Marketing Management

Assignment

Brand : Dabur
Product : Chyawanprash
 DETAILS OF PARTICIPANTS

GROUP 7

Ser Name Roll No

1. Col Sumit Pant 08
2. Lt Cdr Dhruv Arora 37
3. Cdr Varun Gusaine 38
4. Cdr Yateesh Singh Bonal 39
5. Lt Cdr Karan Kalra 40
6. Lt Cdr Gourav Rampal 41
7. Sqn Ldr Aakash Vishwakarma 50

2
INDEX

1.
2.
3.

3
EXECUTIVE SUMMARY

The group has chosen the Brand: ‘Dabur’ and Product: ‘Chyawanprash’ as the topic
for assignment of Marketing Management.

Over its 120 years of existence, the Dabur brand has stood for goodness
through a natural lifestyle. An umbrella name for a variety of products, Dabur has
been consistently ranked among India’s top FMCG brands. Its brands are built on
the foundation of trust that a Dabur offering will never cause one harm. One of the
major offering from the company is their Ayurvedic Chyawanprash. Chyawanprash
(CP) is an Ayurvedic health supplement which is made up of a super-concentrated
blend of nutrient-rich herbs and minerals.

In this assignment we, as a group, have analysed the market of Dabur

Chyawanprash, its promotional strategies, its competitors, their market share and
their promotional strategies. We have then carried out the STP analysis of Dabur
Chyawanprash and studied its Price and Promotional strategies. We have also
collaborated with personnel working/ worked at Dabur marketing team for obtaining
first-hand information regarding the channels of distribution. In addition we have
referred to viz advertisements, internet and newspaper articles as secondary
sources for obtaining additional information.

4
 ABOUT THE COMPANY/ BRAND

The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman,
a physician tucked away in Bengal. His mission was to provide effective and
affordable cure for ordinary people in far-flung villages. With missionary zeal and
fervour, Dr. Burman undertook the task of preparing natural cures for the killer
diseases of those days, like cholera, malaria and plague.

Soon the news of his medicines travelled, and he came to be known as the trusted
'Daktar' or Doctor who came up with effective cures. And that is how his venture
Dabur got its name - derived from the Devanagri rendition of Daktar Burman.

Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines.
Reaching out to a wide mass of people who had no access to proper treatment. Dr.
S. K. Burman's commitment and ceaseless efforts resulted in the company growing
from a fledgling medicine manufacturer in a small Calcutta house, to a household
name that at once evokes trust and reliability.

The trust levels that this brand enjoys are phenomenally high. It stands as
India’s fourth largest fast moving consumer goods company that both
consumers and trade respect and trust unequivocally. The company has kept an
eye on new generations of customers with a range of products that cater to a
modern lifestyle, while managing not to alienate earlier generations of loyal
customers. Dabur is an investor friendly brand as its financial performance
shows. There’s a great sense of responsibility in Dabur for investors’ funds on
view. This is a direct extension of Dabur’s philosophy of taking care of its
constituents and it adds to the sense of trust for the brand overall.

Leading consumer goods company in India with Revenues of over Rs 7,680 Crore
& Market Capitalisation of over Rs 48,800 Crore. Building on a legacy of quality and
experience of over 133 years, Dabur is today India’s Most Trusted Name and the
World’s Largest Ayurvedic and Natural Health Care Company. Dabur currently is
organised as follows:-

 2 major strategic business units (SBU) - Consumer Care Division (CCD) and
Consumer Health Division (CHD)

 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur

International and 3 step down subsidiaries of Dabur International - Asian
Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur
Egypt.

 13 ultra-modern manufacturing units spread around the globe Products

marketed in over 50 countries
5
 Wide and deep market penetration with 47 C&F agents, more than 5000
distributors and over

Dabur Manufacturing Locations

6
Vision and Mission of Dabur

Vision. The vision of Dabur is as follows:-

"Dedicated to the health and well being of every household"

Principles. The 7 principles of Dabur as mentioned on their website is as follows:-

 Ownership

This is our company. We accept personal responsibility, and accountability to meet

business needs.

 Passion for Winning

We all are leaders in our area of responsibility, with a deep commitment to

deliver results. We are determined to be the best at doing what matters most.

 People Development

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

 Consumer Focus

We have superior understanding of consumer needs and develop products to

fulfill them better.

 Team Work

We work together on the principle of mutual trust & transparency in a boundary- less
organization. We are
intellectually honest in advocating proposals, including recognizing risks.

 Innovation

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

 Integrity

We are committed to the achievement of business success with integrity. We are

honest with consumers, with business partners and with each other.

7
 Business Model of Dabur

Dabur follows a very unique business model called Umbrella Branding Strategy. It means
that all products are under one brand name. The logo of Dabur is an old banyan tree that
conveys Dabur’s heritage, dedication, and stability.
Dabur uses a 3 tier distribution system, i.e., from stockist – to wholesaler – to retailers –
to final consumers. With this system, the products are made available in departmental
stores, grocery shops, etc, across the country.

 The price of the different products of Dabur is reasonable to the people of every class.
As one of the company’s key dreams is ‘back to nature’, all Dabur products are made
with natural ingredients. Dabur’s brand-loyal consumer base claims that all of the
company’s products are essentially organic.
 FMCG and pharmaceutical businesses were separated in 2003 to ensure a better
clarification of products. This led to the discontinuation of the umbrella strategy that
existed before.
 Sales Promotion is one of the main tools of the company’s successful marketing
strategy. There are different sales marketing instruments that have been introduced by
the organization for various goods so far. Coupons, gift sets, refunds on money, and
festive sales are some of them. To improve the consumer base, merchandising, rewards,
and exchange deals are also offered to clients.

About the Product : Chyawanprash

8
The name ‘Chyawanprash’ finds its origin in ancient history
when a forest sage Chyawan Rishi was helped to remain
youthful and improve vitality by the twin Ashwini
Kumar brothers (the royal physicians to the Gods during the
Vedic era) who invented this polyherbal preparation. It is said
that the ancient recorded recipe for Chyawanprash can be
found in the Charaka Samhita, the Ayurvedic classic, where it is
appreciated as being superior to all other herbal rejuvenating
tonics.

Chyawanprash is formulated by processing around 50 medicinal herbs and their extracts,

including the prime ingredient, Amla (Indian gooseberry), which is the world’s richest
source of vitamin C. Chyawanprash preparation involves preparing a decoction of herbs,
followed by dried extract preparation, subsequent mixture with honey, and addition of
aromatic herb powders (namely clove, cardamom, and cinnamon) as standard. The
finished product has a fruit jam-like consistency, and a sweet, sour, and spicy flavour.

Chyawanprash is not just consumed in India but also the rest of the world. It is a brown
paste which contains herbs, spices, and other ingredients, prepared according to
Ayurvedic traditions. 
 
The market size of chyawanprash is approximately Rs 500 crores.  Chyawanprash is not
a product that emerged in the market in the 20th century. In fact, its existence can be
dated back to Vedic times, 10,000 years ago, when this formulation was prepared for
Chyawan Rishi at his ashram on Dhosi Hill near Narnaul. Since it was prepared for
Chyawan Rishi, the formulation came to be known as Chyawanprash. 

Chyawanprash can be consumed directly or mixed with warm water and milk. The main
ingredient in Chyawanprash is amla and it is rich in Vitamin C. There are many health
benefits linked to the consumption of Chyawanprash. 
 
Chyawanprash helps to relieve cough and fever, has anti-ageing benefits, improves
memory, digestion, and complexion, and gives strength to all sense organs. As a result,
many people in India consume Chyawanprash daily to prevent any ailments.

9
Promotional Strategies of Dabur Chyawanprash

In 1949, Dabur took the onus to blend the 2,500-year-old Ayurveda formula with its brand
purpose and gave birth to India’s first-ever branded Chyawanprash. The Dabur
Chyawanprash advertising journey has been giving us major health goals since and
continues to boost India’s immunity.

The era of the 1970s saw an emergence of televisions and soon did the world of
advertising realized the potential of a new medium – apart from print and radio.
Professional ad agencies began setting shops and new avenues of advertising were
being discovered.

The same year also witnessed ‘Doordarshan’

becoming a household name in India and brands
hopping onto the opportunity, kickstarting their
advertising on the channel. Dabur claims that it
was one of the first companies to explore
television advertising and ran one minute
long TV commercials telling stories about
families’ well being after consulting with
advertising professionals and storytellers.
And thus started the television chapter of Dabur
Chyawanprash advertising journey.

The company came up with advertisements starring theatre and film veteran Late.
Shriram Lagoo where he can be seen revealing the secrets about his healthy life owing
to Dabur Chyawanprash which came with 36 essential nutrients and herbs including

Amla.

10
Targeting the kids and the old, Dabur kept its communication revolving around how it
is of utter significance for the generations to consume Chyawanprash on a daily basis to
boost immunity.
The ads also delivered a strong message that the consumption of this preparation is said
to improve immunity levels, protect against infections, increase energy, stabilize blood
circulation, boost concentration levels, resolve respiratory problems and provide various
other benefits.

Amla, as its main ingredient was marketed at various levels working as an anti-oxidant
with high vitamin C content, which helps lower cholesterol levels. One of the old TVCs
displayed how a kid with daily Dabur Chyawanprash consumption can leave behind the
young adults in breaking the Dahi handi.

The brand repositioned itself as a ‘holistic health provider’ rather than ‘immunity builder’
wherein Bachchan was entrusted with the brand’s vision of making it a household name
yet again by changing consumers’ perception about the product. It should also be noted
that at the time, Big B was already endorsing Emami’s personal care range when the
competitor brand roped in Shah Rukh Khan to endorse its Sona Chandi Chyanwaprash.

11
Later, when it realized that there existed a misconception among youth that Dabur
Chyawanprash only served the kids and the elderly for resistance against ailments like
cold and cough, the company brought on board star cricketer MS Dhoni to break the
notion. Hence, the Dabur Chyawanprash advertising journey saw a new chapter.

The commercials mainly concentrated on answering the question Mujhe Dabur

Chyawanprash khane ki kya zaroorat hai?”  and the tagline was also changed to –  ‘Fit
body, Active mind’. By this time, Dabur Chyawanshakti, positioned as a stress reliever
and energizer for working adults.

With a new messaging that to win in life, one needs to have an active mind and a fit
body, Dabur Chyawanrash also underwent a revamp with new packaging boasting of red
in abundance which also signified the activity and alertness. Dabur Chyawanprash also
has a new logo which reinforces the new targeting.

At the same time, the brand went onto rope Bhojpuri star Ravi Kishan to do ground
promotion activities in schools, colleges, and outdoor consumer engagement programs
with an aim to reach the ‘galli-nukkads’.

12
In 2013, the brand took a holistic advertising route by choosing B-Town diva Madhuri
Dixit as the brand ambassador to promote the phenomenon of ‘double immunity’ for the

entire family through Dabur Chyawanprash targeting all genders and cutting across age
groups. Being an icon in her field, Dixit’s image exemplified the modern-day Indian
mother who successfully balanced her professional and family life and the brand claimed
that there could not have been a better choice.

Making India Strong Digitally

Dabur is known for its use of traditional promotional mediums but they have shifted their
marketing strategy to a digital-first approach. In an insightful interview taken by Brand
Equity of A.C. Burman, the Chairman of Dabur, talked very intensely about the digital-
first approach for Dabur and how the company will shift it’s marketing efforts to a newer
medium.

With dark clouds hovering in the sky and the world locked down owing to the COVID 19
pandemic if there is anything that the globe is talking about is boosting individual
immunity power. With a history of over 70 years, Dabur Chyawanprash has bet big on
Ayurvedic formula as a cure to respiratory ailments and low immunity.

13
At present, if you type ‘Dabur Chyawanprash’ on Twitter, the result is here for you to
analyse its significance in the current times.

Dabur Chyawanprash advertising journey has been a testament to the fact that
traditional brands too can adapt to the changing times & do it well. Chyawanprash has
made its way into every household because it has kept pace with the times and tweaked
its marketing campaigns to connect well with the masses, especially the younger
generation. More and more Indians are becoming health conscious and they are
preferring ayurvedic and organic products to those manufactured using chemicals. So,
there is a huge market that has been left untapped by the Chyawanprash industry. 

14
Analysis of Competition

The key competitors of Dabur in the Chyawanprash segment are Patanjali, Emami
Zandu and Baidyanath which together with Dabur share most of the India's domestic
market. Dabur Chyawanprash has a market share of 65%. This was followed by Emami
and Baidyanath till 2014 with each of them having around 10% market share each.
However, with the launch of Patanjali Chyawanprash the market share of the above two
companies declined as shown in the figure below.

Dabur faced the heat in its Chyawanprash segment with the entry of Patanjali in the
market. In response Dabur revamped its marketing communications with a new tagline—
Science-based Ayurveda. So far, it was “celebrate life". All their advertisements and
other communications are now based on one theme - Science of Ayurveda. There have
been changes in packaging and marketing communications as well. The executive
director (marketing) at Dabur India has also iterated that they are focusing on being
relevant to the youth which is they feel is their new target customer.

The competition for Dabur in the Chyawanprash segment is as follows:-

Competetive Profile
Others
14%
Emami
9%

Baidyanath8%

Dabur
Patanjali 6%
65%

Dabur Patanjali Baidyanath Emani Other

15
Patanjali Ayurvedic Ltd

Patanjali Ayurved Limited (PAL), led by Baba Ramdev and its Chief Executive Officer
(CEO) Acharya Balakrishna, had established high brand value for its products in the
Indian market. The key person behind the growth of PAL was Baba Ramdev. He became
famous for making Yoga popular among common people. PAL collaborated with Future
Group and Reliance Fresh (modern retail chain) for deeper penetration and availability of
its products.

The company had a distribution network of more than 4,000 distributors, 10,000
exclusive stores and 100 mega-marts. Due to increased customer demand, leading
stores like Spencer’s Retail, Big Bazaar, Reliance Fresh, HyperCity, SRS Retail and a
large number of Kirana stores were stocking and selling PAL products.

Marketing Philosophy

PAL followed three philosophies for introducing product in the market. These included
Swadeshi (manufactured in India) products, Ayurvedic products (Herbal) (no chemicals,
preservatives, etc.) and products with value proposition around wellness and nutrition.

Patanjali Chyawanprash has highlighted that it contains all-Swadeshi and herbal (non-
chemical) content. PAL claimed that its Chyawanprash is superior in terms of wellness
aspects compared to all other similar products available in the market from competing
brands.

Another strategy that Patanjali took was to make its Chyawanprash containing more
herbs and make them available to the masses at a reasonable price.

As is visible from the table below the price differential itself acted as a strong reason to
attract additional consumers, especially from the lower income group to opt for its
Chyawanprash, thereby increasing sales.

Another reason for quick growth of Patanjali Chyawanprash is “Face value”. With the
growing media and face value, brand ambassadors act as a trust stamp. Ramdev Baba
is known for his yoga and ayurvedic knowledge for years added to the success of

16
Patanjali’s marketing strategy. His face in various advertisement campaigns created trust
amongst the consumers which acted as a vital reason for it to be a hit in the market.

As Patanjali became the price warmer for these categories, Dabur started marketing its
Chyawanprash aggressively specially in digital media. The rationale for such a shift of
marketing strategy comes from the acknowledgement of the fact that social media and
other digital platforms provide far more to a marketer in terms of effectiveness than any
previous medium of promotions. Dabur has been increasing its digital spend over the last
few years. From the year 2017, they have increased their digital marketing spending by
33% in 2018. They spent a total of RS1.99 billion in the year 2018-19.

Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short)

Baidyanath was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines,

though it has recently expanded into the FMCG sector with cosmetic and hair care
products too. The Chyawanprash marketed by Baidyanath is a direct competitor of Dabur
Chyawanprash and has a market share of Its Chyawanprash has a market share of 8%.

Baidyanath promotional schemes mainly focus on offline mode of marketing rather than
digital marketing. The firm has roped in Pankaj Tripathi as the celebrity to endorse its
product Chyawanprash. However, the frequency of airing the advertisement on television
or radio has been very less as compared to Dabur Chyawanprash.

17
Further, the lack of digital marketing is also evident from the fact that the YouTube
channel of Baidyanath has only 392 subscribers with nil presence in other social media
platforms.

The company has also been in limelight for unethical practices wherein its past
advertisements of Chyawanprash have directly or indirectly portrayed its competitors in
bad light. The Kolkata High Court in 2021 has restrained Baidyanath Ayurved Pvt. Ltd.
from publishing or uploading any advertisement that allegedly disparages the goodwill
and the reputation of Dabur ‘Chyawanprash’.

Emami Zandu Chyawanprash

Emami was founded in 1974, provides a diverse range of products, doing 110 million
dollars of business annually, though only a portion is involved with Ayurvedic products,
through its Himani line; the company is mainly involved with toiletries and cosmetics, but
also provides Chyawanprash and other health products. Its market share is 8%.

Emami Limited with an investment of Rs 730 crore has acquired major stake in Zandu
Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and
Emami. Post the acquisition of Zandu Pharmaceuticals a century old household name
in India, some of its prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu
Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam Churna are also under
Emami’s basket of brands.

Emami’s promotional strategy has been stronger than that of Baidyanath. The company
very aggressively promoted the Chyawanprash in 2005 and was quite successful in

18
capturing a good market share. The brand has used celebrities such as Sunny Deol,
Sourav Ganguly and Shah Rukh Khan in its advertising.

A mother’s role as a nurturer & caregiver is indisputable. Through this campaign, emami
aimed to reach out to the mothers for the core product benefits.  While the Gold improves
immunity, the Silver in Sona Chandi Chyawanprash sharpens the mind, thereby helping
the mother to protect her family’s health and realise their true potential.

The company has again revamped its advertising efforts post Covid - 19 where the
demand for immunity boosting products have skyrocketed. Emami has roped in Ajay
Devgan to promote Chyawanprash in 2021. They have launched a new variation of
product which replaces sugar with Gur (Jaggery) which they are marketing to be better
than sugar.

Price Comparisons of Different Brands of Chyawanprash in market

Brand Dabur Patanjali Emami Zandu Baidyanath

Price MRP Selling MRP Selling MRP Selling MRP Selling
Qty Price Price Price Price
500gm 210 199 185 140 185 148 190 145
1 Kg 395 324 360 210 395 310 360 258

19
 STP ANALYSIS OF DABUR CHYAWANPRASH

Segmentation

Dabur Chyawanprash is the market leader in the Chyawanprash segment. It comes

under the category of health supplements. The segments that it considers are
growing kids, competitive youth, ever busy housewives and the aged.

For the growing kids: In today's competitive environment, the children are under
high pressure to excel.

For the competitive youth: Modern life keeps the youth busy and demands
them to be active and efficient.

For ever-busy housewives: The 'homemaker' needs to be fit in order to

shoulder all responsibilities.

For the aged: Old age weakens a person physically and mentally.

After segmenting the population into these categories it aims to keep them fit and
healthy.

Targeting

Traditionally, Chyawanprash was supposed to be a health supplement for the

aged and kids. Dabur Chyawanprash (DCP) is now targeting adults,
housewives, youth and kids .This it is trying to achieve through its promotion
activities by making Amitabh Bachan, MS Dhoni and Madhuri Dixit do the
endorsement act. Amitabh has been projected as a user of Chyawanprash
attempting to establish the relevance of DCP amongst the adults in today’s
demanding lifestyle. MS Dhoni who represents an urban ambitious non-user with
a mindset that Chyawanprash is not for him, meets his moment of truth when
outperformed by a young Chyawanprash user, thus reaching out to kids. His
final conversion from a non-user to a Chyawanprash user connects with the
Youth. These ads compliment each other and connect very well with the
targeted consumers

Positioning

"Andar se strong”: Dabur chyawanprash has the tag line "Andar se strong” By
using a natural language instead of scientific language it is able to connect
with the consumers and is able to achieve a better positioning in the minds of
the Indian health conscious consumer. A category like Chyawanprash for
20
instance needs to understand that in employing the category language it loses
any chance of expressing its own benefit distinctively.

Holistic Health benefit of Ayurveda : Dabur Chyawanprash helps in

stimulating immune system, relieving stress, improving stamina, fighting aging
through anti - oxidant property, improving lung function, fighting respiratory
infections & building resistance to disease. The brand conveys this health
conscious holistic view of the product.

Brand Trust: Over 100 years of Dabur’s experience in Ayurveda ensures

selection, processing and quality control of right herbs along with scientific and
clinical studies – makes DCP a trustworthy offering for consumers. Consumers
view DCP as a product by a trusted brand and therefore do not need to think
twice before making a purchasing decision.

21
Brand/ Line Extension

The original recipe of Chyawanprash has remained mostly the same since beginning.
However, Dabur has kept updating the ingredients along with changes in packaging and
punchlines.

In 2010, Dabur brought new additions to its Chyawanprash product lineup. To entice
children into consuming Chyawanprash, new flavors such as chocolate, orange and
mango were introduced into the market. They also wanted to make a point with
introduction of these flavours that Chyawanprash is not necessarily bitter and boring.

Another big area where Dabur saw opportunity was that there is a large
population of diabetics in India who are not consuming Chyawanprash
due to its sugar content. To cater to this group of individuals, Dabur has
come up with Chyawanshakti, a slight variation of Chyawanprash.
Chyawanshakti is a unique mix of herbs to help individuals combat all
pressures of life. 

Despite a washed-out Q1 due to the national lockdown, the home-grown FMCG major
registered a 10 per cent growth over the past fiscal in consolidated revenues in FY 21 at
₹9562 crore, with gross sales crossing the ₹10,000-crore mark for the first time. The
growth was mainly due to its Ayurvedic line of product ie Chyawanprash and Honey.

As Indian consumers turned to immunity-boosting remedies such as Dabur’s

Chyawanprash and Honey to cope with the once-in-a-century health crisis, the company
added a cool ₹500 crore to just its annual health supplements business.

In the pandemic year of 2020-21, Dabur fired on all cylinders to launch new products to
meet needs created by Covid-19, drastically shrinking launch process timelines. They
updated their recipe for Chyawanprash adding more herbs and releasing the tagline “3x
immunity” which was earlier “ 2x the immunity”.
22
Marketing Mix of Dabur Chyawanprash

Dabur Chyawanprash is the market leader in the Chyawanprash segment and

has achieved this with its innovative product offering, pricing strategy, easy
availability and promotion campaigns. In the marketing mix of Dabur, we shall be
discussing the 4 Ps of marketing mix with respect to Dabur Chyawanprash. The
mix shall be analyzed as followed:

 Product.

 Price.

 Place.

 Promotion

PRODUCT

Dabur Chyawanprash is the leader in the Chyawanprash category and

enjoys a market share of 65 per cent. In 50s Dabur pioneered the concept of
branded Chyawanprash and since has invested heavily in product development,
clinical studies and consumer awareness. The product is essentially a health
supplement.
Known as the “elixir of life”, Chyawanprash has (clinically) proven benefits in
maintaining smooth body functioning.

The principal ingredient Amla (Indian Gooseberry) acts as an anti-oxidant and

immuno- stimulant. Dabur Chyawanprash helps in stimulating immune system,
23
relieving stress, improving stamina, fighting aging through anti-oxidant property,
improving lung function, fighting respiratory infections & building resistance to
disease. It is these properties that make Dabur Chyawanprash a preferred choice for
its users. Dabur continuously innovates the package and branding of its
chayawanprash. It launched Dabur Chyawanprash first in 1949 in a tin pack and it
was the first branded Chyawanprash in India. Later Dabur came out with its new
packet of Chyawanprash at multiple times with Amitabh Bachchan and other
prominent celebrities as their brand ambassador. In the past Dabur has also
received “Brand Relaunch of the Year” award from IMA.

PRICE

The pricing of Dabur Chyawanprash is competitive but other brands, in order to

compete, have reduced their prices and are often found with special offers and
discounts. Dabur Chyawanprash uses second degree price discrimination i.e more
the quantity, lower the price.

24
PLACE

Dabur has a very wide distribution of its products through multiple retail outlets and
C & FA agents all over India who distribute products to the retailers. A distribution
of C & FA agents and manufacturing locations is given below.

PROMOTION

The main form of promotional activities of Dabur chyawanprash are concentrated

towards offiline and online mode of advertising

Advertising

Nothing can happen without establishing the brand’s heritage emphasizing

technological prowess, explaining benefits and building bonds with prospective
buyers. Ads are necessary because the images are still mouldable and fluid and
the consumer’s sophistication level is low. The Promotional Strategies of Dabur
Chyawanprash has already been discussed in detail above.

25
A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including a list of
some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

26
Channel of Distribution

The above diagram shows channel of distribution of dabur foods, he a re first

the products are manufactured and from Manufacturing plants the packed
goods are supplied to Clearing And Forwarding Agents(C&FA) and from here
the goods are then further supplied to number of Stockiest or Distributors, from
here goods reaches to large number of Retailers and it is the duty of Stockiest
to take orders from retailers and then supply the goods to them, this work is
generally done by stockiest salesman through ready stock or by taking orders
first and then placing the order. From here the goods finally reaches to
Customers. Customer purchases the product from retailers.

This was the basic Channel of Distribution used by Dabur Foods, now we will
throw light on each channel of distribution of Dabur Foods.

Supply Chain Management

27
Supply chain management starts before physical distribution: it involves
procuring the right inputs (raw materials, components and capital
equipment), converting them into f i n i s h e d products and dispatching them
to the final destinations. The supply chain perspective can help identify
superior suppliers and distributors and help them improve productivity, which
ultimately brings down the company’s costs.

A broader view sees a company at the center of a value network that

includes its suppliers, its immediate customers and their end customers. The
value network includes valued relations with others such as university
researchers, government approval agencies and so on.

PROCUREMENT & TRANSPORT:

Getting the raw material and packaging material requirement from the
production unit in charge

Constant updates on the procurement of materials and transport details

Production details and ingredient content information from the different personnel
and coordinating this activity

PACKAGING:

Approval and coordination of the supply of packaging material to the

production unit

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and

forwarding agents.

Clearing and Forwarding Agents is a third party and Dabur gives contract to
them, so company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.

They charge Dabur for stocking the good and even dabur don’t mind doing so as
it is a measure of cost cutting as well as there is no need for gowdowns and
maintenance. For Ghazizbad, Meerut, Delhi NCR there is one C&FA which is
situated in Mohan Nagar, here all the goods which dabur have kept.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to
them as per their order.

28
Stockiest has some sales men working under him, they are known as
stockiest sales man. Their work is to place the products in the market and take
order from retailers and then supply goods to them.

Sales man either take ready stock with them or they first take orders and then
supply goods later on.

There is a beat which is a schedule route of sales man, means sales man has
to daily cover the route as mention in the beat.

Merchandising, making products visible, pasting posters, putting banners, and

seeing that goods are properly placed in the retail outlets is also the duty of
stockiest sales man.

Companies’ sales officer keeps a check on the stockiest and monthly report is
also prepared which is further analyzed by ASM & ZSM. In Sahibabad Dabur
has 1 stockist, and in Ghaziabad 1.

RETAILERS

Retailers are backbone of the company as they are the one who can take the
product on new heights or can bring it down to toes.

Stockiest supplies goods to retailers and tries Persuading retailers to give the
brand special displays (using merchandising tools) to get affective brand
presence, and arranging it in more noticeable manner.

Classification of outlets in different type of markets is different according to

their sales volume.

TYPES OF RETAILS OUTLETS

Class Average Monthly Business

A Above 10,000
B 5,000-10,000
C Upto 5,000

Margin of retailers is always higher than stockiest. Retailers are the one who
have direct contact with the customers.

Dabur Foods has a distribution network that covers 175 towns and 75 thousand
retail outlets making its product available to the consumers across the country
at ease.

29
Unethical Practices

In the world of growing competition companies sometimes knowingly or unknowingly

use practices promotional activities that can be termed as “unethical”. Although, in the
past Dabur has moved to court against the unethical practices being followed by its
competitors but even dabur has not been immune to such practices.

Between there has been a trend of competitive advertising in Chyawanprash in which

companies are downplaying and criticizing the competitors. Though quite old, this
trend caught momentum when Patanjali Ayurved Limited, a new player in the market,
started advertising aggressively in 2015–2016. It resulted in many complaints by the
aggrieved parties in the industry bodies and different courts of law in India. A part of
the confusion comes from the diversity of advertising regulations across different
Indian platforms and the absence of a clearly defined institutional framework for
resolving such disputes. Consequently, most such disputes land up in the court of law
in India.

One such instance was when in year 2017 Dabur legally raised complaint against
Patanjali Chyawanprash. Dabur claimed that bottle of Patanjali Chyawanprash was
deceptively similar to the “trade dress (packaging)” used by Dabur for its
Chyawanprash and the advertisement is aired solely with the view of disparaging its
reputation.

During the Pandemic, when Immunity Booster became the keyword, companies
started to market their Chyawanprash aggressively. Dabur came up with the
advertisement endorsed by Akshay Kumar with a tagline that “Protection against
COVID-19 with 02 Spoons of Chyawanprash daily”. Dabur claimed that
they have conducted clinical study across 5 centers. The company also gave the
breakdown as shown below wherein out of 696 participants people who consume
Chyawanprash daily inly 2.38% tested covid positive, rest were not. And the other
group who did not consume Chyawanprash had 28.57% person tested positive,
claiming 12 times lesser COVID-19 infections.

There was a big backlash in the market due to this claim of Dabur as at that time no
treatment was available in the market. Infact a few days after this advertisement
Akshay Kumar, who was endorsing this advert got infected by Covid -19.

This advertisement also drew flak from the Advertising Standards Council of India
which suo moto registered a complaint against the advertisement. We looked at

30
Dabur’s claim and the general efficacy of Chyawanprash in preventing COVID-19 and
found no scientific evidence in the form of published peer reviewed articles. 

In addition, there was no mention of details of how the study was undertaken and on
what basis/ guidelines.

The advertisement was later retracted by Dabur from their twitter page and the
company then also published the study on their website. However, the same was
criticised by many and was called “flawed”

The chairperson of a renowned Hospital chain mentioned that “There are two potential
flaws in the study. The first is the blinding of the trial. Since it is an open label trial,
where patients and investigators both know where Chyawanprash is being
administered or not, biases can creep in. A simple way to solve this would be to give a
dummy product that looks and tastes similar to Chyawanprash to the control group
and either single blind or double blinded trial being conducted using it”.

31
Conclusion

Dabur Chyawanprash has clearly a head start advantage and has already
acquired the 65% of the market share while others enjoy a very minor segment of
the market share. This could be well attributed to Dabur successful ATA
(Availability, Taste and Affordability) marketing module, the attributes most rated
by the consumers. Aggressive publicity, Online and Offline promotions and
innovative marketing Strategy have been the most important factor in the growth
progress of the Chyawanprash brand.

32