Marketing Strategy of Dabur Vatika Hair Oil

1. INTRODUCTION [pic] Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For the past 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. Through our comprehensive range of products, we touch the lives of all consumers, in all age groups, across all social boundaries.And this legacy has helped us develop a bond of trust with our consumers. That guarantees you the best in all products carrying the Dabur name. 1. 1 Dabur India Ltd. – Corporate Profile- Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of US$1 Billion (over Rs 5,000 Crore) & Market Capitalisation of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities — Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, real for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.The company has a wide distribution network, covering over 2. 8 million retail outlets with a high penetration in both urban and rural markets. Dabur's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe . Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 30% of the total turnover. The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines company.From its humble beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation. 1. 2. Dabur At-a-Glance | |Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of | |success is based on ded ication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and | |stakeholders. The results of our policies and initiatives speak for themselves. |Leading consumer goods company in India with a turnover of   Rs. 5,283 Crore (FY12),2 major strategic business units (SBU) – Consumer | |Care Business and International Business Division (IBD),2 Subsidiary Group companies – Dabur International and NewU and several step | |down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care | |(Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. | |(USA). 7 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries. Wide and deep market | |penetration with  50 C agents, more than 5000 distributors and over | |1. 3 Million retail outlets all over India | |Consumer Care Business addresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal | |Care, Health Care, Home Care  . |1. 4 Master brands | |Dabur – Ayurvedic healthcare products | |Vatika – Premium hair care |Hajmola  Ã¢â‚¬â€œ Tasty digestives | |Real – Fruit juices & beverages | |Fem – Fairness bleaches & skin care products | |12 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Real, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola, | |Dabur Honey, Glucose, Fem and Odonil. Strategic positioning of Honey as food product, leading to market leadership (over 75%) in | |branded honey market. Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.Vatika has been the | |fastest growing hair care brand in the Middle East. Hajmola tablets in command with 60% market share of digestive tablets category. | |About 2. 5 crore Hajmola tablets are consumed in India every day. Leader in herbal digestives with 90% market share . Consumer Health | |Division (CHD) offers a range of  classical Ayurvedic medicines  and Ayurvedic OTC products that deliver the age-old benefits of | |Ayurveda in modern ready-to-use formats Has more than 300 products sold through prescriptions as well as over the counter.Division | |also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of | |students. | | | | | |International Business Division (IBD) caters to the health and personal care needs of customers across different international | |markets, spanning Nepal, Bangladesh, the Middle East, North & West Africa, EU and the US  with its brands Dabur & Vatika   | |1. Core Values | |Vision- â€Å"Dedicated to the health and well being of every household† | |Principles-Ownership-This is our company. We accept personal responsibility, and accountability to meet business needs. | |Passion for winning-We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to | |be the best at doing what matters most. |People Development-People are our most important asset. We add value through result driven training, and we encourage & reward | |excellence. | |Consumer Focus-We have superior understanding of consumer needs and develop products to fulfill them better. | |Team Work-We work together on the principle of mutual trust & transparency in a boundary-less organization. We are intellectually | |honest in advocating proposals, including recognizing risks. |Innovation-Continuous innovation in products & processes is the basis of our success. | |Integrity-We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners| |and with each other. | 1. 1. 6 Strategic Intent-We intend to significantly accelerate profitable growth. To do this, we will: †¢ Focus on growing o ur core brands across categories, reaching out to new geographies, within and outside India, and 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 our deep knowledge of ayurveda and herbs with modern science. †¢ Provide our consumers with innovative products within easy reach. †¢ Build a platform to enable Dabur to become a global Ayurvedic leader. †¢ Be a professionally managed employer of choice, attracting, developing and retaining quality personnel. †¢ Be responsible citizens with a commitment to environmental protection. Provide superior returns, relative to our peer group, to our shareholders 7. Company History | | |[pic] | |   | |   | |   |    | |   | |   | |   | |   | |   | |   | |   | |   | | | |1884 | |   | |Birth of Dabur | | | |1896 | | | |Setting up a manufacturing plant | | | |Early 1900s | | | |Ayurvedic medicines | | | |1919 | | | |Establishment of research laboratories | | | |1920 | | | |Expands further | | | |1936 | | | |Dabur India (Dr. S. K. Burman) Pvt. Ltd. | | |1972 | | | |Shift to Delhi | | | |1979 | | | |Sahibabad factory / Dabur Research & Development Centre (DRDC) | | | |1986 | | | |Public Limited Company | | | |1992 | | | |Joint venture with Agrolimen of Spain | | | |1993 | | | |Cancer treatment | | | |1994 | | | |Public issues | | | |1995 | | | |Joint Ventures | | | |1996 | | |3 separate divisions | | | |1997 | | | |Foods Division / Project STARS | | | |1998 | | | |Professionals to manage the Company | | | |2000 | | | |Turnover of Rs. ,000 crores | | | |2003 | | | |Dabur demerges Pharma Business | | | |2005 | | | |Dabur acquires Balsara | | | |2005 | | | |Dabur announces Bonus after 12 years | | | |2006 | | | |Dabur crosses $2 Bin market Cap, adopts US GAAP | | | |2006 | | |Approves FCCB/GDR/ADR up to $200 million | | | |2007 | | | |Celebrating 10 years of Real | | | |2007 | | | |Foray into organised retail | | | |2007 | | | |Dabur Foods Merged With Dabur India | | | |2008   | | | |Acquires Fem Care Pharma | | | |2009   | | | |Dabur Red Toothpaste joins ‘Billion Rupee Brand' club | | | |2010   | | | |Dabur makes its first overseas acquisition | | | |2011   | | | |Dabur enters professional skin care market | | | |2011 | | |Dabur India acquires 30-Plus from Ajanta Pharma | | | |2012   | | | |Dabur crosses Billion-Dollar Turnover Mark | | | | | | | | | | | 1. 8 Founder and Leaders |Founding Thoughts â€Å"What is that life worth which cannot bring comfort to others† | |The doorstep ‘Daktar' The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in | |Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With m issionary zeal and | |fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and | |plague.Soon the news of his medicines traveled, and he came to be known as the trusted ‘Daktar' or Doctor who came up with effective | |cures. And that is how his venture Dabur got its name – derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur | |in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. | |S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small | |Calcutta house, to a household name that at once evokes trust and reliability. | |1. 9. Milestones- 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 come a long way in popularizing and making easily available a whole range of products based on the | |traditional science of Ayurveda. And Dabur 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†¦ Milestones To Success. | 1. 10. Company Details Dabur Group With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently.Given the vast range of products, sourcing, production and marketing have been divested to the group companies that conduct their operations independently: [pic][pic][pic]  [pic] [pic][pic] Dabur Worldwide |[pic] | |Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today, there is growing global awareness on alternative | |medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this | |alternative way of life, marketing its products in more than 60 countries all over the world.Over the years, Dabur's overseas business has | |successfully transformed from being a small operation into a multi-location business spreading through the Middle East, North Africa, West Africa| |and South Asia. | |Our Products Worldwide- We have spread ourselves wide and deep to be close to our overseas consumers. Our overseas product portfolio is | |tailor-made to suit the needs and aspirations of our growing consumer base in the international markets. Offices and representatives in Europe, | |UK, America and Africa . A special herbal health care and personal care range successfully selling in markets ranging from the Middle East, Far | |East, North Africa and Europe.Inroads into several European and American markets that have good potential due to resurgence of the | |back-to- nature movement. Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to | |Europe, Latin America, Africa, and other Asian countries. Export of food and textile grade natural gums, extracted from traditional plant | |sources. Partnerships & Production- Strategic partnerships with leading multinational food and health care companies to introduce innovations in | |products and services. Six modern manufacturing facilities spread across South Asia, Middle East and Africa to optimise production by utilising | |local resources and the most modern technology available. | |1. 11.Manufacturing Facilities in India- | |[pic] | | | | | | | | | | | |1. 12 CEO OF DABUR- | |[pic] | | | |Mr.Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organization he joined in | |1995. Mr Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his E ngineering Degree (Electrical & | |Electronics) from BITS, Pilani, and Business Management from IIM, Calcutta. His stint at Wimco continued till 1994, with a break in between when | |he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM, | | | |Sales Operation.In 1995, he joined the Dabur family as General Manager (Sales & Marketing) of the Family Products Division with products like | |Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. | |Vatika was also launched during this period and is now the Company's second biggest brand. With his dynamic spirit and leadership abilities, he | |soon became Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of | |Dabur India Limited. And in 2002, he became the CEO of the Company – a professional with valuable experience to steer the company ahead in its | |growth plans. | |Spanning a career of over 20 years, Mr.Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him | |understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer | |needs. Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official responsibilities, Mr. Duggal likes to | |spend time at home with his family and an occasional round of golf. | |1. 13. Corporate Governance- Good corporate governance and transparency in actions of the management is a key to a strong bond of trust with the | |Company’s stakeholders. Dabur understands the importance of good governance and has constantly avoided an arbitrary decision-making process.Our | |initiatives towards this end include: -Professionalization of the board | |Lean and active Board (reduced from 16 to 10 members) | |Less number of p romoters on the Board | |More professionals and independent Directors for better management | |Governed through Board committees for Audit, Remuneration, Shareholder Grievances, Compensation and NominationsMeets all Corporate Governance | |Code requirements of SEBI | |1. 14. Corporate Citizenship- When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw beyond the profit motive. In his| |words, â€Å"What is that life worth which cannot bring comfort to others? † This ideal of a humane and equitable society led to initiatives taken to | |give back some part of what Dabur has gained from the community.Our major initiatives in the Social sector include: Establishment of the | |Sustainable Development Society, or Sundesh, in 1993 – a non-profit organization to promote research and welfare activities in rural areas; | |Promoting health and hygiene amongst the underprivileged through the Chunni Lal Medical Trust; and Organizing the Plant for Life programme for | |schoolchildren – to create environmental awareness amongst young minds. Our commitment to Environment- Ancient wisdom of conservation- From times| |immemorial, Indian sages and men of wisdom have understood and appreciated the value of nature and its conservation. Our ancestors recognized | |that if we grabbed from nature beyond what was healthy, it would lead to all round degradation, and even the extinction of humanity. That is why | |nature was sanctified and worshipped in the form of gods and goddesses. | | | | | | | | | | | | | | | | | | |1. 15 Dabur upholds the tradition | |Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of Dabur would never have been fulfilled. And that is the| |reason for our unfailing commitment to ecological conservation and regeneration.We would like to follow the principles of our ancient texts, | |which say: â€Å"Dehi me dadami te† – â€Å"you give me, and I give yo u†. | | | | | | | |1. 16 Back to Nature | | | |Rare herbs and medicinal plants are our most valuable resource, from which all our products are derived.Due to overexploitation of these | |resources and unsustainable practices, these plants and herbs are fast reaching the point of extinction. In view of this critical situation, | |Dabur has initiated some significant programmes for ecological regeneration and protection of endangered plant species. | | | | | | | |1. 17 Plants for Life | | | |We have set up the â€Å"Plants for Life† project in the mountainous regions of the Himalayas.Under the project, a high-tech greenhouse facility has | |been set up for developing saplings of rare and endangered medicinal plants. Fully computer-controlled and monitored, this greenhouse maintains | |the highly critical environmental parameters required for their survival. We are also developing quality saplings of more than 20 herbs, 8 of | |them endangered, through micro propag ation. In addition, satellite nurseries spread across mountain villages and contract cultivation of | |medicinal herbs helps in maintaining the ecological balance. These measures have also helped provide local cultivators the scientific knowledge | |for harvesting herbs and a steady source of income.So that they are not forced to exploit the environment to earn a livelihood. | | | | | | | |1. 18 Living a Green Heritage | | | |These are significant steps that can contribute to a better world for coming generations. To whom we would like to bequeath a world not bereft of| |nature. But full of flowering and fruit bearing trees, animals, birds and humans living in good health and complete harmony. |IT Initiatives | |At Dabur India Limited, knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and | |efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing Information Technology in a big way. Thi s will help in| |integrating a vast distribution system spread all over India and across the world. It will also cut down costs and increase profitability. | |Our major IT Initiatives-Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units. | |Implementation of a country wide new WAN Infrastructure for running centralized ERP system. Setting up of new Data Centre at KCO Head Office. |Extension of Reach System to distributors for capturing Secondary Sales Data. Roll out of IT services to new plants and CFAs. | |Future Challenges-Forward Integration of SAP with Distributors and Stockists. Backward Integration of SAP with Suppliers. Implementation of new | |POS system at Stockist point and integration with SAP-ERP. Implementation of SAP HR and payroll. SAP Roll-out to DNPL and other new businesses. | | | | | |1. 20 Sustainability Report- | |At Dabur, environment and nature is the lifeline of our business.With a portfolio of Ay urveda and nature-based products, conservation of nature | |& natural resources is deep rooted in our organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not merely | |incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and | |responsibilities to the society and to the environment. It is this concept that inspires us to optimize our business performance to tackle the | |new and growing challenges of environment and technology. It is a concept on which we aspire to build an organization that will continue to | |increase value for all our stakeholders for generations to come, hrough intensive focus on Conservation of Energy and Technology Absorption, | |along with Health, Safety and Environment Protection. | |1. 21. Conservation of Energy- | |Dabur has been undertaking a host of energy conservation measures. Successful implementation of various energy conservation pro jects have | |resulted in a 13. 8% reduction in the Company’s energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has | |come despite an 8-9% volume increase in manufacturing, and an average 11. 7% increase in cost of key input fuels .The host of measures – key among| |them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment – helped lower the cost of | |production, besides reduce effluent and improve hygiene conditions & productivity. | |[pic] | |1. 22. Technology Absorption | |Dabur has also made continuous efforts towards technology absorption and innovation, which have contributed towards preserving natural resources. | |These efforts include: Minimum use of water in process by pre-concentration of herbal extract and reduction in concentration time.Uniform | |heating in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using n on-stick coating and formulation | |change. Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water, reutilization of waste water from | |pump seal cooling and RO reject waste-water management. Introduction of water efficient CIP system with recycling of water in fruit juice | |manufacturing. Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacilus burchi. The | |Company has achieved a host of significant benefits in terms of product improvement, cost reduction, product development, import substitution, | |cleaner environment and waste disposal, amongst others. | | |1. 23. Health Safety & Environmental Review | |Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A | |dedicated â€Å"Safety Management Team† has also been put in place to work towards the prevention of untoward incidents at the c orporate and unit | |level, besides educate & motivate employees on various aspects of Health, Safety and Environment. The Company is also continuously monitoring its| |waste in adherence with the pollution control norms.In pursuance of its commitment towards the society, efforts have also been initiated to | |conserve and maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered encouraging results| |and has put the company on the path to becoming a Water-Positive Corporation. Dabur also initiated a Carbon Foot Print Study at the unit level | |with an aim to become a carbon positive Company in years to come. At Dabur, we are committed to sustainable development throughout our diverse | |operations. And, we will strive to translate the good intentions into concrete and lasting results, contributing to the ultimate good of the | |society. | | | | | | | | | | | | |   | 1. 24. PRODUCT LINE Foods: †¢ Real †¢ Real A ctiv †¢ 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 Fun2 †¢ Hajmola Candy †¢ Pudin Hara (Liquid and Pearls) †¢ Pudin Hara G †¢ Dabur Hingoli ? 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 ? Hair Care Shampoo †¢ Anmol Silky Black Shampoo †¢ Vatika Henna Conditioning Shampoo †¢ Vatika AntiDandruff Shampoo †¢ Anmol Natural Shine Shampoo Oral Care: †¢ Dabur Red Gel â € ¢ Dabur Red Toothpaste †¢ Babool Toothpaste †¢ Dabur Lal Dant Manjan †¢ Dabur Binaca Toothbrush Skin Care †¢ Gulabari Vatika Fairness Face Pack Ayurvedic Specialties †¢ Ayurveda †¢ Ayurveda Vikas 1. 25 Rural and urban potential Rural-urban profile 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$ 14. billion in 2008 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 food-processing industry.India is one of the largest emerging markets, with a population of over one billion. India is middle class base of 300 million. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 145 million in 2007 one of the largest economies in the world in terms of purchasing power and has a strong -08 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG ma rket was estimated at around US$ 14. 5 billion in 2007-08. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. |Urban |Rural | |Population 2007-08 (mn household) |53 |145 | |Population 2009-10 (mn household) |69 |153 | |% Distribution (2007-08) |28 |72 | |Market (Towns/Villages) |3,768 |627,000 | |Universe of Outlets (mn) |1 |3. 3 | Source: Statistical Outline of India (2008-09), NCAERAn 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. [pic] 1. 26 Product Profile- 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 amo ngst 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 2003, 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, 2007).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 (Sou rce: IRS Household Data). 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. Positi oning ‘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 homegrown 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. â€Å"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 wor k 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 |List Price |Advertising & Promotion |Channels | |Quality |Discount |Public Relations |Location | |Design |Financing Schemes |Sponsorships |Inventory | |Features |Credit Terms |Internet Marketing | | |Brand Names | | | | |Services | | | | 1. 27.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 hea lth 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, and ugdha 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 thr ough 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/QUALITY MATRIX Price> |High |Middle |Low | |Quality | | | | |v | | | | |High |Luxury Segment |Ideal For Penetration |Premiere Offering | | |VATIKA | | | |Middle |Overpriced |Average |Real Bargain | |Low |Make The Sale and Run |Unhappy Customers |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. [pic] 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 1. 28 Promotion Vatika – the key focus brand of the company – has always been well supported.The company realized early that, from the perspective of brand building, it was vital to invest in this brand. Vatika Hair Oil’s 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, alma 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 e ffects of pollution, hard water and chemicals – the major causes of hair ailments and hair deterioration. STP Analysis of DABUR CHYAWANPRASH Segmentation Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes under the category of health supplements. The segments that it considers are growing kids, competitive youth, ever-busy housewives and the aged. For the growing kids: In today's competitive environment, the children are under high pressure to excel. For the competitive youth: Modern life keeps the youth busy and demands them to be active and efficient.For ever-busy housewives: The ‘homemaker' needs to be fit in order to shoulder all responsibilities. For the aged: Old age weakens a person physically and mentally. After segmenting the population into these categories it aims to keep them fit and healthy. TARGETING Traditionally, chyawanprash was supposed to be a health supplement for the aged and kids. Dabur Chyawanprash (DCP) is now targeting adults, housewives, youth and kids. This it is trying to achieve through its promotion activities by making Amitabh Bacchan and Vivek Oberoi do the endorsement act. Amitabh has been projected as a user of Chyawanprash attempting to establish the relevance of DCP amongst the adults in today’s demanding lifestyle.Vivek, who represents an urban ambitious non-user with a mindset that Chyawanprash is not for him, meets his moment of truth when outperformed by a young Chyawanprash user, thus reaching out to kids. His final conversion from a non-user to a Chyawanprash user connects with the Youth. These two ads complement each other and connect very well with the targeted consumers. POSITIONING â€Å"Andar se strong†: Dabur chyawanprash has the tag line â€Å"Andar se strong† By using a natural language instead of scientific language it is able to connect with the consumers and is able to achieve a better positioning in the minds of the Indian health conscious consume r. A category like Chyawanprash for instance needs to understand that in employing the category language it loses any chance of expressing its own benefit distinctively.Holistic Health benefit of Ayurveda: Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. The brand conveys this health conscious holistic view of the product. Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures selection, processing and quality control of right herbs along with scientific and clinical studies – makes DCP a trustworthy offering for consumers. Consumers view DCP as a product by a trusted brand and therefore do not need to think twice before making a purchasing decision. 1. 29 MARKETING MIX FOR DABUR VATIKA HAIR OIL AND DABUR CHYAWANPRASH [pic] | | | | | | | | 1. 30. MARKETING MIX OF DABUR CHY AWANPRASH Dabur Chyawanprash is the market leader in the chyawanprash segment and has achieved this with its innovative product offering, pricing strategy, easy availability and promotion campaigns. In the marketing mix of Dabur, we shall be discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The mix shall be analyzed as followed: †¢ Product †¢ Price †¢ Place †¢ Promotion Product |Price |Promotion |Place | |Product Variety |List Price |Advertising & Promotion |Channels | |Quality |Discount |Public Relations |Location | |Design |Financing Schemes |Sponsorships |Inventory | |Features |Credit Terms |Internet Marketing | | |Brand Names | | | | |Services | | | | Product Dabur Chyawanprash is the leader in the Chyawanprash category and enjoys a market share of 61 per cent.In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness. The product is essential ly a health supplement. Known as the â€Å"elixir of life†, Chyawanprash has (clinically) proven benefits in maintaining smooth body functioning. The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and immune-stimulant. Dabur Chyawanprash helps in stimulating immune system, relieving stress, improving stamina, fighting aging through anti-oxidant property, improving lung function, fighting respiratory infections & building resistance to disease. It is these properties that make Dabur Chyawanprash a preferred choice for its users.Ingredients of Dabur Chyawanprash †¢ Vishwast Amla, Ashwagandha, Hareetaki, Dashmul, Ghrit and several other herbs and herbal extracts. †¢ Special Vishwast fortified with additional health beneficial herbs like   Keshar, Akarkara etc. Available in: Dabur Chyawanprash is available in three sizes to cater to the needs of different types of people. 1. One kilogram pack 2. 500 gram pack 3. 250 gram pack PRICE The pricing o f Dabur chyawanprash is very competitive. Dabur chyawanprash uses second-degree price discrimination i. e. more the quantity, lower the price. 1kg Rs. 175. 00 500gms Rs. 100. 00 250gms Rs. 55. 00 PRICE/QUALITY MATRIX Price> |High |Middle |Low | |Quality | | | | |v | | | | |High |Luxury Segment |Ideal For Penetration |Premiere Offering | | | |DABUR CHYAWANPRASH | | |Middle |Overpriced |Average |Real Bargain | |Low |Make The Sale and Run |Unhappy Customers |Cheap Goods |PLACE- Dabur has a very wide distribution of its products through 1. 6 million retail outlets and 50 C & F agents all over India who distribute products to the retailers. A distribution of C & F agents and manufacturing locations is given below. Dabur’s distribution network extends beyond India in the following countries as well: 1. 31. COMPETITOR ANALYSIS OF VATIKA 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 players in the hair oil segment and the fourth largest producer of FMCG. It was established in 1884, and had grown o 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:[pic] 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 sha re 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 targets have been women of all age. 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. COMPETITOR ANALYSIS OF CHYAWANPRASH The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath, Zandu and Him ani, which together with Dabur have about 85% of India's domestic market. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: [pic] Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector w