Marketing Strategy of Dabur PDF Free
Marketing Strategy of Dabur PDF Free
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EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of “Dabur India Pvt. Ltd”
for a pioneering role that it has played in the evolution of the categories it has had a presence in.
“Dabur India Pvt. Ltd.” is the leader in the FMCG (fast moving consumer goods) category and
enjoys a cosiderable market market share. In 50s Dabur pioneered the concept of branded
consumer goods and since it has invested heavily in product development, clinical studies and
consumer awareness.
This report is aiming at the overall marketing mix or the marketing strategy of Dabur India
Ltd. The report also enlists various recommendations based on SWOT Analysis. This analysis
has been done on the basis of the information gathered from the company website and other
online resources and books.
TABLE OF CONTENTS
Student’s declaration………………………………………………………………………………. i
Certificate ………………………………….……………………………………………………….. ii
Acknowledgement................................................................................................................. iii
Executive Summary………………………………………………………………..……… vi
CHAPTER-1
INTRODUCTION
1.2.3.1 Population…………………………………………………………. 4
1.2.3.2 Sample Size ………………………………………………………. 5
1.2.3.3 Sampling method…………………………………………………. 5
1.2.5 Limitations…………………………………………………………………… 7
CHAPTER -2
CHAPTER -3
CHAPTER-4
CHAPTER-5
CHAPTER-6
Suggestions……........................................................................................................ 60-61
CHAPTER-7
Conclusion……………………………………………………………………… 62-64
References……………………………………………………………………..65-66
Annexure…………………………………………………………………….. 67-69
CHAPTER -1
INTRODUCTION
1.1 OBJECTIVE OF THE STUDY
Foods.
This study gives an idea of all marketing activities. So the way a problem is
solved right decision making and knowledge of different types of marketing
activities give much importance to the study.
1.2 RESEARCH METHODOLOGY
Information needed
Measurement and scaling Procedures
Appropriate Data collection
Sampling Process and sample size
Data Analysis plan
The data was collected both with the help of primary as well as secondary
sources.
For primary data, I proceeded with the drafting of the questionnaire for
consumers was structured as undisguised, & Personal -interview retailers.
Distributors & wholesalers and it was handed personally by me to the
respondents to be analysed.
The questionnaire method was used-
Secondary data was also collected personally by me, which the company has
furnished for the general public. The secondary data was gathered with the help
of various magazines, journals, brochures and also through the internet. For
secondary sources no field work was employed.
The marketing researcher must define the target population that will be
sampled. In my case the target population were the consumers and retailers,
distributors selling prducts of Dabur Pvt. Ltd. at Delhi region.
1. Sample size for customers were 150 in number and the universe
comprised of all the consumers within the geographical region of
Delhi.
3) Sample size for Distributor & Wholesaler were four in number & the
universe comprised of all the consumers within the geographical region of
Delhi.
STATISTICAL TOOLS
COMPANY’S PROFILE
COMPANY’S PROFILE
DABUR AT A GLANCE
Dabur India Limited has marked its presence with some very significant
achievements and today commands a market leadership status. Our story of
success is based on dedication to nature, corporate and process hygiene,
dynamic leadership and commitment to our partners and stakeholders. The
results of our policies and initiatives speak for themselves.
Wide and deep market penetration with 47 C&F agents, more than
5000 distributors and over 1.5 million retail outlets all over India
CCD, dealing with FMCG Products relating to Personal Care and Health Care
Leading brands -
Dabur Lal Tail tops baby massage oil market with 35% of total share
CHD (Consumer Health Division), dealing with classical Ayurvedic
medicines
Has more than 250 products sold through prescriptions as well as over
the counter
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
- Madhuvaani
- Trifgol
COMPANY HISTORY
Inroads into European and American markets that have good potential due
to resurgence of the back-to-nature movement.
With a basket including personal care, health care and food products, Dabur
India Limited has set up subsidiary Group Companies across the world that can
manage its businesses more efficiently. Given the vast range of products, sourcing,
production and marketing have been divested to five leading group companies
that conduct their operations independently:
DABUR FOODS
DABUR NEPAL
DABUR EGYPT
DABUR ONCOLOGY
DABUR PHARMA
COMPANY PHILOSOPHY
VISION
PRINCIPLES
OWNERSHIP
PEOPLE DEVELOPMENT
People are our most important asset. We add value through result driven
CONSUMER FOCUS
INNOVATION
INTEGRITY
We are honest with consumers, with business partners and with each other.
MILESTONES
Milestones to success
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued
to learn and grow to a commanding status in the industry. The Company has gone a
long way in popularising and making easily available a whole range of products based
on the traditional science of Ayurveda. And it has set very high standards in
developing products and processes that meet stringent quality norms. As it grows even
further, Dabur will continue to mark up on major milestones along the way, setting the
road for others to follow.
initiated
The Ayurvedic digestive formulation is converted into a children's fun product with the
launch of Hajmola Candy. In an innovative move, a curative product is converted
to a confectionary item for wider usage.
1996 - Enters foods business with the launch of Real Fruit Juice
Dabur captures the imagination of young Indian consumers with the launch of Real Fruit
Juices - a new concept in the Indian foods market. The first local brand of 100% pure
natural fruit juices made to international standards, Real becomes the fastest growing
and largest selling brand in the country.
crore
Dabur became the first Ayurvedic products company to get ISO 9002
certification.
FINANCIAL
REPORT
Rs (Crores)
2007-2008 2005-2006
165.02 113.44
Redemption Reserve
Allowance Reserve
Deposit Revenue
APPROPRIATION TO:
MARKETING STRATEGY
OF DABUR PVT. LTD.
MARKETING STRATEGY FOR DABUR
FOODS
Fruit processing industry has been included in the high priority sector, which
means automatic approval for upto 51% foreign equity participation, free
import of capital goods, raw materials and other inputs for export oriented
units, and five tax-holiday for companies. This special treatment was
warranted due to inherent high growth potential.
There has been three-fold increase in fruits processing units in the last seven
years. The installed capacity of fruit processing industry has gone upto 29.10
lakh ton in 2003 from 19.50 lakh ton in 1998. The output of processed fruit
grew by around 22% during the same period.
15% per annum, no significant change has accrued to the companies from
increased production of fruits as the cost of production has remained high,
primarily driven by the cost of raw material. High cost of raw material is due
to small land holdings, which discourages the use of mechanised methods and
there are no economies of scale.
On the export market front, the picture seems to look better. A whole range of
new processed food products is emerging as the new export potential, which
specifically include the fruit juices. The Indian exports were generally
dominated by mango pulp.
Within the domestic market, among the processed fruit products, fruit juices
and such other products, like nectars etc, are beginning to get a market. But the
off-take is limited to the high income group. These products also face stiff
competition from bottled aerated drinks.
These facts does not really mean a dismal potential installed in for fruit juice
industry there exists a latent demand for fruit juice in the country. Indian
consumer has become more and more hygiene and health conscious, which has
led him to demand for hygienic food products. Fruit juices thus, have a great
potential to appeal to the Indian Consumer. The income level of the average
Indian is rising which has resulted in increase in disposable incomes.
Therefore, consumers are ready to buy packets, processed and hygienic fruit
juices rather than a glass of juice from the roadside juice vendor, even if the
packed juice may cost him more. Realising these facts and Govt policy to
include processed fruit juice industry under the high priority sector, many new
and old companies entered the packed fruit juice market.
To precede everyone, was the Rs. 1050 crore Dabur India Ltd which is well
known as a pharmaceutical company. In June, 1996 Dabur, entered the juice
market realising its potential with its vast range of Real fruit juices. Real fruit
juices were not an instant success. Its failure can be attributed to the slackness
in the distribution network.
Learning upon the lost opportunity by Dabur, a Mumbai based textile firm
looked upto to diversify its business operations and entered the fruit juice
market with the formation of Enkay Texofood Ltd. Their brand Onjus was
launched in April 97, and with careful planning they captured a huge market
share in virtually monopolistic market conditions.
Dabur later realised its mistakes and geared up to take on the market leader
Onjus. Relaunched, Real fruit juices in August 98, the revitalizedReal fruit
juices have started doing well after its relaunch.
Watching the intense battle between Tropicana and Real fruit juices, to caputer
the Indian fruit juice market, international soft drink giant Pepsi decided to
enter this lucrative fruit juice market. Pepsi recently launched its answer to
Onjus and Real in the shape of Tropicana.
The presence of Tropicana, Real and Berry suggest that there is an immense
potential in the Indian fruit juice market. Even though the established players
like Onjus and more frequently Real have captured a chunk of the juice
market. The entry of Tropicana suggest that there is still scope for others to
enter into this market and hatch the eggs of the golden goose, Indian juice
market.
The products undertaken in fruit juice segment in the Beverage industry are:
The activities and programs which a business firm designs and carries out in
its efforts towards winning customers, relate one or the other of the four
elements, which are usually known as four P’s of marketing, or just Marketing
Mix variable.
Product
Place
Price
Promotion
1) Product means the goods and the services combination the company Offers
to the target market.
3) Price is the amount of money customers have to pay to obtain the Product.
Its variables are :-
- Pricing policies, levels of margins, discount and rebates.
4) Promotion means activities that communicate the merits of the product and
persuades the target customers to buy it.
Its variables are :-
- Personal selling:- objectives, level of effort, quality of sales force, cost level,
level of motivation.
An effective marketing program blends all the, marketing mix elements into a
coordinated program designed to achieve the company’s marketing.
Hence, the product to be analysed as stated here under with their marketing
mix.
CHAPTER – 4
ANALYSIS
AND
INTERPRETATION
PRESENTATION OF DATA
CONSUMERS ANALYSIS
No
0%
Yes
100%
INTERPRETATION
The above pie chart chart shows that all the people drink fruit juices.
2. Brand Awareness
90% 82%
80%
70%
60%
50%
40%
30%
19%
20% 11%
7%
10% 4% 3%
0%
Ad. Pos te r Shopk ee per Friends Ne ighbours Othe r s
INTERPRETATION
The above bar diagram shows that people get to know more about the product through
advertisements and less through posters and other means.
3. Seasonal Consumption of Real Juice
Consta nt
Winter 13%
4%
Summe r
83%
INTERPRETATION
The pie chart shows that in summers 83% of the population consumes real fruit
juice as compared to 4%in winter.
4. Consumption of Real Juice if there will be slight increase in Price
& Increase in quality
High
Consta nt 37%
47%
Low
16%
INTERPRETATION
47% of the people will still be consuming real juices if there is a slight increase in
price and increase in quality whereas 37%of people fell that there will be an
increase in consumption.
5. Customer Expectation from Dabur by exemption of excise Duty.
Quality Benefit
43%
INTERPRETATION
About 36% of the people that there will be an increase of both price and quality
whereas 43% feel that there will be a quality benefit and 21% feel that there will be a
price benefit by the exemption of excise duty.
6. Consumption of Real Juice if there will be increase in quality and
slight decrease in price.
Constant
29%
Low
0%
High
71%
INTERPRETATION
The above pie chart shows that 71% of people will still consume real juices if
there is an increase in quality and a slight decrease in price.
7. Will discount influence customers to leave Dabur & use other Juice
knowing Real Juice is better.
Yes
27%
No
73%
INTERPRETATION
The above pie chart shows that 73 % of the people will still be using dabur if it’s
competitors offer discounts.
CONSUMERS ANALYSIS
No
21%
Yes
79%
INTERPRETATION
The pie chart depicts that 79% of the population uses cooking paste to make
food delicious..
2. Recall of Dabur Homemade Cooking Pastes
70%
62%
60%
47%
50%
40%
30%
20% 14%
11%
10% 6%
3%
0%
Neighbours
Friends
Ad.
Others
Posters
Shopkeepers
INTERPRETATION
The above graph depicts that around 62%of people come to know about dabur
cooking pastes through advertisements whereas 47%through shopkeepers ,
and a mere 3% from other sources.
3. Category of Paste Consumer Buy.
87%
90%
80% 74%
70%
60%
50%
41%
36%
40%
30%
0%
Garlic/Ginger
Capsico Red
Capsico Green
Garlic
Ginger
Tamarind
Lemoneez
INTERPRETATION
The above bar diagram depicts that 87% of people buy ginger paste – the
highest whereas the lowest is of 9% that of tamarind paste.
4. Customer expectation from Dabur by exemption of excise duty.
Mix of both
Price & Quality
26%
Price Benefit
57%
Quality Benefit
17%
INTERPRETATION
The above pie chart shows that 57% of the customers expect a price benefit and
17% expect quality benefit if there is an exemption of excise duty.
5. Consumer of Homemade if there will be slight increase in Price &
increase in quality
High
16%
Consta nt
41%
Low
43%
INTERPRETATION
The pie chart shows that 43% people will lower there consumption of homemade
products if there is a slight increase in price and an increase in quality.
6. Do discounts influence customers to leave Dabur & use other Paste
Knowing Homemade is better
Yes
21%
No
79%
INTERPRETATION
The above pie chart shows that 79% of the people will not be influenced by
discounts and leave dabur to use some other paste.
RETAILERS ANALYSIS
No
18%
Yes
82%
INTERPRETATION
It shows that nearly 82% of the retailers have stockings of real juice.
2) Stocking of Real Juice Over the Past Year
Remined the
Decreased
same
0%
23%
Increased
77%
INTERPRETATION
The above pie chart shows that there was a increase of 77% of stockings of real
juice over the past year.
3) Reasons for stocking Dabur Real Juice
Promotiona l
Sche mes
8%
Highe r trade
ma rgins
49%
Consume r a
sk for it
43%
INTERPRETATION
Nearly 43% of the people said that stocking was made as consumers asked for
it and 49% replied that it was for higher trade margins
4) Any effect of increase in Price in real Juice
Yes
17%
No
83%
INTERPRETATION
Nearly 83% of the people that there was no effect in increase in prices of real juice.
RETAILER ANALYSIS
DABUR HOMEMADE
No
37%
Yes
63%
INTERPRETATION
The above pie chart depicts that 63% of retailers make a stock of dabur
homemade goods.
2) Purchase of Cooking Paste
Dabur
Homemade
91%
INTERPRETATION
The above pie chart shows that 91% people purchase dabur cooking pastes
Natural brands
Schemes
available
4%
15% Higher trade
margins
42%
Consumer ask
for IT
39%
INTERPRETATION
The above pie chart shows that 39% of the consumers ask for the stocking of
dabur homemade whereas 42% feel it is because of higher trade margins.
4. Any effect of Budget
Yes
16%
No
84%
INTERPRETATION
The above pie chart shows that 84% people feel that there will be no effect of
budget on the consumption of dabur products whereas 16% feel that there will
be an effect of budget.
ANALYSIS OF DATA
SWOT ANALYSIS
STRENGTHS:-
Easy availability
Reliability
Undifferentiated market
WEAKNESSES
Perishable product
OPPORTUNITIES
Export potential
THREATS
FINDINGS
FINDINGS
The Facts :
The Real range of juices includes orange, mango, pineapple and mixed fruit
juices as well as its vegetable variant, tomato in its product line.
This juices contain 100 percent fruit juice. Real has no additives artificial
flavour, colour or preservatives.
The fruit juice has a self life of six months and does not need refrigeration at
the retail end. The Juices are available both in sweetened and unsweetened
form.
Real fruit juices were available and packed in Nepal in 500ml and llitre
tetrapack, Prevaiously it was available in elopack. To overcome this
hindrance, Dabur India tied up with Godrej Foods regarding the packaging of
Real, and now Real is available in tetrapacks of 200ml, 250ml, 500ml, l litre
which are tapped at the top for easy handling. The market share of Real juices
account for 35% & enjoying the Privilege of becoming Mkt leader.
FINDINGS :-
FACTS
Orange
REAL (sweetened 13 - Rs 35 Rs 60
Unsweetened)
Mango
Pineapple
Tomato Rs 35 Rs 60
FINDINGS:-
Real, multi flavoured brands has put its different flavours under
different price tag keeping in mind the preferred tastes of Indian
consumer. The sweetened and unsweetened juice varieties are priced
same.
Since Real is fighting its battle not just against its immediate
competitor Tropicana but also against the established Frooti, so the
prices for orange and mango juices are in a competitive range and
the other juices are priced a higher than that of orange and
mango juices keeping their novelty and preferences of Indian
consumer in mind. Last year, Real launched its festive carton of
four 500 ml packs (2 oranges, 1 mixed and 1 tomato) priced at Rs.
90. This year Real launched a gift pack of four 500ml packs (mango, orange,
pineapple and mixed fruit juices) priced at Rs. 105. Also, Real has launched a
scheme of Buy two orange juice pack of 250ml and save Rs. 8’. The company
believe that once the consumer try the brands at slashed price, the brands
would gain peak sales year after year. However, the company failed to
understand that consumer in general are no longer brand loyal and are always
hunting for “value of money”. In order to steal the show from aerated, non-
alcoholic fruit drinks, it is imperative that the company try and increase profits
by increasing sales volume and reaching economy of scale and not by
increasing price tag.
PLACE
The Facts:-
Real is aimed at teenagers, young kids, wives, mother and family people.
Initially, when Real Fruit juices were launched, they were sparsely available.
Positioned as an up market brand, it was mostly available in mid-up market
outlets. The absence of small, convenient packs made Real less discrete in a
Premises outlets like college canteens and roadside stores. To make matters
worse in-transit damages to the packs during carton handling earned the brand
a bad name initially. But realising their mistake and after loosing a large chunk
of its market share to its competitor, the packing of Real was changed from
elopackes to tetrapacks, and the distribution channel was made more efficient.
The efficiency of distribution is such, that now Real fruit juices are available
every where.
FINDINGS:-
Real has done well to elaborate their consumer segment from kids, teenagers
to young adults and family people, surprisingly the sales has not risen
exponentially. In today’s buyer’s market, if one brand is not available, the
second one would conveniently takes its place. Product differentiation and
PRODUCT (HOMEMADE)
FACTS:-
The Pastes contain 85% Natural ingredient with additives artificial flavour,
colour or Preservatives.
Home mades has a self life of 6 months & does not need refrigeration at the
retail end Home mades are & in tetrapack form & available in 50% (T.P.),
200g & 250g.
FINDINGS:-
In terms of variety & flavour, Real offers a multi flavoured variety. Also
Indians are known for eating delicious foods. In provides artificial taste- a big
Plus for Homemade brand.
Bottle, Pack & Tetra pack were introduced by Homemade to ensure goods
quality.
PRICE
FINDING:-
As Homemade is a new concept and Dabur was Ist to launch Cooking Paste by
the name of Homemade, Prices were kept low as Garlic/ Ginger mix 50g
(T.P.) is priced at Rs. 5 Homemade 50g (T.P.) was given free with 250g Dabur
Honey as Company believe that once consumers try the brands at slashed
price, The brand would gain Peak sales year after year.
PLACE
FINDINGS:-
Homemade has done well the market the market despite the fact that it is a
new concept for the people to digest it. Homemade sales are increasing every
year and its distribution network becomes strong. Now it is available at every
nook & corner, it has gained momentum substantially.
CHAPTER – 6
SUGGESTIONS
SUGGESTIONS
1. As the products analysed belong to the cooking pastes and fruit juices
segment, stringent quality management is necessary at each and every
stage of production, packaging and distribution.
3. A common Indian is aware of soft drinks and even fruit drinks but least
of all of fruit juices, so what is therefore required is extensive
promotion for Real Juices.
4. Real fruit juices has opened the gates for vegetable juices, by
introducing-Tomato variants, other vegetable flavours such as that of
carrot can also be introduced- which will definitely appeal to health
and hygiene conscious consumers.
CHAPTER-7
CONCLUSION
CONCLUSION
The juice Industry is yet to capture the beverage market in full swing. Aerated
soft drink followed by fruit drinks dominate the market. The consumer’s
patriotic love for tea and coffee is unfared. Juices are yet to establish their
supplement use in the average household here in lies the great opportunities.
Within the market, it is safe to conclude that Real has hit off ratherwell with
the masses. Real has clearly lost it head start advantage and thereby acquiring
just 35% of the market share while others enjoys rest of the market share. This
could be well attributed to Real successful ATA (Availability, Taste and
Affordability) marketing module, the attributes most rated by the consumers.
Lack of publicity has hampered the growth progress of the brand so
aggressive advertising is needed to promote Real and Homemade brand .The
brands such as that of ‘Splash’ by Nestle, Safal with its ‘Guavaand Mango
flavour, Coca-Cola’s ‘Minute- made’ and also US food giantssDel Monte are
ready to hit the juice market very soon.
As 16% of the excise duty is exempted on food products in this budget , Many
food companies including Dabur got benefited from it . On the analysis of
survey it was found that target Market of real Juice want quality benefit rather
then price to increase sales and profit . To increase market share Dabur should
give slight price benefit on Real brand so that customers of other Juice
brand should switch from other brand to Real brand .
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BOOKS:
QUESTIONNAIRE (RETAILERS)
Which brands?
[i] Dabur ž [ii] Himani ž
[iii] Zandu ž [iv] Any other [specify]……………
Yours Suggestions: -
……………………………………………………………………………
……………………………………………………………………………
QUESTIONNAIRE (CONSUMERS)
2. Which brand comes to your Mind first when you heard of the word "Honey"?
(i) Dabur ž (ii) Zandu ž
(iii) Himani ž (iv) Any other Specify)…………...
9.What are the primary reasons for which you use Dabur products?
(i) Health ž (ii) Price ž
(iii) Brand loyalty ž (iv) Taste ž
(v) Any other (specify)…………