Professional Documents
Culture Documents
PROJECT REPORT
ON
DABUR INDIA LIMITED
[MARKETING & HR]
Submitted toward the the partlal fulfilment for the award of Degree
In BACHELOR OF BUSINESS ADMINISTRATION OF
DEPARTMENT OF BBA
DECLARATION
I hereby declare that the summer training report on Dabur India
Ltd. is prepared and submitted by me is the original work; the
report is based on the data collected by me during the training
tenure.
During my training I worked under the able guidance of Mr.
Vasuki.n.Kilam, [Area Sales Manager] & Mr. Tarkesh Gupta
[Manager - HR].
SUBODH
ACKNOWLEDGMENT
I wish to place on record my deepest gratitude and thanks
to personnel from Dabur. Without whose help this project
would not have been possible Mr. Vasuki.n.Kilam, [Area
Sales Manager], Mr. Tarkesh Gupta [ Manager - HR] from
Dabur Co. were the concerned personnel I interacted with.
I would further like to thank Ms. Komal Tomar for his
able guidance throughout this project.
Table of Content
1. Synopsis
2. Introduction
3. Assumption
4. Company Information
5. Organization Structure (Existing)
6. Organization Structure (Proposed)
7. Activities
8. Mission
9. Product
10. Research and Development
11. Expansion and Diversification
12. Product placement strategy
13. Pricing Strategy
14. Promotional Strategy
15. Conclusion
16. Recommendation
17. Bibliography
18. Limitation
19. Methodology
SYNOPSIS
This
project
report
covers
and
brings
to
light
the
on the recommendation
INTRODUCTION
This Project Report forms an integral part of the Post
Graduate
Diploma
in
marketing
management.
As
industry.
This
industry
can
be
further
be
are
brought
directly
preferences
and
awareness.
something
new
and
extra
in
relation
New
to
to
companies
the
customer
offering
consumers
are
opportunity
to
study
and
analyse
the
reinvested
itself.
Breaking
over
century
of
largest
homegrown
FMCG
Company.
The
consumer
goods
company
of
the
country.
Managing Director
Managing
11
V.C. Burman
director
G.C. Burman
Operations
Personnel
product Ayurvedic
HR
spl.
Assurance
Foods
and
cosmetics.
and
quality
purchase
packaging
development
diversification
Pharmaceuticals
Director
Director
Veterinary
Overseas
Bulk
Natural
operations
Drug
Chemicals
and
Gums
Finance
Exports
Corporate
Communic
ation
12
Management
Committee
CEO
BUSINESS
UNITS
FUNCTIONAL
HEADS
HEADS
Health care
Operations
Personal Care
supply Chain
Ayurvedic Spl.
Purchase
Ayurvedic Veterinary
IT
Pharmaceutical
HR
Oncology
Packaging Dev.
Food
R&D
Quality Assurance
Finance & Accounts
Corporate Comm.
13
14
Joint Venture
Coufiteria
de
General
India Ltd.
Dabon International
Excelcia Foods Ltd.
15
Confiteria
India
16
Dabur Exports,
Representatives
Overseas:
Dubai,
Kenya
Egypt,
Nepal
&
UAE
(franchisee
under
Activities
Dabur products span the seven continents and over 50
countries. Though Dabur starting its exports way back in
the early 1900s, it gathered momentum in the seventies
with the Middle East market. Presently, Dabur Amla Hair
17
Oil is not only the largest hair oil brand, it has also helped
in making Dabur a household brand in that region.
era
of
faster
growth.
From
closely
held
20
MISSION:
To fully export our core competencies in the field of
Ayurvedic
and
Herbal
products
by
identifying
the
have
remarkably
altered
their
marketing
mix
21
PRODUCT
PRODUCT RANGE: Till a year and halfback Dabur had
over 500 products covering around 10 categories in all.
These were as below:
Healthcare Products Division: Marketed a range of
OTC Healthcare products based on Ayurveda. These
included
Herbal
immunomodulators;
digestive,
over
65%
market
share
in
their
respective
categories.
Family Products Division: Markets a range of beauty
is a product, toiletries, herbal hair care products and
select goods. Hair oils, red tooth powder, honey and
rosewater are market leaders with nearly 70% market
share in their respective categories.
Ayurvedic specialties: Based on the ancient holistic
system of healthcare. This had a range of over 400
medicines. Ethically promoted these include classical
22
time,
fruit
juices
with
nothing-artificial
non-
Drugs
synthetic
and
&
Chemicals:
semi
synthetic
Dabur
bulk
manufactured
pharmaceutical
23
Gums:
This
division
manufactured
and
24
of
manufacturing
herbal
or
Ayurvedic
based
in
terms
of
turnover.
Some
previously
with
market
share
above
70%.
Dabur
29
V. Samara
beauty
therapies
which
includes
of
skin
31
products
are
intanel
(paelitanel)
and
Eotel
32
the
above
product
lines,
Dabur
is
also
Some
new
products
are
ready
to
be
Besides
this
Dabur
also
has
3rd
party
Research
and
Development
activities
in
35
36
37
products.
Expansion/Modernization/Diversification
A new manufacturing unit with high degree of automation
came into operation in Baddi (HP) during 1998 to produce
Daburs well known brands Chyawanprash, Janma Ghunti
Ayurvedic
oils
underwriting
and
assured
Asav-Arishtas.
quality
of
This,
the
apart
products,
from
has
38
control
bulk
pharmaceutical
compounds
manufacturing
modern
air-conditioned
packing
line
has
been
40
service
these.
This
strong
network
ensures
range
from
grocery
stores
to
chemists
to
Branch
Warehouse or C
& F agent
Stockist
Wholesaler
Retailer
Consumer
there
were
shortcoming
in
supply
chain
43
payment cycle and also affected the cash flows for the
company.
Dabur realized that there is something wrong in its supply
chain-from buying of raw materials to the selling of the
finished goods to the retailer. For a growing FMCG, this
was the most critical aspect of business as it has 3 major
benefits.
One, have the right stock, at the right place at the right
time.
Two, keep inventories down.
Third, do all this with lower operational costs.
It was with the intention of fixing its internal processes
that
Dabur
hired
Mckinsey
and
Company
in
1997.
earlier
resulted
into
high
working
capital
brands
to
better
systems
and
information
45
Besides
all
the
above
measures
of
supply
chain
46
PRICING STRATEGY
Pricing is undoubtedly one of the most important decision
areas of marketing. Price and sales volume together
decide the revenue of any business. As the sales volume in
itself is dependent in price. Pricing really becomes the key
to the revenue of the business such is the case with Dabur.
Though some of the products of Dabur have been leading
brands in their segments over the years, still others are
upcoming brands trying to make their pressure.
Dabur as a brand name is well reputed and readily
accepted in the market. The main strength of Daburs
products besides their quality is the brand name. This
gives to the company, opportunity to fix the price at a
level, which gives suitable profits. Major factors affecting
Daburs pricing policy are:
I. Corporate and Marketing objectives: Whether the
product is marketed with the initial objectives of
capturing maximum market share or earning maximum
profits. Daburs product like Hajmola candy, hingoli
47
often
when
in
49
51
PROMOTIONAL STRATEGY
Dabur, like an upcoming FMCG company realizes the
importance of advertising in the marketing of its product.
Like a true visionary Dabur from time to time, introduced
as well as changed some of its campaigns (for key
products) to bring them according to the changing market
scenario. In all its advertising is handled by 8 agencies.
Campaign for digestive: Hajmola, Hajmola Candy, and
Pudin Hara are done by Hindustan Thompson Associates
(HTA). Pudin Hara has been identified as one of the core
brands of Dabur by McKinsey and HTA is going to release a
new campaign for it shortly. Advertising for digestions is
through all the media - T.V, newspapers and magazines.
Campaign for Dabur Amla Hair Oil: This account has
been looked after by Ogilvy & Mather over the years. This
grand old product of Dabur has once again adorned a new
face for advertising. Known for celebrity advertising, this
product is now promoted by Karishma Kapoor. Some of the
leading ladies of the film industry who have endorsed this
product are Jayapradha, Sridevi, Juhi Chawla.
52
Shampoo,
and
Real
Fruit
Juice
extensive
have
been
in
the
market
for
long
i.e.,
56
or
organization.
external
Dabur
forms
has
an
integral
corporate
part
of
an
communication
57
CONCLUSION
Being a treasure trove of rare medicinal plants and the
birthplace of three therapeutic systems, the growth of
herbal product industry in India has been remarkable.
According to a survey, the current estimate of the total
herbal market is Rs. 2500 crores which is growing at a
rate of 25 to 30% per annum. Many companies are there
in
this
highly
awareness
and
competitive
field.
realization
among
With
the
people
growing
for
herbal
(Dabur
is
highly
diversified
company),
team
performance,
focusing
on
core
an
international
consultant
to
study
and
organizational
and
strategic
aspects.
The
and
unscientific
methods
of
demand
forecasting.
Poor raw material procurement planning.
Huge inventory pile up or stock outs.
Complex system of payment to dealers and stockists.
59
Long
cash-flow
cycle
and
huge
working
capital
requirement.
Lack of co-ordination between central supply cell,
branches and warehouses.
Daburs brand was known but nothing much about the
company was known.
It is a positive sign that the company, based on McKinseys
recommendations, has taken the initiative to change and
alter its weak points.
Firstly Dabur has identified core areas of competence and
has decided to focus on these business to maximize
growth in the national and intentional market through
effective strategies. The company has also decided to exit
from
non-core
areas
and
has
already
appointed
improving
purchasing
capabilities,
recognized
and
established
brand,
strong
R&D
of
the
oldest
company
of
Ayurvedic/herbal
and
this
also
suggests
some
negative
team
performance,
focussing
on
core
an
international
consultant
to
study
and
organizational
and
strategic
aspects,
the
64
65
RECOMMENDATIONS
DABUR INDIA LIMITED
Most of the recommendations for Dabur have been
covered by the McKinsey report. Nevertheless it would be
worthwhile to note them again.
1. If Dabur has to emerge as a true FMCG company it has
to divest its non-core businesses fast and focus only on
some core competencies. It this is done growth will
follow soon.
2. There are also changes to be brought on the operational
front. The company should hire more and more outside
professionals into both top and middle management. It
should also initiate the process of adhering to new and
better system and style of management.
3. The demand forecasting has to charge from the
unscientific, incredible system of annual forecasting to
the more reliable and error free system of making
quarterly rolling forecasts.
66
has to surface as an
It
also
has
to
introduce
systems
in
its
were
the
most
popular
companies
with
68
BIBLIOGRAPHY
1. Magazines
Business India
Businessworld
1998 Issue
22 Nov-6 Dec
2. Books
Marketing Management - by Phillip Kotler
Principles of Marketing by Phillip Kotler & Gary
Amstrong
3. Others
Annual Report of Dabur (1997-98)
Company Literature of Baidyanath
CII Library
Delhi Stock Exchange Library
Economic Times Newspaper
LIMITATIONS
69
and a major
accomplish
task.
the
given
Also
constraint to
sometimes
the
Also
preparation
many
time
holidays
of
this
occurred
report
and
during
access
the
to
70
were
helpful
some
people
were
non-
Problems:
One
major
problem
that
71
METHODOLOGY
The research design plays a pivotal role in the quality and
content of the data in making of any project report. The
type of research design chosen is seen to have a bearing
on all the aspects of report writing.
The research design undertaken for the study was an
exploratory one. The reasons for using an exploratory
research method was to obtain qualitative data and also
since the nature of study is as such that it required the
exploration of various aspects within and outside the
company. This method also gave the officials interviewed
the
utmost
freedom
in
responding
and
was
highly
For
this
purpose
various
primary
and
Information
was
gathered
through
the
72
particular
another
questionnaire
was
used.
This
tick)
- No side effects
- Ineffective
- Affective
- Dicey constituents
(b) Cosmetic
specify______)
5. What portion of your total consumption of the above is
formed by herbal products?
The two above questions helped in knowing the growing
prevalence of herbal products.
6. Which two companies first come in your mind when
your talk of herbal products (medicines and cosmetics)?
75
Cosmetics
Dabur
Biotique
Baidyanath
Shahnaz
Zandu
Dabur
Hamdard
Ayur
2. .
76
77
coming
to
the
marketing
strategies
of
Dabur
and
79