INTRODUCTION

Marketing. Several definitions have been proposed for the term marketing. Each
tends to emphasize different issues. Memorizing a definition is unlikely to be useful;
ultimately, it makes more sense to thinking of ways to benefit from creating customer
value in the most effective way, subject to ethical and other constraints that one may
have. The 2006 and 2007 definitions offered by the American Marketing Association
are relatively similar, with the 2007 appearing a bit more concise. Note that the
definitions make several points:

 A main objective of marketing is to create customer value.

 Marketing usually involves an exchange between buyers and sellers or between
other parties.
 Marketing has an impact on the firm, its suppliers, its customers, and others
affected by the firm’s choices.
 Marketing frequently involves enduring
relationships between buyers, sellers, and other parties.
 Processes involved include “creating,
communicating, delivering, and
exchanging offerings.”

Strategic Planning

Plans and planning. Plans are needed to clarify what kinds of strategic objectives an
organization would like to achieve and how this is to be done. Such plans must
consider the amount of resources available. One critical resource is capital. Microsoft
keeps a great deal of cash on hand to be able to “jump” on opportunities that come
about. Small startup software firms, on the other hand, may have limited cash on
hand. This means that they may have to forego what would have been a good
investment because they do not have the cash to invest and cannot find a way to raise
the capital. Other resources that affect what a firm may be able to achieve include
factors such as:

 Trademarks/brand names: It would be

very difficult to compete against Coke
and Pepsi in the cola market.
 Patents: It would be difficult to
compete against Intel and AMD in the
microprocessor market since both these
firms have a number of patents that it
is difficult to get around.
 People: Even with all of Microsoft’s money available, it could not immediately
hire the people needed to manufacture computer chips.
 Distribution: Stores have space for only a fraction of the products they are
offered, so they must turn many away. A firm that does not have an established
relationship with stores will be at a disadvantage in trying to introduce a new
product.

History Of Chyawanprash

According to Mahabharata Chyawan was one of the eight son

of Bhrigu and Puloma, he was physically weak due to his
premature birth and he has enjoyed the status of being the
only divine son of Puloma. Maharashi Chyawan married King
Sharyati’s daughter Sukanya at an old age. Sometime after the
marriage, the twins Ashvini Kumaras came to the hermitage of
saint Chyawan and offered him a medicine after the use of
which the saint regained his youth. That drug was named as
‘Chyawanprash’ after the name of Chyawan; thus it is a divine
preparation.

Times have changed and Chyawanprash is now more easily

accessible than ever. Dabur Chyawanprash strictly follows the
recipe that was laid down centuries ago and its magical
properties still remain the same.

Dabur India Ltd. - Corporate Profile

Dabur India Ltd is one of India’s leading FMCG

Companies with Revenues of about US$750
Million (over Rs 3416 Crore) & Market
Capitalisation of over US$3.5 Billion (over Rs
16,000 Crore). Building on a legacy of quality and
experience of over 125 years, Dabur is today
India’s most trusted name and the world’s
largest Ayurvedic and Natural Health Care
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, Réal for fruit juices and
beverages and Fem for fairness bleaches and skin
care products.

Dabur today operates in key consumer products

categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The
company has a wide distribution network, covering
over 2.8 million retail outlets with a high
penetration in both urban and rural markets.

Dabur's products also have a huge presence in the

overseas markets and are today available in over
60 countries across the globe. Its brands are
highly popular in the Middle East, SAARC countries,
Africa, US, Europe and Russia. Dabur's overseas
revenues stands at over Rs 500 Crore in the
2008-09 fiscal, accounting for about 20% of
the total turnover.

The 125-year-old company, promoted by the

Burman family, had started operations in 1884 as
an Ayurvedic medicines company. From its humble
beginnings in the bylanes of Calcutta, Dabur India
Ltd has come a long way today to become one of
the biggest Indian-owned consumer goods
companies with the largest herbal and natural
product portfolio in the world. Overall, Dabur has
successfully transformed itself from being a
family-run business to 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.

ChyawanPrinciples
Holistic Healthcare

The principle of Dabur Chyawanprash

Ayurveda looks beyond individual symptoms into the total human system…the sharir (body),

manas (mind) and atma (soul).

Ayurveda recognizes three basic forces or elements that control that control all physical and

mental processed. Vita controls moments within the body. Pitta controls digestion and all

biochemical processes. Kapha controls the tissue fluids, cell growth and firmness of the body.

Imbalance of three forces causes illness. Ayurveda prevents imbalance or restores balance.

Ayurveda sees the totality of a human being as a dynamic balance of myriad related, often

contradictory, elements in motion. Looks for clues not only in the body, but in behaviour

patterns, moods and thoughts. It seeks to allay symptoms by correcting the total balance, not

attacking individual symptoms.

True. 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. Executive Summary

This report aims at analyzing and reporting on the marketing strategies of

Dabur India Ltd (DIL) for the brands  Dabur Chyawanprash.  Pioneering role

that it has played in the evolution of the categories it has had a presence in.

Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys

a market share of 61 per cent. In 50s Dabur pioneered the concept of

branded Chyawanprash and since has invested heavily in product

development, clinical studies and consumer awareness. The product is

essentially a health supplement.

This report is not aiming at the overall marketing mix or the marketing

strategy of Dabur India Ltd, but is an attempt to analyse the marketing mix

of Dabur Chyawanprash.

The report also enlists various recommendations based on BCG Growth

Share Matrix analysis, Ansoff’s Product Matrix Expansion Grid, SWOT

Analysis etc. This analysis has been done on the basis of the information

gathered from the company website and other online resources and books

and articles.

Objectives:

 To understand the demand pattern of Dabur Chyawanprash products

in the rural market.
 To know the amount of household income spent on the consumption of
FMCG products of Dabur.
 To understand the image of the products in the eyes of the consumers.
 To analysis market petition strategy of Dabur for rural market.

Recommendations:

 Focus on growing core brands across categories.

 Reaching out to new geographies, within Hapur area.
 Improve operational efficiencies by leveraging technology.
 Be the preferred company to meet the health and personal grooming
needs of our target consumers with safe, efficacious, natural
 solutions by synthesizing the deep knowledge of ayurveda and
herbs with modern science.
 Provide consumers with innovative products within easy reach.
 Vatika hair care centre: On the lines of Marico’s Kaya Skin Clinic,
Dabur could start a venture called Vatika hair care centre which
would provide total hair care solutions. It could have hair care
experts to solve hair problems.Services could include dandruff
treatment, straightening of hair, treatment for split ends,etc.
 Position Dabur Chyawanprash as not more of a medicine but as
something which is necessary for health.

More initiatives like “ Dabur ki Deewar” to increase brand visibility. It is an

initiative to occupy shelf space. Dabur
India Ltd. - Corporate Profile

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of about US$750
Million (over Rs 3416 Crore) & Market Capitalisation of over US$3.5 Billion (over Rs 16,000
Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today
India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care
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, Réal for fruit juices and beverages and Fem for fairness
bleaches and skin care products.

Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are today available in
over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC
countries, Africa, US, Europe and Russia. Dabur's overseas revenues stands at over Rs 500
Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had started operations in 1884 as
an Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur
India Ltd has come a long way today to become one of the biggest Indian-owned consumer
goods companies with the largest herbal and natural product portfolio in the world. Overall,
Dabur has successfully transformed itself from being a family-run business to 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.

Dabur At-a-Glance

Dabur India Limited has marked its presence with significant achievements
and today commands a market leadership status. Our story of success is
based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results of
our policies and initiatives speak for themselves.

 
 Leading consumer goods company in India with a turnover of Rs.
2834.11 Crore (FY09)
 3 major strategic business units (SBU) - Consumer Care Division
(CCD), Consumer Health Division (CHD) and International
Business Division (IBD)
 3 Subsidiary Group companies - Dabur International, Fem Care
Pharma and newu and 8 step down subsidiaries: 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),
Weikfield International (UAE) and Jaquline Inc. (USA).
 17 ultra-modern manufacturing units spread around the globe
 Products marketed in over 60 countries
 Wide and deep market penetration with 50 C&F agents, more than
5000 distributors and over 2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the entire
FMCG spectrum through four distinct business portfolios of Personal Care,
Health Care, Home Care & Foods

 Master brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Réal - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
 9 Billion-Rupee brands: Dabur Amla, Dabur
 Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool,
Hajmola and Dabur Honey
 Strategic positioning of Honey as food product,
leading to market leadership (over 75%) in
branded honey market 
 Dabur Chyawanprash the largest selling Ayurvedic
medicine with over 65% market share.
 Vatika Shampoo has been the fastest selling
shampoo brand in India for three years in a
row
 Hajmola tablets in command with 60% market
share of digestive tablets category. About 2.5
crore Hajmola tablets are consumed in India
every day
 Leader in herbal digestives with 90% market share

Consumer Health Division (CHD) offers a range of classical Ayurvedic

medicines and Ayurvedic OTC products that deliver the age-old benefits of
Ayurveda in modern ready-to-use formats

 Has more than 300 products sold through

prescriptions as well as over the counter
 Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
 Proprietary Ayurvedic medicines developed by
Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
 Division also works for promotion of Ayurveda
through organised community of traditional
practitioners and developing fresh batches of
students 

International Business Division (IBD) caters to the health and personal

care needs of customers across different international markets, spanning the
Middle East, North & West Africa, EU and the US with its brands Dabur &
Vatika 
 
 Growing at a CAGR of 33% in the last 6 years and contributes to about
20% of total sales
 Leveraging the 'Natural' preference among local consumers to increase
share in perosnal care categories
 Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

Dabur India Ltd. - Corporate Profile

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of about US$750
Million (over Rs 3416 Crore) & Market Capitalisation of over US$3.5 Billion (over Rs 16,000
Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today
India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care
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, Réal for fruit juices and beverages and Fem for fairness
bleaches and skin care products.

Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network,
covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are today available in
over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC
countries, Africa, US, Europe and Russia. Dabur's overseas revenues stands at over Rs 500
Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had started operations in 1884 as
an Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur
India Ltd has come a long way today to become one of the biggest Indian-owned consumer
goods companies with the largest herbal and natural product portfolio in the world. Overall,
Dabur has successfully transformed itself from being a family-run business to 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.

Strategic Intent
We intend to significantly accelerate profitable growth. To do this, we
will:

 Focus on growing our 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 our target consumers with safe, efficacious, natural solutions
by synthesizing our deep knowledge of ayurveda and herbs with
modern science
 Provide our 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 our peer group, to our
shareholders

Dabur Chyawanprash Brand Update : Dabur Chyawanprash

has gone in for a major revamp. The look and feel of the brand has changed and so is the
brand ambassador. This November, Dabur has decided to change the look and feel of its
leading brand Dabur Chyawanprash.

Dabur hold a commanding 60 % share in the Chyawanprash market. The brand has
been using Amitabh Bachchan as its brand ambassador. Infact Big B has been endorsing
the brand for more than five years now.
 Chyawanprash faces a unique perception issue. The brand is
perceived to be a health supplement for elders and kids . The younger generation feels
that the brand is not relevant for them. Dabur had earlier addressed this issue in their
earlier campaign ' Zaroorat Hai ' using the concept of ' role reversal ' .

Although Big B provided huge equity to the brand, the elderly ambassador further
reinforced the perception that the product is for older people.

To break this perception, Dabur has come out with a new campaign featuring the new
ambassador MS Dhoni. Dhoni is expected to make the brand attractive to the younger
generation. The current success of Dhoni as a cricketer and as a captain gives added
advantage to the brand.

Dabur has done more than just a new communication. The brand has also changed the
packaging. The new packaging with lot of red color symbolises the activity and alertness.
The bottle shape also has been made more modern. Chyawanprash also has a new logo
which also reinforce the new targeting.

Dabur also has a new tagline for Chywanprash . The brand has done away with the
earlier tagline " Zaroorat Hai ". The new tagline is ' Fit Body , Active Mind '. The brand
gives the message that to win in life, one needs to have an active mind and a fit body.

The brand is currently running a new campaign in television featuring Dhoni.

Watch the tvc here : Dhoni

As in the case of any successful celebrity, Dhoni also faces the issue of over exposure .
He is now sponsoring many brands from textiles to beverages. In the health drinks
category he endorses Boost which is a competitor for Chyawanprash in a broader sense.

When I first saw the commercial, I mistook the ad for Boost. Boost also features Dhoni
and Sachin as the brand ambassadors. The settings of both the Boost ad and the
Chyawanprash ad are quite similar. Both ads even use the same color red as the main
anchor. Only at the end of the ad, I realized that it was for Dabur Chyawanprash.

In message formating , it is better to introduce ( identify) the brand early in the

campaign while using celebrities. Because the current trend is that most of the
celebrities are over leveraged. Customers will associate the celebrity to some other
 brand if there is late identification of brand in the advertisments.

Professors Brian Sternthal and Angela Lee in the book " Kellogg on Branding " suggests
that late identification strategies are used by brands to create a suspense and hence hold
the attention of consumers. However, this is a risky strategy since consumers are free to
make their own associations throughout the advertisement duration. Presenting the
brand name at the end of the ad may not correct the erroneous association. People do
not find it worthwhile to put an effort to correct such an association.

The authors say that late ID is useful for those brands where customers have an
unfavorable disposition . Here in this case , there is an unfavorable perception that the
brand is for elders and kids . But at the same time , the brand ambassador is endorsing a
category competitor. Hence in this case, late identification may have little effect than
desired.If Dhoni was not endorsing any other health drinks, this campaign could have
produced greater results.

"Dedicated to the health and well being of every household"

This is our company. We accept personal responsibility, and accountability to

meet business needs.

We all are leaders in our area of responsibility, with a deep commitment to

deliver results. We are determined to be the best at doing what matters
most.

People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.

We have superior understanding of consumer needs and develop products to

fulfill them better.
 We work together on the principle of mutual trust & transparency in a
boundary-less organisation. We are intellectually honest in advocating
proposals, including recognizing risks.

Continuous innovation in products & processes is the basis of our success.

We are committed to the achievement of business success with integrity. We

are honest with consumers, with business partners and with each other.

How ever, the brand will gain with the association with Dhoni. According the reports,
Dabur also retains Amitabh Bachchan . That makes a formidable combination of
endorsers for the brand.

Sustainability Report

At Dabur, environment and nature is the lifeline of our business. With

a portfolio of Ayurveda and nature-based products, conservation of nature
& natural resources is deep rooted in our organizational DNA, and in
every aspect of our ever-growing business.

We, at Dabur, have not merely incorporated the concept of sustainability

into the core of our business but have, in fact, expanded it to encompass our
aspirations and responsibilities to the society and to the environment. It is
this concept that inspires us to optimize our business performance to tackle
the new and growing challenges of environment and technology.

It is a concept on which we aspire to build an organization that will continue

to increase value for all our stakeholders for generations to come, through
intensive focus on Conservation of Energy and Technology
Absorption, along with Health, Safety and Environment Protection.

Conservation of Energy
 Dabur has been undertaking a host of energy conservation measures.
Successful implementation of various energy conservation projects have
resulted in a 13.8% reduction in the Company’s energy bill in the
2008-09 fiscal alone. What was noteworthy was the fact that this reduction
has come despite an 8-9% volume increase in manufacturing, and an
average 11.7% increase in cost of key input fuels.

The host of measures – key among them being use of bio-fuels in boilers,
generation of biogas and installation of energy efficient equipment – helped
lower the cost of production, besides reduce effluent and improve hygiene
conditions & productivity.

Technology Absorption

Dabur has also made continuous efforts towards technology absorption and
innovation, which have contributed towards preserving natural resources.
These efforts include:

 Minimum use of water in process by pre-concentration of herbal

extract and reduction in concentration time
 Uniform heating in VTDs by hot water as against steam earlier,
resulting in 30% reduction in bulk wastage by using non-stick coating
and formulation change
 Improvement in water treatment plant through introduction of RO
(Reverse Osmosis) system for DM water, reutilization of waste water
from pump seal cooling and RO reject waste-water management
 Introduction of water efficient CIP system with recycling of water in
fruit juice manufacturing
  Development of in-house technology to convert fruit waste into organic
manure by using the culture Lactobacilus burchi

The Company has achieved a host of significant benefits in terms of product

improvement, cost reduction, product development, import substitution,
cleaner environment and waste disposal, amongst others.

Health Safety & Environmental Review

Renewing the commitment to Health Safety and Environment, Dabur has

formulated a policy focusing on People, Technology and Facilities. A
dedicated “Safety Management Team” has also been put in place to
work towards the prevention of untoward incidents at the corporate and unit
level, besides educate & motivate employees on various aspects of Health,
Safety and Environment.

The Company is also continuously monitoring its waste in adherence

with the pollution control norms. In pursuance of its commitment
towards the society, efforts have also been initiated to conserve and
maintain the ground water level. The efforts include implementation of
rainwater harvesting, which has delivered encouraging results and has put
the company on the path to becoming a Water-Positive Corporation.

Dabur also initiated a Carbon Foot Print Study at the unit level with
an aim to become a carbon positive Company in years to come.

At Dabur, we are committed to sustainable development throughout our

diverse operations. And, we will strive to translate the good intentions
into concrete and lasting results, contributing to the ultimate good
of the society.

Conclusion:

The Chyawanprash Industry is yet to capture the beverage market in full

swing. Packed Chyawanprash followed by Amla, Ashwagandha, Hareetaki,

Dashmul, Ghrit and several

other herbs and herbal extracts. the market. The consumer’s patriotic love

for tea and coffee is unfared. Chyawanprash are yet to establish their

supplement use in the average household here in lies the great

opportunities. Within  the market, it is safe to conclude that dabur has hit off

ratherwell with the masses.  dabur has clearly lost it head start advantage

and thereby acquiring just 35% of the market share while others enjoys rest

of the market share.  This could be well attributed to dabor successful ATA

(Availability, Taste and Affordability) marketing module, the attributes most

rated by the consumers.  Lack of publicity has hampered the growth

progress of  the brand so aggressive advertising is needed to promote

Chyawanprash and vatika hair oil brand .The brands such as that of

Chyawanprash by vednath,  Chyawanprash with its ‘sonacahndi, ‘Minute-

made’ and also US food giantssDel Monte are ready to hit the

Chyawanprash market very soon.

As the strategies of the companies keeps on changing, be it in

Chyawanprash industry, a company has to create perceptions and cover

them into realities.   It is an expensive proposition requiring  huge

expenditure on advertising, sponsorships and media.  Thus, the ideal 

company will be the one which combines the high end technology with

consumer insight.

As 16% of the excise duty is exempted on food products in this budget ,

Many food companies including Dabur got benefited from it . On the analysis

of survey it was found that target Market of Chyawanprash want quality

benefit rather then Price benefit, so it is better to stress on quality rather

than on decreasing price to increase sales and profit. To increase market

share Dabur should give slight price benefit on Dabur  brand so that

customers of other Juice brand should switch from other brand to Dabur

brand
