case study of marico

7/28/2019 Case study of marico

1/48

[1]

Introduction To Industry

FMCG Industry in India

Indias consumer market is riding the crest of the countrys economicboom. Indias fast moving consumer goods (FMCG) sector is the fourth

largest sector in the economy of India with a total market size in excess of

US$ 13.1 billion. If we go by statistics, roughly around 73% of the Indian

population lives in the rural areas- thats a very large market. Many giant

players, both foreign as well as domestic, are competing in the market

with a view to capture it.

The growing consumerism in India shows the rapid increase in Indian

consumer purchasing power, it shows strengths and opportunity that lies

in rural Indian markets especially for FMCG products. As a result of it I

have opted to undergo the training in Marico Company a leading Indian

FMCG Company having excellent distribution channel and deep rural

reach in India.

As the major part of the market is yet to be taped one need to evolve a set

of strategies and there by plans to tape the potential Indian consumer

market. To capture such a great opportunity, only good product and brand

awareness will not be sufficient but proper distribution channel must be

there


2/48

[2]

Reason For Selecting The Topic

There are many companies competing in the Indian FMCG market he

Indian FMCG sector with a market size of US$14.8 billion is the fourth

largest sector in the economy. India is a consumer oriented market. The

company entering the market must enter by having a aggressive marketing

strategy and considering the need of consumer, and then only they can

survive.Now a days all consumers have become conscious regarding the

quality of the product use daily.

The consumer has multiple option of same product to choose fromdifferent brands. Before buying a product the consumer compares the

product with other brands and after satisfying he buys it. There is on

monopoly in this market. Its a open market any company can enter at any

time and leave whenever they want.

There are many big companies in the FMCG market in India companies

like Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestl

India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury

India, Britannia Industries, Procter & Gamble Hygiene and Health Care,

Marico Industries, Nirma, Coca-Cola, Pepsi and others.

All companies now a day enter the market by a aggressive marketing

strategy which helps them to capture the market as much as possible.

Marico is one of the companies having strong marketing strategies. It has

the best rural distribution channels. Because of its marketing strategy poor

people can use goods of luxurious standards by buying small sachets.


3/48

[3]

Important Reason For Choosing The Topic.

1) The aggressive marketing strategy used by the company in capturingboth the rural and urban market.

2) The strong rural network and efficient distribution network of the

company.

3) The strong standing of the company in the market with such strong

product profile and maintaining the price and quality of their products till

now..

4) The continuous improvement in their product, and giving them best

possible product

5) Low pricing and high quality of the product.


4/48

[4]

Importance Of The Study

The scope of studying of marketing strategy and marketing of products inrural India

Agriculture is the main stay of live hood in our country 70% of Indianpopulation directly or indirectly depends on agriculture. The Indianfarmers are diverting from traditional crops and new techniques of

production. The study will help farmers interested to grow cash crops.

The findings of the study mainly the facts related to production, areacovered, and new marketing strategies are a useful statistic forunderstanding the market.

The study is useful with relevance to changing marketing strategies,geographical factors.

In relevance of the FMCG market this study is useful for studying thehold of marico in the Indian marketThe study is important as it through light on:-A) New strategies for marketing FMCG products

b) Launching of small sachets for rural area

c) New techniques of packagingd)The strong connectivity to rural India

The study is important as the recommendations and suggestions givenwill be useful to overcome the problems and constrains in marketing ofFMCG products.The study is useful as it highlights the problems and constrains inmarketing product.

Thus it can be stated that study has a vast scope depending upon itsobjectives and subject matter.

The study is also important as something useful will be output in termsof finding recommendations and solutions.


5/48

[5]

Objectives Of The Study.

1. To know the organizational structure.2. To study the marketing process.3. To enhance long-term value of company brands by achieving

excellence in distribution performance.

4. To study the importance of product positioning.5. To study various marketing strategies.6. To study the competition faced by the company.7. To study How Marico enhances its growth.8. To know Maricos international business.


6/48

[6]

Methodology.

Methodologies refer to the theoretical analysis of the methods appropriate

to a field study. Project Methodology helps the presentation of the data in

a correct manner. A project cannot be made without using propermethodology.

There are two types for collection of data:

1) Primary Data Collection.

2) Secondary Data Collection.

PRIMARY DATA COLLECTIN-

The data is original in nature and it is collected at first time for a specific

purpose is called as Primary Data. Primary Data for Market Survey is as

follows:

1) Interview Method: For this project an interview is taken personally

to collect information. Here, I had asked several questions to the super

distributor to collect relevant information for project.

2) Questionnaire Method: In this a list of several questions was

prepared to be ask to the consumer and the regional marketing head and

distributor to collect information by getting its answers.

3) Survey Method: In this a survey was carried out by asking few

questions to the customers using marico products. And a report was made

by their feedback and view about the product.


7/48

[7]

Secondary Data:

The Data collected from a source that has already been published in

any form is called as secondary data. Secondary data is often readily

available.

After the expense of electronic media and internet the availability of

secondary data has become much easier Secondary Data was collected by

pretending to be a potential customer from the Internet And from the

website www.maricoindia.com. And other reference books. Some of the

data has be taken from the annual report available online on company site.


8/48

[8]

Introduction To FMCG Industry

FMCG Concept and Definition: The term FMCG (fast moving consumer

goods), although popular and frequently used does not have a standard

definition and is generally used in India to refer to products of everydayuse

Conceptually, however, the term refers to relatively fast moving items

that are used directly by the consumer. Thus, a significant gap exists

between the general use and the conceptual meaning of the term FMCG.

Further, difficulties crop up when attempts to devise a definition forFMCG. The problem arises because the concept has a retail orientation

and distinguishes between consumer products on the basis of how quickly

they move at the retailers shelves.

The moot question therefore, is what industry turnaround threshold should

be for the item to qualify as an FMCG. Should the turnaround happen

daily, weekly, or monthly? One of the factors on which the turnarounddepends is the purchase cycle. However, the purchase cycle for the same

product tend to vary across population segments.

Many low-income households are forced to buy certain products more

frequently because of lack of liquidity and storage space while relatively

high-income households buy the same products more infrequently.Similarly, the purchase cycle also tends to vary because of cultural

factors. Most Indians, typically, prefer fresh food articles and therefore to

buy relatively small quantities more frequently.


9/48

[9]

Introduction To Marico Ltd.

Marico is a leading Indian Group in Consumer Products & Services in the

Global Beauty and Wellness space. Marico was incorporated in 1988 and

during 1990 took over the then 40-year old consumer Products business of

The Bombay Oil Industries Limited. Maricos Products and Services in

Hair care, Skin Care and Healthy Foods Generated a Turnover of about

INR 31.3 billion during 2010-11. Marico Markets well-known brands

such as Parachute, Saffola, Hair & Care, Nihar, Shanti, Mediker,Revive,

Manjal, Kaya, De rma Rx, Aromatic, Fiance, HairCode, Caivil, Black

Chic, Code 10, Ingwe,X-Men, LOvite and Thuan Phat.

Maricos brands and their extensions occupy leadership positions with

significant market shares in most categories - Coconut Oil, Hair Oils, Post

wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche

Fabric Care, Male grooming etc. Marico is present in the Skin Care

Solutions segment through 103 Kaya Skin Clinics and Derma Rx clinics

in India, The Middle East, Bangladesh, Singapore and Malaysia. Marico's

branded products are present in Bangladesh, other SAARC countries, the

Middle East, Egypt, South Africa, Singapore, Malaysia and Vietnam.


10/48

[10]

Company Profile(National Level)

Name Marico industries LtdDate of Establishment 1988

Revenue 526.542 ( USD in Millions )

Market Cap 93334.1976666 ( Rs. in Millions)

Corporate Address Rang Sharda ,Krishnachandra Marg,Bandra Reclamation BandraMumbai-400050, Maharashtra

Management Details

Chairperson Harsh MariwalaMD Harsh Mariwala

Directors Anand Kripalu, Atul Choksey, B S Nagesh,Bipin Shah, Ghulam Mostafa, HarshMariwala, Hema Ravichandar, HemangiGhag, Hemangi Wadkar

Business Operation Household & Personal Products

Financial Total Income Rs. 23740 Million (year ending Mar 2011)

Net Profit Rs. 3153.2 Million (year ending Mar 2011)

Company Secretary Hemangi GhagBankers Axis Bank Ltd, Citibank, HDFC Bank Ltd,

HSBC, ICICI Bank Ltd

Auditors Price Waterhouse & Co

Top managementName DesignationMr.Milind Sarwate Chief - HR and Strategy

Mr. Rakesh Pandey Chief Executive OfficerKaya

Mr. Vilas Shirhatti ChiefTechnologyMr. Saugata Gupta CEO - Consumer Products

Mr. Vijay Subramaniam Chief Executive Officer - InternationalBusiness

Mr. Vinod Kamath Chief - Finance and IT and Compl. Officer


11/48

[11]

Awards & Recognisation

Manufacturing & Supply Chain

IMC Ramakrishna Bajaj National Quality Award (RBNQA) 2009Outstanding Achievement Trophy.

Food Supply Chain Innovative Company of the Year' Award at theKPMG

Supply Chain Leadership Council Food, Retail, Logistics andPackaging Awards

IMC Ramakrishna Bajaj National Quality Award (RBNQA) 2010(Certificate of Merit).

Kerala State Safety Award 2010 in the food product category. Rajiv Gandhi National Quality Commendation Certificate 2009' in

the large-scale manufacturing industry

Food & Drug Category. Third highest honor 'Quest for Excellence' at the International Asia

Pacific Quality Awards (IAPQA).

Greentech Safety Silver Award 2010, for outstanding achievementin Safety Management.

Sustainability

Kerala State Energy Conservation Commendation Award 2010, inthe large scale energy consumers category.

Silver' at the Greentech Environment Excellence Award 2010, in theFMCG sector.

Good Green Governance Award.


12/48

[12]

Information Technology

Adjudged as one of the Top 5 winners of the most prestigious CIOASIA 100 Award 2011.

Great Minds Challenge for Business Award2010' in the BusinessAnalytics category.

NASSCOM CNBC TV18 - IT User Award 2010, for excellence inIT application, in the manufacturing category.

2 EDGE Awardsthe Diamond EDGE Award for 'Mobilebasedsolution for boosting productivity of farmers' and another EDGE

Award for the 'Darpan' project.


13/48

[13]

Future Growth

Expand Markets where we have dominant share-Parachute coconut oil in India and Bangladesh

-SaffolaPremium healthy refined edible oil

-Tapping Rural growth

Increase Share in other categories-Hair Oils in India

-Hair creams & gels in the Middle East

Introduce new productslarger size than in the past-Saffola Arise and Oats (for example)

Geographic Expansion-South East Asia, other parts of Africa

-New Product introduction in IBG Markets

Grow Kaya profitably in India and overseas-Integrating Derma Rx

Inorganic Growt Hold margins in a bandfocus on growth.


14/48

[14]

History

1862 -Kanji morarji started a small trading business by the name of The

Bombay Oil Industries.

1988The Company was incorporated on 13th October, under the name

of Marico Foods Ltd. It obtained the Certificate of commencement of

business on 22nd November.

The Company is engaged in the business of manufacture and marketing of

branded personal care products, edible oils, fabric care products and

processed foods. The Companys products are sold under the brand names

Parachute, Saffola, Sweekar, Maricos Hair & Care, Revive and S

1989-The name of the Company was changed to Marico Industries

Limited w.e.f. 31stOctober.- In December, the Company entered into an

agreement with M/s. Rasoi Industries Limited for purchase of its unit

located at M.I.D.C. Industrial Estate, Jalgaon

1990- The Company entered into a Registered Users Agreement dated

26th September, withBOIL for the use of the brands "Parachute" and

"Saffola" for an initial period of 3 years commencing from 1st April.

1994- Agreements dated 21nd February 1994 and 16th November 1995

between the bCompany and The Bombay Oil Industries Ltd. for using the

Trademark "Parachute" and Saffola".

1995- The Company has acquired the Brand `SIL' from KFL in March for

an aggregate consideration of Rupees Three crores

1997-Marico Industries Limited, the Rs. 400 crore consumer goods

company has beenselected as a Top Performing Global Growth Company

from India by the WorldEconomic Forum, New Delh.

1999- Marico Industries Ltd is focussing on relaunching its SIL brands in

its `healthcare'business, after a successful repositioning of its Saffola and

Sweekar brand


15/48

[15]

2000- The Company launched Parachute Dandruff Solution Coconut Hair

Oil in Calcutta, thefirst oil to combine coconut oil with antidandruff

properties in a single hair oil.

2001- Marico Industries has launched the Revive Anti-Bacteria starch.

2002-Marico Industries Ltd has informed BSE that the Board approved

the Issue of bonus redeemable preference shares of aggregate face value

of Rs 290 million. Ratio -- 1:1 one equity enhanced after bonus issue of

equity shares made by the Board on April 18,2002 and approved by

shareholders on July 18, 2002. The rate of dividend is 8%p.a.Increase in

authorized share capital of the Company from Rs 300 million to Rs

600million.

2003-Marico Industries Ltd have appointed Erehwon consultancy firm for

initiatives of innovation in marketing and management.-Marico Industries

have acquired a controlling equity interest in Sundari LLC.

2004-Announces 1:1 bonus issue- Marico Industries launches 'Saffola

Gold, a blend of Ricebran and Kardi oils in a 70:30ratio, which has dual

benefits of lowering cholesterol and enabling food cooked in it toabsorblesser oil.

2006-Marico Ltd has informed that the Company has reached an

agreement to acquire thebrand 'Nihar' from Hindustan Lever Ltd (HLL).

Nihar gas a current annualized turnoverof about Rs 1200 million spread

over two segments - coconut oil and perfumed hairoils.

2007--Marico Ltd has appointed Mr. Anand Kripalu as an Additional

Non-Executive Director onthe Board of Directors of the Company

2008-Marico Jalgaon was awarded the CII National Water Management

Award -Marico wasranked 2nd in Sourcing Platform Benchmarking

Program 2009 -Asia Pacific QualityOrganization (APQO) - Marico won

the 'Best in Class' Award (Second highest) for theLarge Manufacturing

category -Marico won the Greentech Environment ExcellenceAward 2009

in the Silver Category in FMC


16/48

[16]

2010-Harsh Mariwala was awarded the Ernst & Young `Entrepreneur of

the Year Award'2009 in the Manufacturing category.

2011- Launching various prototypes like Saffola Arise, Parachute

Advansed Ayurvedic Hair Oil and Saffola Oats. The company recorded aturnover of Rs 1,300 million by selling its products in India and 25

countries across the globe.


17/48

[17]

Focus

The company has set its focus on taking initiatives to drive greater rural

penetration over the last two years or so. It has endeavored to reach a

larger number of retail outlets in the rural areas directly through itsdistributor sales force rather than depending on wholesalers to service

these outlets. This has improved the quality of the sales call and provides

the opportunity to sell-in a wider range of Products.

The company has decided also to focus on its investments and efforts

behind its power brands, such as Saffola and Parachute, to drive growth.

As part of the focused investment on a narrowed set of brands, edible oil

brand Sweekarand Hair & Cares Silk-n-Shine have been put onmaintenance mode. Manjal, an ayurvedic soap brand acquired with an

intent to go national, is targeted at Kerala and Tamil Nadu. The idea is to

keep the non-focus brands alive and milk them for steady sales and profits

even as further investments for growth get channeled to a narrower set of

brands.

In recent times, the sales reach has increased largely on the back of

penetrative pricing in Shanti Amla and lower price point packs inParachute. During FY10, Maricos rural sales clocked a faster pace of

growth than its urban sales. Rural sales comprised about 27% of the

companys Indian FMCG sales as compared to 25% in FY10.


18/48

[18]

An Introduction To The Organization

Amar Trade Line cam to birth in the year 1950. It was started by MR

Ashish Shah. They started their firm with the distribution ship of NestleCompany for Ahmed Ahmed Nagar and Nashik district.

As then time passed their hard work came into the notice of Marico

Company. They offered them to become the super distributor for marico

in the year 1995. The company gave them the distributorship of hair oil

for Ahmed Nagar and Nashik district. Amar Trade Line at present also

holds the super distributor for Philips lights.

Amar trade line has a very well organized working structure. They posses

their own transport vehicles. Their staff is well organized and knows the

market very well. In the past time, the company does not have any

problem regarding financial, distribution, or any other.

They have maintained their standards very well. They have qualified staff

working with them. Because of their good service they have been received

many awards from the company

Organizational Profile(Agency Level)

Name Amar Trade Line

Owner Aashish Shah

Manager Suyog Shah

Pilot Sales Representative Somnath Sonavne

Sales Manager Mahindra Pagare

Accountant Kamlesh Chandan


19/48

[19]

Product Profile Of Marico

Hair Care

In the hair care sector marico has two categories:

Pre wash- Parachute , hair n care, nihar .

Post wash- Silk n shine, after shower cream.

Health Care

The company has premium edible oil which is best for heart.

The company has a product called safolla arise which is a basmati ricewhich is light in digestion.

Skin Care The company provide several Cosmetic dermatological

solution through kaya shin clinic. It provides various products for

protecting the skin.


20/48

[20]

Introduction To Marketing And Marketing Strategy

INTRODUCTION

The word market is derived from the latin word Marcatus meaningmerchandise, wears traffic, trade or the place where business is conducted.

The common usage of the market means a place where goods are brought

or sold.

Meaning

Marketing is a business activity concerned with making goods andservices available to customer at a place and time desired by them. It also

refers to creating demand for the goods and services. In simple words

marketing is a process, which carries from producer to ultimate consumer.

In other words it mean a bridge connecting the producer at one end and

the consumer at other end. Thus, marketing does not refer to exchange of

goods between the seller and the buyer.

Definition

Marketing is defined by theAMAas "the activity, set of institutions, and

processes for creating, communicating, delivering, and exchanging

offerings that have value for customers, clients, partners, and society at

large.

Marketing is used to identify the customer, satisfy the customer, and keep

the customer. With the customer as the focus of its activities, marketing

management is one of the major components of business management.

The term marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets and delivering

the desired satisfactions. It proposes that in order to satisfy its

organizational objectives, an organization should anticipate the needs and

wants of consumers and satisfy these more effectively than competitors.
http://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Association


21/48

[21]

Marketing Strategy

Marketing strategy integrates an organization's marketing goals into a

cohesive whole. Ideally drawn from market research, it focuses on the

ideal product mix to achieve maximum profit potential. The marketingstrategy is set out in a marketing plan.

Marketing strategy is a set of objectives, policies and rules that leads the

company's marketing efforts. It is the marketing approach to accomplish

the bread objective of the marketing approach to accomplish the bread

objective of the marketing plan.

The company can develop marketing strategy through its marketsegmentation, channel choice and other marketing elements. The

company has to choose the best option from several marketing options.

Need of Marketing Strategy.

1. It serves as a guide.2. Helps in innovation.3. Helpful in calculating future risk.4. Helps in the growth of market share.5. Market position.

Characteristics of Good Marketing Strategy

1. Should be based on consumer demand.2. Should be simple and short.3. Should be based on facts and valid assumptions.4. Strategy should be flexible enough to change its plan according tothe trend.5. The strategy should be clear.


22/48

[22]

Marketing Strategy Of Marico

1. Product Positioning Strategy:In this the product is launched according to the area, standard of

living, and demand.2. Product Strategy:

In product strategy the company has a product for each age group,

gender, and other in other categories

3. Price Strategy:This includes the how the company carries out the pricing of

product and how can it lower its prices.

4.Place Strategy:In this the company works out on how can it palce its distributors,

so that all area will be covered properly and at low cost.

5. Promotion Strategy:How the product is to be promoted in front of the public what all

thing are essential for its promotion are included in this.


23/48

[23]

Product Positioning Strategy

The FMCG major rides the growing wellness trend in the country with its

Saffola range.

If you see, globally, it is very difficult to run a business that is against a

consumer trend. We are lucky that our products and plans fit into the trend

of wellness

- Saugata Gupta, CEO,

Consumer Products Division, Marico

Marico has segmented its products on the basis of Hair Care, Health Care,

Skin Care. Following with the Are,Population,Capital Standing of that

area.

Saffola: Studies have shown that, a right

combination of Safflower Oil and Rice Bran Oil is more effective in

reducing cholesterol, than each of the oils singly. The company has

launched this product in all big cities where people are health conscious.

Nihar coconut oil is a brand of pure coconut oil

that has used the platform of purity to become the market leader in the

eastern region. The brand is particularly strong in the states of Bihar and


24/48

[24]

Jharkhand. Nihar coconut oil speaks to young mothers whose lives

revolve around their families.

Parachute is also available in pouch packs, to service the

rural sectors, increasing penetration. While the positioning of Parachute

has always been on purity.Parachute is premium edible grade coconut oil,a market leader in its category. Synonymous with pure coconut oil in the

market, Parachute is positioned on the platform of purity. In fact over a

time it has become the gold standard for purity.

Revive Launched in 1993 in India by marico, this

brand created a market where none existed. Revive has over the years

delivered to consumers the convenience of instant cold water starching at

home. This is the most low cost high quality starch available in market.

Mostly used in villages.


25/48


26/48

[26]

Product Strategy

Marico has product in all range which are required for day to day use. As

the completion in this market is increasing the company is on its part of

delivering more product in their product portfolio for capturing the Indian

and international markets.

Parachute:

in the recent past, Marico has launched packs at low price points in order

to facilitate the conversion of loose oil users of coconutoil to Parachute

and grow the market. Thus the blister pack, the 20 ml pack and the 50 ml

pack are available at Re1, Rs 5 and Rs 9respectively. In addition, thebrand has targeted share growth in specific markets through micro-

marketing initiatives.

Saffola:

Saffola is Maricos refined edible oil brand operating in the premium

ROCP (Refined Oil in Consumer Packs) category. The franchise aims to

grow without sacrificing premiums. Saffola enjoys a strong positioning on

the good for heart and health platform. An advertising campaign that

helps people become more aware about heart risks and encourages them

to take preventive action is being run. Radio and outdoor advertising are

supporting the television media campaign. Apart from advertising, the

brand invests in surround activities like heart check-up camps, health runs

etc. Last year, Marico launched a new Saffola variant, Saffola Gold, a

blend of refined safflower oil and refined rice bran oil, making Saffola

available in three variants.

Hair Oils

Last year Marico re-launched Hair & Care with a claim of Up to 50%

less sticky than other oils. During Q1FY06, it rolled out a campaign

targeted at youth in the North to coincide with the lagan season. The re-

launch has strengthened Maricos position in the Non-Sticky Hair Oils

segment with Hair & Care showing healthy volume growth. Parachute

Jasmine has been positioned as alight coconut based oil with a distinctive


27/48

[27]

jasmine perfume. The company has focused on growing its rigid packs,

which earn a higher margin as opposed to pouch packs. Parachute

Sampoorna, a value added coconut hair oil leverages Parachutes equity

and is positioned on the nourishment platform with the addition of

extracts of almond & hibiscus. The brand was launched nationally in the

previous year. In order to differentiate itself from other Amla oils in the

market, Shanti Badam Amla re-launched itself last year with an improved

formulationShanti Amlareinforced with badam.

Silk-n-Shine

With Silk-n-Shine, Marico had entered yet another new segment in Hair

Care - Hair Potion. Having. The brand continued with experimentation inadvertising and promotion. Lastyear Silk-n-Shine adopted an innovative

strategy for branding with its association with the popular programme

'Indian Idol' on SonyEntertainment Television. Recently, it experimented

with in-film brand placement in the movie Kya Kool Hai Hum to

connect withcollege going audiences. The movie has met with reasonable

success giving the brand mileage with the target audience. category, Silk-

n-Shine must play its role in market expansion by making thecategoryaccessible to the mass market.

Mediker Plus Anti Lice Oil

Mediker remains the only significant player in the anti-lice shampoo and

oil treatment market. The brand has been exploringoptions for providing

greater value to the consumer. In Q4 FY05, Marico expanded the Medikerproduct range with the introductionof Mediker Plus Anti-Lice Oil in the

Southern Market. Mediker Plus has been launched with a strong benefit of

1 Hour - Lice Out,providing a perceptibly efficacious solution to the

consumer. In July 05, it has commenced prototyping a completely natural

variantof Mediker in Maharashtra. Media campaigns on the brand are

being complemented by on-ground support activity of visitinghomes,

schools and centers with urban-poor populations.


28/48

[28]

Price Strategy

The price of products offered by marico is very low as compared to other

products. This is possible because of its planning and geographical

positioning of its factories, according to the availability of raw material.

The positioning of its distributors. All these things help in reducing the

transport cost of which also brings down the product cost.

The following is the comparison of price of products with reference to

price of other company.

Hair oil Parachute 200ml Vatica 200ml

Price(Rs) 70 95

Cooking oil Saffola Postman

Price(per li) 75 85

Fabric care Revive Easy

Price(Rs) 60 75

Body lotion Parachute200ml Dabur

Price(Rs) 100 120

After shower cream Parachute cream Belcreame

Price(Rs) 48 60


29/48

[29]

Place (Distribution) Strategy

Marico is one of the companies having very strong urban and rural

distribution network. Marico's distribution width and penetration is

acknowledged as one of the best in the industry and is a leverage able

strength.

Marico's distribution network covers almost every Indian town with a

population of over 20,000. The chart below depicts Marico's distribution

network in the urban & rural markets:

Distribution Alliance:

The distribution strength has been recognized by Indo Nissin Foods Ltd.

through their association with Marico for the distribution of Top Ramen

products on a national basis. They have chosen this company because of

its strong distribution channel and connection with rural areas.

Rural Sales & Distribution:

Marico's parallel rural sales and distribution network ranks among the top

three in the industry and contributes 24% to the company's topline.

Thus, 1 out of every 10 Indians is a Marico consumer.


30/48

[30]

Infrastructure.A dedicated team of Territory Sales Executives and Pilot Sales

Representatives distribute Marico's as well as alliance brands through this

vibrant network.

Location.

It has become possible for marico to create a strong distribution network

because of its perfect posting of manufacturing units. Maricos

manufacturing facilities are located at Goa, Kanjikode, Jalgaon, Saswad,

Pondicherry and Daman Supported by subcontracting units.

Sales Capacity:

They have made significant progress in the areas that enhance sales

capacity. Quality of our distributors Quality and number of the distributor

field force Up gradation in the role of the company's front-line sales force.

Every month, 56 million consumer packs are sold to about 1.8 million

households through 1.6 million retail outlets spread across the country.

infrastruct

ure

850 direct

distributors

120 super

distributors

3600 small

stockiest

4523

selling vans


31/48

[31]


32/48

[32]

Promotion & Advertisement Strategy

Advertising is a public announcement to inform and persuade

people to buy a product, a service or an idea. There are different media

available today by which advertisements are given by the company.

Advertisement is the strong media of sales promotion.

Be more. Every day is brand statement by marico. It symbolizes the

commitment of the company to offer new and quality products to its

consumers. To maintain the brand loyalty of its consumers marico keep

on improving the quality n packaging of its products.

The different Medias used by marico are stated below

A) Brand Ambassador.

The Company has not taken any celebrity as its brand ambassador. They

have taken common man as its brand ambassador. As their targeted user

of their product is the common man.

B) Distribution of free samples at public places.

Giving free sample of product is new way of advertising. The company

had distributed free sample of its hair oil in places such as Malls, School,

etc. it had distributed its sample to many people through attaching it in

news papers, magazines.

C) Print Media.

The Company gives advertisements through the use of print media, like

Newspaper, Magazines, putting up an attractive banners in front of their

outlets.

D) Outdoor Media:

The Company uses a mobile van carrying their advertisements and free

samples in the village and rural areas. To bring their product into the

notice of the people.


33/48

[33]

Small Packing.

Marico has very intelligently catered the demand for small packing of

their day to day used goods. The small packing of the goods are sold

extensively sold in the small villages of India. The company captured thismarket on the correct time and cashed it successfully. Marico has

launched small packing of their products like hair oil, shampoo all other

luxury good So that even the common man can use it, even though in

small quantity. India is only the market where such small packing is

available. Marico targeted the demand in this sector and was the first to

launch small sachets of all its products. As the companies target is to

reach every small village in India they use marketing techniques which

can be understood by people who are not highly literate.


34/48

[34]

International Footprint.

Maricos International FMCG business (its key geographical constituents

being Bangladesh, MENA (Middle East and North Africa), South Africa

and South East Asia) comprised 23% of the Marico Groups turnover in

FY11. The Companys international business continued to grow

handsomely and registered a growth of 22% in FY11. The business

growth (excluding foreign currency impact) was however higher at 27%

comprising 17% volume growth, 8% pricing and the balance coming from

the new business in Vietnam. These growth rates would have been higher

had the MENA region not seen political unrest in Q4FY11

Bangladesh

In Bangladesh, Parachute continues to play out its market expansion

strategy by converting loose oil to packed branded coconut oil while

maintaining its strong leadership position. It continued to ride on the

growth momentum backed by strong thematic campaigns and new

launches. The brand has gone from strength to strength and was

recognized as the 2nd most trusted brand in Bangladesh across categories

last year

MENA (Middle East and North Africa)

Marico has created a manufacturing hub for MENA in Egypt the long

term trends in demand for personal care products in the region remains

positive, the growth in the immediately ensuing quarters may be

unpredictable. During the near term, the company will be cautious about

the overall level of investments in advertising. Meanwhile it is alsoworking on alternative sourcing options in order to de-risk its supply

chain operations.

South Africa

The South African business continued grow handsomely and recorded a

growth of 33% aided by the acquisition of Ingwe. The organic growth

during the year was 24%. Caivil and Black Chic the two lead brands, have


35/48

[35]

been growing steadily and improving their market shares in the ethnic hair

care market in South Africa

Malaysia

Maricos Malaysian business has grown at a very healthy growth rate and

has responded well to the brand restage and the renewed thrust to

distribution in Code 10. The integration exercise of distribution and

manufacturing transition has been completed as planned.

Entry Into Vietnam

Marico increased its commitment to the South East Asian market by

taking up 85% equity in International Consumer Products Corporation(ICP), one of the most successful Vietnamese FMCG companies. ICP was

founded, in 2001, by Dr. Phan Quoc Cong and his partner. Its brands (X-

Men, LOvite, Thuan Phat and others) have a significant presence across

personal care, beauty cosmetics and sauces / condiments categories. X-

Men is a leading player in the male grooming segment in Vietnam and is

the 2nd Most Trusted Personal Care brand in the country. With over 35%

market share, it leads the mens shampoo category. LOvite, thecompanys premium cosmetics brand ranks amongst the top 5 premium

cosmetics brands in Viet.


36/48

[36]

Data Analysis And Interpretation

Brand Category

Indicative

Market Share

(%) #

Rank

Parachute Coconut Oil (India) 46% 1

ParachuteCoconut Oil

(Bangladesh)80% 1

SaffolaSuper Premium

Refined Edible Oils54% 1

Mediker Anti Lice Treatment 96%* 1

ReviveInstant Fabric

Starch

80%* 1

Parachute Jasmine,

Shanti Amla, Hair &

Care, Nihar

Hair Oils 23% 2

Parachute Hair

CreamHair Cream (GCC) 27% 1

Kaya Skin Clinic

Dermatology led

skin solutions

(India)

35% 1

For year 2010-2011


37/48

[37]

Interpretation

Marico brands have a no 1 or no. 2 position in their respective segments

over around 90% of its turnover. All the brands gives a though fight to its

competitors in the FMCG market.

Distribution network

Urban Rural

Sales Territories 135 35

Towns Covered

(000's)

3.2 11.0

Distributors 850 -

Super Distributors - 120

Stockists - 3600

Interpretation

In the above table we can see the distribution network of marico. What all

territories does it cover in India with the help of distributors, superdistributors and stockiest.


38/48

[38]

Major players in hair care sector

Interpretation

The hair care market in India is estimated at around Rs. 3,800 Cr. Marico

is the leader in Hair Oil segment with market share of 45% per cent;

Dabur occ-22%. P&G occ -25.%. Godrej occ-21% others-9%..

18%

37%

21%

17% 7%

Sales

Dabur 22 Marico 45 P&G 25 Godrej 21 Others 9


39/48

[39]

Profits of the company for the financial year 2010-2011

Interpretation

In the above chart we can see that in the year 05-06 the net profits seem to

be 87Cr and subsequently increased year after year. And in the last year

we can see the company gaining tremendous profit. As compared to the

year 05-06 and year10-11 the company shows an increase in profit around

200%.

87

113

169

189

232

286

0

50

100

150

200

250

300

350

400

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

Net profits

(Rs .crore)

Series 1


40/48

[40]

Findings & Recommendation.

I. The firm does not have sufficient space if they want to increase theirsales area.

II. The firm has very few transport vehicle which creates a delay indelivery.

III. They are facing problems of manpower because of non-availabilityof qualified people.

IV. They are not focusing on the demand of rural villages which is theirmain market of consumption.

They face liquidity problems as they have to pay total payment in advance


41/48

[41]

SWOT Analysis Of Marico Ltd

The potential growth of the FMCG industry in India is very prospective

due to the countrys large population and relatively high number of

competitors.. To keep up this upward trend absolute dedication to

understanding and fulfilling their customers need with the appropriate

mix of standard service, reliability, improved technology, and skilled as

well as dedicated manpower is necessary and a strong product profile.

Attractive design and new packaging.

Skilled human resource.

Strong rural connection.

Competitive product pricing.

strength

Low promotion.

Low export level.

High dependence on Parachute.

Low company image.

Weakness

Chance to create a new product line.

To enter the food & snacks market.

Enter the global market.

Growth in international markets .

Opportunity

Increasing competition.

Geographical Disadvantages.

Devaluation of money.

Government regulations.

Threat


42/48

[42]

V.Conclusion

Finally, after the hard work I found some opinion at the end of the projectreport in the form of conclusion. . After days of doing the research, is not

easy to get the right conclusion, but that was the great time for us to learn

and observe the market. How a company works in market and what the

policies they adopt to promote their product and how the company

manages their organizational structure. The survey was successful to

fulfill the objective. It was found that Marico has a good brand reputation

in the market

The above study shows us the growth of the company in all sectors by

using and applying its marketing strategys at the right place and right

time. The above study shows us that around 30% market share (640

billion) is acquired by marico Company.

Marico is trying to give maximum satisfaction to their customerswith its new innovation and product quality.

Despite so many regional as well as competitor into the market, theposition of Marico is not going to be affected that much. But in

some cases the more competitive environments provides better

opportunity to grow.

The marketing part of this company is very organized. They havevery nice Communication and distribution channels.

This research was also a tool to find out which product/brand ofMarico has the highest sale among all the brands.

Marico delivery system and sales promotion system is very

organized.


43/48

[43]

Annexure

Questionnaire

1. Do you use FMCG productYes

No

2. Which FMCG company product you useMarico

Hindustan Unilever

Dabur

P&G

3. From which sources did you get information about these products?Newspapers

Television

Friends

Others

4. Are you aware of marico products?Yes

No


44/48

[44]

5. Have you seen any advertisement of marico product?Yes

No

6. Do you use marico products?Yes

No

7. Do you want to buy Marico products?Yes

No

Cant say now

8. Which factor do you considered while buying marico productsQuality

Price

Results given by the product

If other than please specify.


45/48

[45]

9. From how long do you use Marico products?Less than a year

1 to 3 year

More than 3 years

10. Have you seen any advertisement of marico products?

Yes

No

11. Do you face any side effects? After using the products?

Sometime

Never

Often

12. In which product of marico do you want improvement?

Price

Quality

Arability

13. Do you satisfied with the product result?

Yes

No.

If not than give the suggestions for improvement.


46/48

[46]

Name: .

Sex: . Age: ..

Qualification: .

Contact No.:

14. Are you satisfied with the promotional scheme of Marico?

a) Yes

b) No


47/48

[47]

Bibliography

Marketing Management -By Philips Kotler(11TH Edition)

Marketing Management -By V.S Ramaswami.& S.Namakumari.

Competitive Marketing Strategy -By James w. Taylor Information Taken From Idea cellular Ltd. Information Taken From website of Company and other websites.

INTERNET WEBSITES:www.marico.com

www.businesstandards.com

www.economictimes.com

www.google.com

www.wikiepedia.com
http://www.marico.com/http://www.marico.com/http://www.businesstandards.com/http://www.businesstandards.com/http://www.economictimes.com/http://www.economictimes.com/http://www.wikiepedia.com/http://www.wikiepedia.com/http://www.wikiepedia.com/http://www.economictimes.com/http://www.businesstandards.com/http://www.marico.com/


48/48

case study of marico

Documents