Careers360 summer intership report by anuj gupta ( Jaipuria Institute of Mana...
Media Tracking In kathmandu
1. P a g e 1 | 59
College for Professional Studies
Lord Buddha Education Foundation
Opp. Maitidevi Temple, Kathmandu, Nepal
Media Tracking In Kathmandu
By
Deepesh Sharma
Roll No: 521105583
A project report submitted in partial fulfillment of the requirements for
BBA IN PROJECT MANAGEMENT
Of Sikkim Mani pal University, DDE INDIA
Sikkim- Mani pal University
Mani pal, India.
June, 2014
2. P a g e 2 | 59
Title Page
Media Tracking In Kathmandu
A PROJECT REPORT
Under the guidance of
Uday Kant Jha
Submitted by
Deepesh Sharma
In partial fulfillment of the requirement for the award of the degree
Of
BBA
IN
PROJECT MANAGEMENT
JUNE, 2014
3. P a g e 3 | 59
COLLEGE FOR PROFESSIONAL STUDIES
Viva voce sheet
We have examined the viva-voce examination of the graduate research report presented by
Miss. Deepesh Sharma
Entitled
Media Tracking In Kathmandu
And found the report to be original work of the student and written according to the prescribed
format of the University. We recommend the report to be accepted as partial fulfillment of the
requirements for the Bachelor in Business Administration (BBA).
Viva-Voce Committee
1. Supervisor: Uday Kant Jha
2. Program Coordinator: Uday Kant Jha
3. Chief, Research Division:
4. External Examiner :
Date: ……………………………….
4. P a g e 4 | 59
Bonafide certificate
Certified that this project report titled “Media Tracking In Kathmandu” is the
bonafide work of “Deepesh Sharma” who carried out the project work under my
supervision.
CERTIFIED
………………………………..
UdayKant Jha
SUPERVISOR
Chief Co-coordinator
College for Professional Studies
Opp. Maitidevi Temple, Kathmandu
5. P a g e 5 | 59
Certificate from University Learning Centre
This is to certify that Miss Deepesh Sharma of BBA has worked on the project as per the course
curriculum of BBA-VI. This project entitled “Media Tracking In Kathmandu” is the original
work of Miss Deepesh Sharma and was carried out under the supervision of Mr. Uday Kant
Jha as per the guidelines provided by the university. As per the student’s declaration this is
certified that his project has not been presented anywhere as a part of any other academic work.
……………………… ………………………
……………………………
P. Kejriwal Er. Pankaj Jalan Er. Prakash
Kumar
Managing Director Director Administration Director
(Academics)
6. P a g e 6 | 59
Student Declaration
I hereby declare that the project report entitled
Media Tracking In Kathmandu
Submitted in partial fulfillment of the requirements for the degree of
Bachelor in Business Administration in Project Management
To Sikkim- Mani pal University, India, is my original work and not submitted for the award
of any other degree, diploma, fellowship, or any other similar title or prizes.
Place: Maitidevi Deepesh Sharma
Date: 24th
June 2014 Reg. No: 521105583
7. P a g e 7 | 59
Contents
PART 1. BRIEF INTRODUCTION OF THE INDUSTRY............................................................12
1.1 INTRODUCTION OF FMCG INDUSTRY...........................................................................12
1.1.1 Scope....................................................................................................................................12
1.1.2 Supplier industries for FMCGs include:..........................................................................13
1.1.3 A Brief Note on Juice Factories in Nepal.........................................................................14
1.1.4 Top FMCG Companies in Nepal ......................................................................................15
1.1.5 Nepal’s FMCG Companies Enjoy Remarkable Growth................................................15
1.2 INTRODUCTION OF COMPANY ........................................................................................16
1.2.1 Introduction to DABUR ....................................................................................................16
1.2.2 Introduction of Company..................................................................................................17
1.2.3 Core Values.........................................................................................................................19
1.2.4 Strategic Intent...................................................................................................................19
1.2.5 Board of Directors..............................................................................................................20
1.2.6 Management Team ............................................................................................................21
1.2.7 Branches of DABUR in Nepal...........................................................................................22
1.2.9 DABUR At A Glance .........................................................................................................23
1.2.10 Global Quality Certifications Achieved By Real Juice at DNPL.................................23
1.2.11 Short Description of 3 Major Strategic Business Units (SBU).....................................24
1.2.12 Milestone to success .........................................................................................................26
1.2.13 Product Line:- ..................................................................................................................27
1.2.14Various types of Juice product Produced by Real Juice Department of DNPL..........28
1.2.15 SWOT analysis.................................................................................................................29
PART 2. PROJECT OVERVIEW ....................................................................................................32
2.1 INTRODUCTION.....................................................................................................................32
2.1.1 Advertising..........................................................................................................................32
2.1.2 Sales Promotion..................................................................................................................41
2.1 STATEMENT OF PROBLEM................................................................................................44
2.3 OBJECTIVE OF STUDY ........................................................................................................45
2.4 SIGNIFICANCE OF THE STUDY.........................................................................................46
2.5 LIMITATION OF STUDY ......................................................................................................46
2.6 METHODOLOGY ...................................................................................................................46
2.6.1Research...............................................................................................................................46
2.6.2 Research Design .................................................................................................................48
2.6.3 Population and Sample......................................................................................................49
8. P a g e 8 | 59
2.6.4 Sources of Data...................................................................................................................49
2.6.5 Data Collection Technique................................................................................................50
2.6.6 Data Processing Technique ...............................................................................................50
2.7 Analysis......................................................................................................................................51
BIBLIOGRAPHY...............................................................................................................................59
9. P a g e 9 | 59
LIST OF TABLES
Table No. Table Name Page No.
1 Name of Juice factories, their Products and Location in Nepal
2 Capital Structure
3 Various Products Produced by DNPL
4 Types of Real Juice
5 Advertisement trend in the news in Nepal 1
6 Advertising trend in the program in Nepal 2
7 Advertisement trend in the live program and event
8 Nepal AD Market 1
9 Nepal AD Market 2
10 Questionnaire Demography
11 Television Preference
12 Time of watching TV
13 Number of hours watching TV
14 Type of Programme on TV
15 Newspaper preference
16 Magazine/weekly newspaper preference
17 Radio station preference
18 Website preference
10. P a g e 10 | 59
LIST OF FIGURES
Figure No. Figure Name Page No.
1.1 Organizational Structure
2.1 Nepal AD market 1
2.2 Nepal AD Market 2
3.1 Television Preference
3.2 Time of watching TV
3.3 Number of hours watching TV
3.4 Type of Programme on TV
3.5 Newspaper preference
3.6 Magazine/weekly newspaper preference
3.7 Radio station preference
3.8 Website preference
11. P a g e 11 | 59
ABBREVIATION
BOD- Board of directors
PVT- Private
LTD- limited
FMCG- Fast moving consumer goods
CPG-
CG- Chaudhary goods
DNPL- Dabur Nepal Privet Limited
SBU –Strategic business units
CCD -Consumer Care Division
CHD-Consumer Health Division
IBD-International Business Division
R&D- Research and development
OTC- Over the Counter
US- United States
EU- European union
SWOT- Strength Weakness Opportunity Threat
PSA-public service announcement
POP- Point-of-Purchase
GSK -GlaxoSmithKline
P&G - Procter & Gamble
UDN-United distributers Nepal
SAARC-South Asian association for regional cooperation
PSA-Public service announcement
TVCs- Television commercials
HRS- Hours
OHRP- Office of Human Research Protections
12. P a g e 12 | 59
PART 1. BRIEF INTRODUCTION OF THE INDUSTRY
1.1 INTRODUCTION OF FMCG INDUSTRY
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products
that are sold quickly and at relatively low cost. Examples include non-durable goods such
as soft drinks, toiletries, Over-the-counter drugs, toys, processed foods and many
other consumables. Though the profit margin made on FMCG products is relatively small
(more so for retailers than the producers/suppliers), they are generally sold in large quantities;
thus, the cumulative profit on such products can be substantial. FMCG is probably the most
classic case of low margin and high volume business. Also known as the consumer packaged
goods or CPG industry, this multi-million dollar sector is made up of a huge range of famous
brand names-the kind that we use every single day. These fast moving consumers goods are
the essential items we purchase when we go shopping and use in our everyday lives. They are
the household items you pick up when you are buying groceries or visit your local chemist or
pharmacy. FMCG goods are referred to as ‘fast moving’, quite simply because they are the
quickest items to leave the supermarket shelves. They also tend to be the high volume, low
cost items.
Cleaning and laundry products, over the counter ,medicines, personal care items and food
stuffs make up a large bulk of the goods in the FMCG arena, but it doesn’t end there. Paper
products, pharmaceuticals, consumer electronics, plastic goods, printing and stationery,
alcoholic drinks, tobacco and cigarettes can all be considered fast moving consumer goods
too.
Fast-moving consumer electronics are a type of FMCG and are typically low priced generic
or easily substitutable consumer electronics, including mobile phones, MP3 players, game
players, and digital cameras which are of disposable nature.
1.1.1 Scope
The term FMCGs refers to those retail goods that are generally replaced or fully used up over
a short period of days, weeks, or months, and within one year. This contrasts with durable
goods or major appliances such as kitchen appliances, which are generally replaced over a
period of several years.
13. P a g e 13 | 59
FMCG have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy
products, and baked goods—are highly perishable. Other goods such as alcohol, toiletries,
pre-packaged foods, soft drinks, and cleaning products have high turnover rates. An excellent
example is a newspaper—every day's newspaper carries different content, making one useless
just one day later, necessitating a new purchase every day.
The following are the main characteristics of FMCGs:
o From the consumers' perspective:
o Frequent purchase
o Low involvement (little or no effort to choose the item – products with strong
brand loyalty are exceptions to this rule)
o Low price
o From the marketers' angle:
o High volumes
o Low contribution margins
o Extensive distribution works
o High stock turnover
1.1.2 Supplier industries for FMCGs include:
o 1511 meat and meat products
o 1512 fish and fish products
o 1513 fruit and vegetables
o 1514 vegetable and animal oils and fats
o 1520 dairy products
o 1531 grain mill products
o 1532 starches and starch products
o 1533 animal feeds
o 1541 bakery products
o 1542 sugar
o 1543 cocoa, chocolate and sugar confectionery
o 1544 macaroni, noodles, couscous
o 1549 other food products
o 1551 spirits, ethyl alcohol
14. P a g e 14 | 59
o 1552 wines
o 1553 malt liquors and malt
o 1554 soft drinks, mineral waters
o 1600 tobacco products
o 2101 pulp, paper and paperboard
o 2102 corrugated paper, containers
o 2109 other articles of paper and paperboard
o 2424 soap and detergents, cleaning preparations, perfumes.
1.1.3 A Brief Note on Juice Factories in Nepal
Nepal is an agro-based developing country with a very low per capita income. There have
been efforts in industrialization by developing private sectors as well as by encouraging
foreign investment. Nepal has various private sector industries based on the nature and
consumption of product. Industries in Nepal are in emerging trend.
Soft Drink Industry is one of the prosperous industries in Nepal. The profitability of juice
factories largely depend on the production, operation, technique and various promotional
strategy in marketing and distribution for sale of Juice. The name of leading soft drink
factories in Nepal are as follows:
Table 1: Name of Juice factories, their Products and Location in Nepal
S.N. Name of The Factory Name of the Product Location
1 Dabur Nepal Pvt. Ltd. Real Juice Narayani
2 Dugar Beverage Pvt. Ltd. Mango Fruity Narayani and
Bagmati
3 Chaudhary Group of Nepal Rio Narayani and
Bagmati
4 Bottlers Nepal Pvt. Ltd. Slice Narayani and
Bagmati
5 Himalayan Beverage Pvt. Ltd. Rite Narayani
15. P a g e 15 | 59
Among all the above mentioned factories, Dabur Nepal Pvt. Ltd., Dugar Beverage Pvt. Ltd.,
Bottlers Nepal Pvt. Ltd., Chaudhary Group of Nepal are the leading and successful
companies in production of Soft Drink in the form of Juice . In Nepal, consumption of juice
is very high due to its hot and humid climate.
1.1.4 Top FMCG Companies in Nepal
In spite Nepal is a under-develop country it’s an attractive market to earn more money Nepal
is a country with huge potential to earn profit because of this reason many FMCG companies
have been investing and many FMCG has been evolved around the year in Nepal. Some top
FMCG companies of Nepal are as follow:-
o Dabur Nepal Pvt. Ltd.
o Chaudhary Group
o Vishal Group
o United Distributors Nepal Pvt. Ltd
o Asian Foods
o Sujal Confectionery
o Kanak New Traders
1.1.5 Nepal’s FMCG Companies Enjoy Remarkable Growth
Nepal with a population of around 30 million possesses a huge FMCG industry (or Fast
Moving Consumer Goods’ industry), which amounts to more than a billion dollar. This
industry is believed to be growing at a very remarkable pace. While the overall economy of
Nepal is growing at the rate of 3% to 4%, the FMCG sector in the country is growing at a
high yearly rate of over 20 %.
In spite of NEPAL being an under-developed country, and attributed with almost all the traits
of an under-developed nation like corruption, bribery, scams, political incompetency and
many more, has got many international companies doing business from the region. Most of
them work in joint collaboration with some of the famous business groups of Nepal like the
Vishal Group, which is one of the leading business houses of the country. To name a few of
the popular global FMCG companies which are in working with local business groups like:
Coca Cola (Localized joint venture), GSK or GlaxoSmithKline (Distributed by Vishal groups
subsidiary company UDN Nepal), Johnson & Johnson (Distributorship done by the Nepal
Overseas Ltd.), Pepsi (For localized bottling), P&G or Procter & Gamble (Distributed by
16. P a g e 16 | 59
United Distributors Nepal Pvt. Ltd.), Unilever (Another localized joint venture) and many
more. Apart from the international brands mentioned above, several companies of Indian
origin have even joint ventured as well as set up manufacturing units based in the nation. To
name such a company would be Dabur. Besides this, many other companies like Emami as
well as Marico operate their business within the country through the distributors, who are
based in Nepal. However, among all these, an important as well as growing component is the
different domestic companies such as Asian Foods, Sujal Confectionery, CG Foods and many
more emerging as relative competitors in the market. Over the years, these companies have
been successful in establishing sizeable business in the country.
It is quite interesting that if one takes into consideration the growing remittance income, then
it would be quite easy for him or her to find out why such a kind of growth is being observed
by the industry. The money is remitted by the Nepal based workers, who earn 300 USD – 500
USD every month. Once such funds get remitted to the families based in Nepal, the
maximum share gets consumed. With the growth in such amount and increasing consuming
pattern of the residents, it won’t be wrong to expect an ever emerging market and prosperity
in the industry.
1.2 INTRODUCTION OF COMPANY
1.2.1 Introduction to DABUR
Dabur Nepal has been a company of a vast product line and have to manage their marketing
policy accordingly. Dabur Nepal promotes its products through several means i.e. by
organizing marathons throughout the year, it sponsors various events through the year. Some
of the Dabur Nepal product mainly are beverages, daily product, medicines, honey. Dabur
Nepal uses implemented a strategy in which it divided the market on basis of gender and then
the gender was further divided into ages. On basis of the research conducted Dabur Nepal
came to the conclusion which advertisement medium is used mostly by which gender and
ages.
The story of Dabur began with a small, but visionary endeavor by Dr. S. K. Burman, a physician
tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary
people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task
of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague.
17. P a g e 17 | 59
Soon the news of his medicines traveled, and came to be known. As the trusted 'Daktar' or
Doctor who came up with effective cures. And that is how his venture Dabur got its name -
derived from the Devanagari rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to
produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had
no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted
in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to
a household name that at once evokes trust and reliability.
Dabur India ltd. Is the fourth largest FMCG company in India with the revenues of us$ 750
million (3390 crore) and market capitalization of us$ 3.5 billion (over RS 16000 crore)
building on a legacy of quality and experience of over 125 years. Dabur operates in key
consumer products categories like hair care, oral care, health care, skin care, home care &
foods.
1.2.2 Introduction of Company
Dabur is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand
identities -- Dabur as the master brand for natural healthcare products, Vatika for premium
personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for
fairness bleaches and skin care products.
Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network, with
a high penetration in both urban and rural markets.
Dabur's products also have a huge presence in the overseas markets and are today available
in over 60 countries across the globe. Its brands are highly popular in the Middle East,
SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today
accounts for over 30% of the total turnover.
The 125-year-old company, promoted by the Burman family, had started operations in 1884
as an Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta,
Dabur India Ltd has come a long way today to become one of the biggest Indian-owned
consumer goods companies with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a family-run business to
18. P a g e 18 | 59
become a professionally managed enterprise. What sets Dabur apart from the crowd is its
ability to change ahead of others and to always set new standards in corporate governance &
innovation.
The birth of Dabur began in a small Calcutta pharmacy in 1884, where Dr.S.K.burman
launched his mission of making health care products began.in 1896with the growing
popularity of Dabur products, Dr.Burman expanded his operations by setting up a
manufacturing plant for mass production of formulations. In early 1990s Dabur entered the
specialized area of nature-based Ayurvedic medicines, for which standardized drugs which
were not available in market. In 1986 Dabur became a public limited company. Dabur India
Ltd became a big company after it reverse merger with Vidogum Limited. In 1996 for better
operation and management Dabur divided its operations into three divisions according to
product mix i.e. health care products division, family products division and Dabur ayurvedic
specialties limited.
Dabur Nepal Private Limited was set up as an independent Group company in 1992 by Mr.
Udyan Ganguly. Dabur Nepal employees around 900 employees throughout the country.
Dabur Nepal received “Best Exporter Award” of export promotion brand from Ministry Of
Commerce, HMG of Nepal in 2000 and Overall Excellence Award of Nepal-India Chamber
of commerce and industries in 2000. Some milestones of Dabur Nepal are:
o Dabur established as a strong nationwide brand, selling in over 20,000 retail outlets
throughout Nepal;
o Dynamic brand and Corporate image building exercises through sponsorship of major
national sports and cultural events;
o Capital assets jumped 10.5 times in 10 years;
o Exports crossed Rs. 250 crores, contributing over Rs. 20 crores to the Nepalese
exchequer.
o Net profit crossed Rs. 10 crores
o Increase in turnover by over 19%
o Installation and launch of production line for Real Fruit Juice's Slim-line pack.
19. P a g e 19 | 59
1.2.3 Core Values
Every organization has its own values and visions for the smooth operation and long term
prosperity of the organization. DNPL has a vision “Dedicated to the health and well-being
of every household”. DNPL has following principles for the overall socio-economic
development of the nations.
Vision
"Dedicated to the health and well-being of every household"
Principles
Ownership: - This is our company. We accept personal responsibility, and accountability to
meet business needs.
Passion for winning: - We all are leaders in our area of responsibility, with a deep
commitment to deliver results. We are determined to be the best at doing what matters most.
People development: - People are our most important asset. We add value through result
driven training, and we encourage & reward excellence.
Consumer focus: - We have superior understanding of consumer needs and develop products
to fulfill them better.
Teamwork: - We work together on the principle of mutual trust & transparency in a
boundary-less organization. We are intellectually honest in advocating proposals, including
recognizing risks.
Innovation: - Continuous innovation in products & processes is the basis of our success.
Integrity: - We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each other.
1.2.4 Strategic Intent
We intend to significantly accelerate profitable growth. To do this, we will:
20. P a g e 20 | 59
o Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging
technology
o 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
o Provide our consumers with innovative products within easy reach
o Build a platform to enable Dabur to become a global ayurvedic leader
o Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel
o Be responsible citizens with a commitment to environmental protection
o Provide superior returns, relative to our peer group, to our shareholders
1.2.5 Board of Directors
Fig 1.1: Organizational Structure
Figure 1: Organizational structure of DNPL
Director
CEO
General Manager
Functional Managers
Accounts Engineering
Production
Stores Purchases
Personal Computer
21. P a g e 21 | 59
Dabur has an illustrious BOD who are committed to take the company to newer levels of
corporate governance. The Board comprises of:
Chairman: - Dr. Anand Burman
Mr. Pradeep Burman
Vice Chairman: - Dr. Amit Burman
Whole time directors: - Mr. P.D.Narang
Mr. Sunil Duggal
Non Whole Time Promoters, Directors: - Mr. Mohit Burman
Mr. Saket Burman
Independent directors: - Mr. Albert Wiseman Paterson
Mr. P.N.Vijay
Mr. R.C.Bhargava
Mr. S.Narayan
Mr. Ajay Dua
Mr. S.K.Battacharyya
1.2.6 Management Team
22. P a g e 22 | 59
1.2.7 Branches of DABUR in Nepal
Kathmandu Corporate Office:-TNT Building, Tinkune, Koteshwor
Kathmandu, Nepal
Factory-Rampur Tokni, District Bara
Birgung, Nepal
Birganj Office:-Dabur Mess, Sheerpur
Birganj-14, Nepal
Dabur Nepal Nursery:-Nepal Medicinal Plant Project
Nanepa, Janagal
Nepal
1.2.8 Share Capital
Table 2: Capital Structure
Particulars As at 31st
march 2013 As at 31st
march 2012
Authorized capital
1,400,000 equity shares of 100 each
( previous year 1,400,000 equity shares of 100 each)
1400.00 1400.00
Issued capital
800,000 equity shares of 100 each
( Previous year 800,000 equity share of 100 each )
800.00 800.00
Subscribed and paid-up capital
798,520 equity shares of 100 each
( Previous year 798,520 equity shares of 100 each )
798.52 798.52
Note:
1. There is no change in number of shares outstanding at beginning and end of the year like previous
year.
2. Any transfer, pledge or mortgage of share of share to anyone other than shareholder and subject to
approval of BOD.
3. DABUR international LTD. Dubai holds 97.5share of the company.
23. P a g e 23 | 59
1.2.9 Global Quality Certifications Achieved By Real Juice at DNPL
DNPL has obtained three global quality certifications by the production and sales of Real
Juice.
The various Global Quality Certifications are as follows:
1. Good Manufacturing Practice (GMP)
GMP is the world standard manufacturing procedure which has laid down certain process
and provisions for the production of Real Juice. If the organization produces according to
the procedures laid down by GMP, the product is said to be produced at its best quality. It
was introduced in DNPL since 1995.
2. Hazard Analysis and Critical Control Point (HACCP)
HACCP is an organization which is directly devoted towards the hazards analysis which can
be seen in the juice factories. The various areas of their inspection are as follows
• Wearing a Cap before entering the floor
• Wearing Apron within the production floor
• Wearing gloves in the production floor
• Hands should be washed properly
• The production floor should be kept clean and tidy
All the production floors along with the surrounding areas are kept clean. A very hygienic
environment is given to the production plant along with the equipments that are used in the
production process. The area is kept free from unwanted materials as well as materials from
last batch.
3. ISO 9002
ISO 9002 is a set of standard governing documentation of quality program. Companies
become certified by proving a qualified external examination that they have complied with
all the requirements. Once they are certified companies, they are listed in the directory so
that potential customers can see which companies have been certified by ISO which will
help the company to earn valuable customers’ trust towards the company.
24. P a g e 24 | 59
1.2.10 DABUR at A Glance
Dabur Nepal Limited has marked its presence with significant achievements and today
commands a market leadership status. Our story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment to our partners and
stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods Company in India with a turnover of Rs. 2834.11 Crore (FY09)
o 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer
Health Division (CHD) and International Business Division (IBD)
o 3 Subsidiary Group companies - Dabur International, Fem Care Parma and newu.
o 17 ultra-modern manufacturing units spread around the globe
o Products marketed in over 60 countries
o Wide and deep market penetration with 50 C&F agents, more than 5000 distributors
and over 2.8 million retail outlets all over India
1.2.11 Short Description of 3 Major Strategic Business Units (SBU)
(a) Consumer Care Division (CCD):- Addresses consumer needs across the entire
FMCG spectrum through four distinct business portfolios of Personal Care, Health Care,
and Home Care & Foods.
Master Brands:
o Dabur - Ayurvedic healthcare products
o Vatika - Premium hair care
o Hajmola - Tasty digestives
o Réal - Fruit juices & beverages
o Fem - Fairness bleaches & skin care products
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey
o Strategic positioning of Honey as food product, leading to market
leadership (over 75%) in branded honey market
25. P a g e 25 | 59
o Dabur Chyawanprash the largest selling Ayurvedic medicine with over
65% market share.
o Vatika Shampoo has been the fastest selling shampoo brand in Nepal for
three years in a row
o Hajmola tablets in command with 60% market share of digestive tablets
category. About 2.5 crore Hajmola tablets are consumed in Nepal every
day
o Leader in herbal digestives with 90% market share
(b)Consumer Health Division (CHD):-Offers a range of classical
Ayurvedic medicines and Ayurvedic OTC products that deliver the age-old
benefits of Ayurveda in modern ready-to-use formats
o Has more than 300 products sold through prescriptions as well as over the counter
o Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
o Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
o Division also works for promotion of Ayurvedic through organized community of traditional
practitioners and developing fresh batches of students
(c)International Business Division (IBD):-Caters to the health and personal care needs
of customers across different international markets, spanning the Middle East, North &
West Africa, EU and the US with its brands Dabur & Vatika
Focus markets:
- Nigeria
- Bangladesh
- Nepal and US
26. P a g e 26 | 59
1.2.12 Milestone to success
o 1884 - Established by Dr. S K Burman at Kolkata
o 1896 - First production unit established at Garhia
o 1919 - First R&D unit established
o Early 1900s - Production of Ayurvedic medicines.
o 1930 - Automation and up gradation of Ayurvedic products manufacturing initiated
o 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporate
o 1940 - Personal care through Ayurveda
o 1949 - Launched Dabur Chyawanprash in tin pack
o 1957 - Computerization of operations initiated
o 1970 - Entered Oral Care & Digestives segment
o 1972 - Shifts base to Delhi from Calcutta
o 1978 - Launches Hajmola tablet
o 1979 - Dabur Research Foundation set up
o 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines
plant at that time
o 1984 - Dabur completes 100 years
o 1988 - Launches pharmaceutical medicines
o 1989 - Care with fun
The Ayurvedic digestive formulation is converted into a children's fun product with
the launch of Hajmola Candy. In an innovative move, a curative product is converted
to a confectionary item for wider usage.
o 1994 - Comes out with first public issue
o 1994 - Enters oncology segment
o 1994 - Leadership in health care
o 1996 - Enters foods business with the launch of Real Fruit Juice
o 1998 - Burman family hands over management of the company to professionals
o 2000 - The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs.1,000
o 2001 - Super specialty drugs
o 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore
o 2003 - Dabur demerges Pharmaceuticals business
o 2007 - Celebrating 10 years of Real
27. P a g e 27 | 59
o 2007 - Dabur Foods merged with Dabur India
o 2008 - Acquires Fem Care Pharma
o 2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club
Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red
Toothpaste crosses the billion rupee turnover mark within five years of its launch.
1.2.13 Product Line:-
In Nepal, there are two types of industries. First, industries which are single product
production based. And another which produces a large range of products to fulfill the needs
of customers. DNPL is one of the second types of industry. It has a very large product range.
DNPL is a leader in manufacturing and marketing nature-based products, marked with
quality and trust gained through decades of experience. Today DNPL products are available
for people in more than 50 countries across the world helping them move towards a healthy,
natural and holistic lifestyle. DNPL products are available in the markets of the Middle East,
South-East Asia, Africa, the European Union and America.
Table 3: Various Products Produced by DNPL
Product Section Products
Ayurvedic Pharmaceuticals Dabur Chyawanprash, Pudin Hara, Lal Dant Manjan, Hajmola
Tablets, Hajmola Candy, Honitus, Gripe Water, Lal Tail
Cosmetics Dabur Amla Hair Oil, Dabur Special Hair Oil, Dabur Amla
Lite, Vatika Hair Oil, Sarson Amla Hair Oil, Dabur Baby
Olive Oil, Vatika Heena Conditioning Shampoo, Anti
Dandruff Shampoo, Vatika Nourishing Cream Shampoo,
Anmol Black Silky Shine Shampoo, Anmol Natural Shine
Shampoo, Vatika Cleaning Shampoo, Vatika Body And
Bounce Shampoo, Dabur Gulabari
Food Products Real Fruit Juice, Dabur Glucose C, Dabur Glucose D, Dabur
Honey
28. P a g e 28 | 59
Drug Intermediaries Dant Mukta, Pachan Churna, Dcp Mishran
Plastic Products Containers, Pet Bottles, Plug, Caps
1.2.14Various types of Juice product Produced by Real Juice Department
of DNPL
Real Fruit Juice department of DNPL produces real fruit juice in varieties of flavors
(nectars) which have been shown in table 5.
Table 4: Types of Real Juice
S.N. Types
1 Real Orange Juice
2 Real Mango Nectar
3 Real mixed fruit Juice
4 Real Pineapple Juice
5 Real Grape Juice
6 Real Tomato Juice
7 Real Guava Nectar
8 Real Litchi Nectar
9 Real Cranberry Nectar
10 Real Pomegranate Nectar
11 Real Peach Nectar
29. P a g e 29 | 59
1.2.15 SWOT analysis
The following SWOT analysis looks at Dabur Nepal which is operating in FMCG industry.
The analysis shows Dabur Nepal’s Strengths, Weaknesses, Opportunities and Threats. The
SWOT analysis will give you a clear picture of the business environment Dabur Nepal is
operating in at the present time.
Strengths:-
The strengths of a business or organization are positive elements, something they do well and
is under their control. The strengths of a company or group and value to it, and can be what
gives it the edge in some areas over the competitors. The following section will outline main
strengths of Dabur Nepal.
o Having alliances with other strong and popular businesses is a major plus point for
Dabur Nepal as it helps bring in new customers and make business more effective.
o Being a market leader, as Dabur Nepal is, is key to their success as it boosts
reputation, profit and market share.
o Competitive pricing is a vital element of Dabur Nepal’s overall success, as this keeps
them in line with their rivals, if not above them.
o Riding high in the niche market in FMCG industry has helped boost Dabur Nepal and
raised reputation and turnover.
o keeping costs lower than their competitors and keeping the cost advantages helps
Dabur Nepal pass on some of the benefits to consumers
Weaknesses:-
Weaknesses of a company or organization are things that need to be improved or perform
better, which are under their control. Weaknesses are also things that place you behind
competitors, or stop you being able to meet objectives. This section will present main
weaknesses of Dabur Nepal.
o Reputation is important, and a damaged one like Dabur Nepal’s is a major weakness
as consumers will not trust the firm enough to spend money with them.
o A serious weakness for Dabur Nepal is the fact their products/services are of low
quality, meaning people will have better-quality substitutes.
30. P a g e 30 | 59
o Not reducing costs in the same way as their competitors means Dabur Nepal is
outlaying more of their profits. Having higher costs than competitors is a major
weakness.
o Dabur Nepal’s R&D work is low and insignificant, which is a major weakness in
FMCG as it is constantly creating new products.
o The lack of staff experience is a major downfall for Dabur Nepal as it could lead to
mistakes or negligence.
o Old and outdated technologies hold Dabur Nepal back and limits success, as other
firms are making use of better and more reliable technologies.
o Not having an effective marketing strategy seriously hampers the success of Dabur
Nepal.
Opportunities:-
Opportunities are external changes, trends or needs that could enhance the business or
organization’s strategic position, or which could be of a benefit to them. This section will
outline opportunities that Dabur Nepal is currently facing.
o Dabur Nepal could benefit from Governmental support, in the form of grants,
allowances, training etc.
o Looking at export opportunities is a way for Dabur Nepal to raise profits.
o Changes in technology could give Dabur Nepal an opportunity to bolster future
success.
o Dabur Nepal could benefit from expanding their online presence and making more
money from online shoppers/internet users.
o The changes in the way consumers spend and what they buy provides a big
opportunity for Dabur Nepal to explore.
o Dabur Nepal is in good financial position, which is an opportunity for them to explore
in terms of investment in new projects.
o Decrease in taxation gives an opportunity for Dabur Nepal to reduce prices or
increase profits.
Threats: -
Threats are factors which may restrict, damage or put areas of the business or organization at
risk. They are factors which are outside of the company's control. Being aware of the threats
31. P a g e 31 | 59
and being able to prepare for them makes this section valuable when considering contingency
plans and strategies. This section will outline main threats Dabur Nepal is currently facing.
o Consumer lifestyle changes could lead to less of a demand for Dabur Nepal
products/services.
o Tax increases placing additional financial burdens on Dabur Nepal could be a threat.
o Change in demographics could threaten Dabur Nepal.
o The financial burden of increasing interest rates could be a threat to Dabur Nepal.
o Regulations requiring money to be spent or measures to be taken could put financial
or other pressure on Dabur Nepal.
o New products/services from rival firms could lead to Dabur Nepal’s products/services
being less in demand.
o Changes in the way consumers shop and spend and other changing consumer patterns
could be a threat to Dabur Nepal's performance.
32. P a g e 32 | 59
PART 2. PROJECT OVERVIEW
2.1 INTRODUCTION
2.1.1 Advertising
Advertising or advertising in business is a form of marketing communication used to
encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a
specific group) to take or continue to take some action. Most commonly, the desired result is
to drive consumer behavior with respect to a commercial offering, although political and
ideological advertising is also common. This type of work belongs to a category
called affective labor.
In Latin, ad vertere means "to turn toward". The purpose of advertising may also be to
reassure employees or shareholders that a company is viable or successful. Advertising
messages are usually paid for by sponsors and viewed via various old media including mass
media such as newspaper, magazines, television advertisement, radio advertisement, outdoor
advertising or direct mail or new media such as blogs, websites or text messages.
Commercial advertisers often seek to generate increased consumption of their products or
services through "branding", which involves associating a product name or image with
certain qualities in the minds of consumers. Non-commercial advertisers who spend money to
advertise items other than a consumer product or service include political parties, interest
groups, religious organizations and governmental agencies. Nonprofit organizations may rely
on free modes of persuasion, such as a public service announcement (PSA). The 112-year
old veteran in pharmaceuticals and hair care, Dabur India limited is swiftly shedding its
traditional trappings and turning contemporary and chic. It is not just the product profile that
is metamorphosing, through Dabur’s new offerings Samara cosmetics, Real fruit juices and
homemade pastes are trendier than its old brands Pudin Hara, Dabur Amla Hair Oil and
Chyawanprash. Far more interesting is the change in the company’s positioning. From sedate
endorsements from film stars and rishis.
Dabur’s new preference is for interactive advertising, and its spokes persons are more often
than not, attractive young women.
The brands have evolved over the years to suit the consumer. The shift from traditional is in
tandem with the changing trends in consumer behavior.
33. P a g e 33 | 59
Indians have become more aware of their rights and new generation refuses to buy brands just
because it is consumer’s favorite. It needs more valid reasons to make a choice. Dabur’s new
advertising style gives them valid reasons.
The campaigns are intended to give better discounting on bourses. The intense campaigns are
a part of Dabur’s growth strategy which is aimed at:
o Leveraging on its brand equity by introducing line extensions.
o Creating a niche for itself by innovative product introductions.
o Creative about Homemade and Lemoneez campaigns ad conveys the message to the
target audience working women in a short span of 15-20 seconds.
Dabur’s attention to advertising and promotion was provoked by a 1993 market survey, which
showed most consumers perceived Dabur to be a small company, with only one or two factories
and no more than a handful of products. However, the company was determined to strengthen
its corporate image in order to attract foreign partners and joint ventures.
Advertisement is the most essential part of any media so every minute plenty of
advertisements are bombarded in magazines, television, billboards, inside buses, trains and
subways and on the radio etc. Advertisements are repeated over and over with high exposure.
Its carefully crafted persuasive pieces designed to sell the product and attitude. Among of all
various media television share of total media spending by advertisers has been increasing
globally.
There is mainly two ways TVCs affects:
TV commercials exposures levels are higher.
TV commercials sell the ideologies of men and women content in different products
more powerfully than other media.
In the case of Nepal, the volume of the advertising business is increasing day by day. This led
to the popularity of local and international channels among Nepalese viewers of all ages and
class. It was the only and easy means of entertainment for people in Nepal. By 2003, Indian
Channels i.e. Star, Sony, Zee as an entertainment channel and AajTak, Star News as news
and sports and documentary channel had a high grip on Nepalese viewers. Nepal Television,
Channel Nepal and Nepal 1 had tough time pulling viewers towards the local channels. Easy
access to cable network and high quality of programmers content presented by the Indian and
34. P a g e 34 | 59
foreign channels gained popularity. So the advertisers select domestic channel for the
advertisement of their products. The recall percentage is higher in urban area. The implicit
reason of this is that urban audiences have more chance to watch television as compare to the
rural audiences.
If we go in past, Nepal Television started its first visual media transmission in Katmandu
Valley in 1984. Even today large part of the remote rural areas of the kingdom does not
receive clear transmission but it was only one television in Nepal in certain period. Currently
several private cable channels such as Channel Nepal, Nepal 1, Kantipur Television, Image
Channel, Avenues TV, Sagarmatha T V , ABC Channels, etc. are in operation. The many
number of channels reach to the households in urban and sub-urban areas of Nepal. There are
approx. four lakh cable homes in Nepal, out of a total seven-lakh TV homes because of
electricity. According to data, 0nly 20% have electricity in 2008 which is not possible to
increase recently.
Here, Private television channel means all the television station which is run under the private
ownership and profit oriented. Trend means some kind of the common feature that has been
followed for the certain period. In this paper I try to show the whole advertising trend of
Nepali private television. The aim of the study to explore and identify the advertising trends
in private television channel in Nepal. There are twenty one televisions station who
processing operating license but only fifteen television channels operating. The entire private
channels have national coverage.
(a)Types of Advertising
Virtually any medium can be used for advertising. Commercial advertising media can
include wall paintings, billboards, street furniture components, printed flyers and rack cards,
radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts,
web popups, skywriting, bus stop benches, human billboards and forehead advertising,
magazines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes
("logo jets"), in-flight advertisements on seatback tray tables or overhead storage bins,
taxicab doors, roof mounts and passenger screens, musical stage shows, subway platforms
and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in
supermarkets, shopping cart handles (grabertising), the opening section of streaming audio
35. P a g e 35 | 59
and video, posters, and the backs of event tickets and supermarket receipts. Any place an
"identified" sponsor pays to deliver their message through a medium is advertising.
o Television advertising / Music in advertising
The television commercial is generally considered[by whom?] the most effective
mass-market advertising format, as is reflected by the high prices television networks
charge for commercial airtime during popular events. In the advertising field the
viewer/ audience play great role. About 67 % of average audience watches domestic
channels such as Nepal TV, Channel Nepal, Kantipur TV, and Image Channel which
is increasing day by day with the no of television channel and public oriented
program. Ranjeet Acharya, CEO Prisma Advertising, claims that the growth of
Nepalese Advertising a simply inevitable. If the system of “clean feed “is adopted
while broadcasting foreign television channels, it will immediately facilitated the
growth of Nepalese advertising. The application of the system will prohibit the
airing of foreign advertisement through foreign channels. And, it will make the
featuring of domestic advertisement via these channels compulsorily.
o Infomercials
An infomercial is a long-format television commercial, typically five minutes or
longer. The word "infomercial" is a portmanteau of the words "information" and
"commercial". The main objective in an infomercial is to create an impulse purchase,
so that the consumer sees the presentation and then immediately buys the product
through the advertised toll-free telephone number or website. In Nepal infomercial
advertising policy has been recently adopted by Sajha Yatayat they have installed TV
in their buses and have been showing Ads of different companies.
o Radio advertising
Radio advertising is a form of advertising via the medium of radio. Radio
advertisements are broadcast as radio waves to the air from a transmitter to an antenna
and a thus to a receiving device. Airtime is purchased from a station or network in
exchange for airing the commercials. While radio has the limitation of being restricted
to sound, proponents of radio advertising often cite this as an advantage. Radio is an
expanding medium that can be found not only on air, but also online. Companies with
36. P a g e 36 | 59
fixed budget and needs to reach as many of Nepal’s 31 million people as possible – of
which over 80% live outside the main cities adopt this medium of advertisement. The
revenue base for radio (total advertising spend) in Nepal is $7.4m .Advertising rates
on Nepalese radio have spiraled down and stations can be found who will offer a 30-
second advert for around 5 cents, or less than a cup.
o Online advertising
Online advertising is a form of promotion that uses the Internet and World Wide
Web for the expressed purpose of delivering marketing messages to attract customers.
Online ads are delivered by an ad server. Examples of online advertising include
contextual ads that appear on search engine results pages, banner ads, in text ads, Rich
Media Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
o Press advertising
Press advertising describes advertising in a printed medium such as a newspaper,
magazine, or trade journal. This encompasses everything from media with a very
broad readership base, such as a major national newspaper or magazine, to more
narrowly targeted media such as local newspapers and trade journals on very
specialized topics. A form of press advertising is classified advertising, which allows
private individuals or companies to purchase a small, narrowly targeted ad for a low
fee advertising a product or service. Another form of press advertising is the Display
Ad, which is a larger ad (can include art) that typically run in an article section of a
newspaper.
o Billboard advertising
Billboards are large structures located in public places which display advertisements
to passing pedestrians and motorists. Most often, they are located on main roads with
a large amount of passing motor and pedestrian traffic; however, they can be placed in
any location with large amounts of viewers, such as on mass transit vehicles and in
stations, in shopping malls or office buildings, and in stadiums. According to Nirmal
Raj Poudel, the immediate past President of Advertising Association of Nepal as well
as CEO of Welcome Advertising and Marketing Pvt. Ltd., of the total of rupees 3-
37. P a g e 37 | 59
billion television, radio and print account for some 1.5 billion. Similarly, “the
remaining amount 1.5 billion is occupied by Hoarding Board, Flex Printing etc.
o Mobile billboard advertising
Mobile billboards are generally vehicle mounted billboards or digital screens. These
can be on dedicated vehicles built solely for carrying advertisements along routes
preselected by clients, they can also be specially equipped cargo trucks or, in some
cases, large banners strewn from planes. The billboards are often lighted; some
being backlit, and others employing spotlights. Some billboard displays are static,
while others change; for example, continuously or periodically rotating among a set of
advertisements. Mobile displays are used for various situations in metropolitan areas
throughout the world, including: Target advertising, one-day, and long-term
campaigns, Conventions, Sporting events, Store openings and similar promotional
events, and big advertisements from smaller companies.
o In-store advertising
In-store advertising is any advertisement placed in a retail store. It includes placement
of a product in visible locations in a store, such as at eye level, at the ends of aisles
and near checkout counters (aka POP – Point of Purchase display), eye-catching
displays promoting a specific product, and advertisements in such places as shopping
carts and in-store video displays. Now days many companies have adopt this type of
advertising they display their products in departmental stores, malls and populated
areas such as Newroad, Bigmart, Civil mall, etc. and this type of display had resulted
in rise in sale of products.
o Celebrity branding
This type of advertising focuses upon using celebrity power, fame, money, popularity
to gain recognition for their products and promote specific stores or products.
Advertisers often advertise their products, for example, when celebrities share their
favorite products or wear clothes by specific brands or designers. Celebrities are often
involved in advertising campaigns such as television or print adverts to advertise
specific or general products. The use of celebrities to endorse a brand can have its
downsides, however. One mistake by a celebrity can be detrimental to the public
38. P a g e 38 | 59
relations of a brand. The beginnings of brand ambassadorship in Nepal are vague, but
it is generally believed that Manisha Koirala was the first brand ambassador of Nepal,
who endorsed Megha Wool more than two decades ago.
Over the years, Nepali businesses have jumped on to the celebrity endorsement
bandwagon. Most Nepali celebrities, whether they hail from the music, movie or
sports industry, are endorsing some brand or the other.
o Consumer-generated advertising
This involves getting consumers to generate advertising through blogs, websites,
wikis and forums, for some kind of payment.
(b)Features of Advertising
o Paid Form.
o Non-personal presentation.
o Sell or promote ideas, goods and services.
o Identified sponsor.
o Inform and persuade
Table 5: Advertisement trend in the news in Nepal 1.
Advertisement category Time duration Additional Remarks
Before news 4-8 min
Headline 30sec-1min
First break 2-4 min
Second break 3-5min
Sport news 2-3 min v/o-10 sec Brought to you buy
Business news 2-3 min v/o-10 sec Brought to you buy
Voice of public 1min v/o- 5sec Brought to you buy
SMS Voting 1min v/o-5sec Brought to you buy
Weather Forecasting 1min v/o-5 sec Brought to you buy
39. P a g e 39 | 59
Table 6: Advertising trend in the program in Nepal 2.
Advertisement
category Time duration Additional Remarks
Before the program 3-4min
Main sponsor get 5
sec extra voice over
Can be extend the
advertisement time
with program
popularity and
demand.
First break 2-3min
Main sponsor get 5
sec extra voice over
Can be extend the
advertisement time
with program
popularity and
demand
Second break 3-4 min
Main sponsor get 5
sec extra voice over
Can be extend the
advertisement time
with program
popularity and
demand
Table 7: Advertisement trend in the live program and event
Program
Time allocation for
advertisement in hour Additional
Special public
concern 14 to 20 min
Commercial event 16 to 22 min
Coming soon
notice before 2 week
Sport 16 to 20 min
Present with that one
sponsor before –
Teaser ad
40. P a g e 40 | 59
Table 8: Nepal AD Market 1
(In million)
Media 2004 2005 2006 2007 2008 2009/10 2010/11
Print 520 600 850 950 1150 1280 2015
TV 360 480 600 500 900 700 865
Radio 200 250 300 450 650 720 750
DTA * * * * * * 40
Others 920 870 750 800 800 850 650
Total 2000 2200 2500 2990 3500 3550 4320
Fig:2.1 Nepal AD Market 1
Table 9: Nepal AD market 2
(In percentage)
Medium 2004 2005 2006 2007 2008 2009/10 2010/11
Print 26 27 34 36 33 36 47
TV 18 22 24 18 25 20 20
Radio 10 11 12 17 19 21 17
DTA * * * * * * 1
Others 46 40 30 29 23 23 15
Total 100 100 100 100 100 100 100
41. P a g e 41 | 59
Fig 3.2: Nepal AD Market 2
2.1.2 Sales Promotion
Sales promotion is one of the five aspects of the promotional mix. (The other 4 parts of the
promotional mix are advertising, personal selling, direct marketing and publicity/public
relations. Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve
product availability.
Examples includes contests, coupons, freebies, and loss leaders, point of purchase displays,
premiums, prizes, product samples and rebates.
Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called consumer
sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales
promotions. Some sale promotions, particularly ones with unusual methods, are
considered gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers to
stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or
purchase. Examples of devices used in sales promotion include coupons, samples, premiums,
point-of-purchase (POP) displays, contests, rebates, and sweepstakes.
Sales promotion is needed to attract new customers, to hold present customers, to counteract
competition, and to take advantage of opportunities that are revealed by market research. It is
made up of activities, both outside and inside activities, to enhance company sales. Outside
42. P a g e 42 | 59
sales promotion activities include advertising, publicity, public relations activities, and
special sales events. Inside sales promotion activities includes window displays, product and
promotional material display and promotional programs such as premium awards and
contests.
(a)Types of sales promotion
Sales promotion can be briefly classified into three types
o Consumer sales promotion technique
o Trade sales promotion technique
o Retail mechanics
Consumer sales promotion technique:-
Consumer sales promotions encompass a variety of short-term promotional techniques
designed to induce customers to respond in some way. The most popular consumer sales
promotions are directly associated with product purchasing. These promotions are intended to
enhance the value of a product purchase by either reducing the overall cost of the product
(i.e., get same product but for less money) or by adding more benefit to the regular purchase
price (i.e., get more for the money).
o Price deal: A temporary reduction in the price, such as 50% off.
o Loyal Reward Program: Consumers collect points, miles, or credits for purchases and
redeem them for rewards.
o Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage
marked on the package.
o Price-pack deal: The packaging offers a consumer a certain percentage more of the
product for the same price (for example, 25 percent extra).
o Coupons: coupons have become a standard mechanism for sales promotions.
o Loss leader: the price of a popular product is temporarily reduced below cost in order to
stimulate other profitable sales
o Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for
delivery.
o Checkout dispensers: On checkout the customer is given a coupon based on products
purchased.
43. P a g e 43 | 59
o Contests/sweepstakes/games: The consumer is automatically entered into the event by
purchasing the product.
o Point-of-sale displays:-
o Glorifier: A small stage that elevates a product above other products.
o Wobbler: A sign that jiggles.
o Necker: A coupon placed on the 'neck' of a bottle.
o YES unit: "your extra salesperson" is a pull-out fact sheet.
o Sampling: Consumers get one sample for free, after their trial and then could decide
whether to buy or not
Trade sales promotion techniques:-
As note in the Promotion Decisions tutorial, certain promotions can help "push" a product
through the channel by encouraging channel members to purchase and also promote the
product to their customers. For instance, a trade promotion aimed at retailers may encourage
retailers to instruct their employees to promote a marketer’s brand over competitors’
offerings. With thousands of products competing for limited shelf space, spending on trade
promotion is nearly equal that spent on consumer promotions.
o Trade allowances: short term incentive offered to induce a retailer to stock up on a
product.
o Dealer loader: An incentive given to induce a retailer to purchase and display a product.
o Trade contest: A contest to reward retailers that sell the most product.
o Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your
product on the spot.
o Training programs: dealer employees are trained in selling the product.
o Push money: also known as "spiffs". An extra commission paid to retail employees to
push products.
Retail mechanics:-
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for
new marketing initiatives.
o Buy x get y free a.k.a. BOGOF for Buy One Get One Free
44. P a g e 44 | 59
o Three for two
o Buy a quantity for a lower price
o Get x% of discount on weekdays.
o Free gift with purchase
(b) Features of Sales Promotion
o Sales promotion acts as a tool in marketing to lubricate the marketing efforts.
o It is in a necessity in the present highly competitive and consumer oriented marketing
it stimulates consumer purchasing and dealer effectiveness.
o It supports advertising and personal selling and acts as a connecting link between the
two. However, sales promotion is different from advertising. It facilitates the
introduction and attractive sales promotion measures. Thus, advertising is essential for
sales promotion and personal selling (salesmanship).It creates favorable background
for making sales promotion and salesmanship effective. Many companies introduce
extensive advertising campaign followed by the sales promotion measures for
capturing the market. Even salesmanship gets better scope due to effective
advertising.
o Sales promotion aims at stimulating consumer purchasing at the point of sale.
o Sales promotion provides more sales and profits to the producers and dealers.
2.1 STATEMENT OF PROBLEM
Manufacturing enterprises are playing a dominant role in the Nepalese economy. It contributes
around 15 percent in nation’s GDP. Nepal’s manufacturing sector is small but steadily growing. It
consists mainly of small scale industries. Intermediate and capital goods industries are few but
emerging. Industrial sector of Nepal is dominated by food and beverage manufacturing industries.
The major problems faced by manufacturing industries can be summarized as:
• Ineffective resource utilization
• Lack of adequate infrastructure
• Lack of skilled manpower and technical expertise
• Political instability and interference
• Limitation of market
45. P a g e 45 | 59
• High competition with imported goods
• Unsatisfactory financial performance
The present study highlights the problems in relation to manufacturing industries in Nepal with
references to DNPL taking one of its major products “Real Fruit Juice”. Being a manufacturing
industry the problems of DNPL is also more or less same to the problem of other manufacturing
industries of Nepal.
Besides these several problems, the present study is concentrated mainly towards the inventory
issues. Inventory is a broad term and comprises raw materials, work in process and finished
products. Huge amount of capital is associated with these inventories. Cost of capital in Nepalese
context is quite higher. Carrying high level of inventories results in high level of financial costs in
terms of interest which ultimately affects the profitability. So it has been the subject of great
challenge to manage and control the level of inventory so as to operate the enterprise with low
financial costs. Though capital are also tied up with raw materials and semi-finished goods, but
present study will examine the capital tied up with finished products and its impact on profitability
of the enterprise. In the light of this explanation, the present study tries to answer the following
questions:
• To what extent is the advertising policy for DNPL efficient?
• To what extent is the advertisement being conveyed to consumers?
• How advertisement and sales related?
2.3 OBJECTIVE OF STUDY
The objective of this study is to explore how Nepalese population reacts to different
advertisement media and establish a detail study about the reaction of different age
groups and different gender towards different advertisement media and gain competitive
edge. Specifically, this research intends to:
i) Explore consumer perception towards different advertisement media.
ii) Explore the relationship between advertisement and profitability.
46. P a g e 46 | 59
2.4 SIGNIFICANCE OF THE STUDY
The study has multidimensional significance, which can be divided into four boarder headings:
o Its Significance to the Manager: the study will helpful to marketing manager while
preparing marketing policy.
o Its Significance to the Management: the study will helpful to go deep into the matters
as to what is the relation between advertisement and the consumers and understanding
the consumers better. This project helps to understand the market and helps to make
marketing policy at low cost
o Its Significance to the finance manager: this study helps to minimize the cost of firm
and helps to increase the profitability of the firm.
2.5 LIMITATION OF STUDY
o While preparing and filling the questionnaire various gender and age group refused to
fill the questionnaire.
o This report only focus on paid form of promotional activities.
o This project only focus on the marketing activities where as there are various other
activities performed by Dabur Nepal.
2.6 METHODOLOGY
2.6.1 Research
Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of man, culture and society, and the use of this
stock of knowledge to devise new applications.” It is used to establish or confirm facts,
reaffirm the results of previous work, solve new or existing problems, support theorems, or
develop new theories. A research project may also be an expansion on past work in the field.
To test the validity of instruments, procedures, or experiments, research may replicate
elements of prior projects, or the project as a whole. The primary purposes of basic
research (as opposed to applied research) are documentation, discovery, interpretation, or
the research and development (R&D) of methods and systems for the advancement of
human knowledge. Approaches to research depend on epistemologies, which vary
considerably both within and between humanities and sciences. There are several forms of
47. P a g e 47 | 59
research: scientific, humanities, artistic, economic, social, business, marketing, practitioner
research, etc.
Research has been defined in a number of different ways.
A broad definition of research is given by Martyn Shuttleworth - "In the broadest sense of the
word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge."
Another definition of research is given by Creswell who states that - "Research is a process of
steps used to collect and analyze information to increase our understanding of a topic or
issue". It consists of three steps: Pose a question, collect data to answer the question, and
present an answer to the question.
The Merriam-Webster Online Dictionary defines research in more detail as "a studious
inquiry or examination; especially : investigation or experimentation aimed at the discovery
and interpretation of facts, revision of accepted theories or laws in the light of new facts, or
practical application of such new or revised theories or lawsness, marketing, practitioner
research, etc.
(a)Steps involved in conducting research
Research is often conducted using the hourglass model structure of research. The hourglass
model starts with a broad spectrum for research, focusing in on the required information
through the method of the project (like the neck of the hourglass), then expands the research
in the form of discussion and results. The major steps in conducting research are:
o Identification of research problem
o Literature review
o Specifying the purpose of research
o Determine specific research questions or hypotheses
o Data collection
o Analyzing and interpreting the data
o Reporting and evaluating research
o Communicating the research findings and, possibly, recommendations
The steps generally represent the overall process, however they should be viewed as an ever-
changing iterative process rather than a fixed set of steps. Most researches begin with a
48. P a g e 48 | 59
general statement of the problem, or rather, the purpose for engaging in the study. The
literature review identifies flaws or holes in previous research which provides justification for
the study. Often, a literature review is conducted in a given subject area before a research
question is identified. A gap in the current literature, as identified by a researcher, then
engenders a research question. The research question may be parallel to the hypothesis. The
hypothesis is the supposition to be tested. The researcher(s) collects data to test the
hypothesis. The researcher(s) then analyzes and interprets the data via a variety of statistical
methods, engaging in what is known as Empirical research. The results of the data analysis in
confirming or failing to reject the Null hypothesis are then reported and evaluated. At the end
the researcher may discuss avenues for further research.
Rudolph Rummel says, "... no researcher should accept any one or two tests as definitive. It is
only when a range of tests are consistent over many kinds of data, researchers, and methods
can one have confidence in the results."
2.6.2 Research Design
A descriptive study is one in which information is collected without changing the
environment (i.e., nothing is manipulated). Sometimes these are referred to as “correlational”
or “observational” studies. The Office of Human Research Protections (OHRP) defines a
descriptive study as “Any study that is not truly experimental.” In human research, a
descriptive study can provide information about the naturally occurring health status,
behavior, attitudes or other characteristics of a particular group. Descriptive studies are also
conducted to demonstrate associations or relationships between things in the world around
you.
Descriptive studies can involve a one-time interaction with groups of people (cross-sectional
study ) or a study might follow individuals over time (longitudinal study ). Descriptive
studies, in which the researcher interacts with the participant, may involve surveys or
interviews to collect the necessary information. Descriptive studies in which the researcher
does not interact with the participant include observational studies of people in an
environment and studies involving data collection using existing records (e.g., medical record
review).
49. P a g e 49 | 59
In this research the data was collected through filling questionnaire and analyzing the data.
After that a relationship was established between advertisement cost and sales and conclusion
was drawn that as advertisement and sales promotion increases so does the sales.
2.6.3 Population and Sample
The sample for the research was randomly selected and the population size of the research
was 240 which of 120 male and 120 females.
The population was broadly classified into age group of 12-14, 15-25, 26-36 and 36+.
Table 10: Questionnaire Demography
Age Male Female
12-14 30 30
15-25 30 30
26-36 30 30
36+ 30 30
2.6.4 Sources of Data
Data can be defined as the quantitative or qualitative values of a variable. Data is plural of
Datum which literally means to give or something given. Data is thought to be the lowest unit
of information from which other measurements and analysis can be done. Data can be
numbers, images, words, figures, facts or ideas. Data in itself cannot be understood and to to
get information from the data one must interpret it into meaningful information. There are
various methods of interpreting data. Data sources are broadly classified into primary
and secondary data.
Primary Data: - primary data is also known as raw data. Raw data has not been subjected to
processing or any other manipulation. Primary data is the information in first hand. The data
is collected by researcher in order to analysis the research. Primary data is collected from the
field organization selected that is from the employees, customers and observing the real life
situations. The main benefit of primary data is collected only for the specific study so it is
more relevant to the study.bt the s disadvantage for the collection of primary data it involves
more cost and time.
50. P a g e 50 | 59
Secondary Data: - Secondary data, is data collected by someone other than the user.
Common sources of secondary data for social science include censuses, organizational
records and data collected through qualitative methodologies or qualitative research. Primary
data, by contrast, are collected by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
development
2.6.5 Data Collection Technique
Both primary as well as secondary data were used while preparing this project
oPrimary data:-primary data are those data which are initially collected .while
preparing this project questioners was prepared and was filled out by 240 peoples which
contained different age group and different gender. And accordingly the data was
analyzed.
o Secondary data: - secondary data are those data which has previously been studied or
found by a researcher and others uses that information. Various data like advertisement
cost, total cost and company history has been attained from different sources
2.6.6 Data Processing Technique
51. P a g e 51 | 59
2.7 Analysis
Table 11: Television Preference
TV CHANNEL NUMBER OF PEOPLES NUMBER IN PERCENTAGE
ABC 53 9%
Araniko television 13 2%
Avenues television 33 5%
Channel Nepal 20 3%
E 24 12 2%
Himshikar television 3 0%
Himalya television 34 6%
Image channel 37 6%
Kantipur television 95 16%
Makalu television 6 1%
Mountain television 11 2%
Nepal 1 25 4%
Nepal television
(ntv)
39 6%
NTV plus 21 3%
News 24 37 6%
Sagarmatha
television
34 6%
Terai television 9 1%
TV filmy 53 9%
Others 76 12%
52. P a g e 52 | 59
Fig 3.1:Television Preferences
TABLE 12: Time of watching TV
TIME NUMBER OF PEOPLES NUMBER IN
PERCENTAGE
Morning 43 17%
Day 22 9%
Evening 75 29%
Night 118 46%
Fig 3.2: Time of watching TV
53. P a g e 53 | 59
TABLE 13: Number of hours watching TV
NUMBER OF HRS NUMBER OF PEOPLES NUMBER IN
PERCENTAGE
0-1 hrs. 70 35%
1-2 hrs. 74 37%
More than 2 hrs. 56 28%
Fig 3.3: Number of hours watching TV
TABLE 14: Type of Programme on TV
TYPE OF PROGRAMME NUMBER OF PEOPLE NUMBER IN
PERCENTAGE
News 121 29%
Sports 56 13%
Music 94 23%
Daily soaps 55 13%
Comedy 71 17%
Others 20 5%
54. P a g e 54 | 59
Fig 3.4 : Type of Programme on TV
TABLE 15: Newspaper preference
NEWSPAPER NUMBER OF PEOPLES NUMBER IN
PERCENTAGE
Annapurna Post 44 10%
AirthikAbhayan 2 0%
Airthik Daily 3 1%
GorkhaPatra 33 7%
Himalaya Times(Nepali) 13 3%
Karobar 5 1%
Kantipur 112 25%
Kathmandu Post 41 9%
Nagarik 32 7%
Nepal SamacharPatra 22 5%
NayaPatrika 16 4%
Rajdha 7 2%
Republica 21 5%
Sauriya Dainik 4 1%
The Himalaya Times 88 20%
Others 4 1%
55. P a g e 55 | 59
Fig 3.5: Newspaper preference
TABLE 16: Magazine/weekly newspaper preference
MAGAZINE/WEEKLY
NEWSPAPER
NUMBER OF PEOPLE NUMBER IN
PERCENTAGE
ECS Living 14 4%
ECS Health 14 4%
ECS Friday 12 3%
Essence 5 1%
Food & Wine 15 4%
Himal 21 6%
Janadesh 2 1%
Kamana 4 1%
Muna 16 4%
Nari 41 11%
Nepal 17 5%
Nepal Times 21 6%
New Business Age 31 9%
Saptahik 65 18%
Sukrabar 26 7%
Sadhana 7 2%
56. P a g e 56 | 59
Shikshak 8 2%
Teenz 12 3%
Wave 22 6%
Other 6 2%
Fig 3.6: Magazine/weekly newspaper preference
TABLE 17: Radio station preference
RADIO STATION NUMBER OF PEOPLES NUMBER IN
PERCENTAGE
Bhaktapur FM 12 3%
BBC 28 7%
Classic FM 19 5%
Capital FM 11 3%
Citizen FM 5 1%
FM Adhyatma Jyoti 18 4%
Goodnews FM 7 2%
Hits FM 26 6%
Headlines &Music FM 12 3%
Image FM 16 4%
Image News 5 1%
57. P a g e 57 | 59
Indreni FM 2 0%
Kantipur FM 63 15%
Mero FM 12 3%
Maitri FM 4 1%
Metro FM 3 1%
Nepal FM 19 5%
Nepali Ko Radio 6 1%
Radio Mirmire 6 1%
Radio Nepal 22 5%
Radio city 13 3%
Radio Filmy 11 3%
Rajdhani 4 1%
Radio Masti 5 1%
Radio Sagarmatha 16 4%
Radio Audio 13 3%
Star FM 14 3%
Times FM 15 4%
Ujjyalo FM 11 3%
Youth FM 9 2%
Other 2 0%
Fig 3.7: Radio station preference
58. P a g e 58 | 59
TABLE 18: Website preference
WEBSITE NUMBER OF PEOPLE NUMBER IN PERCENT
www.google.com 134 35%
www.facebook.com 117 30%
www.twitter.com 9 2%
www.youtube.com 70 18%
www.yahoo.com 41 11%
www.hotmail.com 15 4%
Fig 3.8: Website preference