Marketing Strategy Of Dabur India Ltd

MARKETING STRATERY
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.
Marketing strategy consists of the analysis, strategy development, and implementation
activities in: Developing a vision about the market(s) of interest to the organization, selecting
market target strategies, setting objectives, and developing, implementing, and managing the
marketing program positioning strategies designed to meet the value requirements of the
customers in each market target.
Strategic marketing is a market-driven process of strategy development, taking into
account a constantly changing business environment and the need to deliver superior customer
value. The focus of strategic marketing is on organizational performance rather than a primary
concern about increasing sales. Marketing strategy seeks to deliver superior customer value by
combining the customer-influencing strategies of the business into a coordinated set of marketdriven actions. Strategic marketing links the organization with the environment and views
marketing as a responsibility of the entire business rather than a specialized function.
Because of marketings boundary orientation between the organization and its
customers, channel members, and competition, marketing processes are central to the business
strategy planning process. Strategic marketing provides the expertise for environmental
monitoring, for deciding what customer groups to serve, for guiding product specifications, and for
choosing which competitors to position against. Successfully integrating cross-functional
strategies is critical to providing superior customer value. Customer value requirements must be
transformed into product design and production guidelines. Success in achieving high-quality
goods and services require finding out which attributes of goods and service quality drive
customer value.

Marketing Strategy Process

The marketing strategy analysis, planning, implementation and management process is
described below. The strategic situation analysis considers market and competitor analysis,

market segmentation, and continuous learning about markets. Designing marketing strategy
examines customer targeting and positioning strategies, marketing relationship strategies and
planning for new products. Marketing program development consists of product, distribution,
price, and promotion strategies designed and implemented to meet the value requirements of
targeted buyers. Strategy implementation and management consider organizational design and
marketing strategy implementation and control.

Stage 1: Strategic Situation Analysis

Marketing management uses the information provided by the situation analysis to guide
the design of a new strategy or change an existing strategy. The situation analysis is conducted
on a regular basis after the strategy is under way to evaluate strategy performance and identify
needed strategy changes.
Market Vision, Structure, and Analysis
Markets need to be defined so that buyers and competition can be analyzed. For a
market to exist there must be (1) people with particular needs and wants and one or more
products that can satisfy buyers needs, and (2) buyers willing and able to purchase a product
that satisfies their needs and wants. A product-market consists of a specific product (or line of
related products) that can satisfy a set of needs and wants for the people (or organizations)
willing and able to purchase it. The term product is used to indicate either a physical good or an
intangible service.
Analyzing product-markets and forecasting how they will change in the future are vital to
business and marketing planning. Decisions to enter new product-markets, how to serve existing
product-markets, and when to exist in unattractive product-markets are critical strategic choices.
The objective is to identify and describe the buyers, understand their preferences for products,
estimate the size and rate of growth of the market, and find out what companies and products are
competing in the market.
Evaluation of competitors strategies, strengths, limitations and plans is also a key aspect
of the situation analysis. It is important to identify both existing and potential competitors.
Competitor analysis includes evaluating each key competitor. The analyses highlight the
competitions important strengths and weaknesses. A key issue is trying to figure out what each
competitor is likely to do in future.

Segmenting Markets
Market segmentation looks at the nature and extent of diversity of buyers needs and
wants in a market. It offers an opportunity for an organization to focus in business capabilities on
the requirements of one or more groups of buyers. The objective of segmentation is to examine
differences in needs and wants and to identify the segments (sub-groups) within the productmarket of interest. Each segment contains buyers with similar needs and wants for the product
category of interest to management. The segments are described using the various
characteristics of people, the reasons that they buy or use certain products, and their preferences
for certain brands of products. Likewise, segments of industrial product-markets may be formed
according to the type of industry, the uses for the product, frequency of product purchase, and
various other factors.
Continuous Learning about Markets
One of the major realities of achieving business success today is the necessity of
understanding markets and competition. Sensing what is happening and is likely to occur in the
future is complicated by competitive threats that may exist beyond traditional industry boundaries.
For example, CD-ROMs compete with books.

Stage 2: Designing Market-Driven Strategies

The strategic situation analysis phase of the marketing strategy process identifies market
opportunities, defines market segments, evaluates competition, and assesses the organizations
strengths and weaknesses. Market sensing information plays a key role in designing marketing
strategy, which includes market targeting and positioning strategies, building marketing
relationships, and developing and introducing new products.
Market Targeting and Strategic Positioning

Marketing advantage is influenced by several situational factors including industry

characteristics, type of firm (e.g., size), extent of differentiation in buyers needs, and the specific
competitive advantage(s) of the company designing the marketing strategy. The core issue is
deciding how, when, and where to compete, given a firms market and competitive environment.
The purpose of the marketing targeting strategy is to select the people (or organizations)
that management wishes to serve in the product-market. When buyers needs and wants vary,
the market target is usually one or more segments of the product-market. Once the segments are
identified and their relative importance to the firm determined, the targeting strategy is selected.
The objective is to find the best match between the value requirements of each segment and the
organizations distinctive capabilities. The targeting decision is the focal point of marketing
strategy since targeting guides the setting of objectives and developing a positioning strategy.
The options range from targeting most of the segments to targeting one or few segments in a
product-market. The targeting strategy may be influenced by the markets maturity , the diversity
of buyers needs and preferences, the firms size compared to competition, corporate resources
and priorities, and the volume of sales required to achieve favorable financial results. Deciding
the objectives for each market target spells out the results expected by management. Examples
of market target objectives are desired levels of sales, market share, customer retention, profit
contribution, and customer satisfaction. Marketing objectives may also be set for the entire
business unit and for specific marketing activities such as advertising.
The marketing program positioning strategy is the combination of product, value-chain,
price, and promotion strategies a firm uses to position itself against its key competitors in meeting
the needs and wants of the market target, the strategies and tactics used to gain a favorable
position are called the marketing mix or the marketing program.
Marketing Relationship Strategies
Marketing relationship partners may include end user customers, marketing channel
members, suppliers, competitor alliances, and internal teams. The driving force underlying these
relationships is that a company may enhance its ability to satisfy customers and cope with a
rapidly changing business environment through collaboration of the parties involved. Relationship
strategies gained new importance in the last decade as customers became more demanding and
competition became more intense. Building long-term relationships with customers and valuechain partners offers companies a way to provide superior customer value. Although building
collaborative relationships may not always be the best course of action, this avenue for gaining a
competitive edge is increasing in popularity.
Strategic partnering has become an important strategic initiative for many well known
companies and brands. Many firms outsource the manufacturing of their products. Examples
include Motorola cell phones, Calvin Klein jeans, Pepsi beverages, and Nike footwear. Strong

relationships with outsourcing partners are vital to the success of these powerful brands. The
trend of the 21st century is partnering rather than vertical integration.
Planning for New Products
New products are needed to replace old products because of declining sales and profits.
Strategies for developing and positioning new market entries involve all functions of the business.
Closely coordinated new-product planning is essential to satisfy customer requirements and
produce products with high quality at competitive prices. New-product decisions include finding
and evaluating ideas, selecting the most promising for development, designing the products,
developing marketing programs, use and market testing the products, and introducing them to the
market.
The new-product planning process starts by identifying gaps in customer satisfaction.
The differences between existing product attributes and those desired by customers offer
opportunities for new and improved products.

Stage 3: Market-Driven Program Development

Market targeting and positioning strategies for new and existing products guide the
choice of strategies for the marketing program components. Product, distribution, price, and
promotion strategies are combined to form the positioning strategy selected for each market
target.
The marketing program (mix) strategies implement the positioning strategy. The objective
is to achieve favorable positioning while allocating financial, human, and production resources to
markets, customers, and products as effectively and efficiently as possible.
Strategic Brand Management
Products (goods and services) often are the focal point of positioning strategy,
particularly when companies or business adopt organizational approaches emphasizing product
or brand management. Product strategy includes: (1) developing plans for new products, (2)
managing programs for successful products, and (3) deciding what to do about problem products
(e.g., reduce costs or improve the product). Strategic brand management consists of building
brand value (equity) and managing the organizations portfolio for overall performance.
Value-Chain, Price, and Promotion Strategies
One of the major issues in managing program is deciding how to integrate the
components of the mix. Product, distribution, price, and promotion strategies are shaped into a

coordinated plan of action. Each component helps to influence buyers in their positioning of
products. If the activities of these mix components are not coordinated, the actions may conflict
and resources may be wasted. For example, if the advertising messages for a companys brand
stress quality and performance, but salesperson emphasize low price, buyers will be confused
and brand damage may occur.
Market target buyers may be contacted on a direct basis using the firms sales force or by
direct marketing contact (e.g., Internet), or instead, through a value-added chain (distribution
channel) of marketing intermediaries (e.g., wholesalers, retailers, or dealers). Distribution
channels are often used in linking procedures with end user household and business markets.
Decisions that need to be made include the type of channel organization to use, the extent of
channel management performed by the firm, and the intensity of distribution appropriate for the
product or service. The choice of distribution channels influences buyers positioning of the brand.
Price also plays an important role in positioning a product or service. Customer reaction
to alternative prices, the cost of the product, the prices of the competition and various legal and
ethical factors establish the extent of flexibility management has in setting prices. Price strategy
involves choosing the role of price in the positioning strategy, including the desired positioning of
the product or brand as well as the margins necessary to satisfy and motivate distribution channel
participants. Price may be used as an active (visible) component of marketing strategy, or,
instead, marketing emphasis may be on other marketing mix components (e.g., product quality).
Advertising, sales promotion, the sales force, direct marketing, and public relations help
the organization to communicate with its customers, value-chain partners, the public, and other
target audiences. These activities make up the promotion strategy, which performs an essential
role in communicating the positioning strategy to buyers and other relevant influences. Promotion
informs, reminds, and persuades buyers and others who influence the purchasing process.

Stage 4: Implementing and Managing Market-Driven Strategy

Selecting customers to target and the positioning strategy for each target moves
marketing strategy development to the action stage. This stage considers designing the
marketing organization and implementing and managing the strategy.
Designing Effective Market-Driven Organizations
An effective organization design matches people and work responsibilities in a way that is
best for accomplishing the firms marketing strategy. Deciding how to assemble people into
organizational units and assign responsibility to the various mix components that make up the
marketing strategy are important influences on performance. Organizational structures and

processes must be matched to the business and marketing strategies that are developed and
implemented. Organizational design needs to be evaluated on a regular basis to assess its
adequacy and to identify necessary changes.
Strategy Implementation and Control
Marketing strategy implementation and control consist of: (1) preparing the marketing
plan and budget; (2) implementing the plan; and (3) using the plan in managing and controlling
the strategy on an ongoing basis. The marketing plan includes details concerning targeting,
positioning, and marketing mix activities. The plan spells out what is going to happen over the
planning period, who is responsible, how much it will cost, and the expected results (e.g., sales
forecasts).
The marketing plan includes action guidelines for the activities to be implemented, who
does what, the dates and location of implementation, and how implementation will be
accomplished. Several factors contribute to implementation effectiveness including the skills and
commitment of the people involved, organizational design, incentives, and the effectiveness of
communication within the organization and externally.
Marketing strategy is an ongoing process of making decisions, implementing them, and
tracking their effectiveness over time. In terms of its time requirements, strategic evaluation is far
more demanding than planning. Evaluation and control are concerned with tracking performance
and, when necessary, altering plans to keep performance on track. Evaluation also includes
looking for new opportunities and potential threats in the future. It is the concerning link in the
strategic marketing planning process. By serving as both the last stage and the first stage
(evaluation before taking action) in the planning process, strategic evaluation assures that
strategy is an ongoing activity.

CHAPTER .2

AIMS AND OBJECTIVES

Aims and Objectives:

To understand the demand pattern of Dabur products in the market.

To know the amount of household income spent on the consumption of FMCG products of
Dabur.
To understand the image of the products in the eyes of the consumers.
To analysis market petition strategy of Dabur in the market.
To study the present marketing strategy of Dabur India Limited.
To study the effectiveness of marketing strategy Of Dabur India Limited.
To know about the portfolio of Dabur India Limited.

CHAPTER .3

DABUR INDIA LTD.

INTRODUCTION TO DABUR
Dabur is derived from the word Da for Daktar or

Doctor and bur from Burman.

Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of about
US$750 Million (over Rs 3416 Crore) & Market Capitalization of over US$3.5 Billion (over Rs
16,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today
Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with
distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for
premium personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for
fairness bleaches and skin care products.
Dabur today operates in key consumer products categories like Hair Care, Oral Care,
Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.
Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are highly popular in the Middle
East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stand at
over Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.
The 125-year-old company, promoted by the Burman family, had started operations in
1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of
Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned
consumer goods companies with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a family-run business to become a
professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change
ahead of others and to always set new standards in corporate governance & innovation.

COMPANY PROFILE -

Type -

Public (NSE, BSE)

Founded 1884

Headquarters Ghaziabad

Key people V. C. Burman

Business Daburs product range encompasses health care, personal care, ayurvedic specialties
and food segments.

Brands Well-known brands include Amla, Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care
and Pudin Hara.
Location Dabur has been marketing its products in more than 50 countries all over the world. The
company has offices and representatives in Europe, America and Africa. Manufacturing facilities
are spread across three overseas locations.
Revenue
Turnover of approx Rs 3417,1 Crore (FY-2010) & Market Capitalization of Rs. 15500
Crore.

Official Website www.dabur.com

MISSION:
To maximize shareholders value, by offering superior quality nature based products, that
contributes in improving consumers life in Personal care, Health Care and foods.

VISION:
HEALTH AND WELL BEING OF EVERY HOUSEHOULD

Dabur is a company with a set of established business values, which direct it's
functioning as well as all its operations. The guiding forces for Dabur are the words of its founder,
Dr.S. K. Burman,
"What is that life worth that can not give comfort to others."
The Company offers its customers, the products to suit their needs and give them good
values for money. The company is committed to follow the ethical practices in doing business. At
Dabur, nature acts as not only the source of raw materials but also an inspiration and the
company is committed to product the ecological balance.

VISION 2011
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur
has launched another plan for 2011. The main objectives are:

Doubling of the sales figure from 2006

The new plan will focus on expansion, acquisition and innovation. Although Daburs
international business has done well growing by almost 29 per cent to Rs.292 crore in
2006-07, plans are to increase it by leaps and bounds.

Growth will be achieved through international business, homecare, healthcare and foods.

Southern markets will remain as a focus area to increase its revenue share to 15 per
cent.

With smoothly sailing through its previous plans, this vision seems possible. Time and again,
Dabur has made decisions that have led to its present position. However, if Dabur could be more
aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year
performance table from Daburs website.

PRINCIPLES
OWNERSHIP:
This is our company. We accept responsibility and accountability to meet business
needs.
PASSION FOR WINNING:
We all are leaders in our responsibility, with a deep commitment to deliver the results. We
are determined to be the best at doing what matters the most.
PEOPLE DEVELOPMENT:
People are our most important asset. We add value through result- driven training and we
encourage rewards and excellence.
CONSUMER FOCUS:
We have superior understanding of consumer needs and develop products to fulfill their
demands.
INNOVATION:
Continuous innovation in products and processes and is the base of our success.

Dabur over the Years:

More than a century ago, a young doctor started with a vision to Provide innovative and
affordable health care products to Indian masses. Thus, was born an organization today known
as Dabur India Limited. The twelve hundred crores corporate today started with a small
dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main source of inspiration
behind the project. From that humble beginning, the company has grown into Indias leading
manufacturer of consumer health care, personal care and food products. This phenomenal
progress has seen many milestones, some of which are mentioned below:

1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited. Started from a
small shop at Calcutta, he began a direct mailing system to send his medicines to even the
smallest of villages in Bengal. The brand name Dabur is derived from the words "DA" for
Daktar or doctor and "BUR" from Burman.
1896: As the demand for Dabur products grows, Dr. Burman felt the need for mass production for
some of his medicines. He set up a small manufacturing plant at Garhai near Calcutta.
Early 1900s: The next generations of Burmans take a conscious
decision to enter the Ayurvedic medicines market, as they believe that it is only through ayurveda
that the healthcare needs of poor Indians can be met.
1919: The search for processes to suit mass production of Ayurvedic medicines without
compromising on basic ayurvedic principles lead to the setting up of the first Research and
Development laboratory at Dabur. This initiate a pain staking study of ayurvedic medicines as
mentioned in age old scriptures, their manufacturing processes and how to utilize modern
equipment to manufacture these medicines without reducing the efficacy to manufacture these
medicines without reducing the efficacy of these drugs.
1920s: A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram.
Dabur expands its distribution network to Bihar and northeast.
1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.
1940: Dabur diversifiers into personal care products with the launch of its Dabur Amla Hair Oil.
This perfumed hair oil catches the imagination of the common man and film stars alike and
becomes the largest hair oil brand in India.
1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.

1956: Dabur buys its first computer. Accounts and stock keeping are one of the first operations to
be computerized.
1970: Dabur expands its personal care portfolio by adding oral care products. Dabur Lal Dant
Manjan is launched and captures the Indian rural market.
1972: Dabur shifts base to Delhi from Calcutta. Starts production
From a hired manufacturing facility at Faridabad.

1978: Dabur launches the Hajmola tablets. This is the first time that a classical Ayurvedic
medicine is branded from Shudhabardhak bati to Hajmola tablets.
1979: The Dabur Research Foundation (DRF), an independent
Company is set up to spearhead Dabur's multi-faceted research.
Commercial production starts at Sahibabad. This is one of the largest and most modern
production facilities for Ayurvedic medicines in India at this time.
1984: The Dabur brand turns 100 but is still young enough to
Experiment with new offerings in the market.
1986: Dabur becomes a public Limited company through reverse
merger with Vidogum Limited, and is re-christened Dabur India
Limited.
1989: Hajmola Candy is launched and captures the imagination of
Children and establishes a large market share.
1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing and marketing
confectionery items such as bubble gums in India.
1993: Dabur set up the oncology formulation plant at Baddi,
Himachal Pradesh.
1994: Dabur India Limited comes out with its first public issued at a premium of Rs.85 per share.
The issue is subscribed over 21 times.

1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Pacitaxel).
Dabur becomes only the second company in the world to launch this product. The Dabur
Research Foundation develops the unique eco-friendly process of extracting the drug from the
leaves of the Asian Yew Tree.
1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for
cheese other dairy products.
1996: Dabur launches Real fruit juices, which heralds the company's entry into the processed
food market.
1997: The foods division is created, compromising of real fruit juices and Homemade cooking
paste to form the core of this division's product portfolio.
1998: Project STARS (Strive to Achieve Record Successes) is Initiated by the company to
achieve accelerated growth in the coming years. The scope of this project is strategic, structural
and operational changes to enables efficiencies and improves growth rates.
1998: The Burman family hands over the reins of the company to a professional, Mr. Ninu
Khanna joins Dabur, as the Chief Executive Officer.
1999-2000: Dabur achieves the Rs.1000 crores turnover mark.
2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple active, orange
active, homemade pappad, Vatika- an- anti-dandruff shampoo.
2002: New launches homemade coconut milk (in south), Tang,
Tomato puree, Vatika light.
2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per cent. Turnover of
FMCG reaches to Rs l048.5 crores, which shows a profit of Rs. 72 crores. Turnover of
pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.
2005: Dabur Acquires Balsara in Rs -143 crore in all-cash deal.
Dabur Announces Bonus after 12years.
2007: Dabur Crosses $2 Bil of market capitalalization
2008: Acquires Fem care Pharma a leading player in the womens skin care market.

Dabur (Company History) -

Dr. S.K Burman started Dabur in 1884 as a small pharmacy. Initially, he prepared
Ayurvedic medicines to treat diseases like malaria, plague and cholera that had no cure during
that period. It was his dedication, commitment and empathy that made Dabur a renowned name
among the masses. And today, after more than 120 years, Dabur is known for its trustworthiness
more than anything else.
During this passage of time, Dabur went through several structural and strategic changes
to maintain its market strength. The real mass production started in 1896. Early 1900s saw
Dabur emerge as the first company to provide health care through scientifically tested methods. It
achieved significant improvements after setting up Research and Development centers and
manufacturing automation. The launch of Daburs Amla hair oil and Chyawanprash was a boon to
the expanding business. To keep up with the times, Dabur computerized its operations in 1957.
Its Dant Manjan and digestive tablets were widely accepted as well.
However with a large product portfolio in the market, Dabur had to maintain operational
efficiency. To make sure it adjusted to the business environment it became a public limited
company in 1986 followed by diversification in Spain in 1992. A major change came when Dabur
came up with its IPO in 1994. Because of its position, Daburs issue was 21 times
oversubscribed. Dabur further divided its business into three separate groups:

Health Care Products Division

Family Products Division

Dabur Ayurvedic Specialties Limited

In 1998, for the first time in the history of Dabur, a non-family member took charge. Dabur
handed over the operations to professionals. Successful implementation of procedures, timely
changes and maintaining its essence, Dabur achieved its highest-ever sales figure of Rs 1166.5
crore in 2000-01.
As FMCG sector was struggling with the slow growth in the Indian economy, Dabur decided
to take numerous strategic initiatives, reorganize operations and improvise on its brand
architecture beginning 2002. It decided to concentrate its marketing efforts on Dabur, Vatika,
Anmol, Real and Hajmola to strengthen their brand equity, create differentiation and emerge as a
pure FMCG player recognized as a herbal brand. This was chosen after a study with Accenture,
which revealed that Dabur was mainly perceived as a Herbal brand and connected more with the
age group above 35.
Also, larger retailers were making their foray into the FMCG market. Apart from HLL, P&G,
Marico and Himalya, ITC was also posing a challenge. The supply chain of Dabur was becoming
complex because of the large array of products. Southern markets share in the sales figure was
negligible. These factors posed a threat to Dabur and hence small changes were not enough.
MANAGEMENT & OWNERSHIP STRUCTURE
Board of Directors

Dabur has an illustrious Board of Directors who are committed to take the company onto
newer levels of human endeavour in the service of mankind. The Board comprises of:
Chairman
Dr. Anand Burman

Vice-Chairman
Mr. Amit Burman

Whole Time Directors

Mr. P.D. Narang, Mr. Sunil Duggal, Mr.Pradeep Burman
Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
Maharaja Gaj Singh Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan
The C.E.O
Sunil Duggal
(Chief Executive Officer)
Dabur India Limited

CHAPTER .4

SWOT ANALYSIS

STRENGTHS

Century Old Company

Established Brand
Ayurvedic/ herbal Product line
Leader in Herbal Digestives where the product has 90% of the market share
Core knowledge of Ayurveda as competitive advantage
Strong Brand Image
Strong Distribution Network
Extensive Supply Chain
R & D - a key Strength

WEAKNESS

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

Profitability is uneven across product line

Low Penetration (Chyawanprash)

Limited differentiation (Vatika)

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

OPPORTUNITIES

Extend Vatika brand to new categories like Skin Care and body wash segments

Market Development

Export Opportunities

Innovation

Increasing income level of the middle class

Creating additional consumption pattern

THREATS

Existing Competition like Himami, Baidyanth and Zandu for Dabur Chyawanprash and Marico,
Keo Karpin, HLL and Bajaj for Vatika Hair Oil)

New Entrants

Other fields of medicine- Allopathic and Homeopathic

CHAPTER .4

COMPETITORS

Given Below is a Segment Wise Competitor list:

Category of products

Daburs Share

Main Competitors

Fruit Juice

58% Real and Active

Tropicana.

Fruit Drinks (coolers)

1% Coolers

Frooti, Mazza, and Slice.

Hair oil Coconut Base

6.4% Vatika

HUL, Marico.

Shampoo Vatika

7.1%

HUL and P&G.

Hair Care (overall)

27%

HUL, P&G and Himalaya.

Chyawanprash

64%

Himami, Zandu and Himalaya.

Honey

40%

Himami,
players.

Hamdard

and

local

Digestive

37%

Paras and local players.

CHAPTER .6

PRODUCTS

LOCATIONS OF OPERATIONS
ALL UNITS OF PRODUCTION
ALL JOINT VENTURE PRODUCTS
SUBSIDIARIES
ALL DABUR PRODUCTS

LOCATION OF OPERATIONS

Head office:

Sahibabad, Ghaziabad (U.P.)

Regd. Office:

Asaf Ali Road, New Delhi

Corporate office:

Kaushambi, Ghaziabad (U.P.)

Sales & Marketing:

New Delhi

OFFICES:

Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahmadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hyderabad (A.P.),
Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam), Kathmandu
(Nepal), Russia, U.K.

FACTORY:

Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani & Narendrapur
(West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.

C&Fa:

Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun
(U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta(West Bengal), Jaipur
(Rajasthan), Ahmadabad (Gujarat), lndore (M.P.) Raipur(M.P.), Bhubaneswar (Orissa), Cuttak
(Orissa), Mumbai (Maharashtra), Hyderabad (A.P.), Chennai (TamilNadu), Bangalore
(Karnataka), Cochin (Kerela).

MANUACTURING UNITS OF DABUR:

Dabur India Limited has 12 manufacturing plants in India,

Nepal and Egypt.

Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The Key product line of this
unit includes Asavs, Hajmola, Hingoli, Oncology medicines, Dabur Amla hair oil, Chyawanprash
and Ashokarisht. The unit operated on these shifts as well as a general shift, with product lines
running for one, two or three shifts according to the market demand and supply chain
requirell1ents.

Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet
Bottles.

Baddi unit 1: The most modern plant for manufacturing ayurvedic

Medicines and honey, this unit was built following stringent guideline for pharmaceutical units.

Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur Chyawanprash, this unit
also boasts of the most modern processing and packaging unit for the medicated oil
Asavrishthas.

Baddi Injectibles: This unit manufactures Oncologicals, and is certified by OGYI of Hungary and
South Africa.

Alwar: This unit manufactures food and print grade Natural gums,
Psyllium Husk and Ayurvedic Veterinary products.

Narendrapur: One of Dabur oldest plant. It produces Ayurvedic

medicines and Honey.

Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture oncology bulk
drugs of critical importance.

Katni: Set up in the heart of Amla producing belt of India. This unit
manufactures Amla pishi, an essential ingredient in Dabur Chyawanprash.

Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important besides
Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic Medicines, Oral
Care and Hair Care Products, Honey and Fruit Juices. It also has the facility to process leaves of
the Asian Yew Tree to extract Paclitaxel, an important part of all anti-cancer products.

Egypt: This part was established to serve Saudi Arabia and the fast growing African market. It
manufactures Hair and Skin Care and Food products.

JOINT VENTURES:

Dabur International Limited: Dabur has also collaborated with Bongrain of France for the
manufacture and marketing of speciality cheese and other Dairy Products. This joint venture
company has already made its presence felt in the Indian cheese market through the launch of
processed cheese under the brand name Lebon, and a specialty cheese under the brand name
Delicieux.

SUBSIDIARIES:

Dabur has six subsidiary units, which come under the umbrella of the Dabur India Organisation.
These are:

Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India Limited, is
spearheading Dabur's foray into food processing industry. The company, set up in April 1999,is
marketing a range of fruits juices under the brand name Real, Homemade Cooking Paste and
Sauces and Lemoneez -- lemon juice. Dabur was the first company in India to introduce fruit
juices in packaged form without any artificial additive. Real is today the market leader in this
category with more than 50 per cent market share. Homemade cooking paste is the only national
brand in this category. Lemoneez is the only product in its category available in unique drop and
trickle pack and uniquely shaped tabletop pack.

Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for Dabur
group. The company is today the leading exporter of Nepal and the third largest and most modern
manufacturing base for Dabur. Dabur Nepal is today involved in promoting cultivation of herbs
and apiculture activities inNepal. The Company has set up state of the art greenhouse at Banepa
for developing sampling for 20 medicinal plants. Dabur Nepal has also set up an Apiculture center
for promoting bee-keeping activity in Nepal and developing queen bee colonies for exports.

Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base set up a
couple of years back to cater to the demands of Middle East and African market is producing Hair
Care, Skin Care Products and foods.

Dabur oncology Place: Set up recently in UK, this subsidiary of Dabur India Limited will be
manufacturing anti-cancer formulations for European market. The company is in the process of
setting up manufacturing base near London and is expected to start operation from year 2001.

Dabur Research Foundation (DRF): Incorporated in 1979, is a

Premier research organisation recognized by Department of Scientific and Industrial Research,
Government of India. It is situated at Sahibabad, Ghaziabad, Uttar Pradesh. DRF today is known
for its path breaking research in the field of health care and personal care. The foundation is on
the forefront of oncology research and is in the process of developing many new molecules to
fight with a dreaded disease like Cancer. In fact DRF was the first organisation in the world to
develop a process for extraction of Paclitaxel, a drug, for cancer without harming its source tree.
This process has now become a universal one. Herbal health care is an area where Dabur
Research Foundation has made immense contribution by doing research and development work
using modern pharmaceutical protocols.

PRODUCTS
Given below is the product portfolio of Dabur (Consumer Care Division 2010):

HAIR CARE
Hair oil
Dabur Amla,
Dabur Amla Flower magic,
Dabur Vatika coconut,
Vatika Almond.
Dabur Anmol

Shampoo
Smooth & Silky,
Root Strengthening and Black Shine shampoo,
Vatika Dandruff Control,
Dabur Total Protect.

Conditioner
Vatika Smooth & Silky Conditioner,
Vatika Root Strengthening Conditioner

ORAL CARE

Dabur RED Paste,

Meswak,
Promise,
Babool Mint Fresh,
Babool
Dabur Lal Dant Manjan
HEALTH SUPPLEMENTS
Dabur Chyawanprash
Dabur ChyawanPrakash -Orange an Mango flavors available
Dabur Chyawan Junior. (Chocolate-flavored)
Dabur Honey, the purest branded Honey.
Dabur Glucose

DIGESTIVE
Hajmola
(Keep your digestion toned up with Dabur's range of Digestives tablets and
candies.)

 SKIN CARE
Gulabari

Gulabari Rose water

Gulabari Face Freshener
Gulabari Moisturising Cream
Gulabari Moisturising Lotion

Uveda Range

Fairness Cream

Moisturising Face wash

Clarifying Face wash

2 in 1 Moisturiser

FEM

Fem Pink Bleach

Fem Blue Bleach
Fem Gold Bleach
Fem Herbal Bleach

OXY Bleach
SAKA Bleach for men
Fem Hair Removing Cream
Fem Liquid Hand Wash
FOOD PRODUCTS

Real Active Juice

Real Juice (12 delicious variant)
Real Burrst
Hommade
Lemoneez
Capsico Red Pepper Sauce

 HOME CARE

Surface Cleaner

Dazzil

SaniFresh
Odomos (Mosquito Repellent)

Odomos Cream

Odomos Lotion
Air Care

Odonil Room Freshener

Odonil Block

 Dish wash

Odopic Dish wash

Odopic Dish washing powder

Consumer Health - Ethical

Stresscom

Antistress immune modulator

Trifgol
Isabgol based natural fibre laxative.

Broncorid
Madhuvaani

For the management of stable asthma and breathlessness.

Lipistat
Hypolipidaemic and Cardioprotective.

Rheumatil gel
Rheumatil oil
Quickly absorbed and relieves joint pain

Mensta
Complete Control 30 days a month.

 CONSUMER HEALTH - OTC

Gastro-Intestinal

Dabur Pudin Hara

Cough & Cold

Dabur's Honitus Cough Syrup

Rejuvenation

Shilajit Gold

 Womens Health

Dabur Active Blood Purifier

Memory Enchancer

Dabur Shankha Pushpi

Medicated Oils

Dabur Badam Oil

Baby Care

Dabur Lal Tail

Dabur Janma Ghunti

Dabur Gripe Water

 Rubs & Balms

Dabur Balm Strong

Dabur Balm Double Action

CHAPTER .7

PRICE

PRICE
Price is normally expressed in monetary terms. It is worth of a product or service in monetary
terms. Price is the value which a buyer passes on to the seller in lieu of the product or service
provided. Price is a crucial determinant of the fact whether the exchange between the buyer and
seller should materialize or not. While pricing the products three main factors should be kept in
mind -:

1. Cost
2. Competition
3. consumer demand

Pricing Strategies of Dabur

Dabur has stepped up the pace of new product launches and is investing ad spend and
marketing. The entire product portfolio is also tweaked to include premium offerings such as more
variants under almost every category, like Dabur Vatika Hair Oil is available in 3 different
versions.
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented
company. Across the whole organization the company have one definition of winning, and that
means not just growing, but growing completely. Over the last two years, Dabur has maintained
its operating margins through judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below -:
I.COST
One of the most important factor to take care while pricing is the cost costs set the floor for pricing
decisions. There are two types of cost variable cost and fixed cost. It is important that the price
should recover all costs including a fair return for undertaking the marketing effort and risk.
II.COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors
selling the same or similar products, the pricing freedom is considerably reduced. Its price must
fall in line with the competitors. Similarly Dabur India Limited also has many competitors. But
Daburs top selected competitors are:-

1.
2.
3.
4.
5.
6.

Hindustan Unilever Limited

Proctor and Gamble
Pepsi co.
Colgate Palmolive
Godrej Industries
Marico Ltd. etc.

III.CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the Indianised natural
and herbal products thus they made it their USP. Dabur is efficiently leading the market with this
product range, providing the customers with special products easily.

CHAPTER .8

PLACE AND PROMOTION

PLACE:

Place in the context of marketing mix refers to a set of decisions that need to be taken in
order to make the products available to the customers for purchase and consumption. Making the
products available to the customers require development of channels of distribution and physical
distribution of products.
CHANNELS OF DISTRIBUTION
A channel of distribution refers to the path taken by the goods in their movement to the
customers. For instance, the toothpaste we use is manufactured in the factory of a company
Dabur. But before it reaches us it passes through the hands of many middlemen who help it come
to you in right time, at right place and in right quantity.
Daburs distribution network is recognized as one of its key strengths. Its focus is not only
to enable easy access to our brands, but also to touch consumers with a three-way convergence
- of product availability, brand communication, and higher levels of brand experience.
A Diagram explaining the channels of Distribution is given below
The diagram shows channel of distribution of dabur foods, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing And
Forwarding Agents(C&FA) and from here the goods are then further supplied to number of
Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty
of Stockiest to take orders from retailers and then supply the goods to them, this work is generally
done by stockiest salesman through ready stock or by taking orders first and then placing the
order. From here the goods finally reaches to Customers. Customer purchases the product from
retailers.

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A

Retailers

Stockist B

Stockist C

Retailers Retailers Retailers Retailers Retailers

C O N S U M E R S

Supply Chain Management

Supply chain management starts before physical distribution: it involves procuring the
right inputs (raw materials, components and capital equipment), converting them into finished
products and dispatching them to the final destinations. The supply chain perspective can help
identify superior suppliers and distributors and help them improve productivity, which ultimately
brings down the companys costs.
A broader view sees a company at the center of a value network that includes its
suppliers, its immediate customers and their end customers. The value network includes valued
relations with others such as university researchers, government approval agencies and so on.
MANUFACTURING PLANT
Dabur Foods has Number of products in its product line but its main area of interest or
the product on which they concentrate the most is Real Juice & Coolers.
Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured
and tested.
PROCUREMENT & TRANSPORT

Getting the raw material and packaging material requirement from the production unit in
charge
Constant updates on the procurement of materials and transport details
Production details and ingredient content information from the different personnel and
coordinating this activity

PACKAGING

Approval and coordination of the supply of packaging material to the production unit

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and forwarding
agents.
Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so
company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.
They charge Dabur for stocking the good and even Dabur dont mind doing so as it is a
measure of cost cutting as well as there is no need for gowdowns and maintenance.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to them as per
their order.
Stockiest has some sales men working under him, they are known as stockiest sales
man. Their work is to place the products in the market and take order from retailers and
then supply goods to them.

Sales man either take ready stock with them or they first take orders and then supply
goods later on.
There is a beat which is a schedule route of sales man, means sales man has to daily
cover the route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners, and seeing
that goods are properly placed in the retail outlets is also the duty of stockiest sales man.
Companies sales officer keeps a check on the stockiest and monthly report is also
prepared which is further analyzed by SM & ZSM.

RETAILERS

Retailers are backbone of the company as they are the one who can take the product on
new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the brand
special displays (using merchandising tools) to get affective brand presence, and
arranging it in more noticeable manner.
Margin of retailers is always higher than stockiest.
Retailers are the ones who have direct contact with the customers.
Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail
outlets making its product available to the consumers across the country at ease.

PROMOTION
Once the product has been manufactured, priced rightly and is distributed, the next task
of the marketer is to inform potential customer about the product and persuade them to buy
the same. The promotion element of marketing mix is concerned with activities that are
undertaken to communicate with both customers and participants in the channel of
distribution such that sales goals are realized. There are different promotional activities like-:
Advertising, Sales promotion, trade promotion, personal selling etc. but one of the most
convenient and effective one that most of the industries uses is the Advertising and Sales
Promotion.
Advertising
Advertising is a form of communication that typically attempts to persuade potential
customers to purchase or to consume more of a particular brand of product or service. Many
advertisements are designed to generate increased consumption of those products and
services through the creation and reinforcement of "brand image" and "brand loyalty". For
these purposes, advertisements sometimes embed their persuasive message with factual
information. Every major medium is used to deliver these messages, including television,
radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising
is often placed by an advertising agency on behalf of a company or other organization.
Dabur has created the huge brand image and a vast product following by associating
mega-names like Amitabh Bachchan, Rani Mukhurjee, Vivek Oberoi, Mandira Bedi etc.
Dabur invested Rs. 150 crore just on the advertising of Real Fruit Juice and Real Active.

So far the company has been successful in this mission as the people now know the brand
and ask for its products by name.
Sales promotion
An activity designed to boost the sales of a product or service. It may include an
advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or
trading stamps, arranging demonstrations or exhibitions, setting up competitions with
attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal
letters on other methods.
In marketing, sales promotion is one of the four aspects of promotion. (The other three
parts of the promotional mix are advertising, personal selling, and publicity/public relations.)
Sales promotions are non-personal promotional efforts that are designed to have an
immediate impact on sales.
Sales promotion involves short-term incentives to encourage buyers to purchase a
product. It's aim is to encourage immediate purchase of a product. If used too often however,
sales promotion can create a situation where consumers will not buy unless there is a bonus
offer. This will result in loss of profit for the company.
More than any other element of the promotional mix, sales promotion is about action. It
is about stimulating customers to buy a product. It is not designed to be informative a role
which advertising is much better suited to.
Sales promotion can be directed at:The ultimate consumer (a pull strategy encouraging purchase)
The distribution channel (a push strategy encouraging the channels to stock the product).
This is usually known as selling into the trade

SALES PROMOTIONAL TOOLS OF DABUR FOODS

Price promotions
Coupons
Gift with purchase
Competitions and prizes
Money refunds
Point-of-sale displays
Free samples
Contest /demos
Festival Sales

Retailer coupons
Multi-packs
Special price for twos
Allowances for additional shelf space
Merchandising
Sales contest
Incentives
Awards & prizes
Premium gifts
Sales Meetings
Samples/product sampling
Contests & Sweepstakes
Exchange Offers/buyback
Refund / Rebate
Price / Bonus Packs

PROMOTIONAL SCHEMES USED FOR STOCKIESTS

Encourage stockiest to participate in displays and sales contests.
Higher Margins: Tries to give higher margins to stockiest so that they dont loose interest in the
product and can earn good profits after meeting all the expenses.
Sales Contests: Sales contest are held annually and whichever stockiest has the best sales
record a prize is given to him, like free holiday to the family etc.
Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.
Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some
money on the promotional schemes, like conducting a sampling activity.
Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.
Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by
the company for stockiest sales man so that they dont face any problem while placing their
products and taking orders from retailers.
Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.
Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once
a year.

 Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and
their sales man.
Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
Free danglers and posters for publicity.
Buyback: Dabur foods have a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS

Trade allowances: Short term incentives are offered to induce a retailer to stock up more
dabur products.
Dealer loader: An incentive given to induce a retailer to purchase and display the
products of dabur.
Trade contest: A contest to reward retailers those sells the most product of dabur foods
and after a specific period they are rewarded.
Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales,
like danglers, posters, banners etc helps in promoting sales.
Push money: Also known as "spiffs". An extra commission paid to retail employees to
push products. This kind of practice dabur hardly follows.
Free samples: Dabur foods gives free samples are given to retailers so that they can try
that product if the product is new, or gives some discounts.
Demos: Special demos are given to retailers and even some stands, fridge are given by
retailers.
Discount Sales: Some special discounts are given to retailers from time to time, like 1%
cash discounts if payment is made in cash.
Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer
buys and sells a specific amount of products.
Higher Margins: Retailer has the highest margins and dabur foods also have the same
criteria, and retailer can further sell the dabur product to consumer at discount keeping
his margin safe.
Allowances for additional shelf space: Company as such does not pay anything to retailer
but gives some additional benefits for giving them shelf space which is visible to
customer when ever they enter the shop.
Merchandising Allowances: Allowances are given to Stockiest sales man for
merchandising dabur products. When ever the Stockiest sales man goes to take orders
then he also merchandises dabur products.
Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free
with that.
Trade Allowance: Dabur comes with different types of trade discounts from time to time,
like sometime price discounts, sometimes gifts etc.
Free goods: Dabur gives free goods on the purchase of specific number of goods.

Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in
cash at the time of purchase.
Product sampling: Dabur organizes sampling activities for its products which are new,
these activities are generally at the place where footfall is very high.
Displays: Dabur tries to give special displays to the retailers, so that they can display their
products on that.
Point-of-Purchase Material: POP material is available in the form of stickers, banners,
displays, posters, signs, streamers, etc. put up inside and outside the stores & other
possible purchase locations.

PROMOTIONAL SCHEMES USED FOR CONSUMERS

Price deal: A temporary reduction in the price is given to consumer during some festival session
by dabur foods.
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for
the same price (for example, 25 percent extra).
Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.
Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
On-shelf coupons: Coupons are present at the shelf where the product is available.
Rebates: Consumers are offered money back, rebate at different point of time.
Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling
activities then they are given a discount coupon of products of dabur foods.
Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur
keeps a special check on the displays and merchandising of dabur products.

Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
Money Refunds: Customer can claim for refund of money if they face some problem with the
product
Contest /demos: There are different contests where customers play games and win contests.
Festival Sales: Dabur foods come out with some special offers during festival seasons like buy
one get one free.
Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.
Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier
for customers to know about product line and choose the best out of that.
Customer feedback: dabur foods consider its customer most important and in case of any
complaint by customer the foods department will leave all its important work and will contact
the customer.

 Contact points: Customer can contact dabur foods by writing the mail or letter on the addresses
given at the back of dabur products, or even they can call and visit the dabur web site.
THE PATH AHEAD:
Dabur intends to significantly accelerate profitable growth. To do this, Dabur will:

Focus on growing their core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of their target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science.
Provide the consumers with innovative products within easy reach.
Build a platform to enable Dabur to become a global ayurvedic leader.
Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel.
Be responsible citizens with a commitment to environmental protection.
Provide superior returns, relative to their peer group, to the shareholders.

CHAPTER .10

RECENT INITIATIVES

Recent Initiatives:
Following its plans, Dabur made significant changes in the time period 2002-2007.
Brand Rejuvenation
With youth forming a major population of India, Dabur decided to revamp its brand
identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and
Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of
Chyawanprash grow by 8.5 per cent in 2003-04.
The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was
replaced with a new, fresh Banyan tree.
The logo was changed to a tree with a younger look. The leaves suggesting growth,
energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness, the
trunk represented three people raising their hands in joy, the broad trunk symbolized stability,
multiple branches were chosen to convey growth, and warmth and energy were displayed
through the soft orange color. Celebrating Life was chosen as a new tag that completely
summarized the whole essence.
The Chairman in his annual report message said, If I were to summarize your
Companys performance during the year under review (2004-2005), it would be Pursuit of
Profitable Growth.
HR Initiaves
The culture at Dabur gives full autonomy to its employees. Various training and
development programs like Young Manager Development Program, Prayas, Leading and
Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to
performance evaluation, helps employees realize their potential.
Recently, Dabur has adopted an innovative HR program of offering ESOPs to new
engineering and management trainees at the time of joining. Also in 2005, Dabur gave Bonus to
its employees after 12 years. This boosted the employee morale further.
Dabur was listed as a Great Place to Work, in a survey conducted by Grow Talent &
Company and Great Place to Work Institute, USA. Dabur was listed as the 10th Great Place to
Work. The results were published in Business World dated February 2006.

DABURS SOCIAL INITIATIVES

Sustainable Development Society (Sundesh)
Sundesh is a non profit organization engaged in carrying out welfare activities with the
aim of improving the quality of life of the people in rural areas. Mr. Pradip Burman is the Founder
Chairman. Sundesh is majorly involved in Health Care, Education and other socio economic
activities.
Sundesh started with Health Care and today its activities have diversified into various
other projects like education, veterinary services and income generation activities. These projects
were implemented after the need assessment survey of the rural community. The enthusiastic
volunteers support the society in implementing various projects in the rural areas through their
consistent efforts. Sundesh is executing various integrated rural development projects in the
villages of Ghaziabad and Gautam Budh Nagar Districts (Uttar Pradesh) in India.
SUNDESH is associated with the following activities

Education
Health Care
Self Help Groups (Micro Credit Society)
Income Generation
Veterinary Services

IT initiatives
Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It
also implemented a country wide new WAN Infrastructure for running centralized ERP system.
Further it set up new Data Center at KCO Head Office.
Supply chain Initiatives
Dabur has undertaken e-procurement in a big way. Dabur India procured Rs.210 crore of
raw materials through e-sourcing or almost 50 per cent of total raw material expenditure
and, in the process, considerably controlled raw material costs which were on a rise.
For better production and operation management, Dabur included automation,
debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax
holidays to reduce cost and improve efficiency.
Other important changes
Dabur made its largest acquisition by taking over Balsara hygiene and home products
business. Dabur bought the entire promoters stake of three Balsara companies through an allcash deal of Rs.140 crore. This was done to ensure Daburs presence in all price segments in the
herbal oral care market. Moreover, it allowed Daburs entry in the household care segment,
where Balsara has well-established brands.

Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player
Dabur estimated that the southern region was contributing as low as 7% to its overall
growth. For this purpose, the south team adopted a three-phase approach. First, it focused on
point of sale promotions and stocking practices. Second phase included better marketing efforts
in terms of advertising and packaging. Finally, it envisioned customized product launches for the
Southern states. The completion of first two phases by 2005-06 resulted in increasing contribution
to 10%.

CHAPTER .11

AWARDS AND ACHIEVEMENTS

Awards and Achievements-

1. Dabur ranked 182 in the ET-500 list Of India Inc's Heroes

2. Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods space in India

3. Dabur ranked among Top 10 Best Companies to Work For in the Consumer Goods and Durables
sector

4. Dabur ranked 45 among Most Trusted Brands In India, according to Brand Trust Report, India
Study, 2011

5. The Burman family, promoters of Dabur, ranked 20th in Forbes' 'The 100 Richest Indians' list

6. Dabur listed among the enterprises that are

'Doing India Proud' in Limca Book of Records
2010

7. Dabur ranked 200 in the Fortune India 500 list

That ranks India's 500 largest corporations

8. Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company

9.

Dabur Chyawanprash Immune India Campaign and Dabur Glucose-D Ace of Pace
bag international Promotion Marketing Award of Asia 2010

CHAPTER .12

RECOMMENDATION AND CONCLUSION

Recommendations:

Focus on growing core brands across categories.

Reaching out to new geographies areas.

Improve operational efficiencies by leveraging technology.

Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge
of ayurveda and herbs with modern science.

Provide consumers with innovative products within easy reach.

Vatika hair care centre: On the lines of Maricos Kaya Skin Clinic, Dabur could start a
venture called Vatika hair care centre which would provide total hair care solutions. It could
have hair care experts to solve hair problems.Services could include dandruff treatment,
straightening of hair, treatment for split ends,etc.

Position Dabur Chyawanprash as not more of a medicine but as something which is

necessary for health.

More initiatives like Dabur ki Deewar to increase brand visibility. It is an initiative to occupy
shelf space.

Conclusion:

It was really a very great experience to study this FMCG Company Dabur India Limited. After
going into all its aspects i.e. its marketing strategies, policies, pricing strategies etc. we can
conclude that the company is excellent on all the fronts. The companys different projects like
Sundesh and its social initiatives in Nepal etc. indicates that the company is also loyal towards
the society, and all such social responsibilities are very necessary to build a strong customer
base and brand loyalty
Through its comprehensive range of products it touches the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped them develop a bond of trust
with our consumers. That guarantees us the best in all products carrying the Dabur name. Dabur
has Strong distribution network. Dabur is the Fourth largest FMCG Company of India. Dabur is
one of the most trusted brand.

Strategic Intent
We intend to significantly accelerate profitable growth. To do this, we will:

Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology
Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science
Provide our consumers with innovative products within easy reach
Build a platform to enable Dabur to become a global ayurvedic leader
Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel
Be responsible citizens with a commitment to environmental protection
Provide superior returns, relative to our peer group, to our shareholders

Executive Summary

This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd
(DIL) for the brands Dabur. Pioneering role that it has played in the evolution of the categories it
has had a presence in. Dabur Chyawanprash is the leader in the Chyawanprash category and
enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded
Chyawanprash and since has invested heavily in product development, clinical studies and
consumer awareness. The product is essentially a health supplement.
This report is not aiming at the overall marketing mix or the marketing strategy of Dabur
India Ltd, but is an attempt to analyse the marketing mix of Dabur Chyawanprash.
The report also enlists various recommendations based on BCG Growth Share Matrix
analysis, Ansoffs Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been

done on the basis of the information gathered from the company website and other online
resources and books and articles.

Posted 11th June 2012 by mukesh bisht

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