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Dabur India Limited
1
ACKNOWLEDGEMENT
I, Mr. Saikat Bhowmick, deem, it is a pleasure and privilege for me to work under the
guidance of Mr. Raman Preet, Ex. Director of Pune Institute of business management. I
would like to express my gratitude and regards to him for rendering me her thoughtful and
rational approach regarding this project work, which enable me to complete it.
I would also like to thank our honorable Principal Director, Mr. Kumar Iyer , honorable
Assistant Director, Mr. Pranav Nagpurkar and my mentor, Mr. Ashish Bhargava of Pune
Institute of business management , for offering me the proper environment, internet
facilities and overall administration which are very much suitable for my study and project
work.
I would also render my thanks to all the faculty members for helping me to complete and
submit my project work.
Date: - ………………………
……………………………………
Place: - ……………………... PGDM, 2nd SEM
2
SECTORAL INFORMATION ............................................................................................................ 4
Worldwide sectorial Contribution to the World Economy.......................................................... 4
GDP % Contribution to the Indian Economy .............................................................................. 6
Historical Growth/Degrowth Pattern observed in the last 5 years.............................................. 7
Porter’s Five Forces Model .......................................................................................................8
COMPANY INFORMATION............................................................................................................ 9
Promoters of the Company and company snapshot...................................................................9
Market Share of the company ................................................................................................ 10
Competitor analysis................................................................................................................ 11
Product offered by the company............................................................................................. 11
PRODUCT................................................................................................................................... 12
MARKETING STRATEGY .............................................................................................................. 13
PEST analysis.......................................................................................................................... 13
SWOT analysis of company..................................................................................................... 16
Segmentation, Target, Positioning.......................................................................................... 16
BCG matrix of Dabur............................................................................................................... 17
Product Life Cycle of Dabur..................................................................................................... 18
Comparison of sales of company for past 3 years .................................................................... 19
Growth drivers....................................................................................................................... 19
Demography study survey of consumers. ............................................................................ 21
Branding and positioning.................................................................................................... 23
Advertising......................................................................................................................... 25
Promotion or communication strategy................................................................................ 26
Rural Marketing.................................................................................................................. 29
Channel / Distribution strategy ........................................................................................... 30
Challenges faced in Marketing ............................................................................................ 31
BUSINESS FINANCE..................................................................................................................... 33
Gross Profit and Net Profit Margin of the company................................................................. 33
Fixed assets added during the year......................................................................................... 35
Working Capital requirement for the years ............................................................................. 36
Debt/Equity ratio of the company and its implications............................................................ 36
Topline and bottom-line......................................................................................................... 37
3
DuPont Analysis..................................................................................................................... 38
HUMAN RESOURCE MANAGEMENT............................................................................................ 39
Organization Structure – to be represented via hierarchy........................................................ 39
Analysis of JDs and Job Specifications posted by the company on online-job portals................ 40
Training needs of the company............................................................................................... 42
Organization culture (as per employee reviews or research findings)....................................... 43
CONCLUSION ............................................................................................................................. 45
BIBLIOGRAPHY........................................................................................................................... 46
4
SECTORAL INFORMATION
Worldwidesectorial Contributionto theWorld Economy
India is a consumer driven market, with consumer spending in the country projected to more
than double by 2025. These days, the Indian consumer segment, broadly categorized into
urban and rural markets, is attracting marketers from across the globe.
Global corporations see India as a key market for the future. The growth in the country's
consumer market is largely driven by a young demographic and rising disposable income. If
India sustains its current pace of growth for the foreseeable future, average household
incomes will likely triple over the next twenty years and the country will become the world's
fifth largest consumer economy by 2025, as per a study by the McKinsey Global Institute
(MGI).
The Government of India has also played a significant role in the growth of the Indian
consumer segment. It has brought about policies which have attracted foreign direct
investment (FDI) and consequently boosted economic growth.
India has the potential to become the world's largest middle class consumer market with an
aggregated consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte
titled 'India matters: Winning in growth markets'.
Driven by growing incomes and increasing affordability, the consumer durables market is
projected to expand at a compound annual growth rate (CAGR) of 14.8 per cent, from US$
7.3 billion in FY12 to US$ 12.5 billion in FY15.
Online retailing, both direct and via marketplaces, will grow threefold to become an Rs
50,000 crore (US$ 8.26 billion) industry by 2016, driven by a 50-55 per cent per year growth
over the next three years, as per rating agency Crisil. The growth of internet retail is also
expected to boost offline retail stores.
The Gross Domestic Product (GDP) in India was worth 1876.80 billion US dollars in
2013. The GDP value of India represents 3.03 percent of the world economy. GDP in
India averaged 517.27 USD Billion from 1970 until 2013, reaching an all-time high of
1876.80 USD Billion in 2013 and a record low of 63.50 USD Billion in 1970. GDP in India
is reported by the World Bank Group.
http://www.tradingeconomics.com/india/gdp
5
https://www.cia.gov/library/publications/the-world-factbook
Agriculture
6%
Industry
31%
Services
63%
SECTOR-WISE PERCENTAGE CONTRIBUTION IN GWP
6
GDP % Contribution to the Indian Economy
The overall fast moving consumer goods (FMCG) market is expected to increase at a
compound annual growth rate (CAGR) of 14.7 per cent to touch US$ 120.4 billion in the
period 2015-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7
per cent to US$ 100 billion during 2015-2025.
The market size of the Indian FMCG sector is expected to reach US$ 135 billion by 2020
from US$ 82.9 billion in 2013. It is also the fourth largest sector in the Indian economy and
has grown at an annual average of about 11 per cent over the last decade. Food products, the
leading market segment with 43 per cent of the overall market revenue together with personal
care at 22 per cent make up two-thirds of the sector's revenue.
The Government of India's policies and regulatory frameworks such as relaxation of license
rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per
cent in single-brand retail are some of the major growth drivers in this sector. The
government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory
Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State
Advised Price (SAP).
There is a lot of scope for growth in the FMCG sector from rural markets with consumption
expected to grow in these areas as penetration of brands increases. Also, with rising per
capita income, which is projected to expand at a CAGR of 7.8 per cent over the period 2015-
19, the FMCG sector is anticipated to witness some major growth.
https://www.cia.gov/library/publications/the-world-factbook
SECTOR-WISE PERCENTAGE CONTRIBUTION IN GDP
7
Historical Growth/Degrowth Patternobserved in the last 5 years
8
Porter’sFiveForcesModel
Direct competitors
Existing-Baidhyanath, Himani, zandu,
Himalaya Chyavanaprasha
Sibling-sugar free Chyawanprash, junior
chyawan
Potential Entrants
Ranbaxy, Mayer
Competitive Rivalry (indirect
competitors)
Bournvita,
Horlicks,
Boost,
Hamdard
Substitutes
Homeopathic, ayurvedic
INDUSTRY
COMPETITORS
9
COMPANY INFORMATION
Promotersof theCompanyandcompanysnapshot
Type Public company (NSE, BSE)
Industry FMCG, Health Care
Founded 1884
Founder Dr. S K Burman
Headquarters
Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201010 (UP),
India
Area served Worldwide
Key people
Dr. Anand Burman (Chairman)
Mr. Amit Burman (Vice-chairman)
Mr. Sunil Duggal (CEO)
Products
Dabur Amla, Dabur Chyawanprash, Vatika, Dabur Honey, Fem,
Hajmola & Real fruit juice
Number of
employees
6,154 (2012-13)
Divisions
Dabur Nepal Pvt Ltd (Nepal),
Dabur Egypt Ltd (Egypt),
Asian Consumer Care (Bangladesh),
Asian Consumer Care (Pakistan),
African Consumer Care (Nigeria),
Naturelle LLC (Ras Al Khaimah-UAE),
Jaquline Inc. (USA)
Subsidiaries
Dabur International
Fem Care Pharma
Pune Pistons
Website Dabur.com
10
Promoters of the company
Name of the Shareholder % holding
Chowdry Associates 12.41
VIC Enterprises Pvt Ltd 12.4
Gyan Enterprises Pvt Ltd 11.51
Puran Associates Pvt Ltd 10.77
Ratna Commercial Enterprises Pvt Ltd 8.85
Milky Investment & Trading Company 6.04
Burmans Finvest Pvt Ltd 3.02
Windy Investments Pvt Ltd 1.51
M B Finmart Pvt Ltd 1.51
Anand Chand Burman 0.04
Gauri Tandon 0.04
Pradip Burman 0.02
Asha Burman 0.01
Indira Burman 0.01
Sidharth Burman 0.02
Market Share of the company
ITC
36%
HUL
34%
Dabur India
6%
Godrej Consumer
5%
Colgate
4%
Marico
4%
Emami
2%
P and G
2%
Gillette India
2%
Godrej Ind
2%
Others
3%
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Competitoranalysis
Name Market share in %
ITC 35.92
HUL 33.66
Dabur India 5.85
Godrej Consumer 4.90
Colgate 4.30
Marico 4.42
Emami 2.05
P and G 2.46
Gillette India 2.10
Godrej India 1.75
Others 2.58
Productoffered bythecompany
Category of products Dabur’s Share Main Competitors
FruitJuice 58% Real andActive Tropicana.
FruitDrinks (coolers) 1% Coolers Frooti,Mazza, and Slice.
Hair oil CoconutBase 6.4% Vatika HUL, Marico.
ShampooVatika 7.1% HUL and P&G.
Hair Care (overall) 27% HUL, P&G and Himalaya.
Chyawanprash 64% Sona Chandi, ZanduandHimalaya.
Honey 40% Emami,Hamdard and local players.
Digestive 37% Paras and otherlocal players.
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PRODUCT
'Dabur Chyawanprash, the trusted name for your entire family'
Dabur Chyawanprash
 Derived from 2,500-year-old Ayurvedic formula
 Totally chemical-free, natural and safe
 Combination of herbs and plant extracts in a base of Amla fruit pulp
 Refined by Dabur to provide traditional goodness with best quality
Dabur Chyawanprash has a tangy sweet-sour taste and the consistency of jam. It can be
taken directly or with milk and as bread spread. In winters, have a glass of warm milk
after having Chyawanprash. In summers, have a glass of cold milk after having
Chyawanprash.
Evolution of Dabur Chyawanprash
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MARKETING STRATEGY
PESTanalysis
POLITICAL & LEGAL FACTOR
Marketing decisions are strongly affected by development in the political & legal
environment. This environment is composed of laws, government agencies, and pressure
groups that influence and limit various organization and individuals. Sometimes this law also
creates new opportunities for business.
ECONOMIC FACTOR
OPPORTUNITY
It is apt to say that not a day in the lives of people is complete without using Dabur’s
product and it is the company’s commitment to evolve with the changing needs of its
customers that has helped a 125 year old Dabur emerge a favorite among even the modern
Indian consumer and win market share across categories.
Dabur Chyawanprash, which is the flagship brand in this category, recorded goods gains in
2007-08 to 64.1% in 2013-14 (volume share as per A C Nielsen).
People power
Dabur India employs about 3000 employs across all areas of operations. The company has a
team of well qualified scientists, Ayurvedic doctors, pharmacist culture specialist to drive
its R&D. A state-of-the-art Greenhouse facility has been set up at Banepa, which has the
capability to produce 5-6 million saplings of medicinal plants per annum. All the required
climatic parameters for uniform growth of saplings of the medicinal plants like temperature,
humidity etc. are controlled by automatic computer systems. Besides helping preserve
natural resources, this initiative has also gone a long way in generating employment and
income for local people and improving the socio-economic conditions of local populace in
the Himalayan Kingdom.
A vibrant culture, average employee age of 31-32 years, direct recruitment from some of
the top B-schools in the country under the young managers’ Development program and
conduct of competency. Development centers for elevation are some of the other important
HR initiatives of the company. As of march 2009 the company employs 4,222 people in
various parts of its business.
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SOCIAL
Strength
Companies are promoting Chyawanprash as an immune booster, which can be consumed by
anybody without the prescription of a doctor. These marketing tactics entices people to buy
Chyawanprash as an OTC Product. Most of these consumers are not aware of the fact that it
is a medicine which also helps them fight with diseases
1. Youthfulness
2. Health Conscious
3. Mothers – intangible
Weakness
1. Children prefer bournvita, horlicks complain, boost because of their taste
2. It sells only during winter season
TECHNOLOGICAL FACTOR
Opportunity
Production & technology center is being set, to ensure that the brand maintains the highest
level of quality & innovation.
Dabur Chyawanprash is adding technology for launching its new product of Chyawanprash,
the sugar free Chyawanprash for diabetes patient and the Dabur Chyawan junior in
chocolate flavor for children, with the aim of improving customer experience and increasing
supply chain efficiency.
Dabur Chyawanprash: using technology to good effect
When input costs rise, you usually expect this show up in the profit margin. But companies
now have many sophisticated tools in their armory to manage their material costs.
Given its unique basket of herbal FMCG products, many of Dabur India's raw materials,
which include such items as herbs, spices and honey, are seasonal and have to be bought
from various sources. To complicate matters, prices of inputs such as sugar and vegetable
oils, and packaging material went through the roof in 2003-04. Yet Dabur India says it
successfully cut procurement costs last year, thanks to technology.
In December 2002, Dabur signed up with Free Markets, a global firm which provides IT -
enabled solutions that help companies streamline their procurement process. IT-enabled
sourcing solutions or "e-sourcing" as it is commonly called, typically allows a company to
link up all its suppliers online, rank them on the basis of costs and performance; and procure
materials through bidding "events" conducted over the Net.
15
In Dabur's case, the technology from Free Markets has significantly cut procurement costs,
reduced the cycle time for purchases and shortened the negotiation process for buying
materials, claims Mr. Jude Magima, the company's Vice-President for Corporate
Procurement and Planning.
In 2003-04, Dabur procured Rs 210 crore worth of materials, half of its total raw material
spend, through the e-sourcing channel. The e-sourcing initiative has not been restricted to
non-critical inputs alone. In fact, the company says a whole host of herbal raw materials
including saffron, spices and essential oils, have been procured online.
The company has also e-sourced a good bit of its services and logistics, not to talk of the
hardware and packing materials. These initiatives have helped pep up Dabur's profit growth,
despite the rising commodity prices.
Threat
Ayurveda cannot compete with modern science in many emergencies. But in an
environment of over-drugging, chronic and degenerative ailments, new viruses and super
bugs outstripping new cures.
Ayurveda does promise real long-term benefits. Sometimes as substitutes, sometimes as
effective support therapy and preventives, at a negligible social cost.
16
SWOTanalysis of company
SWOT Analysis
Strength
1.Strong Dabur brand name
2.Excellent branding and advertising
3.Excellent distribution and availability
Weakness 1.Declining popularity in the urban areas
Opportunity
1.Leverage successful brand Dabur
2.Advertise more
3.Buy out competition
Threats
1. Threat from local medicinal herbs in rural areas
2.People preferring international health brands
Segmentation,Target,Positioning
STP
Segment For all age groups who want high nutrition
Target Group All age groups Lower, middle class people
Positioning Protects from everyday infection and cold
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BCG matrixof Dabur
Dabur Red tooth paste
Real Fruit Juice
Gilabari
FEM Beauty Care
Balsara
Hajmola
Chawayanprash
Dabur Amla hair oil
Pudin Hara
Dabur Glucose
Honitos
Dabur Balm strong
Dabur Lal powder
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ProductLifeCycleof Dabur
Honitos
Dabur Balm
strong
Dabur Lal
powder
Dabur Red
tooth paste
Real Fruit
Juice
Gulabari
Hajmola
Chyawanprash
Dabur Amla
hair oil
Pudin Hara
Dabur Glucose
FEM
Beauty
Care
Balsara
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Comparison of salesof companyforpast3 years
2014 2013 2012
Net Sales 4870.08 4349.39 3757.54
% Change in Net Sales 0.025744 0.030805 0.034914
Growth drivers
 Disposable Income: There is increase in disposable income, observed in both rural and
urban consumers, which is giving opportunity to many rural consumers to shift from
traditional unorganized unbranded products to branded FMCG products and urban
fraternity to splurge on value added and lifestyle products. The increasing salaries,
along with rising trend of perks in the corporate sector at regular intervals, have
increased people’s spending power. As per some research, there is a high correlation
between Disposable per capita and HPC per capita.
 Organized Retail: The emergence of organized retail have led to more variety with
ease in browsing, opportunity to compare with different products in a category, one
stop destination (entertainment, food and shopping) etc., which is playing an important
role in bringing boom in the Indian FMCG market. Currently the modern trade is
capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and
2025 respectively. Also, as the credit card and organized retail trend picks up, people
won’t think much while buying and buy more.
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2014 2013 2012
Net Sales
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 Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages
with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition
in urban India, many FMCG companies are devising strategies for targeting rural
consumers in a big way. Many FMCG companies are focusing on increasing their
distribution network to penetrate with a step by step plan. This is the reason that FMCG
urban market size has dropped from 50% to 29% in last 5 years. The FMCG market
size for semi-urban and rural segment was 19% and 52% respectively for the year 2006-
07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007-
08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the
growth engine for FMCG growth. Though the urban markets are growing too, the
incremental addition in consumer’s households is much more in rural space as
compared to urban markets. The planned development of roads, ports, railways and
airports, will increase FMCG penetration in the long term. 180 million rural and semi-
urban people’s attention has already been diverted towards FMCG products, according
to latest estimates released by industry chamber, Assocham in 2008. The estimated
number of households using FMCG products in rural India has grown from 131 million
in 2004 to 140 million in 2007, according to market research company IMRB. Over
70% sale of FMCG products is made to middle class households and over 50% of
middle class is in rural India.
 Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was
driven by new avenues of expenditure for growing consumer income such as consumer
durables, entertainment, mobiles, motorbikes etc. Now, as many consumers have
already upgraded, their income is being directed towards pampering themselves.
 Favorable Indian Economy & Demographics: 45% people in India are under 20
years of age. Per capita disposable income has increased from $550 to $600 in 2007
(9% increase). GDP is growing at a CAGR between 8 to 9%.In the next five years,
affluent and aspirers as a total will supersede strivers and will be dominated by aspirers,
as per NCAER.
21
Demographystudysurvey of consumers.
1. Age
a. Kids (5 -12 years)
a. Teenagers (13 -19 years)
b. Adults (20 and above)
2. Psychographic
a. All class people
3. Behavioral
a. Benefits: healthy life style
Favorable Indian Economy & Demographics: 45% people in India are under 20 years of
age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase).
GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a
total will supersede strives and will be dominated by aspirers, as per NCAER.
Source:Simplify360– A Social MediaAnalyticsTool
22
Dabur is mainly targeting children and old aged, who are basically from lower middle,
middle and high income background, as it is a health supplement product, and Indians are
now more health conscious.
23
Branding and positioning
Dabur Chyawanprash: - Dabur is roped out with two campaigns one is on “immune India
School Challenge 2012” and another is “Mother’s army” where Indian Cricket Skipper M.S.
Dhoni is endorsing brand & conveying message that Dabur Chyawanprash having 48
Ayurvedic ingredients which gives 3 times more immunity.
Dabur Chyawanprash Immune India School Challenge 2012 campaigning strategy is that
they are looking for most immune school in India where School having strong immunity
children. The campaigning brief is that children are discussing in science laboratory &
suddenly lights gone. Principal requesting because it is question of school image. And,
children are gathering, started work scientifically, joined wire with bicycle, continuously
paddling in the rain with strong energy and lights come.
At the end of campaign, M.S.Dhoni feel proud on children & conveying message that they
(Dabur Chyawanprash) is looking for those kind of school whose having such strong &
energetic children. Participate in Dabur Chyawanprash Immune India School Challenge 2012
& make your school as “Most Immune School in India”.
Here, it is clearly brand activation & promotion towards school instead of children. It has
found little lack in strategy that if brand is looking for best immune school whose having
strong & energetic children, then what about other school? Shall it consider that those
school’s children having not strong immunity which will not come in challenge or which will
not going to be participate? It may give negative impact in mind of children & make down
children confidence. It should be required to promote different way where children can get
confidence, attract towards brand & feel real strong. Overall film content writing, visuals,
sound & music background are really appreciable that gives energy & create enthusiasm.
Another campaign is on Mother’s army which includes various fruits & vegetable. A boy is
going to school & whenever he is going, his mother’s army are following boy & give him
protection. Suddenly rain is falling down, army are feeling uncomfortable & taking protection
under umbrella.
At the end of campaign, Indian Skipper M.S.Dhoni is conveying message that you have lack
of immunity in your army which provides only Dabur Chyawanprash. Dabur Chyawanprash
having 48 kinds of ayurvedic herbs/ingredients which are provides 3 times more immunity
where it can fight against diseases. Now, it’s complete mother’s army (With Dabur
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Chyawanprash). Conveying simply message that keep strong army i.e. immunity where you
can fight easily against disease.
Overall, Dabur Chyawanprash is mainly focusing on Immunity system, as well as it has also
made change in packing. The new packing covered with “3 times more immunity”.
Himani Sona chandi Chyawanprash: - Sona chandi Chyawanprash is also roped out with
two campaigns that conveying message Sona (Gold) gives physically energy (i.e. strong
immune system) & Chandi (Silver) gives brain energy. It is very much challengeable task
against rival brand Dabur Chyawanprash that Sona chandi Chyawanprash brand is
campaigning without any celebrity which was being endorsed by Bollywood star Shahrukh
khan previously.
Punch line: - Kabiliyat bane Kamiyabi (Skill/Talent becomes Success)”
Brand is come out with different concept which is being successful. The punch line is focus
on “Kabiliyat bane Kamiyabi (Skill/Talent becomes Success)”. Overall, concept has been
taken from the movie 3 Idiots where Starr Aamir Khan is being conveying dialogue that
“Don’t go behind success, Go towards Talent/Skill. Then Success will come forcefully
behind you”. So, same concept has been used over here. Last year, brand was promoting as
“jeeto jindagi ki har Jung (Win life’s each moment)”.
By this punch line, consumers shall quickly remind the movie 3 idiots & perceived like
concept is taken from movie, it has not created by own way.
Overall, both brands are mainly trying to take position on immunity by executing various
ways.
25
Advertising
Advertising is a form of communication that typically attempts to persuade potential
customers to purchase or to consume more of a particular brand of product or service. Many
advertisements are designed to generate increased consumption of those products and services
through the creation and reinforcement of "brand image" and "brand loyalty". For these
purposes, advertisements sometimes embed their persuasive message with factual information.
Every major medium is used to deliver these messages, including television, radio, cinema,
magazines, newspapers, video games, the Internet and billboards. Advertising is often placed
by an advertising agency on behalf of a company or other organization.
Dabur has created the huge brand image and a vast product following by associating mega-
names like Amitabh Bachchan, Rani Mukherjee, Vivek Oberoi, Mandira Bedi etc. Dabur
invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far
the company has been successful in this mission as the people now know the brand and ask for
its products by name.
Celebrity endorsement: - Dabur Chyawanprash
is being endorsing by Indian cricket Skipper
M.S.Dhoni.
Himani Sona (Gold) chandi (Silver) Chyawanprash was being endorsing by Bollywood star
Shahrukh Khan. But, on this time it has already been started campaign without any celebrity.
26
Promotionor communication strategy
SALES PROMOTIONAL TOOLS OF DABUR FOODS
 Price promotions
 Coupons
 Gift with purchase
 Competitions and prizes
 Money refunds
 Point-of-sale displays
 Free samples
 Contest /demos
 Festival Sales
 Retailer coupons
 Multi-packs
 Special price for twos
 Allowances for additional shelf space
 Merchandising
 Sales contest
 Incentives
 Awards & prizes
 Premium gifts
 Sales Meetings
 Samples/product sampling
 Contests & Sweepstakes
 Exchange Offers/buyback
 Refund / Rebate
 Price / Bonus Packs
PROMOTIONAL SCHEMES USED FOR STOCKIESTS
Encourage stockiest to participate in displays and sales contests.
Higher Margins: Tries to give higher margins to stockiest so that they don’t lose interest in
the product and can earn good profits after meeting all the expenses.
Sales Contests: Sales contest are held annually and whichever stockiest has the best sales
record a prize is given to him, like free holiday to the family etc.
Allowances: Special allowances are given to both stockiest and stockiest sales man if they
achieve their monthly target.
Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some
money on the promotional schemes, like conducting a sampling activity.
Danglers and Posters: Company gives posters and danglers to stockiest which are further
pasted and distributed by stockiest sales man.
Training: Special Training is given to Stockiest Sales Man, a training workshop is organized
by the company for stockiest sales man so that they don’t face any problem while placing their
products and taking orders from retailers.
Annual Gathering: All the stockiest meet under one roof at least once a year and then the
stockiest whose performance was best in term of sales is awarded.
27
Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest
once a year.
Gathering While Launch of New Products: All the stockiest and their sales man gather when
there is a launch of a new product. Company gives free samples & gifts to stockiest and their
sales man.
Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU.
Free danglers and posters for publicity.
Buyback: Dabur foods have a scheme of replacement of products which gets expired.
PROMOTIONAL SCHEMES USED FOR RETAILERS
 Trade allowances: Short term incentives are offered to induce a retailer to stock up more
Dabur products.
 Dealerloader: An incentive given to induce a retailer to purchase and display the products of
Dabur.
 Trade contest: A contest to reward retailers those sells the most product of Dabur foods and
after a specific period they are rewarded.
 Point-of-purchase displays: Extra sales tools given to retailers by Dabur to boost sales, like
danglers, posters, banners etc. helps in promoting sales.
 Push money: Also known as "spiffs". An extra commission paid to retail employees to push
products. This kind of practice Dabur hardly follows.
 Free samples: Dabur foods gives free samples are given to retailers so that they can try that
product if the product is new, or gives some discounts.
 Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.
 Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash
discounts if payment is made in cash.
 Retailer Coupons: Dabur gives some coupons like free lunch for family etc. if the retailer
buys and sells a specific amount of products.
 Higher Margins: Retailer has the highest margins and Dabur foods also have the same criteria,
and retailer can further sell the Dabur product to consumer at discount keeping his margin safe.
 Allowances for additional shelf space: Company as such does not pay anything to retailer but
gives some additional benefits for giving them shelf space which is visible to customer
whenever they enter the shop.
 Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising
Dabur products. Whenever the Stockiest sales man goes to take orders then he also
merchandises Dabur products.
 Bonus Packs: Time to time Dabur gives bonus packs to retailers like buy 10 get 2 free with
that.
 Trade Allowance: Dabur comes with different types of trade discounts from time to time, like
sometime price discounts, sometimes gifts etc.
 Free goods: Dabur gives free goods on the purchase of specific number of goods.
 Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash
at the time of purchase.
 Product sampling: Dabur organizes sampling activities for its products which are new, these
activities are generally at the place where footfall is very high.
28
 Displays: Dabur tries to give special displays to the retailers, so that they can display their
products on that.
 Point-of-Purchase Material: POP material is available in the form of stickers, banners,
displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible
purchase locations.
PROMOTIONAL SCHEMES USED FOR CONSUMERS
 Price deal: A temporary reduction in the price is given to consumer during some festival
session by Dabur foods.
 Price-pack deal: The packaging offers a consumer a certain percentage more of the product
for the same price (for example, 25 percent extra).
 Coupons: Dabur foods gives coupons during different sampling activities to consumers and it
have become a standard mechanism for sales promotions.
 Loss leader: Dabur foods temporarily reduce the price of its popular product in order to
stimulate other profitable sales.
 On-shelf coupons: Coupons are present at the shelf where the product is available.
 Rebates: Consumers are offered money back, rebate at different point of time.
 Contests/sweepstakes/games:if a customer wins some game or contest at the time of sampling
activities then they are given a discount coupon of products of Dabur foods.
 Point-of-sale displays: Displays helps the consumer easily recognize their products, Dabur
keeps a special check on the displays and merchandising of Dabur products.
 Sampling Activities: Dabur organizes different sampling actives at different retail outlets.
 Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.
 Money Refunds: Customer can claim for refund of money if they face some problem with the
product
 Contest /demos: There are different contests where customers play games and win contests.
 Festival Sales:Dabur foods come out with some special offers during festival seasons like buy
one get one free.
 Multi-packs: Dabur foods has some products in multiple packaging which are comparatively
priced lower to the products sold in a single pack.
 Trade Fairs & exhibitions: Here Dabur foods displays all range of its products, making it
easier for customers to know about product line and choose the best out of that.
 Customer feedback: Dabur foods consider its customer most important and in case of any
complaint by customer the foods department will leave all its important work and will contact
the customer.
 Contact points: Customer can contact Dabur foods by writing the mail or letter on the
addresses given at the back of Dabur products, or even they can call and visit the Dabur web
site.
29
RuralMarketing
Promotion Strategy in rural market
For attracting more customers Dabur using following Promotional tools in rural market:
• TV Commercial
• Radio
• News Paper
• POP display
• Wall panting
• Contest in Meals or Haats
• Video vans
• Sales Promotion
Regional branding strategy
Dabur is trying to capture market by launching products with a regional twist, e.g. Sivappu
Pal Podi.
Distribution Strategy
• Dealer
• Whole seller
• Agents
• Retailer
• Kirana store
Dabur uses ASTRA to boost rural sales
ASTRA- Advanced Sales Training for Retail Ascendance
Shopkeepers selling Dabur India’s consumer product would now learn marketing through
role plays
Astra training consultancy module in five languages: Bengali, Tamil, Telegu, Malayam and
Kannada.
30
Channel / Distribution strategy
31
Challengesfaced in Marketing
Problems faced in rural marketing are as follows:
Deprived people and deprived markets:
The number of people below the poverty line has not decreased in any appreciable manner.
Thus, poor people and consequently underdeveloped markets characterize rural markets. A
vast majority of rural people is tradition bound, and they also face problems such as
inconsistent electrical power, scarce infrastructure and unreliable telephone system, and
politico-business associations that hinder development efforts.
Lack of communication facilities:
Even today, most villages in the country are inaccessible during the monsoons. A large
number of villages in the country have no access to telephones. Other communication
infrastructure is also highly underdeveloped.
Transport:
Many rural areas are not connected by rail transport. Many roads have been poorly surfaced
and got severely damaged during monsoons. The use of bullock carts is inevitable even
today. Camel carts are used in Rajasthan and Gujarat in both rural and urban sectors.
Many languages and dialects:
The languages and dialects vary from state to state, region to region and probably from
district to district. Since messages have to be delivered in the local language, it is difficult for
the marketers to design promotional strategies for each of these areas. Facilities such as
phone, telegram and fax are less developed in villages adding to the communication problems
faced by the marketers.
Dispersed markets:
Rural population is scattered over a large land area. And it is almost impossible to ensure the
availability of a brand all over the country. District fairs are periodic and occasional in nature.
Manufacturers and retailers prefer such occasions, as they allow greater visibility and capture
the attention of the target audience for larger spans of time. Advertising in such a highly
heterogeneous market is also very expensive.
Low per capita Income:
The per capita income of rural people is low as compared to the urban people. Moreover,
demand in rural markets depends on the agricultural situation, which in turn depends on the
monsoons. Therefore, the demand is not stable or regular. Hence, the per-capita income is
low in villages compared with urban areas.
32
Low levels of literacy:
The level of literacy is lower compared with urban areas. This again leads to a problem of
communication in these rural areas. Print medium becomes ineffective and to an extent
irrelevant, since its reach is poor.
Different way of thinking:
There is a vast difference in the lifestyles of the people. The choice of brands that an urban
customer enjoys is not available to the rural customer, who usually has two to three choices.
As such, the rural customer has a fairly simple thinking and their decisions are still governed
by customs and traditions. It is difficult to make them adopt new practices.
Warehousing problem:
Warehousing facilities in the form of godowns are not available in rural India. The available
godowns are not properly maintained to keep goods in proper conditions. This is a major
problem because of which the warehousing cost increases in rural India.
Problems in sales force management:
Sales force is generally reluctant to work in rural areas. The languages and dialects vary from
state to state, region to region, and probably from district to district. Since messages have to
be delivered in the local language, it is difficult for sales force to communicate with the rural
consumers. Sales force finds it difficult to adjust to the rural environment and inadequate
facilities available in rural areas.
33
BUSINESS FINANCE
Gross ProfitandNetProfitMargin of thecompany
Gross Profit Margin
Formula= Gross Profit/ Net sales, (Gross profit= Net Sales- Direct Cost)
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)
Net Sales 4870.08 4349.39 3757.54
Direct Cost 3021.31 2688.96 2418.67
Gross profit 1848.77 1660.43 1338.87
GP Ratio 0.379618 0.381762 0.356316
Net Profit Margin
Formula= PAT/ Net sales
2014 (Rs in Crores)
2013 (Rs in
Crores)
2012 (Rs in Crores)
Net Sales 4870.08 4349.39 3757.54
Profits After Tax 672.1 590.98 463.24
Net profit ratio 7.24 7.35 8.11
4870.08
3021.31
1848.77
4349.39
2688.96
1660.43
3757.54
2418.67
1338.87
NET SALES DIRECT COST GROSS PROFIT
2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores)
4870.08
4349.39
3757.54
672.1 590.98 463.24
2014 (RS IN CRORES) 2013 (RS IN CRORES) 2012 (RS IN CRORES)
2014 (Rs in Crores) 2013 (Rs in Crores)
34
Direct and indirect costs of the company – change in comparisonto previous
year
Formula: (Current year- Previous year) /Previous year*100
Direct Cost 2014(Rs in Crores) 2013(Rs in Crores)
Raw Materials Consumed 2574.95 2288.34
Power & Fuel Cost 49.87 46.41
Employee Cost 331.05 294.34
Percentage Change 0.12 -
Indirect Cost 2014(Rs in Crores) 2013(Rs in Crores)
General and Administration Expenses 302.67 280.25
Selling and Distribution Expenses 718.3 621.57
Miscellaneous Expenses 14.64 9.89
Percentage Change 0.13 -
302.67
718.3
14.64
280.25
621.57
9.89
GENERAL AND ADMINISTRATION
EXPENSES
SELLING AND DISTRIBUTIONEXPENSES MISCELLANEOUS EXPENSES
2014(Rs in Crores) 2013(Rs in Crores)
2574.95
49.87 331.05
2288.34
46.41 294.34
RAW MATERIALS CONSUMED POWER & FUEL COST EMPLOYEE COST
2014(Rs in Crores) 2013(Rs in Crores)
35
Fixed assetsaddedduring theyear
Formula= Current year- Previous year
2014(Rs in Crores) 2013(Rs in Crores) Difference(Rs in
Crores)
Land: Leasehold
9.75 14.04 4.29
Land: Freehold 36.97 36.97 0
Building 334.4 360.25 25.85
Plant & Equipment 451.94 494.24 42.3
Furniture & Fixtures 39.83 45.55 5.72
Vehicles 13.71 16.34 2.63
Office Equipment 38.23 38.26 0.03
Total 924.83 1,005.65 80.82
Land:
Leasehold
Land:
Freehold
Building Plant &
Equipment
Furniture &
Fixtures
Vehicles Office
Equipment
9.75
36.97
334.4
451.94
39.83
13.71
38.23
14.04 36.97
360.25
494.24
45.55
16.34
38.26
2014(Rs in Crores) 2013(Rs in Crores)
36
WorkingCapitalrequirementfor theyears
Formula= Current Asset- Current Liabilities
2014(Rs in Crores)
Total Current Assets 1322.85
Total Current Liabilities 1141.38
Working Capital 181.47
Debt/Equity ratioof thecompanyand itsimplications
Formula= Total Debt/ Shareholder's Funds
2014 (Rs in Crores)
Total Debts 312.87
Shareholder's Funds 1902.34
Debt Equity Ratio 0.164465868
Debt equity ratio is usually calculated to find out the nature of management of the
organization, it is said that if Debt equity ratio is more than 0.5, then the management is
aggressive in nature, and vice versa. In case of Dabur it is far below 0.5, so the management
is not aggressive in nature and does not want to take any risk.
1000
1100
1200
1300
1400
Total Current Assets Total Current Liabilities
2014(Rs in Crores)
2014(Rs in Crores)
37
Topline and bottom-line
Top line is comparison of Net Sales
2014
(Rs in
Crores)
2013
(Rs in
Crores)
2012
(Rs in
Crores)
2011
(Rs in
Crores)
2010
(Rs in
Crores)
Net Sales 4870.08 4349.39 3757.54 3280.61 2856
% change 11.97156 15.751 14.53785 14.86891
Bottom line is comparison of PAT
2014 (Rs in Crores)
2013 (Rs
in Crores)
2012 (Rs
in
Crores)
2011
(Rs in
Crores)
2010 (Rs in
Crores)
PAT 672.1 590.98 463.24 471.41 433
% change 13.72635 27.57534 -1.7331 8.78776
2014 (Rs in
Crores)
2013 (Rs in
Crores)
2012 (Rs in
Crores)
2011 (Rs in
Crores)
2010 (Rs in
Crores)
4870.08
4349.39
3757.54
3280.61
2856
NET SALES
2014 (Rs in
Crores)
2013 (Rs in
Crores)
2012 (Rs in
Crores)
2011 (Rs in
Crores)
2010 (Rs in
Crores)
4870.08
4349.39
3757.54
3280.61
2856
38
DuPontAnalysis
Operating Efficiency
Formula: Net Profit/Sales*100
Assets Usage Financial Leverage
Formula: Sales/Total Assets Formula: Total assets/Shareholder fund
Return on Equity
Formula: Net Profit/ Shareholders Fund* 100
Calculation:
Operating Efficiency X Assets Usage X Financial Leverage = Return on Equity
(Net Profit/Sales*100) X (Sales/Total Assets) X (Total assets/Shareholder fund) =
(Net Profit/ Shareholders Fund* 100)
31-03-2014 31-03-2013 31-03-2012 31-03-2011 31-03-2010
Operating Efficiency 0.138 0.136 0.123 0.144 0.152
Assets use efficiency 2.198 2.315 2.254 2.237 3.323
Financial Leverage 1.164 1.2 1.279 1.332 1.147
ROE 0.353 0.377 0.355 0.428 0.578
 The net profit has detoriated from 0.152 in 2010 to 0.138 in 2015, which reflects a
bad performance, but it has increased from 0.136 in 2013, which is slightly a good
sign for the company
 Assets turnover ratio has also detoriated from 3.323 in 2010 to 2.198 in 2014, which
is not good and it indicates that the company is not properly utilizing its assets for its
operations.
 Financial leverage has though increased, which was 1.147 in 2010 to 1.164 in 2014,
but it has decreased in comparison to 2013 which was 1.2, and it has been constantly
decreasing in the last consecutive years, this means that the company is relaying on
their own fund rather than outside fund, which that the management is not ready to
take risk.
ROE has decreased from 57.8% in 2010 to 35.3% in 2014 which is a drastic drop,
and it says that the company is not doing well and the management need to pay more
focus, and operate more efficiently, though they are providing more than the expected
or benchmark return which is said to be 30% and above.
39
HUMAN RESOURCE MANAGEMENT
OrganizationStructure – to be represented via hierarchy
40
Analysis of JDs and Job Specifications posted by the companyon online-job portals
Dabur IndiaLimitedisthe fourthlargestFMCG CompanyinIndiawithinterestsinHealthcare,
Personal care and Foodproducts,hasan impressive presence inIndiaandabroad.Buildingona
legacyof qualityandexperience,today Daburhasa consolidatedturnoverof Rs.5283 crore with
powerful brandslike DaburAmla, DaburChyawanprash,Vatika,Hajmola,Anmol and Real.The
companyisgrowingat a fastpace andhas ambitiousplansaheadforsustainedgrowth
Designation SalesOfficer- ModernTrade - Pune
JobDescription * Primaryandsecondarysales - ensuringconsistencyinsales
* Enablingeffectivecoordinationamongstteammembers - specializedfor
stockiestmanagement,retailermanagementandmerchandisers
* Preparingdeliverablesandtargetsforall teammembers
* Drivingteammemberstoachievementof targetsinline withthe activities,
focus
areas of the organization.
* SalesForecastingatmonthlyandquarterlylevel.
* DistributionManagement - Billing,stocks&Collections
* ProductAwarenessBuilding,Visibility&Merchandising
* MIS and MonitoringSalesReport
* AnalyzingandhandlingCompetitionandcompetitoractivities.
* ResolvingCustomerComplaintsandgrievances
* Training,Leading&motivatingthe DistributorsSalesman/Team
* Ensuringtimelyreportingthroughteamincompanyprescribedformats.
* Onjob trainingandinvolvementininductionof teammembers.
* HandlingDistrictSalesmaneffectively andensuringtheirdevelopment.
DesiredProfile Please refertothe Jobdescriptionabove
Experience 3 - 8 Years
IndustryType FMCG / Foods/ Beverage
Role SalesExecutive/Officer
Functional Area Sales,Retail,BusinessDevelopment
Education UG - Any Graduate - Any Specialization
PG - Any Postgraduate - Any Specialization, Post-Graduation Not
Required
Doctorate - Any Doctorate - Any Specialization, Doctorate Not Required
41
Compensation: 4,00,000 - 6,00,000 P.A
Location Pune
Keywords MarketingBusinessDevelopmentInstitutional SalesTerritoryDevelopment
SecondarySalesWholesale BusinessPlanningUnileverNestleMarico Britannia
Mars ModernTrade
Contact HR Manager
Dabur IndiaLimited
JobPosted 2015-04-17 15:24:55.0
42
Training needsof the company
Effective training or development depends on knowing what is required - for the individual,
the department and the organization as a whole. With limited budgets and the need for cost-
effective solutions, all organizations need to ensure that the resources invested in training are
targeted at areas where training and development is needed and a positive return on the
investment is guaranteed. Effective TNA is particularly vital in today's changing workplace
as new technologies and flexible working practices are becoming widespread, leading to
corresponding changes in the skills and abilities needed.
43
Organizationculture (asper employee reviews or research findings)
Employee reviews:
44
45
CONCLUSION
After completing the entire report, what I can say, is that DABUR focuses on innovation and
promotion of its brands, which is highly required in current scenario, so they spend a lot on
media advertisement and sponsorship, to keep a visibility in the market, but if we look at the
financial statistics we will see, that they have low debt equity ratio, which says that the
management is now aggressive and in not looking for expansion as of now. Their ROE has
decreased which states that they are performing not well and not utilizing their resources
properly. And as far the organization culture, they have a good culture and environment for
its employees, gives respect to them, and indulge them in various activities, which motivate
them to work hard and give a high productivity for the company.
DABUR is relying too much on their healthcare brand which is good, as the industry forecast
is good and is predicted to incline in the future, so if DABUR wants to progress and retain
their position in the market then they will have to focus on utilizing their resources, and
reduce wastage and cost of product, so that the can offer more affordable price and increase
sales as well as profit.
Overall DABUR is doing well as for my opinion.
46
BIBLIOGRAPHY
 http://www.mbaskool.com/brandguide/food-and-beverages/479-Dabur-
chyawanprash.html
 www.Dabur.com/Annual-Reports-2013-14
 http://jobsearch.naukri.com/job-listings-Sales-Officer-Modern-Trade-Pune-Dabur-
India-Limited-Pune-3-to-8-years-
170415003462?xp=4&qp=Dabur%20india&srcPage=s
 http://viragbrand.blogspot.in/2012/12/dabur-chyawanprash-vs-himani-sona.html
 http://fmcgmarketers.blogspot.in/2008/07/fmcg-growth-drivers-and-category-
trends.html
 http://www.aceanalyser.com/
 IBEF.org
 http://www.glassdoor.co.in/Reviews/DABUR-Reviews-E40052.htm

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Presentation on Chyawanprush of Dabur India Ltd

  • 2. 1 ACKNOWLEDGEMENT I, Mr. Saikat Bhowmick, deem, it is a pleasure and privilege for me to work under the guidance of Mr. Raman Preet, Ex. Director of Pune Institute of business management. I would like to express my gratitude and regards to him for rendering me her thoughtful and rational approach regarding this project work, which enable me to complete it. I would also like to thank our honorable Principal Director, Mr. Kumar Iyer , honorable Assistant Director, Mr. Pranav Nagpurkar and my mentor, Mr. Ashish Bhargava of Pune Institute of business management , for offering me the proper environment, internet facilities and overall administration which are very much suitable for my study and project work. I would also render my thanks to all the faculty members for helping me to complete and submit my project work. Date: - ……………………… …………………………………… Place: - ……………………... PGDM, 2nd SEM
  • 3. 2 SECTORAL INFORMATION ............................................................................................................ 4 Worldwide sectorial Contribution to the World Economy.......................................................... 4 GDP % Contribution to the Indian Economy .............................................................................. 6 Historical Growth/Degrowth Pattern observed in the last 5 years.............................................. 7 Porter’s Five Forces Model .......................................................................................................8 COMPANY INFORMATION............................................................................................................ 9 Promoters of the Company and company snapshot...................................................................9 Market Share of the company ................................................................................................ 10 Competitor analysis................................................................................................................ 11 Product offered by the company............................................................................................. 11 PRODUCT................................................................................................................................... 12 MARKETING STRATEGY .............................................................................................................. 13 PEST analysis.......................................................................................................................... 13 SWOT analysis of company..................................................................................................... 16 Segmentation, Target, Positioning.......................................................................................... 16 BCG matrix of Dabur............................................................................................................... 17 Product Life Cycle of Dabur..................................................................................................... 18 Comparison of sales of company for past 3 years .................................................................... 19 Growth drivers....................................................................................................................... 19 Demography study survey of consumers. ............................................................................ 21 Branding and positioning.................................................................................................... 23 Advertising......................................................................................................................... 25 Promotion or communication strategy................................................................................ 26 Rural Marketing.................................................................................................................. 29 Channel / Distribution strategy ........................................................................................... 30 Challenges faced in Marketing ............................................................................................ 31 BUSINESS FINANCE..................................................................................................................... 33 Gross Profit and Net Profit Margin of the company................................................................. 33 Fixed assets added during the year......................................................................................... 35 Working Capital requirement for the years ............................................................................. 36 Debt/Equity ratio of the company and its implications............................................................ 36 Topline and bottom-line......................................................................................................... 37
  • 4. 3 DuPont Analysis..................................................................................................................... 38 HUMAN RESOURCE MANAGEMENT............................................................................................ 39 Organization Structure – to be represented via hierarchy........................................................ 39 Analysis of JDs and Job Specifications posted by the company on online-job portals................ 40 Training needs of the company............................................................................................... 42 Organization culture (as per employee reviews or research findings)....................................... 43 CONCLUSION ............................................................................................................................. 45 BIBLIOGRAPHY........................................................................................................................... 46
  • 5. 4 SECTORAL INFORMATION Worldwidesectorial Contributionto theWorld Economy India is a consumer driven market, with consumer spending in the country projected to more than double by 2025. These days, the Indian consumer segment, broadly categorized into urban and rural markets, is attracting marketers from across the globe. Global corporations see India as a key market for the future. The growth in the country's consumer market is largely driven by a young demographic and rising disposable income. If India sustains its current pace of growth for the foreseeable future, average household incomes will likely triple over the next twenty years and the country will become the world's fifth largest consumer economy by 2025, as per a study by the McKinsey Global Institute (MGI). The Government of India has also played a significant role in the growth of the Indian consumer segment. It has brought about policies which have attracted foreign direct investment (FDI) and consequently boosted economic growth. India has the potential to become the world's largest middle class consumer market with an aggregated consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte titled 'India matters: Winning in growth markets'. Driven by growing incomes and increasing affordability, the consumer durables market is projected to expand at a compound annual growth rate (CAGR) of 14.8 per cent, from US$ 7.3 billion in FY12 to US$ 12.5 billion in FY15. Online retailing, both direct and via marketplaces, will grow threefold to become an Rs 50,000 crore (US$ 8.26 billion) industry by 2016, driven by a 50-55 per cent per year growth over the next three years, as per rating agency Crisil. The growth of internet retail is also expected to boost offline retail stores. The Gross Domestic Product (GDP) in India was worth 1876.80 billion US dollars in 2013. The GDP value of India represents 3.03 percent of the world economy. GDP in India averaged 517.27 USD Billion from 1970 until 2013, reaching an all-time high of 1876.80 USD Billion in 2013 and a record low of 63.50 USD Billion in 1970. GDP in India is reported by the World Bank Group. http://www.tradingeconomics.com/india/gdp
  • 7. 6 GDP % Contribution to the Indian Economy The overall fast moving consumer goods (FMCG) market is expected to increase at a compound annual growth rate (CAGR) of 14.7 per cent to touch US$ 120.4 billion in the period 2015-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to US$ 100 billion during 2015-2025. The market size of the Indian FMCG sector is expected to reach US$ 135 billion by 2020 from US$ 82.9 billion in 2013. It is also the fourth largest sector in the Indian economy and has grown at an annual average of about 11 per cent over the last decade. Food products, the leading market segment with 43 per cent of the overall market revenue together with personal care at 22 per cent make up two-thirds of the sector's revenue. The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major growth drivers in this sector. The government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State Advised Price (SAP). There is a lot of scope for growth in the FMCG sector from rural markets with consumption expected to grow in these areas as penetration of brands increases. Also, with rising per capita income, which is projected to expand at a CAGR of 7.8 per cent over the period 2015- 19, the FMCG sector is anticipated to witness some major growth. https://www.cia.gov/library/publications/the-world-factbook SECTOR-WISE PERCENTAGE CONTRIBUTION IN GDP
  • 9. 8 Porter’sFiveForcesModel Direct competitors Existing-Baidhyanath, Himani, zandu, Himalaya Chyavanaprasha Sibling-sugar free Chyawanprash, junior chyawan Potential Entrants Ranbaxy, Mayer Competitive Rivalry (indirect competitors) Bournvita, Horlicks, Boost, Hamdard Substitutes Homeopathic, ayurvedic INDUSTRY COMPETITORS
  • 10. 9 COMPANY INFORMATION Promotersof theCompanyandcompanysnapshot Type Public company (NSE, BSE) Industry FMCG, Health Care Founded 1884 Founder Dr. S K Burman Headquarters Dabur Tower, Kaushambi, Sahibabad, Ghaziabad - 201010 (UP), India Area served Worldwide Key people Dr. Anand Burman (Chairman) Mr. Amit Burman (Vice-chairman) Mr. Sunil Duggal (CEO) Products Dabur Amla, Dabur Chyawanprash, Vatika, Dabur Honey, Fem, Hajmola & Real fruit juice Number of employees 6,154 (2012-13) Divisions Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Jaquline Inc. (USA) Subsidiaries Dabur International Fem Care Pharma Pune Pistons Website Dabur.com
  • 11. 10 Promoters of the company Name of the Shareholder % holding Chowdry Associates 12.41 VIC Enterprises Pvt Ltd 12.4 Gyan Enterprises Pvt Ltd 11.51 Puran Associates Pvt Ltd 10.77 Ratna Commercial Enterprises Pvt Ltd 8.85 Milky Investment & Trading Company 6.04 Burmans Finvest Pvt Ltd 3.02 Windy Investments Pvt Ltd 1.51 M B Finmart Pvt Ltd 1.51 Anand Chand Burman 0.04 Gauri Tandon 0.04 Pradip Burman 0.02 Asha Burman 0.01 Indira Burman 0.01 Sidharth Burman 0.02 Market Share of the company ITC 36% HUL 34% Dabur India 6% Godrej Consumer 5% Colgate 4% Marico 4% Emami 2% P and G 2% Gillette India 2% Godrej Ind 2% Others 3%
  • 12. 11 Competitoranalysis Name Market share in % ITC 35.92 HUL 33.66 Dabur India 5.85 Godrej Consumer 4.90 Colgate 4.30 Marico 4.42 Emami 2.05 P and G 2.46 Gillette India 2.10 Godrej India 1.75 Others 2.58 Productoffered bythecompany Category of products Dabur’s Share Main Competitors FruitJuice 58% Real andActive Tropicana. FruitDrinks (coolers) 1% Coolers Frooti,Mazza, and Slice. Hair oil CoconutBase 6.4% Vatika HUL, Marico. ShampooVatika 7.1% HUL and P&G. Hair Care (overall) 27% HUL, P&G and Himalaya. Chyawanprash 64% Sona Chandi, ZanduandHimalaya. Honey 40% Emami,Hamdard and local players. Digestive 37% Paras and otherlocal players.
  • 13. 12 PRODUCT 'Dabur Chyawanprash, the trusted name for your entire family' Dabur Chyawanprash  Derived from 2,500-year-old Ayurvedic formula  Totally chemical-free, natural and safe  Combination of herbs and plant extracts in a base of Amla fruit pulp  Refined by Dabur to provide traditional goodness with best quality Dabur Chyawanprash has a tangy sweet-sour taste and the consistency of jam. It can be taken directly or with milk and as bread spread. In winters, have a glass of warm milk after having Chyawanprash. In summers, have a glass of cold milk after having Chyawanprash. Evolution of Dabur Chyawanprash
  • 14. 13 MARKETING STRATEGY PESTanalysis POLITICAL & LEGAL FACTOR Marketing decisions are strongly affected by development in the political & legal environment. This environment is composed of laws, government agencies, and pressure groups that influence and limit various organization and individuals. Sometimes this law also creates new opportunities for business. ECONOMIC FACTOR OPPORTUNITY It is apt to say that not a day in the lives of people is complete without using Dabur’s product and it is the company’s commitment to evolve with the changing needs of its customers that has helped a 125 year old Dabur emerge a favorite among even the modern Indian consumer and win market share across categories. Dabur Chyawanprash, which is the flagship brand in this category, recorded goods gains in 2007-08 to 64.1% in 2013-14 (volume share as per A C Nielsen). People power Dabur India employs about 3000 employs across all areas of operations. The company has a team of well qualified scientists, Ayurvedic doctors, pharmacist culture specialist to drive its R&D. A state-of-the-art Greenhouse facility has been set up at Banepa, which has the capability to produce 5-6 million saplings of medicinal plants per annum. All the required climatic parameters for uniform growth of saplings of the medicinal plants like temperature, humidity etc. are controlled by automatic computer systems. Besides helping preserve natural resources, this initiative has also gone a long way in generating employment and income for local people and improving the socio-economic conditions of local populace in the Himalayan Kingdom. A vibrant culture, average employee age of 31-32 years, direct recruitment from some of the top B-schools in the country under the young managers’ Development program and conduct of competency. Development centers for elevation are some of the other important HR initiatives of the company. As of march 2009 the company employs 4,222 people in various parts of its business.
  • 15. 14 SOCIAL Strength Companies are promoting Chyawanprash as an immune booster, which can be consumed by anybody without the prescription of a doctor. These marketing tactics entices people to buy Chyawanprash as an OTC Product. Most of these consumers are not aware of the fact that it is a medicine which also helps them fight with diseases 1. Youthfulness 2. Health Conscious 3. Mothers – intangible Weakness 1. Children prefer bournvita, horlicks complain, boost because of their taste 2. It sells only during winter season TECHNOLOGICAL FACTOR Opportunity Production & technology center is being set, to ensure that the brand maintains the highest level of quality & innovation. Dabur Chyawanprash is adding technology for launching its new product of Chyawanprash, the sugar free Chyawanprash for diabetes patient and the Dabur Chyawan junior in chocolate flavor for children, with the aim of improving customer experience and increasing supply chain efficiency. Dabur Chyawanprash: using technology to good effect When input costs rise, you usually expect this show up in the profit margin. But companies now have many sophisticated tools in their armory to manage their material costs. Given its unique basket of herbal FMCG products, many of Dabur India's raw materials, which include such items as herbs, spices and honey, are seasonal and have to be bought from various sources. To complicate matters, prices of inputs such as sugar and vegetable oils, and packaging material went through the roof in 2003-04. Yet Dabur India says it successfully cut procurement costs last year, thanks to technology. In December 2002, Dabur signed up with Free Markets, a global firm which provides IT - enabled solutions that help companies streamline their procurement process. IT-enabled sourcing solutions or "e-sourcing" as it is commonly called, typically allows a company to link up all its suppliers online, rank them on the basis of costs and performance; and procure materials through bidding "events" conducted over the Net.
  • 16. 15 In Dabur's case, the technology from Free Markets has significantly cut procurement costs, reduced the cycle time for purchases and shortened the negotiation process for buying materials, claims Mr. Jude Magima, the company's Vice-President for Corporate Procurement and Planning. In 2003-04, Dabur procured Rs 210 crore worth of materials, half of its total raw material spend, through the e-sourcing channel. The e-sourcing initiative has not been restricted to non-critical inputs alone. In fact, the company says a whole host of herbal raw materials including saffron, spices and essential oils, have been procured online. The company has also e-sourced a good bit of its services and logistics, not to talk of the hardware and packing materials. These initiatives have helped pep up Dabur's profit growth, despite the rising commodity prices. Threat Ayurveda cannot compete with modern science in many emergencies. But in an environment of over-drugging, chronic and degenerative ailments, new viruses and super bugs outstripping new cures. Ayurveda does promise real long-term benefits. Sometimes as substitutes, sometimes as effective support therapy and preventives, at a negligible social cost.
  • 17. 16 SWOTanalysis of company SWOT Analysis Strength 1.Strong Dabur brand name 2.Excellent branding and advertising 3.Excellent distribution and availability Weakness 1.Declining popularity in the urban areas Opportunity 1.Leverage successful brand Dabur 2.Advertise more 3.Buy out competition Threats 1. Threat from local medicinal herbs in rural areas 2.People preferring international health brands Segmentation,Target,Positioning STP Segment For all age groups who want high nutrition Target Group All age groups Lower, middle class people Positioning Protects from everyday infection and cold
  • 18. 17 BCG matrixof Dabur Dabur Red tooth paste Real Fruit Juice Gilabari FEM Beauty Care Balsara Hajmola Chawayanprash Dabur Amla hair oil Pudin Hara Dabur Glucose Honitos Dabur Balm strong Dabur Lal powder
  • 19. 18 ProductLifeCycleof Dabur Honitos Dabur Balm strong Dabur Lal powder Dabur Red tooth paste Real Fruit Juice Gulabari Hajmola Chyawanprash Dabur Amla hair oil Pudin Hara Dabur Glucose FEM Beauty Care Balsara
  • 20. 19 Comparison of salesof companyforpast3 years 2014 2013 2012 Net Sales 4870.08 4349.39 3757.54 % Change in Net Sales 0.025744 0.030805 0.034914 Growth drivers  Disposable Income: There is increase in disposable income, observed in both rural and urban consumers, which is giving opportunity to many rural consumers to shift from traditional unorganized unbranded products to branded FMCG products and urban fraternity to splurge on value added and lifestyle products. The increasing salaries, along with rising trend of perks in the corporate sector at regular intervals, have increased people’s spending power. As per some research, there is a high correlation between Disposable per capita and HPC per capita.  Organized Retail: The emergence of organized retail have led to more variety with ease in browsing, opportunity to compare with different products in a category, one stop destination (entertainment, food and shopping) etc., which is playing an important role in bringing boom in the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space, which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card and organized retail trend picks up, people won’t think much while buying and buy more. 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 2014 2013 2012 Net Sales
  • 21. 20  Distribution Depth - Rural Penetration: There are 5500 towns and 6.38 Lacs villages with 2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban India, many FMCG companies are devising strategies for targeting rural consumers in a big way. Many FMCG companies are focusing on increasing their distribution network to penetrate with a step by step plan. This is the reason that FMCG urban market size has dropped from 50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was 19% and 52% respectively for the year 2006- 07. As per FICCI, the FMCG market size for urban, semi-urban and rural for year 2007- 08 was expected to be 57%, 21% and 22%, which clearly shows that rural market is the growth engine for FMCG growth. Though the urban markets are growing too, the incremental addition in consumer’s households is much more in rural space as compared to urban markets. The planned development of roads, ports, railways and airports, will increase FMCG penetration in the long term. 180 million rural and semi- urban people’s attention has already been diverted towards FMCG products, according to latest estimates released by industry chamber, Assocham in 2008. The estimated number of households using FMCG products in rural India has grown from 131 million in 2004 to 140 million in 2007, according to market research company IMRB. Over 70% sale of FMCG products is made to middle class households and over 50% of middle class is in rural India.  Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was driven by new avenues of expenditure for growing consumer income such as consumer durables, entertainment, mobiles, motorbikes etc. Now, as many consumers have already upgraded, their income is being directed towards pampering themselves.  Favorable Indian Economy & Demographics: 45% people in India are under 20 years of age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase). GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a total will supersede strivers and will be dominated by aspirers, as per NCAER.
  • 22. 21 Demographystudysurvey of consumers. 1. Age a. Kids (5 -12 years) a. Teenagers (13 -19 years) b. Adults (20 and above) 2. Psychographic a. All class people 3. Behavioral a. Benefits: healthy life style Favorable Indian Economy & Demographics: 45% people in India are under 20 years of age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase). GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a total will supersede strives and will be dominated by aspirers, as per NCAER. Source:Simplify360– A Social MediaAnalyticsTool
  • 23. 22 Dabur is mainly targeting children and old aged, who are basically from lower middle, middle and high income background, as it is a health supplement product, and Indians are now more health conscious.
  • 24. 23 Branding and positioning Dabur Chyawanprash: - Dabur is roped out with two campaigns one is on “immune India School Challenge 2012” and another is “Mother’s army” where Indian Cricket Skipper M.S. Dhoni is endorsing brand & conveying message that Dabur Chyawanprash having 48 Ayurvedic ingredients which gives 3 times more immunity. Dabur Chyawanprash Immune India School Challenge 2012 campaigning strategy is that they are looking for most immune school in India where School having strong immunity children. The campaigning brief is that children are discussing in science laboratory & suddenly lights gone. Principal requesting because it is question of school image. And, children are gathering, started work scientifically, joined wire with bicycle, continuously paddling in the rain with strong energy and lights come. At the end of campaign, M.S.Dhoni feel proud on children & conveying message that they (Dabur Chyawanprash) is looking for those kind of school whose having such strong & energetic children. Participate in Dabur Chyawanprash Immune India School Challenge 2012 & make your school as “Most Immune School in India”. Here, it is clearly brand activation & promotion towards school instead of children. It has found little lack in strategy that if brand is looking for best immune school whose having strong & energetic children, then what about other school? Shall it consider that those school’s children having not strong immunity which will not come in challenge or which will not going to be participate? It may give negative impact in mind of children & make down children confidence. It should be required to promote different way where children can get confidence, attract towards brand & feel real strong. Overall film content writing, visuals, sound & music background are really appreciable that gives energy & create enthusiasm. Another campaign is on Mother’s army which includes various fruits & vegetable. A boy is going to school & whenever he is going, his mother’s army are following boy & give him protection. Suddenly rain is falling down, army are feeling uncomfortable & taking protection under umbrella. At the end of campaign, Indian Skipper M.S.Dhoni is conveying message that you have lack of immunity in your army which provides only Dabur Chyawanprash. Dabur Chyawanprash having 48 kinds of ayurvedic herbs/ingredients which are provides 3 times more immunity where it can fight against diseases. Now, it’s complete mother’s army (With Dabur
  • 25. 24 Chyawanprash). Conveying simply message that keep strong army i.e. immunity where you can fight easily against disease. Overall, Dabur Chyawanprash is mainly focusing on Immunity system, as well as it has also made change in packing. The new packing covered with “3 times more immunity”. Himani Sona chandi Chyawanprash: - Sona chandi Chyawanprash is also roped out with two campaigns that conveying message Sona (Gold) gives physically energy (i.e. strong immune system) & Chandi (Silver) gives brain energy. It is very much challengeable task against rival brand Dabur Chyawanprash that Sona chandi Chyawanprash brand is campaigning without any celebrity which was being endorsed by Bollywood star Shahrukh khan previously. Punch line: - Kabiliyat bane Kamiyabi (Skill/Talent becomes Success)” Brand is come out with different concept which is being successful. The punch line is focus on “Kabiliyat bane Kamiyabi (Skill/Talent becomes Success)”. Overall, concept has been taken from the movie 3 Idiots where Starr Aamir Khan is being conveying dialogue that “Don’t go behind success, Go towards Talent/Skill. Then Success will come forcefully behind you”. So, same concept has been used over here. Last year, brand was promoting as “jeeto jindagi ki har Jung (Win life’s each moment)”. By this punch line, consumers shall quickly remind the movie 3 idiots & perceived like concept is taken from movie, it has not created by own way. Overall, both brands are mainly trying to take position on immunity by executing various ways.
  • 26. 25 Advertising Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Many advertisements are designed to generate increased consumption of those products and services through the creation and reinforcement of "brand image" and "brand loyalty". For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. Dabur has created the huge brand image and a vast product following by associating mega- names like Amitabh Bachchan, Rani Mukherjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150 crore just on the advertising of Real “Fruit Juice” and “Real Active”. So far the company has been successful in this mission as the people now know the brand and ask for its products by name. Celebrity endorsement: - Dabur Chyawanprash is being endorsing by Indian cricket Skipper M.S.Dhoni. Himani Sona (Gold) chandi (Silver) Chyawanprash was being endorsing by Bollywood star Shahrukh Khan. But, on this time it has already been started campaign without any celebrity.
  • 27. 26 Promotionor communication strategy SALES PROMOTIONAL TOOLS OF DABUR FOODS  Price promotions  Coupons  Gift with purchase  Competitions and prizes  Money refunds  Point-of-sale displays  Free samples  Contest /demos  Festival Sales  Retailer coupons  Multi-packs  Special price for twos  Allowances for additional shelf space  Merchandising  Sales contest  Incentives  Awards & prizes  Premium gifts  Sales Meetings  Samples/product sampling  Contests & Sweepstakes  Exchange Offers/buyback  Refund / Rebate  Price / Bonus Packs PROMOTIONAL SCHEMES USED FOR STOCKIESTS Encourage stockiest to participate in displays and sales contests. Higher Margins: Tries to give higher margins to stockiest so that they don’t lose interest in the product and can earn good profits after meeting all the expenses. Sales Contests: Sales contest are held annually and whichever stockiest has the best sales record a prize is given to him, like free holiday to the family etc. Allowances: Special allowances are given to both stockiest and stockiest sales man if they achieve their monthly target. Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some money on the promotional schemes, like conducting a sampling activity. Danglers and Posters: Company gives posters and danglers to stockiest which are further pasted and distributed by stockiest sales man. Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by the company for stockiest sales man so that they don’t face any problem while placing their products and taking orders from retailers. Annual Gathering: All the stockiest meet under one roof at least once a year and then the stockiest whose performance was best in term of sales is awarded.
  • 28. 27 Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once a year. Gathering While Launch of New Products: All the stockiest and their sales man gather when there is a launch of a new product. Company gives free samples & gifts to stockiest and their sales man. Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU. Free danglers and posters for publicity. Buyback: Dabur foods have a scheme of replacement of products which gets expired. PROMOTIONAL SCHEMES USED FOR RETAILERS  Trade allowances: Short term incentives are offered to induce a retailer to stock up more Dabur products.  Dealerloader: An incentive given to induce a retailer to purchase and display the products of Dabur.  Trade contest: A contest to reward retailers those sells the most product of Dabur foods and after a specific period they are rewarded.  Point-of-purchase displays: Extra sales tools given to retailers by Dabur to boost sales, like danglers, posters, banners etc. helps in promoting sales.  Push money: Also known as "spiffs". An extra commission paid to retail employees to push products. This kind of practice Dabur hardly follows.  Free samples: Dabur foods gives free samples are given to retailers so that they can try that product if the product is new, or gives some discounts.  Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.  Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash discounts if payment is made in cash.  Retailer Coupons: Dabur gives some coupons like free lunch for family etc. if the retailer buys and sells a specific amount of products.  Higher Margins: Retailer has the highest margins and Dabur foods also have the same criteria, and retailer can further sell the Dabur product to consumer at discount keeping his margin safe.  Allowances for additional shelf space: Company as such does not pay anything to retailer but gives some additional benefits for giving them shelf space which is visible to customer whenever they enter the shop.  Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising Dabur products. Whenever the Stockiest sales man goes to take orders then he also merchandises Dabur products.  Bonus Packs: Time to time Dabur gives bonus packs to retailers like buy 10 get 2 free with that.  Trade Allowance: Dabur comes with different types of trade discounts from time to time, like sometime price discounts, sometimes gifts etc.  Free goods: Dabur gives free goods on the purchase of specific number of goods.  Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at the time of purchase.  Product sampling: Dabur organizes sampling activities for its products which are new, these activities are generally at the place where footfall is very high.
  • 29. 28  Displays: Dabur tries to give special displays to the retailers, so that they can display their products on that.  Point-of-Purchase Material: POP material is available in the form of stickers, banners, displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible purchase locations. PROMOTIONAL SCHEMES USED FOR CONSUMERS  Price deal: A temporary reduction in the price is given to consumer during some festival session by Dabur foods.  Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).  Coupons: Dabur foods gives coupons during different sampling activities to consumers and it have become a standard mechanism for sales promotions.  Loss leader: Dabur foods temporarily reduce the price of its popular product in order to stimulate other profitable sales.  On-shelf coupons: Coupons are present at the shelf where the product is available.  Rebates: Consumers are offered money back, rebate at different point of time.  Contests/sweepstakes/games:if a customer wins some game or contest at the time of sampling activities then they are given a discount coupon of products of Dabur foods.  Point-of-sale displays: Displays helps the consumer easily recognize their products, Dabur keeps a special check on the displays and merchandising of Dabur products.  Sampling Activities: Dabur organizes different sampling actives at different retail outlets.  Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.  Money Refunds: Customer can claim for refund of money if they face some problem with the product  Contest /demos: There are different contests where customers play games and win contests.  Festival Sales:Dabur foods come out with some special offers during festival seasons like buy one get one free.  Multi-packs: Dabur foods has some products in multiple packaging which are comparatively priced lower to the products sold in a single pack.  Trade Fairs & exhibitions: Here Dabur foods displays all range of its products, making it easier for customers to know about product line and choose the best out of that.  Customer feedback: Dabur foods consider its customer most important and in case of any complaint by customer the foods department will leave all its important work and will contact the customer.  Contact points: Customer can contact Dabur foods by writing the mail or letter on the addresses given at the back of Dabur products, or even they can call and visit the Dabur web site.
  • 30. 29 RuralMarketing Promotion Strategy in rural market For attracting more customers Dabur using following Promotional tools in rural market: • TV Commercial • Radio • News Paper • POP display • Wall panting • Contest in Meals or Haats • Video vans • Sales Promotion Regional branding strategy Dabur is trying to capture market by launching products with a regional twist, e.g. Sivappu Pal Podi. Distribution Strategy • Dealer • Whole seller • Agents • Retailer • Kirana store Dabur uses ASTRA to boost rural sales ASTRA- Advanced Sales Training for Retail Ascendance Shopkeepers selling Dabur India’s consumer product would now learn marketing through role plays Astra training consultancy module in five languages: Bengali, Tamil, Telegu, Malayam and Kannada.
  • 32. 31 Challengesfaced in Marketing Problems faced in rural marketing are as follows: Deprived people and deprived markets: The number of people below the poverty line has not decreased in any appreciable manner. Thus, poor people and consequently underdeveloped markets characterize rural markets. A vast majority of rural people is tradition bound, and they also face problems such as inconsistent electrical power, scarce infrastructure and unreliable telephone system, and politico-business associations that hinder development efforts. Lack of communication facilities: Even today, most villages in the country are inaccessible during the monsoons. A large number of villages in the country have no access to telephones. Other communication infrastructure is also highly underdeveloped. Transport: Many rural areas are not connected by rail transport. Many roads have been poorly surfaced and got severely damaged during monsoons. The use of bullock carts is inevitable even today. Camel carts are used in Rajasthan and Gujarat in both rural and urban sectors. Many languages and dialects: The languages and dialects vary from state to state, region to region and probably from district to district. Since messages have to be delivered in the local language, it is difficult for the marketers to design promotional strategies for each of these areas. Facilities such as phone, telegram and fax are less developed in villages adding to the communication problems faced by the marketers. Dispersed markets: Rural population is scattered over a large land area. And it is almost impossible to ensure the availability of a brand all over the country. District fairs are periodic and occasional in nature. Manufacturers and retailers prefer such occasions, as they allow greater visibility and capture the attention of the target audience for larger spans of time. Advertising in such a highly heterogeneous market is also very expensive. Low per capita Income: The per capita income of rural people is low as compared to the urban people. Moreover, demand in rural markets depends on the agricultural situation, which in turn depends on the monsoons. Therefore, the demand is not stable or regular. Hence, the per-capita income is low in villages compared with urban areas.
  • 33. 32 Low levels of literacy: The level of literacy is lower compared with urban areas. This again leads to a problem of communication in these rural areas. Print medium becomes ineffective and to an extent irrelevant, since its reach is poor. Different way of thinking: There is a vast difference in the lifestyles of the people. The choice of brands that an urban customer enjoys is not available to the rural customer, who usually has two to three choices. As such, the rural customer has a fairly simple thinking and their decisions are still governed by customs and traditions. It is difficult to make them adopt new practices. Warehousing problem: Warehousing facilities in the form of godowns are not available in rural India. The available godowns are not properly maintained to keep goods in proper conditions. This is a major problem because of which the warehousing cost increases in rural India. Problems in sales force management: Sales force is generally reluctant to work in rural areas. The languages and dialects vary from state to state, region to region, and probably from district to district. Since messages have to be delivered in the local language, it is difficult for sales force to communicate with the rural consumers. Sales force finds it difficult to adjust to the rural environment and inadequate facilities available in rural areas.
  • 34. 33 BUSINESS FINANCE Gross ProfitandNetProfitMargin of thecompany Gross Profit Margin Formula= Gross Profit/ Net sales, (Gross profit= Net Sales- Direct Cost) 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) Net Sales 4870.08 4349.39 3757.54 Direct Cost 3021.31 2688.96 2418.67 Gross profit 1848.77 1660.43 1338.87 GP Ratio 0.379618 0.381762 0.356316 Net Profit Margin Formula= PAT/ Net sales 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) Net Sales 4870.08 4349.39 3757.54 Profits After Tax 672.1 590.98 463.24 Net profit ratio 7.24 7.35 8.11 4870.08 3021.31 1848.77 4349.39 2688.96 1660.43 3757.54 2418.67 1338.87 NET SALES DIRECT COST GROSS PROFIT 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) 4870.08 4349.39 3757.54 672.1 590.98 463.24 2014 (RS IN CRORES) 2013 (RS IN CRORES) 2012 (RS IN CRORES) 2014 (Rs in Crores) 2013 (Rs in Crores)
  • 35. 34 Direct and indirect costs of the company – change in comparisonto previous year Formula: (Current year- Previous year) /Previous year*100 Direct Cost 2014(Rs in Crores) 2013(Rs in Crores) Raw Materials Consumed 2574.95 2288.34 Power & Fuel Cost 49.87 46.41 Employee Cost 331.05 294.34 Percentage Change 0.12 - Indirect Cost 2014(Rs in Crores) 2013(Rs in Crores) General and Administration Expenses 302.67 280.25 Selling and Distribution Expenses 718.3 621.57 Miscellaneous Expenses 14.64 9.89 Percentage Change 0.13 - 302.67 718.3 14.64 280.25 621.57 9.89 GENERAL AND ADMINISTRATION EXPENSES SELLING AND DISTRIBUTIONEXPENSES MISCELLANEOUS EXPENSES 2014(Rs in Crores) 2013(Rs in Crores) 2574.95 49.87 331.05 2288.34 46.41 294.34 RAW MATERIALS CONSUMED POWER & FUEL COST EMPLOYEE COST 2014(Rs in Crores) 2013(Rs in Crores)
  • 36. 35 Fixed assetsaddedduring theyear Formula= Current year- Previous year 2014(Rs in Crores) 2013(Rs in Crores) Difference(Rs in Crores) Land: Leasehold 9.75 14.04 4.29 Land: Freehold 36.97 36.97 0 Building 334.4 360.25 25.85 Plant & Equipment 451.94 494.24 42.3 Furniture & Fixtures 39.83 45.55 5.72 Vehicles 13.71 16.34 2.63 Office Equipment 38.23 38.26 0.03 Total 924.83 1,005.65 80.82 Land: Leasehold Land: Freehold Building Plant & Equipment Furniture & Fixtures Vehicles Office Equipment 9.75 36.97 334.4 451.94 39.83 13.71 38.23 14.04 36.97 360.25 494.24 45.55 16.34 38.26 2014(Rs in Crores) 2013(Rs in Crores)
  • 37. 36 WorkingCapitalrequirementfor theyears Formula= Current Asset- Current Liabilities 2014(Rs in Crores) Total Current Assets 1322.85 Total Current Liabilities 1141.38 Working Capital 181.47 Debt/Equity ratioof thecompanyand itsimplications Formula= Total Debt/ Shareholder's Funds 2014 (Rs in Crores) Total Debts 312.87 Shareholder's Funds 1902.34 Debt Equity Ratio 0.164465868 Debt equity ratio is usually calculated to find out the nature of management of the organization, it is said that if Debt equity ratio is more than 0.5, then the management is aggressive in nature, and vice versa. In case of Dabur it is far below 0.5, so the management is not aggressive in nature and does not want to take any risk. 1000 1100 1200 1300 1400 Total Current Assets Total Current Liabilities 2014(Rs in Crores) 2014(Rs in Crores)
  • 38. 37 Topline and bottom-line Top line is comparison of Net Sales 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) 2011 (Rs in Crores) 2010 (Rs in Crores) Net Sales 4870.08 4349.39 3757.54 3280.61 2856 % change 11.97156 15.751 14.53785 14.86891 Bottom line is comparison of PAT 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) 2011 (Rs in Crores) 2010 (Rs in Crores) PAT 672.1 590.98 463.24 471.41 433 % change 13.72635 27.57534 -1.7331 8.78776 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) 2011 (Rs in Crores) 2010 (Rs in Crores) 4870.08 4349.39 3757.54 3280.61 2856 NET SALES 2014 (Rs in Crores) 2013 (Rs in Crores) 2012 (Rs in Crores) 2011 (Rs in Crores) 2010 (Rs in Crores) 4870.08 4349.39 3757.54 3280.61 2856
  • 39. 38 DuPontAnalysis Operating Efficiency Formula: Net Profit/Sales*100 Assets Usage Financial Leverage Formula: Sales/Total Assets Formula: Total assets/Shareholder fund Return on Equity Formula: Net Profit/ Shareholders Fund* 100 Calculation: Operating Efficiency X Assets Usage X Financial Leverage = Return on Equity (Net Profit/Sales*100) X (Sales/Total Assets) X (Total assets/Shareholder fund) = (Net Profit/ Shareholders Fund* 100) 31-03-2014 31-03-2013 31-03-2012 31-03-2011 31-03-2010 Operating Efficiency 0.138 0.136 0.123 0.144 0.152 Assets use efficiency 2.198 2.315 2.254 2.237 3.323 Financial Leverage 1.164 1.2 1.279 1.332 1.147 ROE 0.353 0.377 0.355 0.428 0.578  The net profit has detoriated from 0.152 in 2010 to 0.138 in 2015, which reflects a bad performance, but it has increased from 0.136 in 2013, which is slightly a good sign for the company  Assets turnover ratio has also detoriated from 3.323 in 2010 to 2.198 in 2014, which is not good and it indicates that the company is not properly utilizing its assets for its operations.  Financial leverage has though increased, which was 1.147 in 2010 to 1.164 in 2014, but it has decreased in comparison to 2013 which was 1.2, and it has been constantly decreasing in the last consecutive years, this means that the company is relaying on their own fund rather than outside fund, which that the management is not ready to take risk. ROE has decreased from 57.8% in 2010 to 35.3% in 2014 which is a drastic drop, and it says that the company is not doing well and the management need to pay more focus, and operate more efficiently, though they are providing more than the expected or benchmark return which is said to be 30% and above.
  • 40. 39 HUMAN RESOURCE MANAGEMENT OrganizationStructure – to be represented via hierarchy
  • 41. 40 Analysis of JDs and Job Specifications posted by the companyon online-job portals Dabur IndiaLimitedisthe fourthlargestFMCG CompanyinIndiawithinterestsinHealthcare, Personal care and Foodproducts,hasan impressive presence inIndiaandabroad.Buildingona legacyof qualityandexperience,today Daburhasa consolidatedturnoverof Rs.5283 crore with powerful brandslike DaburAmla, DaburChyawanprash,Vatika,Hajmola,Anmol and Real.The companyisgrowingat a fastpace andhas ambitiousplansaheadforsustainedgrowth Designation SalesOfficer- ModernTrade - Pune JobDescription * Primaryandsecondarysales - ensuringconsistencyinsales * Enablingeffectivecoordinationamongstteammembers - specializedfor stockiestmanagement,retailermanagementandmerchandisers * Preparingdeliverablesandtargetsforall teammembers * Drivingteammemberstoachievementof targetsinline withthe activities, focus areas of the organization. * SalesForecastingatmonthlyandquarterlylevel. * DistributionManagement - Billing,stocks&Collections * ProductAwarenessBuilding,Visibility&Merchandising * MIS and MonitoringSalesReport * AnalyzingandhandlingCompetitionandcompetitoractivities. * ResolvingCustomerComplaintsandgrievances * Training,Leading&motivatingthe DistributorsSalesman/Team * Ensuringtimelyreportingthroughteamincompanyprescribedformats. * Onjob trainingandinvolvementininductionof teammembers. * HandlingDistrictSalesmaneffectively andensuringtheirdevelopment. DesiredProfile Please refertothe Jobdescriptionabove Experience 3 - 8 Years IndustryType FMCG / Foods/ Beverage Role SalesExecutive/Officer Functional Area Sales,Retail,BusinessDevelopment Education UG - Any Graduate - Any Specialization PG - Any Postgraduate - Any Specialization, Post-Graduation Not Required Doctorate - Any Doctorate - Any Specialization, Doctorate Not Required
  • 42. 41 Compensation: 4,00,000 - 6,00,000 P.A Location Pune Keywords MarketingBusinessDevelopmentInstitutional SalesTerritoryDevelopment SecondarySalesWholesale BusinessPlanningUnileverNestleMarico Britannia Mars ModernTrade Contact HR Manager Dabur IndiaLimited JobPosted 2015-04-17 15:24:55.0
  • 43. 42 Training needsof the company Effective training or development depends on knowing what is required - for the individual, the department and the organization as a whole. With limited budgets and the need for cost- effective solutions, all organizations need to ensure that the resources invested in training are targeted at areas where training and development is needed and a positive return on the investment is guaranteed. Effective TNA is particularly vital in today's changing workplace as new technologies and flexible working practices are becoming widespread, leading to corresponding changes in the skills and abilities needed.
  • 44. 43 Organizationculture (asper employee reviews or research findings) Employee reviews:
  • 45. 44
  • 46. 45 CONCLUSION After completing the entire report, what I can say, is that DABUR focuses on innovation and promotion of its brands, which is highly required in current scenario, so they spend a lot on media advertisement and sponsorship, to keep a visibility in the market, but if we look at the financial statistics we will see, that they have low debt equity ratio, which says that the management is now aggressive and in not looking for expansion as of now. Their ROE has decreased which states that they are performing not well and not utilizing their resources properly. And as far the organization culture, they have a good culture and environment for its employees, gives respect to them, and indulge them in various activities, which motivate them to work hard and give a high productivity for the company. DABUR is relying too much on their healthcare brand which is good, as the industry forecast is good and is predicted to incline in the future, so if DABUR wants to progress and retain their position in the market then they will have to focus on utilizing their resources, and reduce wastage and cost of product, so that the can offer more affordable price and increase sales as well as profit. Overall DABUR is doing well as for my opinion.
  • 47. 46 BIBLIOGRAPHY  http://www.mbaskool.com/brandguide/food-and-beverages/479-Dabur- chyawanprash.html  www.Dabur.com/Annual-Reports-2013-14  http://jobsearch.naukri.com/job-listings-Sales-Officer-Modern-Trade-Pune-Dabur- India-Limited-Pune-3-to-8-years- 170415003462?xp=4&qp=Dabur%20india&srcPage=s  http://viragbrand.blogspot.in/2012/12/dabur-chyawanprash-vs-himani-sona.html  http://fmcgmarketers.blogspot.in/2008/07/fmcg-growth-drivers-and-category- trends.html  http://www.aceanalyser.com/  IBEF.org  http://www.glassdoor.co.in/Reviews/DABUR-Reviews-E40052.htm