Innovation Report

INNOVATION REPORT ON DABUR CHYAWANPRASH GROUP MEMBERS LAVANIA SAJEED KHAN MUGWANEZA ELYSEE CONTENTS OExecutive summary OIntroduction OInnovation:  §Innovation model  §Dabur as an innovative product  §Market pull OProduct features OConclusion OReference EXECUTIVE SUMMARY: Dabur India Limited is the primary market influential in FMCG products. Many initiatives were taken by the company which includes reduction in price, reducing the impact on environment, introduction of a new product and improvement of quality which is making them a leader in the market. Dabur has positioned its products in the ‘natural health’ category. To meet the fitness and individual grooming wishes of their customers with secure, effective and ordinary solutions, Dabur India Ltd has synthesized a profound information of Ayurveda and herbs with modern science. Dabur India Limited is the 4th largest FMCG Company in India with revenues of Rs. 4110 crores and is ranked among the top 50 OTC(Over-the-Counter) Companies in the world. We see the diversification and expansion in their product segments under various brand names. It is trusted worldwide and is the world’s foremost Natural Health Care and Ayurvedic Company. Dabur has been in the front position by establishing an alternate way of living by going beyond national boundaries and hence they are marketing their products in many countries outside India. Combining luxury, nutrition and wellness, the â€Å"nutraceutical market† is growing at a faster pace. Chyawanprash is made by using various herbs and is one of the products of Dabur India Ltd which is in great demand in the market. Herbal supplements were gaining popularity as preventive supplements. Thus, the concept of preventive care coupled with the rising use of herbals was a major reason for the relatively rapid growth of herbal medicines over allopathic drugs. Another major segment where herbal products outperformed allopathic drugs was in the segment of ‘lifestyle disorders’. The increase in lifestyle disorders like diabetes,joint pain,stress caused individuals to consider herbal medicines, as these diseases were lifetime problems and using herbals in conjunction with allopathic products would reduce the allopathic dosage and thereby reduce the incidence of side effects. A shift from prescribed medication to self-medication was a significant shift. As prescription products proved to be expensive, consumers started buying OTC products. Shlomo Maital, D. V. R. Seshadri,2007 Many products including Dabur Chyawanprash started appearing in OTC form,hence these products benefitted. Hence the product’s innovation is in using herbal supplements and dominating the market segment over other allopathic medicines. It has identified its market segments by implementing the market pull strategy and thereby produces the products according to the changing needs and preferences of the consumers. Example: Chyawanprash which is for adults and Chyawanprash Junior which is for children. Chyawanprash Junior has various nutrients required for growing children and is present in different flavours to attract that segment of the society. It typically uses product innovation where the company comes up with innovative value added features like being sugar free to its existing product category to increase the demand and therefore to occupy the Number 1 position in the market. INTRODUCTION: Driven by a vision to bring Ayurveda to society in a contemporary form, Dr. Burman founded the Dabur India Limited in 1884 by targeting to a large number of people who didn’t have access to proper cure; hence he came up with the idea of Ayurvedic medicines to treat people in a natural way. His rigorous hardwork made the company grow from a small Ayurvedic pharmacy, to a well-established company which is a global leader in the market. Dabur India Ltd has effectively changed its position from being a small business to an efficiently managed venture. Their continuous innovation is the secret to their success and Dabur India Ltd retains the focus on quality and has an ISO 9002 certification. It has three major strategic business units (SBU’s) which includes Consumer care division, Health care division and International business division. VARIOUS PRODUCT INNOVATIONS OF DABUR: Launched Chyawanprash in tin pack-The ancient curative was in a packaged form and it dominated the market by being the wide seller with a huge market share. Entered Oral Care segment- Introduced a herbal toothpowder which was called Lal Dant Manjan. It was well-packed and was made available to the masses at affordable prices. Launched Hajmola tablet- Used to control indigestion and became popular world wide and thereby came up with Hajmola tablets which are of different flavours.. Became successful by coming up with Real Fruit Juice- Real Fruit Juice was very much successful throughout India and hence accounted for majority of the company’s share. First-ever online shopping portal – First-ever online shopping portal www. daburuveda. com[->0] came into existence. Nutrigo-A new range of health supplements. WHY CHYAWANPRASH? -It is an authentic ayurvedic product,hence they do not make use of any chemicals. -No side effects. -Superior in quality. -Improves immune power and stamina. -Has a huge market share. INNOVATION The practical refinement and development of an original invention into a usable technique or product; or a process in which creativity is applied to every facet of an organization’s value chain, from beginning to end, to develop new and better ways of creating value for customers. Shlomo Maital and D. V. R. Seshadri. Chyawanprash is an example of Product Innovation: The development of new and improved product is called product innovation, so it is definitely a product innovation because it came up with new products which are first of its kind in the market with better product attributes. DABUR AS AN INNOVATIVE PRODUCT By expanding their presence through smart innovations, managing costs efficiently and getting consumer insig hts, the company takes into consideration these opportunities very seriously to stay ahead in the market. Chyawanprash is a very good example of product innovation because the original flavor of the product was the first of its kind and shook the existing market with its innovative idea and superior quality. â€Å"Innovation is becoming increasingly important in attaining and maintaining competitive advantage†. ShlomoMaital,D. V. R. Seshadri After it established a position for itself in the market, they came up with two different flavors like Mango and Orange. Chyawanprash targeted for children were known as ‘Chyawanprash Junior’ with yummy chocolate flavours that children would like and has all the nutrients that a growing child may require apart from the child’s normal diet. Another product which was launched in the market was called Chyawanprash sugar free. As Dabur Ltd came up with new innovations, it was able to cater to the needs of various segments of the society and age group in terms of product attributes, affordable price and variety in flavours. MARKET PULL : It is a strategy where the needs of the consumers are satisfied and one of the main motive of this strategy is to make profits. Since majority of the people these days are prone to various diseases due to unhealthy eating habits, the company adopted various techniques for manufacturing the product. Chyawanprash is sometimes given as a prescribed medicine by Doctors which boosts the energy levels and strengthens the immune system of the body. Hence it uses the market pull approach where it identifies the need in the market and manufactures its products accordingly. Understanding that a majority of the people have become health-conscious, age-old traditional practices are blended with science in making the product, thereby ensuring that there are no side-effects. Research was done and it was found that children are not really health-conscious and hence their main target segment was people above 30years of age. The R&D found out that small kids did not eat Chyawanprash until and unless they were given by force by their parents, hence they came up with fruit-flavoured Chyawanprash exclusively for children which were first of its kind in the market. INNOVATION MODEL ADOPTED BY DABUR CHYAWANPRASH: SIMULTANEOUS COUPLING MODEL Continuous innovation can be attributed to the company’s success. After Chyawanprash became the leader in the market, the company’s continuous R&D activities have helped in identifying the changing preferences and tastes of the consumers based on the demographic details of the consumer. Research was done and it was found that people belonging to the age group 13-30 were not really health-conscious and hence they strategically divided their target segments into two groups and manufactured products to suit the needs of both these segments. 1. Dabur Chyawanprash Junior for children was made of various yummy flavors like Chocolate,Orange and Mango. 2. Dabur Chyawanprash for people above 30. It is very good for health as it contains anti-oxidants and hence it is a health supplement for people belonging to various age groups. GROWTH OF THE COMPANY IN OTHER COUNTRIES: Because of the brand loyalty that has been built over a long period of time, the company has crossed the Indian boundaries and has established a foot-hold in places outside India. Dabur’s overseas product portfolio is specially made to suit the needs and aspirations of the consumers in the international markets spreading through the Middle East, North Africa, West Africa, Europe and South Asia. Dabur has a number of manufacturing facilities in International business as well. The company has its manufacturing facilities spread across the Asia & Africa with 8 being in India and 5 outside India. The company has a world-wide recognition. Dabur is on the verge of becoming a global market leader. PRODUCT FEATURES:  ·Made by using the age old approach of Ayurveda.  ·Healthy and prescribed by Doctors.  ·Available in different flavours.  ·Protects from day to day ailments like cough and cold to ‘lifestyle disorders’. It is very good for health and hence recommended to all age groups because it contains anti-oxidants which helps to fight against diseases. CONCLUSION: There is considerable increase in the sales of the company which means there is greater demand for the products in the market. Dabur has come up with various innovative products under various brand names for different product categories like food products, Health care products etc. Dabur Chyawanprash contributes for the company’s majority of the market share. Dabur with its various product features is in the fore-front and is able to keep customers loyal to their brand. Its vision of being in the forefront in the healthcare sector by providing remedies and care from ‘head to heel’ is now becoming a reality. Since the costs are affordable, people belonging to the lower strata of the society have started consuming Chyawanprash because of its added advantage. REFERENCES: http://www. dabur. com/About%20Dabur www. thehindubusinessline. in[->1] http://www. dabur. com/en/Investors1/Annual_reports/2010-11/Dabur-Annual-Report-2010-11. pdf http://www. dabur. com/Chyawan%20Junior [->0] – http://www. daburuveda. com [->1] – http://www. thehindubusinessline. in