A

PROJECT REPORT
ON
DABUR INDIA LIMITED
[MARKETING & HR]

Submitted toward the partial fulfillment for the award of Degree

In BACHELOR OF BUSINESS ADMINISTRATION OF
C.C.S. University Meerut
(2013 - 2016)
SUBMITTED BY
SUBODH
ROLL NO:- 6487524
BATCH : (2013-2016)
UNDER THE SUPERVISION OF
(MR. BHARAT BHUSHAN SHARMA)

DEPARTMENT OF BBA

SHARI RONACHARYA
PGCOLLEGE,
1

DANKAUR, GREATER NOIDA

DECLARATION
I hereby declare that the summer training report on Dabur India Ltd.
is prepared and submitted by me is the original work; the report is
based on the data collected by me during the training tenure.

SUBODH

ACKNOWLEDGMENT
I wish to place on record my deepest gratitude and thanks
to personnel from Dabur. Without whose help this project
would not have been possible Mr. Vasuki.n.Kilam, [Area
Sales Manager], Mr. Tarkesh Gupta [ Manager - HR] from
Dabur Co. were the concerned personnel I interacted with.
I would further like to thank Ms. Komal Tomar for his able
guidance throughout this project.

Table of Content
1. Synopsis
2. Introduction
3. Assumption
4. Company Information
5. Organization Structure (Existing)
6. Organization Structure (Proposed)
7. Activities
8. Mission
9. Product
10. Research and Development
11. Expansion and Diversification
12. Product placement strategy
13. Pricing Strategy
14. Promotional Strategy
15. Conclusion
16. Recommendation
17. Bibliography
18. Limitation
19. Methodology

SYNOPSIS
This project report covers and brings to light the marketing
strategies & Human Resource Management of Dabur India
Limited.
Herbal product industry, though based on the age old
practice of Ayurveda, is still in its nascent stage in India. But
it is growing by leaps and bounds every year. This is
because of the growing awareness

of people for natural

products and with the general tendency to revert back to

nature.
The demand for herbal products is increasing world wide
and

this

provides

an

opportunity

for

India,

with

its

inheritance of abundant natural herbs and the Ayurvedic and

Unani system of medicine, to rise up to the occasion. If,
India wants and takes the necessary steps it can be the
leader in the herbal export segment.
It is a strange co-incidence that both the companies in
question, started their business, nearly a century ago, with
the production an sale of Ayurvedic medicines. While Dabur
grew with time and became a company with highly
5

diversified product portfolio. Today Dabur is the market

leader in Ayurvedic segment (45%).
For

collection

of

data

together

with

taking

company

information from various primary and secondary sources, 25

consumers were also interviewed regarding their attitudes
about herbal products and about Dabur. A deep insight into
the company, peoples perception about it was available
though this.
The company has some well defined marketing strategies
which suit their needs and requirement. Dabur has
family held business, but Dabur
McKinsey

and

company

gave

been

on the recommendation of
up

its

control

in

the

management and appointed outside officials. Dabur which

has set his eyes on becoming a FMCG and of achieving a
turnover of Rs. 2000 crore by the next century has brought
in several changes.

INTRODUCTION
This Project Report forms an integral part of the Post
Graduate

Diploma

in

marketing

management.

As

prerequisite the companies should be registered in Delhi

Stock Exchange and should have a minimum operational
period of five year. It is also required that the project should
be done highlighting the area of specialization of the
student.
This project report covers the corporate area of marketing,
as it is my field of interest and area of specialization. The
specific industry chosen is the upcoming, dynamic herbal
product industry. This industry can be further be segmented
into herbal drugs and herbal cosmetics sectors. This is an
industry, which has suddenly proved to be a major threat to
the conventional companies in this segment and is giving
major companies, doing prolific business a run for their
money. The sudden inclination for herbal products due to
increasing consumer awareness has suddenly brought this
industry in the limelight.

The herbal product industry is characterized by changes,

which

are

brought

preferences

and

something

new

directly

awareness.
and

in

relation

New

extra

to

to

customer

companies
the

offering

consumers

are

mushrooming every day. As such the industry provides an

inexhaustible

opportunity

to

study

and

analyse

the

marketing strategies of the different companies.

The objective of my study is to report and analyze the
herbal product related marketing strategies of Dabur .
ASSUMPTIONS
The analysis and the reporting of the information gathered
from these two companies would be based on certain
assumptions, which are as follows:
I. The information given by the company officials is taken as
correct at face value.
II.Same is the case with the information gathered through
the

consumer

questionnaire.

The perception

of the

consumers regarding the product regarding the product

quality, promotion and other aspects is not disclosed
8

suitably. This is also to a great extent the basis of any

conclusion.
III. The

information

from

the

secondary

sources

is

accepted to be correct and authentic.

DABUR INDIA LTD.

COMPANY INFORMATION
The company, Dabur India Limited, was started in 1884 by
Dr. SK Burman as a small mail order business for Ayurvedic
medicines, Pudin Hara was the first medicine to be mail
ordered. Over the years the company passed down amongst
the descendents of Dr. SK Burman and remained a closely
held family business. This remained true till November 2,
1998. That day the 114 yr. old Dabur India reinvested itself.
Breaking over a century of tradition, executive powers of
running the company were handed over to an outsider
appointed as CEO Mr. Neenu Khanna.
Dabur at this particular instance is going through a period of
transition. This transformation is going to result in the
emergence of the largest Indian fast moving consumer
goods Company. The company, which has always shown a
signs of a visionary had set its rights on becoming the
countrys largest homegrown FMCG Company. The company
realized that to be the industry leader, it needs to be the
best in all areas and have to be benchmarked with the best
10

industry practices. As such the company appointed McKinsey

and Co. In April, 1997 to look into the health of the
company and to come up with suggestions which will help
turn Dabur into one of the largest fast moving consumer
goods company of the country. McKinsey & Co. has
identified

the

areas

of

improvement

and

suggested

initiatives required in them.

The company has decided to leave the day to day
management in the hands of professionals. The promoters
(the Burman family) will withdraw themselves from the
routine functions and will concentrate on giving strategic
direction to the company. The major step in this direction is
the decision to appoint a CEO to head the company
management. All business units heads and functional heads
will

report

to

the

CEO.

The

existing

and

proposed

organization structure of the company as follows:

ORGANISATION STRUCTURE (EXISTING)
CHAIRMAN

Managing Director

Managing

V.C. Burman

director
11

G.C. Burman

Sales & Marketing

Operations

Health care family

Personnel

product Ayurvedic

HR

spl.

Assurance

Foods

and

cosmetics.

and

quality

purchase
packaging
development
diversification

Pharmaceuticals

Director

Director

Oncology R&D IT,

Veterinary

Overseas

Bulk

Natural

operations

Drug

Chemicals

and

Gums

Finance
Exports
Corporate
Communic
ation

12

ORGANISATION STRUCTURE (PROPOSED)

Board of Directors

Management
Committee

CEO

BUSINESS

UNITS

FUNCTIONAL

HEADS

HEADS

Health care

Operations

Personal Care

supply Chain

Ayurvedic Spl.

Purchase

Ayurvedic Veterinary

IT

Pharmaceutical

HR

Oncology

Packaging Dev.

Food

R&D
Quality Assurance
Finance & Accounts
Corporate Comm.

13

Dabur India Limited

SBUs
Health Care
Personal Care
Foods
Global Oncology
Ayurvedic Specialties

Dabur Group Cos.

Dabur India Limited
Dabur Finance Ltd.
Dabur Nepal Pvt. Ltd.
Dabur Egypt Ltd.
Dabur Overseas Ltd.

14

Dabur International Ltd.

Joint Venture
Coufiteria

de

General

India Ltd.
Dabon International
Excelcia Foods Ltd.

15

The biggest Indian FMCG Company, Dabur India Ltd., is

poised to become the true Indian multinational. The
company today is a multi-location enterprise employing a
dedicated task force of over 5000 people. Dabur has 12
manufacturing plants in India, Nepal and Egypt. Dabur also
has a manufacturing license in Middle East. It has a
transnational network of 19 offices servicing both sales and
marketing offices have been set up in Dabur, New York,
London, Moscow and its products are now available in over
fifty countries.
Besides this Dabur has collaborated with leaders in their
fields to set up joint ventures in India. The joint ventures
with Agrolimen of Spain, General De

Confiteria

India

Limited, manufacturer confectioneries Dabur International

Limited,

the

joint

ventures

with

Bongrain

of

France

manufactures specialty cheese. Dabur has collaborated with

Osem Israel to manufacturer bakery specialties and other
food products under the name of Excelcia Food Pvt. Ltd.

16

Dabur Exports,

Dabur products have found appreciation

across the globe, in a market that spans the seven

continents:
Middle East, East and West Europe, Russia and CIS, Central
and South America, USA and Canada, South East
Asia (Japan, Malaysia, Singapore, Thailand), North Africa,
Bangladesh & Sri Lanka.

Dabur Overseas Offices: London, Moscow & Kathmandu.

Dabur

Representatives

Production

Base

Overseas:

Overseas:

United

Dubai,
Kingdom

Kenya
(Work

in

progress), Egypt, Nepal & UAE (franchisee under technology

transfer agreement).

Activities
Dabur products span the seven continents and over 50
countries. Though Dabur starting its exports way back in the
early 1900s, it gathered momentum in the seventies with
the Middle East market. Presently, Dabur Amla Hair Oil is
17

not only the largest hair oil brand, it has also helped in
making

Dabur

household

brand

in

that

region.

Yet another major market for Dabur is Europe. With

increasing awareness about the natural goodness of herbal
products, the demand for Dabur products has seen a steady
increase in the last one decade. Dabur set up its office and
warehouse in UK to service this burgeoning market. Apart
from this, Africa, USA, Russia and the Far East also offer
tremendous potential.

Dabur Egypt Limited is a subsidiary of Dabur and was set up

to manufacture and market Dabur products in Egypt and
other parts of Africa. Dabur also has a franchisee for
manufacturing its products in the Middle East. Dabur Nepal
Private Limited is yet another subsidiary that has done
exceedingly well since its inception. Today, the company is
one

of the largest

exporters of

Nepal. Dabur

Nepal

manufactures an astounding variety of Dabur products like

Fruit Juices, Tooth powders, Digestives, Hair Oils and Honey.
In fact, Dabur Nepal is the only manufacturing base for Real
18

Fruit Juices. It has also set up a greenhouse for developing

saplings of medicinal plants. The company has set up an
apiculture centre to develop Honeybee Products in Nepal for
exports.
Each division at Dabur functions as a SBU (Strategic
Business Unit) where the head is responsible for the cost
and revenue and ultimately the profit of the unit. The
various companies of the Dabur group are as below.

The turnover of Dabur India Ltd., which accounts for 80% of

the groups total turnover has steadily grown between 199293 and 1996-97 by 25-26%. The turnover which in 1993-94
a mere 61602 lakhs rose to 81136 lakhs in 1997-98.
As per McKinseys suggestions several changes are being
brought in the company. The changed focus is not only on
strategic front but also on operational issues.
Induction of more professionals
streamlining of supply chain
Setting up a centralized material procurement cell and
19

 Updating its management process will take Dabur to a

new

era

of

faster

growth.

From

closely

held

conservative company, Dabur India Ltd. Is all set to

become a modern FMCG company not shy of taking the
competition head-on. As it enters a new millenium, Dabur
has set itself a new mission. The mission is to offer
superior quality nature based products, that offer value
for money and contribute in improving the quality of
consumers lifestyle in the areas of personal care, health
care and processing foods. As such the mission statement
of the country is as follows.

20

MISSION:
To fully export our core competencies in the field of
Ayurvedic and Herbal products by identifying the consumer
needs and aiming for full consumer satisfaction.
Together with this the company has set itself the target of
being best in the industry and plans to achieve a turnover of
Rs. 20 million by the year 2003. There is a sense of urgency
in all actions which suggests a new dynamism. The company
is at present bringing in major changes which have
remarkably altered their marketing mix strategies. All of
them have been discussed in the following pages.

21

PRODUCT
PRODUCT RANGE: Till a year and halfback Dabur had over
500 products covering around 10 categories in all. These
were as below:
Healthcare Products Division: Marketed a range of
OTC Healthcare products based on Ayurveda. These
included

Herbal

immunomodulators;

digestive,

restoratives, anti-flatulence and laxatives, tonics and

mother and child care products. Some of its products had
over 65% market share in their respective categories.
Family Products Division: Markets a range of beauty is
a product, toiletries, herbal hair care products and select
goods. Hair oils, red tooth powder, honey and rosewater
are market leaders with nearly 70% market share in their
respective categories.
Ayurvedic specialties: Based on the ancient holistic
system of healthcare. This had a range of over 400
medicines. Ethically promoted these include classical

22

Ayurvedic medicines as well as products developed

through in-house R&D.
Foods Division: The of the youngest division of the
company markets a range of services, ethnic pastes and
foods. Real fruit juices gave Indian consumer for the first
time, fruit juices with nothing-artificial non-preservative,
no color and no flower added.
Cosmetics: Marketed range of beauty therapies under
the brand name Samara - Sanskrit for to meet. This
range of hair and skin care products is a fusion of
chemical Indian Ayurvedic recipes and contemporary
cosmetology.
Pharmaceutical Division: This division has a major
presence in anti cancer products and focuses on niche
markets like anti-thrombolytic, anti migraine therapy and
radio opaque rays. The product line included a range of
generic and branded formulations in wide-therapeutic
segments.

23

 Bulk

Drugs

synthetic

&

and

Chemicals:

semi

synthetic

Dabur
bulk

manufactured
pharmaceutical

substances, bulk natural compounds and intermediaries.

Isolation

of

pure

natural

compounds

and

customs

synthesis was focus areas.

Natural

Gums:

This

division

manufactured

and

processed guar gums, gum kanaya, tamarind-based gums

and psyllium husk. the division produced a range of
industrial and food grade natural gums as per exacting
customer specification.
Ayurvedic Veterinary: This division dealt exclusively in
Animal healthcare. Market safe and non-toxic herbal
veterinary products for poultry large and companion
animals. These products are manufactured according to
traditional Ayurvedic formulation.
Product for global markets:

Dabur

products are

available in over 50 countries. These include soaps and

shampoos, shaving creams, cooking oils and other items.
Company personnel in London, Dubai and Kenya service

24

the overseas markets. The products for global markets

are manufactured in Nepal, Dubai and Egypt.
The above mentioned product lines were there at Dabur till
1 years back. On the recommendation of McKinsey and
Co., Dabur India Ltd., has decided to restructure its product
portfolio. Over the years, Dabur had added many new
product, lines that gave the company a very diverse
portfolio.

Although

these

new

businesses

have

been

profitable, some are unrelated to the core competence - that

of manufacturing herbal or Ayurvedic based medicines. The
company has decided to hive off such unrelated businesses
to

separate

companies

under

the

Dabur

group.

This

rationalization of product portfolio will make the company a

true FMCG. Guided by the philosophy of Doing Fewer things
but doing them better, the company plans to concentrate
on 12-15 major brands and add a few new products under
these brands each year.
McKinsey also identified 5 pillars of strength
Product lines which will give maximum benefits to the
company. As such the revised product portfolio has 5
25

product lines. These include eight brands having market

shares of over 65%. Daburs products are positioned at the
varied socio-economic cross section, thus providing products
for literally every Indian. The major areas of companys
business activity today comprises the following:
A. Personal care products: This division accounts for 40
percent of Daburs total sales and is the largest business
in terms of turnover. Some previously marketed brands of
this category will be dropped and others will be added on.
The turnover from the division is expected it rise from the
current RS. 350 crore to about RS. 430 crore next year
growth in this division is attributed to come largely from
eight key brands. The major products lines and brands of
this division are :I. Hair care: - These include herbal, Ayurved based hair oil
and shampoos, Some major brands are Anmol coconut
oil, Amla hair oil, Vatika hair oil and shampoo.
Dabur Amla Hair Oil - This grand old product of Dabur has
a turnover in excess of RS. 100 crore (RS 1000 million).
Vatika Shampoo - Dabur introduced premium natural
26

shampoo under the brand name Vatika in 1997. Branded

Vatika Henna cream conditioning shampoo, it provides
natural conditioning and nourishment without harmful
chemicals. The shampoo has as its main ingredients Henna, Shikakai, Henna, and green almonds. The product
is confluence of the best of natural ingredients with
modern day care.
Vatika shampoo has received tremendous response since
its launch and is all set to be one of the leading brands in
Dabur range of products.
II.Oral Care: Red tooth powder and the Binaca range, which
Dabur acquired few years back.
III. Foods - including
Dabur honey
Sharbath - e Azam - a sweet rose flavored syrup.
Gulabari - rose water
kewra water

27

B.

Healthcare products - This division accounts for 36%

of the total turnover of Dabur India Ltd. This business
unit has some of the best known brands of Dabur. From
all the 16 brands of this division, only 12 will be in the
limelight; two new brands will be added to the
portfolio. This division is also the oldest division as
Pudin Hara was one of the three original formulations
marketed by Dr. S.K. Burman, major product lines are

I. Mother & child care - this include

Janam Gaunt
All Tail
Gripe Water
II.Digestives - Hingoli, Pudin Hara, Hajmola Tablets and
Hajmola Candy.
Dabur is the largest digestive brand in India. Its Hajmola
brand which has both plain and candy variations as well as
Pudin Hara and Hingoli have a strong Ayurvedic essence to
them.

The

Hajmola

candy

has

tamarind

pulp,

which

stimulates the digestive glands to secrete more digestive

28

juices. Pudin Hara is claimedly a natural stomach remedy,

free of side effects, while Hingoli has added its asafetida
blend to the after meal digestive market. Together, the three
brands hold a major chunk of the herbal digestive market of
which Dabur has an overwhelming chunk, thanks to its
Ayurvedic competence.
III. Herbal Tonics - including Chyawanprash and Restora.
While Restora brand helps in restoring as well as building
up the digestive system of the body, Dabur Chyawanprash
is a herbal tonic for general well being.
A herbal immunomodulator, Dabur Chyawanprash not only
builds

immunity

against

cold

and

infections

but

also

improves the blood supply to a persons lungs thus providing

beneficial for smokes and asthmatic patients.
Dabur Chyawanprash is one of the leading brands in Daburs
product portfolio. Introduced in late sixties in tin packs, the
brands has come a long way to be the market leader with
market share above 70%. Dabur Chyawanprash is available
in two variants - Ashtavarg and special. It is the third brand
after Dabur Lal Dant Manjan and Dabur Amla hair oil to
29

reach the coveted mark of RS. 100 crores in terms of

turnover in last financial year. The product is exported to
more than 25 countries worldwide.
C-

Ayurvedic Specialties: This is a 60 crore division

which grew by 20 per cent last year. This division includes

ethically produced traditional Ayurvedic medicines sold
ethically through Ayurvedic practitioners. It has a range of
over 400 generic and proprietary Ayurvedic medicines in its
portfolio. These product are divided in 16 categories.
This year the strategy of Dabur, regarding this product
range is to pick on 7 promising products of its portfolio of
401, and focus on their growth. But this will be more of a
test market lab. The major product lines are:
I. Asav - Arishta
II.Ras Rasayana
3. Medicated Oils
4. Churnas
V. Proprietary Medicines

30

D.

Foods & Cosmetic: This is the youngest business unit

of Dabur. It handles a range of ethnic Indian food
products and a range of 33 skin care and Hair Care
products sold under the brand name Samara. Major
product lines are

I. Real Fruit Juices.

II.Home made Ethnic cloaking pastes and sauces.
III. Capsico chilli sauces.
IV.

Nutrasalt low sodium salt.

V. Samara

beauty

therapies

which

includes

of

skin

nourishers and toners. Moisturizers and sun protectors,

cleansers, face masks hair oils and vitalizers, hair wash
and cleansers.
Daburs Homemade brand of ethnic pastes (ginger, garlic,
onion, & green chilli) which was launched just last year has
a turnover of 3.5 crore and has successfully made a place in
todays urban homes. Dabur has identified this brand as one
of the pillars for growth over the next millennium. The
brand, which was brought into the market after much
31

research on the psychographic profile of todays urban

women, has been well received by its target segment.
Dabur already has a well-etched out strategy for its foods
division. Over the next three years, Dabur will spend close
to Rs. 60 crore in advertising in foods, besides and
additional capital investment of Rs. 20 crore. On the anvil:
some more pastes and a range of other culinary products.
E.

Oncology: The last product line, which has been

recognized, as the pillar of growth for the company is that of

oncological products. This business of Dabur has a huge
future potential in India and abroad.
Dabur is the only company in India to manufacture anticancer drugs, all a result of the efforts at Dabur Research
Foundation. This product line at present has a range of 10
products.
Major products are intanel (paelitanel) and Eotel (Docetanel)
- both derived from Asian Yew Tree. Dabur is the only
second company in the world to manufacture these drugs.
DRF

developed

the

unique

Eco-friendly

process

for

extraction of these drugs from leaves of the tree.

32

Besides

the

above

product

lines,

Dabur

is

also

concentrating on few other businesses.

Dabur has diversified in confectioneries and foods in
collaboration with leading international companies. Daburs
joint venture with Agrolimen of Spain is manufacturing
Bubble gums under the brand name of Boomer and candies
by the name of Bonkers. Excelcia Foods Pvt. Ltd., Daburs
joint venture with Osem of Israel has stated marketing
cream filled crisps under the brand name of Creamwich.
Some new products are ready to be introduced in the
market shortly. Bongrain of France, one of the worlds
biggest cheese companies, is the partner with Dabur for
another JV set up for manufacture and sale of specialty
cheese and other dairy products.
Major factories of Dabur are located at Shahibabad, Baddi
(H.P)Maksi
(Bengal).

(KP),
Besides

Daburgram
this

(Bihar)

Dabur

also

and

Nasndrapur

has

3rd

party

manufacturing for some of its products.

33

Research and Development

Research and Development of the company continues to
support the companys business by developing innovative
products and process to cater to consumer needs and
preferences. Research and Development activities in health
care and other products were aimed at developing value
added

products, delivering consumer perceptible and

demonstrable benefits. A range of new generation products

with

improved

financial

and

sensing

properties

was

developed. A new formulation for their protective drugs has

been developed which has shown efficacies against hepatitis
virus A, C & E. several new products in the form of ethnic
paste have been developed. New variants of fruit juice
namely tomato and mixed juice have been developed. A
new

low

sodium

salt

combination

which

has

been

recommended as a cooking salt for health conscious people

has been developed.
All this has been a result of the efforts of Dabur Research
Foundation. DRF, an independent organization, which has
over 125 scientists working full time on developing and
34

scientific validation of products through clinical trails. DRF is

a independent profit center of Dabur and is another major
strength of Dabur.
The Research and Development center has successfully

completed a project on Ayurveda on CD-ROM. This is a

comprehensive multimedia CD which gives information of

Ayurveda, Ayurvedic herbs and products, philosophy,

history, expert system related to Doshas, guidance to daily

healthy living styles in a very user friendly interactive way.

Dabur Research Foundation (DRF), incorporated in 1979,

is a premier research organization recognized by

Department of Scientific and Industrial Research,

35

Government of India. Situated at Sahibabad, DRF is today a

known name for its pathbreaking research in the field of

healthcare and personal care.

The Foundation is at the forefront of oncology research, and

is in the process of developing many new molecules to fight

this dreaded disease. In fact, DRF was the first organization

in the world to develop a process for extraction of paclitaxel,

a drug for cancer, without harming the source tree. The

process is now followed worldwide.

Herbal health care is an area where Dabur Research

Foundation has made immense contribution by doing

36

research and development work using modern

pharmaceutical protocols. The foundation has been doing

clinical trials on traditional herbal drugs to validate the

claims made in age-old scriptures of Ayurveda. The

foundation has also done the standardization of around 200

herbal ingredients using marker compounds.

DRF has also developed some of the well-known personal

care products like Vatika Hair Oil and Shampoo, Special

Hair Oil, Samara range of herbal skin and hair care

products.

37

DRFs R&D thrust is towards the development of new

formulations with improved levels of efficacy and safety.

To become the leading research organization of the

country, developing safe, effective, consumer friendly
health care products.

Expansion/Modernization/Diversification
A new manufacturing unit with high degree of automation
came into operation in Baddi (HP) during 1998 to produce
Daburs well known brands Chyawanprash, Janma Ghunti
Ayurvedic

oils

underwriting

and

assured

Asav-Arishtas.
quality

of

This,
the

apart

products,

from
has

substantially reduced per unit energy consumption and

improved yields. To complete the expansion plans at Baddi
for

the

branded

products,

modern

unit

has

been

constructed to produce a range of softgel products. The

environment control system at this plant and GMP standards
are world class. Honey grading facilities at Baddi have been
38

modernized as a strategic initiative to deliver the goodness

of honey to the consumer.
The bulk pharmaceutical compounds manufacturing facilities
at Kalyani (WB) became fully operational during 1998 under
review for producing oncology and non-oncology products
for both national and international market.
The fruit and fruit processing facility at Katni and Sahibabad
have been further modernized to allow high volume hygienic
process of natural materials. This process allows mechanical
handling throughout the process using equipment used in
the best European factories.
A

modern

air-conditioned

packing

line

has

been

commissioned at Sahibabad for Daburs hommade brands of

ethnic pastes and lime juices. A new state of the art plant
for

manufacturing

of

hair

oils

at

Sahibabad

started

commercial production during the year 1997-98.

A new corporate office at Sahibabad is at an advance stage
of finalization and will be operational by the end of this
financial year. A new PET project to manufacture PET bottles
is being set up at Sahibabad. These bottles will be used for
39

packing of hair oils. The project is likely to commence its

commercial production during the current year.

40

PRODUCT PLACEMENT STRATEGY

Distribution is said to be one of the major strengths of the
company. Dabur India Ltd. has a transnational network of
more than 5500 distributors. 21 sales office and 19 branch
offices

service

these.

This

strong

network

ensures

availability of Dabur products in more the 1,300,000 retail

outlets in India. The products from its Health care products
division are alone available in 4,50,000 outlets, which range
from grocery stores to chemists to confections. Company
people directly cover these outlets. One of the product
-Hajmola candy is available in 1,25,000 outlets which
include

paan

shops,

roadside

kiosks

and

also

large

department shops besides the smaller general merchants.

The distribution set up for Dabur is as follows:

Factory - Dabur

41

Branch
Warehouse or C
& F agent

Stockist

Wholesaler
Retailer

Consumer

Thus it can be seen that Dabur has a significant coverage of

the market. Based on this the product placement should be
one of Daburs greatest strength. But unfortunately there
had been some loopholes.
Firstly there were shortcoming in supply chain management
- from the buying of raw material to the selling of finished
goods to the retailers. For instance demand forecasting was
done on a annual basis. Feedback from the companys sales
42

department would be discussed with its marketing cell and

the branch heads would request for fresh stocks based on
estimates, which were, part statistical and part out of gut
feel.

This, at times, led to huge inventory pile-ups. The

forecasts were made on a historical basis on statistics

available. There forecasts were many-a-times inadequate
and often lead to stock out or inventory pile ups.
Second problem was with logistics and procedures. A branch
took six days to process an order. It then took almost the
same number of days to obtain the goods from its godowns.
Very often, the godowns did not have the right stock since
the goods used to be sent by truck, and the truckers wanted
full truck loads before they started rolling, at times the
goods would be at the truckers godowns for a week.
Daburs system of accepting payments from its stockists was
also very elaborate with vouchers etc. This delayed its
payment cycle and also affected the cash flows for the
company.
Dabur realized that there is something wrong in its supply
chain-from buying of raw materials to the selling of the
43

finished goods to the retailer. For a growing FMCG, this was

the most critical aspect of business as it has 3 major
benefits.
One, have the right stock, at the right place at the right
time.
Two, keep inventories down.
Third, do all this with lower operational costs.
It was with the intention of fixing its internal processes that
Dabur hired Mckinsey and Company in 1997. McKinsey
accordingly has given suggestions to Dabur to improve its
supply chain and procurement processes. Firstly Dabur has
shed the process of making annual forecasts and is fast
moving towards a mode of rolling three monthly forecasts,
where the projections for one month are fixed. This
forecasting model is based on the current market needs
rather than historical performance of the product and hence
chances of error have been reduced. Moreover, unlike in the
past, when forecasting was brand specific now forecasting is
done on the basis of stock keeping units e.g., If earlier the
off-take of a certain volume of Daburs Chyawanprash was
44

predicted, the forecast now has to include specifics based on

the three different sizes of the products.
Based on the 3 month rolling fore model, which accurately
predicts how much the companys factory should produce,
how goods should more from factories to warehouses to the
branches.

This

replenishment

model

works

on

the

fundamental principal that inventory should be avoided at all

costs.
Dabur has also tried to reduce its inventory level, which had
earlier resulted into high working capital requirements. The
company has been successful in these aspect brands to
better systems and information technology, and the finished
goods inventory is down to 40 days from 52 days.
Besides

all

the

above

measures

of

supply

chain

improvement, the company has kicked off other initiatives

like improving the collections from its dealers. Unlike earlier,
when Dabur used a complicated system of invoices to
recover dues, the company now insists its dealers to pay by
checks. Simultaneously, it is hot on what is called Planned
Journey Period planning

- in other words, route planning

45

for

its

trucks.

Dabur

will

now

plan

delivery

along

geographical routes. The companys sales personnel are

encourages collecting orders from stockists along preselected routes and Dabur sends suppliers along these
routes. These days, Dabur even pay its truckers 5% over its
earlier rates so that they carry only the companys goods
and

therefore

reduce

idle

time

in

wailing

for

whole

truckloads.
Also on the procurements side, a central procurement
planing cell has been created comprising of six category
managers to keep takes on the organization of raw
materials, packing materials and outsourcing of certain
products.

PRICING STRATEGY
Pricing is undoubtedly one of the most important decision
areas of marketing. Price and sales volume together decide
the revenue of any business. As the sales volume in itself is
dependent in price. Pricing really becomes the key to the
46

revenue of the business such is the case with Dabur. Though

some of the products of Dabur have been leading brands in
their segments over the years, still others are upcoming
brands trying to make their pressure.
Dabur as a brand name is well reputed and readily accepted
in the market. The main strength of Daburs products
besides their quality is the brand name. This gives to the
company, opportunity to fix the price at a level, which gives
suitable profits. Major factors affecting Daburs pricing policy
are:
I. Corporate and Marketing objectives: Whether the
product is marketed with the initial objectives of capturing
maximum market share or earning maximum profits.
Daburs

product

like

Hajmola

candy,

hingoli

were

marketed with the objectives of capturing a sizeable

share of the market and so were priced towards the lower
end of the scale. This strategy has secured its purpose
because today Dabur is the market leader in digestive
candy segment.

47

II.Image sought by the firm through pricing: of through

pricing, the company wants to communicate to the
consumers that the product it is marketing is for the
premium segment it will adopt a policy of high prices.
When Dabur marketed Vatika shampoo the product was
meant for the middle classes and was moderately priced.
But when Dabur honeys and Real fruit juices were
marketed, they were targeted at the premium segment
and were relatively high priced.
III. Costs of manufacturing & Marketing: Sometimes
the costs that a company incurs in manufacturing and
marketing a product also get reflected in the price. Four
years ago, when Dabur launched Vatika Hair oil, it was
the first coconut oil to have other ingredients beneficial
for hair. A lot of research work had done into it and to
have

the

product

readily

accepted

it

was

heavily

advertised. All this resulted in raising the MRP of the

product.
IV.

Competitors pricing policy: often when in a segment

there is much competition to the reckoned with, the

48

prices of the competitors for similar products have to be

kept in mind before deciding on the price for a product. In
such category fall the Dabur Amla hair oil, Anmol coconut
oil and Dabur Chyawanprash.
The pricing policy adopted by Dabur India limited is cost
based

pricing

where

the

total

cost

incurred

in

the

manufacturing process of a product plays a significant part

in deciding the price of the product. The approach used in
cost - based pricing, at Dabur is Mark-up pricing. The major
elements in this policy are:
Fixed Costs: These results from the expenses on men and
machinery e.g., the wages and salaries paid, the annual
changes of running a machine etc. These expenses remain
fixed with the volume of production.
Variable Costs: These expenses vary with the volume of
production. They are a result of the raw materials used, the
processes and technology employed, the sales tax or the
excise duty accused in course of production of a particular
product.

49

Mark-up: This is the margin, which is added to the abovementioned costs before arising at the price of a product.
This mark-up is what finally results into a profit for the
company. Mark-up is a percentage of the total fixed and
variable costs. Depending upon the type of product, its
saleability, the target segment, the competitors price, the
mark-up may be anything between 50-150% of the total
costs.
Since Daburs products a mostly Ayurvedic or herbal, the
cost of the raw materials constitutes the chunk of the total
costs. The costs of raw material form a part of the variable
costs and differ from the variable costs and is different from
products to product.
Most of Daburs products are affordable i.e.; they are priced
towards the lower or moderately high end of the scale.
Dabur very well knows where it can change a premium and
where it cannot. This is why; Dabur has made its presence
in most of the homes of India and is steadily doing so
abroad.

50

PROMOTIONAL STRATEGY
Dabur, like an upcoming FMCG company realizes the
importance of advertising in the marketing of its product.
Like a true visionary Dabur from time to time, introduced as
well as changed some of its campaigns (for key products) to
bring them according to the changing market scenario. In all
its advertising is handled by 8 agencies.
Campaign for digestive: Hajmola, Hajmola Candy, and
Pudin Hara are done by Hindustan Thompson Associates
(HTA). Pudin Hara has been identified as one of the core
brands of Dabur by McKinsey and HTA is going to release a
new campaign for it shortly. Advertising for digestions is
through all the media - T.V, newspapers and magazines.
Campaign for Dabur Amla Hair Oil: This account has
been looked after by Ogilvy & Mather over the years. This
grand old product of Dabur has once again adorned a new
face for advertising. Known for celebrity advertising, this
product is now promoted by Karishma Kapoor. Some of the
leading ladies of the film industry who have endorsed this
product are Jayapradha, Sridevi, Juhi Chawla.
51

Campaign for Vatika hair oil & Shampoo: Advertising for

Vatika hair oil which was introduced 4 years back and Vatika
Shampoo which was introduced a year back has been looked
after by Mudra. Another product which is campaigned for by
Mudra is Red tooth powder. While Vatika hair oil and
shampoo is advertised both in print and electronic media,
advertising in print media is more common for red tooth
power. Also, for this, magazines prevalent in small cities (in
vernacular language) are more often used. This is because
the target segment of this product is in small cities and
towns.
Campaign for Dabur Chywanprash: Over the years the
advertising campaign for Dabur Chyawanprash has been
handled by Response, an advertising agency of Calcutta.
Both print and electronic media are used for campaigns for
Dabur Chywanprash.
Campaign for Dabur Honey, Real Fruit Juice: The
agency responsible for handling the campaigns for the foods
division is enterprise Venus also both print and electronic
media are used for this product range.
52

All the advertising agencies hired by Dabur are responsible

for

creative

execution

and

media

planning

for

their

advertisements. A vast number of appeals can be seen to be

there in Daburs advertisements. While Pudin Hara uses a
common man to endorse the product celebrity appeal is
used for Dabur amla hair oil. Chyawanprash, Dabur Honey,
Vatika Shampoo, and Real Fruit Juice extensive information
about the constituents used, their goodness and benefits to
human beings are clearly explained in the ads of these
products.
Still other products like Hajmola pills and candies as well as
Hingoli have a humorous aspect in their campaign to catch
the imagination of the consumers.
The reason why Dabur does not use one or two agencies to
advertise for its products is simple - it does not want any
two of its campaigns to be similar. While the agencies look
after

the

creative

aspect

and

media

planning

and

scheduling; media buying is done by the in-home agency Adbur. Media

space

(in

case

of

print

newspapers,

magazines etc.) and media time (in case of electronic media

53

like TV, Radio) are bought in a consolidated manner by this

agency. These may be prime time slots, full page or half
page bookings. Whenever a product has to be advertised,
dabur decides the time and space and the product is
advertised accordingly.
Dabur is a firm believer in advertising and benefits and as
such has a huge advertising outlay. But the manner in which
the advertising budget is appropriationed differs from
product to product and depends upon what the advertising
and ultimately the marketing objectives of the company
regarding those products are. Some of the methods used
advertising appropriationing are :
I. Historical basis: Dabur uses this method for products,
which

have

been

in

the

market

for

long

i.e.,

Chyawanprash, Amla Hair Oil. A regression analysis done

based on historical data in which a comparison of past
expenditure and sale is done. Likewise future advertising
outlays are decided.
II.Competition based: This method is used is used for
deciding

outlays

for

products

which

are

in

highly
54

competitive segment like Real Fruit Juices, digestive

candies etc. Here a advertising budget is made which is
comparable to the budgets of the competitors in that
segment.
III. Task based : According to this method, the quantum
of funds required to attain the specified advertising goals
is decided on a function-to-basis.
Besides campaigning in print and electronic media, Dabur
also has various sales promotion techniques. Most of them
are the POP materials like dispenses for candies etc,
danglers, stickers and so on. Also from time to time various
Dealer promotion schemes are undertaken. These schemes
are tactical in nature i.e., there is always some object to be
achieved through them which can vary from increasing the
number of dealers or giving incentives to dealers to stock
Daburs product more.
Consumer schemes are also undertaken and they are
usually need based. These schemes may proceed the
introduction of a new product, to increase the sale of a

55

product, to sponsor an event, build an image for the

company etc.
In todays changing times, communication - whether it is
internal

or

organization.

external
Dabur

forms
has

an

integral

corporate

part

of

an

communication

department, which is responsible for the Public Relations of

the company. Besides this, the company brings out Contact
a quality newsletter, which not only helps employees
communicate effectively with each other but also helps in
dissemination of news and information. It is a two-way
communication channel between employees due to its
interactive nature.

56

CONCLUSION
Being a treasure trove of rare medicinal plants and the
birthplace of three therapeutic systems, the growth of
herbal product industry in India has been remarkable.
According to a survey, the current estimate of the total
herbal market is Rs. 2500 crores which is growing at a rate
of 25 to 30% per annum. Many companies are there in this
highly competitive field. With the growing awareness and
realization

among

people

for

herbal

products,

these

companies claim to be marketing not just a product but a

whole civilisation.
While for Dabur herbal products business forms the major
activity

(Dabur

is

highly

diversified

company),

manufacturing of herbal products is the only business of

Baidyanath.
Fast Moving Consumer Goods (FMCG) industry is one of the
most competitive and fast growing industry in India. Dabur,
keeping in view the challenge of the global market,
maximizing

team

performance,

focusing

on

core

competency, changing competitive world and meeting the

57

demand

of

demanding

customers,

felt

the

need

for

appointing an international consultant to study and identify

areas of improvement in various aspects of companys
business to improve cost effectiveness and to diagnose
organizational

and

strategic

aspects.

The

company

appointed McKinsey & Co., in 1997 for devising its strategic,

organizational and operational guidelines. Based on their
finding

and

suggestions

the

company

is

poised

for

transformation. The major weaknesses of the company as

identified by McKinsey are:
Family run business lacking professional managers.
Highly diversified product portfolio with no or little
synergy.
Improper

and

unscientific

methods

of

demand

forecasting.
Poor raw material procurement planning.
Huge inventory pile up or stock outs.
Complex system of payment to dealers and stockists.

58

 Long

cash-flow

cycle

and

huge

working

capital

requirement.
Lack

of

co-ordination

between

central

supply

cell,

branches and warehouses.

Daburs brand was known but nothing much about the
company was known.
It is a positive sign that the company, based on McKinseys
recommendations, has taken the initiative to change and
alter its weak points.
Firstly Dabur has identified core areas of competence and
has decided to focus on these business to maximize growth
in the national and intentional market through effective
strategies. The company has also decided to exit from noncore areas and has already appointed consultants to hive off
these business/brands. Daburs future growth will be guided
by the theme DOING FEWER THINGS BUT DOING THEM
BETTER.
Dabur is also changing from a promoter driven company to
a professionally managed company. The company is in the
59

process of recruiting a professional CEO from outside the

company to take on the day to day responsibilities of
management.
Based on the suggestions of McKinsey, Dabur has initiated
the process of adhering to new and better systems and
styles of management. The first step in this area is to polish
up its operational methods and to give up on redundant
practices. The focus is now on supply chain management,
improving purchasing capabilities, improving distribution
efficiencies,

improving

sales

force,

marketing

inputs,

reduction in manufacturing costs and improvement in

quality, efficient utilization of corporate resources etc. Dabur
is putting up a new thrust to solve its loopholes and many of
its initiatives are commendable. Some of them are:
Undertaking a mammoth task of transforming a more
than 100-year-old company.
Appointing of an outside consultancy to look into its
problems.
Giving up the family hold on a 800 crore group.
60

 Selling out non-core business.

Introduction of a series of operational and logistical
systems into the business.
All these combined with the inherent strength Dabur haswell recognized and established brand, strong R&D backup,
right mix of advertising, promotion and product packaging,
we hitherto have a world class company. The major strength
of Dabur in this rapidly growing herbal industry is that they
were pioneers in this field. Today also, the name DABUR
is a household name and most of the consumers have
high regard for the companys products and the products are
synonymous with quality and effectively.
Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., is today at a
stage where Dabur was few years back. It is a company
whose management still lies among the family members. It
has 2 joint managing directors who look after the operations
of its 5 offices spread countrywide. It is also one of the
oldest company of Ayurvedic/herbal medicines/products. It
is the only herbal Product Company to have a range of over
700 product. But with the largest range of Ayurvedic
61

products

and

with

ages

of

business

experience,

the

company is still not at the top nor is so well rated by the

consumers. The reasons for this are not hard to find.
Baidyanath because of the low profile image it has for all
these years, is perceived to be a small and backward
company with some factory some where.
Advertising has not formed a thrust area of the marketing
strategy and hence of the correct brand or company
image has not been projected. Hence its products are at
times taken to be of inferior value and not upto the mark.
The company has not grown with the changing time and
has not adopted modern management practices in terms
of quality control, R& and operational process.
The packaging of the product as well as the quality of its
print and electronic media ads has not been improved and
this also suggests some negative connotation about the
company.
This aside, the company has some major strengths
Goodwill of the regular users of its products.
62

 Well-earned reputation for quality.

A strong market presence by retail outlets.
Outlets readily accepting to stock its products. But still
Baidyanath, if its has to survive todays cutthroat
competition, it has an uphill task of tackling the upcoming
companies like Smyle, Zandu, Yogi
Pharmacy,HimalayanDrugs etc.
Fast Moving Consumer Goods (FMCG) industry is one of the
most competitive and fast growing industry in India. Dabur,
keeping in view the challenge of global market, maximising
team performance, focussing on core competency, changing
competitive world and meeting the demands of demanding
customers, felt the need for appointing an international
consultant to study and identify areas of improvement in
various aspects of companys business. To improve cost
effectiveness and to diagnose organizational and strategic
aspects, the company appointed McKinsey & Co., in 1997 for
devising

its

strategic,

organizational

and

operational

guidelines. Based on their findings and suggestion the

company in poised for transformation. Baidyanath is today
63

at a stage where Dabur was few years back. Even with the
largest range of Ayurvedic products and with ages of
business experience, the company is still not at the top nor
is so well rated by the consumers. The reason for this are
quite obvious. Nothing much is known about the company.
Advertising has not formed the thrust area and so correct
company or brand image has not be created. Together with
this the company has not grown with modern times and has
not improved on packaging or R&D efforts.

64

RECOMMENDATIONS
DABUR INDIA LIMITED
Most of the recommendations for Dabur have been covered
by the McKinsey report. Nevertheless it would be worthwhile
to note them again.
1. If Dabur has to emerge as a true FMCG company it has to
divest its non-core businesses fast and focus only on
some core competencies. It this is done growth will follow
soon.
2. There are also changes to be brought on the operational
front. The company should hire more and more outside
professionals into both top and middle management. It
should also initiate the process of adhering to new and
better system and style of management.
3. The

demand

forecasting

has

to

charge

from

the

unscientific, incredible system of annual forecasting to the

more reliable and error free system of making quarterly
rolling forecasts.

65

4. The order processing and procurement planning for raw

materials has to improve at Dabur. If this happens then
the situation of inventory putting up or stock outs will be
minimized.
5. Many-a-times

Daburs

products

have

not

withstood

quality control tests. If Dabur has to surface as an multinational and face the world competition it will have to
follow more stringent quality control methods.
6. Also the quality of the raw materials used should be
looked into. This will also help Dabur to stand quality
control tests in the international arena.
7. Dabur has often been accused of pricing its products
arbitrarily. If the company has to grow, it has to adopt a
more scientific way of pricing an understand that today's
consumer is an intelligence one who has the freedom &
opportunity to choose.
Dabur, if it has

to emerge as a fresh Indian multinational

and a true FMCG then it has to divert from its non-core

business. It also has to introduce systems in its operational
as well as strategic fronts. It also has to have more
66

stringent quality control methods and its pricing policy

should be more scientific.
Baidyanath, if it wants to survive todays competition, then
the first thing it should do is to alter the image of the
company as well as its products. It also should include
outsiders in its business and also modern management
practices. Lastly, it should improve upon the packaging and
advertising of its products.
Most on the consumers interviewed also suggested similar
things for both the companies. Even though Dabur and
Baidyanath

were

the

most

popular

companies

with

consumers, most felt that Daburs products were highly

priced

while Baidyanath had good and reasonably priced

products but cost out to other companies on account of poor

packaging & low key advertising.

67

BIBLIOGRAPHY

1. Magazines
Business India
Businessworld

1998 Issue
22 Nov-6 Dec

2. Books
Marketing Management - by Phillip Kotler
Principles of Marketing by Phillip Kotler & Gary
Amstrong
3. Others
Annual Report of Dabur (1997-98)
Company Literature of Baidyanath
CII Library
Delhi Stock Exchange Library
Economic Times Newspaper
LIMITATIONS

68

Although it has been my endeavour to take all necessary

precautions to ensure that the information gathered is
authentic and maximum facts are presented the report has
a few handicaps.
1. Time: The nature of the report required detailed and
meticulous information gathering. In this sense time was
a limiting factor and a major constraint to accomplish the
given task. Also sometimes the executives were not
available and I had to re-schedule my appointments time
and again. This caused a lot of pilferage of time and
unnecessary of duplication of effort. Also many holidays
occurred during the preparation time of this report and
access to information was limited in this period.
2. Human Error: The feedback provided by the company
executives, consumers and others approached has been
assumed to be correct. But there might have been wrong
and biased facts given. The opinion of few cannot be
generalised in any manner. The reader has to discount
these fallacies with regard to the small scale on which it
has been prepared.
69

3. Non-cooperation:
approached

were

While
helpful

by

and

some

large
people

the
were

people
non-

cooperative. Also a lot of information was withheld due to

its sensitive nature. E.g. Baidyanath did not disclose the
sales figures.
4. Logistical Problems: One major problem that occurred
was the absence of marketing office of Baidyanath in
Delhi. Only a registered office is here and it proved quite
difficult to get information from there.
5. Cost: Baidyanath's head office in Calcutta had to be
contacted several times on fax and phone to get company
literature, product range etc. This resulted in major
expanses apart from the expenses incurred in local travel,
calls, computer work and printouts.

70

METHODOLOGY
The research design plays a pivotal role in the quality and
content of the data in making of any project report. The
type of research design chosen is seen to have a bearing on
all the aspects of report writing.
The research design undertaken for the study was an
exploratory one. The reasons for using an exploratory
research method was to obtain qualitative data and also
since the nature of study is as such that it required the
exploration of various aspects within and outside the
company. This method also gave the officials interviewed
the

utmost

freedom

in

responding

and

was

highly

contributory in getting incisive information.

In order to carry out a well researched analysis efforts were
taken

to

collect

enough

information

about

both

the

companies. For this purpose various primary and secondary

sources were used. For collecting primary information
(regarding the company as well as consumer's attitudes)
company executives and 25 consumers were approached.
Information was gathered through the questionnaire method
71

as well as by interview method. Interview method was used

whenever any reluctance was shown by the respondent for
filling

up

the

questionnaire.

Mostly

for

the

company

executives, interview method was used. This method helped

in obtaining in depth knowledge and facts and whatever
doubts, if ever, surfaced were cleared at the very moment.
Some of the questions asked are:
What is the product range, under what brand name are
they marketed
What are the quality standards maintained
How s demand estimated and sales forecasted
Where are factories located
Major R&D efforts
Strength over competitors
What are the channels of distribution - who are the
intermediaries involved.
No outlets

72

 How are inventory levels maintained and warehousing

done.
What is the pricing policy and main constituents of price
Advertising budget, allocation and programming
Types of sales promotion effort undertaken
Publicity and PR work done by the company
In order to gauge the consumer's attitude towards herbal
product and about the products of Dabur and Baidyanath in
particular

another

questionnaire

was

used.

This

questionnaire has 10 close-ended questions. In all 25

consumers were approached and their responses taken.
These responses were later analysed and were of colossal
help in coming to various conclusions for the report. Each
question asked to the consumer and some logic behind it.
The questions and their logic are as below:
1. Do you use Herbal products/
If No, given a chance would you?

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This question helped in knowing the percentage of people

using or favouring herbal products.
2. Herbal products are better than synthetic ones?
3. If Yes, then why?

If No, then why? (Please tick)

- No side effects

- Ineffective

- Affective

- Short term remedy

- Long term remedy

Both

the

above

- Dicey constituents
questionnaires

help

in

gauging

the

perception of people regarding herbal products, the utility or

strength over synthetic products.
4. What kind of herbal products you use?
(a) Medicine

(b) Cosmetic

(c) Others (Pl.

specify______)
5. What portion of your total consumption of the above is
formed by herbal products?
The two above questions helped in knowing the growing
prevalence of herbal products.

74

6. Which two companies first come in your mind when your

talk of herbal products (medicines and cosmetics)?
7. Rate the following companies engaged in herbal product
business in terms of your preference
Medicine

Cosmetics

Dabur

Biotique

Baidyanath

Shahnaz

Zandu

Dabur

Hamdard

Ayur

Question nos. 6&7 helped in knowing the attitude of the

consumers regarding different companies.
8. Among Dabur and Baidyanath which one is better? Why
(Pl. specify).
- Genuine products
- Value for money/reasonably priced
- Effective
- Safe
9. List 2 product of the above mentioned company liked by
you/used by you the most.
1. ..

2. .
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Question 8&9 helped in knowing the consumers attitude

specifically for Dabur or Baidyanath. It gave an idea why
one company was preferred over the other and which
products were mostly favoured.
10. (Ref. Quest. No. 8) What steps should the other
company take to improve its position? (Please tick)
- Better product range
- Better packaging
- Better advertising
- Improve quality
- Better availability
The last question helped in knowing the loopholes which
existed for the company (not preferred) and the steps which
could be taken to improve its image and standing in the
market.
Both the questionnaires formed the right tool to except the
required

information

from

the

respondents.

Once

the

information was collected the next step was to filter out the
data and to present in the most appealing manner.

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Various secondary sources were also used to gather data as

these

provided

an

objective

basis

of

getting

useful

information. Following are the main sources used in the

project.
Business magazines
Delhi stock exchange library
CII library
Annual reports
These secondary sources gave some information which
helped in better understanding of the functioning of the
companies.
This project report covers the upcoming segment of the
herbal

product

industry.

This

industry

has

special

relevance for India, since it derives its roots from the

ancient system of Indian medicine - Ayurveda. Therefore in
course of this project report, in order to facilitate better
understanding of the whole scenario a brief introduction to
the system of Ayurved has been given. This is followed by
"Case for Herbal products". Stating why people are for and
77

against herbal products and finally and overview of the

whole herbal product industry is presented. Also before
coming to the marketing strategies of Dabur and Baidyanath
a brief write up about marketing process and the growing
relevance of marketing for India has been given.

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