Marketing
Dairy Product
Dabur
Honey
16th
July 2014
INTRODUCTION:
Dabur honey is the product of Dabur India Ltd. The company has a history of
125 years in Indian market since 1884, it’s a Kolkata based family run
business, the pioneer of the company is Dr
S K Burman . Dabur is the 3rd largest FMGC company in India
referring to the annual report of Dabur 2011-2013 and dabur
Dabur honey was initially considered as pharma
product and used only for the medicinal purposes, and this was the biggest
challenge for the company and realised that it is because of this reason the
honey dint have great demand in Indian market this was before 1980’s and the competitors
of those time used fancy packing and pricing strategy which was trouble to the company and this is
when in the year 1991 national advertising was made and the brand was placed on
the purity platform and this was the right strategy used to capture customers
in Indian market
MANAGEMENT & OWNERSHIP STRUCTURE
Board of Directors
Dabur has an
illustrious Board of Directors who are committed to take the company onto newer
levels of human endeavour in the service of mankind. The Board comprises of:
Chairman
Dr. Anand Burman
Vice-Chairman
Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang, Mr. Sunil Duggal,
Mr.Pradeep Burman
Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
Maharaja Gaj Singh Mr. P N Vijay Mr.
R C Bhargava Dr. S. Narayan
The C.E.O
Sunil Duggal
(Chief Executive Officer)
Dabur India Limited
25th July 2014
Customer
value and benefit-
This
Ayurvedic industry is very complex industries with a manufacturing process,
which is sensitive and requires expert supervision as Dabur Honey enjoy good
brand loyalty.
The survival of the company over years is an add on
trust and dependability of the customer towards the product and the biggest
challenge to the company to maintain the image and brand loyalty in the market.
The rising awareness on health and fitness promotes the use of honey over sugar
The problems faced by the product are :
· ---No varieties can be provided in the
product
· --- Honey cannot be consumed directly
· --- Always have to be promoted with other
complimentary products
· ---Many products comes with the honey
flavour reducing the chance of additional honey while consuming
· ---Packaging should be attractive as well
as easy to handle
The customers have to be motivated to buy this product
as their is no direct consumption and it always associated with other food
products.
The value for money is also a problem because pricing down will spoil the brand
image and the trust of the product
The competitors use this to their advantage by using
region names to build the trust factor among the customers such as Kashmir honey,
Coorg honey etc and price them much cheaper compared to Dabur honey and attract
customers.
31st July 2014
Buying
behaviour and decision-making process:
The customers compares on the value given by that
particular customer over other similar product
To understand the people buying behaviour of honey
you have to segregate the customers based on the place and buying behaviour of
the country
The countries which are fast moving such as Japan,
China are other nations you have look into their consumer pattern as people are
busy most of the time the packaging of the product has to be big and the
product should be advertised as the healthy product and can b consumed raw
without any perpration, well this may not working in countries like India as
people buying behaviour is different and they wish to buy grocery once in a
monthn or once in 15 days as a result small quantity packing are prefred over
bigger once
And when it comes to region base the nature of the
product have to be shown according to the region when it comes to metropolitan
countries when honey is shown as a healthy and can go along with and complimentary foods will
work effectively where as in the places where woman are not much employed and
are usually house wives the health benefits of the honey will play an important
role when compared to other features and attracting children ill also be an
effective move
When the product is consumed for the first time the
first thing to worry will be the consumption pattern of the product as it will
be the kind of product which should be consumed with another item and you can
pitch on the brand name and loyalty
The customer will also think about its usage which
is the products perish ability and the health benefits of the honey
Myth that even sweetness in honey is bad for
diabetic patient
Product lifecycle and Industry Lifecycle
The product life cycle has
4 stages, shown diagrammatically in the figure below :
·
3rd august 2014
The Dabur honey product is in its maturity stage as
it is a well-established brand and product
No much big players in the fileld until recent times
currently Himalyas are trying to introduce the Honey
Constant check on market behaviour towards the
product and consumption behaviour is highly recommended,
Recent change in the logo of the company to showcase
the freshness of the product
Introduction of new packaging such as squeezers to
ensure freshness, purity, quality and untouched
procedure to ensure purity was another great action taken by the company to
keep customers hold on to band loyalty
and trust.
08th august 2014
Marketing
Mix:
One of the major
criteria in managing program is deciding
how to integrate the components of the mix. Product, distribution, price, and
promotion strategies are shaped into a coordinated plan of action. Each
component helps to influence buyers in their positioning of products. If the
activities of these mix components are not coordinated, the actions may
conflict and resources may be wasted.
Marketing Mix consist of 4 P’s which are Product,
Place, Promotion and Price which are the four basic
12th August 2014
Product:
Factor involves products variety, quality, design,
feature, brand name packing, sizes warranties and returns
In Dabur honey product there is no variety as it is
naturally produced and any addition of flavour will lose its originality
Before Dabur honey used to come in glass bottles
later for the consumer convenience we presently have plastic bottles and which
are easy to use
Product
Strategy
·
Dabur honey is frequently purchased good
and consumed within one or few uses and hence its non-durable Convenience goods
under product differentiation
Product Hierarchy
Need Family/Produt Family
Food Products
|
Product Class
|
Product Line
Sugar,Sweetner, Honey
|
|
Dabur Honey
|
Item
|
Core
benefit and Basic product for Dabur honey core benefit will
be healthy food product
Expected
Product Dabur honey is the natural substitute of sugar
and can give healthy benefit by having Honey with lime and luke warm water
Augmented
Product Pitchco bottle are introduced for kids to use
Potential
Product Continues Champaign and brand Ambassador Amithab
Batchan and brand itself it’s the are potential product for Dabur honey.
13th August 2014
Pricing:
“Price is not the number given on tag it can be seen
in many forms and performs many functions price may also have many components”
the product Dabur honey do not have any component as it’s a non-durable product
it’s price cannot be bought down as the
quality of the product will be questioned the brand name is the driving force
of the product and hence that’s the reason for its survival in the market for
so long and branding makes dabur honey to stand apart from all the other
products of its category.
Dabur honey falls into price quality inference as
it’s a consumable product and the TG being health conscious people pricing down
will effect the quality setting a Price
1. Selecting
the pricing Objective: As the Dabur honey is a market leader it cannot concentrate on Maximum market share, maximum
market skimming as innovation is not a part of the product as it’s a natural product.
Instead it should concentrate or focus towards product quality leadership.
2. Determining
demand : to determine its price elasticity Surveys, and statistical analysis is
the preferred modes compared to other modes.
The dabur honey is not completely
inelastic but its price sensitive to an extend as there is always presence of
local competitors
The
annual report of Dabur honey
17th August 2014
Place:
This involves channels coverage locations inventory
transport
MANUACTURING
UNITS OF DABUR:
 |
·
Office
Corporate
Office
Kaushambi
Ghaziabad - 201010
(Uttar Pradesh)
Kaushambi
Ghaziabad - 201010
(Uttar Pradesh)
Baddi
– Amla/Honey Unit
Jammu
Unit I , II & III
Dabur
Nepal Nursery
Birganj
Office
Kathmandu
Office
·
Dabur International Limited
·
Dabur Egypt Limited
·
Asian Consumer Care
·
African Consumer Care Limited
·
London, United Kingdom
Dabur International Ltd
Dabur International Ltd
·
United States
Dabur International
Dabur International
·
Dabur Nepal Private Limited
The distribution channel for dabur
honey is roughly like
The dabur company have subsidiaries and 6 major
manufacturing plants with the help of distributers and the subsidiaries they
are able to cover majority of parts and they are market leaders with 50% market
share
Promotion:
Once the product has
been manufactured, priced rightly and is distributed, the next task of the
marketer is to inform potential customer about the product and persuade them to
buy the same. The promotion element of marketing mix is concerned with activities
that are undertaken to communicate with both customers and participants in the
channel of distribution such that sales goals are realized. There are different
promotional activities like-: Advertising, Sales promotion, trade promotion,
personal selling etc. but one of the most convenient and effective one that
most of the industries uses is the Advertising and Sales Promotion.
Advertising:
Dabur has created the huge brand image and a
vast product following by associating mega-names like Amitabh Bachchan, Rani
Mukhurjee, Vivek Oberoi, Mandira Bedi etc. Dabur invested Rs. 150 crore just on
the advertising ofDabur honey”. So far the company has been successful in this
mission as the people now know the brand and ask for its products by name
Sales
promotion: “An
activity designed to boost the sales of a product or service. It may include an
advertising campaign, increased PR activity, a free-sample campaign, offering
free gifts or trading stamps, arranging demonstrations or exhibitions, setting
up competitions with attractive prizes, temporary price reductions,
door-to-door calling, telemarketing, personal letters on other methods”.
More than any other
element of the promotional mix, sales promotion is about “action”. It is about
stimulating customers to buy a product. It is not designed to be informative –
a role which advertising is much better suited to.
Sales promotion can be directed at:-
•The ultimate consumer (a “pull
strategy” encouraging purchase)
•The distribution channel (a “push
strategy” encouraging the channels to stock the product). This is usually known
as “selling into the trade”
SALES PROMOTIONAL TOOLS OF DABUR
FOODS
·
Price promotions
·
Coupons
·
Gift with purchase
·
Competitions and prizes
·
Point-of-sale displays
·
Free samples
·
Contest /demos
·
Festival Sales
·
Retailer coupons
·
Multi-packs
·
Special price for twos
·
Allowances for additional shelf space
·
Merchandising
·
Awards & prizes
·
Sales Meetings
·
Samples/product sampling
·
Exchange Offers/buyback
·
Price / Bonus Packs
Dabur intends to
significantly accelerate profitable growth. To do this, Dabur will:
·
Focus on growing their core brands across categories, reaching out to
new geographies, within and outside India, and improve operational efficiencies
by leveraging technology.
·
Be the preferred company to meet the health and personal grooming needs
of their target consumers with safe, efficacious, natural solutions by
synthesizing our deep knowledge of ayurveda and herbs with modern science.
·
Provide the consumers with innovative products within easy reach.
·
Build a platform to enable Dabur to become a global ayurvedic leader.
·
Be a professionally managed employer of choice, attracting, developing
and retaining quality personnel.
·
Be responsible citizens with a commitment to environmental protection.
·
Provide superior returns, relative to their peer group, to the
shareholders.
Dabur
has released a compilation of honey-based recipes, titled ‘Big Bee’s Secret
Honey Recipes.’ Amitabh Bachchan, after whom the book is titled, is the brand
ambassador of Dabur Honey along with M S Dhoni.
Segmentation Target and Positioning:
Terms of STP include : market strategy; target markets;
positioning; market segmentation and target markets; market segmentation and
demographics
Segmentation
Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be:
Measurable
Accessible (can you reach them)
Profitable
Distinct from one another
The objective of segmentation is to find attractive markets. Strategies include
Break market into components
Regroup into market segments
Select which segment to target
Positioning.
Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*.
It is important to understand the levels of competition because positioning applies at all levels of competition. For example:
Product Level
Category Level
Corporate Level
Industry Level
Targeting.
What is target?. This is the real goal/objective in market that marketer want to reach.
Segmentation
Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be:
Measurable
Accessible (can you reach them)
Profitable
Distinct from one another
The objective of segmentation is to find attractive markets. Strategies include
Break market into components
Regroup into market segments
Select which segment to target
Positioning.
Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*.
It is important to understand the levels of competition because positioning applies at all levels of competition. For example:
Product Level
Category Level
Corporate Level
Industry Level
Targeting.
What is target?. This is the real goal/objective in market that marketer want to reach.
The STP for dabur honey
is as below
STP
|
|
Segment
|
People seeking sweet honey as a food
ingredient
|
Target Group
|
All age groups Lower, middle class
people
|
Positioning
|
Replacement for sugar
|
And for the repositioning of dabur product the
company changed the logo and the details of it is as follows
Branding:
Dabur
decided to revamp its brand identity. Dabur associated itself with Amitabh
Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements.
New packaging and advertising campaign saw the sales of honey grow by 8.5 per
cent in 2003-04.
this logo was changed to 
And the recent logo of dabur honey is
The year 2004-05
saw a whole new brand identity of Dabur. The old Banyan tree was replaced with
a new, fresh Banyan tree.
The logo was
changed to a tree with a younger look. The leaves suggesting growth, energy and
rejuvenation, twin colors reflecting perfect combination of stability and
freshness, the trunk represented three people raising their hands in joy, the
broad trunk symbolized stability, multiple branches were chosen to convey
growth, and warmth and energy were displayed through the soft orange colour.
‘Celebrating Life’ was chosen as a new tag that completely summarized the whole
essence.
Dabur has released a
compilation of honey-based recipes, titled ‘Big Bee’s Secret Honey Recipes.’
Amitabh Bachchan, after whom the book is titled, is the brand ambassador of
Dabur Honey along with M S Dhoni.
Analyzing Business Markets:
Consumer behaviour is
influenced by three factors- cultural (cultural,subculture,and social class)
social (reference group, family and social roles and status) and the third one
is personnel (age, stage in life cycle, lifestyle, personality and self
concept)
When it comes to the
product dabur honey the physiological process which affects the buying
behaviour of the customer is
Motivation the product its self is a
motivational product for the health conscious people
Perception is the
band loyalty and purity of the product
Learning and memory
is the use of brand ambassadors such as M S Doni and Amitabh Bachchan and the
tag line used such as Maar Dakka to
promote the product.
Holistic or Sustainable Marketing:
Traditionally market orientation (MO) focuses on micro environment and the functional management of an
organisation. However, contemporary organisations have widened their focus to
incorporate more roles, functions and emphasis on the macro environment.
Sustainable Market
Orientation (SMO) combines the principles of MO with a macro marketing systems
management approach, a stakeholder approach to integrated corporate social
responsibility and marketing strategy, and the use of the sustainability
management concept. SMO will serve to move corporate management beyond the
micro economic and functional management prescribed by MO and provide a more
comprehensive, stakeholder based approach.
DABUR’S SOCIAL INITIATIVES
Sustainable Development Society (Sundesh)
Sundesh is a non – profit organization engaged in carrying out
welfare activities with the aim of improving the quality of life of the people
in rural areas. Mr. Pradip Burman is
the Founder Chairman. Sundesh is majorly involved in Health Care, Education and
other socio economic activities.
Sundesh started with Health Care and today its activities have
diversified into various other projects like education, veterinary services and
income generation activities. These projects were implemented after the need
assessment survey of the rural community. The enthusiastic volunteers support
the society in implementing various projects in the rural areas through their
consistent efforts. Sundesh is executing various integrated rural development
projects in the villages of Ghaziabad and Gautam Budh Nagar Districts (Uttar
Pradesh) in India.
SUNDESH is associated with the following activities
·
Education
·
Health Care
·
Self Help Groups (Micro Credit Society)
·
Income Generation
