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Dabur Summer Internship - Document Transcript
1. REGIONAL COLLEGE OF MANAGEMENT A PROJECT REPORT ON “FINDING OUT THE NEW
BUSINESS OPPORTUNITY IN SUNDERGARH DISTRICT OF RURAL ORISSA FOR DABUR INDIA LTD.”
PROJECT REPORT SUBMITTED AT REGIONAL COLLEGE OF MANAGEMENT, BHUBANESWAR UNDER
BIJU PATTANAIK UNIVERSITY OF TECHNOLOGY TOWARDS PARTIAL FULFILLMENT OF REQUIREMENT
FOR THE AWARD OF THE DEGREE OF ‘MASTER OF BUSINESS ADMINISTRATION’ SUBMITTED BY
JITENDRA KUMAR NAYAK REGD.NO- 0806247076 UNDER GUIDANCE OF MUKESH MISHRA SENIOR
LECTURER R C M, BHUBANESWAR DABUR INDIA LIMITED
2. DECLARATION I, Jitendra Kumar Nayak hereby declare that the summer project entitled “TO FIND OUT
NEW BUSINESS OPPORTUNITY IN SUNDERGARH DISTRICT OF RURAL ORISSA FOR DABUR INDIA LTD.”
submitted by me in partial fulfillment of Degree in Business Administration, Regional College of Management,
under Biju Pattanaik University of Technology(BPUT), is my own. This work has not been submitted to any other
university nor has been published ever before. I would like to declare that the information provided in the project
report is authentic to best of my knowledge, as it has been obtained through market survey done entirely by me
and verified by the concerned authority. DATE: 22.10.09 JITENDRA KUMAR NAYAK PLACE: BHUBANESWAR
REGD. NO: 0806247076 MBA (2008-2010) RCM. 2
3. ACKNOWLEDGEMENT IT IS MORE A LIABILITY FOR ME TO OWE MY DEEP SENSE OF
ACKNOWLEDGEMENT AND GRATITUDE TO THE FACULTY OF MY DEPARTMENT, WHO HAS LENT ME
ESTEEMED SUPPORT IN HIS ENDEAVOR. I WOULD LIKE TO PAY MY GRATITUDE TO MR.MUKESH
MISHRA (SR. LECTURER) FOR HELPING THROUGH THROUGHOUT THE COURSE CURRICULUM FOR
THE SUCCESS OF THE EVENT. I am deeply indebted as, every stands on its own nerves, which lies beneath
the skin. And his work is no exception; the person who is constantly seen into my success, is my guide MR.
DHEEMAN BHATTACHARYA. [A.S.M. DABUR INDIA LTD.] He is not only my guide but also a constant
motivator. Lastly, I have the pleasure of presenting this seminar report to my Department of M.B.A (RCM) and
thankful to them for their kind consideration and timely responses. JITENDRA KUMAR NAYAK Regn. No:
0806247076 M.B.A. (RCM) 3
4. CONTENTS TOPICS PAGES I. To whom it may concern 5 II. Certificate of training 6 III. Introduction 7 IV.
Company profile 27 a. Dabur business structure 30 b. Manufacturing facility in India 35 c. Distribution network 38
d. Sustainability report 39 e. Technology absorption 41 f. Strategic intent 42 V. Objective of the study 43 VI.
Research methodology 44 VII. Sampling technique 45 VIII. Tools to analysis 46 IX. Method of data collection 47
X. Data analysis a. Analysis based on availability 48 b. Analysis based on coverage 49 c. Analysis based on mod
e of transportation 50 d. Analysis based on market share 52 e. Analysis based on availability of different product
53 f. Village status 55 i. Villages having high sale 56 ii. Villages having low sale 60 XI. Findings 64 XII. Suggestion
65 XIII. Conclusion 68 XIV. Bibliography 69 4
5. Guide Certificate This is to certify that the work entitled “TO FIND OUT NEW BUSINESS OPPORTUNITY IN
SUNDERGARH DISTRICT OF RURAL ORISSA FOR DABUR INDIA LTD.” is a piece of term project done by
JITENDRA KUMAR NAYAK of M.B.A (4th trimester) under my Guidance and supervision for partial fulfillment of
MBA curriculum Of Regional college of management ,Bhubaneswar. To the best of my knowledge and belief the
term project Report:- 1) Embodies the work of the candidates them self. 2) Has been duly completed. 3) Is up to
the standard both in respect to contents and language for being referred to the examiner. DT: DHEEMAN
kavishasharma91 3 months ago
dabur at dabur, 6 months ago
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BHATTACHARYA AREA SALES MANAGER DABUR INDIA LTD. 5
6. Guide Certificate This is to certify that the work entitled “TO FIND OUT NEW BUSINESS OPPORTUNITY IN
SUNDERGARH DISTRICT OF RURAL ORISSA FOR DABUR INDIA LTD.” is a piece of term project done by
JITENDRA KUMAR NAYAK of M.B.A (4th trimester) under my Guidance and supervision for partial fulfillment of
MBA curriculum Of Regional College of Management, Bhubaneswar. To the best of my knowledge and belief the
term project Report; 1) Embodies the work of the candidates them self. 2) Has been duly completed. 3) Is up to
the standard both in respect to contents and language for being referred to the examiner. DT: Mukesh Kumar
Mishra SR. LECTURER RCM [BHUBANESWAR] 6
7. III. INTRODUCTION For quite some time now, the lure of rural India has been the subject of animated
discussion in corporate suites. And there is a good reason too. With urban markets getting saturated for several
categories of consumer goods and with rising rural incomes, marketing executives are fanning out and
discovering the strengths of the large rural markets as they try to enlarge their markets. Today, the idea has
grown out of its infancy and dominates discussions in any corporate boardroom strategy session. Rural India with
its traditional perceptions has grown up over the years, not only in terms of income, but also in terms of thinking.
The rural markets are growing at about two time faster pace than urban markets, not surprisingly, rural India
accounts for 60 per cent of the total national demand. 'Go Rural' is the slogan of marketing gurus after analyzing
the socio- economic changes in villages. The Rural population is nearly three times the urban, so that Rural
consumers have become the prime target market for consumer durable and non-durable products, food,
construction, electrical, electronics, automobiles, banks, insurance companies and other sectors besides
hundred per cent of agri- input products such as seeds, fertilizers, pesticides and farm machinery. The Indian
rural market today accounts for only about Rs 8 billion of the total ad pie of Rs 120 billion, thus claiming 6.6 per
cent of the total share. So clearly there seems to be a long way ahead. Although a lot is spoken about the
immense potential of the unexplored rural market, advertisers and companies find it easier to vie for a share of
the already divided urban pie. The success of a brand in the Indian rural market is as unpredictable as rain. It
has always been difficult to gauge the rural market. Many brands, which should have been successful, have
failed miserably. More often than not, people attribute rural market success to luck. 7
8. Therefore, marketers need to understand the social dynamics and attitude variations within each village
though nationally it follows a consistent pattern looking at the challenges and the opportunities which rural
markets offer to the marketers it can be said that the future is very promising for those who can understand the
dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers
towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230
million rural consumers spread over approximately six hundred thousand villages in rural India. Companies face
many challenges in tackling the rural markets. Some of the more critical being- understanding rural consumer,
reaching products & services to remote rural location & communicating with vastly heterogeneous rural
audiences. Sadly, not many companies have invested sufficient effort & money in research and nor have they
spent enough time in field to understand rural consumers, their values, aspirations, needs and usage habits.
Marketing is all about ‘getting to know your customer ‘but having largely ignored this cardinal principle, most
corporate in rural markets find that success has eluded them. Rural consumers are fundamentally different from
their urban counterparts & different rural geographies display considerable heterogeneity, calling for rural-
specific & region-specific strategies. In the absence of marketplaces, shopping complexes, & malls, marketers
will have to abandon the known and the familiar and instead understand where rural consumers buy their rural
goods & products. To meet the wants & needs of selected customers, it is important to understand consumer
behavior. It is this behavior that guides & directs the entire set of activities that constitutes the marketing
programme.Consumer behavior in the rural markets is even more perplexing because of a singular lack of
consistency in groups which are homogeneous in parameters of demographics- age, occupation, education &
income. 8
9. CONCEPT In recent years, rural markets have acquired significance, as the overall growth of the economy
has resulted into substantial increase in the purchasing power of the rural communities. On account of green
revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this
context, a special marketing strategy, namely, rural marketing has emerged. The census of India defines rural as
any habitation with a population density of less than 400 per sq.km, where at least 75percent of the male working
population is engaged in agriculture & where there exists no municipality or board. Of the nearly 6.4 Lakh
villages in India, only 20000 villages have population more than 5000.Most companies in the FMCG sector has
defined rural as any place with a population up to 20000. The rural agricultural production and consumption
process plays a Predominant role in developing the Indian economy. This has designed a new way for
understanding a new process called Rural Marketing. The concept of rural marketing has to be distinguished
from Agricultural marketing. Rural marketing basically deals with delivering manufactured or processed inputs or
services to rural producers, the demand for which is basically a derived outcome. Rural marketing scientists also
term it as developmental marketing, as the process of rural marketing involves an urban to rural activity, which in
turn is characterized by various peculiarities in terms of nature of market, products and processes. 9
10. Rural marketing differs from agricultural or consumer products marketing in terms of the nature of
transactions, which includes participants, products, modalities, norms and outcomes. The participants in case of
Rural Marketing would also be different they include input manufacturers, dealers, farmers, Opinion makers,
government agencies and traders. The existing approach to the rural markets has viewed the markets as a
homogeneous one, but in Practice; there is a significant buyer and user difference across regions as well as
within that requires a differential treatment of the marketing problems. These differences could be in terms of the
type of farmers, type of crops and other agro-climatic conditions. Rural marketing is an evolving concept, and as
a part of any economy has untapped potential; marketers have realized the opportunity recently. Improvement in
infrastructure and reach, promise a bright future for those intending to go rural. Rural consumers are keen on
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branded goods nowadays, so the market size for products and services seems to have burgeoned. The rural
population has shown a trend of wanting to move into a state of gradual urbanization in terms of exposure,
habits, lifestyles and lastly, consumption patterns of goods and services. There are dangers on concentrating
more on the rural customers. Reducing the product features in order to lower prices is a dangerous game to play.
Gone are the days when rural consumer went to nearby city to buy ’branded products and services’. The rural
consumer is growing and this is an opportunity to grab the market share for all the global players in the market
whether it is into Fast Moving Consumer Goods (FMCG) sector or retail sector (either insurance or banking or for
that sake any other sector). The FMCG sector includes companies like Indian Tobacco Corporation (ITC),
Godrej, Hindustan Lever Limited (HLL), Gujarat Cooperative Milk Marketing Federation (GCMMF-Amul) and
Dabur India Limited. All these have shown a strong global presence in the rural sector and it can be said that all
the FMCG companies should target the rural sector. 10
11. According to a survey conducted by Mckinsey in 2007, rural India with a population of 630 million
(approximately) would become bigger than total consumer market in countries such as South Korea or Canada in
another 20 years and it will grow at least four times from its existing size. WHY RURAL MARKET? The Indian
rural market has a huge demand base and offers great opportunities to marketers. Two-thirds of Indian
consumers live in rural areas and almost half of the national income is generated here. The reasons for heading
into the rural areas are fairly clear. The urban consumer durable market for products like color TVs, washing
machines, refrigerators and air conditioners is growing annually at between 7 per cent and 10 per cent. The rural
market is zooming ahead at around 25 per cent annually. "The rural market is growing faster than urban India
now," says Venugopal Dhoot, chairman of the Rs 989 - crore (Rs billion) Videocon Appliances. "The urban
market is a replacement and up gradation market today," adds Samsung's director, marketing, Ravinder Zutshi.
WHAT RURAL MARKET BUYS? Rural India buys small packs, as they are perceived as value for money. There
is brand stickiness, where a consumer buys a brand out of habit and not really by choice. Brands rarely fight for
market share; they just have to be visible in the right place. Even expensive brands, such as Close- Up, Marie
biscuits and Clinic shampoo are doing well because of deep distribution, many brands are doing well without
much advertising support — Ghadi, a big detergent brand in North India, is an example. 11
12. REASONS OF IMPROVEMENT OF BUSINESS IN RURAL AREA Socio-economic changes (lifestyle, habits
and tastes, economic status) Literacy level (25% before independence – more than 65% in 2001) Infrastructure
facilities (roads, electricity, media) Increase in income Increase in expectations MART, the specialist rural
marketing and rural development consultancy has found that 53 per cent of FMCG sales lie in the rural areas, as
do 59 per cent of consumer durable sales, said its head Pradeep Kashyap at the seminar. Of two million BSNL
mobile connections, 50 per cent went to small towns and villages, of 20 million Rediffmail subscriptions, 60 per
cent came from small towns, so did half the transactions on Rediff's shopping site. SPECIAL FEATURES OF
RURAL MARKET Unlike urban markets, rural markets are difficult to predict and possess special characteristics.
The featured population is predominantly illiterate, have low income, characterized by irregular income, lack of
monthly income and flow of income fluctuating with the monsoon winds. Rural markets face the critical issues of
Distribution, Understanding the rural consumer, Communication and Poor infrastructure. The marketer has to
strengthen the distribution and pricing strategies. The rural consumer expects value for money and owing to has
unsteady and meager status of weekly income; increasing the household income and improving distribution are
the viable strategies that have to be adapted to tap the immense potential of the market. Media reach is a strong
reason for the penetration of goods like cosmetics, mobile phones, etc., which are only used by the urban
people. Increasing awareness and knowledge on different products and brands accelerate the demand. The
rural audience are however critical of glamorous ads on TV, and depend on the opinion leaders who introduce
the product by using it and recommending it. 12
13. Opinion leaders play a key role in popularizing products and influence in rural market. Nowadays educated
youth of rural also influences the rural consumers. Rural consumers are influenced by the life style they watch on
television sets. Their less exposure to outside world makes them innocent and fascinated to novelties. The reach
of mass television media, especially television has influenced the buying behaviour greatly. CREATING BRANDS
FOR RURAL INDIA Rural markets are delicately powerful. Certain adaptations are required to cater to the rural
masses; they have unique expectation and warrant changes in all four parameters of product, price, promotion
and distribution. A lot is already emphasized on adapting the product and price in terms of packaging, flavouring,
etc and in sachets, priced to suit the economic status of the rural India in sizes like Rs.5 packs and Re.1 packs
that are perceived to be of value for money. This is a typical penetration strategy that promises to convert the
first time customers to repeated customers. The promotion strategies and distribution strategies are of paramount
importance. Ad makers have learnt to leverage the benefits of improved infrastructure and media reach. The
television advertisements to lure rural masses, and they are sure it reaches the target audience, because
majority of rural India possesses and is glued to TV sets! Distributing small and medium sized packets through
poor roads, over long distances, into deep pockets of rural India and getting the stockiest to trust the mobility is a
Herculean task. Giving the confidence those advertisements will support. Sales force is being trained to win the
confidence of opinion leaders. Opinion leaders play an important role in popularizing the brand. They sometimes
play the role of entry barriers for new products. 13
14. The method of promotion needs to be tailored to suit the expectations of the market. Techniques that have
proved to be successful are Van campaigns, edutainment films, generating word of mouth publicity through
opinion leaders, colourful wall paintings. The Wide reach of television has exposed the otherwise conservative
audience to westernization. Panchayat televisions in Tamilnadu carries message that are well received and
contribute to community development. Dynamics of rural markets differ from other market types, and similarly
rural marketing strategies are also significantly different from the marketing strategies aimed at an urban or
industrial consumer. This, along with several other related issues, have been subject matter of intense
discussions and debate in countries like India and China and focus of even international symposia organized in
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these countries. Rural markets and rural marketing involve a number of strategies, which include: Client and
location specific promotion Joint or cooperative promotion Bundling of inputs Partnership for sustainability Client
and Location specific promotion involves a strategy designed to be suitable to the location and the client. Joint or
co-operative promotion strategy involves participation between the marketing agencies and the client. 'Bundling
of inputs' denote a marketing strategy, in which several related items are sold to the target client, including
arrangements of credit, after-sale service, and so on. Media, both traditional as well as the modern media, is
used as a marketing strategy to attract rural customers. Partnership for sustainability involves laying and building
a foundation for continuous and long lasting relationship. Innovative media can be used to reach the rural
customers. Radio and television are the conventional media that are reaching the rural audience effectively. But
horse cart, bullock cart and wall writing are the other media, which can carry the message effectively to the rural
customers. 14
15. STRATEGY Dynamics of rural markets differ from other market types, and similarly rural marketing
strategies are also significantly different from the marketing strategies aimed at an urban or industrial consumer.
This, along with several other related issues, have been subject matter of intense discussions and debate in
countries like India and China and focus of even international symposia organized in these countries. Rural
markets and rural marketing involve a number of strategies, which include:- Client and location specific promotion
Joint or cooperative promotion.. Bundling of inputs Management of demand Developmental marketing Unique
selling proposition (USP) Extension services Business ethics Partnership for sustainability Client and Location
specific promotion involves a strategy designed to be suitable to the location and the client. Joint or co-operative
promotion strategy involves participation between the marketing agencies and the client. Bundling of inputs
denote a marketing strategy, in which several related items are sold to the target client, including arrangements
of credit, after-sale service, and so on. Management of demand involve continuous market research of buyer’s
needs and problems at various levels so that continuous improvements and innovations can be undertaken for a
sustainable market performance. 15
16. Developmental marketing refer to taking up marketing programmers keeping the development objective in
mind and using various managerial and other inputs of marketing to achieve these objectives. Media both
traditional as well as the modern media, is used as a marketing strategy. Unique Selling Propositions (USP)
involves presenting a theme with the product to attract the client to buy that particular product. For examples,
some of famous Indian Farm equipment manufacturers have coined catchy themes, which they display along with
the products, to attract the target client that is the farmers. English version of some of such themes would read
like: The heartbeats of rural India With new technique for a life time of company For the sake of progress and
prosperity Extension Services denote, in short, a system of attending to the missing links and providing the
required know-how. Ethics in Business. Form, as usual, an important plank for rural markets and rural marketing.
Partnership for sustainability involves laying and building a foundation for continuous and long lasting
relationship. WHY DIFFERENT STRATEGIES? Rural markets, as part of any economy, have untapped
potential. There are several difficulties confronting the effort to fully explore rural markets. The concept of rural
markets in India is still in evolving shape, and the sector poses a variety of challenges. Distribution costs and
non-availability of retail outlets are major problems faced by the marketers. 16
17. The success of a brand in the Indian rural market is as unpredictable as rain. Many brands, which should
have been successful, have failed miserably. This is because most firms try to extend marketing plans that they
use in urban areas to the rural markets. The unique consumption patterns, tastes, and needs of the rural
consumers should be analyzed at the product planning stage so that they match the needs of the rural people.
Therefore, marketers need to understand the social dynamics and attitude variations within each village though
nationally it follows a consistent pattern. The main problems in rural marketing are: - Understanding the Rural
Consumer Poor Infrastructure Physical Distribution Channel Management Promotion and Marketing
Communication Dynamics of rural markets differ from other market types, and similarly, rural marketing strategies
are also significantly different from the marketing strategies aimed at an urban or industrial consumer Examples
HLL started 'Operation Bharat' to tap the rural markets. Under this operation, it passed out low-priced sample
packets of its toothpaste, fairness cream, Clinic plus shampoo, and Ponds cream to twenty million households.
ITC is setting up e-Choupals, which offers the farmers all the information, products and services they need to
enhance farm productivity, improve farm-gate price realization and cut transaction costs. Farmers can access
latest local and global information on weather, scientific farming practices as well as market prices at the village
itself through this web portal - all in Hindi. It also facilitates supply of high quality farm inputs as well as purchase
of commodities at their doorstep. 17
18. BPCL introduced Rural Marketing Vehicle (RMV) as their strategy for rural marketing. It moves from village
to village and fills cylinders on the spot for the rural customers. BPCL considered low-income of rural population,
and therefore introduced a smaller size cylinder to reduce both the initial deposit cost as well as the recurring
refill cost. STRATEGIES TO BE FOLLOWED Marketing Strategy Marketers need to understand the psyche of
the rural consumers and then act accordingly. Rural marketing involves more intensive personal selling efforts
compared to urban marketing. Firms should refrain from designing goods for the urban markets and
subsequently pushing them in the rural areas. To effectively tap the rural market, a brand must associate it with
the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their
own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations,
festivals and other activities where they assemble. Distribution Strategy One of the ways could be using
company delivery van which can serve two purposes - it can take the products to the customers in every nook
and corner of the market, and it also enables the firm to establish direct contact with them, and thereby facilitate
sales promotion. Promotional strategy- Annual "meals" organized are quite popular and provide a very good
platform for distribution because people visit them to make several purchases. 18
19. According to the Indian Market Research Bureau, around 8000 such meals are held in rural India every year.
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Rural markets have the practice of fixing specific days in a week as Market Days (often called ‘Haats’) when
exchange of goods and services are carried out. This is another potential low cost distribution channel available
to the marketers. Also, every region consisting of several villages is generally served by one satellite town
(termed as "Mandis" or Agri-markets) where people prefer to go to buy their durable commodities. If marketing
managers use these feeder towns, they will easily be able to cover a large section of the rural population. Firms
must be very careful in choosing the vehicle to be usedfor communication. Only 16% of the rural population has
access to a vernacular newspaper. So, the audio visuals must be planned to convey a right message to the rural
folk. The rich, traditional media forms like folk dances, puppet shows, etc., with which the rural consumers are
familiar and comfortable, can be used for high impact product campaigns. WHAT MAKES RURAL MARKET
ATTRACTIVE? Rural market has following attributes and the following facts substantiate this 742 million people
Estimated annual size of the rural market - FMCG Rs. 65,000 Crore Durables Rs. 5,000 Crore Agri-Inputs
(including tractors) Rs. 45,000 Crore 2 / 4 Wheelers Rs. 8,000 Crore 19
20. In 2001-02, LIC sold 55% of its policies in rural India. Of two million BSNL mobile connections, 50% are in
small towns / villages. Durables Urban Rural Total (% of Rural HH) CTV 30.4 4.8 12.1 Refrigerator 33.5 3.5 12.0
FMCGs Urban Rural Total (% of Rural HH) Shampoo 66.3 35.2 44.2 Toothpaste 82.2 44.9 55.6 20
21. Marketers can make effective use of the large available infrastructure - Post Offices 1,38,000 Haats
(periodic markets) 42,000 Melas (exhibitions) 25,000 Mandis (agri markets) 7,000 Public Distribution Shops
3,80,000 Bank Branches 32,000 Proliferation of large format Rural Retail Stores, which have been successful
also - DSCL Haryali Stores M & M Shubh Labh Stores TATA / Rallis Kisan Kendras Escorts Rural Stores
Warnabazaar, Maharashtra (Annual Sale Rs. 40 crore) Of the 6.0 lakh villages, 5.22 lakh have a Village Public
Telephone (VPT). 41 million Kisan Credit Cards have been issued (against 22 million credit- plus-debit cards in
urban), with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. Of the 20 million Rediffmail
sign-ups, 60% are from small towns. 50% of transactions from these towns are on Rediff online shopping site. 42
million rural households (HHs) are availing banking services in comparison to 27 million urban HHs. Investment
in formal savings instruments is 6.6 million HHs in rural and 6.7 million HHs in urban. 21
22. RURAL CONSUMER INSIGHTS Rural India buys - • Products more often (mostly weekly). • Buys small
packs, low unit price more important than economy. In rural India, brands rarely fight with each other; they just
have to be present at the right place. Many brands are building strong rural base without much advertising
support- • Chik shampoo, second largest shampoo brand. • Ghadi detergent, third largest brand. Fewer brand
choices in rural areas; number of FMCG brand in rural is half that of urban. Buy value for money not cheap
products OPPORTUNITIES Infrastructure is improving rapidly - • In 50 years only, 40% villages have been
connected by road, in next 10 years another 30% would be connected. • More than 90% villages are electrified,
though only 44% rural homes have electric connections. • Rural telephone density has gone up by 300% in the
last 10 years; every 1000+ pop is connected by STD. 22
23. Social indicators have improved a lot between 1981 and 2001 - • Number of "pucca" houses doubled from
22% to 41% and "kuccha" houses halved (41% to 23%). • Percentage of BPL families declined from 46% to 27%.
• Rural literacy level improved from 36% to 59%. Low penetration rates in rural areas, so there are many
marketing opportunities . FACTORS AFFECTING RURAL MARKETING Reach For a product to reach six lakh
villages, one need to know that 700 million villages are spread over 3.2 million sq. metre of area. The road
conditions are usually poor. It is, therefore, important for the marketer to have a good distribution system. Pricing
Pricing of... a product needs to be low and affordable. For example, FMCGs have creams and soaps@ Rs 5, hair
oil and shampoo sachets @ Re 1 and small Coke @ Rs 5. To develop a product to suit the rural scenario, the
focus should be on items of necessity. Product Awareness This is very important for the marketer to induce a
trial. Rural consumers visit high congregation areas like haats/fairs etc. where product awareness can be
created. Therefore, the right product needs to reach the right person at the right time and place. 23
24. Hurdles The rural population is spread over a large area where reach is expensive and the mass is
heterogeneous. The spending power of rural population fluctuates with the agri-yield. Hence, demand is not
consistent. Besides this, low level of product exposure, poor standard of living, spurious products with high
margins for retailers and lack of infrastructure leads to low penetration. Strategies The base work should be
extremely clear — distribution, visibility and the right communication can make a product. One needs to educate
the target audience and pick up self-help groups/villages between entrepreneurs/literate unemployed youth for
sustainable distribution channel. Consumer Behaviour Over the years, the attitude and lifestyle of rural folk has
changed due exposure through TV and awareness through an increase in literacy level. Also, consumers are
becoming brand loyal. With the constant invasion of corporates, the rural customer has started taking in “what
was educated to him”, the media, newspaper, cable, IT developments, mobiles have lead to increased
awareness. Besides, due to increase in purchasing power and literacy level of a section, the rural consumer has
become more receptive. S/he is highly influenced by “word of mouth” and has started looking at value for money.
With the changing market scenario, introduction of new products, increasing awareness amongst customers and
the overall development in rural sector, required a change in corporate marketing strategies, and this was done.
The sales team was asked to be more aggressive. With distribution in place, communication was simpler and
had a regional flavour. 24
25. The strategy to tap the rural market has to be more customized, simpler and based on one-to-one
communication. One has to reach the doorstep of the rural consumer to educate him on brands. It is said that
brand loyalty is higher in the rural customer. S/he might not be able to read but would ask Parle ka glucose
biscuit dena or would recognize the pack by... SIGNIFICANCE In recent years, rural markets have acquired
significance in countries like China and India, as the overall growth of the economy has resulted into substantial
increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural
areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special
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marketing strategy, namely, rural marketing has taken shape. Sometimes, rural marketing is confused with
agricultural marketing – the later denotes marketing of produce of the rural areas to the urban consumers or
industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services
to rural producers or consumers. Also, when we consider the scenario of India and China, there is a picture that
comes out, huge market for the developed products as well as the labor support. This has led to the change in
the mindset of the marketers to move to these parts of the world. Also rural market is getting an importance
because of the saturation of the urban market. As due to the competition in the urban market, the market is more
or as saturated as most of the capacity of the purchasers has been targeted by the marketers. So the marketers
are looking for extending their product categories to an unexplored market i.e. the rural market. This has also led
to the CSR activities being done by the corporate to help the poor people attain some wealth to spend on their
product categories. 25
26. Here we can think of HLL (now, HUL) initiatives in the rural India. One of such project is the Project Shakti,
which is not only helping their company attain some revenue but also helping the poor women of the village to
attain some money which is surely going to increase their purchasing power. Also this will increase their brand
loyalty as well as recognition in that area. Similarly we can think of the ITC E-Chaupal, which is helping the poor
farmers get all the information about the weather as well as the market price of the food grains they are
producing. In other view these activities are also helping the companies increase their brand value. So as it is
given above the significance of the rural market has increased due to the saturation of the urban market as well
as in such conditions the company which will lead the way will be benefited as shown by the success of HUL and
ITC initiatives. Conclusion Thus, looking at the challenges and the opportunities, which rural markets offer to the
marketers, it can be said that the future is very promising for those who can understand the dynamics of rural
markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant
and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers
spread over approximately six hundred thousand villages in rural India. 26
27. IV. COMPANY PROFILE 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 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. The name is formed by joining the first half of Daktar and
Burman. 27
28. • Largest Herbal & Natural Portfolio • 4000 Distributors in India • Retail Reach 2,500,000 • 5 Umbrella
Brands • 350+ products • 4000 employees • 15 Manufacturing Plants JOURNEY SO FAR . . . 1884 The birth of
Dabur 1972 The company shifts base to Delhi from Kolkata 1986 Registered as Public Limited Company 1994
Listed on the Bombay Stock Exchange 1998 Professional team inducted to run the company 2000 Crosses Rs
1000 Crore Turnover 2003 Pharmaceutical Business de-merged to focus on core FMCG 2004 Profit exceeds
Rs.100 Crore 2005 Acquires Balara strengthening Oral care & provided entry into Home care segment 2006
Dabur Figures in Top 10 Great Places To Work 2007 Dabur ranked among 'Asia's best under a Billion'
enterprises by Forbes 2008 Acquired Fem Care Pharma entering the mainstream Skin care segment 2009
Strong growth momentum continued in spite of general economic downturn 28
29. AWARDS & ACHIEVEMENTS (2008-09) Dabur India Ltd placed in the Dabur ranked 28th in ET- NDTV
profit Business List of “20 Stocks You Must Brand Equity Most Trusted Leadership awards2008 own”, Brands
2009 list for FMCG Prepared by Forbes India 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 Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8
million retail outlets all over India 29
30. a. Dabur’s Business Structure Dabur operates through three focused Strategic Business Units: Consumer
Care Division Consumer Care Division (CCD) addresses consumer needs across the entire FMCG spectrum
through four distinct business 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, Réal, 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. 30
31. Consumer Health Division Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines
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
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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 organized community of traditional practitioners and developing fresh batches of
students International Business Division 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 & marketing 31
32. Customer Health Division CHD STRUCTURE- OTC (57%) Generics Branded Products ETHICAL (43%)
Tonics Classical Branded Ethical CHD registered strong 19% growth during FY09 Investments in brand building
and new OTC launch driving growth Janma Ghunti, Hingoli, Sat Isabgol & Gripe Water transferred to CHD from
CCD for greater focus. Shampoos Market Size- 21 Billion Dabur Brands- 1.3 Billion 32
33. Shampoos continued its strong performance recording 31.5% growth for FY09. Vatika continues to be
fastest growing shampoo brand in the country with volume growth of 37.5% for FY09 vs. 14.4% for the category
as per AC Neilsen April-March, 09 update. The Vatika range gained market share which went up to 6.8% vs.
5.7% in the previous year. Digestives Market Size-5 Billion Dabur Brands- 1.5 Billion The Digestives category
witnessed a growth of 11.8% during FY09 resulting from an excellent growth of 31% witnessed in Q4FY09. New
variants and innovative consumer activations added to the momentum. Pudin Hara brand has been shifted to
CHD for increased focus on distribution through chemists Q4FY09 onwards. 33
34. FOODS Market Size-5 Billion Dabur Brands- 2.5 Billion Foods category growth of 14.4% for FY09. Brand
growth in FY09 • Real Fruit Juices: 14.9% • Homemade: 19.6% Real franchise growing at a healthy rate with Ad
campaigns establishing its superiority over competition. Activ Brand received a boost in Q4 with the ‘No Added
Sugar’ campaign. Consumer Care Division Market Size-33 Billion Dabur Brands- 5.6 Billion Dabur Amla Hair Oil
witnessed one of the strongest years reporting 20.4% growth during the year driven by on ground activations
and marketing support. Vatika Hair Oil had a resurgent year with a growth of 12.2% during FY09 backed by a
brand re-launch, new packaging and communication Anmol Coconut Oil recorded a growth of 42.2% for FY09
with gains in key markets. Dabur Mustard Amla Hair oil grew at 22.7% followed by re-staging under the Dabur
brand 34
35. b. Manufacturing Facilities in India 35
36. PERSONAL INSIGHT As far as our project is concerned we are assigned to find the business opportunity in
the rural Orissa. So we’ve to study & analyse the distribution channel through which the rural consumers &
retailers can avail the huge product line of Dabur India Ltd. Chains of intermediaries, each passing the product
down the chain to the next organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific
needs, which the producer must take into account, along with those of the all-important end- user. Channels A
number of alternate 'channels' of distribution may be available: • Distributor, who sells to retailers • Retailer (also
called dealer or reseller), who sells to end customers • Advertisement typically used for consumption goods
Channel membership 1. Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in consumer goods markets) price
competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial
markets) where 'suitable' resellers stock the product. 3. Exclusive distribution - Only specially selected resellers
or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'. 36
37. Channel motivation It is difficult enough to motivate direct employees to provide the necessary sales and
service support. Motivating the owners and employees of the independent organizations in a distribution chain
requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is
`incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than
its competitors; or a competition is offered to the distributors' sales personnel, so that they are tempted to push
the product Monitoring and managing channels In much the same way that the organization's own sales and
distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many
organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on
the larger accounts, with agents, covering the smaller customers and prospects. Bases on which the datas are
analyzed I’ve collected numerous datas regarding- • Sales promotion • Consumer buying behaviour • Availability
of various brands • Accessibility of the distribution sources to the distant rural population • Mode of transport the
rural consumers opting for purchasing the products. 37
38. C. DISTRIBUTION NETWORK USED BY DABUR INDIA LTD. Factory D.C. Stockiest Super stockiest
Modern Trade Wholesaler Institution Substockiest Semi-wholesaler Retail Trade Retail Trade Shoppers &
Consumer Dabur is using four branches distribution network to reach its target section. 1.1 URBAN
DISTRIBUTION CHANNEL [STOCKIEST] 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 stokist. 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. 38
39. 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. 1.2 RURAL DISTRIBUTION NETWORK [SUPER STOCKIEST] Under rural distribution
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network, the whole market is served by three parties, viz: Substokist, Rural Direct Stockiest and by the Dabur
network itself. The Substokist 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 stockiest who serves the whole urban
distribution. The Substokist 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. 1.3 INSTITUTIONAL 1.4 MODERN TRADE d.
Sustainability Report At Dabur, environment and nature is the lifeline of our business. With a portfolio of
Ayurveda and nature-based products, conservation of nature & natural resources is deep rooted in our
organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not merely
incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to
encompass our aspirations and responsibilities to the society and to the environment. It is this concept that
inspires us to optimize our business performance to tackle the new and growing challenges of environment and
technology. It is a concept on which we aspire to build an organization that will continue to increase value for all
our stakeholders for generations to come, through intensive focus on Conservation of Energy and Technology
Absorption, along with Health, Safety and Environment Protection. 39
40. Conservation of Energy Dabur has been undertaking a host of energy conservation measures. Successful
implementation of various energy conservation projects have resulted in a 13.8% reduction in the Company’s
energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has come despite an
8-9% volume increase in manufacturing, and an average 11.7% increase in cost of key input fuels. The host of
measures – key among them being use of bio-fuels in boilers, generation of biogas and installation of energy
efficient equipment – helped lower the cost of production, besides reduce effluent and improve hygiene
conditions & productivity. Health Safety & Environmental Review Renewing the commitment to Health Safety and
Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A dedicated “Safety
Management Team” has also been put in place to work towards the prevention of untoward incidents at the
corporate and unit level, besides educate & motivate employees on various aspects of Health, Safety and
Environment. The Company is also continuously monitoring its waste in adherence with the pollution control
norms. In pursuance of its commitment towards the society, efforts have also been initiated to conserve and
maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered
encouraging results and has put the company on the path to becoming a Water-Positive Corporation. Dabur also
initiated a Carbon Foot Print Study at the unit level with an aim to become a carbon positive Company in years to
come. At Dabur, we are committed to sustainable development throughout our diverse operations. And, we will
strive to translate the good intentions into concrete and lasting results, contributing to the ultimate good of the
society. 40
41. e. Technology Absorption Dabur has also made continuous efforts towards technology absorption and
innovation, which have contributed towards preserving natural resources. These efforts include: • Minimum use
of water in process by pre-concentration of herbal extract and reduction in concentration time. • Uniform heating
in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using non-stick
coating and formulation change. • Improvement in water treatment plant through introduction of RO (Reverse
Osmosis) system for DM water, reutilization of waste water from pump seal cooling and RO reject waste-water
management. • Introduction of water efficient CIP system with recycling of water in fruit juice manufacturing •
Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacillus
burchi The Company has achieved a host of significant benefits in terms of product improvement, cost reduction,
product development, import substitution, cleaner environment and waste disposal, amongst others. 41
42. f. Strategic Intent We intend to significantly accelerate profitable growth. To do this, we will: • Focus on
growing our core brands across categories, reaching out to new geographies, within and outside India, and
improve operational efficiencies by leveraging technology • Be the preferred company to meet the health and
personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our
deep knowledge of ayurveda and herbs with modern science • Provide our consumers with innovative products
within easy reach • Build a platform to enable Dabur to become a global ayurvedic leader • Be a professionally
managed employer of choice, attracting, developing and retaining quality personnel • Be responsible citizens with
a commitment to environmental protection • Provide superior returns, relative to our peer group, to our
shareholders 42
43. V. OBJECTIVE OF THE STUDY PRIMARY OBJECTIVE To find out the new business opportunity in
Sundergarh district of rural Orissa SECONDARY OBJECTIVE Availability & Visibility analysis of Dabur in rural
market of Sundergarh district of Orissa Coverage analysis of Dabur in rural market of Sundergarh district of
Orissa To find out the feasibility of new sub stockiest in rural market of Sundergarh district of Orissa 43
44. VI. RESEARCH METHODOLOGY TYPES OF RESEARCH Research are categorized into four major
category First is descriptive & Analytical Second Applied & Fundamental Third Quantitative & Qualitative Fourth
Conceptual & Empirical The project Presented is based on Descriptive Research type – As it includes Survey
and fact finding enquiries of different kinds of Quantitative figures like sales are taken as the most important
feature for the analysis. 44
45. VII. SAMPLING TECHNIQUE Sampling techniques can be broadly classified into two types viz. 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
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proportional to the size 45
46. Non-probability Sampling Haphazard or convenience sampling Purposive sampling Quota Sampling
Judgment Sampling The project done here is based on the Non-probability, purposive, Quota sampling As in the
given project the sample considered is specific to a predetermined area of Orissa VIII. TOOLS TO ANALYSIS
The major tools used in this project for the analysis are- 1. Bar chart (Bar charts are used for comparing two or
more values that were taken over time or on different conditions, usually on small data set ) 2. Pie-chart (Circular
chart divided into sectors, illustrating relative magnitudes or frequencies) As the datas collected are various types
of datas such as comparing based on value as well as the relative comparison, hence both the tools are to be
used for the proper analysis of the datas collected. 46
47. IX. METHOD OF DATA COLLECTION My Survey is conducted on two sources of data collection:- a)
Primary data b) Secondary data a) PRIMARY DATA Looking into the objectives and information needed, I have
chosen following two methods as per the response of the subject:- i) Schedules ii) Personal Interview. i)
Scheduler Method Schedules (Performa containing a set of questions) are being filled in by the enumerators who
are specially appointed for the purpose. ii) Personal Interview I have taken the opportunity to take personal
interview wherever it was essential. The strategy was adopted to avoid the biased information and to spill out the
required data from the respondent. This has supplemented the Schedules in a purposive manner. b)
SECONDARY DATA The Secondary data were mainly collected from different books, magazines, Journals,
company’s Literature, Newspapers, Internet and from the company personnel. 47
48. X. DATA ANALYSIS ANALYSIS BASED ON AVAILABILITY Availability No of % Outlet Available 85 82 Not
available 19 19 Total 104 100 The above chart shows that from 104 it is observed that Dabur products are
available in 82 %( 85) shops & 18 %( 19) shops are not having Dabur products. So this indicates that Dabur has
the maximum brand prevalence among all the other brands. In case of absence of Dabur brands in 19 shops
shows that this patch of outlet is lacking distributors’ attention, brand awareness among retailers or consumers.
48
49. ANALYSIS BASED ON THE MODE OF COVERGE Mode of No of Outlets % Coverage Not Covered 19 18
Stockiest 35 34 Sub-stockiest 12 11 wholesale 38 37 Total 104 100 I’ve visited around 104 retail outlets in
Sundergarh District, which are present in 16 villages. My survey tells that among them 37% (38) outlets are
covered through the Wholesaler, besides it 11% (12) shops are covered by Sub-stockiest & 34% (35) shops are
covered by stockiest. 49
50. In my view the graph shows the poor coverage pattern of Dabur India Ltd. This is because- I. Wholesalers
are playing major role in coverage as they are doing the indirect coverage. II. The direct coverage points like the
Stockiests or the Sub stockiests are covering the rural mass after the wholesalers. III. Retailers don’t bring huge
stock volume rather than they prefer to keep the stocks according to the demand of the consumers & purchase
the next lot when the old one exhausted. IV. Stockiests cover only those places which are nearer to town or
within 20 kms radius of distribution point. V. Unavailability of profitable schemes to the retailers. VI. Presence of
local brands which are used as the alternatives of Dabur. VII. Local Brands give attractive schemes so the
retailers do push marketing for local brands. ANALYSIS BASED ON MODE OF TRANSPORT 50
51. Mode of transport No of Outlets % Not Covered 19 18 Van 7 7 Order Booking 30 29 Self 48 46 Total 104
100 From the datas collected it has found that- Transportation done by the Outlets itself- 46%,Sub-stockiest
cover by Order booking- 29%, Stockiest provide Van bit- 7% & Uncovered market- 18%. So theses datas draw
our attention to following points- Most of the rural consumers preffer to bring the required goods from distribution
points by their own convenience. The distributors are not providing sufficient privilege of transportation to their
distant retailers because they think that this will affect their profit margin. Distant consumers or retailers don’t
show interest in purchasing from one wholesaler or stockist as they also keep in mind that which distributor will
give them highest profit margin. So the retailers don’t show loyalty to a particular distributor & hence the
distributor does not think for the transportation mode. Distributors also seek a considerable no of outlets present
in a particular village who are interested to purchase his goods, then only he could think about arranging the
transportation for them. Due to improper road condition & hilly areas also some distributors are unwilling to
provide transportation in remote villages. 51
52. ANALYSIS BASED ON MARKET SHARE Company Sales (in Rs) % Dabur 273500 32 HUL 361600 42 Any
other 222700 26 Total 857800 100 From the market studied for the business opportunity it was found that HUL is
the market leader of the market enjoying 42% of the market share alone, where as Dabur is approaching near to
it with 32%. From the survey it is found that Dabur is closely competing with HUL with a market share difference
of 10%.My research work regarding market share says- In this rural patch though HUL is the market leader but
there is presence of some other local players who have captured the market by motivating the retailers for push
sale. The other brands have somewhere dominated the sale of HUL in Biscuits, Chocolates, Confectionery,
Personal, Health, Homecare, Detergent and Foods as the local companies provide hefty margins & offers. The
rural consumers consider price more than quality so their purchase intent always bents towards the low cost
products as they lack brand awareness. 52
53. There is a positive sign to Dabur that it has the market share close to HUL as its distribution network may
not be effective but there are less no of local companies who substitute its products as it has got ayurvedic
background. ANALYSIS BASED ON AVAILABILITY OF DIFFERENT PRODUCTS 53
54. Products Available (in no of outlets) % Tooth paste 72 69.23 Lal Dant Manjan 85 81.73 Shampoo 85 81.73
Amla 55 52.88 Dabur lal tel 83 79.81 Vatika Oil 33 31.73 Hajmola 41 39.42 Honey 13 12.5 Glucose 25 24.04
Anmol 18 17.31 Chyawanprash 9 8.65 Gulabari 7 6.73 Pudin Hara 16 15.38 Home made 13 12.5 Odonil 3 2.88
Odomos 1 0.96 My analysis tells that- Dabur Lal Dant Manjan & Shampoo leads the rural market with 85%
availability. Next to these Dabur Lal Tel & Toothpaste is available in most of the retail outlets including Medicine
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store, Grocery store as well as the betel shop. Products like Amla, Hajmola & Vatika are available in a moderate
range in all shops Anmol, Pudin Hara, Glucose & Honey are the products which are present in the shops in a
considerable amount because consumers prefer Local honey as it is cost effective. Odomos, Odonil,
Chyawanprash & Gulabari are showing less availability in rural shops as they are priced very high &
sophisticated in nature. 54
55. VILLAGE STATUS The villages so chosen for the research work can be divided into two categories
according to the sales of Dabur in the particular villages. 1- Villages having High Sale (sale above Rs 15000) 2-
Villages Having Low Sale (Sale below 15000) According to the above mentioned need classification of villages
we can group the villages as follows- Villages Having High sale Villages Having Low Sale Village Sale Village
Sale Balishankara 16800 Alanda 2200 Birikera 23300 Balanda 4000 Kutra 29300 Jolongbira 6800 Tumulia
17000 Katang 1800 Karamdihi 32500 Kukuda 3400 Khatkhurbahal 88000 Lulkidihi 1400 Kinjirikela 41400
Puruna Bisra 3500 Tunmura 1600 Suruda 500 In the above cases we noted that there are some markets having
higher Sales as Balishankara, Birikera, Kutra, Tumulia, Karamdihi, Khatkhurbahal, Kinjirikela, we can appoint
sub-stockist. Whereas in the other cases we can give spoke connection from the nearby market that either have
or we going to have a direct covering point (Sub-stockist) 55
56. VILLAGES HAVING HIGH SALE [N.B.-The sale of HUL & other products are considered to be the
benchmark for the comparison] By analyzing the datas available about the sales figure it can be noted- As you
can see HUL is having highest sales in these villages followed by Dabur & other companies. The proportionate
of Dabur is not same throughout the area selected for the study. The village Khatkhurbahal is showing the
highest sales & it is the most appropriate proposed Sub-stockist point. 56
57. PER CAPITA SALE From the above data we can find out that:- The per capita sale of HUL is higher in
comparison to Dabur in Khatkhurbahal, Kinjirikela, Kutra, Balishankara & Birikera. The per capita sale of HUL is
nearly same to Dabur in Karamdihi & Tumulia. Per capita sale is highest in Khatkhurbahal. The markets like
Khatkhurbahal, Kinjirikela, Kutra, Balishankara, Karamdihi are having their own markets & they also distribute the
products in nearby small markets. 57
58. MODE OF COVERAGE The above figure reflects:- Mode of direct coverage is higher in the markets as
compared to that of indirect coverage. Markets like Khatkhurbahal, Kutra, Kinjirikela & Balishankara are mainly
covered by Stockist. Markets like Tumulia, Karamdihi are less stockist influenced & Birikera shows absence of
stockists. Birikera shows absence of sub-stockist & Balishankara, Kinjirikela & Kutra show fully covered. Hence,
it will better to appoint direct coverage point at these set of villages. 58
59. MODE OF TRANSPORTATION From the datas collected regarding transport it is obtained that:- Some
villages like Khatkhurbahal, Kutra, Karamdihi, Kinjirikela & Balishankara are getting transportation facility highly
from the direct point of distribution. In case of Birikera & Tunmura they have got high indirect coverage. 59
60. VILLAGES HAVING LOW SALE This chart shows us- The villages having low sales show an astonishing
thing that other brands besides HUL & Dabur is sold in a higher volume. The sale of other brands is more in
Jolongbira, Alanda, Katang & Tunmura. We must consider the Alanda, Katang & Tunmura because there the
sale of HUL is low as compared to Dabur & Other brands. 60
61. PER CAPITA SALE As we discussed above the sale of the market is very low, so ultimately it results in a
very low Per Capita sale in the villages. My findings regarding this low sales volume say that- Half of the villages
coming under this segment shows high per capita sale of Dabur. Requirement of consumers may be so less that
they could not go for buying the products in a large volume. Or it may be the case that people are poorer to
afford the product. 61
62. MODE OF COVERAGE From the figure presented above we get that:- In the low sales segment, indirect
coverage is found highest in most cases. Most of the Outlets depending upon the Wholesalers to avail the
products which result to :- • Higher indirect mode of coverage than that of the direct mode of coverage. • Market
is mostly affected by the decision of the Outlet owner. Sub-stockists don’t contribute much to the distribution to
this segment. 62
63. MODE OF TRANSPORTATION Above Chart shows:- Most of the Outlet owners have to move to the market
to collect the product. Sales of the market are Very low. Van & Order booking seem very poor in this segment.
Outlets preferring the Wholesaler to get the Product & they always switch over the distribution point according to
their requirement. These factors results in availability of the products at high demand 63
64. XI. FINDINGS All the surveyed shops & the facts generated stress on the following findings- Dabur is a well
known & widely appreciated brand in rural Orissa (Sundergarh Dist).Because from the 104 outlet surveyed
Dabur was found to be available at 85outlets, i.e. it has a presence of around 82%. There is the presence of Sub
Stockiest, but more people & retailers prefer to purchase the products from other channels. Those may be either
a Stockiest who provide them the van to transport the products or a Wholesaler who is providing them the
products with good margin. Customers & Outlets have complained about the less number of schemes available
to them & the frequent price variation from person to person in the same distribution. Sub-Stockiest also
functions like other retail outlets & doesn’t hire required number of staff. Credit facility is wide spread in the rural
market, so the consumers prefer the retail outlet that gives them goods on credit. Low product line available to
the rural consumers & the rural market does not show a clear boundary. I’ve found another strange thing that the
distributors who have been entrusted with the task of covering a particular area are not completely accessible by
the consumers or the outlets. There are some lapses on the part of distributors, may be due to the remoteness.
When promotion comes into picture I’ve perceived that- • The rural people are lacking brand awareness. • Their
buying behaviour or purchasing decision is influenced by the peer group. • Consumers get to know about
different products through the Advertisements shown on T.V., & wall paintings, point of purchase displays, &
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65. XII. SUGGESTIONS I want to suggest the following things for enhancing the market opportunities & extract
enermous profit- I. Direct coverage points (Sub-stockiests) should be assigned to the villages having higher
Sales those are Balishankara, Birikera, Kutra, Tumulia, Karamdihi, Khatkhurbahal, and Kinjirikela. II. The area of
operation by the Sub-stockiests/Stockiests should be located properly. Sub-stockiests should be directed to
cover the nearby rural market at least once in a month or a fortnight to the village offering low sales. They should
be clear cut directed to which area they can cover and to which they shouldn’t. Name of the Villages Sales of
Can be covered Status of the covering point Dabur from Jolongbira 6800 Karamdihi Sub-stockiest (proposed)
Balanda 4000 Birikera Sub-stockiest (proposed) Puruna Bisra 3500 Rourkela Stockiest Kukuda 3400
Khatkhurbahal Sub-stockiest (proposed) Alanda 2200 Kutra Sub-stockiest (proposed) Katang 1800 Kutra
Sub-stockiest (proposed) Tunmura 1600 Rajgangpur Stockiest 65
66. III. Company should provide financial assistance to the person involved in the direct coverage, for example
ROI (Return on Investment). An optimized ROI can encourage the Stockiests or Sub-stockiests to go for-
Providing credit to the Retailer/Wholesaler. Cover some extra Outlet May move for greater frequency of Visit to
the Outlets IV. While appointing Sub-stockiests the characteristics which should be taken into account are:-
Personal Characteristics • Behavior of the person • Goodwill of the person • Proprietor involvement Financial
Characteristics • Capacity to invest • Infrastructure available • V. If a person is having the financial aspects more
than the behavioural aspects then he will not succed in attracting customers or reinforce sales volume. 66
67. Besides all these the Organization should keep its eye on:- 1. As in the rural market most of the outlets are
managed by women, they should be properly empowered & acknowledged about the product & services. 2.
Using value-based pricing strategy. Rural people always have a tendency to buy things which give more
satisfaction in comparison to price. So we must design the product which gives the rural customers value for
money. 3. The changing perception of rural mass should be kept in track, as gradually they want to change their
change taste & preferences. 4. The distribution channels should be localized. 5. Closely monitor the Stockiest
points & encourage the Sub- stockiest to sell the products with a remarkable margin to the rural customers &
retail outlet. 6. Use backward and forward integration. 7. World-of-mouth communication strategy works better in
rural markets as these markets enjoy limited reach of media. Once people become familiar with these products,
they would perceive them as necessities. 8. Be careful on retail margins otherwise they promote local brands. 67
68. XIII. CONCLUSION To succeed in the rural market, companies will need to adopt the 4Ps of Marketing to
the 4As in their strategy- Awareness, Acceptability, Availability, and Affordability. Access and availability are
equally important as the mantra for success in rural is “Jo dikhta hai wohi bikta hai”. An income dispersal project
by NCAER (National Council for Applied Economic Research) for 2006-07 shows that the no of poor household
will shrink by half to 28 million from 61 million in 1997-98, whereas the middle income household will double & the
rich household will treble over the decade in rural india. This upward push taking rural people from poverty to
prosperity will lead to greatly increased purchasing power. Today’s non consumers comprising the rural poor will
enter the market as first time buyers in large numbers. To claim a larger share of growing rural pie will call for a
radical shift in management thinking- From gross margins to high profit, from high value unit sales to a game of
high volumes of capital efficiency, from the one-solution- fits-all mandatory to market innovations. Therefore the
time to prepare for tomorrow is today. 68
69. XIV. BIBLIOGRAPHY WEB LINKS:- www.dabur.com www.irmaindia.org www.wikipedia.co.in
www.deccanherald.com www.indiantelevision.com BOOKS REFFERED:- Rural Marketing:- R.V.Badi and N.V.
Badi Cases in Rural Marketing:- C S G Krishnamacharyulu & Lalita Ramakrishnan The Hindu: - Business Line
69
70. XIV. SCHEDULE 1) District:-………………………………………………….. 2) Village
Name:-…………………………………………. 3) Population:-…………………………………………….. 4) Name of
the outlet:- ………………………………………………………………………………………………... 5) Retailer’s
Name & Address:-………………………………………………………
…………………………………………………………………………………………………. 6) Availability of Dabur
(Yes/No):-………………… 7) Turnover of Dabur (If Yes):-………………………. 8) Turnover of HUL
(Yes/No):-………………………. 9) Turnover of HUL (If Yes):-…………………………. 10) Turnover Of
others:-…………………………………. 11) Total Sales per Month:-…………………………….. 12) Mode of
coverage:- A) Sub-Stockist B) Stockist C) Wholesaler 13) Covered By (Name of the
Person):-……………………………………………. 14) Covered From (Name of the
Place):-…………………………………………… 15) Mode of
Transportation:-…………………………………………………………… A) Order Booking B) Van C) Self 16) Brands
Available:-………………………………………………………………………
………………………………………………………………………
……………………………………………………………………… 70
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