Professional Documents
Culture Documents
Project On DABUR
REAL
Contents
SECTOR INFORMATION.............................................................................................................................. 4
Fast Moving Consumer Goods (FMCG) .................................................................................................. 4
Market Size .............................................................................................................................................. 4
Growth of the sector................................................................................................................................ 4
Reason for Growth .................................................................................................................................. 5
Major Segments in FMCG sector............................................................................................................. 6
GDP contribution of FMCG ...................................................................................................................... 7
Porters five forces model for FMCG Sector ........................................................................................... 8
Competitive Rivalry............................................................................................................................. 8
Threat of New Entrants....................................................................................................................... 8
Buyer’s power ...................................................................................................................................... 8
Supplier’s power.................................................................................................................................. 9
Threat of substitutes ........................................................................................................................... 9
Key Challenges ......................................................................................................................................... 9
COMPANY INFORMATION ........................................................................................................................ 10
Company Snapshot ................................................................................................................................ 10
SWOT Analysis....................................................................................................................................... 11
Product Portfolio ................................................................................................................................... 12
Competitor Analysis .............................................................................................................................. 15
News ....................................................................................................................................................... 16
MARKETING............................................................................................................................................... 17
SWOT Analysis of the Product.............................................................................................................. 18
Marketing Mix ........................................................................................................................................ 18
Product ............................................................................................................................................... 18
Price .................................................................................................................................................... 18
Place ................................................................................................................................................... 19
Promotion .......................................................................................................................................... 19
STP (Segmentation Targeting Positioning) ......................................................................................... 19
SEGMENTATION ................................................................................................................................ 19
Targeting ............................................................................................................................................ 20
Positioning ......................................................................................................................................... 20
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
SECTOR INFORMATION
Fast Moving Consumer Goods (FMCG)
Indian consumer segment is broadly segregated into urban and rural markets, and is attracting
marketers from across the world. The sector comprises of a huge middle class, relatively large
affluent class and a small economically disadvantaged class, with spending anticipated to more
than double by 2025.
Fast moving consumer goods (FMCG) goods are popularly named as consumer packaged goods.
Items in this category include all consumables (other than groceries/pulses) people buy at regular
intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving
products, shoe polish, packaged foodstuff, and household accessories and extends to certain
electronic goods. These items are meant for daily of frequent consumption and have a high return.
FMCGs are slowly and gradually positioning and deeply penetrating in the fast growing rural
market. The FMCG sector in India continues one third of FMCG sales in India.
Market Size
The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian
economy. The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672
billion in 2016, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which
is likely to boost revenues of FMCG companies. In 2016-17, revenue for FMCG sector have
reached US$ 49 billion and is expected to grow at 9-9.5 per cent in FY18 supported by expectations
of the total consumption expenditure reaching nearly US$ 3,600 billion by 2020 from US$ 1,469
billion in 2015. Direct selling sector in India is expected to reach Rs 159.3 billion (US$ 2.5 billion)
by 2021, if provided with a conducive environment through reforms and regulation. People are
more accepting g Ayurveda products, which has resulted in growth of FMCG major, Patanjali
Ayurveda, with a revenue of US$ 1.57 billion in FY17.
The sector is estimated to have witnessed revenue growth of 14.8 per cent in October-
December 2017, supported by improvement in consumer sentiment and rise in rural demand.
Direct selling sector in India is expected to reach Rs 159.3 billion (US$ 2.5 billion) by 2021,
if provided with a conducive environment through reforms and regulation.
Edible oil market in India grew by 25.6 per cent in 2017 to cross Rs 1.3 trillion (US$ 20.08
billion).
100
80
60
103.7
40 83.3
68.4
49 57.4
20 35.7 38.8 43.1
31.6 33.3
0
2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F
Source: www.ibef.org
Hence rural demand is set to rise with rising incomes and greater awareness of brands.
As urban areas income rise so they have shifted their purchasing trend from essential to
premium products.
In response, firms have started enhancing their premium products portfolio. And as urban
people started earning more so they started investing more on food & beverages because of
this in future food& beverages have high growth which helps to increase GDP.
Growing awareness, easier access, and changing lifestyles have been the key growth drivers
for the sector. In the long run, with the system becoming more transparent & easily
compliable, demonetization is expected to benefit organized players in the FMCG.
Employment, health care, education and infrastructure under the Union Budget 2018-19 is
expected to directly impact the FMCG sector. These initiatives are expected to increase the
disposable income in the hands of the common people, especially in the rural area, which will
be beneficial for the FMCG sector.
MAJOR SEGMENT
1 Hair care
2 foods
7% 5% 23% 3 health supplements
6%
9% 4 Oral care
5 OTC & Ethicals
15% 19%
6 Home Care
16% 7 Digestives
8 Skin Care
Source: www.ibef.org
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
THREAT OF
SUBSTITUTE
HIGH
THREAT OF NEW
ENTRANTS
MEDIUM
Competitive Rivalry
Private label brands by retailors are priced at a discount to mainframe brands limits
competitions for the weak brands
Highly fragmented industry as more MNCs are entering
Advertisement & Promotional stuffs
Distribution
New product
Exit barriers are low
Buyer’s power
Prices are generally governed by international commodity markets, making most of the FMCG
companies a price taker.
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Threat of substitutes
Presence of multiple brands
Narrow product differentiation under many brands
Price war
Key Challenges
Product innovation
Lifestyle products
Backward integration
Third party manufacturing
Increased hiring from Tier 1 & 2 cities
Reducing carbon footprint
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
COMPANY INFORMATION
Company Snapshot
Dabur started with a dream of our founder, Dr. S. K. Burman of making health care products in
1884, has over the past 130 years turned into the World's Largest Ayurveda Company.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand
identities -- Dabur as the master brand for natural healthcare products, Vatika for premium
personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for fairness
bleaches and skin care products.
Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health Care,
Skin Care, Home Care and Foods. The ayurvedic company has a wide distribution network,
covering 6 million retail outlets with a high penetration in both urban and rural markets.
Dabur's products also have huge presence in the overseas markets and are today available in over
120 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries,
Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 30% of the total
turnover.
The 132-year-old ayurvedic company, promoted by the Burman family, started operating in 1884
as an Ayurvedic medicines company. From its humble beginnings in the by lanes of Calcutta,
Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer
goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur
has successfully transformed itself from being a family-run business to become a professionally
managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others
and to always set new standards in corporate governance & innovation.
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
SWOT Analysis
Strength
Weakness
Extend Vatika brand to new categories like Skin Care and body wash segments
Market Development
Export Opportunities
Innovation
Increasing income level of the middle class
Creating additional consumption pattern
Threats
Existing Competition like Himani, Baidyanth and Zandu for Dabur Chyawanprash and
Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil)
New Entrants
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Product Portfolio
Health Care
Hair Care
Oral Care
Skin Care
Facial Bleaches
Face Fresheners
Face Pack
Face Wash
Face Scrub
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Home Care
Mosquito Repellent
Air Freshener (Odonil)
Liquid Soap
Wet Wipes
Food
HEALTH CARE
SKIN CARE
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Competitor Analysis
Hindustan Unilever
• Hindustan Unilever Limited (HUL) is India's largest Fast Moving
Consumer Goods company with a heritage of over 80 years in
India
• HUL has over 35 brands spanning 20 distinct categories such as
soaps, detergents, shampoos, skincare, toothpastes, deodorants,
cosmetics, tea, coffee, packaged foods, ice cream, and water
purifiers
• Its portfolio includes leading household brands such as Lux,
Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline,
Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
Procter&Gamble
• P&G is one of the fastest growing consumer goods company in
India,established in 1964
• Its presence pans across the beauty&grooming segment ,the
house hold care segment, as well as health&well being segment
• P&G FMCG portfolio today includes
Vicks,Ariel,Tide,Whisper,Olay,Gillette,Ambipur,Pampers,Pantene,
Oral-B,Heads&Shoulders
The key competitors are Keo Karpin, Emami, Bajaj, Marico, HUL which together with Dabur have
about 64% of India & domestic market. Emami, Himani Navratan oil and Himani Oil. Emami has
taken Madhuri Dixit as brand ambassador for Emami oil and Amitabh Bachchan for
Himani Navratan Oil. Overall it has a share of 4% in hair oil market Bajaj:
Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12
per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided
to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an
attempt to reach the rural parts. Marico: Parachute is premium edible grade oil, a market leader in
its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the
platform of purity. In fact, over time it has become the gold standard for purity. Parachute primary
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
target has been women of all ages. The brand has a huge loyalty, not only in the urban seconds of
India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic
plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key
competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Himani, which
together with Dabur have about 85% of India & domestic market. Dabur Chyawanprash (herbal
honey) has a market share of 61%. We have tried to analyze the competition for Dabur in the
Chyawanprash segment. Dabur Glucose-D when compared to that of Heinz GLUCON-D was so
similar 'GLUCON-D' owned by rival company Heinz Italia. 'GLUCON-D' of Heinz and
'GLUCOSE-D' of Dabur both are tough competitor. Dabur Glucose-D comes 2nd position in terms
of sale in India.
News
Dabur completes acquisition of 2 personal care products firm in South Africa
Anand Rathi upgrades Dabur to buy with 21% gain, sees 12% CAGR in revenue over
FY17-20
Dabur to gain from new launches, changes in distribution strategy
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
MARKETING
Product Information
Real Fruit has a range of 16 exciting variants of fruit juices - from the exotic Indian Mango,
Mosambi, Guava, Plum & Litchi to international favorite’s like Pomegranate, Tomato, Cranberry,
Peach, Blackcurrant, Apricot & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit.
The customer can inculcate the goodness of these healthy fruit juices in your daily life with the
various fruit juice mocktail recipes Real offers.
Made from best quality fruits, Real does not have artificial flavors and preservatives, and offer
your kids not just great taste, but also FRUIT POWER - the power of fruits… the power to stay
ahead.
The nutritional contents of Real Fruit Juices & Nectars are endorsed by PFNDAI -- Protein Foods
& Nutrition development Association of India.
Marketing Mix
Product
Dabur Real Juice produces and sells different fruit juices. It has almost all the common juice
flavours which include mango, orange, grapefruit, blackberry, lemon, grape, apple, cherry,
banana, watermelon, raspberry, tangerine, pineapple, peach, strawberry and cranberry among
others. In a nutshell, it is almost certain that Tropicana will satisfy any of your juice needs as far
as taste, brand, and nutrition is concerned. One fruit juice among the very few common juices that
lacks on its shelf is pomegranate.
Price
The pricing strategy employed by Dabur Real Juice on its products is the low pricing strategy. In
fact, one of their main promotion strategies is based upon this low pricing strategy. The strategy
encompasses low price levels that are above-the-line activity. As a result of this pricing strategy,
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
the company has been registering better revenues thanks to the fact that more people are buying
and at a higher frequency than before.
Place
Dabur Real Juice targets all the market segments with its fresh, tasty and healthy juices. There is
not a single person today who doesn’t want to be healthy or one who doesn’t want their loved ones
to be healthy. Unfortunately, unlike the case with other healthy brands, Dabur Real Juice offers
users brands that are cheaper and affordable. Anyone from the middle-income base can, therefore,
afford to buy it.
Promotion
Dabur Real Juice is a very successful brand as it has managed to penetrate and maintain a
formidable market share. Its success is greatly attributed to its market strategy. There are few
companies that have invested in TV commercials the way Dabur has. In fact, during its primary
years, Dabur Real Juice was dominant in TV commercials in all the markets that it has already
managed to penetrate. And its commercials themselves were impressive, no wonder within no
time, customers were flocking to their shelves so that they can get a taste of the products.
Demographic Segmentation: -
Psychographic segmentation: -
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Lifestyle – Dabur targets people who are health conscious, want to replace sugar and old age
people who avoid sugar. Honey is also taken as medicine such as during cough given to kids.
Dabur honey today is associated with a lifestyle of the young and old of all class.
Needs and Benefits: Dabur successfully categorized the consumers on the basis their needs and
benefits.
Targeting
Dabur Real Juice has a distribution network that covers 175 towns and 75 thousand retail
outlets making its product available to the consumers across the country at ease.
The Target Market for Dabur Real Juice is people of all income levels. The target market
of Dabur is – People in the Upper, Middle and Lower class. Also, Dabur has targeted
the overseas market and has become a popular brand with its products available in over
120 countries.
Positioning
A fruit juice made from real fruits
The first stage of a product life cycle is the introduction or pioneering stage. During this stage
competition is not much, prices are relatively high and markets are limited and the product
innovation is not much. For its Real brand, Dabur focused on increasing the consumption by
targeting mothers and children. It led to the inception of the real fruit juice in 2004. At the same
time the company wanted to position the Real fruit Juice as its premium brand and hence there
was a premium pricing since its inception and in more ways than one it has worked in the favor
of the brand. During these times their main target was the children and to appeal to them, the
mothers were targeted.
Growth
It was in the year 2008 - 2009 that the company entered into its growth phase. The entry into this
phase was quite early and the growth of the market share of the real fruit juice was arguably,
incredible. Dabur launched a 360 degree market campaign to reinforce its real fruit juice image.
It was also launched many new flavors in which it was readily available in the market so as to
cater to a whole new set of customers. The drink which was previously available in two flavors
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
was now available in four new flavors which took its range to six. There was no other fruit juice
which was available in so many variants in the Indian market at that time. The Juice was better
concentrated and better packed so as to not be tampered with and it had an aura of freshness in it.
The idea behind this was as much as to make it an experience to have Real Fruit Juice as to
satisfy the nutritional needs of the masses.
Maturity
It can well be said that Real Fruit Juice is in its early maturity phase or in its late growth phase. It
has a whole new range of mix and taking its toll of available variants to 14 viz. grapes, plum,
litchi, pomegranate, mango, tomato, cranberry, orange, guava, peach, mixed fruits, apple,
apricot, pineapple. Frankly it has very other desired fruit juice available as a variant. It has a very
steady rise in its market share. From About 33% in 2009 to more than 55% in 2013, certainly
shows tremendous market presence. It is available at most stores and the company’s great
distribution channel only adds further to its increasing market share. The revenue share shows
that Real Fruit Juice is really doing great in the fruit juice sector in India and it has huge scope
for expansion considering its brand and distribution channel.
Decline
Real Fruit Juice till has not entered this stage and it's highly unlikely that it happens in the near
future.
Presence On Online Grocery Stores: Amidst of Amazon, Flipkart, and Snapdeal, FMCG
titan, Dabur recognized a new platform for reaching out a wider customer base. They
marked their presence on online grocery stores like Grofers and Big Basket.
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Focus On Their Own Websites: They also started focusing more on their own websites.
This is evident from the fact that a year ago, Dabur launched three websites to serve the
mother brand. Also, after six months of efforts, the website was re-launched a month ago
which proved to be a single window to the world of Dabur. This means that the customers
can reach the content websites directly from the homepage. There are channels started by
Dabur like NewU and DaburUveda.com for reaching a wider set of customers.
“Youngsters think of Dabur as a brand for their parents’ generation, but we are doing things
nobody would’ve expected Dabur to do.” Archan Banerjee, Head of Digital Marketing, Dabur
In the last two years, Dabur has been undergoing transformation to become a “young, modern, and
socially conscious organization”.
Featured in Google Case Study and Customer Engagement: Dabur had featured in a Google
case study for their ‘brave and beautiful’ campaign by Vatika Shampoo which made Dabur
to being the only FMCG company to have done so.
MANUFACTURER
WHOLESELLER
RETAILER
CONSUMER
REPORT ON FMCG (COMPANY- DABUR, PRODUCT- REAL)
Dabur Real Juice comes under two level distribution of channel. When there are two levels of
different kinds of intermediaries between the producer and the consumer. In other words, under
this channel, the manufacturer sells the product to the retailer and who finally sells to the
consumer. This is also called as distribution through wholesalers and retailers. All these three
channels can better be understood with the above diagram.
CONCLUSION
BIBLIOGRAPHY
www.ibef.org
www.aceanalyser.com
www.dabur.com