Marketing Strategies of Dabur Products PDF

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MAJOR PROJECT REPORT ON

MARKETING STRATEGIES OF DABUR PRODUCTS

Submitted to: GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY In partial fulfillment of the require for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION (2018-21)

SUPERVISED BY: -

SUBMITTED BY:-

Dr. Niraj RBL Saxena

Name : Abhishek Kumar Singh

(PROFESSOR)

Enrollment No.: 00515501718

NEW DELHI INSTITUTE OF MANAGEMENT 61, TUGHLAKABAD INSTITUTIONAL AREA, NEW DELHI-62

ACKNOWLEDGEMENT I express my sincere thanks to Dr. Niraj RBL Saxena, senior professor for giving me moral support and his kind attention and valuable guidance to me throughout this course. Finally, I also acknowledge with deep gratitude, the immense support I received from my family members who have always encouraged me and have been a source of inspiration and help in continuing my effort. While doing the project I visited many companies in NCR region and met many senior personnel. I would like to extend my special thanks to all of them for sparing their time to patiently answer the questions and giving their views.

ABHISHEK KUMAR SINGH

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PREFACE

This project had been undertaken for “MARKETING STRATEGIES OF DABUR

PRODUCTS”.

Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.2233.72 crore with powerful

brands

like

Dabur

Amla,

Dabur

Chyawanprash,

Vatika,

Hajmola & Real.

In order to gather the most appropriate and accurate data survey was conducted in various location and markets in NCR Region. The data was assimilated with the help of a questionnaire aimed and designed to extract the most correct and conclusive information.

The consumers were requested to fill the questionnaire and were also asked various other relevant questions revealing detailed information apart from that in the questionnaire.

The survey was conducted successfully and its findings have been studied, analyzed and have led to a conclusion, included in the report, which could prove to be fruitful for the project.

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TABLE OF CONTENT  Acknowledgement  Certificate of the company from the company supervisor/boss  Table of contents/Index  List of tables, charts and figures Ch-1 Introduction and nature of job assigned Ch-2: Industry overview 2.1 Past, present and future trends 2.2 Major Players and their respective market share Ch-3: Company profile 3.1 History 3.2 Vision, Mission and objectives of the company 3.3 Organizational structure/Management hierarchy 3.4 Products and services offered 3.5 Future plans Ch- 4: Job Description 4.1 Job description statement 4.2 Detailed Job Profile 4.3 Area Assigned 4.4 Target Assigned 4.5 Week to week on job experience Ch-5: Findings about the company and analysis 5.1 Major findings 5.2 Future growth prospects Ch-6 Difficulties faced and major limitations Ch-7 Conclusion and suggestions Annexures

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CHAPTER 1 INTRODUCTION & NATURE OF JOB ASSIGNED

4

INTRODUCTION Dabur India Limited is one of the leading consumer goods company of India with interests in healthcare, personal care and foods. For more than a century Dabur has worked in active collaboration with nature to provide the best of herbal health and personal care products to its consumers. Today, Dabur is all set to take this abundant knowledge of Ayurveda to global frontiers.

Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.2233.72 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. CORPORATE PHILOSOPHY:

Knowledge is the key to growth in today's world. Whatever the industry, it is the knowledge, which provides cutting edge to individual and organizations. For more than a century nature has been a rich source of knowledge for Dabur. Nature has not only given us the ingredients for all our products but has also taught us how to create a harmony within and without the organization. Nature has inspired us in all our acts. Ayurveda - the science of life is based on principles of nature. All Ayurvedic preparations have their ingredients derived from Nature. Dabur has converted the healing properties of natural ingredients and the age-old knowledge of Ayurveda into contemporary healthcare products to alleviate health problems of its consumers. Dabur is committed to expand the reach of this age-old knowledge of Ayurveda and Nature through web. Through web, they aim to overcome the physical boundaries to take Ayurvedic way of life to global frontiers. Dabur India Limited understands its responsibility as a corporate house. We have not only set our sight on increasing turnover and profitability of the company but also on propagating Ayurveda - the Indian system of medicine.

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6

CHAPTER 2 INDUSTRY OVERVIEW

7

8

9

10

11

Past Present and Future of The Industry

12

13

14

Major Players and The Market Share

Name

Last Price

HUL

796.70

Dabur India

Market

Sales Turnover

Net Profit

Total Assets

172,395.59

30,805.62

4,315.26

3,724.78

267.55

47,065.82

5,431.28

762.58

2,465.32

Godrej Consumer

1,255.80

42,764.13

4,429.80

654.45

3,383.39

Colgate

948.25

25,791.04

3,981.94

558.98

770.31

Marico

397.70

25,655.05

4,681.20

545.17

2,520.27

Emami

1,012.20

22,973.66

2,030.64

471.63

1,220.53

P and G

5,716.80

18,557.15

2,333.79

346.14

1,228.68

Gillette India

4,647.55

15,144.14

1,973.50

158.13

742.34

Godrej Ind

382.65

12,856.61

1,454.64

148.81

3,453.43

Bajaj Corp

426.75

6,294.56

821.29

173.31

491.80

Jyothy Labs

300.95

5,450.60

1,437.82

142.79

1,361.69

GKB Ophthalmics

84.05

34.91

29.85

-2.26

22.88

JHS Svendgaard

12.50

30.12

55.32

-22.14

120.59

(Rs. cr.)

Cap.

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CHAPTER 3 COMPANY PROFILE

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AT A GLANCE OVER THE YEARS: The story of Dabur goes back to 1884, to a young doctor armed with a degree in medicine and a burning desire to serve mankind. This young man, Dr. S. K. Burman, laid the foundations of what is today known as Dabur India Limited. From those humble beginnings, the company has grown into India's leading manufacturer of consumer healthcare, personal care and food products. This phenomenal progress has seen many milestones, some of which are mentioned below:

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

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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

2003

Dabur demerges Pharma Business

2005

Dabur aquires Balsara

2005

Dabur announces Bonus after 12 years

2006

Dabur crosses $2 Bin market Cap, adopts US GAAP

2006

Approves FCCB/GDR/ADR up to $200 million

2007

Celebrating 10 years of Real

2007

Foray into organised retail

2007

Dabur Foods Merged With Dabur India

1884 Dr. S K Burman lays the foundation of what is today known as Dabur India Limited. Starting from a small shop in 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 feels the need for mass production of some of his medicines. He sets up a small manufacturing plant at Garhia near Calcutta.

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1900s The next generation of Burmans takes 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 leads to the setting up of the first Research & Development laboratory at Dabur. This initiates a painstaking 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 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 the north-east.

1936 Dabur India (Dr. S K Burman) Pvt. Ltd. is incorporated.

1940 Dabur diversifies into personal care products with the launch of its Dabur Amla Hair Oil. This perfumed heavy 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.

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1956 Dabur buys its first computer. Accounts and stock keeping are one of 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 tablet. This is the first time that a classical Ayurvedic medicine is branded - from Shudhabardhak bati to Hajmola tablet.

1979 The Dabur Research Foundation (DRF), an independent company, is set up to spearhead Dabur's multi-faceted research.

1979Commercial 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 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.

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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 for manufacturing and marketing confectionery items such as bubble gums in India. 1993 Dabur sets up the oncology formulation plant at Baddi, Himachal Pradesh.

1994 Dabur India Limited comes out with its first public issue. The Rs.10 share is issued at a premium of Rs.85 per share. The issue is oversubscribed 21 times.

1994 Dabur reorganizes its business with sales and marketing operations being divided into 3 separate divisions.

1994 Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Paclitaxel). 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 and other dairy products.

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1996 Dabur launches Real Fruit Juice which heralds the company's entry into the processed foods market.

1997 The Foods division is created, comprising of Real Fruit Juice and Hommade cooking pastes to form the core of this division's product portfolio.

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 enable efficiencies and improve growth rates.

1998 The Burman family hands over the reins of the company to professionals. Mr. Ninu Khanna joins Dabur as the Chief Executive Officer.

1999-2000 - Dabur achieves the Rs.1000 crore turnover mark.

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OBJECTIVE VISION

"Dedicated to the Health and Well Being of Every Household." Dabur is a company with a set of established business values, which direct its functioning as well as all its operations. In this, Dabur is guided by the words of its founder Dr. S K Burman "What is that life worth that cannot give comfort to others." The company offers its consumers, products to suit their needs and give them good value 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 material but also an inspiration and the company is committed to protect the ecological balance.

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MISSION

"To be the leader in the Natural Foods & Beverages Industry." Strive to deliver this by:







Consistently delighting the consumer through quality products

Being the company of choice for our business partners

Delivering higher returns to stakeholders.

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BRAND MANAGEMENT STRATEGIES The caselet provides an overview of brand management strategy adopted by Dabur for its personal care brand Dabur Vatika. The caselet follows the meticulous brand building initiatives taken by the company, from the launch of Dabur Vatika in 1995 to it becoming a Rs 1 bn brand by 2003. The caselet also examines the objectives and elements that were involved in Vatika’s brand building exercise. Marketing strategies

» Brand management strategies » Product differentiation » Packaging as a marketing communication tool » Importance of choosing the right celebrity and its influence on the brand equity » Brand extensions and communication strategy Until the early 1990s, Dabur, the 100-year old ayurvedic products manufacturer, was looked upon as a rather staid company that marketed herbal and ayurvedic products. Dabur Vatika in 1995 brought about a sea change in that perception. Within six years of its launch, Vatika had become the market leader in the value-added hair oils segment. Its success pushed Dabur into the league of top FMCG product companies in India. Dabur Vatika’s success can be attributed to the company’s differentiated product offering and meticulous brand building initiatives. The company concentrated on differentiating the brand in all aspects, right from positioning to packaging. At the time of its launch, Dabur positioned Vatika as value-added hair oil that contained pure coconut oil enriched with natural ingredients such as henna, amla (gooseberry), and lemon. Till then, the hair oil market had been dominated by plain coconut oil

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brands

1.

with

Marico’s

flagship

brand,

Parachute,

being

the

market

leader.

Dabur Vatika, one of the youngest brands in the country (launched in 1995), has become a leading brand in the natural personal care product segment. What were the factors that enabled Vatika to become a flagship brand of Dabur in such a short span of time?

2.

Marketing communications play an important role in building brands. Discuss the role played by marketing communications in making Dabur Vatika a successful brand.

Chyawanprash The leader in the chyawanprash market in India, Dabur Chyawanprash is one of the most well known Ayurvedic product in India and abroad. An effective herbal immunomodulator, Dabur Chyawanprash has the essential goodness of amla and over 50 other herbs. Dabur has conducted several clinical trials on this product which confirm its efficacy as a unique product that strengthens the body from within.

Digestives Hajmola Tablets Hajmola Tablets are the first classical Ayurvedic product to be branded and positioned as funfilled product with medicinal properties. It finds mention in Ayurvedic scriptures as Kshudhavardhak Bati, and was branded as Hajmola, a name derived from Hajma which means digestion in Urdu. It is available in regular and tamarind flavour.

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HajmolaCandy To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola Candy in 1989. Since then, the company has added Mango and tamarind flavours besides the regular one.

PudinHara One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid as well as capsule form. It has a special combination of mint oils and cures gastric problems without any side effects.

Hingoli Asafoetida or Hing is mentioned in Ayurveda as an effective aid in digestion, and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of asafoetida and other herbs.

Childcare Products

DaburLalTail The largest baby massage oil in India, it has the goodness of herbs which helps in strengthening the bones of infants.

DaburJanmaGhutti This Ayurvedic preparation helps in strengthening the digestive system of new borns.

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FAMILYCARE PRODUCTS The largest division in terms of sales, the Family Products Division of Dabur has in its portfolio hair care and skin care products, oral care and select foods like honey.

Hair & Skin Care Dabur is the leader in hair care products in India, and has covered almost all the categories of hair oils. Dabur Amla Hair Oil As a brand has made its mark beyond India and is a leading hair oil brand in middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brand.

Dabur Special Hair Oil It is light hair oil that combines the natural hair care properties of lemon and hibiscus.

Vatika The fastest growing hair oil brand of India, Vatika has single handedly created an altogeth...