Dabur Red Toothpaste
Dabur Red Toothpaste
A Project Report
2010-2012
Submitted To: Prof Rajkumar soni Submitted by: Satyendra Singh Chouhan
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CERTIFICATE YEAR 2010-2012 This is to certify that project report on Dabur Lal Toothpaste a Consumer Prospective, Presented by Satyendra singh chouhan, (PGP) , have successfully completed the report in academic duration 2010-2012 and submitted the file with detail of the Project.
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Bhopal (MP)
DECLARATION
Year 2010-2012 I, Satyendra Singh Chouhan, hereby state that the study and work undertaken by us towards that fulfillment of the requirements of the project on Dabur Lal Toothpaste a Consumer Prospective Is our original work . The project done under the supervision and guidance of Prof Rajkumar Soni .
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Content
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1 2 3 4 9 12 16 19 21 22
Acknowledgement Executive summary Objective Company profile Financial Review STP & SWOT Analysis Questions analysis Conclusion Bibliography ANNEXURES I
Questionnaire
5 6 7 8 13 15 17 29 31 32
Acknowledgement:
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I would like to thank Prof. Rajkumar Soni For his guidance and support for the preparation of project report. I would like to thank all the retail owner and distributor who gave their valuable time and extended the full support in preparing the project report. 1. Mr. Harish churaria 9713930732 Kabir Kirana Store Shop no. 19 fine avenue 2. Mr. Amit Goyal 7566877144 Sarkar proteins Shop no. 35 fine avenue 3. Mr. Sudhir 9425608921 Balaji trader and wholesaler. Nayapura kolar road 4. Mr. Mahendra Singh Sisodia 9981124213 Sisodia Medical store Nayapura kolar road 5. Mr. Manoj Jain 9200593135 Vardhaman Kirana store Fine avenue kolar road
EXECUTIVE SUMMARY
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The project assigned to me was to study and work on the consumer behavior on Dabur Red toothpaste. The study was conducted in three phase1. 2.
After the analysis i came to the conclusion that indeed Dabur red toothpaste is a famous brand amongst the public and is popular because of price and color factor. It was indeed a great pleasure and privilege to work to understand the consumer behavior and how awareness about the oral health is effecting the purchasing decision of the consumer.
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OBJECTIVES
OBJECTIVES OF THE STUDY
1. The primary objective of the study was to learn the consumer behavior on the practical ground and find out how consumer behaves for a particular product. 2. The study was also aimed to understand the marketing strategies Dabur India ltd. 3. To understand the different segment that are present in Bhopal market.
Introduction
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Da b u r I n d ia L im i t e d ( DI L ) is t h e f o u r t h la r ge st FM CG Co m p a n y in I n d ia wit h business interests in Healthcare, Personal care and Food products. It has revenue of about US$600 Million (over Rs 2834 Crore) & Market Capitalization of overUS$2.3 Billion. Dabur India is a 126 years old company and is the world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur since its inception has focused on manufacturing and selling Ayurvedic products targeted at the mass consumer segment. There are number of personal care products, Ayurvedic tonics and oral care products which it launched between 1940 and1970 have become leading brands today. Daburs top nine brands had 65% or m o re m a rke t sh a re i n t h e i r re sp e ct i ve p ro d u ct ca t e go rie s. T h e se in c lu d e t h e health tonic Chyawanprash, Hajmola digestive tablets and candy, digestive PudinHara, Dabur Lal Dant Manjan and Dabur Amla hair oil. Dabur manufactures over450 products, covering a wide range in health and personal care. Dabur India has 14 manufacturing locationseight in India and six in contries like Nepal, Egypt UK etc. It has three Subsidiary Group companies
Dabur International, Fem Care Pharma and new U and 8 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), Weik field International (UAE) and Jaquline Inc. (USA). It has wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over2.8 million retail outlets all over India. Dabur India limited is divided into three SBUs.
1) Consumer Care Division: This SBU caters to the consumer n e e d s pertaining to Personal Care, Health Care, Home Care & Foods. The major Brands under this SBU are Dabur, Vatika, Hajmola, Real and Fem. Consumer Health Division: This SBU pertains to the Ayurvedic medicines and ayurvedic OTC. Major categories in traditional formulations include Asav Arishtas, Ras Rasayanas, Churnas, Medicated Oils.
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3) I n t e r n a t i o n a l B u s i n e s s D i v i s i o n : I t c a t e r s t o t h e h e a l t h a n d p e r s o n a l c a r e needs of international consumers in middle east, north and west Africa, EU3 and US. This division has high level of localization of manufacturing and sales & marketing.
In 2003, Dabur collaborated with Accenture so as to keep itself competitive. The need of the hour was to work smarter and faster so as to improve profitability a n d r e v e n u e g r o wt h . A c c e n t u r e a d vi s e d D a b u r t o f o c u s o n t h e f o l l o w i n g k e y areas:
[Type text] 1) Competing on core competencies, while outsourcing non-core functions totrusted thirdparty providers. Viewing information technology (IT) as a strategic asset that creates real valuesnot simply a cost to be managed. Streamlining processes wherever possible D a b u r i m p l e m e n t e d A c c e n t u r e s a d v i c e a n d w e n t a h e a d w i t h t h e f o l l o w i n g strategies in each of the following functions.
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Dabur Red Toothpaste is packed with the power of 13 active Ayurvedic ingredients like Laung Pudina & Tomar, that keep all your dental problems away. It is the firstever toothpaste which keeps all your dental problems away, thereby providing you strong teeth. Its superior formulation that has been scientifically validated has made Dabur Red Toothpaste the preferred oral care brand for millions of Indians. No wonder that Dabur Red Toothpaste has become a Rs 100 crore brand within just five years of its birth. Dabur Red Toothpaste is available in 4 SKUs: 200gm, 100gm, 50gm and 20gm.
Ingredients
1. Laung: Helps prevent toothache 2. Pudina: Helps prevent bad breath 3. Tomar: Kills harmful germs
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Dabur completed another year of strong growth, both in revenue and profits. The highlights of the Companys performance in fiscal 2010-11 on a consolidated basis are: Consolidated Sales increased to 4,109.9 crores in fiscal 2010-11 from Rs. 3,415.8crores in fiscal 2009-10 registering a growth of 20.3% Consolidated profits after tax (PAT) went up to Rs. 568.6 crores in fiscal2010-11 from Rs. 501.3 crores, going up by 13.4% Earnings per share (EPS) went up to Rs3.25 in fiscal 2010-11 from Rs. 2.89 in fiscal 2009-10 The Company has maintained a strong and consistent growth trajectory in consolidated sales during the last 10 years, with growth accelerating in the last 5 years to CAGR of18.5% (See Chart below). The Companys sales crossed the Rs. 4,000 crore mark during fiscal 2010-11. Sales growth during 2010-11 continued to be significantly volume-driven, with volumes accounting for more than three fourths of the total revenue growth. The challenging input cost environment led to calibrated price increases across categories. Oral Care The year 2010-11 marked another year of strong growth for Daburs Oral Care portfolio, a business that comprises two key product categories - Toothpaste and Toothpowder. While the toothpaste portfolio continued to outshine the industry, growing at near double the industry average, the toothpowder segment too reported moderate growth during the fiscal. The toothpaste portfolio of Dabur - yet again - was the fastest growing in the country, even in the face of stiff competition. According to AC Nielsen Retail Audit (MAT Mar 2011), Daburs toothpaste brands grew by a cumulative 18.1% as against an industry average of 10.8% and even reported a market share gain of 90 bps in one year. Dabur now enjoys market share of 14.1% of the total toothpaste category as per AC Nielsen Retail Audit (MAT Mar 2011). Dabur Red Toothpaste delivered another good performance to end the year with a strong double-digit growth and emerged as an Ayurvedic alternative. Besides introducing two new SKUs of Dabur Red Toothpaste - an Rs. 10 pack and a 300 gm value pack - aimed at different consumer class and markets, Dabur also rolled out a mega Oral Hygiene awareness programme for children that reached out to about 21 lakh school kids across the country. Under this programme, these kids were educated about the need for oral hygiene and how Red toothpaste offers complete protection from all dental problems. Strong regional focus initiatives in South India, intensive media across India and other all-India ground-level activations helped the brand grow well and gain market share. The brand ended the year with a 42 bps gain in market share to end the year with 4.1% share of the pie (as per AC Nielsen Retail Audit MAT March 2011). Backed by a strong value proposition to consumers and delivering on the key oral care benefits through natural ingredients, brand Babool continued its strong growth momentum and ended the fiscal with a market share of 8.9%. The brand was introduced in a new packaging propagating the benefits of its natural ingredients. Babool toothpaste contains extract of Babul plant. Babul bark contains natural Tannins at a level of 20-40% and is an excellent astringent. It offers effective oral care protection, mainly to inflated gums and helps to provide and maintain clean, strong and white teeth. Clinical studies clearly substantiate that the use of Babul for oral care
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makes the roots of the teeth strong from within, mainly due to the presence of tannins in Babul extract. Meswak, the third big pillar in Daburs toothpaste market strategy, was also introduced in a new packaging to build a closer association with the Dabur umbrella brand. Meswak, today the largest brand in the premium toothpaste market, is scientifically proven to reduce tartar & plaque, fight germs & bacteria to keep gums healthy, prevent tooth decay, eliminate bad breath and ensure strong teeth. In short, Meswak provides complete Oral Care, which is core to fitness and well-being. Daburs toothpowder brand Dabur Lal Dant Manjan reported a 2.1% growth after years of remaining stagnant. The demand recovery was a result of an extensive rural activation programme that sought to convert non-dentifrice users to toothpowder across Uttar Pradesh. This initiative helped Dabur Lal Dant Manjan increase its consumer franchise at a time when growing affluence in rural India had resulted in an overall shift in consumer preference from toothpowders to toothpastes. This programme covered village schools, local Haats and Melas in these states. These initiatives ensured that Dabur Lal Dant Manjan grew ahead of the category and gained 50bps in market share (AC Nielsen Volume Share for MAT March 2011).
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TRADITIONAL TRADE
In the year 2010-11, Dabur continued to strengthen its market presence through programmes targeted at key urban channels and the rural markets. Point of purchase is the most critical dimension impacting the buying decision of the consumer and appropriate interventions are crucial to generate impact amidst the clutter. Apart from investments to strengthen shelf presence, the stores were also offered merchandising solutions to enhance the effectiveness of the brand communication. Overall, merchandising investments have been tripled to deliver required impact.
RURAL MARKETS
Rural & semi-urban India contributes to about half of the business for CCD and is also the largest source of growth. The recent years have seen a steady growth in income in rural India. Thanks to the spurt in commodity prices and the employment generation schemesand fiscal sops announced by the government, the rural consumers today have more money in their pockets. During the course of the year, Dabur initiated a detailed study to understand the rural landscape and identify emerging pockets of higher growth. Comprehensive benchmarking was done on rural coverage across 8 key states - UttarPradesh, Uttaranchal, Rajasthan, Bihar, West Bengal, Maharashtra, Madhya Pradesh and Chhattisgarh. Markets were mapped integrating road networks and economic data to identify potential for coverage. The plan is to extend rural distribution reach by penetrating to villages with population of ~3000 in these states. The strategy is to improve distribution reach, customize trade promotions and provide focused servicing through a dedicated sales team exclusive to these markets. Field resources are significantly increased in high potential districts of these states to increase contact frequencies and improve coverage.
Operations
At Dabur, it is recognized operation as an important source of competitive advantage. A strong back-end support in Procurement, Manufacturing, Research & Development and Human Resource Management has been key to Daburs sturdy performance through the2010-11 fiscal. A large number of initiatives was rolled out by the Company to improve productivity through effective application of technology and advancement in manufacturing processes, besides adoption of lower cost energy options.
MANUFACTURING
In India, Dabur has 13 production facilities organized around two main factories at Baddi Cluster (Himachal Pradesh) and Pantnagar (Uttaranchal); and nine factories which are located at Sahibabad (Uttar Pradesh), Jammu, Silvassa, Nasik, Alwar, Katni, Narendrapur and Pithampur. The Foods Business is catered to by manufacturing facilities in Newai(Rajasthan) and Siliguri (West Bengal). During the 2010-11 fiscal, the Company increased capacities in toothpaste, shampoo, hair oils, Hajmola and Glucose. In addition, an increase in throughputs in our existing units enabled us to meet higher volumes with existing capacities without additional capital investment. Introduction of Automatic Tray feeding system to Poly shrink machine for Juices at our Newai unit is 12
[Type text] expected to not only enhance throughput, but also improve quality and reduce wastage. TPM initiatives at Baddi, Silvassa and Pantangar Units generated "Kaizens", which led to reduction in down time of machines. Initiatives were taken in various manufacturing units to reduce cost, reduce impact on environment, new product/pack introduction, improve safety awareness and quality improvement.
[Type text] Diluted Earnings per Share (Rs ) KEY BALANCE SHEET RATIOS Average ROCE Average RONW NET WORKING CAPITAL In days sales Net Working Capital* Days Days Sales Outstanding (DSO) Days Inventory Outstanding (DIO) 3.25 2010-11 33.2% 48.9% 2.89 2009-10 47.3% 57.3%
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Dabur Red Parent Company Category Sector Tagline/ Slogan USP Dabur Personal Care brands - Toothpastes FMCG Keep dental problems away, daant swasth life mast Gets rid of dental problems through Ayurvedic solutions STP Segment Target Group Toothpowder or toothpastes People facing dental problems Toothpaste containing Ayurvedic ingredients and effective in preventing and curing dental problems SWOT Analysis 1. Scientifically validated formulation and Ayurvedic ingredients 2. Contains ingredients trusted by Indians as home remedies for dental problems 3. Does not contain fluoride-a toxic industrial waste which most toothpastes contain 4. Reasonable price 5.Belonging to a strong family of Dabur having a name in Ayurvedic products 1.Marketing not as powerful as Colgate 2.Unusual color of the toothpaste or toothpowder
Positioning
Strength
Weakness
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3.Limited customer base 1.Expansion in markets outside India at a large level 2.Better promotion and expansion online 3.Explore rural segments 1.Price wars between competitors 2.Presence of easily available and lesser priced substitutes 3.New products from the competitors Competition 1.Colgate 2.Closeup 3.Pepsodent
Opportunity
Threats
Competitors
Analysis
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[Type text] Q6. Which tooth paste / powder you use: Colgate : 15 Pepsodent : 10 Dabur lal dant manjun : 25 Tooth powder : 05
Analysis - According to the survey it was seen that the public in the lower segment and lower middle class segment Dabur lal dant manjun is more prevalent and is more due to a habit and because of traditions.
Analysis It was found that awareness about the oral hygiene is increasing and people are
more concerned with the oral health. Use of tooth paste is increasing in compared to tooth powder and other material like babul stick charcoal powder.
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Q8. Which quality you like in dabur lal tooth paste : Flavor Color Content Price : 23 : 15 : 02 : 10
Analysis People use Dabur lal dant manjun due to habit and the taste of flavor of dabur red tooth paste. After flavor color and pricing of the Dabur are more preferred.
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Q9. Are you satisfied by lal dant manjan : Very much Satisfied Its ok Not at all : 38 : 10 : 02 : 00
Analysis People who are using the Dabur Red Tooth Paste from a very long time are addicted to it and they dont want to change their tooth paste at all .
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Q10. What changes you would like in the Dabur tooth paste : Packaging Color Price Content : 15 : 06 : 25 : 04
Analysis Pricing plays an important part in the Indian market and the consumer want more for less money. Packaging and color do play a role in the purchasing decision of the consumer but not to the extent at which the price factor plays.
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Q11. Which size of tooth paste you use regularly. 50 grms 100 grms 150 grms : 15 : 25 : 10
Analysis People buy the 100 grms tube more due to the reason that if more then one member of the family is using the tooth paste then it should last for at least a month. As tooth paste is one product which falls in the monthly purchase list of any family. And it is economical and affordable also.
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Q12. How many family members use the same brands tooth paste. Myself Two members All members :7 : 13 : 30
Analysis Usually the purchasing of daily useable items is done once in a month and due to the economical condition of the lower middle class and middle class does not permit them to buy tooth paste according to individual choice so they usually buy one tooth paste and whole family uses it.
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Q13. Where you buy your tooth paste from. Kirana shop General store Corner shop Mall : 20 : 11 : 18 : 01
Analysis It was observed that most of these people do the purchasing of the general daily
useable items from either kirana stores and from the corner shop with in the vicinity of the neighborhood, as from these shops they usually get the credit facility.
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Q14. How many tooth paste you sell monthly. 1 Box 2 Box 5 Box :1 :2 :2
Analysis During the survey five dispensing stores were also covered and it was found that wholesaler is selling around 2 to 5 boxes monthly on an average( 1 box = 12 pack of tooth paste)
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Q15. Which tooth paste you sell more. Dabur Colgate Pepsodent Others : 03 : 02 : 01 : 00
Analysis In the semi urban and suburb of the Bhopal city it was seen that there is a stiff competition amongst the Dabur , Colgate and pepsodent and other brands. Company are coming up with newer scheme to lure the retailer so that they push their product and newer advertisement to create brand awareness.
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Q16. Which quality a consumer usually look for before buying. Packaging Color Price Content : 01 : 03 : 04 : 00
Analysis According to the retailer and wholesaler the sale of any product is governed by the price and the color of packaging and product.
Q17. How many costumer ask for Dabur Lal Tooth Paste Daily. 1:2
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2510 More :1 :1 :0 :0
1 2 5 10 More
Analysis kirana shop and corner shop are usually visited by the set costumer how come there to puschase the general and usually the costumer dose not shift very often therefore the owner know how much stock they have to maintain to full fill the requirement of their costumer .
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Q18. What according to you should be changed in the Dabur tooth paste. Marketing style Advertising Segment Packaging Content : 03 : 05 : 02 : 01 : 01
Analysis - According to these seller the company should focus on the set segment and they should change the marketing style and it should come up scheme which are beneficial to the costumer and the retailer both. They also want that the advertising of dabur product should come more often in the print as well as on television as it will definitely increase the sales of the company product.
Conclusions
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It was found in the research there is a definite liking of Dabur Red Toothpaste in the suburb of Bhopal city and in the surrounding areas. It was found most of the public living in these areas are from rural background and are still following the habitual practice carry forwarded from their origin. Usually the purchasing of daily useable items is done once in a month and due to the economical condition of the lower middle class and middle class does not permit them to buy tooth paste according to individual choice so they usually buy one tooth paste and whole family uses it. In the semi urban and suburb of the Bhopal city it was seen that there is a stiff competition amongst the Dabur , Colgate and pepsodent and other brands. Companies are coming up with newer scheme to lure the retailer so that they push their product and newer advertisement to create brand awareness. kirana shop and corner shop are usually visited by the set costumer how come there to purchase the general and usually the costumer dose not shift very often as they regular costumer get credit facility with these shop, therefore the owner know how much stock they have to maintain to full fill the requirement of their costumer According to channel partners of the company the company should focus on the set segment and they should change the marketing style and it should come up scheme which are beneficial to the costumer and the retailer both. They also want that the advertising of dabur product should come more often in the print as well as on television as it will definitely increase the sales of the company product.
Bibliography
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I would like to thank Prof. Rajkumar Soni for his guidance and support during my research work. References
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1. 2. 3. 4. 5. 6.
Name . Age .. Sex . Address .. Monthly income . Which tooth paste/powder you use Colgate Pepsodent Dabur lal dant manjun Tooth powder 7. What you use for cleaning the tooth Tooth paste Tooth powder Others 8. Which quality you like in dabur lal tooth paste. Flavor Color Content Price 9. Are you satisfied by lal dant manjan Very much Satisfied Its ok Not at all 10. What changes you would like in the dabur tooth paste. Packaging Color Price Content 11. Which size of tooth paste you use regularly.
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50 grm 100 grms 150 grm How many family member use the same brand tooth paste. Myself Two members All members Where you buy your tooth paste from. Kirana shop General store Corner shop Mall How many tooth paste you sell monthly. 1 box 2 box 5 box Which tooth paste you sell more. Dabur Colgate Pepsodent Others Which quality a consumer usually look for before buying Packaging Color Price Content How many costumer ask for dabur lal tooth paste daily.(1 box = 12 packs) 1 2 5 10 More What according to you should be changed in the dabur tooth paste. Marketing style Advertising Segment Packaging Content.
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