indian paletes like or ginger based chutney
along with mayonnaise to cater to the new evolving palet. The company is also
test-marketing a lemon flavoured juice. The revenue generated by the sales of
these products at present amounts to Rs. 4 crores. The joint venture company
will establish an exclusive distribution network for its products line and will
also use Dabur’s existing network for sale of its products.

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Dabur has its roots in Ayurveda and has been manufacturing wide range of the
health care products. If a person comes to buy Dabur honey or Hajmola, he
can also buy the snack food. It is this outlet that the company is using
ultimately to market the product of joint venture. And the product is packaged
convenience food. After all today chips and Pepsi are more popular even in the
remote villages.

Couple of years back Dabur realised that many of its brands were selling in
dying market. Items like extract, rose water etc., could not be promoted
because of thin margins. In the early 1970s Dabur even went into the
manufacturing of pan masalas, which was sold under the brand name of
Nawabi pan masala. However, the venture was given the go-by, in view of the
fact the Dabur is basically a health care company and the product did not go
with the image of the company. Similarly, Chyawan-prash was brought only
by grandparents in rural and semi-urban markets a group which was vanishing
rapidly. To keep growing and attract the younger set of the rural consumer, the
Dabur brand has to shed its image.

And after the years of perfecting rural selling pitch, the marketer need to learn
how to woo the urban buyers. For the past few years, Dabur has been engaged
in balancing its traditional appeal with a modern image and it is a difficult job.
There is a fear in the process that the company may lose its existing customers
and the balancing act between the rural and urban, modern and traditional has
to be maintained cautiously. This was a strategy of Dabur.

This is a bilateral agreement in which Dabur has majority. Dabur is doing the
market research of the Indian psyche-what can be sold and what can not be,
while OSEM is providing the technology. To be successful in the market,
product should have market acceptability and Dabur is confident that their new
products will be as popular as the existing ones. However, they are aware of
the fact that they will face stiff competition. If Hajmola could compete against
chatpat churment from Procter and Gamble, then why not against other things.

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Besides catering to Indian market, the joint venture company also plans to
export its products to Middle East.

EXPORTS

Healthcare products and family products brands contribute 35% of Dabur’s

Export sales. Bulk Drug, including fluconazole, terfenadine and anti-cancer
drugs, accounts for a further 14% of exports, while oil, spices and gum
accounts for the remainder. The companies leading exports is Amla Hair Oil,
which is particularly popular in U.K and the Middle East. Other principal
market include Bangladesh, Sri Lanka and Malaysia, although the company
products are available in cover 50 countries in total.

In terms of recent international launches, the company introduced six single-

ingredient ayurvedic OTC dietary supplements under is Nature Care label in
the U.K, Germany and Italy.

The recent past has spawned a unique economic era. Over the century of
presence against the background of varying economic conditions, has
strengthened Dabur’s marketing skills. Dabur has cope with, indeed thrive in a
changing marketing environment. As a marketer Dabur has listened, learned,
reacted and then created products that have stood the best of time. Products
that have evoloved to become household names in over 35 countries.

Global Vision coupled with motivated human resources, appropriate

technologies and optimum utilisation of resources at all levels are today the
key ingredients for a successful enterprise. These are very foundations of
Dabur’s corporate philosophy.

As a leader cannot be insensitive to the changing nature of customers demand.

Serving them requires a continuous review of technology. Technology
upgradation is a continuous process. At Dabur it is a culture you can not
service tomorrow’s market with yesterday process. Dabur’s advantage is its

19
superior technology edge. And in maintaining this they are not constantly
pushing back the frontiers of technology but also expanding the frontiers of
their own potential and capabilities. The world over standards and bench
marks have changed, and so have Dabur’s, though they continue to be inspired
by ancient wisdom. Dabur uses today technology to deliver it in this successful
blending that give Dabur the confidence of continuing to be the leader even
amidst chage.

The Indian market has gone sea change in the last few years. There has been
influx of some of the latest technology the world has to offer. Dabur has taken
advantage of this and embedded the best of the relevant technology.
Production, Research and Development are the two areas where this infusion
is evident.

Dabur prides itself on its R&D infrastructure. It is the investment that has been
paying rich dividends. R&D at the Dabur is obsession. It is the corner stone of
their innovative skills. Be it an anti cancer drug or herbal enriched hair oil,
Dabur’s research and development has been successfully in developing both
and in transferring laboratories techniques into production. This is very
important because research without its adoption into practice is a mere
academic exercise.

Technology upgradation has not been at the cost of be humanising the quality
of life. Stricker pollution control measures, as expansion of information
technology capabilities have all added to the better environment and work
ethos.

Dabur has always been synonymous with quality. For Dabur it is a culture and
not a stop gap arrangement. Dabur believes that quality is a corporate
responsibility towards employees, and environment in which they operate.
Sustaining consumer confidence for over a century is no mean feat.It is indeed

20
a true reflection of quality of the Dabur’s products. Dabur as a company are
committed to sustain this consumer confidence.

Global vision, a perfect blending of technical and human resource are key
ingredients for growth. These are very foundation that will expand existing
business as well as nurture strategic alliance through commitment innovation
and as emphasis on total quality.

Fiftieth year of independence of India a year of introspection not only for the
country but for Dabur also. From private limited company at the time of
independence, Dabur has come a long way to be a widely held company rated
amongst the best business ho/se of India. Dabur feels proud in reminiscing
those years of achievement. Economic growth is not an end in itself. It is the
contribution to the environment in which you flourish, that matters. Dabur has
contributed by providing health care for the society we live in. has cared for its
customers and has tended the nature that provides raw material for the
company’s product.

Dabur has taken everyone in their journey towards growth and progress.
Shrinking global borders has made the company part of the international
community. Changing world economy has changed the ground realities. The
company has lived upto these challenges and have entered new market
overseas. Back home, company has diversified into new areas.The company
will look forward to new opportunities for growth in years to come. Dabur has
kept pace with time . It has changed, evolved and contemporised. Dabur has
learned to outpace the competition. And is sure that it will continue to be a
leader in all the areas of its activities in the golden year of Indian
independence and beyond.

ADVERTISING

The new advertising campaigns were taken by 112- year old company to
position it as a contemporary, up market company. Forget dada- dadi’s brand.

21
The 112-year old veteran in pharmaceuticals and hair care, Dabur India limited
is swiftly shedding its traditional trappings and turning contemporary and chic.
It is not just the product profile that is metamorphishing, through Dabur’s new
offerings Samara cosmetics, Real fruit juices and home made pastes are more
trendy than its old brands Pudin Hara, Dabur Amla Hair Oil and
Chyawanprash. Far more interesting is the change in the company’s
positioning. From sedate endorsements from filmstars and rishis.

Dabur’s new preferece is for interactive advertising, and its spokes persons are
more often than not, attractive young women.

The brands have evolved over the years to suit the consumer. The shift from
traditional is in tandem with the changing trends in consumer behaviour.

Indians have become more aware of their rights and new generation refuses to
buy brands just because it is dadaji’s favourite. It needs more valid reasons to
make a choice. Dabur’s new advertising style gives them valid reasons.

The campaigns are intended to give better discounting on bourses. The intense
campaigns are a part of Dabur’s growth strategy which is aimed at:

• Leveraging on its brand equity by introducing line extensions.

• Creating a niche for itself by innovative product introductions.

• Creative about Home made and Lamoneez campaigns ad conveys the

message to the target audience working women in a short span of 15-20
seconds.

Dabur’s attention to advertising and promotion was provoked by a 1993

market survey, which showed most consumers perceived Dabur to be a small
company, with only one or two factories and no more than a handfull of
products. However, the company was determined to strengthen its corporate
image in order to attract foreign partners and joint ventures.

22
DISTRIBUTION CHANNEL

Dabur commenced operations in 1984 and is today a multilocational,

multiproduct enterprise. The company has major interests in health and beauty
care.

Dabur is a leader in ayurveda the traditional Indian health care system. The
company manufactures and markets a range of oncologicals. Dabur is one of
the few companies in the world to produce Paclitaxel an anti-cancer drug. The
company has developed its own eco-friendly process to manufacture this drug
from raw material stage.

The company has 12 manufacturing plants in India, Nepal and Egypt. Dabur
products are also in Dubai.

Dabur has a transnational network of 19 offices servicing both rural and urban
markets in India.

The company has sales and marketing offices in London and Dubai. Dabur
products are available in over 50 countries.

Dabur has collaborated with leaders in their field to set up a joint venture in
India. The joint venture with Agrolimen of Spain, General de Confiteria India
Limited, manufactures confectioneries. Dabon International Ltd, the joint
venture with Bongrain will manufacture speciality cheese. Dabur has
collaborated with OSEM of Israel to manufacture bakery specialities and other
food products.

Dabur has a range of over 500 products covering health and beauty care, bulk
drugs, pharmaceuticals, animal health care, foods, cosmetics and natural gums.

Dabur has one of India’s largest distribution network.. In 2003 Dabur products
estimated 27 retail outlets. This strong distribution network has ensured
availability of Dabur products in almost every part of the country. From the

23
small pan shops to grocery stores, from drug stores to big markets, Dabur
products are available in all.

It has already deployed as many as 130 representatives to roam rural India,

where its market lies, and interact with farmers directly to spread the message
of herbal animal health care. This is one of the largest sales source deployed
by any company for marketing veterinary medicine in the country.

MARKETING

Having set up a new foods division recently, the Rs. 1050 crore Dabur group
has the difficult task of making an impact with its product launches in the
market place , initially dominated by mega brands from deep pocketed
transnationals, and ruled by consumers whose age old eating habits were not
easy to change. Moreover Dabur’s products are range of exotic pastes and
packed fruit juice were essentially new concepts which consumers were not
familiar with, in branded form at least, in this country.CEO G.C. Burman’s
search for the best way to stage a big bang entry ended in time based
competition. Instead of phasing out the launches of its new products, which
would have been tantamount to adding a small drop to an ocean at discrete
intervals, he decided to roll out new products in one breathless burst of six
weeks, introducing one new brand on every Monday. In the market place
Dabur beat every other company planning to introduce products in the same
segment, thus gaining almost generic association in the customers mind for
some newer brands. On the consumers psyche, the brands blikzkrieg registered
Dabur as a modern food company, helping in dismantling its earlier image of
being a vendor of semi medicinal ayurvedic products only, and within the
organisation. The imperative for these products only, and within the
organisation. The imperative for these rapid fire product launches led to a
dramatic quickening of the pace of supporting activities like distribution and
production, preparing these processes to respond to the changing demands on

24
them at high speed. Thus, by competing on time, Dabur has given both its
product and its internal processes a head start in locking horns with rivals.

STRONG BRAND EQUITY

A vast product portfolio (over 450 products), a modern research base and a
strong transnational marketing and distribution network are some of the major
factors contributing to the success of Dabur India. The companies product
portfolio encompasses product line like herbal health care, beauty care,
ayurvedic medicines, ayurvedic vaterinary products, pharmaceuticals
cosmetics, and natural gums and foods. Dabur is the market leader in most of
three product categories in the domestic market. It is also the leading exporter
of herbal health care and beauty care products. Having indentified its
strengths, the company stuck to its crore competencies.

While all the 450 products were under one umbrella earlier, the restructuring
of its business into six distinct divisions, each headed by an independent
professional, has provided Dabur with the much needed foucs. The result of
this restructuring of its business into six distinct divisions, each headed by an
independent professional, has provided Dabur with the much needed focus.
The result of this restructuring are reflected in the 9603 results sales growth of
39% and improvement in the OPM from 9% to 12%.

Distribution, marketing and product innovations are the major strength of

Dabur. The ability to find need gaps in the market, to develop products
accordingly and ensuring the timely availability of these products to
consumers have been the hallmark of the company. In the process, it has build
a formidable brand equity. One of the most important decisions taken by the
company in its formative years was to give the consumers good value for their
money.

Dabur has grown steadily over the last one decade. To achieve faster growth
rates, the company diversified into areas where its strengths could be utilised.

25
26
OBJECTIVES OF THE
STUDY

27
 OBJECTIVE OF THE STUDY

Following are the major objective of study:-

1. To study the impact of Budget Policies on Marketing Strategy of Dabur

Foods.

2. To study the Consumer, Buying behaviour.

3. To study the problems faced by Dabur.

IMPORTANCE OF THE STUDY

Being student of MBA it is very essential for me to have a practical knowledge

in an organisation. Only to study business administration course knowledge is
not the solution of the problems, which arise in practical field. There is a
certain formula for any particular problem, but the aim of this study is to
develop the ability of decision making. A right decision at right time and right
place itself helps an organisation to run smoothly.

This study gives an idea of all marketing activities. So the way a problem is
solved right decision making and knowledge of different types of making
activities give much importance to the study. Only in two month training it
was not possible to understand it so deeply, but an overall idea could be
developed.

28
COMPANY PROFILE

29
 COMPANY PROFILE

DABUR AT A GLANCE

Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story of
success is based on dedication to nature, corporate and process hygiene,
dynamic leadership and commitment to our partners and stakeholders. The
results of our policies and initiatives speak for themselves.

 Leading consumer goods company in India with 4th largest turnover of

Rs.1329 Crore (FY02)

 2 major strategic business units (SBU) - Consumer Care Division

(CCD) and Consumer Health Division (CHD)

 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur

International and 3 step down subsidiaries of Dabur International -
Asian Consumer Care in Bangladesh, African Consumer Care in
Nigeria and Dabur Egypt.

 13 ultra-modern manufacturing units spread around the globe

 Products marketed in over 50 countries

 Wide and deep market penetration with 47 C&F agents, more than
5000 distributors and over 1.5 million retail outlets all over India

CCD, dealing with FMCG Products relating to Personal Care and Health Care

 Leading brands -

 Dabur - The Health Care Brand

30
  Vatika-Personal Care Brand

 Anmol- Value for Money Brand

 Hajmola- Tasty Digestive Brand

 and Dabur Amla, Chyawanprash and Lal Dant Manjan with

Rs.100 crore turnover each

 Vatika Hair Oil & Shampoo the high growth brand

 Strategic positioning of Honey as food product, leading to market

leadership (over 40%) in branded honey market

 Dabur Chyawanprash the largest selling Ayurvedic medicine with over

65% market share.

 Leader in herbal digestives with 90% market share

 Hajmola tablets in command with 75% market share of digestive

tablets category

 Dabur Lal Tail tops baby massage oil market with 35% of total share

CHD (Consumer Health Division), dealing with classical Ayurvedic

medicines

31
  Has more than 250 products sold through prescriptions as well as over
the counter

 Major categories in traditional formulations include:

- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils

 Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol
- Madhuvaani
- Trifgol

 Division also works for promotion of Ayurveda through organised

community of traditional practitioners and developing fresh batches of
students

COMPANY HISTORY

1884 Birth of Dabur

32
1896 Setting up a manufacturing plant
Early 1900s Ayurvedic medicines
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
1979 Sahibabad factory / Dabur Research Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Rs.1,000 crores

33
Dabur's mission of popularising a natural lifestyle transcends national
boundaries. Today there is global awareness of alternative medicine, nature-
based and holistic lifestyles and an interest in herbal products. Dabur has been
in the forefront of popularising this alternative way of life, marketing its
products in more than 50 countries all over the world.

Our products World Wide

We have spread ourselves wide and deep to be in close touch with our
overseas consumers.

 Offices and representatives in Europe, America and Africa;

 A special herbal health care and personal care range successfully

selling in markets of the Middle East, Far East and several European
countries.

 Inroads into European and American markets that have good potential
due to resurgence of the back-to-nature movement.

34
  Export of Active Pharmaceutical Ingredients (APIs), manufactured
under strict international quality benchmarks, to Europe, Latin
America, Africa, and other Asian countries.

 Export of food and textile grade natural gums, extracted from

traditional plant sources.

Partnerships and Production

 Strategic partnerships with leading multinational food and health care

companies to introduce innovations in products and services.

 Manufacturing facilities spread across 3 overseas locations to optimise

production by utilising local resources and the most modern
technology available.

DABUR GROUP

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

 DABUR FOODS

 DABUR NEPAL

 DABUR EGYPT

 DABUR ONCOLOGY

 DABUR PHARMA

35
36
 COMPANY PHILOSOPHY

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

This is our company. We accept personal responsibility, and

accountability to meet business needs.

We all are leaders in our area of responsibility, with a deep commitment

to deliver results. We are determined to be the best at doing what matters
most.

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

We have superior understanding of consumer needs and develop products

to fulfill them better.

37
We work together on the principle of mutual trust & transparency in a
boundary-less organisation. We are intellectually honest in advocating
proposals, including recognizing risks.

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

We are committed to the achievement of business success with integrity.

We are honest with consumers, with business partners and with each
other.

MILESTONES

Milestones to success

Dabur India Ltd. made its beginnings with a small pharmacy, but has
continued to learn and grow to a commanding status in the industry. The
Company has gone a long way in popularising and making easily available a
whole range of products based on the traditional science of Ayurveda. And it
has set very high standards in developing products and processes that meet
stringent quality norms. As it grows even further, Dabur will continue to mark
up on major milestones along the way, setting the road for others to follow.

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

38
 1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of
specialisation. It is the first Company to provide health care through
scientifically tested and automated production of formulations based on our
traditional science.

1930 - Automation and upgradation of Ayurvedic products manufacturing

initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda

Dabur introduces Indian consumers to personal care through Ayurveda,
with the launch of Dabur Amla Hair Oil. So popular is the product that it
becomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products
continues. The ancient restorative Chyawanprash is launched in packaged
form, and becomes the first branded Chyawanprash in India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment

Addressing rural markets where homemade oral care is more popular than
multinational brands, Dabur introduces Lal Dant Manjan. With this a
conveniently packaged herbal toothpowder is made available at affordable
costs to the masses.

1972 - Shifts base to Delhi from Calcutta

39
 1978 - Launches Hajmola tablet

Dabur continues to make innovative products based on traditional

formulations that can provide holistic care in our daily life. An Ayurvedic
medicine used as a digestive aid is branded and launched as the popular
Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most modern herbal

medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun

The Ayurvedic digestive formulation is converted into a children's fun product

with the launch of Hajmola Candy. In an innovative move, a curative
product is converted to a confectionary item for wider usage.

1994 - Comes out with first public issue

1994 - Enters oncology segment

1994 - Leadership in health care

Dabur establishes its leadership in health care as one of only two companies
worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur
Research Foundation develops an eco-friendly process to extract the drug from
its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

40
1996 - Real blitzkrieg

Dabur captures the imagination of young Indian consumers with the launch of
Real Fruit Juices - a new concept in the Indian foods market. The first local
brand of 100% pure natural fruit juices made to international standards, Real
becomes the fastest growing and largest selling brand in the country.

1998 - Burman family hands over management of the company to

professionals

2000 - The 1,000 crore mark

Dabur establishes its market leadership status by staging a turnover of
Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a
small beginning based on traditional health care. To a commanding position
amongst an august league of large corporate businesses.

2001 - Super specialty drugs

With the setting up of Dabur Oncology's sterile cytotoxic facility, the
Company gains entry into the highly specialised area of cancer therapy. The
state-of-the-art plant and laboratory in the UK have approval from the MCA of
UK. They follow FDA guidelines for production of drugs specifically for
European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4

crore

2003 - Dabur demerges Pharmaceuticals business

Maintaining global standards

41
 As a reflection of its constant efforts at achieving superior quality standards,
Dabur became the first Ayurvedic products company to get ISO 9002
certification.

INANCIAL REPORT

Rs (Crores)

2007-2008 2005-2006

Turn over (including other income) 1280.22 1159.02

Profit before tax 165.02 113.44

Add: Provisions of earlier yr written back - 0.20

165.02 113.44

Less: provision for taxation - current 13.00 8.75

: provision for taxation – Deferred 4.00 3.49

: provision for taxation for earlier yr 0.05 00.26

PROFIT AFTER TAX 147.97 101.14

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

From the previous yr

- Transferred from debenture -- 2.50

Redemption Reserve

- Transferred from investment 0.83 -

Allowance Reserve

- Transferred from Investment 1.82 -

42
 Deposit Revenue

PROFIT AVAILABLE FOR APPLICATION 231.74 169.76

APPROPRIATION TO:

General Revenue 25.15 22.50

Capital Revenue - 1.56

Interim Dividend paid 28.63 17.17

Final Dividend – proposed 42.96 40.07

Corporate tax on Dividend 9.77 7.34

Balance carried over to Balance sheet 125.23 81.12

TOTAL 231.74 169.76

43
 RESEARCH
METHODOLOGY

44
 RESEARCH METHODOLOGY

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

successfully launched in the last three years.

The data was collected both with the help of primary as well as secondary
sources.

For primary data, I proceeded with the drafting of the questionnaire for
consumers was structured as undisguised, & Personal -interview retailers.
Distributors & wholesalers and it was handed personally by me to the
respondents to be 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, newspapers, journals, brochures and also through
the internet. For secondary sources no field work was employed.

In order to amplify the empirical findings from primary and secondary

sources, a survey was conducted both of consumers and retailers Distributor &
Wholesalers in order to gaunche the market opinion.

The questionnaire was of multiple choice and the pattern of questions was as
simple as possible. With every question, multiple choices were given and
respondents were asked to select one of them. The questionnaire technique

45
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 Real Fruit Juice and Homemade Cooking Paste.

1. Sample size for customers were 150 in number and the universe
comprised of all the consumers within the geographical region of
Delhi.

2. Sample size for retailers were 40 in number and the universe

comprised of all the consumers within the geographical region or
Delhi.

3) Sample size for Distributor & Wholesaler were four in number & the
universe comprised of all the consumers within the geographical region
of Delhi.

No other field work was employed to gather the information. The

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

The statistical technique such a Pi-chart and percentages were used in

analysing and interpreting the data.

46
MARKETING
STRATEGY

47
 MARKETING STRATEGY FOR DABUR FOODS

FRUIT JUICES : INDUSTRY

Fruit processing industry has been included in the high priority sector, which
means automatic approval for upto 51% foreign equity participation, free
import of capital goods, raw materials and other inputs for export oriented
units, and five tax-holiday for companies. This special treatment was
warranted due to inherent high growth potential.

There has been three-fold increase in fruits processing units in the last seven
years. The installed capacity of fruit processing industry has gone upto 29.10
lakh ton in 2003 from 19.50 lakh ton in 1998. The output of processed fruit
grew by around 22% during the same period.

Though, as a result of value addition, the industry is said to be rowing at 10-

15% per annum, no significant change has accrued to the companies from
increased production of fruits as the cost of production has remained high,
primarily driven by the cost of raw material. High cost of raw material is due
to small land holdings, which discourages the use of mechanised methods and
there are no economies of scale.

Also, as the processors from several small products, maintaining cosistency in

quality of raw material becomes a problem. A plausible solution to this
problem could be corporisation of agriculture, especially for the production of
fruits. Large tracts of land can be allowed to be developed by the corporate
using modern technology.

The industry is extremely decentralised and a large number of processing units

are in the cottage and small-scale sector. The other major problem is the poor
post-harvest handling facilities. Consequently, the quality of fruit reaching the
processors continues to suffer.

48
There are few or no cold chains and cold storages in and around growing
centres. Poor storage and constant handling affects the quality of the fruits and
the processing companies end up losing 30% of raw material. This again leads
to an increase in the cost of manufacturing. Capacity utilisation continues to
remain abysmally low, at around 32%. This is because most fruits are seasonal
and the processing plant still prefers to go in for single fruit. More recently
companies like Dabur, which manufactures Real range of fruit juices, have
started experimenting with processing two or more fruits. Capacity utilisation
may improve significantly if this trend becomes more popular. Brand building
is an important part of selling and surviving strategy for fruit processing
companies. Companies like Tropicana from Pepsico. which sells juice under
the brand name Tropicana and Dabur’s Real fruit juices have emerged as
successful brands, signifying the importance of brand building in the fruit
processing industry.

On the export market front, the picture seems to look better. A whole range of
new processed food products is emerging as the new export potential, which
specifically include the fruit juices. The Indian exports were generally
dominated by mango pulp.

Within the domestic market, among the processed fruit products, fruit juices
and such other products, like nectars etc, are beginning to get a market. But the
off-take is limited to the high income group. These products also face stiff
competition from bottled aerated drinks.

These facts does not really mean a dismal potential installed in for fruit juice
industry there exists a latent demand for fruit juice in the country. Indian
consumer has become more and more hygiene and health conscious, which has
led him to demand for hygienic food products. Fruit juices thus, have a great
potential to appeal to the Indian Consumer. The income level of the average
Indian is rising which has resulted in increase in disposable incomes.
Therefore, consumers are ready to buy packets, processed and hygienic fruit

49
juices rather than a glass of juice from the roadside juice vendor, even if the
packed juice may cost him more. Realising these facts and Govt policy to
include processed fruit juice industry under the high priority sector, many new
and old companies entered the packed fruit juice market.

To precede everyone, was the Rs. 1050 crore Dabur India Ltd which is well
known as a pharmaceutical company. In June, 1996 Dabur, entered the juice
market realising its potential with its vast range of Real fruit juices. Real fruit
juices were not an instant success. Its failure can be attributed to the slackness
in the distribution network.

Learning upon the lost opportunity by Dabur, a Mumbai based textile firm
looked upto to diversify its business operations and entered the fruit juice
market with the formation of Enkay Texofood Ltd. Their brand Onjus was
launched in April 97, and with careful planning they captured a huge market
share in virtually monopolistic market conditions.

Dabur later realised its mistakes and geared up to take on the market leader
Onjus. Relaunched, Real fruit juices in August 98, the revitalizedReal fruit
juices have started doing well after its relaunch.

Watching the intense battle between Tropicana and Real fruit juices, to caputer
the Indian fruit juice market, international soft drink giant Pepsi decided to
enter this lucrative fruit juice market. Pepsi recently launched its answer to
Onjus and Real in the shape of Tropicana.

The presence of Tropicana, Real and Berry suggest that there is an immense
potential in the Indian fruit juice market. Even though the established players
like Onjus and more frequently Real have captured a chunk of the juice
market. The entry of Tropicana suggest that there is still scope for others to
enter into this market and hatch the eggs of the golden goose, Indian juice
market.

50
The products undertaken in fruit juice segment in the Beverage industry are:

• Tropicana from Pepsico

• Real Fruit Juices by Dabur India Ltd.

Berry an Australia Product.

MARKETING STRATEGIES OF DABUR FOODS LTD.

The activities and programs which a business firm designs and carries out in
its efforts towards winning customers, relate one or the other of the four
elements, which are usually known as four P’s of marketing, or just Marketing
Mix variable.

• Product

• Place

• Price

• Promotion

1) Product means the goods and the services combination the company Offers
to the target market.

Its variables are :-

- Product mix and product line

- Design, quality, features, models, style, appearance, size and warranty

of products.

- Packaging, type, material, size, appearance, label

51
- Branding and trademark

- Services, pre-sale and after-sale

- New products

2) Place includes company activities that make the product available to

target consumers.

Its variables are :-

- Channels of distribution, types of intermediaries, channel design, location of

outlets, channel remuneration and dealer - principle relations

- Physical distribution, transportation, warehousing, inventory levels, Order

processing etc.

3) Price is the amount of money customers have to pay to obtain the Product.

Its variables are :-

- Pricing policies, levels of margins, discount and rebates.

- Terms of delivery, payment terms, credit terms and installments Facilities.

- Resale and price maintainence

4) Promotion means activities that communicate the merits of the product and
persuades the target customers to buy it.

Its variables are :-

- Personal selling:- objectives, level of effort, quality of sales force, cost level,
level of motivation.

- Advertising : media mix, budgets, allocations and programs.

- Sales promotional efforts, displays, contests, trade promotions.

52
- Publicity and public relation.

An effective marketing program blends all the, marketing mix elements into a
coordinated program designed to achieve the company’s marketing.

objectives by delivering values to consumers. The marketing mix constitutes

the company’s tactical tools kit for establishing strong positioning in target
markets.

Thus, from the above it is very much clear that the proper marketing mix is
necessary for the products to be successful.

Hence, the product to be analysed as stated here under with their marketing
mix.

53
PRESENTATION OF

DATA

54
 PRESENTATION OF DATA

CONSUMERS ANALYSIS

DABUR REAL JUICES

1. People Drinking Fruit Juices

No
0%

Yes
100%

55
2. Brand Awareness

90% 82%
80%

70%

60%

50%

40%

30%
19%
20% 11%
7%
10% 4% 3%

0%
Ad. Poster Shopkeeper Friends Neighbours Others

56
3. Category of Real Juice Consumer Mostly Buys

67%
70%

60%
52%

50% 43%

40%
36%

30%

20%
13%

10%

0%
Mango Orange Pineapple Mix Tomatto

57
4. Seasonal Consumption of Real Juice

Constant
Winter 13%
4%

Summer
83%

58
5. Consumption of Real Juice if there will be slight increase in Price
& Increase in quality

High
Constant 37%
47%

Low
16%

59
6. Customer Expectation from Dabur by exemption of excise Duty.

Price Benefit
Mix of both 21%
Price &Quality
36%

Quality Benefit
43%

60
7. Consumption of Real Juice if there will be increase in quality and
slight decrease in price.

Constant
29%

Low
0%
High
71%

61
8. Will discount influence customers to leave Dabur & use other Juice
knowing Real Juice is better.

Yes
27%

No
73%

62
 CONSUMERS ANALYSIS

DABUR HOMEMADE COOKING PASTES

1. Use of Cooking Paste to make food delicious

No
21%

Yes
79%

63
2. Recall of Dabur Homemade Cooking Pastes

70%
62%

60%

47%
50%

40%

30%

20% 14%
11%
10% 6%
3%

0%
Ad.

Friends

Neighbours

Others
Posters

Shopkeepers

64
3. Category of Paste Consumer Buy.

87%
90%

80% 74%

70%

60%

50%
41%
36%
40%

30%

20% 11% 17%

9%
10%

0%
Capsico Red
Garlic

Ginger

Capsico Green
Garlic/Ginger

Tamarind
Lemoneez

65
4. Customer expectation from Dabur by exemption of excise duty.

Mix of both
Price & Quality
26%

Price Benefit
57%
Quality Benefit
17%

66
5. Consumer of Homemade if there will be slight increase in Price &
increase in quality

High
16%
Constant
41%

Low
43%

67
6. Consumption of Homemade if there will be increase in quality &
slight decrease in Price

High
34%

Constant Low
66% 0%

68
7. Do discounts influence customers to leave Dabur & use other Paste
Knowing Homemade is better

Yes
21%

No
79%

69
 RETAILERS ANALYSIS

DABUR REAL JUICE

1) Stocking of Real Juice by the Retailers

No
18%

Yes
82%

70
2) Purchase of Juice Type

Others
24%
Real Juice
44%

Tropicana
32%

71
3) Stocking of Real Juice Over the Past Year

Remined the
Decreased
same
0%
23%

Increased
77%

4) Reasons for stocking Dabur Real Juice

72
 Promotional
Schemes
8%

Higher trade
margins
49%

Consumer ask
for it
43%

73
5) Any effect of increase in Price in real Juice

Yes
17%

No
83%

74
 RETAILER ANALYSIS

DABUR HOMEMADE

1) Stocking of Homemade by the retailer

No
37%

Yes
63%

2) Purchase of Cooking Paste

75
 Locally made, Others
Unbranded 5%
4%

Dabur
Homemade
91%

3) Stocking of Dabur homemade cooking Paste over the past year.

Decreased
0%

Remained the
same
41%
Increased
59%

Q.4. Reasons for stocking Dabur Homemade

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 No other
Promotional
Natural brands
Schemes
available
4%
15% Higher trade
margins
42%

Consumer ask
for IT
39%

77
5) Any effect of Budget

Yes
16%

No
84%

78
ANALYSIS OF DATA

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 ANALYSIS OF DATA

SWOT ANALYSIS

STRENGTHS:-

• It is present in two sweetened and unsweetened taste

• Efficient distribution channel

• Affordable and visible

• User friendly packaging

• Extended shelf life

• Easy availability

• Reliability

• Appeals to health and hygiene conscious people

• Large product line

• Undifferentiated market

WEAKNESSES

• Consumer’s perception towards Dabur as a pharmaceutical company

• Perishable product

• Stringent quality management

• High investment required

OPPORTUNITIES

• Growing stage- sunrise industry

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• Changing consumer habits

• New flavours especially vegetables

• Export potential

THREATS

• Entry barriers not high

• Competition from MNC’s

• Competition from non-alcoholic beverage market.

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FINDINGS

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 FINDINGS

THE MARKETING MIX

PRODUCT ( Real Juice )

The Facts :

The Real range of juices includes orange, mango, pineapple and mixed fruit
juices as well as its vegetable variant, tomato in its product line.

This juices contain 100 percent fruit juice. Real has no additives artificial
flavour, colour or preservatives.

The fruit juice has a self life of six months and does not need refrigeration at
the retail end. The Juices are available both in sweetened and unsweetened
form.

Real fruit juices were available and packed in Nepal in 500ml and llitre
tetrapack, Prevaiously it was available in elopack. To overcome this
hindrance, Dabur India tied up with Godrej Foods regarding the packaging of
Real, and now Real is available in tetrapacks of 200ml, 250ml, 500ml, l litre
which are tapped at the top for easy handling. The market share of Real juices
account for 35% & enjoying the Privilege of becoming Mkt leader.

FINDINGS :-

In terms of variety and flavour, Real offers a multiflavoured variety. Also,

Indians are known to have a sweet tooth, Real juices are available in
sweetened flavour also. Real provides naturally sweet and artificially
sweetened juices- a big plus for the Real brand. Also now, Real fruit juices are
available at every hook and corner.

Elopacks were introduced by Real to ensure good juice quality but as

tetrapacks are preferred and now Real juices are packed in tetrapacks keeping

83
the quality and easy handling, so as for now, Real juices are available in
tetrapacks of 200ml, 500ml and l litre.

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PRICE

FACTS

Brand Flavours 200ml 250 ml 500 ml 1 litre

Orange

REAL (sweetened 13 - Rs 35 Rs 60
Unsweetened)

Mango

FRUIT (Sw and Unsw) Rs 10 - Rs 35 Rs 60

Pineapple

JUICES (Sw and Unsw) - - Rs 35 Rs 60

Mix Fruit Juice

(Sw and Unsw)
- - Rs 35 Rs 68

Tomato Rs 35 Rs 60

(Sw and Unsw - -

FINDINGS:-

Real, multi flavoured brands has put its different flavours under different price
tag keeping in mind the preferred tastes of Indian consumer. The sweetened
and unsweetened juice varieties are priced same.

Since Real is fighting its battle not just against its immediate competitor
Tropicana but also against the established Frooti, so the prices for orange and
mango juices are in a competitive range and the other juices are priced a
higher than that of orange and mango juices keeping their novelty and
preferences of Indian consumer in mind. Last year, Real launched its festive
carton of four 500 ml packs (2 oranges, 1 mixed and 1 tomato) priced at Rs.

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90. This year Real launched a gift pack of four 500ml packs (mango, orange,
pineapple and mixed fruit juices) priced at Rs. 105. Also, Real has launched a
scheme of Buy two orange juice pack of 250ml and save Rs. 8’. The company
believe that once the consumer try the brands at slashed price, the brands
would gain peak sales year after year. However, the company failed to
understand that consumer in general are no longer brand loyal and are always
hunting for “value of money”. In order to steal the show from aerated, non-
alcoholic fruit drinks, it is imperative that the company try and increase profits
by increasing sales volume and reaching economy of scale and not by
increasing price tag.

PLACE

The Facts:-

Real is aimed at teenagers, young kids, wives, mother and family people.
Initially, when Real Fruit juices were launched, they were sparsely available.
Positioned as an up market brand, it was mostly available in mid-up market
outlets. The absence of small, convenient packs made Real less discrete in a
Premises outlets like college canteens and roadside stores. To make matters
worse in-transit damages to the packs during carton handling earned the brand
a bad name initially. But realising their mistake and after loosing a large chunk
of its market share to its competitor, the packing of Real was changed from
elopackes to tetrapacks, and the distribution channel was made more efficient.
The efficiency of distribution is such, that now Real fruit juices are available
every where.

FINDINGS:-

Real has done well to elaborate their consumer segment from kids, teenagers
to young adults and family people, surprisingly the sales has not risen
exponentially. In today’s buyer’s market, if one brand is not available, the
second one would conveniently takes its place. Product differentiation and

86
eventually brand loyalty is continuously diminishing in the competitive market
of today. As a result, services especially as that of distribution and logistics
gains crucial importance. So, initially Real went off the shelves due to the
slack distribution network and then in August, after relaunching it again in
tetrapacks and making it available at every nook and corner, it has gained
momentum substantially.

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PROMOTION

THE FACTS:-

Real : ‘Do you believe in real love? There’s nothing artificial about it’

The essence of Real’s promotional work is ‘real’. To the up market housewife,

it is posed as a convenient pack full of nutritional value. Though considered as
a premium product, because of its price competitiveness, it is being pitched
against roadside juicewalls. Completely hygienic and ‘value for money’ are
the messages being sent across. Real, barring a few advertising spots has not
really advertised much. But all this is set to change this year with and
advertising budget of about Rs. 1 crore strategy is being worked out with door
to door sales and sample promos. To add variety Real now even comes in blue
packs, equipped with screw back-ups.

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FINDINGS:-

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

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THE MARKETING MIX

PRODUCT (HOMEMADE)

FACTS:-

The Homemade range of Pastes includes Lemoneez, Garlic, Ginger, Mustard,

Garlic ginger mix, Tamarind, Capsico Red & Capsico green.

The Pastes contain 85% Natural ingredient with additives artificial flavour,
colour or Preservatives.

Home mades has a self life of 6 months & does not need refrigeration at the
retail end Home mades are & in tetrapack form & available in 50% (T.P.),
200g & 250g.

FINDINGS:-

In terms of variety & flavour, Real offers a multi flavoured variety. Also
Indians are known for eating delicious foods. In provides artificial taste- a big
Plus for Homemade brand.

Bottle, Pack & Tetra pack were introduced by Homemade to ensure goods
quality.

PRICE

FINDING:-

Homemade, multiflavoured brands has Put its different flavours under

different price tags keeping in mind the preferred tastes of Indian Consumer.

As Homemade is a new concept and Dabur was Ist to launch Cooking Paste by
the name of Homemade, Prices were kept low as Garlic/ Ginger mix 50g
(T.P.) is priced at Rs. 5 Homemade 50g (T.P.) was given free with 250g Dabur

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Honey as Company believe that once consumers try the brands at slashed
price, The brand would gain Peak sales year after year.

PLACE

Homemade is aimed at House wives & mothers. Initially when Homemade

cooking Paste were launched, they were sparsely available Positioned as an
up Market, brand it was mostly available in mid up Mkt., brand it was mostly
available in mid up Mkt outlets. The Packaging of Homemade was changed
from simple pack to tetrapacks & the distribution channel was made more
efficient. The efficiency of distribution is such, that now Dabur Homemade
available everywhere.

FINDINGS:-

Homemade has done well the market the market despite the fact that it is a
new concept for the people to digest it. Homemade sales are increasing every
year and its distribution network becomes strong. Now it is available at every
nook & corner, it has gained momentum substantially.

PROMOTION

HOMEMADE:- Silwatte Ka Jaadu.

The essance of Homemade’s Promotional work is Natural ie, Convenient Pack

full of nutritional value. Prices were kept less as it is a new concept and Dabur
is the only Indian Company which is manufacturing cooking pastes.
Completely hygienic & Taste of nature are the messages being sent across. To
add Variety Homemade comes in bottle, Pack & Tetrapacks.

As in India People prefer to go for fresh things and there is easy availability of
these food products. As it is a new concept and to promote Homemade. T.P of
Rs. 5 were given free with other Dabur products from time to time.

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LIMITATIONS

92
 LIMITATIONS

1. The retailers distributors & wholesales visited by me were

helpful but initially they were reluctant to provide any information
such as their monthly sales of or personal information budgets were not
provided by them, so secondary data was seeked.

2. The secondary data collected might consist of manipulations, which

might have given bias in the result.

3. The lack of experience in preparing the project report.

4. Lack of experience in drafting the questionnaire.

5. Lack of knowledge on the part of the respondents regarding the subject

matter.

6. Survey results may be prone to sampling errors.

7. Lack of time as time to visit retailers, distributors & wholesalers is

done mainly in afternoon.

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RECOMMENDATION
AND
CONCLUSION

94
 RECOMMENDATIONS

1. As the products analysed belong to the cooking pastes and fruit juices
segment, stringent quality management is necessary at each and every
stage of production, packaging and distribution.

2. The message of the nutrition value and the quality

in hygiene aspects should be put across on
tetrapacks and bottles.

3. A common Indian is aware of soft drinks and even fruit drinks but least
of all of fruit juices, so what is therefore required is extensive
promotion for Real Juices.

4. Real fruit juices has opened the gates for vegetable juices, by
introducing-Tomato variants, other vegetable flavours such as that of
carrot can also be introduced- which will definitely appeal to health
and hygiene conscious consumers.

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 CONCLUSIONS

The juice Industry is yet to capture the beverage market in full swing. Aerated
soft drink followed by fruit drinks dominate the market. The consumer’s
patriotic love for tea and coffee is unfared. Juices are yet to establish their
supplement use in the average household here in lies the great opportunities.
Within the market, it is safe to conclude that Real has hit off ratherwell with
the masses. Real has clearly lost it head start advantage and thereby acquiring
just 35% of the market share while others enjoys rest of the market share. This
could be well attributed to Real successful ATA (Availability, Taste and
Affordability) marketing module, the attributes most rated by the consumers.
Lack of publicity has hampered the growth progress of the brand so
aggressive advertising is needed to promote Real and Homemade brand .The
brands such as that of ‘Splash’ by Nestle, Safal with its ‘Guavaand Mango
flavour, Coca-Cola’s ‘Minute- made’ and also US food giantssDel Monte are
ready to hit the juice market very soon.

Homemade cooking Pastes has no major competition except an Australian

Product Tobasco. As Cooking Paste is a new product so people are not able
to digest it yet Dabur is getting 8 crores from Homemades in which Ginger
garlic mix accounts for 4 crores, Lemoneez 1 Crore & others 3 Crores .

As the strategies of the companies keeps on changing, be it in juice industry

or soft drink industry , a company has to create perceptions and cover them
into realities. It is an expensive proposition requiring huge expenditure on
advertising, sponsorships and media. Thus, the ideal company will be the one
which combines the high end technology with consumer insight.

As 16% of the excise duty is exempted on food products in this budget , Many
food companies including Dabur got benefited from it . On the analysis of
survey it was found that target Market of real Juice want quality benefit rather

96
then Price benefit, so it is better to stress on quality rather than on decreasing
price to increase sales and profit . To increase market share Dabur should give
slight price benefit on Real brand so that customers of other Juice brand
should switch from other brand to Real brand .

As Homemade is a new product introduced by Dabur and as Dabur is getting

excise benefit from the Government so Dabur should pass slight Price benefit
to the target market so that target marget should use the homemade and adopt
it in making daily food thereby increasing the market share of Homemades.

97
 BIBLIOGRAPHY
TITLE SOURCE
The Juices to go places Business India

Boom in the times of Business World

Gloom

Fruit of the Loom Corporate Dossier,

The Economic Times

Body Coolants Pioneer

Fruits of Labour Financial Express

A Masti Swing The Economic Times

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