TABLE OF CONTENTS

1.EXECUTIVE SUMMARY 2.INTRODUCTION

7 9 10 11 39 41

COMPANY PROFILE PRODUCT PROFILE

3.OBJECTIVE 4.RESEARCH METHODOLOGY MARKETING RESEARCH SAMPLING

5.ANALYSIS 8.RECOMMENDATIONS 9. CONCLUSION 10.APPENDICES 11. BIBLIOGRAPHY

45 67 69 72 83

COMPANY OVERVIEW

Over its 120 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among Indias top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask What does Dabur stand forshampoo or digestive tablets? The answer is fairly simple, it stands for Indias fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.

COMPANY HISTORY

1884 1896 Early 1900s 1919 1920 1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000

Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 septante divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs.1,000 crores

PRODUCT LINE
Foods Real Real Activ Hommade Lemoneez Capsico

Health Care Baby Care Dabur Lal Tail Dabur Baby Olive Oil Dabur Janma Ghunti

Health Supplements Dabur Chyawanprash Dabur Glucose D

Digestives Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola

Hajmola Candy Fun2 Hajmola Candy

Pudin Hara (Liquid and Pearls) Pudin Hara G Dabur Hingoli

Natural Cures Shilajit Gold Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Backaid Shankha Pushpi Dabur Balm Sarbyna Strong

Personal Care Hair Care Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla

Anmol Silky Black Shampoo VatikaHennaConditioning Shampoo Vatika AntiDandruff Shampoo Anmol Natural Shine Shampoo

Oral Care Toothbrush Dabur Red Gel Dabur Red Toothpaste Babool Toothpaste Dabur Lal Dant Manjan DaburBinaca

Skin Care Gulabari Vatika Fairness Face Pack

Ayurvedic Specialities Ayurveda Ayurveda Vikas

Rural and urban potential Rural-urban profile OVERVIEW OF FMCG SECTOR IN INDIA
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 14.6 billion in 2008 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households are expected to rise from 145 million in 2007-08 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG

market was estimated at around US$ 14.5 billion in 2007-08. With growing incomes at both the rural and the urban level, the market potential is expected to expand further.

Urban Population 2007-08 (mn household) Population 2009-10 (mn household) % Distribution (2007-08) Market (Towns/Villages) Universe of Outlets (mn) Source: Statistical Outline of India (2008-09), NCAER 53 69 28 3,768 1

Rural 145 153 72 627,000 3.3

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.

OVERVIEW OF VATIKA: The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the companys highest selling brands. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2003, brand sales crossed Rs. 1,000 million. From the companys perspective, Vatika is expected to continue to drive its growth in the years to come. With its innovative offerings, the brand aims to become a frontrunner in the market for hair care and skin care products. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. Currently, the total annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the coconut hair oil category (Source: ACNielsen ORG-MARG, 2007). Vatika has not just been successful in garnering a premium image but, today, stands as the preferred and trusted brand of 11.1 million users (Source: IRS Household Data).

SEGMENTATION Vatika Hair Oil was launched at an almost 100% premium to the market leader. This meant that the segment of the market that dabur wanted to cater to was the premium segment which valued nourishment of the hair above the price and it tried to attend to that segment which was not price sensitive. TArgeting This was in line with its proposition and overall brand strategy of a premium up-market product targeted for individual needs as opposed to the collectivist culture of the category. It targeted the high-income urban category of hair oil users. Since the product was expensive it could mainly cater to the urban market as opposed to the rural market where consumers are highly price sensitive.

Being positioned as having amla, henna and lemon extracts, the product was targeted towards the young, contemporary, educated, multi-faceted, achievement-driven and confident women who were positioned as the Vatika Woman. POSITIONING Total hair Care brand: The product innovation was fed by the vital consumer insight that many women in contemporary India are worried about hair problems caused by urban pollution, frequent change of diet due to geographical mobility and other factors. Beset by modern-day hair problems, they are far more inclined to rely on homegrown remedies. By offering hair oil that combined the benefits of natural products in a single pack, Vatika created a niche for itself as the total hair care brand.

Natural offering: Vatika is a brand that espouses traditional wisdom about health in a modern format. It believes that nature has perennial answers to day-to-day health issues, particularly when it comes to hair care and skin care. In a world where modern living causes untold stress the Vatika brand holds out the promise of providing natural ingredients that rejuvenate and safeguard the human body in an extraordinary way. This concept is put to work through contemporary, modern products, offered by Vatika. The Vatika woman: The Vatika woman is young, contemporary, educated, multi-faceted, achievementdriven and confident. It is in the Vatika brand that she sees a true reflection of her own personal ideals. Through creation of the concept of Vatika woman, it has tried to carve out a new positioning in the minds of the new age woman.

MARKETING MIX OF VATIKA HAIR OIL Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil.

The mix shall be analyzed as followed: Product Price Place Promotion Price List Price Discount Financing Schemes Credit Terms Promotion Advertising Promotion Public Relations Sponsorships Internet Marketing Place & Channels Location Inventory

Product Product Variety Quality Design Features Brand Names Services

PRODUCT:

Brand Name: Vatika in Hindi means garden. The brand attempts to live up to the promises beauty and nature that are associated with its very name. Starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product offerings, the mother brand being Vatika Hair Oil. Innovative product offering:. Vatika Hair Oil is coconut hair oil with special ingredients adding value to the product. While coconut oil has been regularly used by Indian women as a basic hair nutrient, a combination of herbs and natural products such as henna, amla and lemon have been used for special hair needs. Coconut hair oil provides nourishment to the hair, while henna along with other herbs coat the hair and protect it from oxidation, thereby maintaining its natural colour. Amla strengthens hair roots and helps maintain their natural health and thickness. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. Apart from henna, amla and lemon, it also contains other natural ingredients like brahmi, neem, bahera, kapurkachari, harar, and ugdha and sugandhit dravyas. Packaging: The qualities of Vatika products, ascribed to the brand by hundreds of thousands of satisfied consumers, have been further underlined by its attractive packaging. In a category dominated by blue packs as analogous of pure coconut oils, Vatika broke the norm with its white and green bottle with a mushroom cap. The greenand-white colors, used in its packaging, reflect the brands natural ancestry and give it a premium look. These also help Vatika stand out in the cluttered environment of Indian retail.

Available in: Bottles 75 ml, 150 ml, 300 ml

Flip cans

150 ml, 300 ml

Flip cans were introduced for the winter season. Quality: Vatika products contain natural ingredients that have been blended together through scientific processes at Daburs in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards. PRICE/QUALITY MATRIX

Price Quality Luxury High Segment VATIKA Overpriced Middle Average Real Bargain Ideal Penetration For Premiere Offering High Middle Low

Make The Sale Low and Run

Unhappy Customers

Cheap Goods

PLACE Vatika products including Vatika Hair Oil are sold in 38 countries through more than 15 lakh retail outlets and 5,000 distributors who service the entire country through a wide marketing network.

Daburs distribution network extends beyond India in the following countries as well: Distribution Network Central, North & South America Australia Asia

Middle East North & South Africa East & West Europe

PROMOTION:

Vatika the key focus brand of the company has always been well supported. The company realized early that, from the perspective of brand building, it was vital to invest in this brand. Vatika Hair Oils first promotion: It focused on the key benefit beautiful hair without hair problems that came about as a result of the extra nourishment through the value addition of henna, amla and lemon-derived additives. Creating conceptual awareness: In the initial phase of the communication, the marketing objective was to create conceptual awareness about the new product the goodness of coconut oil enriched with natural herbs. Vatika was firmly established as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika. In 1997, the company created a new promotion campaign, which reinforced the obvious fact that most coconut oil brands were, not equipped to combat the effects of pollution, hard water and chemicals the major causes of hair ailments and hair deterioration.

INTRODUCTION OF HIMALAYA AND DABUR PHARMACUTICAL INDUSTRY.

The Himalaya logo is a visual definition of its brand identity. The leaf that forms the crossbar of the letter H evokes the company's focus on herbal healthcare. The teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring. The Himalaya brand carries with it the promise of good health and well-being. Location . . . Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country. In 1975, the company set up an advanced manufacturing facility in Makali, Bangalore, India, which today houses the Corporate headquarters. In 1991, the company relocated its R&D facility to Bangalore.

Research & Development . . . each Himalaya product undergoes years of primary research and clinical trials before it reaches the market Himalaya has a well-defined Research and Development policy. It states that no investment is too much when it comes to scientifically creating safe drugs and therapies. Himalaya's history is one of innovation through research. The company believes that the ideal healthcare system lies in the synergy between ayurveda and modern science. Himalaya's constant endeavor is to create innovative products that satisfy the health and personal care requirements of contemporary living. Himalaya prides itself on being a completely research-oriented company. Indeed, it is this emphasis on R&D that allows Himalaya to produce safe, efficacious and consistent remedies using ayurvedic principles.

The R&D department is focused on product development, quality control and standardization. All products are derived through rigorous research and produced in stateof-the art facilities. The products represent commitment to continuous investment in the best people, practices and technology. Himalaya does not support "Borrowed Science" or the practice of using published literature to substantiate efficacy claims. Each Himalaya product undergoes years of primary research and clinical trials before it reaches the market. Products Himalaya's products can broadly be categorized into three main ranges, viz:

Pharmaceutical Personal Care Animal Health

Pharmaceutical Range . . . health maintenance, eye, cardiac and skin care, immune booster and cough control The medicinal range of products carry the Himalayan hallmark of researching ayurveda and capturing its benefits in formulations. Using modern research methodology and manufacturing practice, Himalaya has made available to people all over the world, an alternate method of treatment, which has no known side effects. The medicinal range comprises over 35 products and is broadly classified into four categories viz:

Children's Health Men's Health Women's Health General Health

Liv.52, Bonnisan, Himplasia, Menosan, Reosto, Tentex Royal Prominent among Himalaya brands is Liv.52, a liver formulation, which is also the flagship brand of the company. Every one-third of a second, one unit of Liv.52 is bought somewhere in the world.

It is ranked number one in the hepatoprotective - lipotropic segment and number four among all pharmaceutical products in India. (ORG Marg, July 2003). Liv.52 celebrates fifty years in 2005. In 1972, continuing its tradition of introducing safe and natural remedies, Himalaya launched Bonnisan, a natural pediatric digestive tonic. A formulation based on years of research and clinical testing, the product found wide acceptance among doctors and mothers alike. The sweet tasting tonic became a trusted part of a baby's growing up. After extensive work on the formulations and related clinical research, Himalaya introduced Menosan, a herbal non-hormonal product for menopausal women, Reosto, a comprehensive therapy for osteoporosis and Himplasia, a unique product for benign prostatic hyperplasia, a new dimension in BPH management. Some of the other well known products are Abana, Cystone, Gasex, Geriforte, Rumalaya, Diabecon, Mentat, Koflet, Himcolin, Septilin, Pilex, PureHands, etc. Personal Care Products . . . Health Care, Oral Care, Hair Care, Skin Care and Baby Care.

Himalaya has used its wealth of knowledge and research, in natural herbal remedies, to formulate a range of personal care products that cater to daily health needs. This range offers the goodness of natural solutions for daily use by the complete family. The use of natural ingredients in personal care products has been practiced since time immemorial, leading to increased use of herbs with a curative value. Modern research proves that herbs while being effective are also mild and soothing. Launched in 1999, Himalaya Herbals is a range of natural herbal personal care products spanning Health Care, Oral Care, Hair Care, Skin Care and Baby Care. The range comprises of fairness cream, soap-free face washes, facial cleansers, face toners, moisturizers, soap-free shampoos, conditioners, hair-loss control, weight control, pimple control, foot care, multi-purpose creams, skin nutrients, dandruff control, anti-stress, digestive health, pain relievers, cough & cold relievers, oral care and baby care products.

Pure Herbs, Chyavanaprasha and Forest Honey Pure Herbs, the pure and concentrated strength of a single herb in the right measure, stimulate & improve body functions. Himalaya Pure Herbs is a range of individual herb extracts. Each Pure Herb is the result of strict monitoring from the farm to the lab. At the lab, Himalaya's proprietary techniques are used to extract the optimum value of each herb. This is followed by rigorous tests by R&D team for potency and consistency. The actions of these extracts benefit the body, irrespective of the individual's body constitution, state of health and metabolic functions. Everyone can benefit from the goodness of these herbs, irrespective of age, sex, body type or other health related factors.

The Pure Herbs range comprises of the following:

Amalaki: Useful in treating cough, cold, sore throat and respiratory tract infections. It protects cells from free radical damage and is an excellent anti oxidant. Arjuna: This herb improves blood circulation and is used as a tonic for the heart. Ashvagandha: Commonly known as Winter Cherry, this herb acts as an ant-stress agent that imparts a sense of well-being and helps in coping with life's daily stresses. Brahmi: A well-known herb that helps in improving general alertness. Karela: Commonly known as Bitter Gourd, it is known to aid in the metabolism of carbohydrates. Lasuna: Commonly referred to as Garlic, Lasuna helps in controlling the excess conversion of lipids and cholesterol. Neem: A popular herb, Neem has anti-bacterial, anti-fungal and blood purifying properties. It is very useful in skin disorders and helps maintain a healthy, beautiful and glowing skin.

Shuddha Guggulu: It regulates fat metabolism and helps remove excess cholesterol from the body. Shallaki: This herb treats joint problems. Tagara: It has mild sedative properties, which are useful for insomnia and sleep disorders. Triphala: A digestive aid compound and a bowel cleanser. Tulasi: It has anti-microbial and anti-inflammatory properties, and is useful in respiratory tract infections like dry or wet cough, cold and sore throat.

Chyavanaprasha: Himalaya Chyavanaprasha is a unique combination of ancient wisdom and modern science. Its natural ingredients are tested to ensure the highest levels of purity.

Honey: Pure unadulterated Himalaya Forest Honey is sourced from India's untouched forests.

Animal Health . . . bringing its expertise in health care to animal care . . . leveraging R&D strengths in creating natural drugs and therapies . . . daily care for sensitive pets like cats & dogs The Himalaya legacy extends to animal health also. The Company offers well-researched, safe, animal health products, harnessed from nature's wealth to alleviate the suffering of animals, to improve their health and to increase their productivity. World-wide there is a growing concern about the presence of chemical contaminants in dairy, meat and poultry products. Taking a cue, The Himalaya Drug Company has extended its expertise to create Ayurvedic drugs and therapies for animal health care. Concern for animal welfare prompted Himalaya to launch the Animal Health Range of products for commercial livestock in July 1998.

The products in this range alleviate the suffering of animals and improve their health. This results in healthy livestock whose animal products are safe for human consumption. Realizing the importance of companion animals in today's life, Himalaya launched the Companion Animal Care Range of products in 2000.