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ACKNOWLEDGEMENT I would like to whole hearty thank and express my sincere gratitude to Prof. Y.S. Thakur Head of the Department of Faculty of Management Studies Dr. Hari Singh Gour Central University, Sagar for suggesting me this problem and for giving an insight in delaing with the subject

.I am highly obliged to, Mr. Ankur Randheliya Miss Mayuri Jain, Mr. Shri Bagwat, Miss Pragya Bhargav, Miss. Priyanka Jhakariya, Miss Devagya Shrivastava, Mrs. Jyoti Pandey, Mr. Girbal singh Lodhi, and All Faculty member, for guiding me in various aspects of this project like conducting field work and designing questionnaire and suggesting me the Project Work and helping me in finalising the Report. I express my gratitude to all the customers who very kindly discussed various aspects of this study and provided useful suggestions for discussing various problems.

Lastly, I Must express my gratitude to all the elders of the family and citizen of the city who blessed me in course of discussion. I also extend my sincere thanks to my family and my friends for their encouragement and support.

(RAJENDRA SINGH LODHI )

B.B.A II Semester

DELCLARATION BY THE CANDIDATE Date : I declare that the project report titled " AMUL " on Market Segmentation is nay own work conducted under the supervision of Prof. Y.S. Thakur Department of Business Management Dr. Hari Singh Gour Central University Sagar To the best of my knowledge the report does not contain any work , which has been submitted for the award of any degree , anywhere.

(AARTI LODHI) B.B.A IInd Semester

CERTIFICATE The project report titled "AMUL " been prepared by MISS AARTI LODHI B.B.A II Semester , 16th Batch under the guidance and supervision of Prof. Y.S. Thakur for the partial fulfillment of the Degree of B.B.A.

Signature of the

Signature of the

Signature of the

Supervisor

Head of the Department

Examiner

PREFACE The Project work is field which uses tools and techniques to transfer subjectivity in the environment into objectives, also the findings of the research, when applied show results, which can be measured and evaluated so there is feedback this is what makes it a dynamic activity.

This survey is an analytical study of a different facts of the product. The focus is given on the Brand profile. This project entitled Company Profile of “BPL LTD.”, is for the partial fulfillment of B.B.A.(Hons) Degree.

The idea behind this project is to give practical knowledge and to make them to face real life situation. The project survey is commonly used for the collection from the respondents through questionnaire. In this method statistical techniques have been used systematically. This project survey is not only with my own efforts but also that of others.

RAJENDRA SINGH LODHI BBA II SEM. 16TH BATCH

TABLE OF CONTENT Chapter-1 Introduction 1.1

Executive Summary

1.2

FMCG Sector Overview

1.3

Company Overview

1.4

FINANCIAL REPORT

1.5

Company History

1.6

Product Line of Dabur

1.7

SWOT Analysis

Chapter-2 Objective & Methodology 2.1

Overview of Hair Oil Segment

2.2

Overview of Vatika

2.3

STP Analysis of Vatika Hair Oil

2.4

Marketing Mix of Vatika hair Oil

2.5

Advertising

2.6

Competitor Analysis of Vatika Hair Oil

Chapter-3 Conceptual Discussion (Theoretical Backdrop & Literature Review) 3.1

Customer Questionnaire of Vatika Hair Oil

3.2

Customer Survey Results of Vatika Hair Oil

3.3

Retailer Questionnaire of Vatika Hair Oil

3.4

Retailer Survey Results of Vatika Hair Oil

Chapter-4 Data Analysis 4.1

STP Analysis of Dabur Chyawanprash

4.2

Marketing Mix of Dabur Chyawanprash

4.3

Competitor Analysis of Dabur Chyawanprash

4.4

Customer Questionnaire of Dabur Chyawanprash

4.5

Customer Survey Results of Dabur Chyawanprash

4.6

Retailer Questionnaire of Dabur Chyawanprash

4.7

Retailer Survey Results of Dabur Chyawanprash

4.8

Ansoff’s Product Market Expansion Grid

4.9

The BCG Growth-Share Matrix

4.10

The New Dabur Entity

4.11

The Future of Dabur con

Chapter-5 Findings and Recommendations 5.1

Recommendations

5.2

References

OVERVIEW 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 wellestablished 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$ 11.6 billion in 2003 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 is expected to rise from 135 million in 2001-02 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$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further.

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 India’s 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 for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s 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). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.

FINANCIAL REPORT Rs (Crores) 2006-2007

2005-2006

Turn over (including other income)

1280.22

1159.02

Profit before tax

165.02

113.44

-

0.20

165.02

113.44

13.00

8.75

: provision for taxation – Deferred

4.00

3.49

: provision for taxation for earlier yr

0.05

00.26

147.97

101.14

81.12

66.12

--

2.50

0.83

-

1.82

-

231.74

169.76

General Revenue

25.15

22.50

Capital Revenue

-

1.56

Interim Dividend paid

28.63

17.17

Final Dividend – proposed

42.96

40.07

Corporate tax on Dividend

9.77

7.34

125.23

81.12

231.74

169.76

Add: Provisions of earlier yr written back

Less: provision for taxation - current

PROFIT AFTER TAX Add: Balance in profit & loss account b/f

From the previous yr -

Transferred from debenture

Redemption Reserve -

Transferred from investment

Allowance Reserve -

Transferred from Investment

Deposit Revenue PROFIT AVAILABLE FOR APPLICATION APPROPRIATION TO:

Balance carried over to Balance sheet TOTAL

COMPANY HISTORY 1975The Company was incorporated on 16th September for manufacture ofhigh gradeedible & industrial guargum powder and its sophisticatedderivatives. It wasincorporated in the name of Vishal Chemical(India) Ltd. 1981- On 19th September the name was changed to Vidogum and Chemicals Ltd.Thecapacity of the plant was 2700 tpa of modified and refined guargumpowder andderivatives such as oxidised guargum carboxymethylatedguargum sydoxalkylatedguargum and

similar carbo hydratemodification. It was promoted by Dabur (S. K.Burman) Pvt. Ltd. andfounded in 1884 in Calcutta. The company manufacture herbalandAyurvedic medicines and cosmetics in India. The other products areDabur AmlaHair Oil Badur Chavanprash Pudin Hara etc.- The company undertook to set up a unit at Matsya Industrial Estate Alwar Rajasthanfor manufacture of edible and industrial grade guargumpowder and its derivatives. 1992- A new range of coconut oil under the brand name `Anmol' was launched.Thecompany developed Dab 10 an intermediate for anticancer drugnamely Taxol.- The Company undertook to implement a phytopharma project at GhaziabadU.P. Thisunit would manufacture a specialised anti cancer drug Taxotapart from manufacture of chemical intermediary for cancer drug andTerfenadine a non sedative anti allergicdrug. The installed capacityof Taxot the intermediate drug and anti allergic drug wouldbe `6 Kg 40 Kgs. and 18 tonnes respectively.- The company entered into a joint venture agreement with M/s.Guldenhorst BVNetherland to form a company for manufacture andmarketing of all types of bubblegum chewing gum toffees chocolateand cocoa related products sugar basedspreading creams etc. Thecompany co-promoted Dabur Finance Ltd. to carry on thebusiness ofleasing financing etc. - 45 50 520 shares allotted. Pursuant to a scheme of amalgamation ofDabur with Vidogum.1994- New products launched were `Dentacare ' Vatika and Lactonic whichwere wellreceived in the market

1884

Birth of Dabur

1896

Setting up a manufacturing plant

Early 1900s

Ayurvedic medicines

1919

Establishment of research laboratories

1920

Expands further

1936

Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972

Shift to Delhi

1979

Sahibabad factory / Dabur Research Foundation

1986

Public Limited Company

1992

Joint venture with Agrolimen of Spain

1993

Cancer treatment

1994

Public issues

1995

Joint Ventures

1996

3 separate divisions

1997

Foods Division / Project STARS

1998

Professionals to manage the Company

2000

Turnover of Rs.1,000 crores

PRODUCT LINE Foods

Real Real Activ Hommade Lemoneez Capsico Shankha Pushpi Dabur Balm Sarbyna Strong

Personal Care

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

Hair Care Shampoo Anmol Silky Black Shampoo Vatika Henna Conditioning Shampoo Vatika Antidandruff Shampoo Anmol Natural Shine Shampoo

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

Skin Care Gulabari Vatika Fairness Face Pack

SWOT ANALYSIS OF DABUR

WEAKNESS

STRENGTHS Strong

presence

in

well

defined

Seasonal Demand( like chyawanprash in

niches( like value added Hair Oil and

winter and Vatika not in winter)

Ayurveda specialties)

Low Penetration(Chyawanprash)

Core

knowledge

of

Ayurveda

as

competitive advantage

High price(Vatika) Limited differentiation (Vatika)

Strong Brand Image Product Development Strength Strong Distribution Network

OPPORTUNITIES

THREATS

Untapped Market(Chyawanprash)

Existing Competition( like Himani,

Market Development

baidyanath

Export opportunities.

Chyawanprash and Marico,Keo Karpin,

Innovation

HLL and Bajaj for Vatika Hair Oil)

Increasing income level of the middle class Creating additional consumption pattern

and

Zandu

for

Dabur

THE HAIR OIL SEGMENT In the last quarter of the previous century Indian women have imbibed global mores, ethics, fashions and styles in a remarkable way. Yet the popular iconography of Indian beauty still associates them with beautiful fair skin and dark, long lustrous hair – a commonly accepted definition of beauty in Indian society. Across the country, mothers spend endless hours teaching their daughters what their mothers had taught them about maintenance of their natural beauty – taken primarily as caring for the skin and hair. In the hair care regime, of the numerous prescriptions none is more universally accepted than the oiling of hair for nourishment and use of homemade concoctions of henna and shikakai paste for conditioning them. It would come as a surprise to only a few that hair oils have a penetration of almost 98% (Source: IRS 2003). Of the branded market, hair oils form a major chunk accounting for Rs. 13 billion with coconut hair oils as the prime segment at Rs. 9.1 billion. (Source: ACNielsen ORG-MARG 2003).

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 company’s 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 company’s 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, 2003). 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).

STP ANALYSIS OF VATIKA HAIR OIL 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

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

Product •

Price

Promotion

Product

•

List Price

Variety

•

Discount

•

Quality

•

Financing

•

Design

•

Features

•

Brand Names

•

Services

• •

•

Credit Terms

Advertising &

•

Channels

Promotion

•

Location

Public

•

Inventory

Relations

Schemes

Place

•

Sponsorships

•

Internet Marketing

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, ...