Group11_Dabur

8/7/2019 Group11_Dabur

1/30


2/30

2

Table of Contents

Page No.

1. Introduction to FMCG Industry.. ...32. About DABUR India .33. Introduction to FNB and FBB Industry.74. Product Portfolio Analysis ...8

4.1Real4.2Nature Fresh4.3Bursst4.4Activ4.5Lemoneez4.6Commonality4.7Modified Products4.8Dropped Products

5. Competitor Analysis ...146. Primary Research Results. .167. Future outlook.19 8. Recommendations for DABUR.19

Appendix...21

References ....30


3/30

3

1. Introduction to FMCG IndustryThe Indian FMCG Industry is one of the most dynamic industries as it caters to a population of more

than one billion consumers. The market size is US$ 160 billion by value. It is growing at tremendous

rate of 13.4% on an average and the main drivers of this growth are increase in population, increase in

disposable income and changing lifestyles.

Below pie chart shows the breakup of the FMCG Industry dominated by the Food Products with over

43% contribution. Other important categories are personal care and fabric care. Many other categories

are small and offer great potential for growth. Rural India contributes around 33% to the overall

FMCG Industry. The graph below shows the variability in the Sensex and FMCG Index. There is a

high correlation between the two indexes and FMCG is a major contributor to the index.

2. About DABUR IndiaThe 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 othersand to always set new standards in corporate governance & innovation.

Dabur India Ltd is one of Indias leading FMCG Companies with Revenues of about US$750

Million (over Rs 3390 Crore) & Market Capitalisation of over US$3.5 Billion (over Rs 16,000

Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today Indias

most trusted name and the worlds 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 -

43%

22%

12%

8%

4%

4% 2%5%

Food

products

Personal

Care

Fabric care

Hair care

OTC

household

care

Baby care

Others


4/30

4

- Dabur as the master brand for natural healthcare products, Vatika for premium personal care,

Hajmola for digestives, Ral 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.

The company enjoys a market leadership in some of the product category like fruit juices, digestives

and chyawanprash and has good market share. The other segments that Dabur entered later on are

trying to find in roads to the large consumer base.


5/30

5

History of Dabur

1884: Birth of Dabur

1896: Setting up a manufacturing plant: With growing popularity of Dabur products, Dr.

Burman expands his operations by setting up a manufacturing plant for mass production offormulations

Early 1900s: Ayurvedic medicines: Dabur enters the specialised area of nature-based Ayurvedic

medicines, for which standardised drugs are not available in the market.

1920: Expand Further: Dabur expands further with new manufacturing units at Narendrapur

and Daburgram. The distribution of Dabur products spreads to other states like Bihar and the

North-East.

1936: Dabur India (Dr. S.K. Burman) Pvt. Ltd: Dabur becomes a full-fledged company - Dabur

India (Dr. S. K. Burman) Pvt. Ltd.

1986: Public Limited Company:Dabur becomes a Public Limited Company. Dabur India Ltd.

comes into being after reverse merger with Vidogum Limited.

1992: Joint venture with Agrolimen of Spain:Beginning a new chapter of strategic partnerships

with international businesses, Dabur enters into a joint venture with Agrolimen of Spain. This

new venture is to manufacture and market confectionery items in India.

1996: 3 separate divisions:For better operation and management, 3 separate divisions created

according to their product mix - Health Care Products Division, Family Products Divisionand Dabur Ayurvedic Specialties Limited.

1997: Foods Division / Project STARS:Dabur enters full-scale in the nascent processed foods

market with the creation of the Foods Division. Project STARS (Strive to Achieve Record

Successes) is initiated to give a jump-start to the Company and accelerate its growth

performance.

2003: Dabur demerges Pharma Business: Dabur India approved the demerger of its

pharmaceuticals business from the FMCG business into a separate company as part of plans

to provider greater focus to both the businesses. With this, Dabur India now largelycomprises of the FMCG business that include personal care products, healthcare products and
http://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-Historyhttp://www.dabur.com/About%20Dabur-History


6/30


7/30

7

3. Introduction to FNB and FBB IndustryThe Indian food market is approximately Rs 2,50,000 crore ($69.4 billion), of which value-added

food products comprise Rs 80,000 crore ($22.2 billion).

The segments include food processing, bakery, confectionery, dairy, meat & poultry, fruits &

vegetables, fisheries (including aquaculture), food ingredients, grocery retail, packaging, alcoholicbeverages, soft drinks and bottled drinking water, canning, fats and oils, filters and filtering materials,

flavours and flavour enhancers, nutrient additives, frozen food/refrigeration and thermo processing,

among others.

In the food processing industry it is the unorganised sector which has a major share of 42% and even

the small scale industries outperform the organised sector. The food processing however is only 9% of

the complete manufacturing industry. Out of this 40% of the food processed is meat, fish, fruits and

vegetables. Beverages account for around 20% of this food processing segment. The food industry in

India suffers from issues like poor infrastructure, storage facilities, highly unorganized market, road

side vendors and these issues need to be addressed.

The market size of the fruit based industry in India is around Rs. 2500-3000 crores. The fruit based

beverages can be divided into drinks, nectar, juices and 100% pure juices. The below table provides

the details of fruit content, sugar content, price points, brands available and the respective market

share for different kinds of fruit based beverages.

Heads Drink Nectar Juice 100% Juice

Fruit Pulp 10% 40% 85% 10%

Added Sugar Very High High Medium Nil

Costs/ L 45 75-80 70-75 85-100

Brands Frooti, Maaza Real Tropicana Real Activ

Market Share 60% 10% 15% 15%


8/30

8

There are several growth drivers for this industry which is growing the fruit juice category by almost

30%. The important drivers are increase in health consciousness among consumers, increase in

disposable incomes, and more sophisticated cocktail culture. If we see the model below we observe

that the juices are equally consolidated by large FMCG companies and rest is controlled by the

fragmented industry. New age beverages enjoy higher growth and mostly fragmented.

4. Product Portfolio Analysis

4.1 RealReal Juice is one of the most innovative and successful product category launch made by Dabur in itshistory. Before the product introduction, most Indians were used to seeing the neighbourhood juice

vendor perched on the roads with carts or selling them in tiny shops, with blends of a combination offruits of various tastes. If the vendors sanitary conditions were found to be unhygienic, then juiceswere instantly prepared within the confines of the kitchen.Fruit-based drinks in those times were full of preservatives, and were only popular in the West, likeSnapple, which were imported but not available in most stores in India. Also, the concept of sellingpackaged juices in India was relatively new as the Indian consumer has always preferred fresh juice topackaged juice. The consumers were also wary of packaged food, as they felt that it had preservativesand was therefore not fresh.

Despite the unfavourable mindset towards packaged juice, Dabur changed the way Indians perceivedfruit juices in tetra packs. It launched its own line of fruit juices in 1996 under the Real brand. The

company chose the name Real because it wanted customers to know that its juices were natural andhealthy, contained no preservatives and tasted like eating actual fruit. Over the years, it has becomethe leading packaged juice brand in India and is also one of the best selling brands of Dabur. The keydriver for the product acceptance has been its taste. The company introduced the product on theassumption that Indian consumers liked to add sugar when they squeezed their juice and hence theycatered to the customers' taste and preferences by adding sugar to their juices, which ultimately led toits success.

The organized fruit beverage market (nectars, drinks and juices combined) is around Rs 500-crore

.Fruit drink market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per

cent of the market today) has grown at a 20 per cent to 25 per cent rate. Dabur has turned fruit juices

into Rs 60-crore business has been turning on the taps in recent months and it hasnt been afraid to

innovate.

Category Growth (CAGR)

Fruit Juice 30%

Energy Drinks 45%

Alcoholic Drinks 12%


9/30


10/30

10

Variety: Real Burrst, the latest addition to Dabur's Foods portfolio, has Available in 4 exciting

flavours:

Mixed Fruit Crispy Apple Orange Bytez Mango Mania

The Non-fizzy cool flavors from Real Burrst offer the ultimate refreshment to the consumers.

SKU and Price:

SKU Price1 litre Rs. 65

200 ml Rs.15

Distribution plan:At the initial period, the product will be available in big retails chains in cities and after that, it will beavailable all over the country.

Competitor:Dabur's Real Burrst is expected to enter into direct competition with other major players like 'Maaza'and 'Frooti', Pepsi, Coca-cola, Parle.

Launched: It was launched in New Delhi, May 1st 2009. Burrst has not been advertised, only some

ground level promotions and activities have been undertaken so far, because of the seasonality and

logistical reasons.

Mission: The fruit beverages industry in India now stands at Rs 1400-1500 crores and the market hasgrown at the rate of 30% where Dabur India, through the new launch Real Burrst, is looking atestablishing a market share of 5% in next 2-3 years.

Primary focus: In-home consumption (home consumption accounts for one-third of the market)

Points of difference: Dabur has launched the drink in mixed fruit, apple, orange and mango flavours.It is a non-fizzy drink meant for all age groups. The mango variant uses Alphonso mango and theorange variant contains some pulp.

Reworks positioning: Fruit-based beverages with over 85 per cent fruit pulp are classified as fruitjuice, between 20 and 85 per cent as nectar, and less than 20 per cent as fruit drink.

However, Dabur has taken a different tack with its various beverages, said Mr Sitaram, Head ofMarketing.

This classification was more from a manufacturer point of view and consumers did not connect withthe same. So, we have reworked the positioning (active health management, nutrition) based on thespecific consumer need that each product and brand addresses, he explained.


11/30

11

4.4 Real ACTIV

Launched: 2002

USP: 0% Added Sugar, 100% taste

Target segment: conscious individuals and sports enthusiasts

Positioning: Ral Activ is a range of unsweetened fruit and vegetable juices thatcontain no added

sugar, colors or preservatives.

SKU size (price): 1 Litre (85)

Flavors: 5

ACTIV: After the launch of Real juices, Dabur wanted to cater the Niche segment with a different

range of juices and so ACTIV was introduced in the Indian market. Real Activ is targeted at health

conscious young executives for whom fitness is a way of life. These are made in the DABURs

manufacturing plant at NEPAL.

Activ is a great combination of Antioxidant, cooler and fruit- vegetable delight. Ral Activ Juice is

deliciously tasty & gives the natural goodness of fruits & vegetables. Refreshing and invigorating or

relaxing and calming, fruit and vegetable juices provide a concentrated boost of benefits for today's

eat-on-the-run lifestyle. They are full of nutrients; easy to consume and save a lot of time, yet theyhave the goodness of whole fruits & vegetables . These juices are naturally fat free, energy and

contain significant amounts of vitamins and minerals.

In fact, today they are seen as 'vitamin and mineral cocktails'. Taking a glass of fruit and vegetable

juice on a daily basis is an easy way to ensure that the body gets vital vitamins and minerals. The

best part is they fit in to all sorts of lifestyle. Fruit juices are an excellent complement to whole

fruits as a part of healthy eating plan.


12/30

12

4.5 Lemoneez

USP: Offers consistent lemon taste and flavour, anytime of the year

Positioning: Dabur positions it as a recipe item which can be used for instead of lemon as it has a

consistent taste and flavour. This can be used to make mocktails at home. Dabur is trying to break the

habit of Indian households of using fresh lemons.

SKU size: 250 ml (Juice of 25 lemons approximately)

Advantages:

Do away with hassles of cutting and squeezing lemons.

Provides consistent lemon taste and flavour, anytime of the year

Price:

Overseas Online: US $18 (100 ml)

India: Rs. 24 (250 ml)

Sourcing:

Lemons concentrate is sourced from blending companies in Europe like Dholer, Euro Citrus and

Wild. This reduces the variability in the prices of sugar and reduces the costs to Rs. 0.50 per lemon.

Strategic Changes:

In July 2003, Dabur shifted the manufacturing unit of Lemoneez to Nepal to benefit from lower

import duties. The earlier manufacturing base was Sahibabad in Uttar Pradesh. It was the secondbrand after REAL to benefit from importing the lemon concentrate into Nepal and thus reducing the

price from Rs. 30 to Rs. 24 for 250 ml. Import duties and freight charges is only 7% compared to 38%

of producing it in India.

Usage:

Prepare Nimbu Pani

Prepare Lemon Tea

Add delicious lemon tang to Salads and IndianCurries

Marinate Meat

Dabur provides several recipes of mocktails for the Indian consumer on its website:

Apple water, Berry Bonanza, Ice Tea, Lemon Chiller, Lemon Squash, Pineapple Panga, Lemoneez

Fruit Cocktail

Dabur also other recipes for main courses where Lemoneez could be used: Brinjals and Rice

Egyptian style, Chicken Sate, Curry of Tofu Mushrooms and Vegetables, Fish Amritsari, Palak and

Green Pea Pulaov, Arvi aur Rajma Ki Khasta Tikki, Sprout Masala


13/30

13

4.6 CommonalityDabur started with the Real juices in this segment but has moved up and down the price points to cater

to the target population covering the entire spectrum. For the price-conscious consumers but still want

the goodness of a fruit-based beverage, it has recently launched Real Burrst which is priced below the

Real juices. For the health-conscious consumers, Real Activ is there which has no sugar. Real Juices

basically cater to those consumers who are particular about their daily supplements of nutrients and

demand taste too. Lemoneez is a little different product in this segment as its positioning is based

more on convenience and it is not a ready to drink products unlike other FBB products from Dabur.

Dabur has mainly segmented the market based on the health and price factors. It could start looking at

other products which could be placed in segments like water, sports drink and the like which have

been covered in detail in the recommendation section.

4.7 Modified ProductsCoolers

In 2007, Dabur Twist was launched which combined the taste of mango along with that of orange,apple and pineapple. Coolers had been launched two years ago as a fruit-based beverage which came

in aam-panna, pomegranate and watermelon variants. Since, both coolers and twist were quite closely

related to each other as products, Dabur decided to merge Coolers into the Twist umbrella of

products in 2007.

4.8 Dropped Products

Real Junior

Real Junior was created to segment the market within the fruit juice category as a mass market

approach rather than on the basis of individual preferences. Dabur chose to drop Real Junior as there

were problems galore with this product. The problems were:

It was promoted as a fruit juice rich in calcium, which did not sell as a fruit juice, is after all, afruit juice, and branding it calcium-rich did not gel well

It was made available in tetra-packs of 125 ml for Rs 10, because that was the quantity Daburconceived children would be able to finish in one go. So, although the pack size was smaller,

packaging costs did not come down and therefore a lower pricing did not bring in revenues.

Other fruit-juices were also available for the same price and pack size, so people did not findmuch of a reason to switch to Real Junior.

Real School Packs

Withdrawal of Real Junior also led to the withdrawal of Real School Packs as it failed to resonate with

the target segment.


14/30

14

5. Competitor AnalysisThe packaged fruit & juices market has become competitive like any other segment. Apart from thevarious local brands, the fruit juice market is shared by brands from Dabur (Coolers, Real), PepsiCo(Tropicana, Tropics, and Slice) Parle Agro (Appy Fizz, Frooti), Coca Cola (Maaza), Mother Diary(Safal), Godrej (Xs range) & Leh Berry. Although there are some other brands also prevalent like

Kissan(HUL), Del Monte,but these have only a small percentage share in the market. Real brand fromdabur is the market leader in this category with around 50% market share followed by Tropicana with33% percent market share (Please refer to chart below).

Source: Company, ICICIdirect.com Research

Real has three brands currently available in the market Real Nature fresh, Real Activ and RealBrust.All three varieties are positioned differently to cater to different segments. Real Brust is newlylaunched product in the juice drink category.

Brand growth in FY09

Real Fruit juices grew by 21% with gains in market share. Activ Fruit Juices reported 6%growth.(Ref: www. Dabur .com)With sales growing by 15.8% from Rs 236.8 crore FY08 to Rs 274.4 crore FY09, the foods division,which once operated as a wholly owned subsidiary, has been merged back into the parent companyand integrated with the CCD. With a 13.3% revenue contribution to the CCD, the foods division

primarily consists of fruit beverages under the Real & Activ brands and culinary additives under theHommade brand. Da burs Real and Activ, which registered a 14.9% growth in FY09, dominate thejuices market with a market share of around 50%. By aligning its Activ range of juices in the healthand wellness category via the no sugar campaigns and the emergence of health and lifestyleconcerns coupled with the launch of new variants (Real Burrst) will enable DIL to capitalize on thegrowing fruit juice market.

Head to Head

It is very clear that Tropicana is the biggest competitor of Real in the Indian market . Real has still

maintained its leader position in the beverage segment due to its , brand image,first mover advantage

0%

10%

20%

30%

40%

50%

60%

Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09

Real(Dabur)

Tropicana(pepsi)

Others

Market share of Dabur vis a vis its competitors


15/30

15

and innovative products. Tropicana is leveraging on its brand image and huge sourcing capabilities

and is trying to get Reals market share.

Head to head Real and Tropicana are compared in tables below:

Real TropicanaCompany Dabur Pepsi

Market share 57% 30%

leveraging characteristic Ayurvedic Foundation International Image

Advantage 1)First mover2) innovation in product

Core competency in beverageindustry

core competencies 1) trusted name in natural healthover 100 years2) Healthy product mix in nature

and healthy products

1) Superior technologicalKnowhow2) Huge sourcing capabilities

3) Extensive distribution

Packaging 1) Spin cap tetra pack 1) smart sport symbol forhealthier lifestyle

Promotion Way of lifestyle Youthfulness, freshness

CCaapabilities 1) Upstream linkages in the supplychain2)extensive distribution

Setting up strategicmanufacturing bases

The segmentation strategy followed by Real and Tropicana is described in the table below:

Segmentation

Real Tropicana

Geographical

Location Metros/mini metros Metros/mini metros

Demographic

Age Mothers/children 6-14/young executives Bachelors/newly married

Income High disposable income High disposable income

Education Educated working professionals Educated working professionals

social Class SEC-A/SEC-B SEC-A/SEC-B

Psychographic

Lifestyle

Personality Sociability Self Confidence

Behavior

Knowledge of theproduct

Aware Aware


16/30

16

Product wise Neck to neck

Varieties Real Nature Fresh Tropicana

Positioning(tagline) Made from best quality fruits, Real does not

have artificial flavors and preservatives, andoffer your kids not just great taste, but alsoFRUIT POWE("My real Fruit Power")

Premium juice

Flavors 14 Fruit flavors mango, apple, guava.Pineapple, mixed fruit

SKU's(price) 1 Litr(75), 200ml(15) 1 LTR(75)200ml(15)

Varieties REAL ACTIV Tropicana 100%

Positioning(tagline) Deliciously tasty & gives the naturalgoodness of fruits & vegetables withoutthe burden of added sugar(Discover good health naturally)

Critical constituent of the BreakfastMenu(Lets Make Breakfast 100%)

Flavors Orange, apple, Orange carrot, Mixedfruit Beetroot carrot

Apple, guava. Pineapple, mixedfruit, Grape

SKU's(price) 1 Litr(85), 200ml 200ml (20),1 LTR(85)

Varieties REAL BURST Tropicana Twister

Positioning(tagline) Light & refreshing fruitbeverage(Lightness of Fruits and Burstof refreshments)

Drink brand that brings the goodness of fruitjuice, made from best of fruits from around theworld.(Toot padega Fruit)

Flavors Mixed Fruit, Crispy Apple,Orange Bytez and MangoMania

Orange Thrill & Apple Burst

SKU's(price) 1litre(65), 200ml(15) 200ml(12),350ml(22),1.2L (70)

6. Primary Research Results

We conducted a survey among the second year students in S P Jain Institute of Management and

Research Mumbai to analyze the consumer behaviour about juices and water. The results show the

analysis from 36 respondents.


17/30

17

Juices

Consumers are becoming more and more health conscious. Around two thirds of the respondents

prefer juices to soft drinks in order to quench their thirst. These are the choices made without

considering water as an option. When asked about the companys whose product they would prefer

around 61% of the respondents preferred Dabur to Pepsi and Coke.

When asked to name their favourite brand around 61% said Real followed by Tropicana and Frooti.

86% of the respondents would like to have juices in tetra packs as compared to glass and plastics.

The consumers would prefer to have juices in 300ml packs as that of the soft drinks. The price they

would like to pay for 1000ml juice would be around Rs. 40.

When asked to rank the factors which they

look while purchasing juices aesthetics came

out to be the top most criteria. This was

followed by promotional offers, size of the

SKUs, price of juices and then the brand.

66%

33% Juices

Soft Drinks

8%

61%

19%

11%Coke

Dabur

Pepsi

No brand

8%

3%

61%

28%Frooti

Maaza

Real

Tropicana

3%

11%

86%

Glass

Plastic

Tetrapack

8%

25%

8%

39%

19%

1000 ml

500 ml

400 ml

300 ml

200 ml

36%

11%

31%

22%< = 40

45

50

> = 55


18/30

18

Water

When asked about the preference of company for water Pepsi stood out with 36% as compared to

Parle and Coke. However as a brand Parles Bisleri outscored Pepsis Acquafinaand Cokes Kinley.

The respondents would prefer to pay only Rs. 10 even if it is branded. The preferred SKU size is1000ml as compared to SKUs of smaller sizes.

Respondents would prefer to drink water in plastic cases as compared to glass and plastic.

17%

36%19%

28%

Parle

Pepsi

Coke

No brand

19%

75%

6%

Aquafina

Bisleri

Kinley

8%

39%42%

11% < = 8

10

12

> = 15

50%44%

6%

1000 ml

500 ml

200 ml

6%

72%

22%Glass

Plastic

Tetrapack


19/30

19

7. Future Outlook

From the analysis of Daburs product portfolio and the primary research conducted, following are the

pointers towards the future of this product category in the food industry:

Increasing Health Consciousness

Consumers are becoming more and more health conscious as revealed from the primary research and

the buying patterns of the consumers. The industry is shifting towards food products with low calories

and low sugar. Large companies like Coke and Pepsi have come out with drinks having zero sugar

and very less calories. People who are suffering from obesity and diabetes are now trying these new

products.

Emerging energy drinks market

A new segment for energy drinks is now growing at a faster rate than the other segments. Consumers

are now taking part in a lot of sports activities and need a drink to regain the energy levels after such a

work out. Red Bull and other drinks in this category are doing really well. These drinks are also very

common for the sports personalities and thus have a huge market.

Westernized Water

The east is adopting almost all the habits of the west like in food, fashion or lifestyle. This has also led

to the adoption of clean, pure, hygienic branded water. With a few companies launching mineral

water, the new segment has emerged favoring blended water. Now apart from drinking water to

quench the thirst consumers also want to intake minerals and other nutrients.

Increasing Environment Sensitiveness

Consumers are becoming more aware of the environment around them and their responsibilities

towards it. So many of the consumers now buy products in tetra packs or similar packaging.

Increasing need for freshness

Consumers are now more demanding for the need of freshness in the products. They are now more

wary about the fruit juices with regard to the packaging, manufacturing and expiry dates and storage

conditions.

8. Recommendations for DABUR

As the beverage industry looks to the future, India is the country that offers the greatest potential,

even more so than China. Right now, India accounts for approximately 10% of global beverage

consumption. That makes beverage consumption in India the third largest in the world, after the

United States and China. As reported by Dabur India Marketing Head (Foods Division) K. K.

Chutani, Indian fruit beverages market is valued around Rs 1,100- crore is growing at 30 percent

annually. However the entire fruit drink business of Dabur is around Rs 300 crore and is growing at a

rate of 23 per cent. For maintaining this growth and increasing we suggest the following

recommendations to Dabur:


20/30

20

i. The awareness level of Real Activ and Real Burst is low currently. Hence we recommend thatDabur should increase the awareness of its new variants i.e. Real Activ and Real Burst. As the

consciousness towards the health is increasing among the Indian customers Real Activ can

really be a successful brand if it achieves the right awareness level.

ii. Lemoneez till now is only a 1 crore brand after almost 10 years of its launch. The awarenesslevel of this brand is lowest of the entire Dabur beverage portfolio. Moreover it is also facing

stiff competition from Nimbooz (PepsiCo) & LMN (Parle). Dabur has not actively pursued

this brand and has been late to react. Lately Dabur has promoted the usage of Lemoneez by

launching several alternate usages like Mocktails & Lemoneez Recipes to make it popular

among the households. Dabur has also increased spend on advertising of Lemoneez. We

recommend that Dabur should either launch Lemoneez as a Non Fizz Lemon drink in the Non

Fizz category where currently the competition are Parle LMN and Nibooz of Pepsi co or push

the current Lemoneez offering in the restaurants and food chains as a lemen extract. Lime

soda currently is a popular drink option in most of the restaurant, fast food chains and dhabas

across India

iii. We also feel that Dabur can increase its product portfolio by Energy/Health drink. In 2006-07, the size of this market was around Rs 1,500 crore. The market is dominated byGlaxoSmithkline Consumer Healthcare Ltds (GSKCH) brands such as Horlicks, Boost, Viva

and Maltova. Together, these brands account for more than a 70% share of the malted food

drinks (MFD) market. The rest is divided between Heinz India Ltds Complan, Cadbury India

Ltds Bournvita and Nestle India Ltds Milo . Currently the market in of energy/health drinks

in India is in nascent stage. Dabur is a trusted name in Indian families and Health drink by

Dabur will gain easy acceptance among the Indian masses. Also Dabur can leverage its

ayurvedic image to develop more acceptance of its health drink. This will also add newproduct catering to a totally new segment in Daburs portfolio.

iv. Dabur can also enter in Nutrient Rich flavored water market. There is not much competitionin this market for Dabur. Flavored water is a beverage consisting of water with added natural

or artificial flavors, herbs, and sweeteners, and is usually lower in calories than non-diet soft

drinks. In many cases, flavored waters add vitamins and minerals to their beverages through

the incorporation of fruits in order to better market their products. Pepsi and Coca-Cola are

two well known brand owners of flavored water. It is mainly famous in American Market.

This is a new market can Dabur can take the first movers advantage and make its mark in this

category.

v. We recommend Dabur to launch Real Drink Mix like Tang. Tang brand is owned by KraftFoods. After the takeover over of Cadbury, Kraft is taking the advantage of Cadburys

distribution system to sell its products in India by sharing trucks and store contacts. Tang is a

powdered soft drink; the makers call it a blend of nutrition with convenience, offering

families around the globe, a great-tasting beverage. They claim it provides a nutritious and

real fruit-flavored drink. It is available in different types of packaging. We recommend

Dabur to launch its Real brand in powdered form to offer Indian customers more convenience

and variety.


21/30

21

Appendix

Appendix 1: Daburs footprints

International manufacturing plant location


22/30

22

Appendix 2: Vision and Mission of the Company

VISIONS

"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 aredetermined 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.

TEAMWORK

We work together on the principle of mutual trust & transparency in a boundary-less organisation. Weare 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.


23/30

23

Appendix 3: Accolations

Accolades 2010-11

Dabur Amla Hair Oil & Ral fruit juices voted as India's Most Loved FMCG Brands withhighest top-of-the-mind recall in their respective categories Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company

Accolades 2009-10

Dabur bags Top Marketer Award for 2009 in Consumer Goods market Dabur voted by consumers as fourth Most Liked Health Brand in India' Ral wins Trusted Brand Gold Award 2009

Accolades 2008-09

Dabur is NDTV Profit Business Leader in FMCG - Personal Care Category Dabur India Ltd ranked amongst India's Most Innovative Companies Ral awarded Readers Digest Gold Trusted Brand Award 2008

Accolades 2007-08

Dabur ranked Number Two Newsmaker in the FMCG industry in 2007 Ral bags the Reader's Digest Trusted Brand Gold Award

Accolades 2006-07

Dabur India amongst Top 3 Most Respected FMCG Companies by Business World Ral bags Reader's Digest Trusted Brand Gold Award


24/30

24

Appendix 4: Distribution Route


25/30

25

Appendix 5: Questionnaire


26/30

26


27/30

27


28/30

28


29/30

29


30/30

References1. http://www.telegraphindia.com/1050208/asp/jobs/story_4296832.asp 2. http://arrowpoint.blog.co.uk/2007/12/01/fruit_juice_industry_in_india~3379228/ 3. http://www.dabur.com/en/investors1/confcalltra/DILTranscriptInvConfCall2979.pdf 4. http://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beverage 5. http://www.blonnet.com/2003/07/03/stories/2003070302110600.htm 6. http://www.icicidirect.com/mailimages/ICICIdirect_DaburIndia_Coverage.pdf7. http://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-

2161174

8. http://www.dabur.com/default.aspx for all product portfolio
http://www.telegraphindia.com/1050208/asp/jobs/story_4296832.asphttp://www.telegraphindia.com/1050208/asp/jobs/story_4296832.asphttp://arrowpoint.blog.co.uk/2007/12/01/fruit_juice_industry_in_india~3379228/http://arrowpoint.blog.co.uk/2007/12/01/fruit_juice_industry_in_india~3379228/http://www.dabur.com/en/investors1/confcalltra/DILTranscriptInvConfCall2979.pdfhttp://www.dabur.com/en/investors1/confcalltra/DILTranscriptInvConfCall2979.pdfhttp://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beveragehttp://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beveragehttp://www.blonnet.com/2003/07/03/stories/2003070302110600.htmhttp://www.blonnet.com/2003/07/03/stories/2003070302110600.htmhttp://www.icicidirect.com/mailimages/ICICIdirect_DaburIndia_Coverage.pdfhttp://www.icicidirect.com/mailimages/ICICIdirect_DaburIndia_Coverage.pdfhttp://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-2161174http://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-2161174http://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-2161174http://www.dabur.com/default.aspxhttp://www.dabur.com/default.aspxhttp://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-2161174http://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-2161174http://www.icicidirect.com/mailimages/ICICIdirect_DaburIndia_Coverage.pdfhttp://www.blonnet.com/2003/07/03/stories/2003070302110600.htmhttp://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beveragehttp://www.dabur.com/en/investors1/confcalltra/DILTranscriptInvConfCall2979.pdfhttp://arrowpoint.blog.co.uk/2007/12/01/fruit_juice_industry_in_india~3379228/http://www.telegraphindia.com/1050208/asp/jobs/story_4296832.asp

Date post:	08-Apr-2018
Category:	Documents
Upload:	bhawna-jain
View:	214 times
Download:	0 times

Group11_Dabur

Documents