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1.1 Company Overview

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, ranging from hair care to honey, Dabur has consistently ranked
among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never
cause one harm.

The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask “What does
Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s fourth
largest fast moving consumer goods company that both consumers and trade respect and trust
unequivocally, and which has an annual turnover of over Rs 15 billion.

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 is an abundance of
information for its investors and prospective information including a daily update on the share price
(something that very few Indian brands do). There’s a great sense of responsibility 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.

1.2 Company History

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1884 Birth of Dabur

1896 Setting up a manufacturing plant

Early 1900s Ayurvedic medicines

1919 Establishment of research laboratories

1920 Expands further

1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi

1979 Sahibabad factory / Dabur Research Foundation

1986 Public Limited Company

1992 Joint venture with Agrolimen of Spain

1993 Cancer treatment

1994 Public issues

1995 Joint Ventures

1996 3 septante divisions

1997 Foods Division / Project STARS

1998 Professionals to manage the Company

2000 Turnover of Rs.1,000 crores

1.3 Product Line

Foods
• Real
• Real Activ
• Hommade
• Lemoneez
• Capsico

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Health Care
Baby Care

• Dabur Lal Tail

• Dabur Baby Olive Oil
• Dabur Janma Ghunti

Health Supplements

• Dabur Chyawanprash
• Dabur Glucose D

Digestives

• Hajmola Yumstick
• Hajmola Mast Masala
• Anardana
• Hajmola
• Hajmola Candy Fun2
• Hajmola Candy

• Pudin Hara (Liquid and Pearls)

• Pudin Hara G
• Dabur Hingoli

Natural Cures

• Shilajit Gold
• Nature Care
• Sat Isabgol
• Shilajit
• Ring Ring
• Itch Care
• Backaid
• Shankha Pushpi
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 • Dabur Balm
• Sarbyna Strong

Personal Care
Hair Care Oil

• Amla Hair Oil

• Amla Lite Hair Oil
• Vatika Hair Oil
• Anmol Sarson Amla
• Anmol Silky Black Shampoo
• VatikaHennaConditioning
Shampoo
• Vatika AntiDandruff Shampoo
• Anmol Natural Shine Shampoo

Oral Care

• Dabur Red Gel

• Dabur Red Toothpaste
• Babool Toothpaste
• Dabur Lal Dant Manjan
• DaburBinaca Toothbrush

Skin Care

• Gulabari
• Vatika Fairness Face Pack

1.4) Advertisement objectives:

 To provide rationalizations for buying (i.e., “socially acceptable" excuses)

 To combat or neutralize competitors advertising efforts

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  To improve the morale of dealers and/or salesmen

 To acquaint buyers and prospective buyers with new uses of the product.

1.5) Advertising agencies used:

The ad agencies that are responsible for creating and designing the dabur ad’s
are:

 Ogilvy & mather

 Mccann Erickson india

 Mudra communications

 Leo burnett

 Contract advertising

 Bates david enterprise

 J walter Thompson

1.6) Media used and media vehicles:

 Print media-News papers, magazines.

 Broadcast media- TV commercials, internet, radio, etc

 Outdoor media- Hoardings, banners.

1.7) Advertisements and advertising appeals:

 Dazzl dish clean

 Dabur red toothpaste

 Dabur amla hair

 Dabur chawanprash

 Laxative nature care

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  Dabur shilajit

 Dabur ayurvedics

 Aphrodisiac

 Herbal restorative

These advertisements have:-

 Rational appeal

 Personal appeal

 Brand appeal

 Youth appeal

1.8) Brand ambassadors selected:

 MS Dhoni

Dabur India said, "We, and our consumers, believe that there is a great fit between
what MS Dhoni stands for and what consumers expect from Dabur. We look
forward to a match winning partnership between Dabur and Dhoni."

 Zaheer Khan
The new Dabur Glucose campaign, featuring Zaheer Khan, makes an aggressive
attempt to establish the ‘zabardast energy’ property of Dabur Glucose in today’s
increasingly tough and demanding lifestyle. The campaign shows that an when an
individual gets tired he is both physically and mentally exhausted. It then
establishes how Dabur Glucose instantly replenishes the lost energy, making you
a powerhouse from head to toe.

 Bipasha Basu

Bipasha Basu is India’s bollywood actress and health & fitness icon. Bipasha will
help establish an instant connect between Meswak’s values and the Indian
masses,”

 Sonakshi Sinha

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 “Fem has been the pioneer in bleach category in India for more than two decades
now and enjoys over 55% share of the bleach market. The brand Fem personifies
attributes like Youthful, Contemporary, aspirational, confident & expertise. The
face of the brand that lives up to these attributes is the cine celebrity Sonakshi
Sinha, who clearly epitomizes Fem’s personality. Sonakshi imparts mass appeal,
youthfulness and a spirit of achievement to the brand

 Some of the Beauties associated with Dabur Amla Hair Oil - Jaya Prada,
Sridevi, Juhi Chawla and now, Karishma Kapoor, Preity Zinta..

1.9) Advertising Spending:

Fast-moving consumer goods (FMCG) majors are boosting their advertising
budgets to drive volumes in an increasingly competitive market.

For instance, the Godrej group is hiking its advertising spend by 30% across all
companies in its fold this year, while ITC Foods is increasing its ad budget by 70% to
woo new consumers. Last year, Godrej Consumer Products Ltd (GPCL) and Godrej
Industries had spent over Rs 68 crore on advertising, while ITC Ltd’s ad spend stood at
Rs 225.73 crore.

Yet another FMCG major, Marico, is also planning to increase its ad spend from
8% of total sales to 12% this year. Rival Dabur India, too, is hiking its budget 15% to
pump up volumes. Last year, its ad spend stood at Rs 151 crore. Clearly, companies are
vying to gain visibility in this overcrowded sector. The Rs 69,000-crore FMCG industry
has registered healthy sales growth across categories in Q2 of the current financial year.
According to analysts, the big companies are hiking their ad budgets to further boost
sales. “Compared with the last financial year, ad budgets now seem to be on the rise. We
expect an average 25% hike this year,” an analyst said.

On the company’s ad strategy, Ravi Naware, divisional chief executive, ITC

Foods, said, “With our new product launches, we are increasing our ad spend by 70% this
year. We are gearing up to launch a multi-media ad campaign (featuring Sachin
Tendulkar) to announce the launch of ‘Sunfeast Sachin Fit kit’ within three months.”

Along with its brand identity makeover, the Rs 6,200-crore Godrej group is
planning to increase its ad budget 30% this quarter. As for Hindustan Lever Ltd (HLL)'s
strategy, D Sundaram, director-finance, said, “To boost sales, we will continue to invest
in advertising & promotions (A&P). Advertising will continue to be the larger chunk of

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our A&P spend.” HLL’s ad spend stood at Rs 1,005.67 crore in 2005 compared with Rs
835.98 crore in 2004.

On Dabur India's advertising plans, Amit Burman, chief executive officer, Dabur
Foods, said the company was increasing its ad spend by 15% to popularise its brands in
this financial year. “We will be spending an equal amount on mass media ads as well as
below-the-line advertising for Dabur Foods,” he added.

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 2.1 Company Profile
Established in 1897, the Godrej group has grown in India from the days of the charkha to nights
at the call centers. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent
inventor and a strong visionary who could see the spark in the future. His inventions,
manufactured by his brother Pirojsha Godrej, were the foundation of today’s Godrej empire. One
of India’s most trusted brand, Godrej enjoys the patronage and trust of over 470 million Indians
every single day. Our customers mean the world to us. We are happy only when we see a
delighted customer smile.

With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances,
furniture, security and agri care – to name a few – our turnover crosses 2.6 billion dollars. You
think of Godrej as such an integral part of India – like the bhangara or the kurta – that you may
be surprised to know that 20% of our business is done overseas. Our presence in more than 60
countries ensures that our customers are at home with Godrej no matter where they go. With
brands you can believe in, service excellence you can count on and the promise of brighter living
for every customer, Godrej knows what makes India tick today.

Today, we are at a point in Godrej’s history when our amazing past is meeting up with its
spectacular future head on. Godrej is learning and relishing being young again.

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2.2 Product Mix of Godrej:

Godrej has diversified his business in electronics into many units’ i.e. Home appliances,
Furniture’s goods, security equipment and Material handling equipment. It also diversified is
businesses to Fmcg and real estate business. In home appliances more than 70% of revenue is
achieved through Refrigerator. Godrej Mission is to operate in existing and new businesses
which capitalize on the Godrej brand and corporate image of reliability and integrity. Its vision is
“Godrej in every home and work place”. Godrej objective is to delight its customer both in India
and abroad. Godrej shall strive for excellence by nurturing, developing and empowering its
employees and suppliers. It motto is “We care the quality of your life”. Having a wide range of
product line is an added on advantage to this company. Recent expansion of Godrej real estate
business has a greater advantage since their home appliances, furniture and Security equipment
can be used in their business, and because of their real estate business they earn more profit to
their own company.

Appliances:
Refrigerators, Washing Machines,Air Conditioners, Microwave Ovens and DVD Players

“Interio” Office & Home Furniture :

Office Furniture - Desking, Seating, Open Plan Office Systems, Computer furniture and
Storages; Home Furniture -Living, Dining and Bedroom furniture; Kitchen cabinets. Laboratory
furniture; Marine accommodation; Healthcare furniture; Turnkey interiors; Carpet tiles;
Mattresses.

Locks:
Padlocks, Furniture locks, Mechanical and electromechanical door locks, Door Controls,
Architectural and Glass Hardware

Security Equipment & Solutions:

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Strong Room Doors, Safe Deposit Lockers, Cash Boxes and Coffers, Data/ATM Safes, Burglary
and Fire Resisting Safes, Record & Filing Cabinets, Electronic Coffers, Currency Sorters and
Cash Counting Machines, Fire/Security Doors, Fire and Burglar Alarm/Premises Security
Systems, Video Door Phones, CCTV System, Access Control Systems

Prima Office Equipment:

Office Automation Products – Multifunction Devices, Printers, Fax & Typewriters;
Conferencing Products & Solutions – Projectors, Plasma Displays & Electronic Print boards,
Audio & Video Conferencing Solutions; Vending Machines and Services

Storage Solution:
Multiflex and Heavy Duty Storage Systems, Tool Storage Cabinets, Gravity-flow, Mobile and
Drive-in System Components, Mezzanine Floors, Cantilever Storage Systems, Workshop
Equipment, Special Warehousing Solutions and Warehouse Consultancy.

Material Handling Equipment:

Forklift Trucks ( Diesel, Electric and LPG ) and Attachments, Container Handling Trucks,
Warehousing and Personnel Access Equipment, Spare Parts, Services and Maintenance
Contracts.

Industrial Products:
Precision Tooling’s (Press Tools/Plastic Injection Moulds/Vacuum Forming Moulds/Pressure
Die-Casting Dies), Special Purpose Machines, High Precision Components/Equipment for
Engineering and allied industries, Sheet Metal Working Machines – Sales and Service

Process Plant & Equipment:

High Pressure Vessels, Reactors, Shell & Tube Heat Exchangers, Distillation/Fractionating
Columns/Towers, Secondary Reformers, Fermentors, Reactors/Tower Internals and Waste Heat
Boilers

Construction & Real Estate:

Ready Mix Concrete, Construction Projects, Property Development, Horticulture and Envirotech
Services

Electrical & Electronics:

Busbar Power Distribution Systems, Compressors and Compressed Air Control Systems,
Electronic Technology Solution Provider, Energy Conservation Services, Turnkey Electrical
Contracts and Power Infrastructure projects.

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2.3 Marketing Mix of Godrej:

Product: Godrej product is there in much kind of businesses namely Home appliance
(Refrigerators, Air-conditioners, Washing machine, Microwave and DVD’s), FMCG (Cinthol,
Hershey’s chocolate syrup, Good knight, Hair color and hair dye), Agri (Animal feeds, Oil
palms, Plantation, Agro chemical and poultry), Furniture (Cup board, chairs, beds, Carpets and
interior decoration), Real estate (Residential, Commercial and township) Security solution
(Safety lockers, Banking automation product and electronic security system). Their product is
very much trusted by people. It had created good brand loyalty over the periods. It has been form
the late 1897. In home appliances more than 70% of his revenue comes from Refrigerators. In
FMCG they achieve most of their revenue through hair color and dye. Almost many of the
companies and firms and banks use Godrej security system because it is a trusted one also same
in the case of doors and locks which is used in houses also.

Price: There are many ways to price a product, they are Premium pricing, Penetration pricing,
Economy pricing, Price skimming, Psychological pricing, Product line pricing, Optional product
pricing, Captive product pricing, Product bundling price, Geographical pricing and Value pricing
but Godrej philosophy had all been to deliver value for money to its customers despite being
priced economically, Godrej maintained his product quality, so that is the reason many of the
people do not consider about the price when they go for brand godrej.
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Place: It is also known as channel, distribution, or intermediary. It is the mechanism through
which goods/services are moved from the manufacturer to the consumer. Godrej home
appliances are sold in retail outlets like Vivek&co, Vasanth&co. and Girias etc… In the case of
Fmcg product it is given to the small store to big retail store like Big Bazaar through theirs
distributors allocated in each state or city. In the case of security system and doors it is available
in hardware stores and security system and banking automation services is fitted directly by
Godrej. Godrej & Boyce Mfg.Co.Ltd has a network of 38 companies-owned showrooms and
more than 2200 Wholesale dealers and more than 18,000 Retail Outlets.

Promotion: This includes all of the tools available to the marketer for ‘marketing
communication’. Promotions are done in four ways Advertising, Public relations, Personal
selling and sales promotion. Godrej has a unique way of advertising their product. For example
their DVD’s advertisement is considered has funny advertising amongst the people. They
advertise their Fmcg and home appliances product through outlets, through big banners in
important cities, through television and internet advertisement and they have their own company
websites through which people can get to know about all the products of godrej and also about
their companies.

2.4 Advertisement objectives:

 To increase customer preference for the organization’s services.

 To increase customer loyalty to the organization.

 To encourage customers to switch from using a competitive organization.

 To convince customers to book at the organization now or in the future.

 To change customers’ perceptions.

2.5 Advertising agencies used:

The ad agencies that are responsible for creating and designing the dabur ad’s are:

 JWT

 Mudra communications
The TV Commercial titled Godrej Ezee was done by Mudra DDB Group advertising agency for
product: Godrej Ezee (brand: Godrej) in India. It was released in the Nov 2010. Business sector is:
Household maintenance & pet products.

The Print Ad titled Thorn was done by JWT, Mumbai advertising agency in India. It was released
in the May 2010. Business sector is: Household maintenance & pet products.
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 The TV Commercial titled Nuclear Plant was done by JWT, Mumbai advertising agency for
product: Godrej Home Safes (brand: Godrej) in India. It was released in the Apr 2010. Business sector is:
Home appliances & furnishings.

2.6 Media used and media vehicles:

 Print media-News papers, magazines.

 Broadcast media- TV commercials, internet, radio, digital etc

 Outdoor media- Hoardings, banners.

2.7 Advertisements and advertising appeals:

 Good Knight Advance

 Fair Glow

 Godrej EZEE

 Godrej No.1

These advertisements have:-

 Rational appeal

 Personal appeal

 Brand appeal

 Youth appeal

2.8 Brand ambassadors selected:

 Preity Zinta

Godrej and Boyce has roped in Bollywood actress Preity Zinta as brand ambassador for
the appliances division.
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 Though Preity will promote Godrej's entire appliance range, the major thrust will be on the
EON line. The company has decided to spend nearly 4% of its turnover for advertising
purpose.
The appliances division of Godrej & Boyce will extend the recently launched EON brand
for its entire product basket. The company, which launched a new line of refrigerators and
microwave ovens under the premium EON brand, will extend the brand to other product
segments, including air-conditioners, washing machines and DVD players.

 M.S. Dhoni
The confectionary major, Godrej Hershey Limited, with a turnover of Rs.400
crore, is looking to increase its revenue in the sugar candies segment by using a mixed
strategy. While the company has launched lollipop at half the price of the competition -
Re.1 - it plans to do the opposite in the hard candies segment launching variants at price
points of Re.1 and Rs.2.

 Hrithik Roshan

Cinthol soap recorded sales of Rs 80 crore (Rs 800 million) last year, which the
company plans to double by year-end. "Cinthol is viewed as a masculine brand and we
intend to expand it to adjacent categories. We are hoping that our association with Hrithik
will make a connect with consumers in both rural areas and urban areas," said Rakesh
Kumar Sinha, COO, (Marketing and Operations), GCPL.

2.9 Advertising Spending (As of May 13, 2009):

Falling advertising rates and focus on improving operating margins saw FMCG (fast
moving consumer goods) companies reduce their ad spending during the January to March
quarter, said sector experts.

Advertising and marketing (A&M) spending for Godrej Consumer Products (GCPL)
dipped 85 per cent, Marico’s ad spends were down by 20 per cent and Emami’s were down by 7
per cent. Hindustan Unilever’s spending saw an increase of 3 per cent, but as a percentage of net
sales, its advertising and promotions spending was down 40 basis points for the January to
March quarter as compared with the corresponding quarter of the previous year.

The increase in focus on improving operating margins came as 2008-09 saw input and
raw material prices rise considerably. Also, spending meant for the Indian Premier League (IPL)
cricket tournament-related advertising has been shifted to the current (April-June) quarter due to
the postponement of the event.

For instance, GCPL recorded an 842 basis points (bps) rise in raw material costs during
the quarter as it had not benefitted from falling commodity and raw material prices. Likewise,
Marico’s raw material costs were higher by 186 bps.

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 HUL, which is losing market share to rivals in soaps, skincare, detergents and oral care
segments, has also seen a fall in volumes sold over the past five quarters, year on year. There
was 10 per cent growth in the January-March 2008 quarter compared to a year before, 8 per cent
growth in the next quarter and so on to 6, 2 and now -4 in the just-concluded quarter. Yet,,
operating profit margins have expanded a remarkable 300 basis points to 13.8 per cent during the
quarter. This expansion, say analysts, is on account of lower raw material expenses and 40 basis
points savings on ad spends.

“Falling commodity prices will benefit some FMCG firms only in the current quarter.
Hence, a firm like GCPL and Marico have reduced their ad spends as their gross margins were
under pressure,” said Abhijeet Kundu, vice-president (research), Antique Stock Broking.

Companies have also benefited from lower media spot rates. “For every rupee that
companies spend, the returns are 120 per cent,” said Ambi M G Parameswaran, executive
director and chief executive officer, Draft FCB Ulka.

Additionally, at GCPL and Emami, the dip in spends was a conscious decision taken in
view of the larger campaigns scheduled for the coming April-June quarter. “We jave cut ad
spends during this quarter as we gear up for Indian Premier League-related promotions in the
coming quarter,” Adi Godrej, chairman, Godrej Group, had told Business Standard in a recent
interview.

Emami is gearing up for the summer months (April-September) with a Rs 60-70 crore ad
budget, a sequential increase of over 50 per cent over the A&M spending of Rs 20.45 crore for
the January to March quarter. In the coming months, Emami will air three new television
commercials for its Navratna Cool Talc with Shah Rukh Khan and Navratna Oil with Amitabh
Bachchan. Besides, there will be a campaign for the Boroplus range with Kareena Kapoor.

“Emami is targeting Rs 300 crore in sales in the summer season. Apart from mass media
marketing, we will market directly through door-to-door and in-shop promotions. Other below-
the-line activities will also take place in key outlets, colleges, trains and rural markets, supported
by massive campaigns in district-level newspapers and the electronic media”, said Aditya
Agarwal, director, Emami Group of Companies.

In the October to December quarter, Colgate Palmolive, which is yet to announce its
results, saw 26 per cent drop in its A&M spend. HUL’s ad spend also recorded a marginal dip of
close to 2 per cent during the December quarter.

However, Dabur and Proctor & Gamble were exceptions, with increased A&M spends of
30 and 47 per cent, respectively, during the January to March quarter. Dabur had launched a food
drink, Chayawan Junior, Vatika’s enriched Almond Hair Oil and Total Protect Shampoo.

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