Dabur India: Beverages

Product Management

Report by Group 11
Bhawna Jain (PGP-09-110)

Harit Rawal (PGP-09-121)

Mohammed Irfan Kabir (PGP-09-135)

Pranab Kumar Jha (PGP-09-055)

Sneha Jhunjhunwala (PGP-09-076)

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 Table of Contents

Page No.

1. Introduction to FMCG Industry………………………………………………………….....3

2. About DABUR India………………………………………………………………………….3
3. Introduction to FNB and FBB Industry……………………………………………….……7
4. Product Portfolio Analysis……………………………………………………………….…..8
4.1 Real
4.2 Nature Fresh
4.3 Bursst
4.4 Activ
4.5 Lemoneez
4.6 Commonality
4.7 Modified Products
4.8 Dropped Products
5. Competitor Analysis……………………………………………………………………...…14
6. Primary Research Results…………………………………………………………………..16
7. Future outlook……………………………………………………………………………….19
8. Recommendations for DABUR……………………………………………………….……19

Appendix………………………………………………………………………………………...……21

References……………………………………………………………………….…………….……..30

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1. Introduction to FMCG Industry
The Indian FMCG Industry is one of the most dynamic industries as it caters to a population of more
than one billion consumers. The market size is US$ 160 billion by value. It is growing at tremendous
rate of 13.4% on an average and the main drivers of this growth are increase in population, increase in
disposable income and changing lifestyles.

Below pie chart shows the breakup of the FMCG Industry dominated by the Food Products with over
43% contribution. Other important categories are personal care and fabric care. Many other categories
are small and offer great potential for growth. Rural India contributes around 33% to the overall
FMCG Industry. The graph below shows the variability in the Sensex and FMCG Index. There is a
high correlation between the two indexes and FMCG is a major contributor to the index.

Food
5% products
4% 2% Personal
4% Care
Fabric care

8% 43% Hair care

12% OTC

household
22% care
Baby care

Others

2. About DABUR India

The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an
Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur India
Ltd has come a long way today to become one of the biggest Indian-owned consumer goods
companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has
successfully transformed itself from being a family-run business to become a professionally
managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others
and to always set new standards in corporate governance & innovation.

Dabur India Ltd is one of India‟s leading FMCG Companies with Revenues of about US$750
Million (over Rs 3390 Crore) & Market Capitalisation of over US$3.5 Billion (over Rs 16,000
Crore). Building on a legacy of quality and experience of over 125 years, Dabur is today India’s
most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities -

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- Dabur as the master brand for natural healthcare products, Vatika for premium personal care,
Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and skin
care products.

Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care,
Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 2.8
million retail outlets with a high penetration in both urban and rural markets.

The company enjoys a market leadership in some of the product category like fruit juices, digestives
and chyawanprash and has good market share. The other segments that Dabur entered later on are
trying to find in roads to the large consumer base.

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History of Dabur

1884: Birth of Dabur

1896: Setting up a manufacturing plant: With growing popularity of Dabur products, Dr.
Burman expands his operations by setting up a manufacturing plant for mass production of
formulations

Early 1900s: Ayurvedic medicines: Dabur enters the specialised area of nature-based Ayurvedic
medicines, for which standardised drugs are not available in the market.

1920: Expand Further: Dabur expands further with new manufacturing units at Narendrapur
and Daburgram. The distribution of Dabur products spreads to other states like Bihar and the
North-East.

1936: Dabur India (Dr. S.K. Burman) Pvt. Ltd: Dabur becomes a full-fledged company - Dabur
India (Dr. S. K. Burman) Pvt. Ltd.

1986: Public Limited Company: Dabur becomes a Public Limited Company. Dabur India Ltd.
comes into being after reverse merger with Vidogum Limited.

1992: Joint venture with Agrolimen of Spain: Beginning a new chapter of strategic partnerships
with international businesses, Dabur enters into a joint venture with Agrolimen of Spain. This
new venture is to manufacture and market confectionery items in India.

1996: 3 separate divisions: For better operation and management, 3 separate divisions created
according to their product mix - Health Care Products Division, Family Products Division
and Dabur Ayurvedic Specialties Limited.

1997: Foods Division / Project STARS: Dabur enters full-scale in the nascent processed foods
market with the creation of the Foods Division. Project STARS (Strive to Achieve Record
Successes) is initiated to give a jump-start to the Company and accelerate its growth
performance.

2003: Dabur demerges Pharma Business: Dabur India approved the demerger of its
pharmaceuticals business from the FMCG business into a separate company as part of plans
to provider greater focus to both the businesses. With this, Dabur India now largely
comprises of the FMCG business that include personal care products, healthcare products and

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Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic,
Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India,
would also be part of the Pharmaceutical business.

2005: Dabur aquires Balsara: As part of its inorganic growth strategy, Dabur India acquires
Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and
Household Care products in the Indian market, in a Rs 143-crore all-cash deal.

2007: Celebrating 10 years of Real: Dabur Foods unveiled the new packaging and design for
Real at the completion of 10 years of the brand. The new refined modern look depicts the
natural goodness of the juice from freshly plucked fruits.

2007: Foray into organised retail: Dabur India announced its foray into the organised retail
business through a wholly-owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140
crores by 2010 to establish its presence in the retail market in India with a chain of stores on
the Health & Beauty format.

2007: Dabur Foods Merged With Dabur India: Dabur India decides to merge its wholly-owned
subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational
efficiencies. The integration will also help Dabur sharpen focus on the high growth business
of foods and beverages, and enter newer product categories in this space.

2008: Acquires Fem Care Pharma: Dabur India acquires Fem Care Pharma, a leading player in
the women's skin care market. Besides an entry into the high-growth skin care market with an
established brand name FEM, this transaction also offers Dabur a strong platform to enter
newer product categories and markets.

2009: Dabur Red Toothpaste joins 'Billion Rupee Brand' club: Dabur Red Toothpaste becomes
the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste crosses the billion rupee
turnover mark within five years of its launch.

Strategic Intent

Dabur as a Company intends to significantly accelerate profitable growth. To do this, they plan to:

 Focus on growing their 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 the target
consumers with safe, efficacious, natural solutions by synthesizing their deep knowledge of
ayurveda and herbs with modern science
 Provide their 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 their peer group, to their shareholders

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3. Introduction to FNB and FBB Industry
The Indian food market is approximately Rs 2,50,000 crore ($69.4 billion), of which value-added
food products comprise Rs 80,000 crore ($22.2 billion).

The segments include food processing, bakery, confectionery, dairy, meat & poultry, fruits &
vegetables, fisheries (including aquaculture), food ingredients, grocery retail, packaging, alcoholic
beverages, soft drinks and bottled drinking water, canning, fats and oils, filters and filtering materials,
flavours and flavour enhancers, nutrient additives, frozen food/refrigeration and thermo processing,
among others.

In the food processing industry it is the unorganised sector which has a major share of 42% and even
the small scale industries outperform the organised sector. The food processing however is only 9% of
the complete manufacturing industry. Out of this 40% of the food processed is meat, fish, fruits and
vegetables. Beverages account for around 20% of this food processing segment. The food industry in
India suffers from issues like poor infrastructure, storage facilities, highly unorganized market, road
side vendors and these issues need to be addressed.

The market size of the fruit based industry in India is around Rs. 2500-3000 crores. The fruit based
beverages can be divided into drinks, nectar, juices and 100% pure juices. The below table provides
the details of fruit content, sugar content, price points, brands available and the respective market
share for different kinds of fruit based beverages.

Heads Drink Nectar Juice 100% Juice

Fruit Pulp 10% 40% 85% 10%

Added Sugar Very High High Medium Nil

Costs/ L 45 75-80 70-75 85-100

Brands Frooti, Maaza Real Tropicana Real Activ

Market Share 60% 10% 15% 15%

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There are several growth drivers for this industry which is growing the fruit juice category by almost
30%. The important drivers are increase in health consciousness among consumers, increase in
disposable incomes, and more sophisticated cocktail culture. If we see the model below we observe
that the juices are equally consolidated by large FMCG companies and rest is controlled by the
fragmented industry. New age beverages enjoy higher growth and mostly fragmented.

Category Growth (CAGR)

Fruit Juice 30%

Energy Drinks 45%
Alcoholic Drinks 12%

4. Product Portfolio Analysis

4.1 Real
Real Juice is one of the most innovative and successful product category launch made by Dabur in its
history. Before the product introduction, most Indians were used to seeing the neighbourhood juice
vendor perched on the roads with carts or selling them in tiny shops, with blends of a combination of
fruits of various tastes. If the vendor‟s sanitary conditions were found to be unhygienic, then juices
were instantly prepared within the confines of the kitchen.
Fruit-based drinks in those times were full of preservatives, and were only popular in the West, like
Snapple, which were imported but not available in most stores in India. Also, the concept of selling
packaged juices in India was relatively new as the Indian consumer has always preferred fresh juice to
packaged juice. The consumers were also wary of packaged food, as they felt that it had preservatives
and was therefore not fresh.

Despite the unfavourable mindset towards packaged juice, Dabur changed the way Indians perceived
fruit juices in tetra packs. It launched its own line of fruit juices in 1996 under the Real brand. The
company chose the name Real because it wanted customers to know that its juices were natural and
healthy, contained no preservatives and tasted like eating actual fruit. Over the years, it has become
the leading packaged juice brand in India and is also one of the best selling brands of Dabur. The key
driver for the product acceptance has been its taste. The company introduced the product on the
assumption that Indian consumers liked to add sugar when they squeezed their juice and hence they
catered to the customers' taste and preferences by adding sugar to their juices, which ultimately led to
its success.

The organized fruit beverage market (nectars, drinks and juices combined) is around Rs 500-crore
.Fruit drink market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per
cent of the market today) has grown at a 20 per cent to 25 per cent rate. Dabur has turned fruit juices
into Rs 60-crore business has been turning on the taps in recent months — and it hasn‟t been afraid to
innovate.

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4.2 Real Nature Fresh
Launched: 1996-1997

USP: My real Fruit Power

Target segment: Housewives and Children

Positioning: positioned as Juice made from best quality fruits, Real

does not have artificial flavours and preservatives, and offer your
kids not just great taste, but also FRUIT POWER

SKU size (price): 1 Litre (Rs. 75), 200ml (Rs. 15)

Flavours: 14 flavours

Advantages: Real Juices are brought to us in hygienic packaging

with added nutrients. They are processed and packed in state-of-the-
art plants, absolutely untouched by hands to maintain hygiene and
quality. They have the goodness of juice from a freshly plucked fruit. Real juices bring the true taste
of fruits whole family can enjoy all year long, without waiting for the right season for fresh fruits.

The brand was initially positioned to appeal to parents who wanted to give their school-bound
children a portable beverage that would be a healthy alternative to nutritionally bankrupt colas.
However, it later found that the product appealed more to the children‟s parents and the working class
community than children themselves as it attracted people who didn‟t have the time to prepare Juice
at home or couldn‟t visit Juice Parlours due to lack of time.

Since one variant of juice was unable to cater to different niche segments, which it later found out,
Dabur launched different sub-brands to cater to the growing demands of each of them. It began with
the launch of Real Activ in 2002.

Accolades for Real

• India's No. 1 Fruit Juice brand

• Voted as a Superbrand
• Voted by consumers as the most trusted fruit juice brand for four years in a row
• Real awarded the Reader Digest Trusted Brand Gold Award 2009 in the food & beverages category

Usage:

 Can be used a health drink

 Can be added to vanilla ice cream and puddings
 Can be used for making shakes and smoothies
 Dabur provides several recipes of mocktails for the Indian consumer on its website for Real
Nature fresh

4.3 Real Range Burrst

Positioning: It is positioned as a range of light & refreshing thirst quenching fruit beverage. Real
Burrst promises an experience that delivers refreshment through lightness of fresh fruits to you. Real
Burrst is a light non fizzy beverage for audiences of all age groups

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Variety: Real Burrst, the latest addition to Dabur's Foods portfolio, has Available in 4 exciting
flavours:

 Mixed Fruit
 Crispy Apple
 Orange Bytez
 Mango Mania

The Non-fizzy cool flavors from Real Burrst offer the ultimate refreshment to the consumers.

SKU and Price:

SKU Price
1 litre Rs. 65
200 ml Rs.15

Distribution plan:
At the initial period, the product will be available in big retails chains in cities and after that, it will be
available all over the country.

Competitor:
Dabur's Real Burrst is expected to enter into direct competition with other major players like 'Maaza'
and 'Frooti', Pepsi, Coca-cola, Parle.

Launched: It was launched in New Delhi, May 1st 2009. Burrst has not been advertised, only some
ground level promotions and activities have been undertaken so far, because of the seasonality and
logistical reasons.

Mission: The fruit beverages industry in India now stands at Rs 1400-1500 crores and the market has
grown at the rate of 30% where Dabur India, through the new launch Real Burrst, is looking at
establishing a market share of 5% in next 2-3 years.

Primary focus: In-home consumption (home consumption accounts for one-third of the market)

Points of difference: Dabur has launched the drink in mixed fruit, apple, orange and mango flavours.
It is a non-fizzy drink meant for all age groups. The mango variant uses Alphonso mango and the
orange variant contains some pulp.

Reworks positioning: Fruit-based beverages with over 85 per cent fruit pulp are classified as fruit
juice, between 20 and 85 per cent as nectar, and less than 20 per cent as fruit drink.

However, Dabur has taken a different tack with its various beverages, said Mr Sitaram, Head of
Marketing.

“This classification was more from a manufacturer point of view and consumers did not connect with
the same. So, we have reworked the positioning (active health management, nutrition) based on the
specific consumer need that each product and brand addresses,” he explained.

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4.4 Real “ACTIV”

Launched: 2002

USP: 0% Added Sugar, 100% taste

Target segment: conscious individuals and sports enthusiasts

Positioning: Réal Activ is a range of unsweetened fruit and vegetable juices that contain no added
sugar, colors or preservatives.

SKU size (price): 1 Litre (85)

Flavors: 5

ACTIV: After the launch of Real juices, Dabur wanted to cater the Niche segment with a different
range of juices and so ACTIV was introduced in the Indian market. Real Activ is targeted at health
conscious young executives for whom fitness is a way of life. These are made in the DABUR‟s
manufacturing plant at NEPAL.

Activ is a great combination of Antioxidant, cooler and fruit- vegetable delight. Réal Activ Juice is
deliciously tasty & gives the natural goodness of fruits & vegetables. Refreshing and invigorating or
relaxing and calming, fruit and vegetable juices provide a concentrated boost of benefits for today's
eat-on-the-run lifestyle. They are full of nutrients; easy to consume and save a lot of time, yet they
have the goodness of whole fruits & vegetables. These juices are naturally fat free, energy and
contain significant amounts of vitamins and minerals.

In fact, today they are seen as 'vitamin and mineral cocktails'. Taking a glass of fruit and vegetable
juice on a daily basis is an easy way to ensure that the body gets vital vitamins and minerals. The
best part is they fit in to all sorts of lifestyle. Fruit juices are an excellent complement to whole
fruits as a part of healthy eating plan.

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4.5 Lemoneez
USP: Offers consistent lemon taste and flavour, anytime of the year

Positioning: Dabur positions it as a recipe item which can be used for instead of lemon as it has a
consistent taste and flavour. This can be used to make mocktails at home. Dabur is trying to break the
habit of Indian households of using fresh lemons.

SKU size: 250 ml (Juice of 25 lemons approximately)

Advantages:

Do away with hassles of cutting and squeezing lemons.

Provides consistent lemon taste and flavour, anytime of the year

Price:

Overseas Online: US $18 (100 ml)

India: Rs. 24 (250 ml)

Sourcing:

Lemons concentrate is sourced from blending companies in Europe like Dholer, Euro Citrus and
Wild. This reduces the variability in the prices of sugar and reduces the costs to Rs. 0.50 per lemon.

Strategic Changes:

In July 2003, Dabur shifted the manufacturing unit of Lemoneez to Nepal to benefit from lower
import duties. The earlier manufacturing base was Sahibabad in Uttar Pradesh. It was the second
brand after REAL to benefit from importing the lemon concentrate into Nepal and thus reducing the
price from Rs. 30 to Rs. 24 for 250 ml. Import duties and freight charges is only 7% compared to 38%
of producing it in India.

Usage:

Prepare Nimbu Pani

Prepare Lemon Tea

Add delicious lemon tang to Salads and Indian

Curries

Marinate Meat

Dabur provides several recipes of mocktails for the Indian consumer on its website:

Apple water, Berry Bonanza, Ice Tea, Lemon Chiller, Lemon Squash, Pineapple Panga, Lemoneez
Fruit Cocktail

Dabur also other recipes for main courses where Lemoneez could be used: Brinjals and Rice
Egyptian style, Chicken Sate, Curry of Tofu Mushrooms and Vegetables, Fish Amritsari, Palak and
Green Pea Pulaov, Arvi aur Rajma Ki Khasta Tikki, Sprout Masala

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4.6 Commonality
Dabur started with the Real juices in this segment but has moved up and down the price points to cater
to the target population covering the entire spectrum. For the price-conscious consumers but still want
the goodness of a fruit-based beverage, it has recently launched Real Burrst which is priced below the
Real juices. For the health-conscious consumers, Real Activ is there which has no sugar. Real Juices
basically cater to those consumers who are particular about their daily supplements of nutrients and
demand taste too. Lemoneez is a little different product in this segment as its positioning is based
more on convenience and it is not a ready to drink products unlike other FBB products from Dabur.
Dabur has mainly segmented the market based on the health and price factors. It could start looking at
other products which could be placed in segments like water, sports drink and the like which have
been covered in detail in the recommendation section.

4.7 Modified Products

Coolers

In 2007, Dabur Twist was launched which combined the taste of mango along with that of orange,
apple and pineapple. Coolers had been launched two years ago as a fruit-based beverage which came
in aam-panna, pomegranate and watermelon variants. Since, both coolers and twist were quite closely
related to each other as products, Dabur decided to merge Coolers into the „Twist‟ umbrella of
products in 2007.

4.8 Dropped Products

Real Junior

Real Junior was created to segment the market within the fruit juice category as a mass market
approach rather than on the basis of individual preferences. Dabur chose to drop Real Junior as there
were problems galore with this product. The problems were:

 It was promoted as a fruit juice rich in calcium, which did not sell as a fruit juice, is after all, a
fruit juice, and branding it calcium-rich did not gel well
 It was made available in tetra-packs of 125 ml for Rs 10, because that was the quantity Dabur
conceived children would be able to finish in one go. So, although the pack size was smaller,
packaging costs did not come down and therefore a lower pricing did not bring in revenues.
 Other fruit-juices were also available for the same price and pack size, so people did not find
much of a reason to switch to Real Junior.

Real School Packs

Withdrawal of Real Junior also led to the withdrawal of Real School Packs as it failed to resonate with
the target segment.

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5. Competitor Analysis
The packaged fruit & juices market has become competitive like any other segment. Apart from the
various local brands, the fruit juice market is shared by brands from Dabur (Coolers, Real), PepsiCo
(Tropicana, Tropics, and Slice) Parle Agro (Appy Fizz, Frooti), Coca Cola (Maaza), Mother Diary
(Safal), Godrej (Xs range) & Leh Berry. Although there are some other brands also prevalent like
Kissan(HUL), Del Monte,but these have only a small percentage share in the market. Real brand from
dabur is the market leader in this category with around 50% market share followed by Tropicana with
33% percent market share (Please refer to chart below).

Market share of Dabur vis a vis its competitors

60%

50%
Real(Dabur)
40%
Tropicana(pepsi)
30%
Others
20%

10%

0%
Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09

Source: Company, ICICIdirect.com Research

Real has three brands currently available in the market Real Nature fresh, Real Activ and Real
Brust.All three varieties are positioned differently to cater to different segments. Real Brust is newly
launched product in the juice drink category.

Brand growth in FY09

Real Fruit juices grew by 21% with gains in market share. Activ Fruit Juices reported 6%
growth.(Ref: www. Dabur .com)
With sales growing by 15.8% from Rs 236.8 crore FY08 to Rs 274.4 crore FY09, the foods division,
which once operated as a wholly owned subsidiary, has been merged back into the parent company
and integrated with the CCD. With a 13.3% revenue contribution to the CCD, the foods division
primarily consists of fruit beverages under the Real & Activ brands and culinary additives under the
Hommade brand. Dabur‟s Real and Activ, which registered a 14.9% growth in FY09, dominate the
juices market with a market share of around 50%. By aligning its Activ range of juices in the health
and wellness category via the “no sugar” campaigns and the emergence of health and lifestyle
concerns coupled with the launch of new variants (Real Burrst) will enable DIL to capitalize on the
growing fruit juice market.

Head to Head

It is very clear that Tropicana is the biggest competitor of Real in the Indian market . Real has still
maintained its leader position in the beverage segment due to its , brand image,first mover advantage

14
and innovative products. Tropicana is leveraging on its brand image and huge sourcing capabilities
and is trying to get Real‟s market share.

Head to head Real and Tropicana are compared in tables below:

Real Tropicana
Company Dabur Pepsi
Market share 57% 30%
leveraging characteristic Ayurvedic Foundation International Image

Advantage 1)First mover Core competency in beverage

2) innovation in product industry

core competencies 1) trusted name in natural health 1) Superior technological

over 100 years Knowhow
2) Healthy product mix in nature 2) Huge sourcing capabilities
and healthy products 3) Extensive distribution

Packaging 1) Spin cap tetra pack 1) smart sport symbol for

healthier lifestyle
Promotion Way of lifestyle Youthfulness, freshness

Capabilities 1) Upstream linkages in the supply Setting up strategic

chain manufacturing bases
2)extensive distribution

The segmentation strategy followed by Real and Tropicana is described in the table below:
Segmentation
Real Tropicana
Geographical
Location Metros/mini metros Metros/mini metros
Demographic
Age Mothers/children 6-14/young executives Bachelors/newly married
Income High disposable income High disposable income

Education Educated working professionals Educated working professionals

social Class SEC-A/SEC-B SEC-A/SEC-B

Psychographic
Lifestyle
Personality Sociability Self Confidence
Behavior
Knowledge of the Aware Aware
product

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Product wise Neck to neck

Varieties Real Nature Fresh Tropicana

Positioning(tagline) Made from best quality fruits, Real does not Premium juice
have artificial flavors and preservatives, and
offer your kids not just great taste, but also
FRUIT POWE
("My real Fruit Power")

Flavors 14 Fruit flavors mango, apple, guava.

Pineapple, mixed fruit

SKU's(price) 1 Litr(75), 200ml(15) 1 LTR(75)

200ml(15)

Varieties REAL ACTIV Tropicana 100%

Positioning(tagline) Deliciously tasty & gives the natural Critical constituent of the Breakfast
goodness of fruits & vegetables without Menu
the burden of added sugar (Let‟s Make Breakfast 100%)
(Discover good health naturally)
Flavors Orange, apple, Orange carrot, Mixed Apple, guava. Pineapple, mixed
fruit Beetroot carrot fruit, Grape

SKU's(price) 1 Litr(85), 200ml 200ml (20),1 LTR(85)

Varieties REAL BURST Tropicana Twister

Positioning(tagline) Light & refreshing fruit Drink brand that brings the goodness of fruit
beverage juice, made from best of fruits from around the
(Lightness of Fruits and Burst world.
of refreshments) (Toot padega Fruit)

Flavors Mixed Fruit, Crispy Apple, Orange Thrill & Apple Burst
Orange Bytez and Mango
Mania
SKU's(price) 1litre(65), 200ml(15) 200ml(12),350ml(22),1.2L (70)

6. Primary Research Results

We conducted a survey among the second year students in S P Jain Institute of Management and
Research Mumbai to analyze the consumer behaviour about juices and water. The results show the
analysis from 36 respondents.

16
Juices

Consumers are becoming more and more health conscious. Around two thirds of the respondents
prefer juices to soft drinks in order to quench their thirst. These are the choices made without
considering water as an option. When asked about the company‟s whose product they would prefer
around 61% of the respondents preferred Dabur to Pepsi and Coke.

11% 8%
Coke

33% Juices 19% Dabur

66% Soft Drinks 61% Pepsi
No brand

When asked to name their favourite brand around 61% said Real followed by Tropicana and Frooti.
86% of the respondents would like to have juices in tetra packs as compared to glass and plastics.

3%
3%
8% Frooti 11%
28% Glass
Maaza
Plastic
Real
Tetrapack
61% Tropicana 86%

The consumers would prefer to have juices in 300ml packs as that of the soft drinks. The price they
would like to pay for 1000ml juice would be around Rs. 40.

1000 ml
8% < = 40
19% 500 ml 22%
36% 45
25%
400 ml
50
39% 300 ml 31%
> = 55
8% 200 ml
11%

When asked to rank the factors which they

look while purchasing juices aesthetics came
out to be the top most criteria. This was
followed by promotional offers, size of the
SKUs, price of juices and then the brand.

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Water

When asked about the preference of company for water Pepsi stood out with 36% as compared to
Parle and Coke. However as a brand Parle‟s Bisleri outscored Pepsi‟s Acquafina and Coke‟s Kinley.

6%

17% Parle
19% Aquafina
28%
Pepsi
Bisleri
Coke
19% 36% Kinley
75%
No brand

The respondents would prefer to pay only Rs. 10 even if it is branded. The preferred SKU size is
1000ml as compared to SKUs of smaller sizes.

6%

11% 8% <=8
1000 ml
10
50% 500 ml
39% 12 44%
42% 200 ml
> = 15

Respondents would prefer to drink water in plastic cases as compared to glass and plastic.

6%

22%
Glass
Plastic
Tetrapack
72%

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7. Future Outlook

From the analysis of Dabur‟s product portfolio and the primary research conducted, following are the
pointers towards the future of this product category in the food industry:

Increasing Health Consciousness

Consumers are becoming more and more health conscious as revealed from the primary research and
the buying patterns of the consumers. The industry is shifting towards food products with low calories
and low sugar. Large companies like Coke and Pepsi have come out with drinks having zero sugar
and very less calories. People who are suffering from obesity and diabetes are now trying these new
products.

Emerging energy drinks market

A new segment for energy drinks is now growing at a faster rate than the other segments. Consumers
are now taking part in a lot of sports activities and need a drink to regain the energy levels after such a
work out. Red Bull and other drinks in this category are doing really well. These drinks are also very
common for the sports personalities and thus have a huge market.

Westernized Water

The east is adopting almost all the habits of the west like in food, fashion or lifestyle. This has also led
to the adoption of clean, pure, hygienic branded water. With a few companies launching mineral
water, the new segment has emerged favoring blended water. Now apart from drinking water to
quench the thirst consumers also want to intake minerals and other nutrients.

Increasing Environment Sensitiveness

Consumers are becoming more aware of the environment around them and their responsibilities
towards it. So many of the consumers now buy products in tetra packs or similar packaging.

Increasing need for freshness

Consumers are now more demanding for the need of freshness in the products. They are now more
wary about the fruit juices with regard to the packaging, manufacturing and expiry dates and storage
conditions.

8. Recommendations for DABUR

As the beverage industry looks to the future, India is the country that offers the greatest potential,
even more so than China. Right now, India accounts for approximately 10% of global beverage
consumption. That makes beverage consumption in India the third largest in the world, after the
United States and China. As reported by Dabur India Marketing Head (Foods Division) K. K.
Chutani, Indian fruit beverages market is valued around Rs 1,100- crore is growing at 30 percent
annually. However the entire fruit drink business of Dabur is around Rs 300 crore and is growing at a
rate of 23 per cent. For maintaining this growth and increasing we suggest the following
recommendations to Dabur:

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 i. The awareness level of Real Activ and Real Burst is low currently. Hence we recommend that
Dabur should increase the awareness of its new variants i.e. Real Activ and Real Burst. As the
consciousness towards the health is increasing among the Indian customers Real Activ can
really be a successful brand if it achieves the right awareness level.

ii. Lemoneez till now is only a 1 crore brand after almost 10 years of its launch. The awareness
level of this brand is lowest of the entire Dabur beverage portfolio. Moreover it is also facing
stiff competition from Nimbooz (PepsiCo) & LMN (Parle). Dabur has not actively pursued
this brand and has been late to react. Lately Dabur has promoted the usage of Lemoneez by
launching several alternate usages like Mocktails & Lemoneez Recipes to make it popular
among the households. Dabur has also increased spend on advertising of Lemoneez. We
recommend that Dabur should either launch Lemoneez as a Non Fizz Lemon drink in the Non
Fizz category where currently the competition are Parle LMN and Nibooz of Pepsi co or push
the current Lemoneez offering in the restaurants and food chains as a lemen extract. Lime
soda currently is a popular drink option in most of the restaurant, fast food chains and dhabas
across India

iii. We also feel that Dabur can increase its product portfolio by Energy/Health drink. In 2006-
07, the size of this market was around Rs 1,500 crore. The market is dominated by
GlaxoSmithkline Consumer Healthcare Ltd‟s (GSKCH) brands such as Horlicks, Boost, Viva
and Maltova. Together, these brands account for more than a 70% share of the malted food
drinks (MFD) market. The rest is divided between Heinz India Ltd‟s Complan, Cadbury India
Ltd‟s Bournvita and Nestle India Ltd‟s Milo. Currently the market in of energy/health drinks
in India is in nascent stage. Dabur is a trusted name in Indian families and Health drink by
Dabur will gain easy acceptance among the Indian masses. Also Dabur can leverage its
ayurvedic image to develop more acceptance of its health drink. This will also add new
product catering to a totally new segment in Dabur‟s portfolio.

iv. Dabur can also enter in Nutrient Rich flavored water market. There is not much competition
in this market for Dabur. Flavored water is a beverage consisting of water with added natural
or artificial flavors, herbs, and sweeteners, and is usually lower in calories than non-diet soft
drinks. In many cases, flavored waters add vitamins and minerals to their beverages through
the incorporation of fruits in order to better market their products. Pepsi and Coca-Cola are
two well known brand owners of flavored water. It is mainly famous in American Market.
This is a new market can Dabur can take the first movers advantage and make its mark in this
category.

v. We recommend Dabur to launch Real Drink Mix like Tang. Tang brand is owned by Kraft
Foods. After the takeover over of Cadbury, Kraft is taking the advantage of Cadbury‟s
distribution system to sell its products in India by sharing trucks and store contacts. Tang is a
powdered soft drink; the makers call it a blend of nutrition with convenience, offering
families around the globe, a great-tasting beverage. They claim it provides a nutritious and
real fruit-flavored drink. It is available in different types of packaging. We recommend
Dabur to launch its Real brand in powdered form to offer Indian customers more convenience
and variety.

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Appendix

Appendix 1: Dabur’s footprints

International manufacturing plant location

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Appendix 2: Vision and Mission of the Company

VISIONS

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

PRINCIPLES
OWNERSHIP

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

PASSION FOR WINNING

We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are
determined to be the best at doing what matters most.

PEOPLE DEVELOPMENT

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

CONSUMER FOCUS

We have superior understanding of consumer needs and develop products to fulfill them better.

TEAMWORK

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

INNOVATION

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

INTEGRITY

We are committed to the achievement of business success with integrity. We are honest with
consumers, with business partners and with each other.

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Appendix 3: Accolations

Accolades 2010-11

 Dabur Amla Hair Oil & Réal fruit juices voted as India's Most Loved FMCG Brands with
highest top-of-the-mind recall in their respective categories
 Dabur India Ltd ranked as India's Most Customer Responsive FMCG Company

Accolades 2009-10

 Dabur bags Top Marketer Award for 2009 in Consumer Goods market
 Dabur voted by consumers as fourth Most Liked Health Brand in India'
 Réal wins Trusted Brand Gold Award 2009

Accolades 2008-09

 Dabur is NDTV Profit Business Leader in FMCG - Personal Care Category

 Dabur India Ltd ranked amongst India's Most Innovative Companies
 Réal awarded Reader‟s Digest Gold Trusted Brand Award 2008

Accolades 2007-08

 Dabur ranked Number Two Newsmaker in the FMCG industry in 2007

 Réal bags the Reader's Digest Trusted Brand Gold Award

Accolades 2006-07

 Dabur India amongst Top 3 Most Respected FMCG Companies by Business World
 Réal bags Reader's Digest Trusted Brand Gold Award

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Appendix 4: Distribution Route

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Appendix 5: Questionnaire

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References
1. http://www.telegraphindia.com/1050208/asp/jobs/story_4296832.asp
2. http://arrowpoint.blog.co.uk/2007/12/01/fruit_juice_industry_in_india~3379228/
3. http://www.dabur.com/en/investors1/confcalltra/DILTranscriptInvConfCall2979.pdf
4. http://www.fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beverage
5. http://www.blonnet.com/2003/07/03/stories/2003070302110600.htm
6. http://www.icicidirect.com/mailimages/ICICIdirect_DaburIndia_Coverage.pdf
7. http://www.topnews.in/dabur-india-forays-fruit-beverage-market-eyes-5-drinks-mart-3-yrs-
2161174
8. http://www.dabur.com/default.aspx for all product portfolio

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