leveraging india internationally marico experience
DESCRIPTION
Leveraging India Internationally Marico Experience. Introduction. FMCG Company formed in 1990 : - With 2 Brands : Saffola & Parachute - In 15 years : INR 100cr to 1150cr - All sales through branded products and services. Marico Builds Brands. Downstream Value Addition : - PowerPoint PPT PresentationTRANSCRIPT
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Leveraging India InternationallyMarico Experience
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FMCG Company formed in 1990 :
- With 2 Brands : Saffola & Parachute- In 15 years : INR 100cr to 1150cr- All sales through branded products and servicesIntroduction
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Downstream Value Addition :Consumer End - Branding, Product, PackagingV/S
Upstream Value Addition :Lower Costs IT & BPOMarico Builds Brands ...
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The Business
Hair Care Pre & Post Wash(In India and Abroad)
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Skin Care Customised Solutions :Through KAYA Skin Clinics
The Business.Sundari Global Ayurvedics : Business acquired in US in 2003
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The Business.Wellness Healthy Cooking Oil, Blends, Salt, Functional Foods
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Low Capital NeedsHigh Branding CostsDistribution : critical to successNew Products : Failures 8 out of 10 Launches3 to 5 years to break-even, if successfulGlobal Brands & MNCs in large segmentsBe Distinctive & Unique to succeedCharacteristics of FMCG Business
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How Did It AllSTART ?Maricos International Journey.
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It all started with smuggling
Maricos International Journey.
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Export of Coconut Oil was prohibited.
Marico had then lobbied to get export allowed.
Thus started a new business in the early 90s.Maricos International Journey.
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Indian- Centric- driven by :
Access to Clusters of Indian expats- Gulf, US, Canada, Singapore & MalaysiaCommon Media Footprint - Gulf, other SAARC Countries Common Ethnicity/ Hair Oiling habits - Bangladesh, Nepal, Pakistan, BhutanJourney driven by....
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Used Distributor Model to enter countries
Appointed Distributors in Gulf, SAARC countries, US, Singapore / Malaysia etc
And then onto . Brand Building in the markets abroad
Spread the Brand : PARACHUTE The Mechanics....
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DirectBangladesh UAE, Saudi, Oman, Qatar, Bahrain, Kuwait, Yemen, Lebanon, Sudan,Syria, JordanPakistan, Nepal, BhutanUS, Canada, AustraliaSingapore, Malaysia, Indonesia, MyanmarKenyaPlanned : African countriesIndirectSeveral where ...Parachute is available through wholesale trade channelsWhere we have reached.
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How it has progressed....International turnover in INR cr FY07 figs Plans
Chart1
5
8
12
16
21
35
46
63
80
96
116
161
IBG sales
Sheet1
FY965
FY978
FY9812
FY9916
FY0021
FY0135
FY0246
FY0363
FY0480
FY0596
FY06116
FY07161
Sheet1
IBG sales
Sheet2
Sheet3
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Marico in the Middle East
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Parachute Gold - unique positioning.
Parachute Lite for easy grooming & UV protection.
Parachute Jasmine : perfumed coconut nourishment with conditioning.
Parachute Sampoorna : value added CNO with hibiscus, almond etc for complete nourishment
Started with Oils Indians in Gulf...
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In Modern FormatsCustomised to suit Locals...
Parachute CREAMSParachute HAMAM ZAITTo Value Added Hair Care
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Local Events
DisplaysUsing local ads local celebrity
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The Result : Middle East Sales in INR crParachute Creams are the largest selling within the basket ...
Chart1
14
17
24
34
43
60
SALES
CONS
2001-022002-032003-042004-052005-062006-07
Rs. LacsRs. LacsRs. LacsRs. LacsRs. LacsRs. Lacs
SALES1,389.571,747.412,422.163,430.714,303.18597919,272.03
GC539.21582.071,244.121,644.451,997.46
ASP431.32517.61518.25752.711,804.0021006,123.89
NC107.8964.46725.87891.74193.46
FY02FY03FY04FY05FY06FY07(E)
SALES141724344360
CONS
SALES
01-02
SALESGCASPNC
2001
SAP2544.75763.04431.32331.72
N&B456.72172.12172.12
OTHERS160.8841.71041.71
Bulk537.581010
GULF1389.57539.21431.32107.89
107.89
2002
SAP3209.55704.15517.61186.54
N&B503143.08143.08
OTHERS156.2638.7138.71
Bulk802.88-59.71-59.71
GULF1747.41582.07517.6164.46
64.46
Sheet3
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No Escape Buttons Separate StructureNon-Core business for MNCs, Grab Market ShareLocal Insights Product DevelopmentLocally developed Advertisements and MarketingExperience Dealing Modern TradeFor people : Opportunity Posting Outside India/ TravelThe Learnings...
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Marico in Bangladesh
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15 years behind IndiaStarted Market Expansion in 1995Large Coconut Oil MarketDominated by Local Brands
Bangladesh
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Leveraged :Plastic Packaging with flip top capsattractive, convenient, economicalWide Mouth Jars All weather packMini Bottles
Distribution using InformationTechnology
Superior Localised Advertising
Superior Sales PromotionsThe Parachute Journey....
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Started with very low margins
On gaining critical mass :-Set up Subsidiary & Backroom OperationsSet up our own factory
Today .. The largest Indian Company in BangladeshThe Parachute Journey....
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Going Beyond Oils Acquired Two Soap Brands 2005
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The Results : Last 5 years(fig in Tk Crores)
Chart2
34
46
58
73
99
156
SALES
CONS
2001-022002-032003-042004-052005-062006-07
Rs. LacsRs. LacsRs. LacsRs. LacsRs. LacsRs. Lacs
SALES1,389.571,747.412,422.163,430.714,303.18597919,272.03
GC539.21582.071,244.121,644.451,997.46
ASP431.32517.61518.25752.711,804.0021006,123.89
NC107.8964.46725.87891.74193.46
FY02FY03FY04FY05FY06FY07(E)
SALES3446587399156
CONS
SALES
01-02
SALESGCASPNC
2001
SAP2544.75763.04431.32331.72
N&B456.72172.12172.12
OTHERS160.8841.71041.71
Bulk537.581010
GULF1389.57539.21431.32107.89
107.89
2002
SAP3209.55704.15517.61186.54
N&B503143.08143.08
OTHERS156.2638.7138.71
Bulk802.88-59.71-59.71
GULF1747.41582.07517.6164.46
64.46
Sheet3
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Parachute in Bangladesh: MS %MARKET SHARE > 55%Awareness89% Total awareness level- 95% in urban vs. 79% in rural42% TOM awareness across Bangladesh
Chart1
5644
5941
6436
Platics
Tins
Sheet1
PlaticsTins
2003-045644
2004-055941
2005-066436
Sheet2
Growth03-0404-0505-06
Parachute34%25%21%
LP24%19%10%
SP60%38%41%
Chart2
0.15
0.24
0.33
0.42
0.47
0.55
PCNO MS
Sheet3
00-0101-0202-0303-0404-0505-06
PCNO MS15%24%33%42%47%55%
Sheet4
Sheet5
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Limited by hair oiling habitTo leverage- Indian Habit- Food- Raw Materials like spices, Indian coconuts- Science Ayurveda- Any other source of competitive advantage
Further Geographical Expansion
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- Highly cluttered SaturatedDifferent DistributionHigh Cost EntryDominated by MNCs
Decided to create brand through an experience routeDeveloped Countries
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Acquired BrandBuilt on Principals of AyurvedaChanged FocusStore to Spa BrandCatering to ResortsDestination SpasDeveloped Protocols & TrainingShiro Dhara, Marma PointsAppointed Distributors in Asia PacificSundari
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Four SeasonsMariott, Canyon Ranch, Oberoi, WestinHuge Learning CurveB to B MarketingLong Lead Times to get entryNiche BrandSundari (Contd)
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- Customised Solutions for SkinProblem Normal and Anti-Aging SkinDermatologists Key DifferentiatorMedi-Spa-Zen like AmbienceLaunched Hair ServicesKaya 2003
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Unique Business ModelNo-Chain Internationally Leveraged doctors / skin practitioners 2 in Dubai1 in Abu-DhabiUn Clear RegulationsPlan expansion other GCC Countries
Kaya ME
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1. Expand GCC & Bangladesh Wider Product Basket2. New CountriesLeverage Hair Care Products3. Expand KayaGCC Countries and Beyond4. Sundari EuropeIncreasing Scale5. Growth through Organic / Acquisitions Route
Going Forward - Next 3 Years
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1.Career Paths in Different Business Outside IndiaLeveraging Technology AcrossLearning Marketing and DistributionNew Ideas Domestic BusinessCommon Advertisement mediums e.g. Kerala / GulfBenefits Beyond Top/ Bottom Line
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We are passionate about
India Advantage
&
Uncommon Sense
Global Players in healthy living through distinctive solutions, largely leveraging India advantage.
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Thank You