A

Project Report
ON

Market strategy of Dabur Vatika Hair Oil

2011-2013

International School of Informatics & Management

Submitted to :Mr.RAHUL SHARMA Faculty ISIM

Submitted by:HEENA KHICH PGDM 1ST SEM.

ACKNOWLEDGEMENT
The present work is an effort to throw some light on Market Strategy of Dabur Vatika Hair Oil. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledged the encouragement and guidance received by my institutional mentor Mr. RAHUL SHARMA. I convey my heartful affection to all those people who helped and supported me during the course, for completion of my project report

(HEENA KHICHI)

CONTENTS
Part 1
ACKNOWLEDGEMENT OBJECTIVE OF STUDY INTRODUCTION OF FMCG BOARD OF DIRECTORS COMPANYS OVERVIEW COMPANYS HISTORY PRODUCT LINE PART 2 SWOT ANALYSIS OF DABUR OVERVIEW OF HAIR OIL SEGMENT & DABUR VATIKA STP ANALYSIS OF DABUR VATIKA MARKETING MIX OF DABUR VATIKA COMPETITOR ANALYSIS FUTURE FOR DABUR GROWTH STRATEGY RESEARCH METHODOLOGY RECOMMENDATIONS CONCLUSIONS

REFERENCES

QUESTIONNAIRE

Objective of study

1. 2.

To study the impact of Budget Policies on

Improvement of sales of Dabur Vatika. To study the Consumer, Buying behaviour.

3. To study the problems faced by Dabur.

INTRODUCTION OF FAST MOVING CONSUMER GOODS

What are FMCGs? We regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. But do we know under which category these things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper. Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. FMCG products contrast with durable goods or major appliances such as kitchen appliances, which are generally replaced less than once a year. In Britain, "white goods" in FMCG refers to large household electronic items such as refrigerators. Smaller items such as TV sets and stereo systems are sometimes termed "brown goods".[citation needed] Some of the best known examples of Fast Moving Consumer Goods companies include Clorox, Colgate-Palmolive, General Mills, H. J. Heinz, Reckitt Benckiser, Sara Lee, Nestl, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kimberly-Clark, Kraft, Pepsi, Warburtons, Wilkinson and Mars.

FMCG SECTOR 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, household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCG sector is very high resulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in rural areas and state brands. FMCG Products and Categories Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps). Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products. Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet

cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish; FMCG in 2007

The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors. After two years of sinking performance of FMCG sector, the year 2006 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree.

- Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc. - Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG. Sector Outlook FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

SWOT Analysis of FMCG Sector

Strengths: 1. Low operational costs. 2. Presence of established distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector.

Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors. 2. Low exports levels. 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending

Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2.Slowdown in rural demand Tax and regulatory structure.

Scope Of The Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2006 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue. Growth Prospects With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2008, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However,

rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term Indian growth categories and in both rural with and the urban World areas. Markets Competitiveness Comparison

The following factors make India a competitive player in FMCG sector: Availability of raw materials Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labour cost comparison Low cost labour gives India a competitive advantage. India's labour cost is amongst the lowest in the world, after China & Indonesia. Low labour costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.

Presence across value chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the foodprocessing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

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
Dr. Anand Burman

Voice chairman

Mr.Amit Burman

WHOLE DIRECTOR Mr. Sunil Duggal

Mr. Pradeep Burman

Mr- P.D. Narang

COMPANY OVERVIEW
Over its 125 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among Indias top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. The trust levels that this brand enjoys are phenomenally high. While Rises and Trout may ask What does Dabur stand forshampoo or digestive tablets? The answer is fairly simple, it stands for Indias fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.

COMPANY HISTORY

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow. 1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. 1930 - Automation and upgradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India. 1949 - Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the

first branded Chyawanprash in India.

1957 - Computerisation of operations initiated 1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses. 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source 1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country. 1998 - Burman family hands over management of the company to professionals

2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses. 2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore

2003 - Dabur demerges Pharmaceuticals business

Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business. Maintaining global standards As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Science for nature Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. 2005 - Dabur aquires Balsara As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in a Rs 143-crore all-cash deal. 2005 - Dabur announces bonus after 12 years

Dabur India announced issue of 1:1 Bonus share to the shareholders of the

company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore. 2006 - Dabur crosses $2 bin market cap, adopts US GAAP.

Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance. 2006 - Approves FCCB/GDR/ADR up to $200 million

Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad. 2007 - Celebrating 10 years of Real

Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits. 2008 - Foray into organised retail

Dabur India announced its foray into the organised retail business through a whollyowned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. 2008 - Dabur Foods Merged With Dabur India

Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space.

PRODUCT LINE Foods

Real Real Active Hommade Lemoneez Capsico

Health Care

Baby Care Dabur Lal Tail Dabur Baby Olive Oil Dabur Janma Ghunti

Health Supplements Dabur Chyawanprash Dabur Glucose D

Digestives

Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola Candy Hajmola Candy Fun2

Pudin Hara (Liquid and Pearls) Pudin Hara

Natural Cures

Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Backaid Shankha Pushpi Dabur Balm Sarbyna Strong

Personal Care

Hair Care Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla

Hair Care Shampoo

Anmol Silky Black Shampoo Vatika Henna Conditioning Shampoo Vatika AntiDandruff Shampoo Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel Dabur Red Toothpaste Babool Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush

Skin Care

Gulabari
Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda Ayurveda Vikas

SWOT ANALYSIS OF DABUR

STRENGTHS
Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialities). Core knowledge of Ayurveda as competitive advantage. Strong Brand Image Product Development Strength Strong Distribution Network Extensive Supply Chain IT Initiatives R & D a key strength Seasonal

WEAKNESS
Demand( like chyawanprash in winter and Vatika not in winter) Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd of the total market(Vatika)

OPPORTUNITIES
Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation Increasing income level of the middle class Creating additional consumption pattern

THREATS
Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo Karpin, HLL and Bajaj for Vatika Hair Oil) New Entrants Threat from substitutes (like Bryllcream for Vatika hair oil)

Overview of the Hair Oil segment

In the last quarter of the previous century Indian women have imbibed global mores, ethics, fashions and styles in a remarkable way. Yet the popular iconography of Indian beauty still associates them with beautiful fair skin and dark, long lustrous hair a commonly accepted definition of beauty in Indian society. Across the country, mothers spend endless hours teaching their daughters what their mothers had taught them about maintenance of their natural beauty taken primarily as caring for the skin and hair. In the hair care regime, of the numerous prescriptions none is more universally accepted than the oiling of hair for nourishment and use of home-made concoctions of henna and shikakai paste for conditioning them. It would come as a surprise to only a few that hair oils have a penetration of almost 98% (Source: IRS). Of the branded market, hair oils form a major chunk accounting for Rs. 13 billion with coconut hair oils as the prime segment at Rs. 9.1 billion. (Source: ACNielsen ORG-MARG).

OVERVIEW OF VATIKA

The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the companys highest selling brands. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2007, brand sales crossed Rs. 1,000 million. From the companys perspective, Vatika is expected to continue to drive its growth in the years to come. With its innovative offerings, the brand aims to become a frontrunner in the market for hair care and skin care products. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. Currently, the total annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the coconut hair oil category (Source: ACNielsen ORGMARG

STP ANALYSIS OF VATIKA HAIR OIL

SEGMENTATION
Vatika Hair Oil was launched at an almost 100% premium to the market leader. This meant that the segment of the market that dabur wanted to cater to was the premium segment which valued nourishment of the hair above the price and it tried to attend to that segment which was not price sensitive.

TARGETING
This was in line with its proposition and overall brand strategy of a premium up-market product targeted for individual needs as opposed to the collectivist culture of the category. It targeted the high income urban category of hair oil users. Since the product was expensive it could mainly cater to the urban market as opposed to the rural market where consumers are highly price sensitive. Being positioned as having amla, henna and lemon extracts, the product was targeted towards the young, contemporary, educated, multifaceted, achievement-driven and confident women who were positioned as the Vatika Woman.

POSITIONING Total hair Care brand

The product innovation was fed by the vital consumer insight that many women in contemporary India are worried about hair problems caused by urban pollution, frequent change of diet due to geographical mobility and other factors. Beset by modern-day hair problems, they are far more inclined to rely on home-grown remedies. By offering hair oil that combined the benefits of natural products in a single pack, Vatika created a niche for itself as the total hair care brand.

Natural offering:

Vatika is a brand that espouses traditional wisdom about health in a modern format. It believes that nature has perennial answers to day-to-day health issues, particularly when it comes to hair care and skin care. In a world where modern living causes untold stress the Vatika brand holds out the promise of providing natural ingredients that rejuvenate and safeguard the human body in an extraordinary way. This concept is put to work through contemporary, modern products, offered by Vatika.

The Vatika woman

The Vatika woman is young, contemporary, educated, multi-faceted, achievement-driven and confident. It is in the Vatika brand that she sees a true reflection of her own personal ideals. Through creation of the concept of Vatika woman, it has tried to carve out a new positioning in the minds of the new age woman.

MARKETING MIX OF VATIKA HAIR OIL

Vatika Hair Oil has made a huge impact with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Vatika Hair Oil. The mix shall be analyzed as followed:

Product Price Place Promotion

Product Product Variety Quality Design Features Brand Names Services Price List Price Discount Financing Schemes Credit Terms Promotion Advertising & Promotion Public Relations Sponsorship Internet Marketing Place Channel Location Inventory

PRODUCT: Brand Name: Vatika in Hindi means garden. The brand attempts to live up
to the promises beauty and nature that are associated with its very name. Starting with these associations Vatika has assiduously built a brand that delivers on all these values through its various product offerings, the mother brand being Vatika Hair Oil.

Innovative product offering: Vatika Hair Oil is coconut hair oil with
special ingredients adding value to the product. While coconut oil has been regularly used by Indian women as a basic hair nutrient, a combination of herbs and natural products such as henna, amla and lemon have been used for special hair needs.

Coconut hair oil provides nourishment to the hair, while henna along with other herbs coat the hair and protect it from oxidation, thereby maintaining its natural colour. Amla strengthens hair roots and helps maintain their natural health and thickness. Lemon with its astringent action controls sebum flow and helps in prevention of dandruff. Apart from henna, alma and lemon, it also contains other natural ingredients like brahmi,neem,bahera,kapurkachari,harar,dugdha and sugandhit dravyas.

Packaging: The qualities of Vatika products, ascribed to the brand by

hundreds of thousands of satisfied consumers, have been further underlined by its attractive packaging. In a category dominated by blue packs as analogous of pure coconut oils, Vatika broke the norm with its white and green bottle with a mushroom cap. The green-and-white colors, used in its packaging, reflect the brands natural ancestry and give it a premium look. These also help Vatika stand out in the cluttered environment of Indian retail. Available in: Bottles Flip cans 75 ml, 150 ml, 300 ml 150 ml, 300 ml

Flip cans were introduced for the winter season.

Quality: Vatika products contain natural ingredients that have been

blended together through scientific processes at Daburs in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards.

PRICE:
In the traditional coconut hair oil category, which presumably had price sensitive consumers, Vatika Hair Oil with its value added proposition henna, amla and lemon in a pure coconut oil broke this myth when it launched at almost a 100% premium to the market leader; even with such a price strategy it was able to garner a significant share from the leader in the very first year of its launch.

PRICE/QUALITY MATRIX Price Quality Luxury Segment High VATIKA Ideal n For Premiere Offering High Middle Low

Penetratio

Overpric Middle ed Make The Sale and Low Run

Average

Real Bargain

Unhappy Customer s

Cheap Goods

PLACE
Vatika products including Vatika Hair Oil are sold in 38 countries through more than 15 lakh retail outlets and 5,000 distributors who service the entire country through a wide marketing network.

Daburs distribution network extends beyond India in the following countries as well:

Distribution Network Central, North & South America Australia Asia Middle East North & South Africa East & West Europe

DISTRIBUTION
Supply chain: Dabur has steadily improved its procurement and distribution systems to achieve a significant reduction in material costs. Dabur has an extensive supply chain and distribution network that has grown and spans 29 factories, 47 stocking points, 4 zonal offices, a dozen manufacturing locations, six mother-warehouses and over 50 Carrying and Forwarding Agents(CFAs) that distribute more than 1,000 SKUs to several thousand stockists and dealers.

MIS: An in-house developed, easy-to-use, Intranet based data-warehouse displays as-of-yesterday sales, stock, receivables, banking, and other MIS. Over 5,000 ASP pages meet almost all reporting requirements and make this a single source of MIS for all levels of decision makers.

VSATs :This Success paved the ground for the company's supply chain initiative. Fifty-five Ku Band TDMA VSATs were used to link primary distributors to the system. Factories were hooked up using PAMA (Permanent Assigned Multiple Access) VSATs. At some locations VPNs had to be used because it was not possible to set up a dish. The integrated primary and secondary system has a number of unique features. The features like tight integration of schemes, stockists credit limit control, automated banking of cheques, and online cheque reconciliation have obvious advantages in the primary distribution. These are basically extensions to the MFG/PRO ERP system and not core customizations. The integrated system allows each Area Manager to plan for the month's sales forecasts, stockists performance, and

sales officers' performance. The integration allows better control on pipelines in primaries and secondary, brings down inventories, and offers better control on production and sales against a confirmed forecast. The idea is to increasingly shift focus from primaries to secondary. Schemes based on secondary volumes will help control secondary pipelines and sales. Primary sales will therefore come from a resultant 'pull' from secondary

replenishments. Further, sales order servicing can be improved by taking orders through the Internet, and by setting stocking norms and replenishing stocks to improve ROI of stock holders.

PROMOTION:
Vatika the key focus brand of the company has always been well supported. The company realised early that, from the perspective of brand building, it was vital to invest in this brand.

Vatika Hair Oils first promotion: It focussed on the key benefit

beautiful hair without hair problems that came about as a result of the extra nourishment through the value addition of henna, amla and lemonderived additives.

Creating conceptual awareness: In the initial phase of the

communication, the marketing objective was to create conceptual awareness about the new product the goodness of coconut oil enriched with natural herbs. Vatika was firmly established as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika. In 1997, the company created a new promotion campaign which reinforced the obvious fact that most coconut oil brands were not equipped to combat the effects of pollution, hard water and chemicals the major causes of hair ailments and hair deterioration.

ADVERTISING
Advertising is some form of paid-for method of communicating with the target audience to inform, educate, reinforce or persuade, leading to mutually satisfactory exchange Nothing can happen without establishing the brands heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mouldable and fluid and the consumers sophistication level is low. Vatika Hair Oil uses a number of advertising media like television, print, internet, outdoor media which includes hoardings.

Events: In a series of other promotional activities, Vatika has been

associated with shows and sponsored events such as the Vatika Super Model India 2001 and Vatika Zee Sangeet Awards. It has also had a strong association, since its inception, with Movers and Shakers the popular TV show.

Celebrity Endorsements: The idea of using an extraordinary hair oil

that offered extra nourishment was communicated through campaigns featuring icons such as Mandira Bedi, Shefali Chhaya and Sudha Chandran all modern, young women perceived to have that extra edge in their personality.A number of commercials over the years have featured personalities like Aditi Govitrikar, Preeti Jhangiani and Shweta Jaishankar.To infuse the values of youthfulness and natural beauty, Rani Mukherjee is the current brand ambassador.

COMPETITOR ANALYSIS
The key competitors of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's domestic market. Dabur is one of India's largest player in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year. Dabur Hair Oils have a market share of 19%. We have tried to analyse the competition for Dabur in the Hair Care segment as follows:

Keo Karpin, a fifty-year old brand, is a pioneer in the light hair oil category. The pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant presence in eastern and western India. Its share is 6% of the total hair oil market. Emami has existence in hair oil market through Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market.

Bajaj has two flagship oil brands - 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. Overall it has a market share of 4% in hair oil market. Maricos 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's primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3% share in hair oil market.
ANSOFFS

PRODUCT MARKET EXPANSION GRID

MARKET PENETRATION: The new campaigns, featuring Amitabh Bachchan and, for the first time, Vivek Oberoi, makes an aggressive attempt to establish the relevance of Chyawanprash in an increasingly tough and demanding

lifestyle, for the entire family. As a market leader, Daburs focus has been to increase the relevance of this time-tested and proven product in the family both for users and non users - and increase penetration. In their new campaign they have tried to establish the fact that Chyawanprash, with its well - being properties, gives an edge to the users and dispel the myth that it should be consumed in illness or is meant only for Children or the aged. MARKET DEVELOPMENT: Dabur has identified exports as a major thrust area for the future. An international business division has been set up within the company to promote exports and it expect this business to grow steadily in the coming years. The company plans to focus on Russia and CIS countries along with Afghanistan, West Indies and the Asia Pacific region. It has also entered the North American markets by appointing distributors and initiating marketing of products to the ethnic Indian segment. The company has already been exporting hair oils, shampoos and Hajmola candies to Afghanistan. In Bangladesh, Dabur is entering into a joint venture with a local partner to manufacture and market its products. Dabur will hold a majority stake in this joint venture. PRODUCT DEVELOPMENT: Dabur India Ltd (DIL),buoyed by a bottom-line growth of 84 per cent in the first quarter this fiscal, would be investing significantly in the launch of several new products including Dabur Herbal Toothpaste and Vatika Henna Conditioning hair packs over the coming months. The Vice-President-Sales, Mr S. Raghunandan, said, "The FMCG industry cannot be defined only by the performance of large players. Smaller companies are now dictating terms and defining the market. DIL will launch new products backed by adequate research." Diversification: Diversification across product segments and markets is one of the key factors in favour of Dabur India. In 2001-02, Dabur India had three major revenue contributors FMCG products, pharmaceuticals and ayurvedic specialties, accounting for 76 per cent, 14 per cent and 7 per cent

respectively, of its revenues. Dabur's FMCG product basket includes such strong brands as Dabur Chyawanprash, Vatika hair products, Hajmola digestive candy, Pudin Hara, Dabur Lal Dant Manjan and Dabur Lal Tail massage oil. In pharmaceuticals, Dabur India markets branded as well as bulk formulations, both in the domestic and export markets; oncologicals is a key focus area. Dabur's anticancer molecule DRF 7295 is currently in Phase I clinical trials on humans. In a bid to diversify its product portfolio, Dabur India Ltd (DIL) has entered the toilet soap market besides expanding its over-the-counter (OTC) medicine range with 10 new additions over the next few months. The company has begun test marketing toilet soaps under the brand name Vatika in West Bengal. There is a single variant, containing saffron and honey, right now and Dabur is positioning it on the herbal platform. Manufacturing of the soaps category is being outsourced at present. Besides diversifying its product portfolio under the Consumer Care Division (CCD) with a foray into soaps, DIL has also decided to enhance focus on the Consumer Healthcare Division (CHD) this fiscal. The newly created CHD division within DIL deals in prescription-based Ayurvedic medicines and overthe-counter (OTC) products. Traditionally a business with low growth prospects, CHD closed 2004-05 at Rs 107.8 crore. Some of the existing OTC products of DIL include cough and cold formulation Honitus, isabgol called Naturecure, and memory enhancer Shankhpushpi . The company plans to launch other products under its own brand name in Russia and has already launched Dabur Boro Glow.

DABUR

In the past, the sheer diversity of Dabur's product portfolio has made an evaluation of the company's prospects quite difficult. Dabur's FMCG business contributes over 70 per cent of Dabur India's current revenues. Within the FMCG business, Dabur India focusses on three key product groups family products, healthcare and FMCG exports. The family products portfolio boasts of quite a few market leading brands Dabur Amla and Vatika hair oils, Vatika shampoo, Dabur Honey, and Dabur Lal Dant Manjan. Dabur India also has well-recognised brand names and an established distribution set-up in the healthcare business with brands such as Dabur Chyawanprash, Hajmola, Pudin Hara and Dabur Lal Tail. Given Dabur's acknowledged strengths in ayurvedic healthcare, the scope for expansion in each of these product baskets is considerable. Though in the recent years, the growth from Dabur's FMCG portfolio has been sedate, due to sluggish rural demand and intense competition from a host of regional brands and counterfeit products. However Dabur's operating profit margins have been more or less constant over this period. However, the FMCG business is Dabur's cash cow contributing over 70 per cent of Dabur India's current revenues. The business has consistently generated high cash flows and called for minimal incremental investments. The overall growth in hair oil industry has been 7% whereas growth in branded coconut oil has been 10%.Vatika hair oil has a market share of 19% and Dabur Chyawanprash has a 61% market share and is the market leader. Both of these are therefore Daburs cash cow.

THE NEW DABUR ENTITY The New Dabur Identity modernizes the 100-year old equity of the Dabur brand by subtly transforming the tree. While it retains the essence of the banyan tree, it now projects a contemporary image, in consonance with today's lifestyle. The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a symbol of fertility. The new Dabur identity retains these enduring and valuable attributes, while it adds a fresh, healthy and holistic dimension to the tree. The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's heritage, commitment and stability through the form and colours of the tree; its branches and leaves. It also conveys that the brand stands for wellness across age groups.Taken as a whole, the tree appears well rooted, implying stability; and its abundant canopy implies that it can provide amply for those who seek its produce and shade. Further, the entire image, being well-proportioned, evokes a harmonious, well-balanced, wholesome and holistic brand. In India, the tree is a symbol of life. It is a giver of fuel, food and protection. It is a heaven for creatures it generously harbours in its foliage, as well as in the shade of its canopy. The tree is held auspicious as it spreads through the three spheres with its roots meshing through the earth, its trunk rising through the terrestrial world and its branches reaching into the heavens. This symbolism also occurs in cultures across the world. Keeping these vital associations in mind, the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy as well as its future aspirations. It now takes on a younger avatar, in its form and colours, and strikes a rapport with the consumer as a proactive

brand with a commitment to wellness and to nurturing an active lifestyle across age groups. Thus, through its form and colours, the new logo identity combines freshness and stability. It expresses a brand that is positive, proactive and progressive. The burst of leaves and their colours symbolize growth, rejuvenation and inner strength. The form and colour of the trunk convey growth, youthfulness and stability. Thus, the logo identity lock up presents Dabur as a stable yet evolving, contemporary, vibrant and active brand cherishing nature as the source of all its endeavours along with an abiding commitment to the wellness of consumers across age groups.

FUTURE FOR DABUR

Tapping the world markets: Dabur India, under its new brand architecture, has five power brands under its portfolio with distinct offerings Vatika, a herbal beauty brand with products like Vatika Shampoo, Hair oil and Fairness Face pack; Dabur, the natural healthcare brand with products like Chyawanprash and Pudin Hara; Hajmola, the tasty digestive brand with Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit beverages and has products like Real Fruit juices, Lemoneez; and the recently launched Anmol which is a cross category value-for-money brand. Dabur has decided to take two of its five power brands Dabur and Vatika global through its Dubai-based arm Dabur India. And the Big B and Rani Mukherjee will help the company get a toehold in the worlds herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore FMCG major has also decided to give a new impetus to its international food supplement brand, Nature4u, by now launching it in the burgeoning Gulf market. It is currently being sold only in UK and EU. We have drawn an aggressive plan to launch Dabur and Vatika globally, starting from the Middle East , GCC and SAARC countries. We expect our market share to double within two years in the 10 countries we will focus on initially, said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are UAE, Saudi Arabia , Kuwait , Bahrain , Oman, Bangladesh, Pakistan, Egypt and Nigeria. To develop Dabur International as its major overseas hub to service all markets except Russia , the company is setting up a new plant which is expected to be ready in a year. Dabur International already has a plant in Jabel Ali to both package products sourced from India and produce some local variants. Dabur India has been selling its product in Dubai and GCC countries since 1992 through a franchise Redrock Limited. The company had acquired this franchise last year at investments of about USD five million. Growing market share: While there is no doubt that Dabur now has a presence in several product categories ranging from hair care to oral care to

home care to health supplements to juices and even soaps, it is also true that in some of these segments its market share is very low and trails the market leader by a huge margin. For instance, Dabur only has a 6% market share in shampoos against HLLs 53%, and a 12% share in the oral care segment against Colgates 46%. Company officials believe that low market share means that there are substantial growth opportunities even if these categories do not grow. Our market shares are low in some segments. This gives us opportunity to penetrate these categories, says Mr Narang. Drivers of growth: For the future, Dabur has identified foods, home care products, skin care and OTC health care products as its growth engines. The company plans to ramp up its home care business and in the food category it is looking at expanding its Hommade range of cooking pastes and purees. In the skin care segment, the company launched the Dabur Anmol cold cream last year and its Vatika honey and saffron soap is currently under test launch. Expansion in south India: Dabur is looking at expanding its business in south India, which currently accounts for around 15% of its total sales.

GROWTH STRATEGY

RESEARCH METHODOLOGY
As the purpose of the project report is to analyse the Marketing Strategy of Dabur Vatika hair oil.

Data collection
The data was collected both with the help of primary as well as secondary sources. For primary data, I proceeded with the drafting of the questionnaire was structured as undisguised, & Personal -interview retailers and consumers it was handed personally by me to the respondents to be analysed. The questionnaire method was useda) b) c) d) To get first and relevant and unbiased information Questionnaire provides versatility and solutions can be obtained by just Questioning is usually faster and cheaper. Moreover, there is more control over data gathering activities.

asking the questions.

Secondary data was also collected personally by me, which the company has furnished for the general public. The secondary data was gathered with the help of various magazines, newspapers, journals, brochures and also through the internet. For secondary sources no field work was employed. In order to amplify the empirical findings from primary and secondary sources, a survey was conducted both of consumers and retailers Distributor & in order to gauge the market opinion. The questionnaire was of multiple choice and the pattern of questions was as simple as possible. With every question, multiple choices were given and respondents were asked to select one of them. The questionnaire technique was structured and not disguised as the questions followed one pattern and reason behind the questionnaire was stated properly. All the questions were directly related to the subject.

Sample size
For Vatika hair oil. Sample size for retailers were 25 and for consumers 25 in number and U niverse comprises of JAIPUR. AREA OF SURVEY: Jaipur Mansarover Durgapura Malviya Nagar Vaishali Nagar Partap Nagar No other field work was employed to gather the information. The questionnaires were distributed to the respondents and the data was collected through primary and secondary sources.

Research technique
The statistical technique such a Pi-chart and percentages were used in analyzing and interpreting the data.

RETAIL SURVEY RESULTS DABUR VATIKA

1.

Which brands of Hair Oil do you stock?

Ma rico H LL K K rpin eo a D bur Va a a tik

90 80 70 60 50 40 30 20 10 0 1s Qtr 2ndQtr 3rdQtr 4thQtr t

Es at Wes t N orth

2.Out of these which are the most preferred?

50 40 30 20 10 0 marico hll karrpikeo karpin vatika PERCENTAGE

3. According to you what are the reasons for customers preferences?

50 40 30 20 10 0 brand loyalty price availability no reason PERCENTAGE

4. What is the profile of your typical consumer?

50 40 30 20 10 0 high income middle income low income PERCENTAGE

5. What schemes are you offered by the companies?

40 35 30 25 20 15 10 5 0 price discount buy one get one others

PERCENTAGE

6. What schemes does a consumer prefer most?

60 50 40 30 20 10 0 price discount buy one get one others PERCENTAGE

7. According to you, does in-store advertising have an affect on the consumers preference?

60 50 40 30 20 10 0 yes no PERCENTAGE

8.Does a change in price affect their preference

RECOMMENDATIONS
1. Focus on growing core brands across categories. 2. Reaching out to new geographies, within and outside India. 3. Improve operational efficiencies by leveraging technology. 4. 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. 5. Provide consumers with innovative products within easy reach. 6. Vatika hair care centre: On the lines of Maricos 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. 7. More initiatives like Dabur ki Deewar to increase brand visibility. It is an initiative to occupy shelf space.

CONCLUSIONS
The Vatika Hair Oil Industry is yet to capture the Hair Oil market in full swing. Packed Vatika 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. This could be well attributed to dabur successful ATA (Availability, Taste and Affordability) marketing module, the attributes most rated by the consumers. publicity has hampered the growth progress of advertising is needed to promote that of Vatika by Keo karpin, Vatika hair oil has no major competition except an Australian Product Tobasco. As a new product so people are not able to digest it yet Dabur is getting 8 crores from Vatika hair oil in which Lemoneez 1 Crore & others 3 Crores . As the strategies of the companies keeps on changing, be it in Hair Oil 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 vatika hair oil is a new product introduced by Dabur and as Dabur is getting excise benefit from the Government so Dabur should pass slight Price benefit to the target market so that target market should use the vatika hair oil and adopt it in making daily food thereby increasing the market share of vatika hair oil. accounts for 4 crores, Lack of the brand so aggressive

vatika hair oil brand .The brands such as

REFERENCES

Books:
Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller

Websites:
www.google.com (search engine) www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com

QUESTIONNAIRE
Dear Respondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for the Hair Oil category that we have chosen to study. Any information provided by you will purely and strictly be used for Academic Purpose only.

Q. 1: Which brands of Hair Oil do you stock? [A] Marico [B] HLL [C] Keo Karpin [D] Dabur Vatika

Q.2: Out of these which are the most preferred? [A] Marico [B] HLL [C] Keo Karpin [D] Dabur Vatika Q.3. According to you what are the reasons for customers preferences? [A] Brand loyalty [B] Price [C] Availability [D] No reason

Q.4: What is the profile of your typical consumer? [A] High income [B] Middle income [C] Low income

Q.5: What schemes are you offered by the companies? [A] Price discounts [B] Buy one get one free [C] Others Q.6: What schemes does a consumer prefer most? [A] Price discounts [B] Buy one get one free [C] Others Q.7: According to you, does in-store advertising have an effect on the consumers preference? [A] Yes [B] No

Q.8: Does a change in price affect their preferences? [A] Yes [B] No

QUESTIONNAIRE
NAME: GENDER: [A] Male [B] Female

Q1) Which brand of hair oil are you aware of? [A]Marico [B]Keo Karpin [C]HLL [D]Dabur Vatika Q2) Which Brand of Hair oil do you use? [A]Marico [B]Keo Karpin [C]HLL [D]Dabur Vatika Q3) What are the primary reasons for which you use this particular brand? [A] Non sticky [B] Brand Loyalty [C] Fragrance [D] Price Q4) How did you get to know about this Brand? [A] TV [B] Internet [C] Word of Mouth [D] Print

Q5) How often do you buy? [A] Once in 15 days [B] Once in a month [C] Once in two month Q6) How do you find Dabur Vatika Hair Oil in compare to other Hair Oils? [A] Normal [B] Medium [C] High Q7) Do you think that Dabur is true to their word for quality? [A] Yes always [B] Sometime [C] No Q8) Which Brand do you think is Dabur Vatikas Hair Oil Competitor? [A] Marico [B] Keo Karpin [C] HLL Q9) Your preference for the Dabur Vatika Hair Oil is due to? [A] Quality [B] Pricing [C] Other

100 50 0 1s t Q tr BET S Wes t North