Marketing Dairy Product

Dabur Honey

16^th 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 3^rd 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

25^th 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 :

·         

3^rd 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.

08^th 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 

12^th 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 Dabur products (Dabur Amla, Chyawanprash,vatika,Honey,fem,hajmola,)

                                                                      

Product Line Sugar,Sweetner, Honey

                                                                       

Product type Dabur Honey

Item 20gm,50gm,100gm250gm,400gm,500gm&1kg

Ref: http://www.scribd.com/doc/44779165/Price-List

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.

13^th 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

http://www.dabur.com/Annual-Reports-2013-14

17^th August 2014

Place:

This involves channels coverage locations inventory transport

MANUACTURING UNITS OF DABUR:

·          

http://www.dabur.com/About%20Dabur-Dabur%20Manufacturing%20Facilities%20in%20India

Office

Corporate Office
Kaushambi
Ghaziabad - 201010
(Uttar Pradesh)

Factory

Baddi – Amla/Honey Unit

Jammu Unit I , II & III

Dabur Nepal Nursery

Birganj Office

Kathmandu Office

Overseas Offices/Subsidiaries

·         Dabur International Limited 

·         Dabur Egypt Limited

·         Asian Consumer Care

·         African Consumer Care Limited 

·         London, United Kingdom
Dabur International Ltd

·         United States
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.

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