Topic Page 1. Executive Summery 2. Introduction 3. Dabur India Limited • Corporate Profile 5 • Dabur at a Glance 7 • Brief History 10 • Distribution Network Of Dabur 13 4. Objectives Of The Study 5. Research Methodology • Sampling Techniques 20 • Methodology Of Data Collection 21 6. Data Analysis & Interpretation • Availability Analysis 23 • Availability of Products Analysis 25 • Coverage Analysis 28 • Retailer’s Transportation Mode Analysis 30 • Village wise Sales Analysis 31
number 1 2
7, Feasibility of New Substockists 8. Village Wise Findings 9. Findings 10. Suggestions 11 Conclusion 12. Bibliography 13. Questionnaire
33 34 38 40 41 42. 43
Gone are the days when a rural consumer went to a nearby city to buy’ branded products and services". Trends indicate that the rural markets are coming up in a big way and growing twice as fast as the urban, The business potential in rural India has been attracted huge revenues from all around globe and thereby proving India as hot destination to investment. In India there is around 68% of population living in 593731 villages consisting of 732 million populations living in 144 million households. There are many impulses which urge companies to go rural. According to NCAER (National Council for Applied Economic Research) study 2006-07 there are around 66.3% of total population are middle class families. Again 23.6% are high income group which is going to be more than double by 2015. This clearly indicates the huge potential of middle income group to be targeted by marketing person. Moreover the IT penetrations have helped them to grow. Today (2006-07) over 15 million villagers are aware of internet and over 300000 have already been used it. This figure is estimated to be double in 2-3 years. The average household income in rural India is Rs 40309/- out of which 71.2% is disposable. This apparently is the result of development work which happened under various 5 year plans and other social development plans like, land reformation, rural electrification, rural communication, rural credit facilities and etc. The absolute size of rural market is thus expected to double to that of urban
market in India. But, despite high rural share in these categories, the rural penetration is low, thus tremendous potential for growth. This becomes amply clear that the rural India is the hot target for FMCG companies. They are already busy in formulating their rural marketing strategy to tap the potential even if there is strong competition to chase in. The Indian FMCG industries turnover is estimated to be Rs. 86000crore in 2008-09 which was Rs. 48000crore in 2004-05. This sows almost two fold increase over 4 years. According to The Business Line – 13th April 2009 India’s FMCG industry is estimated to be Rs. 200000crore from which the domestic consumption is Rs. 171890crore and the growth projection over 10 years for rural is 40% while it is 25% for the urban market in India. In this context, Dabur India Ltd. The 4th largest FMCG Company in India is continuously upgrading its rural presence over the years applying its unique corporate rural strategy looking at its lucrative growth opportunities. This project will give the necessary documentation of these strategies later on.
Dabur India Ltd-Corporate Profile
Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of about US$600 Million (over Rs 2834 Crore) & Market Capitalisation of over US$2.2 Billion (close to Rs 10,000 Crore). Building on a legacy of quality and experience for over 125 years, Dabur is today India’s most trusted name
and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur'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, Real for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets. Dabur's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stands at over Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover. The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a familyrun business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation.
Dabur At a Glance
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves. ✔ Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09) ✔ 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) ✔ 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).
✔ 17 ultra-modern manufacturing units spread
around the globe ✔ Products marketed in over 60 countries. Consumer care division (CCD) addresses consumer needs across the FMCG spectrum through 4 distinct portfolios of
Personal care, Health care, Home care & Foods. Master brands: ○ Dabur - Ayurvedic healthcare products.
○ ○ ○ ○
Vatika - Premium hair care. Hajmola - Tasty digestives. Real - Fruit juices & beverages. Fem - Fairness bleaches & skin care products.
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Real, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day Leader in herbal digestives with 90% market share Consumer Health Division (CHD) offers a range of classical Ayurvedic medicine and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats
○ Has more than 300 products sold through prescriptions as well as over the counter
Major categories in traditional formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care Isabgol
- Madhuvaani - Trifgol
Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika. ○ Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales
○ Leveraging the 'Natural' preference among local consumers
to increase share in personal care categories
○ Focus markets:
GCC Egypt Nigeria Bangladesh Nepal US
○ High level of localization of manufacturing and sales &
The evolution of Dabur is quite interesting and its root takes us back to the 19th century where it all started in Bengal by a visionary by name Dr. S.K Burman, a physician by profession. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervor, 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. The name is formed by joining the first half of Daktar and Burman. Milestones:• 1984 - Set up in 1884 to produce and dispense ayurvedic medicines to a wide mass of people who had no access to proper treatment by Dr, S.K.Burman in small Calcutta pharmacy. • 1896 – With popularity of Dabur products increasing, Dr. S.K. Burman expands his operations by setting up a plant for mass production.
Early 1900s – Entered the specialised area of nature based Ayurvedic Medicines(for which there was no standardised drugs were not available)
1919 – The need to develop scientific processes and quality checks for mass production of ayurvedic medicines led to the establishment of research laboratories. • 1920- By setting up manufacturing units at Narendrapur and Daburgram and distribution spread to neighboring states like Bihar and north-east.
1936 – Dabur became a full-fledged company-Dabur India (Dr.S.K.Burman) Pvt. Ltd. • 1972 – Shifted operations to Delhi by setting up a manufacturing plant in Faridabad.
1979 – Dabur Research Foundation launches of fullfledged research operations in the field of health care and also setting up Sahibabad factory for commercial production. • 1986 –Became Public Limited Company Dabur India ltd. came into being after reverse merger with Vidogum limited.
1992 – Entered a strategic partnership with Agrolimen of Spain. (To manufacture and market confectionery items in India) • 1993 – Entered specialised health care area of cancer
treatment with its oncology formulation plant at H.P • 1994 – Raised its first public issue, due to market confidence in the company shares issued at a premium were oversubscribed 21 times. 1995 – Joint ventures with Osem of Israel for food and Bongrain of France for cheese and other dairy products. • 1996 – Three separate divisions were created according to their product mix – Health Care products division, Family products division and Dabur ayurvedic specialities limited.
1997 – Dabur entered the nascent processed food market with the creation of Food division / project STARS, strive to achieve record successes. • 1998 – Professionals to manage the company to inculcate a spirit of corporate governance and for the first time, a non-family member became the CEO of Dabur.
2000 – Entered the august league of large corporate businesses along with market leadership and a turnover of 1000 crore. • 2003 – Dabur demerges pharma business from the FMCG business into a separate company so as to concentrate on both the business.
• • • •
2005 – Acquired Balsara and entered the oral care and household healthcare market in India. 2005- Company announced a 1:1 bonus share to its shareholders after 12 years. 2006 – Dabur crossed the 2 billion US dollar market capitalization and adopted US GAAP in line with its commitment to follow global best practices and allow a transparent work culture. 2007 – Forayed into organised retail, H&B stores ltd. and also Dabur India merged with Dabur foods. 2008 – Acquired FEM care pharma a leading player in the women’s’ skin care market. 2009 – Dabur Red toothpaste joins “billion rupee brand”
• • •
2009 – Celebrated 125 years of existence.
Distribution Network: Route to Market
Substockist Retail Trade Shopper s & Consumer
DISTRIBUTION NETWORK USED BY DABUR INDIA LTD
Distribution is all important links between a manufacturer and his customer. The concern is for designing a distribution strategy to facilitate the smooth physical flow of products from the manufacturer to the purchasing point of customers. Channel of distribution refers to the alternate path through which goods can be routed. Thus the path verily defines the flow of product from point of production to the point if purchase. In the current customer focused and shrinking lead times, business success is derivative of the organization efforts to transfer their resources- tangible and intangible to deliver right product at the right time. It can also be said as the organizations growth and success largely depends upon its selling and distribution strategy. In this context Dabur has managed a quite well distribution network meeting its corporate strategy both for the urban as well as for the rural. Hence, its rural strategy gives most emphasis on its distribution strategy for effective penetration in the targeted area of operation. Let’s discuss the distribution structure of the Dabur India Ltd. For rural as well as for the urban areas.
URBAN DISTRIBUTION CHANNEL
This is divided into two parts, viz: above 5 lakhs of population and between 1 to 5 lakhs of population. This segment is totally covered by the direct stockist. In the segment of above 5 lakhs there are three ways of covering the market, viz: Beat wise, Line wise & Channel wise distribution while in the segment of 1 to 5 lakhs of population there are two ways, viz: Channel wise & Beat wise.
CHANNEL WISE DISTRIBUTION
Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc. LINE WISE DISTRIBUTION Here the total product is divided into different lines like, hair care, body
wash, coconut oil, nutrition food and etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the total products are served to all the outlets exist in that area. RURAL DISTRIBUTION NETWORK Under rural distribution network, the whole market is served by three parties, viz: Sub stockist, Rural Direct Stockist and by the Dabur network itself. The Sub stockist get the required product through the super stockist which again covers the Dabur itself segment. The Rural Direct Stock segment is covered by the direct stockist who serves the whole urban distribution. The Sub stockist uses the Sub van mode of transportation while the Rural direct stockiest uses the Direct Van to cover his area. (See the picture above) Dabur is continuously monitoring its channel members to ensure the speed and accuracy in its service to its ultimate customers. The key customers for Dabur are Whole seller, Small Outlets and the Chemist. Dabur has continuously focusing on these key customers and tried to satisfy them over the years to sustain in this industry.
OBJECTIVES OF THE STUDY
To find out new business opportunity in Rayagada district of rural Orissa for Dabur India ltd.
• To analyze the availability and visibility of Dabur products in Rayagada district. • Coverage analysis of Dabur in rural market of Rayagada district. • To find out feasibility of new sub stockist in rural market of Rayagada district.
Types of Business Research Basically researches are catagorised into four major categories A. descriptive & Analytical B. Applied & Fundamental C. Quantitative & Qualitative D. Conceptual & Emperical A. Descriptive research Descriptive research includes surveys & fact finding enquiries of different kinds. The major purpose of this research is description of the state of affairs as it exists at present. In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you. For example, finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease thus; more people will live a healthy life. Analytical Research
On the other hand this uses the facts & information already available, analyses these to make a critical evaluation of the material B. Applied Research Applied (or action) research aims at finding a solution for an immediate problem that a society/industry/business is facing. Fundamental Research Fundamental (or basic or pure) research is directed towards finding information that has a broad base of application and thus, adds to the already existing organized body of scientific knowledge. C. Quantitative Research It is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative Research On the other hand, it is concerned with qualitative phenomenon. D. Conceptual Research It is related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. Empirical Research On the other hand, it relies on experience or observation alone, often without due regard for system and theory. It is data based research, coming up with conclusions which are capable of being verified by observation or experiment. Apart from the above types, the other type of researches includes • Exploratory research • Historical research • Field setting research or Laboratory research or Simulation research. • One time research or longitudinal research. Here the research is descriptive in nature.
Sampling technique available can be broadly classified as 1. Probability Sampling:- here the every item in the universe have the equal chance of inclusion in the sample. 2. Non Probability Sampling:- Here the item in the sample are deliberately selected by the researcher. Again both are classified as follows Probability Sampling ➢ Simple Random sampling ➢ Complex random Sampling • Cluster Sampling • Systematic Sampling • Stratified sampling • Area Sampling • Multi-stage Sampling • Sampling with probability proportional to the size Non-probability Sampling ➢ Haphazard or convenience sampling ➢ Purposive sampling • Quota Sampling • Judgment Sampling As in the given project the sample consider is specific to a predetermined area (Rayagada District) of Orissa.
Sampling technique used in my research is non probability via quota Sampling.
METHODOLOGY OF DATA COLLECTION
A Survey passes through several stages and analytical path. Hence a scientific methodology was chosen for the survey, which is:1. Planning the survey. 2. Sources of Data Collection. 1. Planning the Survey Before conducting the survey there was some planning. These include:a) Specification of Objectives. b) Scope of the Study. a) Specification of Objectives The study has been conducted with the objectives which have been assigned by the company. b) Scope of the Study i) The Survey was limited to Rayagada district of Orissa only. ii) The focus is on rural villages with population 3000 to 5000. iii) The main theme has been emphasized on the distribution channel, rural distribution network and the new opportunities available in rural villages. iv) The Survey period was only for one and a half month. v) 104 selected outlets (who can keep FMCG products in their shop) including 13 medical shops in 7 villages were surveyed. Sources of Data Collection Survey is conducted on two sources of data collection:a) Primary data b) Secondary data Primary data Looking into the objectives and information’s needed, I have chosen following two methods as per the response of the subject:i) Questionnaire method. ii) Personal Interview and Discussion. Questionnaire method.
2. My a)
Questionnaire was prepared by the Surveyor. The objectives, essence and mode of Survey were communicated to us. Personal Interview on Discussion I have taken the opportunity to discuss and take personal interview wherever it was essential. The strategy was adopted for better clarity and avoids confusion. This has supplemented the Questionnaire in a purposive manner. Secondary data The Secondary data were mainly collected from different books, magazines, Journals, company’s Literature, Newspapers and from Internet.
DATA ANALYSIS AND INTERPRETATION
Many companies targeting to the rural part of India due to untapped large population \are always search for more effective, efficient and innovative idea to increase their accessibility to rural market, which will ultimately increase the availability, visibility and sales of their products. In this part we will cover the Availability and Visibility of the Dabur product, Coverage analysis and the feasibility of new sub stockists in the field for Dabur India ltd. This study is confined to the villages where the population is within 3000-5000, where Dabur India seriously wants to structure these potential markets. There are seven villages have been studied in the Rayagada District of Orissa State. AVAILABILITY ANALYSIS There are 104 outlets where Dabur India is preset in 86 outlets. These shows the availability is 83%.
Available Not Available
No of Shops 86 18 104
%ge 83 17 100
From the data available it has found that from the sample of 104 outlet chosen for the research the outlet which are capable of or keeping the FMCG product. Among the 104 outlet 86 of them keeping the product of Dabur whereas 18 of them are not keeping the products, i.e. the availability of Dabur is around 83%, Most of them are covered indirectly. Now if Dabur can cover it through the direct Channel like Sub stockist, distributer,it can be a greatest opportunity to increase the sales.
AVAILIBILITY OF DIFFERENT PRODUCTS ANALYSIS
This study shows the brand wise analyses which are available to the observer in the outlets he had covered during his visit to that place. There are 16 brands included here looking at the product availability in the rural India
Total number of outlets 86
Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Name of the Product Gulabari Shank pushpi Sat isabgul Pudinhara Vatika shampoo Anmol hair oil Amla hair oil Vatika hair oil Lal dant manjan Hajmola Honey Glucose – D & C Chyawanprash Meswak Babool Dabur Red
Availability in no of shops 12 7 8 10 45 32 48 52 58 23 13 32 12 15 46 53
From the above data the following points can be drawn for Rayagada district. i. Lal dant manjan (67%), Dabur red toothpaste (62%) & Vatika hair oil (60%), are dominating in the rural market & available in grocery and beetle shops. ii. Amla hair oil (56%) & Babool tooth paste (53%) performing moderately in their product category and are available in grocery shops only. iii. Meswak (17%) & anmol hair oil (32%) performing poorly in their product category, and are available in shops having good repute in their respective locality only. iv.Vatika shampoo (53%) availability is in both retail outlets as well as in ladies corner stores.
v. Gulabari (14%) is available in some of the ladies corner stores and shops grocery shops performing well. vi.Glucose D & Gluco plus C (37%) and Hajmola (24%) are available in medical stores and in few retail stores only. vii.Chyawanprash (14%), Honey (15%), Shank pushpin (8%), Sat isabgul (9%), Pudin hara (12%) are high priced and medicinal products, so available in medical shops only.
This part shows the direct and indirect rech of the company to its customers. In this pie chart (below) the wholeseller are covering over 59% of the total sample(104 outlets) surveyd. There are only 29 outets (28%) are covered by the sub stockists.
Mode of Coverage Sub stockiest Stockist Wholesaler Counter Stockist Total
No of Shops 29 6 62 7 104
%ge 28 6 59 7 100
From the above analysis it is clear that i. Wholeseller are covering over 59% of the total sample(104 outlets) surveyd.
ii. There are only 29 outets (28%) are covered by the sub stockists. iii. 7 0ut of 13 medical stores are covered by a counter stockist (Narayana Agency, Rayagada). iv.Stockist covers only 6% of the total shops. So there is a great need to capitalize those indirectly covered market through strong and efficient direct reach, which will create more revenue through the increased product selling.
TRANSPORTATION MODE USED BY THE RETAILERS
This part of project report focuses on the transportation mode used by the outlets in rural areas. Mode of transportation Order Booking Self Van Total No of Shops 17 82 5 104 %ge 16 79 5 100
From the above data it is clear that 82 out of 104 outlets studied go by self primarily to wholesalers to get their required products which are about 79% of total outlets. There are only 5 outlets covered by Van where 23 outlets are booked by order through sub stockists and stockist.
VILLAGE WISE SALES OF PRODUCTS
In this chart we have taken all the villages which have been included in the study. Here the sales of Dabur, HUL & total sales of each village per month have been discussed.
Village wise status of Dabur Sl.No . 1 2 3 4 5 6 NAME OF THE VILLAGE Ambadola Kotapeta Komatalpeta Kalyansingpur Kujendri Ukkamba Total no. of shops 21 17 6 28 16 16 Dabur Dabur turnover available shops per month 19 Rs 171000 12 Rs 23300 3 Rs 3500 25 Rs 124000 13 Rs 22000 14 Rs 47400
From the above it is clear that, in every village of rural area HUL is the market leader. There is huge gap between the sales of Dabur & HUL in every village. • Ambadola & Kalyansingpur having the sub stockists so Dabur sales are also good. • Komatalpeta just 1/2 km away from J.K.Pur town. People of this village prefer to purchase products from J.K.Pur town. Hence retail outlets sales of Komatalpeta are very less. • Kujendri & Ukkamba situated at a distance of 14 Kms & 9 Kms respectively from the town Gunupur. Gunupur substockist covers these two villages.
Feasibility of new Sub stockist
Gunupur substockist Sri Venkateswara agencies having good name & fame and also doing good business. His area of operation should be regulated to Gunupur town (Having more than 120 outlets) only. Ukkamba (having 16 outlets) doing Rs 47000/- Dabur turnover but no Dabur substockist, hence there is a great need for appointment of new substockist .He can also cover near by 3 villages. Kujendri (16 outlets) having Rs 22000/- Dabur turnover and center point for Neelamguda (5 outlets), Omoding (3 outlets), Subai and K.P.Kudia so new substockist can be appointed. J.K.Pur (more than 60 outlets) is a small central town for surrounding 6 villages. Praveen wholesaler and Agarwal wholesaler of J.K.Pur performing good services to the retailers. Hence any one of them can be appointed as a new Dabur substockist. Ramanaguda (More than 25 outlets) a Block headquarter & a potential market surrounded by 5 villages (Bamgi, Katiki, Chakunda etc.).So substockist should be appointed at Ramanaguda (Can also cover Gumuda). Gudari (More than 12 outlets) a new substockist can be appointed who can also cover another central point village Padmapur (more than18 outlets). Mukundpur (nearly 15 outlets) a central point for nearby 5 tribal villages and weekly Hato held every Thursday. Hence a new sub stockist can be appointed. Kashipur covered by Tikiri substockist. But a new substockist should be opened for Kashipur also. Because a
central point for nearby 5 small villages and also far distant from Rayagada. ✔ Substockists present at Ambadola, Kalyansingpur, Gunupur, Tikiri, Muniguda and Bissamcutttack. ✔ Many retailers not satisfied with stockist Sri Durga Medicos and he is also not providing good services. Therefore that should be replaced with a new stockist. N.B:- Numbers shown in bracket are number of outlets present in that particular Village/Small town and also having the potential to do at least Rs 10,000/- Dabur turnover.
Village wise findings:-
Village wise feedback of retailers discussed as follow. Ambadola:Having a great potential market with more than 35 all kinds of outlets. Nearby 4 villages depend upon Ambadola for marketing purpose 80 Kms away from district headquarter Rayagada. Dabur sub stockists available here. Retailers satisfied with Dabur substockist service. HUL substockist is at Bissamcuttack (30 Kms away from here). But providing good service. 50% retail outlets prefer Dabur substockis. Whereas 50% retail outlets prefer HUL substockist & other wholesalers. Maximum retailers get their products by self. Kalyansingpur:Having a great potential market with more than 45 all kinds of outlets. Nearby 5 villages depend upon Kalyansingpur for marketing purpose. 60 Kms away from district headquarter Rayagada. Both Dabur & HUL substockists present here. Retailers not satisfied with Dabur substockist. 30% retail outlets prefer Dabur substockis. Whereas 60% retail outlets prefer HUL substockist & other wholesalers. Maximum retailers get their products by self. Kotapeta:-
A great potential market with more than 22 all kinds of outlets. 5 Kms away from district headquarter Rayagada. No Dabur substockist. Dabur stockist of Rayagada is the authorized person for the distribution. Retailers not satisfied with the service of Dabur stockist. 20% retail outlets prefer Dabur stockist. Whereas 80% retail outlets prefer wholesalers of Rayagada. Every retailer gets their products by self. Komatalpeta:Having a potential market. With 12 unorganised retail outlets. ½ Km away from nearest town J.K.Pur & 9 Kms away from district headquarter Rayagada. No Dabur substockist. Retailers bring products from wholesalers of J.K.Pur. Many people also prefer J.K.Pur for marketing purpose. Maximum retailers get their products by self. Ukkamba:Having a great potential market. With more than 18 all kinds of outlets. 10 Kms away from nearest town Gunupur. HUL substockists present here & no Dabur substockist Nearby Gunupur substockist covers this village. Retailers satisfied with Gunupur substockist. 40% retail outlets prefer Dabur substockis. Whereas 60% retail outlets prefer HUL substockist & other wholesalers. Maximum retailers get their products by self. Kujendri:Consists of 2 villages namely Bodo Kujendri and Sano Kujendri situated at a distance of 1 Km from each other. Having a great potential market with 16 outlets. 13 Kms away from nearest town Gunupur. No substockist of Dabur Nearby Gunupur substockist covers this village. Retailers satisfied with Gunupur substockist. 50% retail outlets prefer Dabur substockis. Whereas 50% retail outlets prefer other wholesalers of Gunupur. 95% retailers get their products by self.
Fact Sheet of Dabur in Rayagada District :Super stockist – Single distributor, Rayagada Stockist – Sri Durga medicos, Rayagada Counter stockist – Narayana agencies, Rayagada Sub stockists present at – Ambadola, Bissamcuttack, Gunupur, Kalyansingpur, Muniguda & Tikiri.
Out of 104 outlets surveyed, there are 86 outlets having Dabur products, i.e. 83% availability. Dabur is unable to reach potential outlets were FMCG sales are good. About 59% (62 out of 104) outlets are covered indirectly through wholesalers, i.e. direct coverage is very poor compared to indirect coverage. Dabur lal dant manjan is available in 58 outlets out of 84 outlets. Dabur red toothpaste also available in 53 out of 86 outlets, i.e. non availability of best selling products in the outlets is clear. Rayagada district having 14 village of 3000 to 5000 populations but only 6 villages having substockists. This shows that poor rural distribution network. There are no services and no visits by the stockists to the outlets as only 21% outlets are covered by van and order booking. Except Gunupur substockist no substockists covering other areas except their own villages. Non availability of small trial packs of various Dabur products is a main point of consumer dissatisfaction. (Vatika shampoo availability in shops increase from 45% to 53% due to small sachets). The visibility of available products is very poor. Many sub stockists frequency of visits to the shops is unsatisfactory. Credit period offered by the company or sub stockists remains to be a great concern for the outlets; resulting outlets are switching over from sub stockiest to the wholesalers. 18 villages I had visited. I have not found any posters, banners or wall paintings of Dabur (i.e. very poor below the line communication). Most of the outlets are going to the wholesalers where they can get all type of products with a longer credit period.
• • •
Sales of Dabur medicinal products in medical shops are more compared to sales of other FMCG Dabur products.
• Many shopkeepers complained about discrimination in providing margin to them. • Many retailers complained about irregular replacement of damaged products. • Retailers complained about behavioral and cash sales problems with the sub stockists. • People (Outlets) have complained about the no or very few scheme available to them. • A retailer said,’Bechte to hain lekin yaar thikse milta kuchh nehin hai’.
• New sub stockists should be appointed at J.K.pur, Ukkamba, Kujendri, Ramanaguda, Gudari, Mukundpur, Kashipur, at least. • Existing stockist should be replaced by another sincere retailers and company oriented stockist. • Sub stockists frequency of visits to the outlets should be at least once in 15 days. • Sub stockists area of operation should be specified clearly and they should be made compulsory to visit nearby villages having potential outlets. • Availability& visibility of products should be improved. • Stockiest should be made compulsory to visit every rural village with van and ready stock at least once in a fortnight.
• Introduction of Dabur products in small trial packs very much essential. • More schemes should be provided to the retailers. • New sub stockists should be replaced with existing non performing sub stockists. • .More banners, posters (point of purchase displays) should be displayed inside and outside of the shops. • More wall paintings, banners and posters, hoardings should be displayed in rural areas. • Sub stockists relationship with the retailers should be improved. • Regular education and training regarding products and schemes should be given to the sub stockists.
“Gone are the days when a rural consumer went to a nearby city to buy’ branded products and services" Now it is the turn of every company to reach the rural consumer. Through this research I was able understand that “Providing value for money to the customer with optimum level of availability and visibility with awareness is the only way to sustain in the competitive market. "Dedicated to the health and well being of every household". This vision can only achieved when Dabur will start strengthening from the grass root level with perfect Action, Commitment, Innovation and Conviction today to meet the challenges of tomorrow.
Books Refered 1. Kotler Phillip, Marketing Management, The Millennium Edition, prentice Hall of India. Kothari. C.R., Research Methodology, Wishwa, prakashan, New Delhi.
1. What is the name & address of your shop? -------------------------------------2. What is the shop keeper’s name?
--------------------3. Are you selling Dabur products? a) Yes b) No 4. What is the total turnover of a) Dabur per month? _______________ b) HUL per month? _____________ c) Any others per month? ___________ 5. What is your total sale per month? ________________ 6. From whom do you bring products? a) Substockist b) Stockist c) Wholesaler 7. Where the Stockist/Substockist/Wholesaler located? ________________ 8. Specify his Name? _________________ 9. What is the mode of transportation of the products? a) Order booking b) Van c) Self 10. What are the Dabur products available in your shop? __________________________________