Re Positioning at Dabur
Re Positioning at Dabur
Re Positioning at Dabur
Submitted for the partial fulfillment of the Fourth Semester project training For The Degree of Master in Business Administration 2008-2010
[email protected]
CONDUCTED BY DEPARTMENT OF BUSINESS ADMINISTRATION MANAV RACHANA COLLEGE OF ENNGINEERING FARIDABAD (HARYANA) PIN 1210021 APPROVED BY MAHARSHI DAYANAND UNIVERSITY, ROHTAK (HARYANA) A.I.C.T.E.
ACKNOWLEDGEMENT The project has been done on REPOSITIONING AT DABUR INDIA LTD. To understand the Repositioning pattern of Dabur and to develop & exchange new ideas that generates a new outlook in this perspective. Acknowledgment is not merely a formality. It is an expression of deep sense of gratitude and cumulative appreciation towards all the people who have directly and indirectly helped me to come up with this final project report. I am highly obliged to the valuable guidance of my faculty guide Ms. Yogita Sharma who had helped me in the preparation of this whole project. On the spur of the moment however, I pay my heartiest gratitude to all my faculty members for having shared their precious time for me to prosecute this project work as part of my management traineeship program. So I am heartily obliged to all these persons who gave me their precious time & made available useful data, guideline & direction at the right time to complete this study on the Repositioning At Dabur
Preface
This study on Repositioning At Dabur is intended to understand the awareness among the Consumers regarding the Dabur products and services. It is a nature of all human beings that they want unlimited variety in all the fields either in products or in requirements. All businesses are engaged in this field to fulfill the requirements of its consumers. So this project focuses on several key points such as how to analyze the market competitors, how an organization can create awareness regarding the products among the consumers, how to develop strategies to increase the sales, and, how to manage & handle the consumers considering their requirement & demands and thus formulate effective marketing programs. The study also delights the position of its products in the market not only in India but also in other part of foreign markets. In the present scenario & in the age of industrial revolution it is rightly said that the consumer is the king.
Dedication This Project Report is dedicated to my parents & uncle who have always helped me and recognized my efforts with love and appreciation .I owe to them a deep sense of gratitude and respect and without whom this endeavor would have been fruitless .Last but not the least to all those persons of my yester-years who have shaped my personality and confidence to carry the project successfully.
CCD, dealing with FMCG Products relating to Personal Care and Health Care. Leading brands. Dabur - The Health Care Brand Vatika-Personal Care Brand Anmol- Value for Money Brand Hajmola- Tasty Digestive Bran and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100 crore turnover each ,Vatika Hair Oil & Shampoo the high growth brand Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Leader in herbal digestive with 90% market share Hajmola tablets in command with 75% market share of digestive tablets category Dabur Lal Tail tops baby massage oil market with 35% of total share d. CHD (Consumer Health Division), dealing with classical Ayurvedic medicines Has more than 250 products sold through prescriptions as well as over the counter. Dabur (Consolidated) net profit up 46.5 per cent, turnover up 24.3 per cent during nine-month period Board approves merger of Balsara subsidiaries in Dabur India as part of integration The Board of Dabur India Limited met here today to consider the un-audited financial results of the company for the quarter and nine month period ended December 31, 2005. The Board also considered the
merger of Balsara in Dabur India, as part its integration, in its meeting today. Financials
Balsara Merger
The Board also approved the merger of three Balsara companies Besta Cosmetics, Balsara Hygiene Products and Balsara Home Products into Dabur India. While the legal formalities for the merger are expected to be completed by September this year the merger would be effective from April 1, 2006. Dabur India, last year, had acquired the entire promoter stake in three Balsara companies - 99.4 per cent in Balsara Hygiene Products; 100 per cent in Balsara Home Products; and 97.9 per cent of the shareholding in Besta Cosmetics Limited for Rs 140 crore and these companies were absorbed as subsidiaries in Dabur India as part of integration. The operations of these entities have already been integrated with DIL but to derive further benefit of the acquisition by way of a more efficient corporate structure, it has now decided to legally integrate the Balsara entities with Dabur India said P D Narang, Group Director, Dabur India. With this decision to merge, all Balsara brands - like Promise, Babool, & Meswak in Oral Care; Odomos in mosquito repellents; Odonil, Odopic in Household products - its offices and manufacturing facilities in Silvasa, Kanpur, Baddi will now be rolled into Dabur India.
The company goes through this strategic intent for individual branding 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.
2.To understand the strategies adopted by the company to change its core platform.
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 Provide superior returns, relative to our peer group, to our shareholders.
3.To understand how confusion about a brand sets in the mind of consumer because of the same brand name for diversification into different areas.
Be responsible citizens with a commitment to environmental protection Consumer Focus: We have superior understanding of consumer needs and develop products to fulfill them better.
1. The study only focuses on the repositioning strategies of dabur 2. It has been done only on the few Research methods for instance :Universe and survey population and Profile of the company etc. 3. The project has been done in short period of time i.e why there is only a brief, further aspects like Sales promotion, Advertising etc could not be study and analysis has been done about Consumer Behavior. 4. Some limitations are also attributed to the lack of cooperation from some consumers included because of time factor.
Scope
This Project has a great scope of providing a comprehensive exposure pertaining to Repositioning the brand & related strategies being adopted by a company. In todays world of globalization where corporations are thinking beyond domestic boundaries, this project makes an effort to understand the need & relevance of International Markets and proclamation of a brand, which offers a product portfolio of global competence
Significance
- It studies the companys operations and its expertise in the
Industry
- The study also explains that what types of products and services
provided by the dabur.
Research Methodology
Research methodology adopted lays the foundation ,build database & furnish information for analysis in order to accomplish to objectives of the research. The methodology adopts involves various section as follows. a. b. c. d. e. Universe & survey population Profile of the Organization. Sampling design. Data collection & its methods. Tabulation & Analysis.
Dabur India Ltd. The groups Principal activity is to manufacture health care , personal care and food products. The group operates in three major segment s: FMCG, fod and other products include heath supplement , digestive , baby care , here care , skin care and oral care products. The major brand of the group includes Dabur, Vatika, Hajmola, Anmol and real. On 01-Apr-2005, the group acquired Balsara Home Products Limited.
Sampling design
Sampling design is an important part of research methodology. Here the study was conducted at different locality in the market regarding the product of Dabur. Keeping in mind the size of universe & the constraints of time a sample was selected from the universe.
Surveys
Survey is most commonly used for primary data collection in marketing research. This is widely used because of its extreme flexibility. Surveys research is the systematic gathering of data from respondents through questionnaires and schedule survey can be under 3 different ways: 1. 2. Personal Interview. Mail Questionnaires . Here I have selected Personal Interview for my survey in Dabur. I am using schedule for Personal interview. An interview schedule is technically a list of questions that will be asked to respondent in person by interview schedule will contain definite questions to be asked, but the interviewer may be allowed to reward or rearrange the questions according to situation.
Sample size:
I have taken 200 consumers i.e. (Random survey), 10 institutions and 20 Hotels in Gaya city.
Data Collection
There are two types of data were collected: 1 Primary data. 2 Secondary data. Primary data were collected through structured of questionnaires by concerning the people (customer). And primary data were also collected by the trend of shopkeepers those who sale its product. Secondary data were collected from internal records & employees of the organization.
ORGANILAIONAL
SET-UP
. The organization has chairman who is associated by the Board of Directors. The organization is headed managing director next after the General Manager. There are six major departments & these are. Personnel, Production. Procurement, Production & Marketing. Finance, Marketing, Purchase, Procurement &
Product profile
Dabur has the different segment of products
Dabur Health Care Product Range. Dabur's Health Care range brings for you a wide selection of herbal products, to provide complete care for varying individual needs. We derive our products from the time-tested heritage of Ayurveda, backed by the most modern scientific test and trials.
Healt suppliment
1)Dabur Chyawanprash
2) Dabur Chyawanshakti 3)Glucose D-[Baby Care] 4) Dabur Lal tail 5)Dabur Baby olive oil 6)Dabur Janma Ghunti
Personal Care
Dabur presents its range of herbal personal care products, created to make you look and feel good deep down. Bringing together the gentle touch of nature and Ayurvedas wisdom. Backed by the unfailing quality of Dabur Products. For nearly a 100 years, Dabur has specialised in developing and producing herbal Ayurvedic formulations. Today Dabur's Ayurvedic Specialities has over 260 medicines for treating a range of ailments and body conditions - from common cold to chronic paralysis. This range is handled by Dabur Ayurvedic Specialties Limited division, which constitutes 8% in Dabur's total revenue of Rs.1536.95 crore
Competitors
There are few competitors of dabur in the market place in domestic and as well as foreign market like: -HLL (Hundustan Liver Limited), Procter & gamble, Amway, and oriflamme etc . But despite of these competitors the company has good market shares, and it is growing by leaps and bound in other corner of the world ( in global ) market , because it has large product segments and good marketing channels to distribute the products and it services not only in urban but also in rural areas. Its products are affordable by any earning group of consumers .
Consumer Survey
The main objectives behind the consumer contact are to understand awareness, to inform and to provide the education to consumers regarding the products and services. The consumers were contacted to estimate the number of consumers who might be interested in purchasing the milk and other products. The marketing department of the dairy has found that consumer contact is the main strategy adopted to understand consumers awareness and consumption level of consumers in a given market.
Black Market
Instead of delivering the products to regular customer the retailers used to sell the products to others at a higher price. This practice became more common when the demand for products rises. Owing to all the above mentioned problems raised by consumers there was increasing demand from the consumers side for an efficient Home delivery system. Therefore some strategies for the modified HDS. needed to be formulated keeping consumers satisfaction at the forefront.
Way to reduce the Black Marketing & create the awareness among consumers
1. 2. 3. suggestions. 4. 5. 6. 7. Check out the demand & requirement of market & as well as consumers. By providing proper education to the retailer, dealers & consumer regarding the milk & other products. Maintain full stock to the retailer of the products. Keep an attention on Consumers preferences about the areas where the milk and products are purchase & sold at low or high demand. Consumers should be contacted from time to time. Investigating that the retailers duties are carried out in a Listening to the consumers and implementing their
constructive manner.
5.Providing Templates. 6 Electronic Media advertisement etc. The dairy has adopted almost all these activities, which directly or
indirectly or by other means are helping to increase the sales of DABURs products. Advertising and publicity have simulated consumers purchasing capacity and dealers effectiveness.
Inconsistent quality of products. Frequent price revision. Some of its products are costly than other companys
3. products.
Issues:
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
Key words:
Dabur, Vatika, Value-Added Hair Oils Segment, Brand Building, Packaging, Positioning, Premium Pricing Parachute, Marico, All Clear, Head and Shoulders, Anti-dandruff shampoo and IRS Household Data.
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.
Dabur to join shampoo price wars To launch onerupee sachet to drive volumes.
HE Rs 1,100-crore shampoo market is again in a churn. Nearly four months after the first price cuts were announced by Hindustan Lever and Procter & Gamble, Dabur India Ltd has decided to cut Vatika shampoo prices by 20 per cent from next month besides launching the brand in one-rupee sachets to gain volumes. Not to be left behind, LG Care has unveiled smaller SKUs (stock keeping units) beginning with the 60 ml pack size priced at Rs 39. The company has also indicated that it will introduce shampoo in sachets over the next few months.
P&G has taken the celebrity endorsement route by signing on Bollywood actress Preity Zinta to endorse `Head & Shoulders'. Asked whether the decision to slash prices of Vatika shampoo has been taken in response to competitive pressures, the CEO of Dabur India Ltd, Mr Sunil Duggal, told Business Line: "The decision to cut prices was carefully planned, taking into account the competitive landscape, product costing and our own brand strategy". He said after prices are reduced next month, 100 ml Vatika at Rs 38 would be comparable to the same pack size for HLL's Sunsilk. On why the company has decided to enter the one-rupee sachet segment, he said this was being done to gain deeper penetration in rural markets. "We expect volumes to double in the rural market.'' The company is eyeing 20 per cent volume growth due to the price correction even when it has decided against any price correction in the Anmol shampoo brand. LG Care's Associate Vice-President (Marketing and Sales Planning), Mr K.V. Augustine, said the company will review its pricing initiatives in the next three months. "However, we will continue to introduce smaller SKUs in different products to gain volumes and initiate trials. We are also working on launching shampoo sachets." Ruling out any further price corrections, analyst with SSKI Securities, Mr Nikhil Vora said despite price cuts shampoos are unlikely to witness any significant value growth over the next few quarters. "Already, there is a mismatch between volume and value growth. HLL witnessed volume growth of 40 per cent in the quarter ended June 2004 but value growth was a mere 2 per cent. Dabur's price initiative is clearly a reaction since it failed to gain incremental market share," he said.
An HLL spokesperson said the cornerstones of its pricing strategy have been bottle price reduction, value improvement of sachets and driving new price points. He said the company's value market share fell to 49.4 per cent in the last quarter from 51.3 per cent in the March quarter because of pricing decisions. Clearly, companies are looking at sustained volume growth at the cost of value in the long run in shampoos.
While Perfetti Van Melle, Joyco and Nestle have a comprehensive basket of confectionery brands, HLL muscled its way into this market two years ago, with the introduction of Max hard-boiled candy. ITC's confectionery portfolio includes the brands Candyman, and Minto which it had acquired from Candico. Hajmola is a core brand under Dabur India's health-care segment, and occupies three-fourths share of the digestive tablets segment. Hajmola candy, on the other hand, has a market share of about nine per cent share of the Rs 350-crore hard-boiled candy market. While the original Hajmola tablet is about three decades old, the brand was introduced in candy format in single-unit pillow packs in 1989. The brand was extended to other candy variants subsequently. While the candy format is targeted at kids, the digestive tablets address all age groups. Hajmola is among Dabur India's top performing five brands, the others being Chyawanprash, Dabur Amla hair oil, Vatika and Lal Dant Manjan. The domestic confectionery market is loosely divided into seven categories - hard boiled candies, toffees, eclairs, chewing gum, bubble gum, mints and lozenges. Hard-boiled candies occupy the largest share of this market.
MATERIAL MANAGEMENT
INTRODUCTION:
Material may be though of as an interrogated functioning of the different sections of the company dealing with the supply of the material and other related activities so as to obtain maximum co-ordination and optimum expenditure on materials. Material management involves controlling the type, amount, location, environment, timing purchase of various materials etc. used in industrial concerned.
OBJECTIVE :
The main objectives of purchase department are : 1. 2. 3. 4. To procure raw material. To procure material in right quality and quantity. To procure from right and reliable sources of vendors. To procure economically, i.e. at right and reasonable price.
5.
Findings
During Survey I have been found out the following aspects:_
1. 2. 3. 4. Everyone wants to consume pure, fresh and good Leakage is the major problem in selling activities for In the time of survey mostly people gave positive response regarding its quality. Mostly literate people prefer to take the Daburs products due to its purity, perfectness in quantity & quality. 5. Middle & Low-income group of people also give the preference for Dabur in the comparison with other brands/alternatives because of its good qulaity. 6. people . 7. 8. In winter seasons chaywanprash is more proffered than other brands (mainly the competition is from Baidhnath. It has also found that most of the customers show their concern for a reliable Home delivery (door to door) service that is presently not available. 10. Despite the people have other sources & availability of others brands of products, they also prefer daburs products, because of these reasons:Availability of products especially in urban areas In summer season glucose-D is more proffered by the hygienic products, in both perfect quality & quantity. the retailers..
12. have
During the survey it has been that the all level of people want to a deep knowledge regarding the its related products.
13.
Regarding the retailing the liquid product like oil , the retailer has
to say that there is leakage problem in the milk packaging .Due to this problem the retailers have to suffer losses in selling these products. Regarding the other product the retailer has to say that the products are being more exploring. Then the problem of product availability can also be removed. The company collects data regarding the consumer perception by using the sample survey, consumer meetings, methods of questionnaire etc. The company is also trying to open the outlets where there is lack of these types of products and people have the need of these products. The company also provide the education to its workers regarding the manufacturing & selling the products for this it organizes the seminars for its retailers, distributors and the consumers from time to time.
SWOT ANALYSIS:Strength :DABUR India Ltd (DIL) is exploring the possibility of a foray into the Rs 4,000-crore soap market, probably under brand name Vatika DIL's International Business Division is already manufacturing toilet soaps at Dubai for exporting to several neighbouring countries The overall size of the Indian market for oncology formulations is estimated to be Rs 225 crore with Dabur Pharma garnering a 20 per cent share. It has large marketing areas for selling products. The company has a good market share in comparison with other manufacturing company. Dabur sold the products in 2005 Sales: 13,572,000,000 Provide our consumers with innovative products within easy reach
Weaknesses :The company still using the old system in selling the products in the foreign market.
There are many competitors using the new ideas in positioning of their products in the market place in India. In rural area the all products are not available to the retailer because of low demand of products. The all products of Dabur is not known by the buyers specially in pharmaceutical products in comparison to its other competitor. There are low range of products in pharmaceutical .
Opportunities for the company:There is a big opportunity for the company that they can sale their products in rural area or In others areas where there is no milk manufacturing company.
There is big demand of its medical line products in domestic and as well as foreign market. where there is lack of milk resources. It can have a good market share within a few years because it is growing by leaps and bounds ,and it has good approval from its external environment. It has bright future in next few years because of it expanding the product range . The sources said several issues in DIL's possible foray into soaps remain to be sorted out.
Threats of company:There are many more foreign competitors are coming in Indian market , that will create the problem for Dabur. Du to this reason the Dabur may decrease its market share in both foreign and as well as domestic market.
Competitors:In organized sectors , there is manly one competitors of Dabur India Ltd. Like:- HLL which can compete it . because they have also a big product line like:- in health care , personal care etc. and all these products are available approximately on same prices. Procter and gamble in liquid product portfolio . In unorganized sectors there are many firms manly in the domestic market they are indulged in manufacturing of same products and on same price and in same quantity also and are trying to spread their business in same field of industry.. There is a threat from
Recommendations
Since todays life of human being is known to be very hectic and full of mental regiment (disease) due to increasing of carbondyoxide in the present environment and because of increasing the population as well as pollution. So in this scenario the human beings need more purity, protein and power think over the problem therefore they wants a healthy mind for healthy & strong decisions, i.e. why The DABUR is providing the best products in the market in the field of , Health Care , Aurbedhya Medicines and other FMCG product . Therefore the literate people prefer to take Dabur Products because they know that what they are getting by purchasing the products in comparison to others and what they want. Its products is perfect for all segments of consumers. Therefore it is favorable among all groups of people H.I.G, M.I.G, L.I.G. Proper placement of hoarding in different localities in urban and as well as rural areas. The Dabur is working not only in Indian market but also in the foreign market area. It covers large product segment of products. Through separate distribution of channels of FMCG and other Pharmaceutical products. It has good manufacturing techniques and marketing channels to distribute the products and services. It gives full attention for the consumer requirement and demands at right time, right place. And literate consumers fully support the products and they appreciate for its better services and products. And at last it has been found from internal sectors of the company that it recognizes the value, believes and perception of its consumer. It surveys the people in better way what they demand. The company is spreading it self-all over the world by merging to other foreign partners. It has good management and working culture in the internal sector of the company.
It also has a god relation with the out side of the organization.
A. Post-1998, the Burman family has receded from the day-to-day operations of the Company. They have reduced their strength on the 10-member Board of Directors to 4 members and only provide broad policy guidelines for growth and diversification. Q.What is the mailing address and phone numbers of Daburs headquarters? A. Dabur India Limited Kaushambi, Sahibabad Ghaziabad, UP India - 201010 Phone: +91 (0120) 3982000 (30 Lines), +91 (0120) 3001000 (30 Lines) Q. What are the main product categories of Dabur? A. Daburs products are available in the categories of Personal Care, Health Care, Ayurvedic Specialities and Food products. For a complete listing of products under these categories, go to our Products page. Q. How many group companies does Dabur have? A. Dabur India Limited has 5 subsidiaries Dabur Foods, Dabur Oncology, Dabur Nepal, Dabur Pharma, Dabur Egypt and Dabur Balsara. For details on each of the companies, click on the links on our homepage.
Q. How does Dabur position itself? A. Dabur India Limited is one of the leading consumer goods company of India with interests in healthcare, personal care and foods. We work in active collaboration with nature to provide the best of herbal health and personal care products to its consumers. Q. What is Daburs status in the consumer goods market? A. Dabur is currently the 4th largest company in the Indian consumer goods market. In several categories, our brands like Chyawanprash, Real Juices, Dabur Amla Hair Oil, Hajmola, Dabur Honey, Hommade Pastes are market leaders.
Q. In how many countries does Dabur have its distribution network and offices?
A. Dabur has a distribution network spread across 5 continents and over 50 countries with offices in Europe, America and Africa and production units in Nepal, Egypt, UK and the UAE. Q. Where can I get a copy of the Company Annual Report? A. You can download a copy of our latest Annual Report from this site Q. What are Daburs environmental concerns? A. Dabur derives its unique position of strength from nature and therefore appreciates the need for conservation. We have initiated the Plants for Life Project in the Himalayas for eco-regeneration and cultivation of rare medicinal herbs and plants. Under this project state-ofthe-art greenhouse and nurseries have been set up. And farmers are provided the saplings as well as technology to undertake contract cultivation of endangered plant species. Q.How does Dabur implement its social commitments? A. At Dabur we fulfill our social commitments through the activities of Sundesh, a non-profit organisation, the Chunnilal Medical Trust for medical camps and the Plants for Life programme for schoolchildren. Click here for details. Q.What are the major areas of research undertaken by Dabur? A. Daburs research initiatives are implemented by the Dabur Research Foundation. The main areas of research are - Testing and trial of products - Product development for new herbal health and personal care products
- Development of new chemical entities and formulations - New initiatives in Phytopharmaceuticals - Active Pharmaceutical Ingredients - Developing new products and improvements in Foods - Scientific validation of the traditional knowledge of herbs Q.Who do I contact at Dabur for a business proposal? A. Various divisions handle different business proposals. Please click here to send in your request.
Q. In what manner and which areas of operation does Dabur support non-profit organisations?
A. Dabur participates in various presentations organized by NGOs from time to time. Q. If I have a product idea, whom should I go to in Dabur? A. You can send in your email at [email protected]
Q. Is it possible to order your products for doorstep delivery?
A. Dabur does not have the provision for doorstep delivery. However, you may contact your closest distributor or retailer to place your requirements.
Q. Whom should I contact for a product-related query or feedback?
A. You can go to our Write to Us section for all queries and feedback.
References
Companys Manuals Companys Website Marketing Management by Phillip Kotler Global Marketing Management by Warren.J.Keegan Internet findings
Marketing strategy & plans Marketing management Marketing & Research Consumer Behavior & Building marketing strategy -
David L, Luck & Co. Ferrd. G.Rama Swamy. M.M.Verma. Hawkins, Best, Coney.