INDUSTRY ANALYSIS: Key Trends in Dietary supplements & Chyawanprash industry The product is essentially a dietary supplement.

The dietary supplements market is pegged at Rs 37,750 million and is expected to witness a healthy growth rate with a CAGR of 15.9 % for the period 2009-2016i. The market is in its growth stage. The Indian dietary supplements market is typically classified into four supplement categories: Chyawanprash Herbal Vitamin and mineral Dietetic supplements

Functional foods are easier to consume are fortified with the same nutrients that are present in dietary supplements. Functional foods as a class have come to challenge dietary supplements in a major way. It is essential to differentiate dietary supplements from them. The market size of chyawanprash is approximately Rs 500 croresii and it is growing at a comparatively lower growth rate of 11 %. Given the stress and health issues that people in urban India face due to lifestyle related problems, theres a growing awareness today about health and wellness, and increasingly, people are seeking healthier products. People are preferring ayurvedic and organic products to those manufactured using chemicals as they are becoming health conscious. So, there is a huge market that has been left untapped by the Chyawanprash industry. In 50s Dabur pioneered the concept of branded Chyawanprash and since has invested heavily in product development, clinical studies and consumer awareness and now controls 66% of market shareiii. There are many Chyawanprash brands in the Indian market now such as Emami Group, Himalaya, Bajaj, and Baidyanath. Research suggested that a large number of youth, particularly kids, find the taste an entry barrier. To bridge the gap between health and taste and bring more consumers they are introducing new variants.

Regulations: Food Safety and Standards Act, 2006, lacked clarity in the dietary supplements regulatory scenario. The Food Safety and Standard Rules, 2011 helped bridge this gap. Hence, when any new entrant wants to enter Indian dietary supplement market, it is very important to comply with regulatory framework so that business is run smoothly. The focus areas should be product evaluation for each active ingredient in the context of permissibility, standards and dosage of vitamins / minerals

allowed, product classification as per various Indian Healthcare Laws (legal definition of the product), India specific label claims and advertisingiv. Marketing Mix

PRODUCT Chyawanprash contains herbs, spices, and other ingredients mainly amla and it is rich in Vitamin C linked to various health benefits. Chyawanprash is consumed daily to prevent any ailments. They are introducing number of variants like sugar-free, flavored to cater to the differing tastes of individuals .

Porter 5-Forces Analysis PLACE Chyawanprash is not just consumed in India but also the rest of the world. All the players have a very strong distribution network

PROMOTION Chyawanprash has always lauched marketing campaigns to connect well to the masses, hence made its way into every household. They have backed their marketing campaigns with wellknown stars. Chyawanprash communicates that prevention is better than cure, it is better to strengthen ones immune system and stay healthy instead of relying on medicines for cure.

PRICE The price of Chyawanprash is approximately Rs 200 per kilogram.

SWOT

Strengths With life-style related diseases on the rise, the product offers an excellent nutritional format for the entire family, especially to the health and calorie conscious individuals, diabetics, obese and overweight peoplev Opportunities Can increase penetration in both rural and urban markets by introducing , With increasing pollution and stress levels, demand for immunity boosters would increase and chyawanprash could target this need playing on its Ayurvedic features, export.

Weaknesses Seasonal demand (during winters), Low penetration, Limited differentiation, rd Unbranded account for 2/3 market. The Chyawanprash Industry is yet to capture the beverage market in full swing. Threats The product category has matured Threat from local medicinal herbs in rural areas, Raw material cost is climbing due to unique ingredients required which will hit the margins

PORTERS

Threat of New Entrant (High) Demand for ayurvedic and organic products is high (Ranbaxy)

Competitive Rivalry (High) Lot of players Baidhyanath, Himani, zandu, Himalaya

Threat of substitutes (High) Lot of substitutes like health drinks (Horlicks)

Customer Power (High) Due to alternatives switching power is low

Supplier Power (High) High demand for herbal products

Dabur Brand History Dabur is India's largest Ayurvedic medicine manufacturer was founded by Dr SK Burman in 1884. Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foodsvi. Dabur is one of the Indias leading FMCG Company with revenue of Rs 6,146.38 Crorevii. It is present in over 60 countries covering over 2.8 million retail outlet. A brief time-line of Dabur and its different businesses is provided belowviii. 1884 1919 1940
Birth

1949

1970

1975

1978

1988

1992 1994 2008 2008

2011

Skin Care R & D unit Personal Acquires Fem Coconut Oil Grade edible Launch of Launches Launch of Launch of First Health care Chyawnpras Oral Care & industrial Hajmola pharmaceutica Vatica Retail Store &Dentacare (Hair Oil) guargum h l medicines powder

Dabur: In 2004-2005 the old Banyan tree was replaced with a new, fresh Banyan tree to focus on youth to convey growth, and warmth and energy. To summarize this essence Celebrate Life was chosen as a new tag.

Mission: To maximize shareholders value, by offering superior quality nature based products, that contributes in improving consumers life in Personal care, Health Care and foods. Vision: "Dedicated to the health and well-being of every household" Brand Principles: Ownership, Passion of Winning, People development, Consumer focus, Innovation

Two Spoons a day keeps Illness Away: Dabur Chyawanprash, a time-tested, age-old formulation has a number of herbs like Amla is a health supplement that helps body's internal defense mechanism, the immune system, thereby protecting you from everyday infections, cough, cold & stress. The brand has been using Amitabh Bachchan as its brand ambassador. Chyawanprash is only popular among kids and elders. To target youth and break the perception of being a health supplement only for kids and elders, Dabur has come out with a new campaign featuring the new ambassador MS Dhoni, new packaging with lot of red color symbolises the activity and alertness, more modern bottle shape and a new logo which also reinforce the new targeting. The tagline is changed from " Zaroorat Hai to ' Fit Body , Active Mind '.

Shape of the bottle, Logo, ' Fit Body , Active Mind ', Dhoni & Amitab Bachan

Old & Wise, 50-60 years, Indian, traditional, belongs to a joint family

Caring grandfather

Ownership, Passion of Winning, People development, Consumer focus, Innovation

Healthy & Strong, Immune to infections

Health conscious, Protective, concerned about himself & family

Is A caring grandfather using age-old ingredients to prevent diseases and improve health
i

Source: http://www.fnbnews.com/article/detnews.asp?articleid=29259&sectionid=49 Source: http://www.mbarendezvous.com/topimagearchives.php?id=1172 iii Source: http://www.dabur.com/share_holders/Dabur-Annual-Report_2011-12.pdf

ii

iv

Source: http://interlinkconsultancy.com/pdfs/whitepapers/Regulatory_prespective_Nutraceuticals_whitepaper_Dec2011. pdf vv Source: http://articles.economictimes.indiatimes.com/2008-01-11/news/28459334_1_chyawanprash-ranbaxyshares-calorie-conscious-individuals vi http://www.dabur.com/About%20Dabur vii http://www.dabur.com/en/media/default.aspx?id=251&showdetail=y&show=this&type=corporate viii http://www.dabur.com/About%20Dabur-History