Dabur For the Rural Consumer

Group MembersAmit Pal

Aveek BanerjeeManas Roy

Tirthankar Banerjee

Rural India

• According to Census of India: – 6,38,000 villages in India– Of these 0.5 % has population above 10,000– 2% has population between 5,000 & 10,000– 18% has population less than 200

• Accounts for 74.3% of total population = 627 million

• Green Revolution & Price Policy has increased the incomes of farmers in India

• Increased incomes have improved literacy levels, poverty & rural housing

FMCG & Rural• FMCG definition: includes Class II & III towns also

– 1,368 class II towns – population 20,000 to 50,000– 1,560 class III towns – population 10,000 to 19,999

• Enhanced Government support: Increased Disposable Incomes & Increased demand for FMCG products

• Present size US$ 17.37 billion & expected to be US$ 21 billion by 2012

• FMCG Sales volumes in rural have been growing at 15% for the last three years

• Rural market in east account for 50% of sales while in Punjab it accounts for 40% of sales

Industry Overview• India's FMCG market can be divided into two segments - URBAN &

RURAL– Urban segment: high penetration levels and high spending propensity– Rural segment is largely agrarian - directly or indirectly dependent on

agriculture as a means of livelihood with relatively lower levels of penetration and a large unorganized sector

• Enhanced government support to Rural India has resulted in increased disposable income & consequently increased demand for FMCG products

Dabur Overview• Established in 1884 in Calcutta by Dr S.K.Burman

• Dabur India Limited is one of the largest FMCG companies in India & world’s largest Ayurvedic and Natural Healthcare Company

• FMCG Portfolio of Dabur includes:– “DABUR” - master brand for natural healthcare products– “VATIKA” - for premium personal care products– “ANMOL” - for affordable personal care products– “HAJMOLA” - for digestives– “REAL” - for fruit-based drinks

• Wide Distribution Network covering 2.8 million retailers across India

Dabur Hair Care Range

• Dabur Amla is the flagship brand of the company & is valued a Rs 450 crore

• Rural market accounts for 55% Dabur’s Hair Oil portfolio & growing faster than the urban market

Products available in the Rural Market:– Amla Hair Oil

₋ 3.5 ml(Re.1)₋ 8 ml (Rs.2)₋ 50ml (Rs.11)₋ 100 ml(Rs.20)₋ 200 ml(Rs.38)

– Amla Lite Hair Oil– Vatika Hair Oil– Anmol Sarson Amla

Promotion Strategy• Dabur advertised the Amla brand heavily in Rural India &

endorsed it through Rani Mukherjee

• Dabur also conducted Various Beauty contests in Rural Markets

• Dabur also advertised in Rural markets using:– TV Commercial – Radio – News Paper – POP display – Wall panting – Contest in Melas or Haats – Video vans

• Dabur also went for tie-up with IOC retail chain

Dabur Amla ‘Banke Dikhao Rani’

• Rural Beauty contest for young girls

• Organized on the 70th year of Dabur Amla Brand

• Held across UP, Bihar, MP covering 2000 villages

• Judged by local elders, village Panchayat and women opinion leaders of each village

• Contest held to educate rural mass about benefits of Dabur Amla vis-à-vis mustard oil

• Establish the association between Dabur Amla and beauty

Dabur & IOC Tie-Up

• Dabur & IOC tie-up for rural marketing through IOC Kisan Seva Kendra’s

• Tie-up provides addition retail presence to Dabur in rural market

Retail Activation

• Expanded retail base in the rural market to enhance penetration levels of the brand

• Wholesaler enrollment in activation– Special offers on bulk purchase & chance to win– Brand Visibility: Contest announcement & merchandise– Ensure adequate stock lifting from company

• Activating Retailers– Buzz Creation: mobile inflates, fliers & mike announcements– Intercepting Retailers: Brand and special offer information– Triggering excitement: Assured Gift & chance to win Big prize– Encouraging bulk product purchase

Dabur ASTRA

• ASTRA (Advanced Sales Training For Retail Ascendance)

• ASTRA is a dedicated audio-visual sales training initiative launched to enhance the quality of field execution

• Channel partners of Dabur India are taught marketing through role-plays staged by professional actors

• Training consultancy module has been created in five vernacular Indian languages - Bengali, Tamil, Telugu, Malayalam and Kannada

• Aimed at managing channel complexities with respect to sales and distribution

THANK YOU