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A PROJECT REPORT ON

MARKETING STRATEGY OF DABUR

CHYAWANPRASH

Submitted in the fulfillment of the requirement ofMaster of

Business Economics course of Guru Nanak Dev University.

By

KULBHOOSHAN SINGH

Roll No 883152, Batch- 2008-2010

Under the guidance of

Mr. ASHOK ASTHANA

Lecturer- New Delhi Institute of Management

New Delhi Institute of Management

NEW DELHI -110060


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ACKNOWLEDGEMENTS

I take this Opportunity to express my heartiest gratitude to New Delhi Institute of

Management for permitting me to undertake this research and supporting me during this

research and otherwise also.

I would like to thanks Mr. Ashok Asthana who not only played the role of my Philosopher

and Guide but also mentored me at every stage of my project work. I would like to extend

my heartily thanks to entire Faculty members of MBE department for their constant

cooperation and support to take decision during the course of my research. I would also like

to thank my parents for their support and blessings without which this project could not

have been completed. Indeed I shall remain ever grateful to them

I am also thankful to college library and computer laboratory management staffs for their

constant support.

The experience I gained during this research project is of immense importance to me

academically and more so professionally.

KULBHOOSHAN SINGH


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DECLARATION

I, hereby state that this project report submitted by me in fulfillment of the requirements of

the MBE (Masters ofBusiness Economics) is an original research work carried out by me

under the guidance and supervision my faculty guide , Mr. Ashok Asthana. This work or

any part of it has not been previously submitted for a degree MBE.

KULBHOOSHAN SINGH

Place:

Date:


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CERTIFICATE

I hereby certify that this dissertation entitled MARKETING STRATEGY ON DABURCHYAWANPRASH is based on an original project study conducted by Mr.

KULBHOOSHAN SINGH under my guidance. This has not formed basis for the award of

any other Degree/Diploma of the institution or any other University.

Guide

Mr. Ashok Asthana

Place: New Delhi

Date:


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EXECUTIVE SUMMARY

This report aims at analyzing and reporting about the marketing strategies of Dabur IndiaLtd (DIL) for its brands Dabur Chyawanprash.. 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 then DABUR has invested heavily in

product development, clinical studies and Consumer awareness. The product is essentially a

health supplement.

The prime aim of this report is not to analyze the overall marketing mix or the marketing

strategy of Dabur India Ltd, but this can be regarded as an attempt to analyse the marketing

mix of Dabur Chyawanprash. The report also enlists various recommendations based on

BCG Growth Share Matrix analysis, Ansoffs Product Matrix Expansion Grid, SWOT

Analysis etc.

For the purpose of study this topic was selected as today the health concern is the most

important concern and this may affect the other related things also. This analysis has been

done on the basis of the information gathered from the questionnaire company website and

other online resources and books and articles. For the purpose of the data collection the

geographical area of DELHI was chosen and the consumer and retailer base were selected

on the basis of convenience which is a part of non probability sampling, with the help of

questionnaire, observation and direct contact the data was collected and after collection it

was properly analyzed and after analysis proper statistical tools were applied to generalized

the result. This study is fruitful for both the company and the researcher as it can formulate

a basis of decision making and via this project important knowledge base has been created

and also this would help in mending the gap between theoretical and practical knowledge.


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TABLE OF CONTENT

Chapter -1 Introduction 8

1.1 FMCG Sector Overview

1.2 Company Overview

1.3 Important Dates

1.4 Product Line of Dabur

1.5 Objective of the study

1.6 Scope of the Study

1.7 Limitations of the study

Chapter-2 Literature Reviewed & Theoretical Framework 18

2.1Literature Reviewed2.2 STP Analysis of Dabur Chyawanprash

2.3 Marketing Mix of Dabur Chyawanprash

2.4 Competitor Analysis of Dabur Chyawanprash

Chapter 3 Research Methodology 30

3.1 Introduction of Concept

3.2 Sampling Design

3.3 Data Collection

Chapter 4 Application of Statistical tools 33

4.1 Financial Report

4.2 Correlation analysis application

Chapter 5 Findings, Conclusions & Recommendations 38

5.1 Findings

5.2 Conclusions

5.3 Recommendations

5.4 SWOT Analysis

Annexure 64

Bibliography 70

List of tables and charts 72


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CHAPTER - 1

INTRODUCTION


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1.1 OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a total market

size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a

well-established distribution network, intense competition between the organised and

unorganised segments and low operational cost. Availability of key raw materials, cheaper

labour costs and presence across the entire value chain gives India a competitive

advantage.

The FMCG market in INDIA is set to treble from US$ 11.6 billion in 2006 to US$ 33.4

billion in 2015. Penetration level as well as per capita consumption in most product

categories like jams, toothpaste, skin care, wash etc in India is low indicating the untapped

market potential. Increasing Indian population, particularly the middle class and the rural

segments, presents an opportunity to makers of branded products to convert consumers to

branded products. Growth is also likely to come from consumer 'upgrading' in the matured

product categories. With 200 million people expected to shift to processed and packaged

food by 2010, India needs around US$ 28 billion of investment in the food-processing

industry.

India is one of the largest emerging markets, with a population of over one billion. India is

one of the largest economies in the world in terms of purchasing power and has a strong

middle class base of 300 million. Around 70 per cent of the total households in India (188

million) reside in the rural areas. The total number of rural households is expected to rise

from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential

market in the world. The annual size of the rural FMCG market was estimated at around

US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level,

the market potential is expected to expand further.


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Rural and urban potential

Rural-urban profile

Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3

Source: Statistical Outline of India (2008-09), NCAER

An average Indian spends around 40 per cent of his income on grocery and 8 per cent on

personal care products. The large share of fast moving consumer goods (FMCG) in total

individual spending along with the large population base is another factor that makes India

one of the largest FMCG markets.


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1.2 COMPANY OVERVIEW

Over its 120 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 harm.

The trust levels that this brand enjoys are phenomenally high. While Ries 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

overRs 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. Theres a great sense of responsibility for investors funds onview. 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 over


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1.3 IMPORTANT DATES

1884 - Birth of Dabur

1896 - Setting up a manufacturing plant

1900 - Ayurvedic medicines

1919 - Establishment of research laboratories

1920 - Expands further

1936 - Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 - Shift to Delhi

1979 - Sahibabad factory / DaburResearch Foundation

1986 - Public Limited Company

1992 - Joint venture with Agrolimen of Spain

1993 - Cancer treatment

1994 - Public issues

1995 - Joint Ventures

1996 - 3 separate divisions

1997 - Foods Division / Project STARS

1998 - Professionals to manage the Company

2000 - Turnover ofRs.1, 000 crores

2003 - Dabur demerges Pharma Business

2005 - Dabur aquiresB

alsara

2005 - Dabur announces Bonus after 12 years

2006 - Dabur crosses $2 Bin market Cap, adopts US GAAP

2006 - Approves FCCB/GDR/ADRup to $200million

2007 - Celebrating 10 years ofReal

2007 - Foray into organised retail


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1.4 PRODUCT LINE

Foods

y Realy Real Activy Homemadey Lemoneezy Capsico

Health Care

Baby Care

y Dabur Lal Taily DaburBaby Olive Oily Dabur Janma Ghuntiy Health Supplementsy Dabur Chyawanprashy Dabur Glucose D

Digestives

y Hajmola Yumsticky Hajmola Mast Masalay Anardanay Hajmolay Hajmola Candyy Pudin Hara (Liquid and Pearls)


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Natural Cures

y Shilajit Goldy Nature Carey Sat Isabgoly Ring Ring,Shankha Pushpi

Personal Care

Hair Care Oil

y Amla Hair Oily Vatika Hair Oily Anmol Sarson Amlay Hair Care Shampooy Anmol Silky Black Shampooy Vatika Henna Conditioning Shampooy

Vatika Antidandruff Shampooy Anmol Natural Shine Shampoo

Oral Care

y DaburRed Toothpastey Babool Toothpastey Dabur Lal Dant Manjany DaburBinaca Toothbrush


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Skin Care

y Gulabariy Vatika Fairness Face Pack

Ayurvedic Specialities

y Ayurveday Ayurveda Vikasy Ayuveda


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1.5 OBJECTIVE OF THE STUDY

Following are the major objectives of study:-

1. To conduct a in depth research of STP and SWOT Analysis for Dabur by evaluating theconsumer buying behaviour.

2. To evaluate the brand performance by survey of target audience anddistributors/wholesalers.

3. To study the problems faced by Dabur.4. To understand the demand pattern of Dabur Chyawanprash products in the market.5. To understand the image of the products in the eyes of the consumers.


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1.6 SCOPE OF THE STUDY

The scope of this research study is very wide as it covers a wider horizon. It covers the

selected sample which in a way represents common population also it covers the FMCG

giant DABUR. Though this report cant be generalized to every geographical region but still

it can formulate an important basis of decisions .It takes into account the general perception

of people who are consumers and at the same time it tries to cover all those area which may

prove to be useful for the company also it provides a glimpse of the characteristics on which

a company should concentrate in order to increase its market share. Since this work

revolves around the marketing strategies of Chyawanprash so it ultimately covers both the

marketing part and at the same time it also concentrates upon how the product can prove to

be beneficial for the consumer.


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1.7 LIMITATIONS OF THE STUDY

Following may be regarded as important limitations of the project report:

Lack of Universal Application: - Since the study had been conducted only in aselected region hence the applicability of the study in different region and consumer

products are restricted.

Probability Based Study: - Study is being done with the aid of Conveniencesampling. Hence the entire customers had not been considered for their feedback

and the inference drawn on the basis of selected sampling.

Lack of Time It can be considered as one of the important limitation Busy schedule of the Respondents: - Walk in respondents were busy with their

schedule and hesitate to cooperate with the researcher and because of their rushing

to home or office, they had completed the questionnaire quickly which may yield

some inherent errors.


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CHAPTER -2

LITERATURE REVIEWED

&

THEORTICAL FRAMEWORK


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2.1 LITERATURE REVIEWED

MATHUR P. & GUPTA S.K: Preventive Effect of Chyawanprash Against Steroid

Induced Cataract; International Journal of Human Genetics; January 1998: Page

No; 134-137

The anti cataract potential of Chyawanprash, a popular herbal formulation of India was

investigated in hydrocortisone-induced cataract in the developing chick embryo. Aqueous

extracts of Chyawanprash (3% and 10%) were applied at 3, 10 and 20 h after

hydrocortisone administration. The incidence of advanced opacity (stage 4 and 5) was 33%

after treatment with 3% extract, and 16.5% after treatment with 10% extract, compared with

96.6% in the control group.

Ojha, J: Chyawanprash is a Classical Ayurvedic Formulation: Journal of Vedic to

Genomic Era: Year- 2003: Page No. 282-284

In the changing healthcare scenario, the role of ancient healthcare systems like Ayurveda is

an emerging reality. Chyawanprash is a classical Ayurvedic formulation. It imbibes all the

philosophical and scientific virtues of Ayurveda. Chyawanprash differs from rest of other

products on two accounts. Firstly, it underwent as a formulation, a rigorous scientificscrutiny employing widely acceptable tools of investigation. Secondly, it is backed by a

phenomenal business success and popularity. Dabur has contributed a lot on both these

accounts. Thus, Chyawanprash stands before us, as a convergence of philosophy, science

and business with a tremendous application value. This book is designed to tell all about

Chyawanprash excepting its well-known business dimensions.

RASTOGI S. & BALA S: The Dynamic Effect of Dabur Chyawanprash Journal of

Indian Pharmaceutical Sciences: Year- 2004: Page No.; 53-57

This article is dedicated to medicinal use of Chyawanprash. It is a well known ayurvedic

formulation claimed to be an immunomodulator and is useful in the treatment of chronic

conditions such as pulmonary tuberculosis, asthma and cough. It is also widely used as a

food supplement for strength and energy. It maintains youthfulness by renewing tissues and


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counterattacking degeneration. It has been reported to contain proteins which play an

important role in fundamental processes of tissue formation, regeneration and function.

BANSAL & NITIN: Traditional medicinal formulation Chyawanprash - A review:

Indian Journal of Traditional knowledge: Vol. 5(4) Oct 2006: Page No; 484 488.

This article highlights the benefits of Chyawanprash. Chyawanprash is a household remedy

in northern India, popular for its nutritional value. In Ayurveda, Chyawanprash is classified

under the category ofRasayana, which aims at maintaining physique, vigor and vitality,

while delaying the ageing process. It is believed that Chyawanprash helps not only in

maintaining homeostasis but also increases resistance of the body. Chyawanprash is

prepared by incorporating around 50 herbs including Amla, the richest source of vitamin C.Herbs used in the preparation of formulation are boiled in water, then dried extract is

combined with honey followed by addition of aromatic (like cardamom, cinnamon, and

clove) herb powders. The finished product, which has consistency of a fruit jam, is sour and

spicy in taste.

Yadav, J.S., Thakur S. : Chyawanprash: A Genoprotective agent for bidi smokers

International Journal of Human Genetics: year 2003: Page No. 33-38.

Genoprotective efficacy ofChyawanprash (Dabur) was investigated against tobacco smoke

on the somatic chromosomes of 25 male bidi smokers.25 individuals matched with regard to

age, sex and socialstatus constituted the control. 20 gms ofChyawanprash (Cp) was fed to

bidi smokers for 2 months, twice a day. Bidi smokers were compared with Cp-fed bidi

smokers. Mitotic index (MI), chromosomal aberrations (CA), sister chromatid exchanges

(SCE) and satellite associations (SA) were analyzed. In Cp-fed bidi smokers as compared

with bidi smokers all the parameters showed a significant decrease (P


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2.2 STP ANALYSIS OF DABUR CHYAWANPRASH

STP analysis stands for segmentation, targeting and positioning analysis

SEGMENTATION

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the

category of health supplements. The segments that it considers are growing kids,

competitive youth, ever busy housewives and the aged.

For the growing kids: In today's competitive environment, the children are under high

pressure to excel.

For the competitive youth: Modern life keeps the youth busy and demands them to be

active and efficient.

For ever-busy housewives: The 'homemaker' needs to be fit in order to shoulder all

responsibilities.

For the aged: Old age weakens a person physically and mentally.

After segmenting the population into these categories it aims to keep them fit and healthy.

TARGETING

Traditionally, Chyawanprash was supposed to be a health supplement for the aged and kids.

Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids. The

company is trying to achieve this through its promotion activities by making Amitabh

Bacchan, Vivek Oberoi and MS Dhoni as brand ambassador. Amitabh has been projected

as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults

in todays demanding lifestyle.

Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is

not for him, meets his moment of truth when outperformed by a young Chyawanprash user,

thus reaching out to kids.

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,


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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 symbolizes the activity and alertness.

The bottle shape also has been made more modern. Chyawanprash also has a new logo

which also reinforces the new targeting.

POSITIONING

"Andar se strong: Dabur Chyawanprash has the tag line " Zaroorat Hai "By using a

natural language instead of scientific language it is able to connect with the consumers and

is able to achieve a better positioning in the minds of the Indian health conscious consumer.

A category like Chyawanprash for instance needs to understand that in employing the

category language it loses any chance of expressing its own benefit distinctively.

Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune

system, relieving stress, improving stamina, fighting aging through anti-oxidant property,

improving lung function, fighting respiratory infections & building resistance to disease.

The brand conveys this health conscious holistic view of the product.

Brand Trust: Over 100 years of Daburs experience in Ayurveda ensures selection,

processing and quality control of right herbs along with scientific and clinical studies

makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a

trusted brand and therefore do not need to think twice before making a purchasing decision.


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2.3 MARKETING MIX OF DABUR CHYAWANPRASH

Dabur Chyawanprash is the market leader in the Chyawanprash segment and has achieved

this with its innovative product offering, pricing strategy, easy availability and promotion

campaigns. In the marketing mix of Dabur, the 4 Ps of marketing mix is discussed with

respect to Dabur Chyawanprash. The mix shall be analyzed as followed:

Product Price Place Promotion

Product Price Promotion Place

Product Variety

Quality

Design

Features

Brand Names

Services

List Price

Discount

Financing

Schemes

Credit Terms

Advertising &

Promotion

Public Relations

Sponsorships

Internet Marketing

Channels

Location

Inventory


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PRODUCT:

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 hasinvested heavily in product development, clinical studies and consumer awareness. The

product is essentially a health supplement.

Known as the elixir of life, Chyawanprash has proven benefits in maintaining smooth

body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-

oxidant and immuno-stimulant.

Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving

stamina, fighting aging through anti-oxidant property, improving lung function, fighting

respiratory infections & building resistance to disease. It is these properties that make Dabur

Chyawanprash a preferred choice for its users.

Ingredients of Dabur Chyawanprash

y VishwastAmla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several

other herbs and herbal extracts.

y SpecialVishwast fortified with additional health beneficial herbs like

Keshar, Akarkara etc.

PACKAGING

The figure above shows the evolution of the packaging of Dabur Chyawanprash.


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Dabur continuously innovate the package and branding of its Chayawanprash. It launched

Dabur Chyawanprash first in 1949 in a tin pack and it was the first branded Chyawanprash

in India. Later Dabur came out with its new packet of Chyawanprash with Amitabh

Bachchan as their brand ambassador. It also received Brand Relaunch of the Year award

from IMA. The brand has changed the packaging. The new packaging with lot of red color

symbolizes the activity and alertness. The bottle shape also has been made more modern.

Chyawanprash also has a new logo which also reinforces the new targeting.

Available in

Dabur Chyawanprash is available in three sizes to cater to the needs of different types of

people.1. One kilogram pack

2. 500 gram pack

3. 250 gram pack

PRICE

The pricing of Dabur Chyawanprash is very competitive. Dabur Chyawanprash uses second

degree price discrimination i.e. more the quantity, lower the price.

1kg Rs.200.00

500gm Rs.110.00

250gms Rs. 65.00


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PRICE/QUALITY MATRIX

Price

Quality

High Middle Low

High

Luxury

Segment

Ideal For Penetration

DABUR

CHYAWANPRASH

Premiere

Offering

Middle

Overpriced Average Real

Bargain

Low

Make The

Sale and Run

Unhappy Customers Cheap

Goods

PLACE:

Dabur has a very wide distribution of its products through 1.6 million retail outlets and 50 C

& F agents all over India who distribute products to the retailers. A distribution of C & F

agents and manufacturing locations is given below.


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

Distribution Network

y Central, North & South Americay Australiay Asiay Middle Easty North & South Africay East & West Europe

PROMOTION

The main promotional activities of Dabur Chyawanprash are directed toward advertising

and it has negligible sales promotional activities.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. Dabur Chyawanprash is advertised

on print media as well as on television.


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The company has launched three ads, one each with Amitabh and Vivek,and Dhoni in

national electronic media followed by a series of print media campaign directed towards

creating awareness to educate people about the holistic benefits of Chyawanprash. The ads

have been created by McCann Ericsson and the company would be spending close to Rs 10

crore in promotional campaign this year. The ads would also be translated in Bengali. These

advertisements are supposed to target the old and the younger generation respectively.

Advertisement showing Vivek Oberoi


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2.4 COMPETITER ANALYSIS

The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu and

Himani, which together with Dabur have about 85% of India's domestic market.

Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of

FMCG. It was established in 1884, and had grown to a business level in 2006 of about 650

million dollars per year, though only a fraction of that is involved with Ayurvedic

medicine. Dabur Chyawanprash has a market share of 61%.


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CHAPTER z 3

RESEARCH METHODOLOGY


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3.1 INTRODUCTION OF CONCEPT

Research methodology is a way to systematically solve the research problem involving a

study of various steps that are generally adopted by a researcher in study his research

problem.

This includes:

Defending the research problem

Sampling design

Research design

Method of data collectionAnalysis & interpretation

DEFINING THE RESEARCH PROBLEM:

Problem under the study was to analyze the marketing strategies of Dabur chyawanprash

and to suggest the company on the basis of same

3.2 SAMPLING DESIGN:

Sampling design i.e. non probability sampling was adopted as a definite plan for obtaining asample from the population. The sampling technique was a convenience sampling. The

convenience sample which were considered for the response includes the following

1) Working people (including men & women) & housewife

2) College students

3) School students

4) Senior citizens

5) Retailer $ Wholesaler

Sample size:

Sample size for customers were 100 in number and the universe comprised of all the

consumers within the geographical region of Delhi. Sample size for retailers were 100 in

number and the universe comprised of all the consumers within the geographical region or

Delhi


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3.3 DATA COLLECTION

As the purpose of the project report is to analyze the marketing strategies of DABUR

Chyawanprash hence to analyze the selected topic properly data was collected both with the

help of primary as well as secondary sources.

Data collection method:

1. Primary data: It has been collected with the help of a self administered Questionnaire.

2. Secondary data: It has been collected with the help of books, research papers,

magazines, news papers, journals, internet, etc.

Questionnaire design:

As the questionnaire is self administrated one, the survey will be simple and user friendly.

Words used in questionnaire will be readily understandable to all respondent. Also technical

jargons will be avoided to ensure that there is no confusion for respondents.

In order to amplify the empirical findings from primary and secondary sources, a survey

was conducted both of consumers and retailers in order to gauge the market opinion.

The questionnaire consists of questions of different types 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.


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CHAPTER- 4

APPLICATION

OF STATISTICAL TOOLS


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4.1 FINANCIAL REPORT

Rs (Crore)

2008-2009 2007-2008 2006-2007 2004-2006

Turnover (including other income) 2439.23 1189.02 1159.02 1280.22

Profit before tax 425.00 113.44 113.44 165.02

Add: Provisions of earlier yr written back 0.068 0.20 0.20 -

165.02 113.44 113.44 165.02

Less: provision for taxation current 47.48 40.57 8.75 13.00

: provision for taxation Deferred 2.55 0.75 3.49 4.00

: provision for taxation for earlier yr 0.72 1.54 00.26 0.05

PROFIT AFTER TAX 372.84 315.92 101.14 147.97

Add: Balance in profit & loss account b/f

From the previous yr 223.23 229.15 66.12 81.12

- Transferred from debenture -- _ 2.50 --- Transferred from investment

Allowance Reserve

_ _ -

0.83

- Transferred from InvestmentDeposit Revenue

_ _ - 1.82

Profit Available for Application 696.07 545.07 169.76 231.74


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APPROPRIATION TO:

General Revenue 90.00 70-00 22.50 25.15

Capital Revenue 0.01 0.40 1.56 -

Interim Dividend paid 64.88 64.80 17.17 28.63

Final Dividend proposed 86.51 64.80 40.07 42.96

Corporate tax on Dividend 25.73 22.02 7.34 9.77

Balance carried over to Balance sheet 428.94 323.05 81.12 125.23

TOTAL 696.07 545.07 169.76 231.74

The statistical tool which has been applied to this project study is correlation analysis


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4.2 CORRELATION ANALYSIS APPLICATION

Application of Correlation analysis:

Suppose X represent the turnover &Y represents Profit after Tax

NXY (X) (Y)

r = ------------------------------------- NX

2 _(X) NY

2 _Y

2

6366940.48- 5690516.846

= ----------------------------------------------------------------

41383608.4_36814434.9 1083758.04_879600.13

676423.634

= ---------------------

2137.56 * 451.83

= 676423.634

--------------- = + 0.7

965813.73

X Y X2

Y2

XY

2439.23 372.84 5949842.99 139009.66 909442.5

1189.02 315.92 1413768.56 99805.44 375635.19

1159.02 101.14 1343329.36 10229.29 117223.28

1280.22 147.97 1038963.24 21895.12 189434.15

X= 6067.49 Y=937.89 X2=10345902.1

Y2= 270939.51

XY=

1591735.12


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Since the correlation is coming out to be positive and that too = + 0.70 that means there is a

relative high degree of positive correlation between turnover and profit after tax , this shows

as the turnover increase the amount on profit after tax also increase as with increase in

turnover new market is acquired new customer are taken in and hence with respect to

increase in customer base the amount of profit will increase. This can be regarded as good

for the company


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CHAPTER z 5

FINDINGS, CONCLUSION,

RECOMMENDATIONS

&

SWOT ANALYSIS


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FINDINGS


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2. Which brand of Chyawanprash do you use?

Interpretation:- As per response of the respondents,it is ovious that Dabur brand has the

highest numbers of users (60%) and then Himani (13%) and baidyanath have

Approximately equal number of users and the Zandu has the least number of users i.e. 10%

0

10

20

30

40

50

60

Zandu Himani Baidyanath Dabur

PERCENT


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3.Wherewould you rate your brand on a scale of 1 5 (5 being highest)?

Interpretation:- As per response of the respondents, the users have very high degree of

satisfaction level with Dabur product,and then followed by Himani ,Baidyanath both of

them approx. have equal degree of satisfaction level .And Zandu s product has the least

degree of satisfaction level among users.

0

1

2

3

4

5


RATING(1-LOW 5-HIGH)


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4. What are the primary reasons for which you use this particular brand?

Interpretation:-According to available responses from the respondents, the basic reason

for buying this product is health benefits followed by second factor which causes the

consumers to buy the product is Brand Loyalty and then followed by price of the product

and the customers are least attracted by the taste of the product.

0

10

20

30

40

50

60

70

Health BrandLoyalty

Taste Price

PERCENTA


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5. How did you get to hear about this brand?

Interpretation:-As per response from the respondents, 60% respondents got information

about the product from advertisement on TV( Audio-visual media) and then followed by

print media (25%) and word of mouth(15%). In other words, TV is the most effective media

for informing about the Dabur product.

0

10

20

30

40

50

60

TV Internet Word of mouth

Print

PERCENT


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6. If your (Dabur) brand is not available you would..?

Interpretation:- According to available responses, in case of unavailability of DABUR

product in the market, before shifting to another products, the majority(40%) of customer

will wait for the product to come in the market, 25% customers will shift to another brand

for purchasing and 15% customers will buy substitute and the rest 20% will whatever will

be offered by the retailers.

0

5

10

15

20

25

30

35

40

Purchaseanotherbrand

Wait Buysubstitute

whateveroffered by

retailerPERCENTAGE


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7. Which pack size do you prefer?

Interpretation:- As per response of the respondents regarding different sizes of the

packaging, 500gm package is preferred most and then followed by 1000gm package and

250 gm package.

0

10

20

30

40

0

1 Kg 00 gm 2 0 gm PERCENTAGE


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8. On what parameters do you choose this pack size?

Interpretation:- According to available data, the majority (40%) of customers takes

buying decision of a particular size of a package on the basis of price of the product and

then followed by family size, 25% respondents, and availability of product(20%) and

storage.

0

5

10

15

20

25

30

35

40

Avalability Price Family size Storage PERCENTAGE


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9. How often do you buy?

Interpretation:- As per response of respondents, the buying frequency of majority (55%)

is two months and then followed by one month , as replied by 30% respondents and then

six months, as replied by 15 % respondents.

0

10

20

30

40

50

60

Onemonths

Twomonths

Sixmonths

PERCENTAGE


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RETAILER SURVEY RESULTS

1.Which brands of Chyawanprash do you stock?

Interpretation: As figure shows that the retailer has large stock of Dabur Chyawanprash in

comparison to same product of the other companies like Zandu, Himani, and Baidynath.

After Dabur,Himani,Zandu and others are kept in stock. In other words, it can be said that

DABUR product is demanded more.

Sales

DABUR

ZANDU

HIMANI

OTHERS


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2.Out of these which are the most preferred?

Interpretation: As per response from retailers, Dabur Chyawanprash is the most preferred

product among its product category(as 80% retailers liked it) and then followed by

Himani,(as 10% retailer liked it) and then Zandu and Baidyanath are in equal demand by

the retailers(as approx. 5% retailers liked it)

0

10

20

30

40

50

60

70

80


RATING(1-LOW 5-HIGH)


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

Interpretation: As per response from retailers, it is obvious that customers purchase

decision mostly (as 55% retailers responded to it) get affected by brand loyality and then

followed by price of the product and some customers buy the product randomly.

0

10

20

30

40

50

60

brandloyalty

price availability no reason

PERCENTAGE


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4. What is the profile of your typical consumer?

Interpretation: According to retailers, the product, Dabur Chyawanprash is preferred by

the middle income class (as more than 60% retailers responded to it) and then followed by

high income family / class (as 20% retailers responded to it) and it is preferred least by low

income class/ family(as approx. 12 % retailers responded to it).

0

10

20

30

4050

60

70

high income middle income low income

PERCENTAGE


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5. What schemes offered to you by the company?

Interpretation: As per response from the retailer, generally, retailers are offered price

discount by the companies (as approx. 55% retailers responded to it). Besides, price

discount, retailers are given others offers on different schemes (as 40% retailers responded

to it). And sometimes companies offer retailers buy one get one offer (as 5% retailers

responded to it).

6. What schemes does a consumer prefer most?

0

10

20

30

40

50

60

price discount buy one get one others

PERCENT


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Interpretation: Asper response from the retailer, consumers prefer price discount schemes

most (as observed by 70% retailers) and then followed by buy one get one offer. Besides

these, there are many schemes /offers provided by company / retailers which attract

consumers (as 10% retailers responded to it).

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

preference?

0

10

20

30

40

50

60

70

price discount buy one get one others

PERCENTAGE


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Interpretation: As per response from retailers, in- store advertising has partial effect on

consumer preference as only 30% retailers responded to it. The majority of retailers i.e.

70% accepted that in-store advertising has no effect on consumer preference.

8. Does a change in price affect their preferences?

0

10

20

30

40

50

60

70

yes no PERCENTAGE


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Interpretation: According to available responses from the retailers, among the factors

which affect consumers preference is the change in price of the product as 60% retailers

responded to it. From this it can also be inferred that there are other factors which are

responsible for change in preferences towards the product as 40% retailers explained about

factors other than change price of the product.

0

10

20

30

40

50

0

yes no

PERCENTAGE


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CONCLUSION


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6.2 CONCLUSION

On the basis of the study undertaken following conclusions were arrived at

Consumers are aware of Dabur Chyawanprash (45%) the most as compared to other brands available like Zandu (25%) because of the factors like brand Image, quality

and advertisement effort.

Dabur Chyawanprash most popular amongst the segment (60%) and it enjoys thehighest market share, the consumers have given the highest rate to the Chyawanprash

in terms of health (65%), brand loyalty (20%) etc

The audio visual media that is television advertisements of Dabur Chyawanprash hasaffected consumers (60%) the most and the next place in this category is acquired by

Print Media (25%) and so on.

According to the respondents response about 40% consumers are brand loyal andmostly consumers (50%) use to prefer 500gm. Pack.

The purchasing decision in mostly affected by price (40%) follow by family sizeconcept (25%) and availability (20%) so mostly retailers like to stock Dabur

Chyawanprash.

Dabur is a mainly popular among middle income group customer (65%) and thereason of popularity may be the price discount (55%) and other factors like brand

image brand loyalty etc.


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RECOMMENDATIONS


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6.3 RECOMMENDATIONS

Focus on growing core brands across categories. Reaching out to new geographies, within and outside India. 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

ofayurveda and herbs with modern science.

Provide consumers with innovative products within easy reach. Position Dabur Chyawanprash as not more of a medicine but as something which is

necessary for health.

More initiatives like Dabur ki Deewar toincrease brand visibility. It is an initiative to

occupy shelf space.


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SWOT ANALYSIS


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6.4 SWOT ANALYSIS OF DABUR


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STRENGTHS

y Strong presence in well defined niches(like value added Hair Oil and Ayurveda

specialities)

y Core knowledge of Ayurveda ascompetitive advantage

y Strong Brand Imagey Product Development Strengthy Strong Distribution Networky Extensive Supply Chainy IT Initiativesy R& D a key strength

WEAKNESS

y Seasonal Demand( like Chyawanprashin winter and Vatika not in winter)

y Low Penetration(Chyawanprash)y High price(Chyawanprash)y Limited differentiation

OPPORTUNITIES

y Untapped Market(Chyawanprash)y Market Developmenty Export opportunities.y Innovationy Increasing income level of the middle

class

y Creating additional consumptionpattern

THREATS

y Existing Competition( like Himani, baidyanath and Zandu for Dabur

Chyawanprash) Hair Oil)

y New Entrantsy Threat from substitutes


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ANNEXURE


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QUESTIONNAIRE

CONSUMER QUESTIONNAIRE-DABUR CHYAWANPRASH

DearRespondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us to study the

consumer perception for Chyawanprash.

Any information provided by you will strictly be used for Academic Purpose.

Personal Information :-

Name.

Age:

Location:

Income (per month):

(1) Rs. 1,000 Rs. 10,000 [ ] (2) Rs. 10,000 Rs. 30,000 [ ]

(3) Rs. 30,000 Rs. 50,000 [ ] (4) Above Rs. 50,000 [ ]

1. Which brands of Chyawanprash are you aware of?

a) Zandu [ ] c) Himani Sona Chandi [ ]b) Baidyanath [ ] d) Dabur [ ]


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2. Which brand of Chyawanprash do you use?

a) Zandu [ ] c) Himani Sona Chandi [ ]

b) Baidyanath [ ] d) Dabur [ ]

3. Wherewould you rate your brand on a scale of 1 5 (5 being highest)?

a) 1 [ ] c) 2 [ ]

B) 3 [ ] d) 4 [ ]

f) 5 [ ]

4. What are the primary reasons for which you use this particular brand?

a) Health [ ] c) Brand Loyalty [ ]

B) Taste [ ] d) Price [ ]

5. How did you get to hear about this brand?

a) TV [ ] c) Internet [ ]

b) Word of Mouth [ ] d) Print [ ]

6. If your brand is not available you would..?

a) Purchase another brand [ ] c) Wait for it to be available [ ]

b) Go for a substitute [ ] d)Buy what is offered by the retailer [ ]


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7. Which pack size do you prefer?

a) 1 kg [ ] c) 500 gm [ ]

b) 250 gm [ ]

8.On what parameters do you choose this pack size?

a) Availability [ ] c) Price [ ]

b) Family size [ ] d) Storage [ ]

9. How often do you buy?

a) Once a month [ ] c) Once in two months [ ]

b) Once in six months [ ]

10. Are you satisfied with your brand?

a) Yes [ ] b) No [ ]


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RETAILER QUESTIONNAIRE-DABUR CHYAWANPRASH

DearRespondent,

Thanks for sparing few minutes to fill this questionnaire, which will help us to study the

consumer perception for the Chyawanprash category that we have chosen to study. Any

information provided by you will purely and strictly be used for Academic Purpose only.

Personal Information :-

Name: -------------------------------------------------------------------------------------

Age:

Location of store: --------------------------------------------------------------------------

-

1. Which brands of Chyawanprash do you stock?

a) Zandu [ ] c) Himani Sona Chandi [ ]b) Baidyanath [ ] d) Dabur [ ]

2. Out of these which are the most preferred?

a) Zandu [ ] d) Himani Sona Chandi [ ]b) Baidyanath [ ] c) Dabur [ ]

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

a) Brand loyalty [ ] c) Price [ ]

b) Availability [ ] d) No reason [ ]


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4. What is the profile of your typical consumer?

a) High income [ ] b) Middle income [ ]

c) Low income [ ]

5. What schemes are you offered by the companies?

a) Price discounts [ ] c) Buy one get one free [ ]

b) Others [ ]

6. What schemes does a consumer prefer most?

a) Price discounts [ ] c) Buy one get one free [ ]

b) Others [ ]

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

preference?

a) Yes [ ]

b) No [ ]

8.Does a change in price affect their preferences?

a) Yes [ ] b) No [ ]


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BIBLIOGRAPHY

Books and Journals Referred

MATHUR P. & GUPTA S.K: Preventive Effect of Chyawanprash AgainstSteroid Induced Cataract: Journal of; International Journal of Human

Genetics; January 1998 : Page No;134-137

Ojha,J :Chyawanprash is a Classical Ayurvedic Formulation : Journal ofVedic to Genomic Era : Year- 2003 : Page No. 282-284

RASTOGI S. & BALA S: The Dynamic Effect of Dabur ChyawanprashJournal of Indian Pharmaceutical Sciences: Year- 2004: Page No.; 53-

BANSAL & NITIN: Traditional medicinal formulation Chyawanprash - Areview : Journal of CSIR: Oct 2006: Page No ; 28 32

Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller

List of Newspapers

BUSINESS LINE - Chandran, Rina. Good monsoon doesnt mean moreFMCG sales,BusinessLine Chennai, 20 November 2003.

THE ASIAN AGE - Dey, Mrinal K. Subhiksha plans Rs.150 crore expansionstrategy, the Asian Age, 20 November 2003.

ECONOMIC TIMES- Vikram. Competing on price is the new name of thegame, Economic Times, 7 February 2001.

FINANCIAL EXPRESS- Jain & Ajay. Food retailing value addition to upgrowth, FinancialExpress, 17 June 2003.

THE TELEGRAPH - Nair & Malini. The great Indian super bazaar, TheTelegraph, Calcutta edition, 3 April


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WEB SOURCES

www.brandchannel.com www.blonnet.com www.superbrandsindia.com www.india-today.com/ www.retailnews.com www.vikalpa.com


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LIST OF CHART

Chart No. Chart Content Page No.

1 Chart showing the brand awareness of Chyawanprash 40

2 Chart showing the brand preference 41

3 Chart showing the satisfaction level 42

4 Chart showing reasons behind purchase 43

5 Chart describing the awareness behind of brand 44

6 Chart describing the unavailability of preferred brand 45

7 Chart showing the pack size preference 46

8 Chart showing the parameter of selection 47

9Chart describing the frequency of purchase

48

10

Chart showing the status of stock

49

11 Chart showing the brand preference 50

12 Chart showing the reason for customer preference 51

13 Chart showing various schemes launch by the company 52

14 Chart showing income group of people 53

15Chart showing schemes consumer prefers most

54

16 Chart showing the advertising affect on consumer preference 55

17 Chart showing the price affect on consumer preference 56


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