Customer Satisfaction on Dabur India Limited

Executive Summery 

Sales are the lifeblood of a business, without sales there would no business in the first place; therefore it is very important that if a business to succeed, it should have a Marketing Activities strategy in mind. The primary objective of Marketing Activities is to improve a company’s sales by predicting and modifying target customer; purchasing behavior and patterns. Marketing Activities is very important as it not only help to boost sales but it also helps a business to draw new customers while at the same time refining older ones. There are a variety of strategies that a business can have to increase their sales, however it is important that we first understand what a Marketing Activities strategy actually is and why it is so important.

Businesses can target different consumers, resellers, and the company’s own sales force. Acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and   purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use Marketing Activities to change this price- by increasing the value and/or lowering the price. Compared to the other components of the marketing mix advertising, publicity, and personal selling, Marketing Activities operates on a shorter time line, uses a more rational appeal fosters an immediate sale, and contributes highly to profitability.

In determining the relative importance to place on Marketing Activates in the overall marketing mix, a small business should consider its marketing budget the product in its life cycle, the nature of competition in the market, the target of the promotion, and the nature of the product.  For example Direct marketing and mail marketing are particularly attractive alternatives when the marketing budget is limited. For many small businesses. Similarly, marketing is often used in the growth and maturity stages of the product life cycle to consumers and resellers to choose that product over the competition  rather than in the introduction stage, when mass advertising is required  to build awareness might be more important.

Dabur India Limited is the fourth largest FMCG company in a India with revenues of US$ 750 million (Rs-3416 core) and market capitulation of US$ 3.5 Billion (over Rs 1600 Core) Building or a legacy of quality and experience of over 125 years. Dabur operates in Key consumer product categories like. Hair care, Oral care, Health care Skin Care Home care and Food.

Amla hair oil, Vcatika hair oil. Meswak, Honey, Hajmala, Dabur Chaywanprash, Odomos, Odonil, Fem, Real juce, Shilajit Gold, Vatika Shampoo, Pudin Hara, Balam Strong, and over 300 diverses products in the FMCG.

Product performance: Health care and  Ayurveda segments, Dabur has a huge global network of suppliers and vendors, purchasing roughly 7000 items with an annual procurement bill of over Ks 500 crore the central planning and procurement Division (CPPD) is responsible for purchase operations at Dabur, acting in coordination with the production and marketing division.

In this huge operation we have maintained on environment of total transparency and better governance so that we get the best products at optimums costs.

Quality cheeks:  Strict vendor certifications guidelines to ensure quality and reliable services. Regular testing and technical analysis of commodities. Cost reductions: Better forecasting of Market trends to optimize purchase  Hedging forward markets to gain a price advantage and reduce inventories. Offer competitive rates. Follow our quality guidelines.

Have well set out distribution chair for uninterrupted supply. Safeguard against interference or blockades from competitors. Are willing to abide by contractual obligation at all times. Distribution strategy: Dabur follows the intensive distribution strategy inverse of exclusive distribution in intensive distribution intensive distributing makes product available al possible retail outlets. This may near that the product is carried at a will variety of different and also competing retail institution in a given area.

Background of the Study:

This report is prepared for fulfilling the course requirement of MBA program. As the classroom discussion alone, cannot give proper picture of real business situation, there , it is as opportunity for the student know about real life situation through this program., Project program is very essential for every student, especially for the student of Business Administration, which helps them to know real existing situation. For this reason a student take project program at the last stage of the MBA degree. I have made this project report on Dabur India Limited. This report is about by “Marketing Activities- a Study on Dabur India Limited” I wanted to work on this topic because, Marketing activities are very important in business no business organization become successful one without a sound marketing activities.

Objectives of the Study:

The general objective of this study is to learn and measure the performance of marketing activities of Dabur India Limited. The specific objectives of this study are as follows:

•           To know the overall functioning of Dabur India Limited.

•           To know about the unique features associated with marketing activities.

•           To analyze the Marketing activities used by Dabur India ltd.

•           To   identify   the   problems   related   to the   marketing   activities   of Dabur India Limited.

•           To make recommendations, for   the   solution   of   the   problems   of Dabur India Limited.

Methodology:

The study require systemic procedure from the selection of the topic to final report preparation, For collecting, the data and information have been collected from primary and secondary sources in the from of qualitative and quantitative research.

Primary sources

A) From executive officer of organization,

B) Asking, the relevant people of marketing dept.

C) Performing tasks in this organization.

Secondary Sources

A) News Papers / publication

B)  Internet

C) Advertisement

D) Annual Report

Scope of the Study:

The report basically focuses on the marketing activities of Dabur India Ltd. It also assesses the performance of the marketing mix elements.

Limitations of the Study:

I have faced many categories of Limitation. Such as..

1.         The time Limitation is important factor to prepare a project report properly.

2.         Busy work schedule did not let the officers provide required information.

3.         Data is not available so it’s a major limitation.

4.         Lack of experience to prepare properly project report

5.         Lacking of diversified information in website of the Dabur India Ltd.

Historical Development of Organization:

Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the bylines of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For the past 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.

Through our comprehensive range of products, we touch the lives of ail consumers, in all age groups, across all social boundaries. And this legacy has helped us to develop a bond of trust with our consumers. That guarantees you the best in all products carrying the Dabur name.

Dabur started its marketing is Bangladesh in 1990. Started manufacturing and marketing of licensee product of Dabur. Launching of Dabur Bangladesh own brands in 1996. Commissioning of basic chemical (APIs) in 2008 Started export operation.

Vision

Dedicated to the health and well – being of every household

Core Value

Ownership:- This is our company we except personal responsibility and accountability to meet business needs

People Development:

People are our most important asset. We add value through result – driven training and we encourage and reward excellence.

Consumer Focus:

We have superior understanding of consumer needs and develop products to fulfill them better.

Team Work:-

We work together on the principle of mutual trust and transparency in a boundary less organization. We are intellectually honest in advocating proposals in clouding recognizing risks.

Innovation:-

Continuous innovation in products and processes is the basis of our success.

Integrity:-

We are committed to the achievement of business success with integrity. We are honest with consumer, with business, partners and with each other. It has a large Office, Factory, Sales team etc.

Literature Review:

Frederic M. Scherer, (2008) Dynamics and Regulation of the Asian FMCG Industry: A Critical Review, this study examines how product innovation contributes to the renewal of the firm through its dynamic and reciprocal relation with the firms competences. Field research in five high-tech firm of varying age, size and level of diversification is combined with analysis of existing theory develop the findings of the diversification is combined with analysis of existing theory develop the findings of the study. Based on the notion that new products are created by linking competences relating to technologies and customers, a typology is derived that classifies new product projects based on weather a new product can draw on existing competences, pre requires competences die firm does not yet have. Following organizational learning these options are conceptualized as exploitation andexploration. These organizational concepts are used to gain a dynamic and path-dependent view of product innovation and development, and to reveal the unique nature and challenges of different types of product innovation.

Thomas S.Robertson, Jehoshua Eliashberg and Talia Rymon, (1995), new product announcement Signals and incumbent reactions, the authors focus on NPA Signals. They develop a set of regarding incumbent’s reactions to NPA single is and test them in a field study among managers in the United States and The United Kingdom. The authors’ findings provide an amortization of the factors affecting the likelihood of competitive response to NPA signals and agency a set of managerial implications.

R Wensley, (2008), product strategic, managerial comprehension, and organizational performance, Recent comments on the national competitive model based on the links between organizational skills and value added have recognized that individual firm performance can be significantly moderated by either or. Both marketing expertise and differentiating skills within the organization with an emphasis on high level managerial capabilities. This article considers both a more detailed analysis of marketing approaches in this area and also.

Pwter Trim, [2008], A new product launch strategy (NPLS) model for pharmaceutical companies, department of management, the purpose of this paper is to make explicit positioned in the industry as sustainable competitive advantage being achieved- various regulations and cultural trial as religion.

It is clear from the research undertaken that some marketing medals are viewed as being too complex however, it is generally appreciated that marketing models can be used to interpret complex relationships that are evident in marketing system research limitations/implications.

Andreas Hinterhber, (2003) towards value-based pricing an integrative framework for decision making, Despite a recent surge of interest, the subject of pricing in general and value-based pricing in particular has received little academic investigation. Yet, pricing has a huge impact on financial results, both in absolute terms and relative to other instruments of the marketing mix. To objective of this paper is to present a comprehensive framework for pricing decisions which considers all relevant dimensions and elements for profitable and sustainable pricing decisions, the theoretical framework is illustrated by a case  useful  for  guiding   new  product  pricing   decisions   as   well   as   for implementing price-occasioning strategies for existing products. The practical application of this framework is by a case study involving the pricing decision for a major product launch at a global chemical company.

Harry Nystrom, (2003) product development strategy an integration of technology and marketing although it seems obvious that a new product development strategy must bring together marketing. Although it seems and R&D strategies, the conceptual  development of marketing and  R&D  strategies  has  in  relative isolation. More than ten years ago when Professor Harry Nystrom began his LO]]I program on product development in Swedish firms.

He realized that the isolation wasn’t a point of view. He began to construct a conceptual framework for analyzing product development strategies that incorporated many more variables than had traditionally been considered the latest set offers in the research program is four pulp and papa” companies. They KB mature process industries, quite unlike the earlier study firms, yet many of the same propositions fro, the earlier researches still hold. In this article, professor Nystrom presents the most recent version of his framework to heap managers develop an integrated product development strategy.

All A Yassine Luke a Wissmann, (2008). The implications of product architecture on the firm product architectures defines the functional requirements within a product system, maps these requirement to physical elements or subsystems, and describes the interaction between these Wacoal elements. In spite of the diverse literature on the topic, it is clear that the implications on their tow not been clearly outlined. In attempt to fill this void this paper offers a framework for the vast amount of existing literature relevant of product architecture and summarizes the managerial implications. The proposed framework classifies the impact of product architecture on the firm along tow dimensions. “Fact of the firm” “what is managed” the facet dimension indicates which system element a piece of research considers and the second dimension categorizes how value is created by the facet. The key domains are surrounding product architecture.

Francis M. UIgado Moonkyu Lee (2008) the Korean versus American marketplace; Consumer reactions to foreign products, the Republic of Korea recently became one of the  member countries  Organization of Economic I Cooperation and development (OECD). Such developed ratio requires Korea to open its consumer goods and financial markets. As a more open Korean becomes increasingly attractive to foreign manufacturers and investors, it is critical for Marketers to understand how Koreans consumers perceive and evaluate imported goods. The examines how Koreans in comparison with Americans react to foreign made products. Kush’s of the study show that both Korean and US consumers, in general, relied heavily on intrinsic attributes of products as me basis for their evaluations of the product quality. Koreans considered country of manufacture information as equally important. However, when they determined their purchase intentions, neither Koreans nor valued country labels of the products; they again used product attribute information. The implications of the results of foreign marketers in Korea are discussed.

George G. Panigyrakis, (1999), Brand managers in the pharmaceutical industry are they any is paper examine the brand managers’ characteristics and their role in the pharmaceutical industry. It identifies the similarities and differences of that role with the role of brand managers working in the fast-moving consumer goods industry. In particular, this study investigates brand managers. Duties, by analyzing their perceived involvement in activities relevant 60 market analysis, planning, implementation, evaluation and training and strategic and practical decision making. The results proved that brand managers working in various sectors have a co-coordinating role and that their involvement in the strategic decision of their brands is still Ltd. They aiso indicated dissimilarity in the perceived job responsibilities between the two industries.

Meredith B. Rosenthal! Ernst R.Berndt, Julie M. Donohue, Arnold M. Epstein, and Richard G frank, (2008) demand effects of recent changes in prescription drug promotion the release of clarified Food and Drug Administration (FDA) guidelines and independent changes in consumer behavior provide an opportunity to study the effects of Direct To- Consumer Advertising (DTCA) in the prescription drug market alongside the effects of various physician-oriented promotions. We examine the effects of DTCA and detailing for brands in five therapeutic classes of drugs, using monthly aggregate US data from August 1996 through December 1999. In terms of impact of DTCA on demand, we provide evidence on tow issues (1) do increases in DTCA increase the Market size of an entire therapeutic class? And (2) does DTCA increase within-class 22 market share of share of advertised drugs? Our findings suggest that, for these classes of drugs, DTCA has been effective primarily through increasing the size of entire class. Overall, we estimate that 13 to 22 percent of the recent growth in prescription drug spending is attributable to effects of DTCA.

Product Line:

Dabur India marketed by Health care, Hair care, oral care, Skin care, Home care & food.

Product Discretion

a. Hare Care:

1. Amla Flower magic
2. Amla hair oil
3. Badom Oil
4. Balm Double Actin
5. Lal Tail
6. Super Tanda Oil
7. Total Protect Health Shampoo
8. Vatika black Shine Shampoo
9. Vatika Conditioner
10. Vatika Dandruff Control Shampoo
11. Vatika Enriched Almond Hair Oil
12. Vatika Enriched Coconut Hair Oil.
13. Vatika Root Strengthening Shampoo
14. Vatika Smooth and Silky Shampoo

b. Oral Care:

1. Babool Tooth pest
2. Lal Dant Manjan
3. Meswak Tooth past
4. Promise Tooth past
5. Read pest

c. Home Care:

1. Odomos Green
2. Odonil

d. Food:

1. Active juice.
2. Active Sauce
3. Burrest Juice real
4. Capsico juice
5. Chyawan junior
6. Chyawan prakash
7. Chyawan prash
8. Hajmoal
9. Hajmala candy
10. Hommade
11. Glucouse-D
12. Honey
13. Honitus lozenges
14. Real juice

e. Skin Care:

1. Golabari Face Freshener
2. Golabari Moisturising cream
3. Galabari Moisturising Lotion
4. Galabari Rose water
5. Vaeda-2-in-1 moisturiser
6. Vaeda clarifying face wash
7. Vaeda complete fairness creem
8. Vadea moisturising face wash
9. Fem

f. Health Care:

1. Active Antacid shirap
2. Active Blood purifier
3. Dazzal
4. Gripe water
5. Honitus Cough Syrap
6. Janma Ghunti
7. Lemoneez
8. Sanifresh
9. Shankha pushpi
10. Shilajit gold
11. Balm Strong
12. Pudin Hara

Marketing activities (Special promotion for Golabari).

Dabur Gulabari Hunts for Miss Fresh Face of Northeast 2010

Monday, October 04, 2010

• Winner to bag a one-year modeling contract with Dabur Gulabari
• Model hunt to be conducted across 25 colleges and educational institutions in Northeast

Guwahati, October 03, 2010: The hunt for the Fresh Face of Northeast is back. Dabur India Limited, India’s leading natural Beauty Care Company, today announced the launch of the second edition of its mega model hunt — Dabur Gulabari Miss Fresh Face of Northeast, 2010. The pageant is being organized to discover the fresh new face from Northeast, a face that embodies the values of Dabur Gulabari – soft, fresh skin that glows like a rose. The winner of the contest will bag a one-year modeling contract with Dabur Gulabari and a cash prize of Rs 50,000. The first runner up will take home a cash prize of Rs 30,000 and the second runner up will get Rs 20,000.

“Rose has been synonymous with beauty, softness and freshness. Dabur Gulabari captures the essence and goodness of roses in each of its products and is the only personal care brand in India offering the benefits of rose for ‘soft, fresh skin that glows like a rose’. The brand has always been associated with beauty and this mega model hunt is another step forward in that direction,” said Dabur India Ltd Brand Head-Gulabari, Mr. Prashant Agarwal.

The model hunt would be conducted across colleges and institutes in Northeast. This year the on ground activation is being extended to cities like Jorhat and Agartala apart from Guwahati. Registrations would open from Monday, October 4 and would close on Saturday, October 16. The shortlisted contestants would go through a city audition to be held at Guwahati and Jorhat, where from an independent jury will pick 18 finalists, who would compete for the coveted crown of ‘Dabur Gulabari Miss Fresh Face of Northeast 2010’ at the Grand Finale to be held on Wednesday, 27 October at ITA Auditorium, Machkhowa, Guwahati.

Having received an overwhelming response for Dabur Gulabari Ms. Fresh Face of Northeast 2009, Dabur Gulabari has decided to take the initiative further and make it an annual affair. Gulabari has also rolled out similar initiatives in Delhi, West Bengal, Hyderabad and Uttar Pradesh.

“This is our second initiative in Northeast after successfully hosting the maiden event last year. This initiative is also a unique way of spreading beauty awareness among the young and college-going girls of Northeast. This pageant will also offer the young girls from the city a platform to enter the world of mainstream modeling,” Mr. Prashant Agarwal added.

Dabur Gulabari skin care portfolio includes Dabur Gulabari Rose Water, Moisturizing Cold Cream, Moisturising Lotion and a Premium Face Freshener Spray. Being a natural product, the Gulabari skin care range contains Ruh Gulab (Rose oil) and a dash of Gulabari rose water for the right moisture balance & that non–oily look. Rose oil has, for long, been known for its therapeutic properties in curing dry, sensitive and aging skins. Rose oil enlivens inner beauty, helping the skin to radiate inner glow.

Offering the promise of ‘fresh, soft and rose-like glowing skin’, the Dabur Gulabari skin care range helps maintain moisture balance without leaving it oily. Besides protecting the skin from damaging elements of today’s environment and keeping it soft, the natural rose extracts in the Gulabari range also help remove dryness and dullness, giving the skin a rose-like radiance. No other brand today owns the Rose proposition, offering Dabur Gulabari the first mover advantage in this segment.

Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for 125 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India’s FMCG portfolio today includes five flagship brands with distinct brand identities — Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based beverages, and Fem for fairness bleaches & skin care

Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For the past 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.

Through our comprehensive range of products, we touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our consumers. That guarantees you the best in all products carrying the Dabur name.

New Delhi, October 4th, 2010: This festive season, gift your loved ones the Réal ‘Gift of Goodness’. Dabur India Limited, India’s leading natural healthcare company, is introducing a range of 11 special Diwali gift packs of Réal fruit juices and Réal Activ “No added Sugar” juices, offering the holistic goodness of fruits in an attractive festive package.

Dabur has introduced eleven different gift packs of Réal and Réal Activ fruit juices, priced between Rs 90 and Rs 270. Branded as ‘Gift of Goodness’, these gift packs are eloquently designed and decorated and signify the importance of gifting as a phenomenon that is so important to all Indians. The special packaging includes a ‘Réal Fruit Express’ pack with pictures of the famous Disney cartoon character Mickey Mouse and designed to resemble a metro train. Also being offered is a special ‘Celebrate an Activ Life’ suitcase pack featuring the image of the Réal Activ brand ambassador and cine star Bipasha Basu. In all, there are four special Réal Activ gift packs and seven Réal festive gift packs.

Dabur India pioneered gift packs in the fruit juices category, and its special packs have always received overwhelming response. Dabur gift packs are introduced with the sole motive of promoting exchange of healthy gifts — in essence, gifting good life to your near and dear ones. “We have traditionally seen a sharp rise in sugar intake during the Diwali season, thanks to the higher consumption of Matthias etc. With our various gift packs, we are offering consumers a chance to gift their loved ones good health this Diwali,” says Mr. Chutani.

Details of the Gift Packs
Réal has offered 7 different gift pack option to the consumers. One is a pack containing 10 units of 200 ml packs of Réal. The variants available in this pack are – 2 units of Orange juice, 3 units of mixed fruit juice, 3 units of Apple nectar and 2 units of Pineapple juice. This is priced at Rs 150. The other gift pack being offered at the price of Rs 150 is the “Bread box pack” which contains a One Liter pack of Réal Mixed fruit juice and a One liter pack of Réal Apple nectar. The Shrink Sleev gift pack priced at Rs 90 contains 6 units of 200 ml packs of Réal. The variants available in this are – 2 units each of Orange juice, Mixed Fruit juice and Apple nectar. There is also a gift option in the form of a PVC hanging bag which contains one unit each of 1 liter packs of Réal Orange juice, Réal Mixed fruit juice and Réal Apple nectar. This gift pack is priced at Rs 225. The other gift pack priced at Rs 225 contains one unit each of 1 liter packs of Réal mango nectar, Réal Litchi juice and Réal Guava nectar. The other gift pack containing a 1 liter pack of Réal Pineapple juice, Réal Orange juice and Réal Mixed fruit juice each is priced at Rs 225 also.
Réal Activ has offered 4 gift pack options to consumers. The pack designed to replicate a suit case is priced at Rs 171 and it contains a one liter pack of Réal Activ Apple juice and a one liter pack of Réal Activ Orange Carrot juice. The pack designed to replicate a large match box contains 5 units of 200 ml Réal Activ juice packs. The variants are – 2 units of Réal Activ Apple juice, one unit of Réal Activ Orange juice and 2 units of Réal Activ Orange Carrot juice. There is a gift option from Réal Activ wherein 3 units of 1 liter Réal Activ packs are packaged into a Jute Bag and is priced at Rs 270. This Jute Bag contains one unit each of a Réal Activ Apple juice, Réal Activ Orange juice and Réal Activ Orange Carrot juice. The gift pack priced at Rs 160 contains 8 units of 200 ml packs of Réal Activ. The variants made avilabe in this gift pack are – 4 units of Réal Activ Apple juice, 2 units of Réal Activ Orange juice and 2 units of Réal Activ Orange Carrot juice.
New Delhi, October 4th, 2010: This festive season, gift your loved ones the Réal ‘Gift of Goodness’. Dabur India Limited, India’s leading natural healthcare company, is introducing a range of 11 special Diwali gift packs of Réal fruit juices and Réal Activ “No added Sugar” juices, offering the holistic goodness of fruits in an attractive festive package.

Focused in Bangladesh:
But the launch of Dabur Vatika in 1995 brought about a sea change in that perception. Within six years of its launch, Vatika had become the market leader in the value-added hair oils segment. Its success pushed Dabur into the league of top FMCG product companies in India. Dabur Vatika’s success can be attributed to the company’s differentiated product offering and meticulous brand building initiatives. The company concentrated on differentiating the brand in all aspects, right from positioning to packaging. At the time of its launch, Dabur positioned Vatika as value-added hair oil that contained pure coconut oil enriched with natural ingredients such as henna, amla (gooseberry), and lemon. Till then, the hair oil market had been dominated by plain coconut oil brands with Marico’s flagship brand, Parachute, being the market leader.

Dabur Vatika, one of the youngest brands in the country (launched in 1995), has become a leading brand in the natural personal care product segment. What were the factors that enabled Vatika to become a flagship brand of Dabur in such a short span of time.

Marketing communications play an important role in building brands. Discuss the role played by marketing communications in making Dabur Vatika a successful brand.

Places:
Marketed in Overall Bangladesh. Major focus urban area like Dhaka city, Dhaka surrounding. Ctg city, Ctg surrounding. Shylet. Khulna. Rajshahi area. 80% sales are coming on urban area and 20% sales are coming rural area. Vatika Brand is focused in urban area and shampoo mini focused on rural area.

Discussion about of the Topics:

Marketing involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects marketing mix. (The other three elements are product, pricing, and place distribution.)

Promotion is generally sub-divided into two parts:

Above the line Marketing: 

Promotion in the media (e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pay. An advertising agency to place the advisement.

Below the line Marketing

Much is intended to be subtle enough for the consumer to be unaware that is taking place. E.g. sponsorship, product placement, endorsements, sales, merchandising, direct mail, personal selling, public relations, trade shows

The specification of these four variables creates a plan. It specifies how much attention to pay to each of four subcategories, and how much money to budget for each. A plan have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate in age.

Consumer Promotions

Consumers are steered toward the ultimate product users — typically individual shoppers in the local market — but the same techniques can be used to promote products sold by one business to another. In contrast, trade promotions target resellers and retailers — who carry the marketer’s product. Following are some of the techniques used in consumer-oriented sales promotions.

Price Deals a consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discounts, bonus pack dials, refunds or rebates, and. Price deals are usually intended to encourage trial use of a new product or line extension, lo recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purchase multiple units. Price deals work most effectively when price is the consumer’s foremost criterion & when brand loyalty is low.

Buyers may learn about price discounts either at the point of sale or through advertisement. At the point of sale, price reductions may be posted on the package, or in storefront windows. Many types of advertisements can be used to notify consumers of upcoming discounts, including fliers and newspaper and television ads. Price discounts are especially common in the food industry, where local supermarkets run weekly specials. Price discounts may be initiated by the manufacturer, the retailer, or the distributor. For instance, a manufacturer may “pro-price” a product and then convinces the retailer to participate in this short-term discount through extra incenties.  For price reduction strategies to be effective, they must have the support of all distributors in the channel. Existing customers perceive discounts as rewards and often re: pond by buying in larger quantities. Price discounts alone, however, usually do not induce time buyers.

Another type of price deal is the bonus pack. When a bonus pack is offered, an extra amount of the product is free when a standard size of this product is bought at the regular price. This technique is routinely used in the marketing of cleaning products, food, and health and beauty aids to introduce a new or larger size. A bonus packs rewards present users but may have little appeal to users of competitors.

A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or in combination with other products. Refunds aim to increase the quantity or frequency of purchase, to encourage customers to “load up” on the product. This strategy dampens competition by temporarily consumers out of the market, stimulates the purchase of post potable goods such as major appliances, and creates on-shelf excitement by encouraging special displays.

Coupons are legal certificates offered by manufacturers and retailers. They grant specified savings on selected products when presented for redemption at the point of purchase. Manufacturers sustain the cost of advertising and distributing their coupons, redeeming their face values, and paying retailers a handling fee. Retailers who offer double or triple the amount of the coupon should be are the extra cost. Retailers who offer their own coupons incur the total cost, including paying the face value. In this way, retail coupons are equivalent to a cents-off deal.

Contests / Sweepstakes The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner, while sweepstakes involve a random awing or chance contest that may or may not have an entry requirement. At one time, contests were more commonly used as sales promotions, mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. But the use of sweepstake as a promotional tactic has grown dramatically in recent decades, partly because of legal changes and partly because of their lower cost.   Furthermore, participation in contests   is very low compared to sweepstakes, since they require some sort of skill or ability.

Special Events Special event marketing offers a lot of advantages. First, events tend to attract a homogeneous audience that is very appreciating of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high. Second, event sponsorship often builds support, among employees—who may receive acknowledgment for their participation—and within the trade. Finally, compared to producing cries of ads, event management is relatively simple. Many elements of event sponsorship are prepackaged and reusable, such as booths, displays, and ads. Special event marketing is available to small businesses, as well, through sponsorship of events on the community level.

Premiums a premium is tangible compensation that is given as incentive for performing a particular act—usually buying a product. The premium may be given for free, or may be offered to consumers for a significantly reduced price. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the .grand opening of a hardware store. Incentives that are given for free at the time of purchase are called direct premiums. These offers provide instant gratification, plus there is no confusion about returning coupons or box tops, or saving bar codes or proofs of purchase.

Other types of direct premiums include traffic builders, door openers,  and referral premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure a prospective buyer to a store. A door-opener premium is directed to customers at home or to business people in their offices. For example, a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and listening to his sales pitch. Similarly, an electronics manufacturer might offer free software to an office manager who agrees to an on-site demonstration. The final category of direct premiums, referral premiums, rewards the purchaser for referring the seller to other possible customers.

Mail premiums, unlike direct premiums, require the customer to perform some act in order to obtain a premium through return mail. An example might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment covering the cost of tile item plus handling. The premium is still valuable to the consumer because they cannot readily buy the item for the same amount.

Continuity Programs Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives. Continuity programs demand that consumers keep buying the product in order to get the premium in the future. Consumers usually received one stamp for every dime spent at a participating store. The stamp company provided redemption centers where the stamps were traded for merchandise. A catalog listing the quantity of stamps required for each item was available at the participating stores. Today, airlines’ frequent-flyer clubs, hotels’ frequent-traveler plans, retailers’ frequent-shopper programs, and bonus-paying credit cards are common continuity programs. When competing brands have reached parity in terms of price and service, continuity programs sometimes prove a deciding factor among those competitors. By rewarding long-standing customers for their loyalty, continuity programs also reduce the threat of new competitors entering a market.

Sampling a sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly when a product is new or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in order for sampling to change people’s future purchase decisions, the product must have benefits or features that will be obvious during the trial.

There are several means of disseminating samples to consumers. The most popular has been through the mail, but increases in postage costs and packaging requirements have made this method less attractive. An alternative is door-to-door distribution, particularly when the items are bulky and when reputable distribution organizations exist. This method permits selective sampling of neighborhoods, dwellings, or even people.  Another method is distributing samples in conjunction with advertising. An ad may include a coupon that the consumer can mail in for the product, or it may include an address or phone number for ordering. Direct sampling can be achieved through prime media using scratch-and-sniff cards and slim foil pouches, or through retailers using special displays or a person hired to hand out samples to passing customers. Though this last technique may build goodwill for the retailer, some retailers resent the inconvenience and require high payments for their cooperation.

A final form of sample distribution deals with specialty types of sampling. For instance, some companies specialize in packing samples together for delivery to homogeneous consumer groups, such as newlyweds, new parents, students, or tourists. Such packages may be delivered at hospitals, hotels, or dormitories and include a number of different types of products.

Trade Promotions

A trade is targeted at resellers-wholesalers and retailers-who distribute manufacturers’ products to the ultimate consumers. The objectives of at the trade are different from those directed at consumers. In general, trade sales promotions hope to accomplish four goals: 1) Develop in-store merchandising support, as strong support at the retail store level is the key to closing the loop between the customer and the sale. 2) Control inventory by increasing or depleting inventory levels, thus helping to eliminate seasonal peaks and valleys. 3) Expand or improve distribution by opening up new sales areas (trade promotions are also sometimes used to distribute a new size of the product). 4) Generate excitement about the product among those responsible for selling it. s Some of the most common forms of trade promotions—profiled below—include point-of-purchase displays, trade shows, sales meetings, sales contests, push money, deal loaders, and promotional allowances.

Point-Of-Purchase (Pop) Displays Manufacturers provide point-of-purchase (POP) display units free to retailers in order to promote a particular brand or group of products. The forms of POP displays include special racks, display cartons, banners, signs, price cards, and mechanical product dispensers. Probably the most effective way to ensure that a reseller will use a POP display is to design it so that it will generate sales for the retailer. High product visibility is the basic goal of POP displays. In industries such as the grocery field where a shopper spends about three-tenths of a second viewing a product, anything increasing product visibility is valuable. POP displays also provide or remind consumers about important decision information, such as the product’s name, appearance, and sizes. The theme of the POP display should coordinate with the theme used in ads and by salespeople.

Trade Shows Thousands of manufacturers display their wares and take orders at trade shows. Trade shows provide a major opportunity to write orders for products. They also provide a chance to demonstrate products, disseminate information, answer questions, and he compared directly to competitors. Related to trade shows, but on a smaller scale, are sales meetings sponsored by manufacturers or wholesalers. Whereas trade shows are open to all potential customers, sales meetings are targeted toward the company’s sales force and/or independent sales agents. These meetings are usually conducted regionally and directed by sales managers. The meetings may be used to motivate sales agents, to the product or the promotional campaign, or simply to answer questions. For resellers and salespeople, sales contests can also be an effective motivation. Typically, a prize is awarded to the organization or person who exceeds a quota by the largest percentage.

Push Money Similarly, push money (PM)—also known as spiffs—is an extra payment given to sales-people for meeting a specified sales goal. Although some people see push money as akin to bribery, many manufacturers offer it.

Deal Loaders A deal loader is a premium given by a manufacturer to a retailer for ordering a certain quantity of product. Two types of deal loaders are most typical. The first is a buying loader, which is a gift given for making a specified order size. The second is a display loader, which means the display is given to the retailer after the campaign. For instance, General Electric may have a display containing appliances as part of a special program. When the program is over, the retailer receives all the appliances on the display if a specified order size was achieved.

Trade Deals Trade deals are special price concessions superseding, for a limited time, the normal purchasing discounts given to the trade. Trade deals include a group of tactics having a common theme—to encourage sellers to specially promote a product. The marketer might receive special displays, larger-than-usual orders, superior in-store locations, or greater advertising effort. In exchange, the retailer might receive special allowances, discounts, goods, or money. In many industries, trade deals are the primary expectation for retail support, and the marketing funds spent in this area are considerable.

There are two main types of trade deals: buying allowances and advertising/display allowances.

Buying Allowances A buying allowance is a bonus paid by a manufacturer to a reseller when a certain amount of product is purchased during a specific time period. In order to take advantage of a buying allowance, some retailers engage in “forward buying.” In essence, they order more merchandise than is needed during the deal period, then store the extra merchandise to sell later at regular prices. This assumes that the savings gained through the buying allowance is greater than the cost of warehousing and transporting the extra merchandise. Some marketers try to discourage forward buying, since it reduces profit margins and tends to create cyclical peaks and troughs in demand for the product.

The slotting allowance is a controversial form of buying allowance. Slotting allowances are fees retailers charge manufacturers for each space or slot on the shelf or in the warehouse that new products will occupy. The controversy stems from the fact that in many instances allowance amounts to little more than paying a bribe to the retailer to convince them to earn’ your company’s products. But many marketers are willing to pay extra to bring their products to the attention of consumers who are pressed for time in the store. Slotting allowances sometimes buy marketers prime spaces on retail shelves, at eye level or near the end of aisles.

The final type of buying allowance is a free goods allowance. In this case, the manufacturer offers a certain amount of product to wholesalers or retailers at no cost if they purchase a stated amount of the same or a different product. The allowance takes the form of free merchandise rather than money.

Advertising Allowances An advertising allowance is a dividend paid by a marketer to a reseller for advertising their product. A display allowance is the final form of trade promotional allowance. Some manufacturers pay retailers extra to highlight their display from the many available every week. The payment can take the form of cash or goods. Retailers must furnish written certification of compliance with the terms of the contract before they are paid. Retailers are most likely to select displays that yield high volume and are easy to assemble.

Marketing Activities

Sales promotion can be classified based on the primary target audience to whom the promotion is directed. These include:

Consumer Market Directed – Possibly the most well-known methods of those intended to appeal to the final consumer. Consumers are exposed to sates nearly everyday, and as discussed later, many buyers are conditioned to look for prior to making purchase decisions.

Trade Market Directed – Marketers use to target all customers including partners within their channel of distribution. Trade promotions are initially used to entice channel members to carry a marketer’s products and, once products arc stocked, marketers utilize promotions to strengthen the channel relationship.

Business-to-Business Market Directed: A small, but important, sub-set of se arc targeted to the business-to-business market. While these promotions may not carry the glamour associated with consumer or trade promotions, B-to-B promotions arc used in many industries. Brief discussion on each category has given below:

Sales promotion

A sales promotion is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails. The importance of a sales promotion activity cannot be underestimated. This is because a strategy is important to a business boosting its sales.

When developing activity for the business, it is important to keep the following points in mind.

Consumer attitudes and buying patterns Brand strategy Competitive strategy advertising strategy is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

Marketing is a very important tool of marketing promotion. Through this, companies persuade the customer to buy the product and also acquainted the product to the customer. Basically it is short term incentive to encourage purchase or sale of a product or service.

When the customer does not know or little know about a company and product then sales promotion activities play vital role to acquaint the company, product , services to the customer. Sales promotion can be directed at the customer, sales staff, or distribution channel members. Sales promotion targeted at the consumer are called consumer attracts promotion. Sales promotions targeted at the retailers and wholesale are called trade. Sales basically are the step to increase the sale volumes, attracting the customer, expand the market.

Objectives of Sales Promotion

Sales promotion is a tool used to achieve most of the five major promotional objectives discussed in the Promotion Decisions Tutorial:

Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional   components   in the early   stages   of new product   introduction. Additionally, as part of the effort to build product awareness, several sales promotion   techniques   possess   the   added   advantage   of capturing   customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts.

 Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors.

Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost.

Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email.

Stimulating Demand – Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales.

Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty. Many companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register.

Motivational Measure in Sales Promotion:

Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or services. Sales promotion is basically to persuade the consumer to buy the product or services, acquainted the consumer about the product, expand the market etc. Companies mainly used the following motivational factor to attract the consumer to buy the product or services:

Consumer Promotional Activities:  Companies motivate the consumer through the different promotional techniques such as:

Samples: That is to offer the product to the consumer on free basis or by taking little amount. Through this consumer can know about the company and the product.

Coupon: To offer coupon facility to the consumer, through the coupon the consumer can buy the product at lower price.

Cash Refund Offer: Company can offer sum cash refund from original prices of the product to attract the customer. Price Pack: If consumer buy one then other one will be, through this company motivate the consumer to buy the product.

Premiums: To provide another product absolutely free with the product, such as if consumer buy a television he will get a radio free.

Advertising Specialties: To provide some gifts to the consumer, such as: key ring, pen, calendar, mug, t-shirt etc-company name is written on that gifts. Patronage Reward: Company sometimes offer some gifts to that consumer who used the company product always to tie up the consumer.

Besides all motivational factors to attract consumer the company also use point of purchase, contest, sweepstakes and games, price discounting etc to attract the consumer.

Trade Promotion Tools:

•           Trade allowances: short term incentive offered to induce a retailer to stock up on a product.

•           Dealer loader: An incentive given to induce a retailer to purchase and display a product.

•           Trade contest: A contest to reward retailers that sell the most products.

•           Point-of-purchase displays: Extra sales tools given to retailers to boost sales. .

•           Training programs: dealer employees are trained in selling the product.

•           Push money: also known as “spiffs”. An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function.

SWOT Analysis of the Organization:

Strength:

1.   Well distribution network and policy.

2.   Good looking blister of packing.

3.    High awareness of brand

4.    Brand image

5.    Initial high growth rate

6.    Modern technology

7.   Will research and development department.

8. Use best raw materials.

Weakness:

1.   Lack of marketing research

2.   Less motivational factor for employees.

3.   Competitively high in price

4.   High manufacturing cost

5.  Uneducated worker

6.  Lack of skill worker

7.  In effective Advertising message

Opportunities:

1.   Extension of variability of product

2.   Ensure Market coverage against competitor’s product.

3.  Add value to Attract Consumer.

5.  Advertising and targeting the Target customers.

Threat:

1.   100% market coverage

2.  If focusing on benefits

3.   Maximizing sales

4.   Reduce Manufacturing cost to serve price sensitive customers.

Recommendations of the Organization:

Organization should emphasize on the following matter for its betterments:

1.         Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology

2.         Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science

3.         Provide our consumers with innovative products within easy reach

4.         Build a platform to enable Dabur to become a global ayurvedic leader

5.         Be a professionally managed employer of choice, attracting, developing and retaining quality personnel

6.         Be responsible citizens with a commitment to environmental protection

7.         Provide superior returns, relative to our peer group, to our shareholders

8.         To become a supplier or vendor of Dabur, you will have to complete the Vendor Registration formalities. You can view the Suppliers section of our site for information on the procurement list, ethics and the procedure for registration. You can also download the Vendor Registration form and forward it to us after filling in all the details. Once you are registered with us, you can send in your details and quoted prices.

9.         To become a supplier or vendor of Dabur, you will have to complete the Vendor Registration formalities. You can view the Suppliers section of our site for information on the procurement list, ethics and the procedure for registration. You can also download the Vendor Registration form and forward it to us after filling in all the details. Once you have registered with us, you can write to us on the Suppliers section of our site for all the details.

10.       At Dabur we fulfill our social commitments through the activities of Sundesh, a non-profit organisation, the Chunnilal Medical Trust for medical camps and the Plants for Life programme for schoolchildren.

11.       Dabur has a distribution network spread across 5 continents and over 50 countries with offices in Europe, America and Africa and production units in Nepal, Egypt, UK and the UAE.

12.       Dabur is currently the 4th largest company in the Indian consumer goods market. In several categories, our brands like Chyawanprash, Real Juices, Dabur Amla Hair Oil, Hajmola, Dabur Honey, Hommade Pastes are market leaders

13.       Dabur India Limited is one of the leading consumer goods company of India with interests in healthcare, personal care and foods. We work in active collaboration with nature to provide the best of herbal health and personal care products to its consumers.

14.       Dabur India Limited has 3 Subsidiary Group companies – Dabur International, Fem Care Pharma and newu 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), Weikfield International (UAE) and Jaquline Inc. (USA). For details on each of the companies, click on the links on our homepage

15.       Dabur has traditionally specialised in nature-based products and Ayurvedic formulations. Over the years we have developed two distinct businesses – FMCG and Pharmaceuticals. Dabur’s FMCG business comprises of 3 sections – Personal Care, Health Care and Foods. Ayurvedic Specialities deals in pure Ayurvedic medicines while the Pharmaceuticals division offers branded pharmaceuticals, oncology and bulk pharma exports. To know more about our products, view the Products section on our site.

16.       Dabur India Limited is a public limited company with over 40,000 shareholders. In the last year, the Company has taken steps for moving towards professional Corporate Governance processes. Which include reducing the number of Promoter Directors to 4 and appointing management professionals in the strategic decision-making positions? The Company is now governed by the CEO, the Management Committee and the Board of Directors comprising 10 members.

Conclusion

The case deals with the restructuring initiatives Dabur took in the early 2000s. In order to cater to a wider audience, Dabur decided to reposition itself as an FMCG company with an herbal plank, moving away from its earlier image of an Ayurvedic medicine manufacturer.

In order to convey a new vibrancy, the company has adopted new product offerings and new packaging. Dabur’s promotional campaign includes leading Bollywood actors and sports tars.

Dabur moved away from an umbrella branding strategy and went in for individual branding. It pruned products which were not aligned with its brand architecture.

It also took concerted steps towards geographical expansion to international markets, and within India, focused on regions like southern India, which it had earlier neglected. The company’s revenues in 2004-05 reveal that the changes undertaken by the company have started showing results.

Though Dabur diversified into number of areas, the image of Dabur was that of an Ayurvedic company. In the public perception, Dabur products were associated with the 35-plus age group. With almost seventy percent of India’s population below 35, it appeared that Dabur would be missing out on this mass market, which also had high disposable income.