Dabur Red Toothpaste
Dabur Red Toothpaste
Bhopal (MP)
A Project Report
On
2010-2012
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Bhopal (MP)
Bhopal (MP)
DECLARATION
Year 2010-2012
I, Satyendra Singh Chouhan, hereby state that the study and work undertaken by
us towards that fulfillment of the requirements of the project on –“ Dabur Lal
Toothpaste a Consumer Prospective” Is our original work . The project
done under the supervision and guidance of Prof Rajkumar Soni .
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1 Acknowledgement 5
2 Executive summary 6
3 Objective 7
4 Company profile 8
9 Financial Review 13
12 STP & SWOT Analysis 15
16 Questions analysis 17
19 Conclusion 29
21 Bibliography 31
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ANNEXURES I
Questionnaire
Acknowledgement:
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I would like to thank Prof. Rajkumar Soni For his guidance and
support for the preparation of project report.
I would like to thank all the retail owner and distributor who gave
their valuable time and extended the full support in preparing the
project report.
EXECUTIVE SUMMARY
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OBJECTIVES
Introduction
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Da b u r I n d ia L im i t e d ( DI L ) is t h e f o u r t h la r ge st FM CG Co m p a n y in I n d ia
wit h business interests in Healthcare, Personal care and Food products. It has revenue
of about US$600 Million (over Rs 2834 Crore) & Market Capitalization of
overUS$2.3 Billion. Dabur India is a 126 years old company and is the world leader in
Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur since its
inception has focused on manufacturing and selling Ayurvedic products targeted at the
mass consumer segment. There are number of personal care products,
Ayurvedic tonics and oral care products which it launched between 1940
and1970 have become leading brands today.
2) Consumer Health Division: This SBU pertains to the Ayurvedic medicines and
ayurvedic OTC. Major categories in traditional formulations include Asav
Arishtas, Ras Rasayanas, Churnas, Medicated Oils.
3) I n t e r n a t i o n a l B u s i n e s s D i v i s i o n : I t c a t e r s t o t h e h e a l t h a n d p e r s o n a l
c a r e needs of international consumers in middle east, north and west Africa, EU3 and
US. This division has high level of localization of manufacturing and sales &
marketing.
In 2003, Dabur collaborated with Accenture so as to keep itself competitive. The need of the
hour was to work smarter and faster so as to improve profitability a n d r e v e n u e
g r o wt h . A c c e n t u r e a d vi s e d D a b u r t o f o c u s o n t h e f o l l o w i n g k e y areas:
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2) Viewing information technology (IT) as a strategic asset that creates real values—not
simply a cost to be managed.
Dabur Red Toothpaste is packed with the power of 13 active Ayurvedic ingredients
like Laung Pudina & Tomar, that keep all your dental problems away. It is the first-
ever toothpaste which keeps all your dental problems away, thereby providing you
strong teeth.
Its superior formulation that has been scientifically validated has made Dabur Red
Toothpaste the preferred oral care brand for millions of Indians. No wonder that
Dabur Red Toothpaste has become a Rs 100 crore brand within just five years of its
birth.
Dabur Red Toothpaste is available in 4 SKUs: 200gm, 100gm, 50gm and 20gm.
Ingredients
1. Laung: Helps prevent toothache
2. Pudina: Helps prevent bad breath
3. Tomar: Kills harmful germs
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Dabur completed another year of strong growth, both in revenue and profits. The
highlights of the Company’s performance in fiscal 2010-11 on a consolidated basis are:
• Consolidated Sales increased to 4,109.9 crores in fiscal 2010-11 from Rs.
3,415.8crores in fiscal 2009-10 registering a growth of 20.3%
• Consolidated profits after tax (PAT) went up to Rs. 568.6 crores in fiscal2010-11 from
Rs. 501.3 crores, going up by 13.4% Earnings per share (EPS) went up to Rs3.25 in
fiscal 2010-11 from Rs. 2.89 in fiscal 2009-10
The Company has maintained a strong and consistent growth trajectory in consolidated
sales during the last 10 years, with growth accelerating in the last 5 years to CAGR
of18.5% (See Chart below). The Company’s sales crossed the Rs. 4,000 crore mark
during fiscal 2010-11.
Sales growth during 2010-11 continued to be significantly volume-driven, with volumes
accounting for more than three fourths of the total revenue growth. The challenging
input cost environment led to calibrated price increases across categories.
Oral Care
The year 2010-11 marked another year of strong growth for Dabur’s Oral Care portfolio,
a business that comprises two key product categories - Toothpaste and Toothpowder.
While the toothpaste portfolio continued to outshine the industry, growing at near double
the industry average, the toothpowder segment too reported moderate growth during
the fiscal. The toothpaste portfolio of Dabur - yet again - was the fastest growing in the
country, even in the face of stiff competition.
According to AC Nielsen Retail Audit (MAT Mar 2011), Dabur’s toothpaste brands grew
by a cumulative 18.1% as against an industry average of 10.8% and even reported a
market share gain of 90 bps in one year. Dabur now enjoys market share of 14.1% of
the total toothpaste category as per AC Nielsen Retail Audit (MAT Mar 2011).
Dabur Red Toothpaste delivered another good performance to end the year with a
strong double-digit growth and emerged as an Ayurvedic alternative. Besides
introducing two new SKUs of Dabur Red Toothpaste - an Rs. 10 pack and a 300 gm
value pack - aimed at different consumer class and markets, Dabur also rolled out a
mega Oral Hygiene awareness programme for children that reached out to about 21
lakh school kids across the country. Under this programme, these kids were educated
about the need for oral hygiene and how Red toothpaste offers complete protection
from all dental problems. Strong regional focus initiatives in South India, intensive media
across India and other all-India ground-level activations helped the brand grow well and
gain market share. The brand ended the year with a 42 bps gain in market share to end
the year with 4.1% share of the pie (as per AC Nielsen Retail Audit MAT March 2011).
Backed by a strong value proposition to consumers and delivering on the key oral care
benefits through natural ingredients, brand Babool continued its strong growth
momentum and ended the fiscal with a market share of 8.9%. The brand was
introduced in a new packaging propagating the benefits of its natural ingredients.
Babool toothpaste contains extract of Babul plant. Babul bark contains natural Tannins
at a level of 20-40% and is an excellent astringent. It offers effective oral care
protection, mainly to inflated gums and helps to provide and maintain clean, strong and
white teeth. Clinical studies clearly substantiate that the use of Babul for oral care
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makes the roots of the teeth strong from within, mainly due to the presence of tannins in
Babul extract.
Meswak, the third big pillar in Dabur’s toothpaste market strategy, was also introduced
in a new packaging to build a closer association with the Dabur umbrella brand.
Meswak, today the largest brand in the premium toothpaste market, is scientifically
proven to reduce tartar & plaque, fight germs & bacteria to keep gums healthy, prevent
tooth decay, eliminate bad breath and ensure strong teeth. In short, Meswak provides
complete Oral Care, which is core to fitness and well-being.
Dabur’s toothpowder brand Dabur Lal Dant Manjan reported a 2.1% growth after years
of remaining stagnant. The demand recovery was a result of an extensive rural
activation programme that sought to convert non-dentifrice users to toothpowder across
Uttar Pradesh.
This initiative helped Dabur Lal Dant Manjan increase its consumer franchise at a time
when growing affluence in rural India had resulted in an overall shift in consumer
preference from toothpowders to toothpastes.
This programme covered village schools, local Haats and Melas in these states. These
initiatives ensured that Dabur Lal Dant Manjan grew ahead of the category and gained
50bps in market share (AC Nielsen Volume Share for MAT March 2011).
The Modern Trade segment resurged in the 2010-11 fiscal, with key players
reconfiguring their networks and scaling up operations. The Modern Trade landscape
witnessed new formats emerging as potential winners over the medium term. A
comprehensive strategy was developed to accelerate growth for Dabur in this backdrop,
focusing on share gains in emerging formats & key categories.
The strategy focused on creating a distinct identity for Dabur brands (core being herbal
expertise) that are relevant for shoppers. Building an effective servicing &activation
system to service the requirements of Modern Trade are also a critical element of the
approach. This helped Dabur improve growth rates in Modern Trade channel during the
year & make significant market share gains across all key categories.
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TRADITIONAL TRADE
In the year 2010-11, Dabur continued to strengthen its market presence through programmes
targeted at key urban channels and the rural markets. Point of purchase is the most critical
dimension impacting the buying decision of the consumer and appropriate interventions are
crucial to generate impact amidst the clutter. Apart from investments to strengthen shelf
presence, the stores were also offered merchandising solutions to enhance the effectiveness of
the brand communication. Overall, merchandising investments have been tripled to deliver
required impact.
RURAL MARKETS
Rural & semi-urban India contributes to about half of the business for CCD and is also the
largest source of growth. The recent years have seen a steady growth in income in rural India.
Thanks to the spurt in commodity prices and the employment generation schemesand fiscal
sops announced by the government, the rural consumers today have more money in their
pockets. During the course of the year, Dabur initiated a detailed study to understand the rural
landscape and identify emerging pockets of higher growth.
Comprehensive benchmarking was done on rural coverage across 8 key states - UttarPradesh,
Uttaranchal, Rajasthan, Bihar, West Bengal, Maharashtra, Madhya Pradesh and Chhattisgarh.
Markets were mapped integrating road networks and economic data to identify potential for
coverage. The plan is to extend rural distribution reach by penetrating to villages with population
of ~3000 in these states.
The strategy is to improve distribution reach, customize trade promotions and provide focused
servicing through a dedicated sales team exclusive to these markets. Field resources are
significantly increased in high potential districts of these states to increase contact frequencies
and improve coverage.
Operations
At Dabur, it is recognized operation as an important source of competitive advantage. A strong
back-end support in Procurement, Manufacturing, Research & Development and Human
Resource Management has been key to Dabur’s sturdy performance through the2010-11 fiscal.
A large number of initiatives was rolled out by the Company to improve productivity through
effective application of technology and advancement in manufacturing processes, besides
adoption of lower cost energy options.
MANUFACTURING
In India, Dabur has 13 production facilities organized around two main factories at Baddi Cluster
(Himachal Pradesh) and Pantnagar (Uttaranchal); and nine factories which are located at
Sahibabad (Uttar Pradesh), Jammu, Silvassa, Nasik, Alwar, Katni, Narendrapur and Pithampur.
The Foods Business is catered to by manufacturing facilities in Newai(Rajasthan) and Siliguri
(West Bengal).
During the 2010-11 fiscal, the Company increased capacities in toothpaste, shampoo, hair oils,
Hajmola and Glucose. In addition, an increase in throughputs in our existing units enabled us to
meet higher volumes with existing capacities without additional capital investment. Introduction
of Automatic Tray feeding system to Poly shrink machine for Juices at our Newai unit is
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expected to not only enhance throughput, but also improve quality and reduce wastage. TPM
initiatives at Baddi, Silvassa and Pantangar Units generated "Kaizens", which led to reduction in
down time of machines.
Initiatives were taken in various manufacturing units to reduce cost, reduce impact on
environment, new product/pack introduction, improve safety awareness and quality
improvement.
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Dabur Red
Sector FMCG
STP
SWOT Analysis
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Competition
1.Colgate
2.Closeup
Competitors 3.Pepsodent
Analysis
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Colgate
Pepsodent
Dabur lal dant manjun
Tooth powder
Analysis - According to the survey it was seen that the public in the lower segment and lower
middle class segment Dabur lal dant manjun is more prevalent and is more due to a habit and
because of traditions.
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Tooth paste – : 40
Tooth powder – : 08
Others – : 02
Tooth paste
Tooth powder
Others
Analysis – It was found that awareness about the oral hygiene is increasing and people are
more concerned with the oral health. Use of tooth paste is increasing in compared to tooth
powder and other material like babul stick charcoal powder.
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Flavor - : 23
Color - : 15
Content - : 02
Price - : 10
Flavor
Color
Content
Price
Analysis – People use Dabur lal dant manjun due to habit and the taste of flavor of dabur red
tooth paste. After flavor color and pricing of the Dabur are more preferred.
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Very much - : 38
Satisfied - : 10
Its ok - : 02
Not at all - : 00
Very much
Satisfied
Its ok
Not at all
Analysis – People who are using the Dabur Red Tooth Paste from a very long time are addicted
to it and they don’t want to change their tooth paste at all .
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Q10. What changes you would like in the Dabur tooth paste :-
Packaging – : 15
Color - : 06
Price - : 25
Content - : 04
Packaging
Color
Price
Content
Analysis – Pricing plays an important part in the Indian market and the consumer want more
for less money. Packaging and color do play a role in the purchasing decision of the consumer
but not to the extent at which the price factor plays.
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50 grms - : 15
100 grms - : 25
150 grms - : 10
50 grm
100 grms
150 grm
Analysis – People buy the 100 grms tube more due to the reason that if more then one
member of the family is using the tooth paste then it should last for at least a month. As tooth
paste is one product which falls in the monthly purchase list of any family. And it is economical
and affordable also.
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Q12. How many family members use the same brands tooth paste.
Myself – :7
Two members – : 13
All members - : 30
Myself
Two members
All members
Analysis – Usually the purchasing of daily useable items is done once in a month and due to the
economical condition of the lower middle class and middle class does not permit them to buy
tooth paste according to individual choice so they usually buy one tooth paste and whole family
uses it.
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Kirana shop – : 20
General store – : 11
Corner shop – : 18
Mall - : 01
Kirana shop
General store
Corner shop
Mall
Analysis – It was observed that most of these people do the purchasing of the general daily
useable items from either kirana stores and from the corner shop with in the vicinity of the
neighborhood, as from these shops they usually get the credit facility.
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1 Box - :1
2 Box - :2
5 Box - :2
1 Box
2 Box
5 Box
Analysis – During the survey five dispensing stores were also covered and it was found that
wholesaler is selling around 2 to 5 boxes monthly on an average( 1 box = 12 pack of tooth
paste)
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Dabur – : 03
Colgate – : 02
Pepsodent – : 01
Others - : 00
Dabur
Colgate
Pepsodent
Others
Analysis – In the semi urban and suburb of the Bhopal city it was seen that there is a stiff
competition amongst the Dabur , Colgate and pepsodent and other brands. Company are
coming up with newer scheme to lure the retailer so that they push their product and newer
advertisement to create brand awareness.
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Packaging – : 01
Color – : 03
Price – : 04
Content - : 00
Packaging
Color
Price
Content
Analysis – According to the retailer and wholesaler the sale of any product is governed by the
price and the color of packaging and product.
Q17. How many costumer ask for Dabur Lal Tooth Paste Daily.
1- :2
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2- :1
5- :1
10 - :0
More - :0
1
2
5
10
More
Analysis – kirana shop and corner shop are usually visited by the set costumer how come there
to puschase the general and usually the costumer dose not shift very often therefore the owner
know how much stock they have to maintain to full fill the requirement of their costumer .
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Q18. What according to you should be changed in the Dabur tooth paste.
Marketing style – : 03
Advertising – : 05
Segment – : 02
Packaging – : 01
Content – : 01
Marketing style
Advertising
Segment
Packaging
Content
Analysis - According to these seller the company should focus on the set segment and they
should change the marketing style and it should come up scheme which are beneficial to the
costumer and the retailer both. They also want that the advertising of dabur product should
come more often in the print as well as on television as it will definitely increase the sales of the
company product.
Conclusions
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It was found in the research there is a definite liking of Dabur Red Toothpaste in the suburb of
Bhopal city and in the surrounding areas. It was found most of the public living in these areas
are from rural background and are still following the habitual practice carry forwarded from
their origin. Usually the purchasing of daily useable items is done once in a month and due to
the economical condition of the lower middle class and middle class does not permit them to
buy tooth paste according to individual choice so they usually buy one tooth paste and whole
family uses it.
In the semi urban and suburb of the Bhopal city it was seen that there is a stiff competition
amongst the Dabur , Colgate and pepsodent and other brands. Companies are coming up with
newer scheme to lure the retailer so that they push their product and newer advertisement to
create brand awareness.
kirana shop and corner shop are usually visited by the set costumer how come there to
purchase the general and usually the costumer dose not shift very often as they regular
costumer get credit facility with these shop, therefore the owner know how much stock they
have to maintain to full fill the requirement of their costumer
According to channel partners of the company the company should focus on the set segment
and they should change the marketing style and it should come up scheme which are beneficial
to the costumer and the retailer both. They also want that the advertising of dabur product
should come more often in the print as well as on television as it will definitely increase the
sales of the company product.
Bibliography
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I would like to thank Prof. Rajkumar Soni for his guidance and support
during my research work.
References
1. www.dabur.com
3. www.dabur.com/en/investors1/Annual...04/Dabur_PH_03_04.pdf
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1. Name – ……………………………………………………………………………………….
2. Age – ………………………………………..
3. Sex – …………………….
4. Address – ……………………………………………………………………………………..
5. Monthly income – ………………………………………………….
6. Which tooth paste/powder you use –
Colgate –
Pepsodent –
Dabur lal dant manjun -
Tooth powder -
7. What you use for cleaning the tooth
Tooth paste -
Tooth powder -
Others -
8. Which quality you like in dabur lal tooth paste.
Flavor
Color
Content
Price
9. Are you satisfied by lal dant manjan
Very much
Satisfied
Its ok
Not at all
10. What changes you would like in the dabur tooth paste.
Packaging
Color
Price
Content
11. Which size of tooth paste you use regularly.
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50 grm
100 grms
150 grm
12. How many family member use the same brand tooth paste.
Myself
Two members
All members
13. Where you buy your tooth paste from.
Kirana shop
General store
Corner shop
Mall
14. How many tooth paste you sell monthly.
1 box
2 box
5 box
15. Which tooth paste you sell more.
Dabur
Colgate
Pepsodent
Others
16. Which quality a consumer usually look for before buying
Packaging
Color
Price
Content
17. How many costumer ask for dabur lal tooth paste daily.(1 box = 12 packs)
1
2
5
10
More
18. What according to you should be changed in the dabur tooth paste.
Marketing style
Advertising
Segment
Packaging
Content.
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