A

Project Report ON

“Market strategy of Dabur Vatika Hair Oil”

2011-2013

International School of Informatics &

Management

Submitted to :- Submitted by:-

Mr.RAHUL SHARMAMr.RAHUL SHARMA HEENA KHICHHEENA KHICHFaculty ISIM PGDM 1Faculty ISIM PGDM 1STST SEM. 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

COMPANY’S OVERVIEW

COMPANY’S 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. To study the impact of Budget Policies on

Improvement of sales of Dabur Vatika.

2. 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, Nestlé, 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 growth categories in both rural and urban areas.

Indian Competitiveness and Comparison with the World Markets

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 food-

processing 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 India’s 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 for—shampoo or digestive

tablets?” The answer is fairly simple, it stands for India’s 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). There’s a great sense of responsibility for investors’ funds on

view. This is a direct extension of Dabur’s 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 wholly-

owned 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

GulabariVatika 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

WEAKNESS

Seasonal 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 company’s 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 company’s 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 ORG-

MARG

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, multi-

faceted, 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 Price Promotion Place

Product

Variety

Quality

Design

Features

Brand

Names

Services

List Price

Discount

Financing

Schemes

Credit

Terms

Advertising

& Promotion

Public

Relations

Sponsorship

Internet

Marketing

Channel

Location

Invento-

ry

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 75 ml, 150 ml, 300 ml

Flip cans 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 Dabur’s 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 MATRIXPrice→

Quality

↓

High Middle Low

High

Luxury

Segment

VATIKA

Ideal For

Penetratio

n

Premiere

Offering

MiddleOverpric

ed

Average Real Bargain

Low

Make The

Sale and

Run

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.

Dabur’s 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 SKU’s 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 Oil’s 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 lemon-

derived 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 brand’s 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 consumer’s 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 Mover’s 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 competitor’s 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.

Marico’s 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.

ANSOFF’S 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, Dabur’s 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 over-

the-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 Dabur’s 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

world’s 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 HLL’s 53%, and a 12% share in the oral care segment

against Colgate’s 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 used-

a) To get first and relevant and unbiased information

b) Questionnaire provides versatility and solutions can be obtained by just

asking the questions.

c) Questioning is usually faster and cheaper.

d) Moreover, there is more control over data gathering activities.

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?

2.Out of these which are the most preferred?

0

10

20

30

40

50

marico hll karrpikeo karpin vatika

PERCENTAGE

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

4. What is the profile of your typical consumer?

0

10

20

30

40

50

high income middle income low income

PERCENTAGE

5. What schemes are you offered by the companies?

0

5

10

15

20

25

30

35

40

price discount buy one get one others

PERCENTAGE

6. What schemes does a consumer prefer most?

0

10

20

30

40

50

brand loyalty price availability no reason

PERCENTAGE

0

10

20

30

40

50

60

price discount buy one get one others

PERCENTAGE

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

consumers’ preference?

0

10

20

30

40

50

60

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 Marico’s Kaya Skin Clinic, Dabur

could start a venture called Vatika hair care centre which would provide total

hair care solutions. It could have hair care experts to solve hair problems.

Services could include dandruff treatment, straightening of hair, treatment for

split ends, etc.

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. Lack of

publicity has hampered the growth progress of the brand so aggressive

advertising is needed to promote vatika hair oil brand .The brands such as

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 accounts for 4 crores,

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.

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 Vatika’s 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