A STUDY OF MARKETING STRATEGIES FOR DABUR VATIKA HAIR OIL WITH SPECIAL REFERENCE TO ALLAHABAD

"PROJECT REPORT FOR THE PARTIAL FULFILLMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION"

Under the Supervision of Mr. Sanjay Mehrotra Sales Manager

Submitted By : . M.B.A. 3rd Semester Roll No.

ACKNOWLEDGEMENT
The present work is an effort to throw some light on Marketing 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 of my Supervisor Dr. R.S. Singh. With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mr. Sanjay Mehrotra (SALES MANAGER) and other staff members of Dabur India Ltd. I convey my heart full affection to all those people who helped and supported me during the course, for completion of my Research Report. .. ..

TABLE OF CONTENTS

A STUDY OF MARKETING STRATEGIES FOR DABUR VATIKA HAIR OIL WITH SPECIAL REFERENCE TO ALLAHABAD .........................1 ACKNOWLEDGEMENT.......................................2 TABLE OF CONTENTS.........................................3 EXECUTIVE SUMMARY.....................................5 CHAPTER 1: OBJECTIVE OF THE STUDY........6 Following are the Major Objective of Study: -........6
IMPORTANCE OF THE STUDY..........................................................................6

CHAPTER 2: RESEARCH METHODOLOGY.....7

LIMITATIONS........................................................................................................8

CHAPTER 3: COMPANY DETAILS..................11

3.1: OVERVIEW OF FMCG SECTOR IN INDIA...............................................11 3.2: COMPANY OVERVIEW..............................................................................15 3.3: FINANCIAL REPORT..................................................................................16 3.4: COMPANY HISTORY..................................................................................17 Professionals to manage the company...........................................................................17 3.5: PRODUCT LINE............................................................................................17 3.6: SWOT ANALYSIS OF DOBUR...................................................................21

CHAPTER 4: OVERVIEW OF THE HAIR OIL SEGMENT.............................................................22

4.1: Overview of VATIKA....................................................................................24 4.2: STP ANALYSIS OF VATIKA HAIR OIL....................................................24 4.3: MARKETING MIX OF VATIKA HAIR OIL...............................................26 4.4: COMPETITOR ANALYSIS..........................................................................33 4.5: MBOSTON CONSULTANCY GROUPS GROWTH SHARE MATRIX. .35 4.6: THE NEW DABUR ENTITY........................................................................37 4.7: THE FUTURE FOR DABUR .......................................................................38

CHAPTER 5: DATA ANALYSIS........................42

5.1: CUSTOMER SURVEY RESULTS...............................................................42 5.2: RETAIL SURVEY RESULTS.......................................................................44

CHAPTER 6: FINDINGS, RECOMMENDATIONS AND SUGGESTION...48 CHAPTER 7: CONCLUSIONS............................49

ANNEXURE: A: CONSUMER QUESTIONNAIRE- DABUR VATIKA HAIR OIL 50 ANNEXURE: B: RETAILER QUESTIONNAIREDABUR VATIKA HAIR OIL...............................54 ANNEXURE: C: BIBLIOGRAPHY.....................56

EXECUTIVE SUMMARY
This report aims at analyzing and reporting on the marketing strategies of Dabur India Ltd (DIL) for the brands Dabur Vatika Hair Oil. The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the companys highest selling brands. 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. This report is not aiming at the overall marketing mix or the marketing strategy of Dabur India Ltd, but is an attempt to analyze the marketing mix of Dabur Vatika Hair Oil. The report also enlists various recommendations based on SWOT Analysis etc. This analysis has been done on the basis of the information gathered from the company website and other online resources and books and articles.

CHAPTER 1: OBJECTIVE OF THE STUDY

Following are the Major Objective of Study: 1 To compare the Marketing Strategy of Dabur Vatika Hair Oil with other

Hair oil Competitors i.e. Marico, HLL, Keo Karpin. 2 To study the Consumer Buying behaviour with reference to Dabur vatica

hair oil. 3 To study the problems faced by Dabur Vatika Hair Oil in Allahabad

region. IMPORTANCE OF THE STUDY Being student of MBA it is very essential for me to have a practical knowledge in an organization. Only to study business administration course knowledge is not the solution of the problems, which arise in practical field. There is a certain formula for any particular problem, but the aim of this study is to develop the ability of decision-making. A right decision at right time and right place itself helps an organization to run smoothly. This study gives an idea of all marketing activities. So the way a problem is solved right decision-making and knowledge of different types of making activities give much importance to the study. Only in two month training it was not possible to understand it so deeply, but an overall idea could be developed.

CHAPTER 2: RESEARCH METHODOLOGY

As the purpose of the project report is to analyse the consumable products successfully launched in the last three years. 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 for consumers was structured as undisguised, & Personal -interview retailers. Distributors & wholesalers and it were handed personally by me to the respondents to be analysed. The questionnaire method was useda) b) To get first and relevant and unbiased information Questionnaire provides versatility and solutions can be obtained by just

asking the questions. c) d) Questioning is usually faster and cheaper. 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 in order to determine the market opinion.

The questionnaire was of multiple choices 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. Convenience Sampling method are used for collection of primary data related to the Dabur Vatika hair oil. 1. Sample size for customers were 50 in number and the universe comprised

of all the consumers within the geographical region of Allahabad. 2. Sample size for retailers were 20 in number and the universe comprised

of all the retailers within the geographical region or Allahabad. 3. 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. 4. The statistical technique such a Pi-chart and percentages were used in

analysing and interpreting the data. LIMITATIONS 1. As the project involved the marketing research using questionnaires,

views expressed by the respondents are confined to the elements of questionnaire. But I tried to get more information through general questions so that I could reach at the clear picture of the situation. 2. Between the sender and the receiver, due to differing perceptions,

communication errors in the form of miscomprehension, selective perception

etc. creeps in. In this case too, these were unavoidable, and thus might have added to slight inaccuracy in my results. 3. All customers are not alike. Thus the results may not hold true for every

individual. 4. In some instances respondents may not have revealed the truth.

10

CHAPTER 3: COMPANY DETAILS

3.1: 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 characterized by a well-established distribution network, intense competition between the organized and

unorganized 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 is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning 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 foodprocessing 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

11

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 2006-07. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. Rural and urban potential Rural-urban profile Urban Population 2001-02 (mn household) 53 Population 2009-10 (mn household) 69 % Distribution (2001-02) 28 Market (Towns/Villages) 3,768 Universe of Outlets (mn) 1 Source: Statistical Outline of India (2005-06), NCAER Rural 135 153 72 627,000 3.3

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.

12

Source KSA Technopac Consumer Outlook 2006

Source Statistical Outline of India 2006

13

Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset.

14

3.2: 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 one harm. The trust levels that this brand enjoys are phenomenally high. While Rise and Trout may ask What does Dabur stand for shampoo or digestive tablets? The answer is fairly simple, it stands for Indias fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). Theres a great sense of responsibility for investors funds on view. This is a direct extension of Daburs philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall.

15

3.3: FINANCIAL REPORT Rs (Crores) 2008 Turn over (including other income) Profit before tax Add: Provisions of earlier yr written back Less: provision for taxation current : Provision for taxation Deferred : Provision for taxation for earlier yr PROFIT AFTER TAX Add: Balance in profit & loss account b/f From the previous yr Transferred from debenture Redemption Reserve Transferred from investment Allowance Reserve Transferred from Investment Deposit Revenue PROFIT AVAILABLE APPLICATION APPROPRIATION TO: General Revenue Capital Revenue Interim Dividend paid Final Dividend proposed Corporate tax on Dividend Balance carried over to Balance sheet TOTAL FOR 2009 1280.22 165.02 165.02 13.00 4.00 0.05 147.97 81.12 -0.83 1.82 231.74 20092010 1159.02 113.44 0.20 113.44 8.75 3.49 00.26 101.14 66.12 2.50 169.76

25.15 28.63 42.96 9.77 125.23 231.74

22.50 1.56 17.17 40.07 7.34 81.12 169.76

16

3.4: COMPANY HISTORY

1884 1896 Early 1900s 1919 1920 1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000

Birth of Dabur Setting up a manufacturing plant Ayurvedic medicines Establishment of research laboratories Expands further Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Public issues Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the company Turnover of Rs.1, 000 crores

3.5: PRODUCT LINE Foods Real Real Activ Hommade

17

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 G Dabur Hingoli

18

Natural Cures

Shilajit Gold 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

19

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

Oral Care

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

Skin Care Gulabari Vatika Fairness Face Pack

Ayurvedic Specialities Ayurveda Ayurveda Vikas

20

3.6: SWOT ANALYSIS OF DOBUR

21

STRENGTHS Strong presence in well defined

WEAKNESS Seasonal Demand (like

niches (like value added Hair Oil and chyawanprash in winter and Vatika not Ayurveda specialities) Core knowledge of Ayurveda as competitive advantage Strong Brand Image in winter) Low (Chyawanprash) High price (Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd of the total market (Vatika) Penetration

Product Development Strength Strong Distribution Network Extensive Supply Chain IT Initiatives R & D a key strength OPPORTUNITIES Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation

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)

Increasing income level of the middle class Creating additional consumption pattern

CHAPTER 4: OVERVIEW OF THE HAIR OIL SEGMENT

22

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 2006). 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 2006).

23

4.1: Overview of VATIKA The Vatika brand was launched in 1995 with Vatika Hair Oil as its first product. In the very first year of its launch it crossed Rs. 100 million in turnover. Over the years, Vatika has come to be amongst the companys highest selling brands. It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000, by Vatika Anti-Dandruff Shampoo. In 2006, brand sales crossed Rs. 1,000 million. From the companys perspective, Vatika is expected to continue to drive its growth in the years to come. With its innovative offerings, the brand aims to become a frontrunner in the market for hair care and skin care products. Vatika is a comparatively young brand but is already acknowledged for the qualitatively influential and pioneering role that it has played in the evolution of the categories it has had a presence in. Currently, the total annual sales of Vatika products are over Rs. 1,000 million. Of this, Vatika Hair Oil enjoys a 6.4% market share in the coconut hair oil category (Source: ACNielsen ORG-MARG, 2006). Vatika has not just been successful in garnering a premium image but, today, stands as the preferred and trusted brand of 11.1 million users (Source: IRS Household Data). 4.2: 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

24

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 upmarket 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 dayto-day health issues, particularly when it comes to hair care and skin care. In a

25

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. 4.3: 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

26

Product

Price

Promotion

Place

variety Quality Design Features Brand Names Services Terms

List Price

Advertising

&

Channels Location Inventory

Discount Promotion Financin g Schemes Credit Public Relations Sponsorships Internet Marketing

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

27

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, amla 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 colours, used in its packaging, reflect the brands natural ancestry and give it a premium look. These also help Vatika stand out in the cluttered environment of Indian retail. Available in: Bottles Flip cans 75 ml, 150 ml, 300 ml 150 ml, 300 ml

Flip cans were introduced for the winter season. Quality: Vatika products contain natural ingredients that have been blended together through scientific processes at Daburs in-house research laboratories. Dabur Research Foundation has more than 100 scientists working together to make superior quality products that match international standards. PRICE:

28

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 pricing strategy it was able to garner a significant share from the leader in the very first year of its launch.

Nov. 2004

Nov. 2005

The table above shows that Dabur Vatika is one of the highest priced of hair oils since it targets the higher income class and also that the prices have remain unchanged since 2006. PRICE/QUALITY MATRIX Price Quality High Luxury Segment High VATIKA Overpriced Middle Average Real Bargain Middle Ideal For Penetration Low Premiere Offering

29

Make The Sale and Run Unhappy Customers Low

Cheap Goods

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

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

Central, North & South America Australia Asia

30

Middle East North & South Africa East & West Europe

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

Vatika Hair Oils first promotion : It focused 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

31

the goodness of coconut oil enriched with natural herbs. Vatika was firmly established as the leader in the new category of value-added hair oils and its promotion campaign was so successful that the product segment itself came to be identified with Vatika. In 1997, the company created a new promotion campaign which reinforced the obvious fact that most coconut oil brands were not equipped to combat the effects of pollution, hard water and chemicals the major causes of hair ailments and hair deterioration. ADVERTISING: Advertising is some form of paid-for method of communicating with the target audience to inform, educate, reinforce or persuade, leading to mutually satisfactory exchange Nothing can happen without establishing the brands heritage emphasizing technological prowess, explaining benefits and building bonds with prospective buyers. Ads are necessary because the images are still mould able and fluid and the consumers sophistication level is low. Vatika Hair Oil uses a number of advertising media like television, print, Internet, outdoor media, which includes hoardings. Events: In a series of other promotional activities, Vatika has been associated with shows and sponsored events such as the Vatika Super Model India 2001

32

and Vatika Zee Sangeet Awards. It has also had a strong association, since its inception, with Movers and Shakers the popular TV show. Celebrity Endorsements: The idea of using an extraordinary hair oil that offered extra nourishment was communicated through campaigns featuring icons such as Mandira Bedi, Shefali Chhaya and Sudha Chandran all modern, young women perceived to have that extra edge in their personality.A number of commercials over the years have featured personalities like Aditi Govitrikar, Preeti Jhangiani and Shweta Jaishankar.To infuse the values of youthfulness and natural beauty, Rani Mukherjee is the current brand ambassador. 4.4: COMPETITOR ANALYSIS The key competitors of Dabur in the Hair Oil segment are Keo Karpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's domestic market. Dabur is one of India's largest player in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2006 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:

33

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.

34

Maricos Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute's primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%.HLL has two products, Clinic Plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3% share in hair oil market. 4.5: MBOSTON CONSULTANCY GROUPS GROWTH SHARE MATRIX

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

35

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

36
Source: ORG MARG Retail Audit report'06

4.6: 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 wellproportioned, 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.

37

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. 4.7: THE 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

38

global through its Dubai-based arm Dabur India. And the Big B and Rani Mukherjee will help the company get a toehold in the worlds herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore FMCG major has also decided to give a new impetus to its international food supplement brand, Nature4u, by now launching it in the burgeoning Gulf market. It is currently being sold only in UK and EU. We have drawn an aggressive plan to launch Dabur and Vatika globally, starting from the Middle East, GCC and SAARC countries. We expect our market share to double within two years in the 10 countries we will focus on initially, said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind markets for Dabur right now are UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Bangladesh, Pakistan, Egypt and Nigeria. To develop Dabur International as its major overseas hub to service all markets except Russia, the company is setting up a new plant which is expected to be ready in a year. Dabur International already has a plant in Jabel Ali to both package products sourced from India and produce some local variants. Dabur India has been selling its product in Dubai and GCC countries since 1992 through a franchise Redrock Limited. The company had acquired this franchise last year at investments of about USD five million. Growing market share: While there is no doubt that Dabur now has a presence in several product categories ranging from hair care to oral care to home care to health supplements to juices and even soaps, it is also true that in some of these segments its market share is very low and trails the market leader by a huge margin. For instance, Dabur only has a 6% market share in shampoos against

39

HLLs 53%, and a 12% share in the oral care segment against Colgates 46%. Company officials believe that low market share means that there are substantial growth opportunities even if these categories do not grow. Our market shares are low in some segments. This gives us opportunity to penetrate these categories. 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.

40

GROWTH STRATEGY

41

CHAPTER 5: DATA ANALYSIS

5.1: CUSTOMER SURVEY RESULTS DABUR VATIKA AWARNESS LEVEL
100 80 60 40 20 0 PARACHUTE KEO KARPIN NIHAR HAIR AND CARE DABUR VATIKA
PERCENTAGE

PREFERRED

BRAND

40 35 30 25 20 15 10 5 0 PARACHUTE KEO KARPIN NIHAR HAIR AND CARE VATIKA

PERCENTAGE

SATISFACTION LEVEL

42

4 3.5 3 2.5 2 1.5 1 0.5 0

RATIN G(1LOW 5HIGH) PARACHUTE NIHAR VATIKA

REASON TO BUY THE PREFFERED BRAND

50 40 30 20 10 0 NON STICKY FRAGRANCE PERCENTAGE

HOW DID YOU COME TO KNOW ABOUT THIS BRAND?

80 70 60 50 40 30 20 10 0 TV INTERNET WOM PRINT PERCENTAGE

UNAVAILABILITY OF PREFERRED BRAND

43

45 40 35 30 25 20 15 10 5 0

PERCENTAG E

PURCHASE ANOTHER BRAND

WAIT

BUY WHATEVER SUBSTITUTE OFFERED BY RETAILER

5.2: RETAIL SURVEY RESULTS DABUR VATIKA 1. Which brands of Hair Oil do you stock?
80 70 60 50 40 30 20 10 0 marico hll karrpikeo karpin vatika

PERCENTAGE

2.Out of these, which are the most preferred?

44

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

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

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

4. What is the profile of your typical consumer?

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

5. What schemes are you offered by the companies?

45

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

PERCENTAGE

6. What schemes does a consumer prefer most?

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

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

46

60 50 40 30 20 10 0 yes no PERCENTAGE

8.Does a change in price affect their preferences

60 50 40 30 20 10 0 yes no PERCENTAGE

47

CHAPTER 6: FINDINGS, RECOMMENDATIONS AND SUGGESTION

1. 2. 3. 4. 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 of ayurveda and herbs with modern science. 5. 6. Provide consumers with innovative products within easy reach. Vatika hair care centre: On the lines of Maricos Kaya Skin Clinic,

Dabur could start a venture called Vatika hair care centre which would provide total hair care solutions. It could have hair care experts to solve hair problems. Services could include dandruff treatment,

straightening of hair, treatment for split ends etc. 7. More initiatives like Dabur ki Deewar

to increase brand visibility. It is an initiative to occupy shelf space.

48

CHAPTER 7: CONCLUSIONS
The Hair oil Industry is yet to capture the market in full swing. Hair oils are yet to establish their supplement use in the average household here in lies the great opportunities. Within the market, it is safe to conclude that dabur has hit off ratherwell with the masses. dabur has clearly lost it head start advantage and thereby acquiring just 19% of the market share while others enjoys rest of the market share. This could be well attributed to dabors successful 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 . 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 a company has to create perceptions and cover them into realities. It is an

expensive proposition requiring huge expenditure on advertising, sponsorships and media. Thus, the ideal company will be the one which combines the high end technology with consumer insight. As 16% of the excise duty is exempted on food products in this budget , Many Oil companies including Dabur got benefited from it . On the analysis of survey it was found that target Market of Hair Oil want quality benefit rather

49

then Price benefit, so it is better to stress on quality rather than on decreasing price to increase sales and profit. To increase market share Dabur should give slight price benefit on Dabur brand so that customers of other Juice brand should switch from other brand to Dabur brand . 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.

ANNEXURE: A: CONSUMER QUESTIONNAIRE- DABUR VATIKA HAIR OIL

Dear Respondent, Thanks for sparing few minutes to fill this questionnaire, which will help us to study the consumer perception for hair oil.

50

Any information provided by you will strictly be used for Academic Purpose. 1. 2. 3. 4. Which brands of hair oil are you aware of? Parachute Keo Karpin Nihar Hair And Care Dabur Vatika Which brand of Hair Oil do you use? Parachute Keo Karpin Nihar Hair And Care Dabur Vatika Where would you rate your brand on a scale of 1 5 ( 5 being highest)? Parachute Keo Karpin Nihar Hair And Care Dabur Vatika What are the primary reasons for which you use this particular brand? Non sticky

51

 5. 6. 7. 8.

Brand Loyalty Fragrance Price How did you get to hear about this brand? TV Internet Word of Mouth Print If your brand is not available you would? Purchase another brand Wait for it to be available Go for a substitute Buy what is offered by the retailer Which pack size do you prefer? 75 ml 150 ml 300 ml On what parameters do you choose this pack size? Availability Price Family size

52

 9. 10.

Storage How often do you buy? Once in 15 days Once a month Once in two months Are you satisfied with your brand? Yes No

Personal Information :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

53

ANNEXURE: B: RETAILER QUESTIONNAIRE-DABUR VATIKA HAIR OIL

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. 1. 2. 3. Which brands of Hair Oil do you stock? Marico HLL Keo Karpin Dabur Vatika Out of these which are the most preferred? Marico HLL Keo Karpin Dabur Vatika According to you what are the reasons for customers preferences? Brand loyalty Price Availability

54

 4. 5. 6. 7.

No reason What is the profile of your typical consumer? High income Middle income Low income What schemes are you offered by the companies? Price discounts Buy one get one free Others What schemes does a consumer prefer most? Price discounts Buy one get one free Others According to you, does in-store advertising have an affect on the

consumers preference? 8. Yes No Does a change in price affect their preferences? Yes No

55

ANNEXURE: C: BIBLIOGRAPHY
Books: Marketing Management: Twelfth Edition Philip Kotler & Kevin Lane Keller Marketing Research by Rajendra Narundkar Marketing Research by G.C. Beri Websites: www.google.com www.dabur.com www.tutor2u.net www.brandchannel.com www.blonnet.com www.superbrandsindia.com

56