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Marketing Management Project

Launch of Dabur Honey’s Ayurvedic and Herbal Skin and Hair Care Cosmetics
for the Indian market

Section D-Group No. 7


2211245 ROHAN DHIMAN
2211283 SAUMYA SONI
2211251 MANASE KAMALESH MAHENDRA
2211257 DIMPLE MORANG
2211235 DEBAYAN DATTA CHOWDHURY
2211275 JOTHIKRISHNA S R
Table of Contents (not finalized)

S. No. Topic Page No.


1 Introduction

2 About Company

3 Rationale

4 Problem Statement

5 Methodology

6 Scope and Limitations

7 Indian Cosmetic Market (Secondary Research)

7.1 5C Analysis
7.2 SWOT
7.3 STP

8 Primary Study

9 Future Deliverables

10 References
INTRODUCTION

Consumer packaged goods (CPGs), commonly referred to as fast-moving consumer goods


(FMCG), are items used on a daily basis that are sold quickly. Products in this category range
from those used for personal care (soaps, shampoos, toothpaste, cosmetics, etc) to snacks and
beverages (biscuits, chips, tea), as well as habit-forming items like cigarettes. Today's industry
has strong forward and backward linkages that cut across economic and social classes to a
significant extent and has raised living standards throughout time.

The sale of such inexpensive (usually) commodities presents unique difficulties for both
seasoned players and recent entrants. Given the inherent similarities among the items that are
available, it is challenging to establish product distinction and hence develop consumer
loyalty. For instance, the majority of people don't take much time to choose which shampoo
or facewash to buy. A successful marketing plan becomes essential at this point in order to
capture a sizable portion of the market. Companies must stay on top of market trends by
adding new products to their existing product lines and, if required, branching out into
untapped markets.

Global FMCG Market

With a CAGR of 5.3 percent from 2021 to 2027, the global market for cosmetics, which was
valued at $380.2 billion in 2019, is anticipated to grow to $463.5 billion by 2027. One of the
key elements influencing the usage of cosmetics in the global market is the rise in awareness
of one's own inner intelligence and exterior beauty. Along with women, there is an increase in
the usage of cosmetics in men's daily routines, which supports the growth of the global
cosmetic market's demand and contributes to that market's expansion. Furthermore, there is
a rise in popularity of cosmetic products with natural ingredients as consumers are being
cautious of the chemicals used in some beauty products.

Indian Cosmetics Market


India's Beauty and Personal Care Market is estimated to be USD 24.53 Bn in 2022 and is
expected to reach USD 33.33 bn by 2027, growing at a CAGR of 6.32%. Currently, Indian
Cosmetics market is being stormed by international brands such as L’Oréal and local brands
which promise to enrich Indian skin with the goodness of natural and organic products.

Honey: The Golden Liquid


One of India's oldest customs is beekeeping. India now has one of the largest honey
marketplaces in the world, which creates fierce rivalry for both innovation and quality. The
demand for honey in India is also rising as consumers increasingly prefer natural sweeteners
over artificial ones, as a result people have become more aware of the advantages of honey.
Additionally, honey is expected to become more widely used in culinary and non-food
applications worldwide due to its antibacterial, anti-microbial, and anti-inflammatory
characteristics that have been demonstrated. In 2021, the Indian honey market had grown to
a size of roughly INR 21.1 billion. Between 2022 and 2027, the market is projected to grow at a
CAGR of around 10.31%, reaching a value of nearly INR 38.3 billion.

Honey not only acts as a healthy substitute for sugar but it is beneficial for the skin as well. It
helps balance the bacteria on your skin which makes it a great product to use for acne. Studies
have shown that some types of honey such as the Manuka honey was found to be significantly
more effective as an anti-acne product than other popular products. Honey speeds up your
skin cells’ healing processes. It is also a natural exfoliator. Using it on the face can eliminate
dead skin cells that make your skin look dull, this can reveal brighter skin. Some honey types
like Manuka honey are effective at healing wounds.
Dabur Honey

Dabur India Ltd, established in 1884, is one of the largest fast moving consumer goods (FMCG)
company in India which focuses on ayurvedic medicine and natural consumer products. Dabur
Honey is one of the 9 power brands of Dabur. Since its establishment, it has become India's
largest branded honey maker. The USP of Dabur Honey is: Healthy honey which provides
energy and taste.
The strategies Dabur Honey uses are as follows:
 Launching range of premium variants
 Strengthening fitness proposition
 Increase consumer frequency via targeted campaigns
 Extending distribution (modern trade, convenience formats)
Dabur Honey, along with the other Dabur healthcare brands had a revenue contribution of
23.4% to domestic sales and a revenue growth of 42.5% in the financial year 2021.
Problem Statement

The market for Ayurvedic and herbal beauty products in India and around the world is growing
quickly and has tremendous potential. In light of this situation, Dabur Honey chooses to
introduce its own range of honey-based cosmetic goods. It is imperative to highlight that
Dabur Honey's product mix lacks any substantial honey-based cosmetics portfolio. Hence, we
propose that Dabur launches an entirely new line of cosmetic products with an emphasis on
the traditional health benefits of honey. The task will be to establish a distinctive market
position and establish an unimpeded supply chain from the raw materials procurement to the
customer. An aggressive marketing strategy will also be required to rapidly capture buyers'
attention.

Methodology

The team undertook extensive desk research by analyzing the emerging trends in the Indian
FMCG sector and the Ayurvedic market. The team also conducted a survey among consumers
to understand their preferences which would be helpful in reaching findings at a later stage.

Scope and Limitations

The project is limited to the launch, communication and distribution strategy of the newly
launched honey-based cosmetic products by Dabur Honey in the Indian market. The idea is to
establish Dabur Honey, first as a challenger and then as a dominant force in the Ayurvedic
cosmetic care space. Global launch of the products is not in the scope of the current project.
Indian Beauty and Personal Care Market (Secondary
Research)

2021 was a year of recovery for the beauty and personal care industry in terms of volume and,
to a lesser extent, in terms of current value after a year of little change in 2020. The Indian
economy was affected by COVID-19, which also affected the beauty products sector. In India
and the rest of the world, mobility and supply chain disruption continue to be major obstacles
for the beauty and personal care industries. In 2021, the cost of raw materials such as palm oil
grew by almost 50% annually. While the price of fuel and diesel grew by more than 20% year
over year in 2021, the price of paper and paperboard, which is used to package some
cosmetics and personal care products, also experienced double-digit price rises.

Key Trends in 2021

The second COVID-19 wave continued to influence beauty and personal care, limiting growth
this year. However, the year saw a strong push for numerous new styles. For example, the
industry's move to e-commerce and rapid growth of online channels persisted. As a result, in
addition to working with e-commerce companies, some merchants acquired interest in
smaller direct-to-consumer (D2C) stores with a robust online presence. This increase in online
presence has enabled businesses to reach out to consumers in smaller cities and towns,
particularly in supplying luxury beauty and personal care goods that were previously
unavailable.

Even though face masks were used for most of the year, demand for eye make-up remained
high. Meanwhile, there has been an increase in demand for smudge-proof or transfer-proof
lipsticks, which may be worn without concern of the colour migrating to the face mask.

The future of beauty and personal care

The pandemic situation is expected to improve throughout the projection period as


vaccination rates rise, decreasing the number of COVID-19 infections. This will help recover in
various categories, including colour cosmetics, sun care, scents, and deodorants. In addition,
social events and festivals will resume their pre-COVID-19 rhythm, resulting in more trips and
benefiting the same groups. Although many industries will profit from the restoration of
mobility, skin care will be one of the few that will not, since when individuals were isolated at
home, they had more time to engage in their skincare regimens, which will no longer be as
simple when offices and universities reopen. In terms of the competitive landscape, giants like
Reliance and Tata have announced their entry into the business, which is expected to enhance
competition. On the distribution front, omnichannel commerce will continue to grow in
importance, with merchants expanding their presence through both online and physical
channels..

Figure 3.1 : Cosmetic Industry at a glance ( Source)

The economy has been significantly impacted by the development of consumerism. Depending
on how frequently and how loyally they make purchases, consumers might be categorised as
either experimenters or loyalists. Due to product consistency, specials, and promotions on
numerous websites, the majority of consumers now buy personal care products online.
However, people still prefer to "touch and feel" mid-priced and premium+ products in physical
stores.
5C Analysis of Dabur Honey

1. Company:

VISION: “Dedicated to the health and well-being of every household”

Business: Dr. S. K. Burman founded Dabur Honey in 1884 primarily as a proprietary business
with a focus on the production of ayurvedic medicines. Later, the Company was incorporated
under the name Dabur Pvt. Ltd. by his descendants. A plant in Alwar was established for the
mass manufacture of formulations in the late 1970s because of Dabur Pvt. Ltd.'s promotion of
a corporation. Despite this, Company quickly rehabilitated it because of weak performance,
which brought about losses. After Dabur reverse merged with Vidogum Limited in 1986, it was
listed on the stock exchange. It was split into three distinct sections in order to manage its
product mix more effectively:

• Health Care Product Division

• Dabur Ayurvedic Specialties Ltd.

• Family Products Division

In the year 2000, the company's turnover reached $1 billion. Dabur just needed six more years
to reach a market capitalization of $2 billion in 2006. In keeping with its promise to adhere to
global best practices and implement the highest transparency and governance standards, the
company increased its governance and adopted US GAAP. Dabur launched the Oxylife
Professional Facial Kit, a product designed solely for individual use, in 2011, marking the
company's entry into the professional skincare sector.

Honey is a miraculous substance in its most basic form. Honey is generally viewed as a health
syrup in India, although in western houses it is a word of love. Before Dabur India Limited
chose to purchase honey in significant quantities from apiculturists (bee-hive farmers) and
market it, no firm in the organized sector had recognized the potential of the honey industry.
About ten years ago, the company brought branded honey in glass jars to the Indian market.
At the time, Khadi Gram Udyog was the only significant company selling honey, and it solely
sold unbranded goods from rural areas to urban markets. Dabur discovered a weak demand.
Only therapists utilized honey as a cough reliever, a skin problem treatment, or for other
therapeutic purposes.

1.1 R&D

In order to maintain its position as the market leader in several product categories, Dabur
India invests extensively in R&D operations. The distribution and promotion methods are
supported by significant investments in growing the IT network, marketing, product design,
and process optimization. The company is frequently regarded as a national leader in health
representation because of its strong emphasis on research and development, which is
demonstrated by the variety of products it offers, including juices, magnificence products,
fitness care products, and dental care items.

1.2 Production Scale

Since Dabur India Ltd. produces on such a large scale, it is able to take advantage of economies
of scale and further strengthen the company's competitiveness. As a result, the Company is
able to create higher-quality goods at a lower cost. The company's market share is very high in
the Indian market and benefits from a significantly wider ratio chain.

2. Customers:
Dabur is a business that has strong ties to its customers and creates goods that satisfy their
demands. Each product is developed with a great deal of user input. The basic need of a
customer from an ayurvedic brand is the age-old trust and the belief that they will be provided
with original and unadulterated products.

Through its 600+ distributors and 2. 8 million merchants, Dabur has a highly robust and
extensive supply chain network that serves both rural and urban regions. Dabur now enjoys a
competitive advantage over established firms like HUL, P&G, ITC, etc. because to this
network's assistance in reaching every part of India.

3. Competitors
Nykaa, a reputable beauty brand in the Indian Sub-Continent, is a prospective rival of Dabur in
the honey-based cosmetics category. Many additional beauty firms, like Nykaa, have begun to
produce cosmetics infused with honey, including moisturizers, oils, and face masks. Other
brands that provide honey-based goods, including beauty care items, are Khadi Honey and
Oriflame (Swedish company). Another well-known ayurvedic brand among young people is
Forest Essential, which sells high-end honey-based cosmetic goods. Many local companies,
such Pahadi Local and Himachal Herbal from Himachal Pradesh, to mention a couple, have also
joined the market due to the growing popularity of ayurvedic medications and supplements.

4. Collaborators
4.1. Suppliers: The whole supply of Dabur Honey comes from Indian beekeepers, and it strictly
complies with all 22 requirements set forth by the FSSAI (Food Safety and Standards Authority
of India) for testing honey. Furthermore, as further required by FSSAI, Dabur Honey is
additionally LCMS - MS tested for zero presence of antibiotics.

4.2. Plant Setup: It has ten production facilities nationwide, including two in Uttar Pradesh,
three in West Bengal—Narendrapuram and Kalyani—one each in Bihar, Haryana, Rajasthan,
Himachal Pradesh, and Madhya Pradesh, as well as two overseas—one in Egypt and the other
in Nepal.

4.3. Brand Ambassador: Actress Rashmika Mandana was appointed by Dabur as their new
brand ambassador in the year 2022. In the past, it has chosen several well-known people to
represent its brand, including Amitabh Bachchan and Mahendra Singh Dhoni, to mention a
couple.

4.4. Advertising: Recently, to inspire and encourage Indians to take an active role in their
health, ZEE5, India's Entertainment Super-App, and Dabur Honey, the country's top-selling
honey brand, teamed together to produce an exclusive talk show called "Dabur Honey Hello
Fitness.

5. Context
Related to company’s external factors and environment, PESTEL analysis is performed
• Political Factor: The consistent government support is largely responsible for Dabur's
success. Dabur was given advantageous circumstances by the government to expand in
overseas markets due to the government's appreciation of the quality and consistency
of Dabur's products.
• Economic Factor: The Indian markets account for more than 60% of Dabur's sales.
Therefore, it could appear that Dabur would likewise be feeling the effects of the
nation's ongoing economic recession. But the truth is rather different. Dabur has not
been significantly impacted by the downturn since the majority of the things it
manufactures are within the means of the ordinary Indian consumer.
• Socio-Cultural Factor: After the onset of COVID in the year 2021-22, a vast majority of
population has started giving more focus on their health and well-being. Dabur being
an ayurvedic firm has always been the most sought-after brand for health beneficial
and quality products.
• Technological Factor: Dabur must have a strong internet presence in addition to
finding ways to simplify their business processes. It is crucial for Dabur to modify their
advertising strategies given the shift in consumer behaviour from television to mobile
devices and laptops.
• Environmental Factor: Dabur's products are benefiting as a result of people's increased
environmental consciousness.
• Legal Factor: The protection of intellectual property rights is one of the most crucial
legal considerations for every business.
SWOT Analysis
Strengths: Weaknesses:

 Strong Brand Name  Cross selling not materialized


 Brand Loyalty and brand recall value  Sales only in plastic bottles. Sachet
 Pro-Innovative Culture packaging not materialized
 Investment In R&D Activities  Premium price compared to the
 Large Customer Base - Market Share 60 % competitors
(as on 2020) in value and 40% market  Negative reviews because of
share by volume adulteration issues
 Favourable Reputation at the Global Stage  Not good for diabetic patients
 Market Leadership Position  Poor Customer-oriented Services
 Wide distribution Network  Decreasing per unit Revenue
 Good financial position – Successful brand  Lack of flexibility in the Supply Chain
of Dabur with Rs 500 Cr sales  Retention Issues due to high job stress

Opportunities: Threats:

 Alternative for sugar  Organic Honey makers local as well as


 Packaging changes – Sachet branded
 Buy out competition – Baidhyanath, Zandu  Competitors pricing
 Growing Customer Base in the lower-end  Honey substitute products – Sugar
market free, Natura
 Opportunities to collaborate with local  Local honey is preferred - Authentic
players to expand operations  Growing criticism by the environment
 Increasing trend of consuming organic and protecting groups
high-end products  Talent Shortage in the market
 Strict government regulations are making  Rural Market stagnation and Urban
it difficult for new players to enter the Market Saturation
market  Growing Health consciousness of
customers
Segmentation, Targeting, Positioning (STP) Analysis

1. Segmentation
i. Geographic: India has a tropical climate for most of its part and the weather is generally dry
and hot. The skin is more susceptible to dirt, oil, pollutants, and pollution from the
environment in such conditions because the pores are more likely to open or enlarge.
This leaves skin dry and more prone to form skin irritation, acne and subsequent
depigmentation marks. We can clearly identify a significant market need for a
skin/cosmetic product which can protect one’s skin from harsh environments arising
from India’s tropical climate, pollution, and perhaps chemical composition of water.

Dabur Honey, being one of the most trusted honey brands in the country, can create a

cosmetic product line containing honey as a key ingredient to cater to consumers'


skincare / cosmetic needs.

Currently, the market is not very competitive and the need is evident. To summarize, a
segment with urban areas specially the metropolitan regions and hot/dry climate can be
identified through the primary research we conducted.

ii. Demographics: The desire for a fair, clean and smooth skin is very evident in the Indian
market. For example, Equating fairness with beauty has turned out to be a key
consumer insight in the case of the fairness creams industry with Hindustan Unilever
capturing nearly 53% of the market share with Fair & Lovely.

 Gender: In all regions of India, both men and women express interest in skin
care products. However, the female population is more inclined than their
male counterparts. But our research suggests growing interest among men
towards skin products.

iii. Psychographic : It will help Dabur understand the psychological traits that
influence consumption habits of consumers.
a) Personality: From the series of interviews, we conducted as part of our primary
research, we found out that especially among young adult good looks and
physical magnetism are persistently emphasized as a desirable characteristics.
Especially in the high income group, consumers are willing to spend more to get
the desired results. Whereas middle-income groups are more conscious about
the product and would time gathering information about the product.
b) Social Status: The use of cosmetics products when turned into a habit can also
signal social status among peer groups. Brand name and popularity plays a
critical role in creation of social status.

iv. Behavioural: When asked what factors a consumer looks for from a hair/ skin care
product, ingredients was the most after followed by brand .Other factors included
price, availability and fragrance.

Gender Target group : Women


User group : Men and Women

Age Target group : Young adults (Age 18-25)


User group : Young adults , adults and middle aged

Income Target group : Monthly spend - 250-


1000 User group : Monthly spend 250-
1000+
Exhibit 1. Demographic segmentation

2. Target Markets :

Based on the characteristics of each segment we saw above, the target market for Dabur
honey’s honey based hair and skincare products would be young adults and middle aged
consumers who seek value in ayurvedic (Honey based) products. The young consumer
showcases awareness when it comes to personal care products and has affinity towards
organic, chemical free products. Hence, Dabur Honey with its organic honey based
skincare products and strong brand value will strongly appeal to the target group.
3. Positioning :

Dabur is India’s leading ayurvedic and natural health company with a range of over 250
Ayurveda & herbal products. Dabur Honey has leveraged this brand positioning of its
parent and has been successful in capturing the honey based product market. Dabur
Honey has also been established as a trusted brand and has a competitive advantage over
other competitors.

With other honey based products, Dabur Honey can also add the honey based skin care /
cosmetic products in its lineup and position itself as the only provider of pure honey based
skincare products.

Consumer Analysis
1. Relevance :

As seen from the primary and secondary research, the honey based organic skin care
product is largely relevant and desired by the consumers

2. Resonance :
Feature Positioning : Contains 100% pure and unadulterated honey
Benefit Positioning : Hydrates and Softens the skin. Gives you a natural look
Value Positioning : There's nothing more beautiful than natural beauty. Stay
natural, stay beautiful with Dabur Honey’s Honey cosmetic products.

3. Being Realistic:
Since the product would contain no sulphate or paraben, the side effects would be
at best minimal. With an already existing strong supply chain and excellent
distribution systems, Dabur Honey can deliver value to the consumers
Future Deliverables:

Having studied the market and conducted a primary study in the form of a survey, we
intend to deliver the following towards the completion of the project:
 Go-To-Market Strategy, to provide a Value Proposition for introducing Ayurvedic
Hair & Skin Care line for Dabur Honey in the Indian market.
 The Strategy will include Value Capture, Value Communication and Value Delivery
for the product. (4P Analysis)

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