A PROJECT TO STUDY
“FMCG-Consumer Goods of Dabur india limited”
INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
Under the guidance of:-
[Link] Paul
Submitted By:-
Sajid abbas bhat
Ajit kumar
Shubham
Ravi singh
jitesh
MBA(ISBE-B)
SG-1
Acknowledgement
We wish to thank all those with whom we have worked, interacted and whose thoughts and
insights helped us in furthering our knowledge and understanding of the subject.
We would especially like to express our gratitude and sincere thanks to [Link] paul whose
excellent teaching has left an undeniable print on our mind leading us to prepare this project
report in a better way and which would not have been possible without his support and active
guidance. We are highly obliged to him for the opportunity that he gave us to work on the
FMCG-Consumer Goods of ‘Dabur India Ltd.’. The present report has made us learn a lot about
the industry as a whole.
Sajid Abbas Bhat
Shubham
Ajit kumar
Ravi singh
jitesh
CONTENTS
I Acknowledgement
[Link]. CHAPTER NAME
1. ORGANISATIONAL PROFILE
a. Objectives
b. Introduction
c. Company’s History
d. Management and Ownership structure
e. Vision
f. Company’s Profile
2 MARKETING ANALYSIS OF DABUR INDIA LIMITED
a. Marketing Mix
b. 4 P’s of Marketing
1. Production
2. Price
3. Place
4. Promotion
3 THE PATH AHEAD
5 CONCLUSION
OBJECTIVE
To study the present marketing strategy of “Dabur India Limited”
To study the effectiveness of marketing strategy Of “Dabur India Limited”
To know about the portfolio of “Dabur India Limited”
INTRODUCTION
Before the industrial revolution the emphasis was on production of better quality article.
Production was carried on small scale and in most cases production was carried on in small
quantities only when an order was placed in advance. In modern days production is carried on
not only in large scale but also in anticipation of future demand. This situation had brought into
sharp focus the other function of management as Marketing, Finance and Human Resources etc.
The functioning of all these areas of management in a vibrant way full of vitality is important to
the sustenance and advancement of the company towards prosperity.
Dabur India Ltd. Is a company where a balance of all these fields exists and where they perform
in a perfect harmony. Dabur was set up in 1884 by Dr. S. K. Burman, a physician tucked away in
Bengal, to produce and dispense Ayurvedic medicines. His mission was to provide effective and
affordable cure for ordinary people living in far-flung villages. Reaching out to a wide mass of
people who had no access to proper treatment, Dr. S. K. Burman's commitment and ceaseless
efforts resulted in the company growing from a fledgling medicine manufacturer in a small
Calcutta house, to a household name that at once evokes trust and reliability.
Dabur India Limited is India's leading FMCG Company with interests in health care, personal
care and foods. Dabur has a history of more than 100 years and the company has carved a niche
for itself in the field of Ayurvedic medicines. The products of Dabur are marketed in more than
50 countries worldwide.
The company has 2 major strategic business units (SBU) - Consumer Care Division (CCD),
Consumer Health Division (CHD) 3 Subsidiary Group companies - Dabur Nepal and Dabur
Foods Ltd & and Dabur International. Dabur International has 4 step down subsidiaries – Dabur
Egypt Ltd., Asian Consumer Care Pvt. Ltd. (Bangladesh), African Consumer Care Ltd. (Nigeria)
and Weikfield Intl. (Egypt)
HISTORY OF DABUR
Dabur was incorporated in 1884 in a small Calcutta
pharmacy where Dr. S. K. Burman launched his mission of making health
care products. With the growing popularity of Dabur products, in 1986 Dr.
S. K. Burman set up Dabur’s first manufacturing plant for mass production
and in the early 1900s Dabur ventured
into the business of nature based ayurvedic medicines for which
standardized drugs were not available in the market. In 1936 Dabur sets up
Dabur India Limited and a new manufacturing plant is set up in Faridabad
on the outskirts of Delhi. In 1979 one of the largest and best equipped production facility was
started near Sahibabad along with the formation of Dabur Research Foundation (DRF) signaling
the launch of research operation in the pioneering area of health care. In 1986 Dabur became a
public limited company and raised its first public issue in 1994 with the company share issued at
a high premium and oversubscribed twenty one times. For better operation and management 3
separate divisions were created in 1996 according to the product mix, namely Health care
products division, Family production division and Dabur ayurvedic specialties limited. In 1997
Dabur enters full scale in the nascent processed foods market with the creation of the food
division. Project STARS (Strive To Achieve Record Success is initiated to give a jump start to
the company and accelerate its growth performance) and in 2000 Dabur established its market
leadership status with a turnover of Rs 1000 Crores. In 2005, Dabur acquired Balsara. Dabur
crossed $ 2 billion market cap in 2006. Dabur foods merged with Dabur India in 2007.
From a small beginning and upholding the values of its founder, Dabur entered the august
league of large corporate business. Dabur has also ventured into the specialized health care area
of cancer treatment with its oncology formulation plant at Baddi in Himachal Pradesh and
extended its global partnerships by entering into joint ventures with Osem of Israel for food and
Bongrain of France for cheese and other dairy products.
Dabur India Limited today is the third largest FMCG Company in India after a takeover of
Balsara India Limited and with interests in Health care, Personal care and Food products.
Powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real are the
major contributors to Dabur’s turnover of Rs.2396 crore.
MANAGEMENT & OWNERSHIP
STRUCTURE
Board of Directors
Dabur has an illustrious Board of Directors who are committed to take the company onto newer
levels of human endeavour in the service of mankind. The Board comprises of:
Chairman Vice-Chairman
Dr. Anand Burman Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang Mr. Sunil Duggal [Link] Burman
Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
Maharaja Gaj Singh Mr. P N Vijay Mr. R C Bhargava Dr. S. Narayan
The C.E.O
Sunil Duggal
Chief Executive Officer
Dabur India Limited
VISION
COMPANY’S PROFILE
Dabur India Limited is India’s fourth largest FMCG company. The first Dabur plant was set up
in 1896 and research laboratories established in 1919. Dabur became a public limited company in
1986. In 1998, the Burman family, the original promoters, handed over the day-to-day running of
the company to professionals. With effect from 1 April 2005, Balsara Home Products became a
subsidiary of Dabur. Apart from Balsara, Dabur has five other subsidiaries — Dabur Foods,
Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma.
Dabur has been marketing its products in more than 50 countries all over the world. The
company has offices and representatives in Europe, America and Africa. Manufacturing facilities
are spread across three overseas locations.
Dabur India Limited holds its speciality in AYURVEDA. Ayurveda, the ancient Indian system of
medicine based on natural and holistic living, derives from two Sanskrit words -Ayu or life, and
Veda or knowledge. This Science of Life analyses the human body through a combination of the
body, mind and spirit.
Originating nearly 5,000 years ago, Ayurvedic texts were researched by Dabur in its quest for
natural remedies. Today, its application in modern life has been renewed through the scientific
research and validation undertaken at Dabur.
Other than “ ayurvedic specialities “ Dabur’s product range also encompasses health care, hair
care, oral care, baby care, home care, food segments and digestive products . Some of the well-
known brands include Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care and Pudin
Hara.
Part of the company’s success came from its highly active sales network. A significant
proportion of Indian population, which would be top one billion before the drawn of the 21st
century, still lived in rural regions and in extreme poverty. For much of this population, personal
care products remained luxury items. Yet the company recognized the importance of building its
brand in this region and as such the company developed a vast sales network and much of this
network was based on an army of independent, direct sales agents, who hawked the company’s
products in more than 150000 villages.
In 2002 the company prepared to enter a new management era and appointed Mr. Sunil Duggal
as the C.E.O of the company. He joined in 1995 as General Manager (Sales & Marketing), and
since then, with his dynamic spirit and leadership abilities he has led the company to achieve
new heights and becamer the CEO of the Company, and with his valuable experience steering the
company ahead in its growth plans.
Dabur India Limited has marked its presence with some very significant achievements and today
commands a market leadership status. Their story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment to their partners and
stakeholders. The results of the policies and initiatives speak for themselves.
SUBSIDARIES
DABUR FOODS LIMITED (DFL)
Dabur Foods a 100% subsidiary of US $ 3 billion Dabur Group realized the potential of the
processed & packaged food industry (4th largest in the world), began operations as a separate
division in the year 1999. It established brands in a market where the barrier to accept packaged
food is high, and the fledging processed food industry was in a nascent stage in India. Today,
Dabur Foods has kept its promise not only to the Indian consumers but to the world by providing
them the very best products in packaged food class.
Dabur Foods has a distribution networkthat covers175 towns and 75 thousand retail outlets
making its product available to the consumers across the country at ease.
With an understanding on the nuances of food distribution, the company has developed a unique
handling and storage process, which ensures the minimum damage and expiries. To deliver fresh,
the company has created a separate channel for retail and food services. With a dedicated system
and logistics process, it achieves a balance between sales and production.
Realizing the potential in the distribution network, Dilmah Tea, world’s 3rd largest tea brand,
partnered with Dabur to reach the Indian Market.
Dabur Nepal Limited
The guiding force behind Dabur’s Growth and success has been the wealth of nature and its
limitless capacity to support life. And they have constantly taken care to preserve and protect this
natural bounty. With this overall vision of and to eco-sustenance, expand Dabur’s resource and
product base, Dabur Nepal Private [Link] set up as an independent group company in 1992.
This new company set amidst the verdant greens and the towering mountains of the Himalyan
kingdom of Nepal, has established a unique bond of technology and preservation
Dabur International Limited
Dabur International Ltd. is the most important subsidiary company of Dabur. It is responsible for all the
actions of Dabur worldwide. Dabur International has 4 step down subsidiaries – Asian Consumer Care in
Bangladesh, African Consumer Care in Nigeria, Dabur Egypt and Weikfield Intl.
MARKETING ANALYSIS
OF
DABUR INDIA LIMITED
MARKETING MIX
Marketing mix refers to the ingredients or the tools or the variables which the marketeer mixes in
order to interact with a market. It is a set of marketing tools that the firm uses to pursue its
marketing objectives in the target market. Marketing mix includes the following activities
-product planning, pricing, branding, packaging, channels of distribution, displays, physical
handling, advertising etc.
All the activities listed above create what a marketeer offers to the market. It is through these that
market is created and managed. The above list of marketing mix elements was reclassified by
McCarthy into four categories popularly known as four P’s of marketing -: product, price, place
and promotion.
PRODUCT PLACE
Product mix Channel strategy
Packaging Intermediaries
Labeling Channel conflict
Product quality Channel selection
Branding Physical distribution
PRICE PROMOTION
Price methods Promotion mix
Pricing strategies Advertising
Price policy Sales promotion
Price changes Personal selling
Publicity
Public relations
4 P’S
OF
DABUR INDIA LIMITED
PRODUCT
PRICE
PLACE
PROMOTION
PRODUCT
The product is the physical good or service offered to the consumer. The product is the most
visible element of the marketing mix. When a firm introduces a number of products over time
gradually, its offerings become many. That is, the firm becomes a multi product firm.
Similarly, Dr. S. K. Burman started a small pharmacy in Calcutta in 1884 where he launched his
mission of providing health care products. Which was later made a full fledged company Dabur
(Dr. S. K. Burman) India Limited started with only few ayurvedic medicines. But now it has a
bigger portfolio of products of variety of brands like hair care, health care, baby care & other
different types of Home & Personal care products along with food and digestive products.
Further the company can increase the depth of an item in the line by adding new variants. For
example Dabur has added different flavours like orange and lime to its Glucon D.
Dabur’s diverse product range is today manufactured in 9 manufacturing facilities within India
and 5 other worldwide. Dabur's Ayurvedic Specialities Division has over 260 medicines for
treating a range of ailments and body conditions-from common cold to chronic paralysis.
Over the past two years, Dabur’s product portfolio has been systematically overhauled through
re-launches and brand extensions, even as fresh forays have been made into new categories such
as hair, skin care and home care. Recently two new products, disinfectant cleaner and kitchen
cleaner under ‘Dazzl’ brand. All these launches of new kinds of products will help the company
to capture the potential market arising from the growing needs of the fast expanding market,
especially the aspiring and affluent Indian
household categories.
Dabur brands are broadly divided in to six
categories:-
1) Heal
t h
Care
2) Pers
o nal
Care
3) Ho
m e
Care
4) Ayu
r vedi
c Specialities
5) Foods
6) Guar Gum
HEALTH CARE PRODUCTS
Dabur Chyawanprash and Chyawanshakti
Dabur Chyawanprash has anti-oxidant properties & strengthens your body's internal defense
mechanism, the immune system. Thereby protecting you from everyday infections, cough, cold &
stress etc.
Dabur Honey
Health Ka Meetha Meetha Raaz. The purest golden honey collected from freshly harvested
beehives. With the finest flavor, texture, and aroma, right down to the last drop. Absolutely pure,
natural and with no artificial preservatives, additives or sweeteners. Dabur honey adds health and
good taste to your food table.
HOME CARE PRODUCTS
Odomos
It is a effective mosquito repellent and safe for the skin.
Odonil
It is a range of perfumed air fresheners, available in forms of block
and aerosol forms.
Odopic
It is an effective and economical dish washing product containing ‘feldspar’.
PERSONAL CARE PRODUCTS
HAIR OILS
Dabur Amla Hair Oil
Dabur Amla Hair Oil contains natural extracts from “Amla” which is good for
hair.
Dabur Vatika Hair Oil
It is a delicate mix of coconut oil with special hair care herbs.
SHAMPOOS
Vatika Henna Conditioning Shampoo
It is a natural shampoo made from herbs like Henna, Shikakai and
Green Almonds
SKIN CARE
Dabur Gulabari
Dabur Gulabari Premium Gulab Jal is the extract from fragrant roses.
Vatika Fairness Face pack
It is a ready to use fairness face pack.
Vatika Saffron Glow Soap
The new Vatika soap variant has natural ingredient like Saffron and Sandal.
ORAL CARE
Dabur Red Toothpaste
Toothpast prepared from hebs that fight oral problems like bad breath, toothache and germs.
Bianca Toothbrush
Toothbrush that comes in different variants with different features.
Dabur Lal Dant Manjan
The hebal Ayurvedic red toothpowder wich is widely used in the rural
areas.
AYURVEDIC SPECIALITIES
General Health
Stresscom
Stresscom offers Ashwagandha (Withania somnifera) extract
capsules standardized to 4.5% Withanoloides. The lipid form
enables Stresscom to provide incomparable benefits in various
psychosomatic health complaints.
Lung Support
Broncorid
Broncorid is a unique herbal combination of drugs, which
manifests Anti histaminic, anti-inflammatory, mucolytic,
expectorant and bronchodilator effect. Broncorid syrup has
been enriched with Shireesh Chaal, which has a Sodium
Cromoglycate like activity.
Madhuvaani
Madhuvani is a blend of age-old traditional cough formula Sitopaladi churna with honey.
Digestive Support
PRICE
Price is normally expressed in monetary terms. It is worth of a product or service in monetary
terms. Price is the value which a buyer passes on to the seller in lieu of the product or service
provided. Price is a crucial determinant of the fact whether the exchange between the buyer and
seller should materialize or not. While pricing the products three main factors should be kept in
mind -:
1. Cost
2. Competition
3. consumer demand
Pricing Strategies of Dabur
Dabur has stepped up the pace of new product launches and is investing ad spend and marketing.
The entire product portfolio is also tweaked to include premium offerings such as more variants
under almost every category, like Dabur Vatika Hair Oil is available in 3 different versions .
Dabur is today seen as far more proactive in the market. Dabur is now an external oriented
company. Across the whole organization the company have one definition of winning, and that
means not just growing, but growing completely. Over the last two years, Dabur has maintained
its operating margins through judicious price hikes across products and reduction in pack sizes.
The three main factors affecting the pricing strategies have been discussed below -:
I. COST
One of the most important factor to take care while pricing is the cost costs set the floor for
pricing decisions. There are two types of cost variable cost and fixed cost. It is important that the
price should recover all costs including a fair return for undertaking the marketing effort and risk.
II. COMPETITION
Competition is another important consideration while pricing. When a firm does not face any
competition it can enjoy complete freedom in fixing its price. But when there are competitors
selling the same or similar products, the pricing freedom is considerably reduced. Its price must
fall in line with the competitors. Similarly Dabur India Limited also has many competitors. But
Dabur’s top selected competitors are:-
1. Hindustan Unilever Limited
2. Proctor and Gamble
3. Pepsi co.
4. Colgate Palmolive
5. Godrej Industries
6. Marico Ltd. etc.
III. CONSUMER DEMAND
Dabur learned that the majority of Indian population tends to go towards the Indianised natural
and herbal products thus they made it their USP. Dabur is efficiently leading the market with this
product range, providing the customers with special products easily.
PLACE
Place in the context of marketing mix refers to a set of decisions that need to be taken in order to
make the products available to the customers for purchase and consumption. Making the
products available to the customers require development of channels of distribution and physical
distribution of products.
CHANNELS OF DISTRIBUTION
Channels of distribution refers to the path taken by the goods in their movement to the
customers. For instance, the toothpaste we use is manufactured in the factory of a company
Dabur. But before it reaches us it passes through the hands of many middlemen who help it come
to you in right time, at right place and in right quantity.
Dabur’s distribution network is recognised as one of its key strengths. Its focus is not only to
enable easy access to our brands, but also to touch consumers with a three-way convergence - of
product availability, brand communication, and higher levels of brand experience.
A Diagram explaining the channels of Distribution is given below
The above diagram it shows channel of distribution of dabur foods, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing And
Forwarding Agents(C&FA) and from here the goods are then further supplied to number of
Stockiest or Distributors, from here goods reaches to large number of Retailers and it is the duty
of Stockiest to take orders from retailers and then supply the goods to them, this work is
generally done by stockiest salesman through ready stock or by taking orders first and then
placing the order. From here the goods finally reaches to Customers. Customer purchases the
product from retailers.
Manufacturing Plant
Clearing and forwarding agent (different regions)
Stockist A Stockist B Stockist C
Retailers Retailers Retailers Retailers Retailers Retailers
C O N S U M E R S
PROMOTION
Once the product has been manufactured, priced rightly and is distributed, the next task of the
marketer is to inform potential customer about the product and persuade them to buy the same.
The promotion element of marketing mix is concerned with activities that are undertaken to
communicate with both customers and participants in the channel of distribution such that sales
goals are realized. There are different promotional activities like-: Advertising, Sales promotion,
trade promotion, personal selling etc. but one of the most convenient and effective one that most
of the industries uses is the Advertising and Sales Promotion.
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 Mukhurjee, 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.
Sales promotion
“An activity designed to boost the sales of a product or service. It may include an advertising
campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps,
arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary
price reductions, door-to-door calling, telemarketing, personal letters on other methods”.
In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of
the promotional mix are advertising, personal selling, and publicity/public relations.) Sales
promotions are non-personal promotional efforts that are designed to have an immediate impact
on sales.
Sales promotion involves short-term incentives to encourage buyers to purchase a product. It's
aim is to encourage immediate purchase of a product. If used too often however, sales promotion
can create a situation where consumers will not buy unless there is a bonus offer. This will result
in loss of profit for the company.
More than any other element of the promotional mix, sales promotion is about “action”. It is
about stimulating customers to buy a product. It is not designed to be informative – a role which
advertising is much better suited to.
Sales promotion can be directed at:-
• The ultimate consumer (a “pull strategy” encouraging purchase)
• The distribution channel (a “push strategy” encouraging the channels to stock the product). This
is usually known as “selling into the trade”
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
THE PATH AHEAD
Dabur intends to significantly accelerate profitable growth. To do this, Dabur will:
Focus on growing their core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology.
Be the preferred company to meet the health and personal grooming needs of their target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science.
Provide the consumers with innovative products within easy reach.
Build a platform to enable Dabur to become a global ayurvedic leader.
Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel.
Be responsible citizens with a commitment to environmental protection.
Provide superior returns, relative to their peer group, to the shareholders.
CONCLUSION
It was really a very great experience to study this FMCG company “Dabur India Limited”. After
going into all its aspects i.e. its marketing strategies, policies, pricing strategies etc. we can
conclude that the company is excellent on all the fronts. The company’s different projects like
Sundesh and its social initiatives in Nepal etc. indicates that the company is also loyal towards
the society, and all such social responsibilities are very necessary to build a strong customer base
and brand loyalty
Through its comprehensive range of products it touches the lives of all consumers, in all age
groups, across all social boundaries. And this legacy has helped them develop a bond of trust
with our consumers. That guarantees us the best in all products carrying the Dabur name.