Dissertation Report On ‘Marketing strategy of Dabur Vatika Hair Oil & Dabur Chyawanprash’
Under the Guidance of Prof. Bikram K Dutta & Prof. Sartaj Khera
Submitted by: Saurabh Kumar Roll no. 20080276 ______________________________________________________ Sri Sharada Institute of Indian Management - Research Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, Vasant Kunj, New Delhi – 110070
Tel.: 2612409090 / 91; Fax: 26124092 E-mail:
[email protected]; Website: www.srisim.org
DISSERTATION PROJECT Marketing Mix for Dabur Vatika Hair Oil and Dabur Chyawanprash
2
Acknowledgement “Words
often fail to express one’s feelings of
gratitude and indebtedness to one’s benefactors, but then it is the only readily available medium through which the undersigned can express their sincere thanks to all those who are associated with the work in one way or another.” A project can never exist and thrive in solitude. Project work is never the work of an individual. It is more
a
combination
of
use,
suggestion
and
contributions and work involving many individuals. This project also bears the impact of many people. Thus, one of the most pleasant parts of writing this report is the opportunity to thank all those who have been active part in it. I am thankful to PROF. BIKRAM DUTTA for his vital inputs and valuable suggestions and continuous guidance, which have gone a long way in providing necessary impetus to our efforts in consummating this report. I am thankful to our professors from Marketing department for their vital inputs regarding the project work. I am also thankful to friends who 3
helped me in understanding of the topic given in an easier way.
Saurabh Kumar
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 4
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
5
EXECUTIVE SUMMARY This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil and Dabur Chyawanprash 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. 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. Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyze the marketing mix of Dabur Vatika Hair Oil and Dabur Chyawanprash. The report also enlists various recommendations based on BCG Growth Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT Analysis etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles.
6
OBJECTIVE OF THE STUDY Following are the major objective of study:1. To study the impact of Budget Policies on Marketing Strategy of Dabur Foods. 2. To study the Consumer, Buying behavior. 3. To study the problems faced by Dabur. IMPORTANCE OF THE STUDY Being student of MBA it is very essential for me to have a practical knowledge in an organisation. Only to study business administration course knowledge is not the solution of the problems, which arise in practical field.
There is a certain formula for any
particular problem, but the aim of this study is to develop the ability of decision making. A right decision at right time and right place itself helps an organisation to run smoothly. 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 making activities give much importance to the study. Only in two month training it was not possible to understand it so deeply, but an overall idea could be developed.
7
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. According to a study by the McKinsey Global Institute (MGI), 'Bird of Gold': The Rise of India's Consumer Market, Indian incomes are likely to grow three-fold over the next two decades and India will become the world's fifth largest consumer market by 2025, moving up from its 2007 position as the world's 12th largest consumer market. India ranks second in the Nielsen Global Consumer Confidence survey released on January 7, 2010—an indication that recovery from the economic downturn is faster in India with consumers more willing to spend. The survey showed that in addition to the emerging markets of Indonesia and India, eight of the top ten most confident markets in The fourth quarter of 2009 came from the Asia Pacific region. The FMCG market is set to treble from US$ 13.1 billion in 2009 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 foodprocessing industry.
8
According to a FICCI-Technopak report, despite the economic slowdown, India's fast moving consumer goods (FMCG) sector is poised to reach US$ 43 billion by 2013 and US$ 74 billion by 2018. The report states that implementation of the proposed Goods and Services Tax (GST) and the opening of Foreign Direct Investment (FDI) are expected to fuel growth further and raise the industry's size to US$ 47 billion by 2013 and US$ 95 billion by 2018. The Ministry of Food Processing Industries is also planning to double the market size of the food processing industry to US$ 165.1 billion by 2009-10 and trebling it to US$ 271.8 billion by 2014-15.Demand for personal care products such as shampoos, toothpastes and hair-oils grew faster in rural areas than urban areas during AprilSeptember 2009, a period that includes the peak monsoon months, as per the numbers released by market researcher AC Nielsen. As socio-economic changes sweep across India, the country is witnessing the creation of many new markets and a further expansion of the existing ones. According to Pradeep Kashyap, chief executive officer of MART Rural Solutions, speaking at the Calcutta Management Association Rural Marketing Meet, over 300 million people would move up from the category of rural poor to rural lower middle class between 2005 and 2025 and rural consumption levels are expected to rise to current urban levels by 2017.
9
RESEARCH METHODOLOGY As the purpose of the project report is to analyses the consumable products successfully launched in the last three years. 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. It was handed personally by me to the respondents to be analyzed. The questionnaire method was useda)
To get first and relevant and unbiased information
b)
Questionnaire provides versatility and solutions can be obtained by just asking the questions.
c)
Questioning is usually faster and cheaper.
d)
Moreover, there is more control over data gathering activities.
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, newspapers, journals, brochures and also through the internet. For secondary sources no field work was employed. In order to amplify the empirical findings from primary and secondary sources, a survey was conducted both of consumers and retailers Distributor & Wholesalers in order to gauge the market opinion. The questionnaire was of multiple choices and the pattern of questions was as simple as possible. With every question, multiple choices were given and respondents were asked to select one of them. The questionnaire technique was structured and not disguised as the questions followed one pattern and reason behind the questionnaire was stated properly. All the questions were directly related to the subject.
10
For Dabur Chyawanprash and Vatika hair oil. 1.
Sample size for customers were 100 in number and the universe comprised of all the consumers within the geographical region of Delhi.
2.
Sample size for retailers were 20 in number and the universe comprised of all the consumers within the geographical region or Delhi.
3)
Sample size for Distributor & Wholesaler were four in number & the universe comprised of all the consumers within the geographical region of Delhi.
No other field work was employed to gather the information. The questionnaires were distributed to the respondents and the data was collected through primary and secondary sources. The statistical technique such a Pi-chart and percentages were used in analyzing and interpreting the data. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset.
11
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’s 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.
12
FINANCIAL REPORT Balance sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus
86.51 651.69
86.40 441.92
86.29 316.90
57.33 390.54
28.64 309.43
8.26 130.72 877.17
16.45 0.24 545.01
19.28 0.26 422.73
19.23 1.25 468.35
15.70 32.77 386.54
518.77 210.45 308.32 51.71 232.05
467.93 189.77 278.17 16.26 270.37
404.30 168.97 235.33 3.71 145.35
328.23 142.46 185.77 13.07 275.08
317.46 135.12 182.35 9.26 270.94
973.42 696.97 276.45 8.64 877.17
576.82 610.57 -33.75 13.95 545.01
397.78 379.27 18.52 19.82 422.73
285.68 324.12 -38.44 32.87 468.35
253.35 335.16 -81.81 5.81 386.54
319.12 118.48 174.15 8650.76
67.99 205.19 171.24 8640.23
65.99 80.82 153.25 8628.84
234.43 43.43 190.02 5733.03
227.12 46.18 175.62 2864.20
Loan funds Secured loans Unsecured loans Total
Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments
Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total
Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (lacs)
Report title: Dabur India Limited - Financial Analysis Review 13
from Global Markets Direct - Company Reports 16 page report published Sep 15, 2009 Dabur India Limited Financial Analysis ReviewSummaryDabur India Limited (Dabur) is a consumer care and health care products company. Product portfolio offered by the company includes personal care products, health care products, home care products and foods. Dabur also offers ayurveda-based healthcare products. It markets its products in India as well as in International markets as Middle East, South-East Asia, Africa, the European Union and America. Global Market Directs Financial Analysis Review is an essential source for data, analysis and insight into Dabur India Limited . It examines the companys business structure and operations, products and services. The report provides information regarding key data, details on key executives and the major locations and subsidiaries of the company. It also provides key financial ratios for the company.Scope The report includes key company information such as business description, products and services, and key suppliers and competitors. It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. Ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.Reasons to buy A quick one-stop-shop to understand the company. Get an in depth understanding of companys recent and historical financial performance. Get the latest metrics on companys performance. Support sales activities by understanding your customers businesses better Qualify prospective partners and suppliers. Understand and respond to your competitors business structure, strategy and prospects. Source: Global Markets Direct
COMPANY HISTORY 14
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 15
•
Babool Toothpaste
•
Dabur Lal Dant Manjan
•
Dabur Binaca Toothbrush
Skin Care •
Gulabari
•
Vatika Fairness Face Pack
16
SWOT ANALYSIS OF DABUR
STRENGTHS •
WEAKNESS
Strong presence in well defined niches(
•
like value added Hair Oil and Ayurveda
Seasonal Demand( like chyawanprash in winter and Vatika not in winter)
•
Low Penetration(Chyawanprash)
•
High price(Vatika)
competitive advantage
•
Limited differentiation (Vatika)
•
Strong Brand Image
•
Unbranded players account for the 2/3rd
•
Product Development Strength
•
Strong Distribution Network
•
Extensive Supply Chain
•
IT Initiatives
•
R & D – a key strength
specialties) •
Core
knowledge
of
Ayurveda
as
of the total market(Vatika)
OPPORTUNITIES
THREATS
•
Untapped Market(Chyawanprash)
•
Market Development
baidyanath
•
Export opportunities.
Chyawanprash and Marico,Keo Karpin,
•
Innovation
HLL and Bajaj for Vatika Hair Oil)
•
Increasing income level of the middle
•
New Entrants
class
•
Threat
•
Creating
additional
•
consumption
pattern
17
Existing Competition( like Himani, and Zandu
from
for Dabur
substitutes
Bryllcream for Vatika hair oil)
(like
OVERVIEW OF 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 home-made 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%. 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.
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 2009, 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 18
are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the coconut hair oil category. 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 upmarket 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.
MARKETING MIX OF VATIKA HAIR OIL 19
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
•
•
•
Channels
Promotion
•
Location
•
Public Relations
•
Inventory
Schemes
•
Sponsorships
Credit Terms
•
Internet Marketing
Names •
Advertising
Place
Services
20
&
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, dugdha 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 green-and-white colours, 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.
21
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 Dabur’s in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards. PRICE: In the traditional coconut hair oil category, which presumably had price sensitive consumers, Vatika Hair Oil with its value added proposition – henna, amla and lemon in a pure coconut oil – broke this myth when it launched at almost a 100% premium to the market leader; even with such a pricing strategy it was able to garner a significant share from the leader in the very first year of its launch.
The table above shows that Dabur Vatika is one of the highest priced of hair oils since it targets the higher income class and also that the prices have remain
unchanged since 1999.
22
PRICE/QUALITY MATRIX Price→ Quality
High
Middle
Low
Luxury Segment
Ideal For Penetration
Premiere
↓
High
Offering
VATIKA Overpriced
Average
Real Bargain
Unhappy Customers
Cheap Goods
Middle
Make Low
The
Sale
and Run
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 entirecountry through a wide marketing network.
Dabur’s distribution network extends beyond India in the following countries as well:
23
Distribution Network •
Central, North & South America
•
Australia
•
Asia
•
Middle East
24
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 Oil’s 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.
25
COMPETITOR ANALYSIS The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's domestic market. Dabur is one of India's largest players in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%. We have tried to analyse the competition for Dabur in the Hair Care segment as follows:
Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant presence in eastern and western India. Its share is 6% of the total hair oil market. Emami has existence in hair oil market through Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj has two flagship oil brands - Bajaj Brahmi Amla and Bajaj Almond Drops — currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail 26
presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Overall it has a market share of 4% in hair oil market. Marico’s Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute's primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3% share in hair oil market. CONSUMER QUESTIONAIRRE- DABUR VATIKA HAIR OIL Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for hair oil. Any information provided by you will strictly be used for Academic Purpose. 1. Which brands of hair oil are you aware of? •
Parachute
•
Keo Karpin
•
Nihar
•
Hair And Care
•
Dabur Vatika
2. Which brand of Hair Oil do you use? •
Parachute
•
Keo Karpin
•
Nihar
•
Hair And Care
•
Dabur Vatika 27
3. Where would you rate your brand on a scale of 1 – 5 (5 being highest)? •
1
•
2
•
3
•
4
•
5
4. What are the primary reasons for which you use this particular brand? •
Non sticky
•
Brand Loyalty
•
Fragrance
•
Price
5. How did you get to hear about this brand?
6.
•
TV
•
Internet
•
Word of Mouth
•
Print
If your brand is not available you would..? •
Purchase another brand
•
Wait for it to be available
•
Go for a substitute
•
Buy what is offered by the retailer
7. Which pack size do you prefer? •
75 ml
•
150 ml
•
300 ml 28
8. On what parameters do you choose this pack size? •
Availability
•
Price
•
Family size
•
Storage
9. How often do you buy? •
Once in 15 days
•
Once a month
•
Once in two months
10. Are you satisfied with your brand? •
Yes
•
No
Personal Information:Age: Location: Income (per month): (1) Rs. 1,000 – Rs. 10,000
(2) Rs. 10,000 – Rs. 30,000
(3) Rs. 30,000 – Rs. 50,000 (4) Above Rs. 50,000
29
CUSTOMER SURVEY RESULTS DABUR VATIKA AWARNESS LEVEL 100 80 60 40
PERCENTAGE
20 0
PARACHUTE
NIHAR
DABUR VATIKA
PREFERRED BRAND 40 35 30 25 20 15 10 5 0
PERCENTAGE
PARACHUTE
NIHAR
VATIKA
SATISFACTIONLEVEL 4 3.5 3 2.5 2 1.5 1 0.5 0
RATING(1-LOW 5-HIGH)
PARACHUTE
NIHAR
VATIKA
30
RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Hair Oil category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only. 1. Which brands of Hair Oil do you stock? •
Marico
•
HLL
•
Keo Karpin
•
Dabur Vatika
2. Out of these which are the most preferred? •
Marico
•
HLL
•
Keo Karpin
•
Dabur Vatika
3. According to you what are the reasons for customers’ preferences? •
Brand loyalty
•
Price
•
Availability
•
No reason
4. What is the profile of your typical consumer? •
High income
•
Middle income
•
Low income 31
5. What schemes are you offered by the companies? •
Price discounts
•
Buy one get one free
•
Others
6. What schemes does a consumer prefer most? •
Price discounts
•
Buy one get one free
•
Others
7. According to you, does in-store advertising have an affect on the consumers’ preference? •
Yes
•
No
8. Does a change in price affect their preferences? •
Yes
•
No
Personal Information:Location of store:
32
RETAIL SURVEY RESULTS DABUR VATIKA 1. Which brands of Hair Oil do you stock? 80 70 60 50 40 30
PERCENTAGE
20 10 0 marico
hll
karrpikeo karpin
vatika
2. Out of these which are the most preferred? 50 40 30 PERCENTAGE
20 10 0 marico
hll
karrpikeo karpin
vatika
3. According to you what are the reasons for customers’ preferences? 50 40 30 PERCENTAGE
20 10 0 brand loyalty
price
availability
no reason
33
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STP ANALYSIS OF DABUR CHYAWANPRASH
SEGMENTATION Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient. For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy. TARGETING Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids .This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle. Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads compliment each other and connect very well with the targeted consumers
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MARKETING MIX OF DABUR CHYAWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this 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 Dabur Chyawanprash. The mix shall be analyzed as followed: •
Product
•
Price
•
Place
•
Promotion Product •
Price
Promotion
Product
•
List Price
Variety
•
Discount
•
Quality
•
Financing
•
Design
•
Features
•
Brand
•
•
•
Channels
Promotion
•
Location
•
Public Relations
•
Inventory
Schemes
•
Sponsorships
Credit Terms
•
Internet Marketing
Names •
Advertising
Place
Services
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&
PRODUCT Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essentially a health supplement. Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immuno-stimulant. Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users. Ingredients of Dabur Chyawanprash •
Vishwast Amla,
Ashwagandha,
Hareetaki,
Dashmul,
Ghrit
health
beneficial
and
several
other herbs and herbal extracts. •
Special Vishwast
fortified
with
additional
herbs
Keshar, Akarkara etc. Packaging:
The figure above shows the evolution of the packaging of Dabur Chyawanprash.
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like
Advertisement showing Vivek Oberoi
A little boy suggests his brother to have Dabur To which the brother replies, Chyawanprash everyday.
“Mujhe iski kya zaroorat?
The boy asserts, “Zaroorat hai!” and starts running.
The big brother follows him but is unable to catch him using every way.
Running with super energy the boy dives into the river. ...the big brother also dives in Not to be left behind...
the river but ultimately stops
COMPETITOR ANALYSIS The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Himani, which together with Dabur have about 85% of India's domestic market. 38
Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows:
Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Its Chyawanprash has a market share of 10%. Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). The Emami Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products. Its market share is 12%.
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CONSUMER QUESTIONAIRRE-DABUR CHYAWANPRASH Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for chyawanprash. Any information provided by you will strictly be used for Academic Purpose. 1. Which brands of Chyawanprash are you aware of? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
2. Which brand of Chyawanprash do you use? •
Zandu
•
Himani
•
Baidyanath
•
Dabur
3. Where would you rate your brand on a scale of 1 – 5 (5 being highest)? •
1
•
2
•
3
•
4
•
5
4. What are the primary reasons for which you use this particular brand? •
Health
•
Brand Loyalty
•
Taste 40
•
Price
5. How did you get to hear about this brand? •
TV
•
Internet
•
Word of Mouth
•
Print
6. If your brand is not available you would..? •
Purchase another brand
•
Wait for it to be available
•
Go for a substitute
•
Buy what is offered by the retailer
7. Which pack size do you prefer? •
1 kg
•
500 gm
•
250 gm
8. On what parameters do you choose this pack size? •
Availability
•
Price
•
Family size
•
Storage
9. How often do you buy? •
Once a month
•
Once in two months
•
Once in six months
10. Are you satisfied with your brand? 41
•
Yes
•
No CUSTOMER SURVEY RESULTS DABUR CHYAWANPRASH
AWARNESS LEVEL 100 80 60 PERCENTAGE
40 20 0 ZANDU
HIMANI
BAIDYANATH
DABUR
PREFERRED BRAND 60 50 40 30
PERCENTAGE
20 10 0
ZANDU
HIMANI
BAIDYANATH
DABUR
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SATISFACTION LEVEL 5 4 3
RATING(1-LOW 5-HIGH)
2 1 0 ZANDU
HIM ANI
BAIDYANATH
DABUR
REASONS FOR SELECTING A PARTICULAR BRAND 70 60 50 40 30
PERCENTAGE
20 10 0
HEALTH
BRAND LOYALTY
TASTE
PRICE
HOW DID YOU COME TO KNOW ABOUT THIS BRAND? 80 70 60 50 40 30
PERCENTAGE
20 10 0
TV
INTERNET
WOM
PRINT
UNAVAILABILITY OF PREFERRED BRAND
43
40 35 30 25 20 15 10 5 0
PERCENTAGE
PURCHASE ANOTHER BRAND
WAIT
BUY WHATEVER SUBSTITUTE OFFERED BY RETAILER
RETAILER SURVEY RESULTS DABUR CHYAWANPRASH 1. Which brands of Chyawanprash do you stock? 100 80 60 PERCENTAGE
40 20 0 ZANDU
HIMANI
BAIDYANATH
DABUR
2. Out of these which are the most preferred? 80 70 60 50 40 30 20 10 0
RATING(1-LOW 5-HIGH)
ZANDU
HIMANI
BAIDYANATH
DABUR
3. According to you what are the reasons for customers’ preferences? 44
60 50 40 30
PERCENTAGE
20 10 0 brand loyalty
price
availability
no reason
DISTRIBUTION Supply chain: Dabur has steadily improved its procurement and distribution systems to achieve a significant reduction in material costs. Dabur has an extensive supply chain and distribution network that has grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50 Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKU’s to several thousand stockists and dealers. MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays asof-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers. VSATs: This Success paved the ground for the company's supply chain initiative. Fiftyfive Ku Band TDMA VSATs were used to link primary distributors to the system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs. At some locations VPNs had to be used because it was not possible to set up a dish. The integrated primary and secondary system has a number of unique features. The features like tight integration of schemes, stockist’s credit limit control, automated banking of cheques, and online cheque reconciliation has obvious advantages in the primary distribution. These are basically extensions to the MFG/PRO ERP system and not core customizations. The integrated system allows each Area Manager to plan for the month's sales forecasts, stockists’ performance, and sales officers' performance. The integration allows better control on pipelines in primaries and secondaries, brings down inventories, 45
and offers better control on production and sales against a confirmed forecast. The idea is to increasingly shift focus from primaries to secondaries. Schemes based on secondary volumes will help control secondary pipelines and sales. Primary sales will therefore come from a resultant 'pull' from secondary replenishments. Further, sales order servicing can be improved by taking orders through the Internet, and by setting stocking norms and replenishing stocks to improve ROI of stock holders.
ANSOFF’S PRODUCT MARKET EXPANSION GRID
MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish the relevance of Chyawanprash in an increasingly tough and demanding lifestyle, for the entire family. As a market leader, Dabur’s focus has been to increase the relevance of this time-tested and proven product in the family - both for users and non users - and increase penetration. In their new campaign they have tried to establish the fact that Chyawanprash, with its ‘well - being’ properties, gives an edge to the users and dispel the myth that it should be consumed in illness or is meant only for Children or the aged. MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for the future. An international business division has been set up within the company to promote exports and it expects this business to grow steadily in the coming years. The company plans to focus on Russia and CIS countries along with Afghanistan, West 46
Indies and the Asia Pacific region. It has also entered the North American markets by appointing distributors and initiating marketing of products to the ethnic Indian segment. The company has already been exporting hair oils, shampoos and Hajmola candies to Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a local partner to manufacture and market its products. Dabur will hold a majority stake in this joint venture.
BOSTON CONSULTANCY GROUP’S GROWTH SHARE MATRIX
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↓
DABUR
In the past, the sheer diversity of Dabur's product portfolio has made an evaluation of the company's prospects quite difficult. Dabur's FMCG business contributes over 70 per cent of Dabur India's current revenues. Within the FMCG business, Dabur India focusses on three key product groups — family products, healthcare and FMCG exports. The family products portfolio boasts of quite a few market leading brands — Dabur Amla and Vatika hair oils, Vatika shampoo, Dabur Honey, and Dabur Lal Dant Manjan. Dabur India also has well-recognised brand names and an established distribution set-up in the healthcare business with brands such as Dabur Chyawanprash, Hajmola, Pudin Hara and Dabur Lal Tail. Given Dabur's acknowledged strengths in ayurvedic healthcare, the scope for expansion in each of these product baskets is considerable. Though in the recent years, the growth from Dabur's FMCG portfolio has been sedate, due to sluggish rural demand and intense competition from a host of regional brands and counterfeit products. However Dabur's operating profit margins have been more or less constant over this period. However, the FMCG business is Dabur's cash cow contributing over 70 per cent of Dabur India's current revenues. The business has consistently generated high cash 48
flows and called for minimal incremental investments. The overall growth in hair oil industry has been 7% whereas growth in branded coconut oil has been 10%.Vatika hair oil has a market share of 19% and Dabur Chyawanprash has a 61% market share and is the market leader. Both of these are therefore Dabur’s cash cow.
THE NEW DABUR ENTITY The New Dabur Identity modernizes the 100-year old equity of the 49
Dabur brand by subtly transforming the tree. While it retains the essence of the banyan tree, it now projects a contemporary image, in consonance with today's lifestyle. The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a symbol of fertility. The new Dabur identity retains these enduring and valuable attributes, while it adds a fresh, healthy and holistic dimension to the tree. The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's heritage, commitment and stability through the form and colours of the tree; its branches and leaves. It also conveys that the brand stands for wellness across age groups. Taken as a whole, the tree appears well rooted, implying stability; and its abundant canopy implies that it can provide amply for those who seek its produce and shade. Further, the entire image, being well-proportioned, evokes a harmonious, well-balanced, wholesome and holistic brand. In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a heaven for creatures it generously harbors in its foliage, as well as in the shade of its canopy. The tree is held auspicious as it spreads through the three spheres with its roots meshing through the earth, its trunk rising through the terrestrial world and its branches reaching into the heavens. This symbolism also occurs in cultures across the world. Keeping these vital associations in mind, the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy.
RECOMMENDATIONS
Focus on growing core brands across categories.
Reaching out to new geographies, within and outside India.
Improve operational efficiencies by leveraging technology. 50
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing the deep knowledge of ayurveda and herbs with modern science.
Provide consumers with innovative products within easy reach.
Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic, Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. It could have hair care experts to solve hair problems. Services could include dandruff treatment, straightening of hair, treatment for split ends, etc.
Position Dabur Chyawanprash as not more of a medicine but as something which is necessary for health.
More initiatives like “Dabur ki Deewar” to increase brand visibility. It is an initiative to occupy shelf space.
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CONCLUSIONS The Chyawanprash Industry is yet to capture the beverage market in full swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts. The consumer’s patriotic love for tea and coffee is unfared. Chyawanprash 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 dabur has hit off rather well with the masses. Dabur has clearly lost it head start advantage and thereby acquiring just 35% of the market share while others enjoy rest of the market share. This could be well attributed to dabur 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 Chyawanprash and Vatika hair oil brand .The brands such as that of Chyawanprash by vednath,
Chyawanprash with its ‘sonacahndi,
‘Minute- made’ and also US food giantssDel Monte are ready to hit the Chyawanprash market very soon. Vatika hair oil has no major competition except an Australian Product Tobasco. As a new product so people are not able to digest it yet Dabur is getting 8 Crores from Vatika hair oil in which accounts for 4 Crores, Lemoneez 1 Crore & others 3 Crores . As the strategies of the companies keeps on changing, be it in Chyawanprash industry, a company has to create perceptions and cover them into realities.
It is an expensive
proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be the one which combines the high end technology with consumer insight. 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
Chyawanprash
want quality benefit rather then Price benefit, so it is
better to stress on quality rather than on decreasing price to increase sales and profit. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand.
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As Vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target market should use the Vatika hair oil and adopt it in making daily food thereby increasing the market share of Vatika hair oil.
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REFERENCES Books: •
Marketing Management: Twelfth Edition – Philip Kotler & Kevin Lane Keller
Websites: • • • • • •
www.google.com www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com
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