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INTRODUCTION
History of Marico

The history of Marico can be traced all the way back to 1857, when a young man
Kanaji Moorarji, set up a modest trade in spices which, in time, grew to include other
export worthy commodities. This firms success gave birth to The Bombay Oil Industries in
1948; set up to convert the traditional buying strengths of the firm in the commodities are as,
to value added manufactured products. At first Bombay Oil was involved in copra trading
besides crushing and refining of vegetable oils. Gradually, the company established itself
firmly as a marketer of branded vegetable oils and later expanded into fatty acids, specially
chemicals and spice extracts. In 1983, Bombay Oil divisionalised its operations to create
three Businesses: A Consumer Products Division; A Fatty Acids and Chemicals Division and
an Oleoresins Division, also called the Spice Extracts Division. In 1990, Bombay Oil again
restructured itself to form several companies, each focusing on a specialized area of business.
In April 1990, the Consumer Products Division became MARICO. Marico is an Indian
consumer goods company providing consumer products and services in the areas of Health
and Beauty based in Mumbai. During 2009-10, the company generated a Turnover of about
Rs.26.6 billion (USD 600 Million), in respect of its food, hair care and skin care related
activities. Marico's own manufacturing facilities are located at Goa, Kanjikode, Jalgaon,
Pondicherry, Dehradun, Baddi, Paonta Sahib and Daman. In Bangladesh, Marico operates
through Marico Bangladesh Limited, a wholly owned subsidiary manufacturing facility at
Mouchak, near Gazipur. Maricos brands and their extensions occupy leadership positions
with significant market shares in a number of health and beauty areas. Saffola is essentially
blended refined edible oil which is claimed to be beneficial for Heart health. It is marketed
under the names of New Saffola, Tasty and Active. All of them contain blended vegetable oils
in various proportions. The main types of oils which are blended include Rice Bran oil, Kardi
oil or Safflower oil, Corn oil and Soya oil. In addition to being a producer of consumer

products the organization also operates Kaya Skin Clinic (of which (as of 2010) 81 exist in
India, 13 in UAE) and 2 in Bangladesh. Marico recently acquired the aesthetics business, of
the Singapore based Derma Rx Asia Pacific Pte. Ltd. (Derma Rx), under the Kaya portfolio.
All the services offered at Kaya Skin Clinic are designed and supervised by a team of over
250 dermatologists and carried out by certified skin practitioners who have undergone more
than 300 hours of training. The services are US FDA approved and tested in-house, and
conform to the highest international quality standards. Kaya Skin Clinic has over 600,000
satisfied customers. Harsh Mariwala is the Chairman and MD of this organization. The
company has 3 divisions the Consumer Products Group (CPB), The International Business
Group and Kaya Skin Clinic. CPB is headed by Saugata Gupta. Kaya Skin Clinic is headed
by Ajay Pahwa. The company in recent years has been known for its foreign acquisitions in
countries such as South Africa, Egypt and Singapore.

Marico tests cooling hair oil segment

Fast moving consumer goods (FMCG) major Marico plans to enter the cooling hair
oil segment by launching two products Parachute Advanced Cooling Oil and Nihar
Naturals Cooling Oil. The products are currently being test-marketed in a few rural belts
Parachute in Andhra Pradesh and Nihar cooling oil in Bihar and Jharkhand.
At Marico, we keep fine-tuning the mix till we are satisfied that the model is scalable, said
Sameer Satpathy, head of marketing, Marico. Marico had entered the cooling oil segment
earlier with Maha Thanda, but the product never went national. The current move is seen as
the companys attempt to gain a bigger piece of the overall hair oil segment in India, which is
worth about Rs 3,000 crore, out of which Marico holds a 21 per cent market share.
There are several regional players in the segment with a huge presence in rural markets.
Emamis Navratna, for instance, is the biggest player in the cooling hair oil segment with a
market share of around 70 per cent. The Rs 300-crore brand, which has a prominent presence
in Andhra Pradesh, seems to have left no stone unturned in its strategy to market Navratna.
As far as the advertising goes, it has managed to rope in Shahrukh Khan and Amitabh
Bachchan as national and Telugu actor Mahesh Babu as a regional brand ambassador. Marico,

on the other hand, has some regional advertising that is handled by McCann Erickson and
Bartle Bogle Hegarty (BBH) for Parachute and Nihar coconut oils, respectively.
Our cooling oil will be differentiated on the fact that it will have coconut, which means it
will be coconut-based and have cooling properties, said Satpathy. Analysts say that although
there are major hurdles for Maricos new brands, there are enough opportunities in this
segment.
This segment is difficult to break into and cooling hair oil is not a very aspirational product.
Marico clearly seems to be riding on the success of its existing status in the market as it has a
significant share in the branded market. Though cooling oil is more expensive, the price
factor can be overcome with aggressive product promotion, said Purnendu Kumar, an
analyst from Technopak India. Industry experts say Marico cannot afford to miss out on the
Rs 450-crore cooling hair oil market and could expect 20-30 per cent of its revenue from the
segment.
Even without the cooling oil variant, both Parachute and Nihar enjoy over 50 per cent
market share in the branded hair oil segment. Parachute coconut oil in rigid packs grew about
13 per cent sequentially in volume in the April-June 2009 quarter. During the period, its hair
oils in rigid packs grew 9 per cent.

Parachute oil
Marico industry is one of the largest FMCG Company in India, Offering a customized brand,
catering to the needs of the target audience. Marico also has a very strong nationwide
network, which makes the brands available for the customers. Ultimately, for a FMCG
Company distribution is the core focus area. Marico is well known for its brand, Parachute
coconut oil. Parachute is one among Indias Top 100 Most Trusted Brands and is the worlds
largest packaged Coconut Oil Brand. Parachute is the flagship brand of Marico which
consists of edible grade coconut oil. Marico manufactures and markets its coconut based hair
oils under its popular brand - Parachute Advansed and a series of extensions thereof. Indian
expatriates in the Middle East had been smuggling Parachute oil with them for their daily use
when export of the oil was restricted prior to the 1991 economic liberalization. Marico
decided to try to sell products in that market after liberalization, but found that Arab
customers did not like the scent of coconut, wanted a less sticky hair product, and needed a
product to counteract the high level of chlorination in their water. When Marico reformulated
its product, its market share in the Arab Mideast grew from 2% in 2002 to more than 20% by
2008.

Brand Name: Parachute

Positioning: As a purity brand.
Target Audience: The primary target audience of Parachute is women of all ages in

both urban and rural population of India.

Pioneering idea: Parachute pioneered the idea of selling the coconut oil in plastic.
Communication: Mass communication on the platform of caring with mother

daughter theme.
Innovation Strategy: Marico followed innovation as a major strategy in building
Parachute brand. The following are some example.

- 20 ml Parachute-a Rs.5 SKU that enables loose oil users to upgrade to parachute.
Parachute advanced refined hair oil [with fruity perfume] is the latest introduction from
Marico. Parachute has always strived to remain relevant to every new generation. It is a brand
that is backed by years of trust and heritage and it aims at using the same equity to appeal to
the young Indian consumer. Launched in 2004, the parachute advanced refined hair oil comes
packed in a sleek looking, light blue translucent bottle.

Parachute advanced is refined coconut hair oil with a pleasing fruity fragrance. It is also
lighter than other coconut oils, which makes it ideal for the young, appearance conscious
consumer.
Parachute is premium edible grade coconut oil, a market leader in its category.
Synonymous with pure coconut oil in the market & is positioned on the platform of purity.
Parachute thus enjoys tremendous equity, trust with every passing generation & loyalty in the
urban as well as rural sectors of India. Innovations in the packaging whether from the aspect
of user-friendliness or aesthetics have and continue to help Parachute grow.

History of the Product

Parachute is premium edible grade coconut oil, a market leader in its category.
Parachute is positioned on the platform of purity.
Parachute pioneered the switch from coconut oil sold in tins to plastic. Parachute is

the market leader in the branded hair oil market with a market share of around 53%.
The brand was established emphasizing caring and Mother-Daughter relationship.
There is a 1500 crore industry which is dominated by unbranded oils.
Marico in early 1990s made a bold step in launching a brand in this segment.

Goals and objectives

Company commits itself to improving the quality of peoples lives in several parts of

the world, through branded Beauty & Company products and solutions.
Company shall offer brands that enhance the appeal and nourishment of hair and skin
through distinctive products and services based on goodness of coconut, other natural

substances.
Company shall make available brands that contribute to healthy living, through, both

products drawn from agriculture offered in natural or processed forms, and services.
Company shall develop, in parts of the world beyond the Indian Subcontinent, a

franchise for the branded products and services.

Company shall aim to be a leader in each of its business through heightened

sensitivity to consumer needs, setting up of new ideas.

Company shall share prosperity amongst members, shareholders and associates, who

contribute in improving equity and market value.

Company shall acquire the status of a friendly corporate citizen, contributing to the

betterment of neighborhood communities, where Company is significantly present.

To know how far consumer purchase decisions are influenced by the advertisements
of parachute coconut oils.

To know about the satisfaction level of consumers with regard to parachute coconut

oils.
To know the consumer preference towards parachute coconut oil.
To know the consumer perception towards the price of parachute coconut oil.

Vision & mission

Consumers: For they are the reason we exist.

Membership: For a sense of ownership empowers us.
Excellence: For it unleashes our potential.
Wealth: For on it hings our growth.
Innovation: For it gives wings to ideas.

Mission 2020
The Marico Innovation Founders mission is to provide the nation with first: a belief that
Innovation is possible and is the way to leap frog India into center stage of global business
leadership, and a second: a framework to leverage innovation for quantum growth.

FEATURE
Parachute Advansed Jasmine Coconut Hair Oil

Coconut hair oils are well known for their beneficial properties for hair. As a hair care
product, hence, women generally always prefer coconut based hair oils. Parachute, the much
acclaimed brand for hair care in India, has a range of coconut oil under its kitty. One product
from the range is called Advansed Jasmine Hair Oil. In this product, goodness of coconut oil
has been intertwined with jasmine to give you a perfect look. Parachute Advansed Jasmine oil
is essentially a perfumed coconut oil. This has been crafted with jasmine extracts. Jasmine
has great symbolic meaning and is associated with a ritual called 'Pahli Angol'. This is an
auspicious ritual for married women in Maharashtra. Thus, by incorporating Jasmine, this
product seeks to celebrate the spirit of womanhood. Thus, application of Jasmine oil does not
make your hair look bad. Besides, this oil has advantages of coconut within it. According to a
research conducted by Parachute, coconut oil can offer hair with deep nourishment. Parachute
claims that coconut hair oil can go as deep as the medulla. Thus, not just the shaft of hair, hair
follicles also get conditioned from within. The high penetration power of coconut oil is due to
the presence of Medium Chain Triglycerides (MCT) within the oil. This infuses coconut oil
with great moisturizing capacity for hair. Thus, the Advansed Jasmine oil gives you nourished
and gorgeous hair. At the same time, it leaves lingering and pleasant smell of jasmine in your
hair.

Parachute Advanced Coconut Hair Oil

Parachute Advansed coconut hair oil is for the all-aware young Indian woman who is
demanding as she knows that there are a slew of other hair care products available to her. She

is aware of the benefits of using the hair oil and the role it plays in maintaining her hair
healthy and well nourished.
Parachute Advansed coconut hair oil from Marico has been made especially keeping in mind
the needs of hair. Parachute Advansed contains essential oils of ylang-ylang to give it a rich
and deep fragrance. It penetrates the hair roots better than other hair oils, strengthening the
hair from within. With regular use of Parachute Advansed, hair strength is known to increase
by up to 16%. Whats more, when applied pre-wash, Parachute Advansed reduces protein loss
up to 28% and restores the health of hair.

Parachute Advanced Cooling Oil

This oil controls hair fall and rejuvenates the scalp. The herbs in the oil balance the
aggravating doshas and render natural growth of your hair. It also reduces dandruff, prevents
pre-mature graying and prevents dryness.

Parachute Advanced Scalp Therapie Hair Fall Control

New Parachute Advansed Scalp Therapie Hair Fall Control, is an oil based solution
specially formulated to infuse new life into your scalp and control hairfall effectively. When
the Scalp loses nutrients, It stops providing nourishment to hair, leading to hairfall. This
unique formulation with Active Protein Complex gets absorbed deep within the scalp to
replenish lost nutrients.A well nourished scalp effectively controls hairfall Use Parachute
Advanced Scalp Therapie Hair Fall Control Regularly for Best Results. ** 89% Consumers
showed a reduction in hair fall based on improvement in Anagen, Telogen ratio basis daily
application **Not for hereditary hair fall. Not for hair fall due to medical conditions.

Parachute Advanced Ayurvedic Hot Oil

Parachute Advanced Ayurvedic Hot Oil, a coconut oil enriched with

ayurvedic warming oils of malakangani and piper nigrum.

Pour oil onto your palm, Rub Palms together to feel the warmth come through.

Gently massage onto hair and scalp. The warmth opens up the pores and the oil soaks
in, providing deep nourishnment.

Wash off to get beautiful, lustrous hair.

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Parachute Advanced Ayurvedic Hair Oil

The oil nourishes hair roots and scalp, effectively controlling hair
fall, Get long, thick, beautiful hair. It also promotes hair growth, prevents premature greying,
and reduces dandruff - keeping your hair healthy. Massage regular for best results.

Parachute Advanced Aftershower Anti-Dandruff Hair Oil

Parachute Advanced Aftershower Anti - Dandruff Hair Oil.

Lemon, neem and tea tree oil for relief from itching and flaking Coconut oil for
healthy and nourished hair non sticky formula for soft shiny hair use daily, after
shower.

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PRODUCT STRATEGY
1. Understanding the Existing Strategies

It has been a long road for Parachute (the first branded coconut oil in the Indian

market) and the journey began more than four decades ago.
Today the blue bottle is a strong metaphor for the Coconut Oil category and reaches

18 million households every year.

The Parachute story is even more remarkable considering that the brand has stood the
test in face of players with deep pocket sand fickle consumers with growing

aspirations. The Coconut Dream was taken forward in communication at 2 levels.

On the rational front, it represented the nourishment, proteins and vitamins and on the

emotional front it stood for nurturing, caring and a mothers love.

From the initial stand of purity to that of clarity to the Vital Nourishment, the brand
has made the tough passage and gone from strength to strength. Improvement in the
functionality area: Wide Mouth Jar, Easy Jar and the Flip Top pack with Tamper proof

seal.
The Easy Jar positioned as the all season jar was launched as the Kamaal Ka
Dhakkan mainly to address the North markets where severe winters make the hair

oiling a challenge.
The jar that offers the twin benefits of a wide mouth and has an easy pour cap which
ensures the pack does not suffer seasonality.

2. Best strategies Applied So Far

They changed pack shapes to one that is sleek, modern and aesthetic.
Flip top cap to ensure safety and purity of parachute oil.
Easy jar of parachute to facilities usage during winters.
Parachute mini - a bottle shaped sachet sold at an MRP of Re.1
20 ml parachute - a Rs.5 that enables loose oil users to up grade
Strong distribution network.

Maricos strategy was focused on increasing its presence across the entire hair oil segment by
launching value-added products and through brand and product extensions. The company had
attempted to tackle the unorganized segment through low-cost and small-unit packs.

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3. Other Extensions are

Brand name: Parachute Advansed refined hair oil and Parachute Jasmine
Target audience: Young and appearance conscious consumer.
Positioning: Focuses upon the fragrance aspect of the oil.
Brand name: Parachute After shower Hair Cream
Target audience: Young men (SEC A, B)
Positioning: Focuses upon stylish look, non-sticky and nourishing aspect.
Brand name: Parachute Sampoorna
Target audience: Women customers
Positioning: Focuses on providing strong hair.
Brand name: Parachute Natural shampoo
Positioning: On the platform of Naturals which makes hair healthier

4. Strategies to Increase Market Share

a) Parachute with different fragrance:

Rose
Jasmine
Neem

b) New parachute oil bottle with press mechanism as a new feature:

Usage as per the use

It will reduce the psychological fear of the consumer
Parachute oil in a transparent bottle so that customers understand the optimum usage
of the product

c) Parachute Oil for Different Hair Types

Curly hair
Rough hair
Straight hair

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d) Parachute Ayurvedic Oil

The herbs and medicinal herbs are used to enrich the oil content.
It would help to nourish your hair growth and strengthen it.
People having hair scalp problem can make optimum utilization of the Ayurvedic hair
oil.

e) Parachute Scalp Oil

To Prevent Excessive hair loss.

To Reduce density of oil in hair because a survey revealed that excessive content of
oil in hair leads to hair loss as the oil clogs in hair and leads to formation of wax in the
scalp thus leading to damage of scalp.

New- parachute Advansed Therapie hair vitaliser

What the company claims - New Parachute Advanced Therapy Hair Vitaliser is an oil
based product that heals damaged roots and control hair fall in 30-45 days.
How does hair-fall happen?
Stress, pollution, improper diet, hormonal imbalances, poor quality of water & ageing can
damage hair roots and cause hair fall.
How does New Parachute Advanced Therapy Hair Vitaliser works?
Its unique root healing complex is a blend of essential proteins, herbs, vitamins & minerals
that penetrates deep into the roots and control hair-fall.
Packaging- it has a black flip-top cap. The bottle is silver in color (quite classy).
Price- INR 99 for 100 ml
Directions for Use- Massage overnight. Use 3 times a week.

Specifications of Parachute Advansed Jasmine Hair Oil (300ml)

a) General Traits

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Ideal for Women

Container Type Bottle
Quantity 300 ml
Organic yes
Organic Type Natural
b) Hair Oil Traits
Hair Type All Hair Types
Composition Coconut, Jasmine
c) Additional Traits

Non-sticky Oil
Moisturization
Adds Shine

Specifications of Parachute Advansed Coconut Hair Oil (170 ml)

a) General Traits
Ideal for Women
Container Type Bottle
Quantity 170 ml
Organic Yes
Organic Type Natural
b) Hair Oil Traits
Hair Type All Hair Types
Composition Ylang Ylang Oils
Applied for Hair Strengthening, Conditioning
c) Additional Traits

Penetrates Hair Roots

Reduces Protein Loss
Restores Hairs Health
Deep Fragrance

Specification of Parachute Advansed Ayurvedic Hair Oil (95 ml)

a) General Traits
Ideal for Women
Container Type Bottle

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Quantity 95 ml
Organic Yes
Organic Type Natural
b) Hair Oil Traits
Hair Type All Hair Types
Composition Amla, Ghritakumari, Mehendi, Nagarmotha, Sungandhit Dravya Oil.
Applied For Hair Fall, Hair Growth, Dandruff
c) Additional Traits

Nourishes Hair Roots and Scalp

Prevents Premature Graying

Specifications of Parachute Advansed Scalp Therapie Hair Fall Control

Hair Oil (190ml)
a) General Traits
Ideal for Unisex
Container Type Bottle
Quantity 190 ml
b) Hair Oil Traits
Hair Type All Hair Types
Composition Alpha Proteins
Applied For Hair Fall
c) Additional Traits

Natural Root Activising

Parachute Advansed Cooling Hair Oil (190 ml)

This nourishing hair oil can relax your senses whilst making your hair healthier. It
is common knowledge that Ayurveda has remedies to various ailments. The Parachute
Advance hair oil is incorporated with a mix of 21 Ayurvedic ingredients like Amla,
Gandha Purva, Brahmi, Chandan, Coconut etc. The vitamins and minerals present in these
natural components revive your hair by promoting hair growth and reducing instances of
hair fall.

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The Amla extract present in this cooling hair oil, has the tendency to reduce blood pressure
and leave your scalp with a refreshed sense of coolness. As a moisturizing agent, Amla
retains the natural moisture levels of your hair, thus keeping it soft and shiny. By
eliminating dryness, this hair oil reduces dandruff and flaking. Additionally, the Brahmi
found in this natural Parachute hair oil is a powerful herb infused with medicinal properties
that ease away stress, tension and fatigue, thereby boosting your mental health. Also,
Brahmi is known to improve memory and concentration to a notable extent.
Furthermore, this revitalizing hair oil comes with Chandan extracts which soothe
inflammation and irritation present on the scalp and provide your hair with an amazing
fragrance. Lastly, Coconut essence in the hair oil strengthens your hair from the roots and
reduces conditions like headache and sleeplessness. Moreover, the anti-aging properties
of this coconut hair oil prevent early greying of hair and make your hair lustrous. Get
marvelous mane by using the Parachute Advansed Cooling Hair Oil.

PRICING STRATRGY
Price
a) Price

Parachute: 500 ml Rs.90

200 ml Rs.39
20 ml Rs.5

Mini a bottle shaped small pack: Re.1

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Parachute Advansed: 300 ml Rs.80

170 ml Rs.48
80 ml Rs.27

Parachute Therapie: 50 ml Rs.190

Parachute Jasmine: 500 ml Rs.90
50 ml Rs.12

b) Major Factors Impacting Pricing

Copra and oil seed input

Packaging costs
Competitors

c) Pricing Method

Competitive
Promotional pricing (20% extra)

d) Pricing Strategy

Economy/Value

Place
Parachute sells all over India both in urban as well as rural India. Parachute Hair Oil is sold
through retailers like supermarkets, kiranas, baniyas, general stores etc. It is also sold in
Bangladesh and the Middle East.

Promotion
It advertises through Television, Print, Outdoor, and Digital. The brand has been endorsed by
celebrities like Deepika Padukone, Diya Mirza, Yuvraj, and Sreesanth. Advertising is heavy

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before Holi & during winters. Popular & effective campaigns like 1 hour champi kiya (have
you done an oil head massage 1 hour before shampooing) help remind people about the
benefits of oiling before hair wash. Parachute also uses van campaigns, Haats in rural areas to
promote the brand. Sales Promotion like 20% extra was made on the 200 ml pack.

COMMUNICATION MIX
1. Advertising
Advertisements of Parachute focus on the Pure and Natural features of the oil which
has made it popular in most Indian households, who have been using it for many years now.
In case of Parachute Coconut oil, the company leveraged the brands core benefits
creatively to develop advertising that is highly liked by the consumer. It was identified that

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consumers test the quality of a coconut oil through its aroma. Parachute is made out of
coconuts that are handpicked in Kerala that gives it a special, distinctive aroma. This was
effectively leveraged through a highly successful advertising campaign that saw the market
shares move up from 40% in September 2002 to 46% in February 2003.The Company
introduced a unique concept to upgrade people from loose coconut oil to parachute Coconut
Oil by contrasting to loose oil users the superiority of Parachute Coconut Oil. Parachute
Coconut Oil is produced from the best coconuts from Kerala in very hygienic conditions and
through machines that are automated. As a result, Parachute Coconut Oil reaches the
consumer entirely untouched by hand. In contrast, loose oil is produced out of poor quality
coconut in extremely filthy conditions. This distinction has been captured in advertising that
has been created to highlight the disparity between the manufacturing techniques of loose oil
vis--vis Parachute Coconut Oil. This has resulted in an 8% growth in Parachute compared to
-5% of competition between November 2002 and February 2003. Basis extensive qualitative
research, Parachute Jasmine arrived at the insight of mera pati, mera mangetar which had a
significant emotional connect across audiences. This insight was leveraged in the brands
advertising as a result of which the market share of the brand moved up from 25% to 35% in
the value added coconut hair oil category.

2. Sales Promotion
a) Parachute organized a Loyalty programme for its consumers with a headline:
Har pack per paayiye points, aur points par paayiye aakarshak inaam

50 points: 1 Hair brush free

150 points: 100 ml Parachute Hair Oil free
250 points: 100 ml Parachute Hair Therapie free
1000 points: 1 free visit to Kaya Skin Clinic

b) Parachute also launched Personal Hygienic Awareness Camps in school:

Student who participated in these camps got discounts coupon.

3. Trade Promotion
Gifts or Attractive schemes were made to make the retailers and distributors to stock

more which would increase the sales

There were additional margins for the retailers who sell more

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Incentivizing the retailers and consumers to collect the parachute oil cans, jars, and
bottles for recycling - A Trade and Consumer promotion

4. Public relations
Parachute took a CSR initiative in conserving the resource by recycling the products.
This created goodwill for the companys brand in the society.

5. Sponsorship
Jatra (open-air folk theatres) to facilitate an increase in Parachutes market presence
in rural areas. Partnership in each of them would cost the company anywhere between Rs.25,
000 and Rs.65, 000 depending upon the troupes that are hired. Discount coupons can be
distributed among the spectators.

6. Direct Marketing
When the consumer registers with Parachute Advansed coconut hair oil, the
company contacts the consumer from time to time about updation of their content to provide
the users such features that they believe may benefit their customers.

7. Message Strategies
Around 1996, a decision to do a makeover was taken when research revealed that
though the brand stood for purity and coconut oil, it was seen to be losing grelevance among
a younger target audience. Parachute emerged in a new avatar with new communication and
contemporary packaging. To tackle the other end of the spectrum the loose oil consumer,
Parachute launched 100 ml pouch packs at an attractive MRP to get new users into the fold.
After having successfully used segmentation in terms of value added products, the company
has trained its focus on using Packaging Innovations to drive the brand values.

8. Innovation Strategy
Marico followed innovation as a major strategy in building Parachute brand. The
following are some examples. 20 ml Parachute a Rs.5 that enables loose oil users to
upgrade to Parachute. Flip Top Cap for Parachute bottles to enhance the safety and protect the
purity of Parachute. Parachute Mini a bottle shaped small pack being sold at an MRP of
Re.1. Easy Jar of Parachute to facilitate usage especially during winters. The strategy

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followed by the company and the quality of the product offers a customized product in all
seasons, to grab the price conscious customer and to provide value for money.

STAGE CHARACTERISTICS
Market Introduction Stage
Slow sales volumes to start
Demand has to be created
Makes no money at this stage

Growth Stage

Costs reduced due to economies

Sales volume increases significantly
Public awareness increases
Competition begins to increase with a few new players in establishing market
The preferred strategy is growth

Maturity Stage

The preferred strategy is stability or modest growth

Sales volume peaks and market saturation is reached
Increase in competitors entering the market
Brand differentiation and feature diversification is emphasized to maintain or increase
market share

Saturation and Decline Stage

Sales volume decline or stabilize

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Prices, profitability diminish

Profit becomes more a challenge of production/distribution efficiency than increased
sales.

BRAND EQUITY
1. Brand Salience
a) Depth of Brand Awareness
Parachute has a high brand recall value. When we think of hair oil in general and
coconut oil in particular, Parachute is the first brand which comes to our minds.
Advertisements of Parachute focus on the Pure and Natural features of the oil which has
made it popular in most Indian households, who have been using it for many years now. Hairoils have undergone a number of changes in terms of composition, advertising etc. ever since
they were first introduced. And consumer preferences have also changed accordingly with
youngersters more comfortable with the non-sticky oils. Yet, the Parachute bottle with its
distinct blue colour does crop up somewhere in the mind space of consumers, even non-users.
b) Breadth of Brand Awareness
Parachute as a brand has few variants. Some of the products in its line are the winter
variant of normal coconut hair oil which comes in wide-mouthed containers, Parachute
Advansed, Parachute Star and Parachute Hair Cream. Parachute coconut oil is also
used in cooking in many South-Indian families. Coconut oil is regarded as a healing agent for
cuts and bruises. It is also used to prevent skin dryness in winter. Parachute comes from the
prestigious Marico house. Marico is a popular FMCG brand which started the Kaya chain
of skin clinics creating a niche market for itself in India.

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2. Brand Performance
Hair oil is needed to moisten dry, frizzy hair. It is a major source of nourishment to
hair. Good hair oil prevents hair from getting damaged by strengthening its roots and also
prevents hair fall. It improves the texture of hair. It also has a calming effect on the mind and
body when used for massaging. Parachute for me scores on all the counts mentioned above.
The primary ingredient of Parachute is coconut oil. It is supplemented by mildly sweet
fragrance which succeeds in generating a soothing effect. The product, priced at Rs.35 is
quite affordable. A bottle of Parachute has a simple, non-sophisticated design. Its pin hole
opening prevents spillage of oil. It is very much portable since it is leak-proof. In winter oil
tends to solidify. Parachute comes in special wide-mouthed containers for usage during
winters.

3. Brand Imagery
Parachute has been an age-old brand in my family. Its become an inseparable feature
of the dressing table. Family experiences of parachute have been fond. Its versatile usage has
strengthened its image in my mind. The brands no-nonsense image makes it very popular
among the middle-class with whom I associated deeply. Its other uses include daily use for
hair-care, applicant for wounds and burns, prevents skin dryness during winters. The portable
small bottle can also be used while traveling. The brand is available at most retail outlets
ranging from small shops to hypermarkets. This highlights the presence of the brand across
different customer segments.

4. Brand Personality
In personality, Parachute is viewed as respectable and caring. Though oldfashioned in nature, it has been dependable to people in the family in many different ways.
Its multi-purpose usage has made the brand an inseparable part of families.
The other aspects of Parachutes brand personality are:
a) Sincerity The brand is sincere in meeting its objective of hair nourishment at an
affordable price. Its purity is undoubted as it has been used as cooking oil in many families
on many an occasion.

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b) Excitement What makes the brand exciting is the wonderful texture it gives to the hair.
Also, it comes in a vibrant blue bottle. Its sweet coconut-like fragrance does not make it
repulsive like most other natural oils. So, the fact that the oil is natural and also smells good
makes it an exciting product.
c) Competence By far, it is the first and only name that consumers think of when it comes
to hair care. It may lack the flaunty nature of most other oils. But functionally, it is superior in
terms of meeting its users primary requirement of hair-nourishment.
d) Sophistication Parachute has immense classiness. It has a refined image banking on its
credentials of being pure and natural. It is in being simple yet exclusive that the brand
has become sophisticated.
Parachute brought coconut oil out of tins into consumer friendly packaging. It has
now penetrated deep into the market available even in rural areas.
Brand Colour The vibrant blue colour denotes exuberance, style and liveliness.
Country of Origin India Very aptly the Pure and Natural concept is embedded in its
brand building strategies. Pure also conveys a sense of safety.

5. Brand Judgments
Parachute is a very safe and dependable brand. Supreme in quality and consistent in
terms of price, consumers feel it is irreplaceable.
a) Brand Quality Consistent, quality has improved in the past 10 years. Even solidification
does not alter its properties.
b) Brand Credibility

Perceived expertise

i) Market leader in pure coconut oil

ii) Innovative in terms of new products launched in the same product line Parachute
Advansed, Parachute Jasmine, Parachute Star, Parachute Hair Cream

Trustworthiness Dependable, no event of skin/scalp disease on application

Likeability Relaxing yet reviving

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c) Brand Consideration My hair-type which is basically dry and frizzy needs the kind
of nourishment Parachute provides. So personally it is very relevant to me.
d) Brand Superiority Parachute as a brand has even eclipsed its own family Marico.
People recognize Parachute more than Marico. Competition to Parachute has been
almost nil in the Pure Coconut Oil segment making it the undisputed leader in the market.

6. Brand Feelings
The Brand gives a sense of confidence and makes the users feel cared for. It has
graduated from being one of the favorite brands to one that users undoubtedly trust. The
brand contributes a lot to the feel good factors. It makes users feel relaxed and this
relaxation gives the users a renewed vigour to do things. The Parachute ad shows the hairoil to be in-sync with nature highlighting Purity as being symbolic of Parachute.

7. Brand Resonance
We live in the age of surfaces. Superficiality reigns supreme. Anything that looks
good on the exterior is deemed fit to possess. So it is with hair-oils. Non-sticky hair oils come
loaded with chemicals which damage hair in the long run. But the external shines they
generate lure unsuspecting consumers towards them.
This is where Parachute stands apart. For one thing, it is not superficial. Though
greasy and old-fashioned in personal, it does not damage hair in the long run. Instead it
nourishes the roots and makes them strong. And thats why users identify themselves with
Parachute well. For users too dont believe in being superficial to maintain a short-lived good
image which would prove detrimental to me in the long run, however users focus on their
inherent strengths to enrich their life in the long run.

8. Sense of Community

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Users readily relate their selves with Parachute because they believe they share the
quality of simplicity and effectiveness focusing on the more relevant things in life other than
other flippant pursuits. The sense of kinship is indeed very strong. A Parachute session, as
per users say is worth the time. It keeps them composed, calms the mind and makes them
more productive. 10 minutes of using Parachute means 3 hours of improved concentration
and hence improved efficiency.

BRAND UPDATE
In December 2007, Marico entered the kid's personal care market with the launch of a subbrand " Parachute Advansed Starz" . Marico believe in extending its brands to new
categories. It has done that for entering Men's haircare market by launching Parachute
Aftershower . But once these new brands reach a position of awareness and recall, the subbrands take up the position of a primary brand. Now Aftershower has an independent
existence from Parachute. By launching Starz, Parachute is entering the Rs 2000 crore
shampoo market which is dominated by HUL brands. Parachute AdvansedStarz is not
restricted to shampoos but positioned as a haircare brand that offers different haircare
solutions. Currently the brand offers Shampoo Hair Oil and Hair Gel. The brand is taking on
a demographic segmentation and is targeting the kids of age group 4-12 Yrs. The Indian
shampoo market has not seen a brand focusing specifically on this segment. Clinic All Clear
is a brand that has targeted this segment but the brand is also used by adults.Clinic All Clear
has used campaigns to target both adults and kids. For example the Chulbulli campaign is
targeting Kids but the Bipasha + John campaign targets the adults. The product is the same.

The new brand of Marico is different because it is designed especially for

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kids.The product, the packaging and the promotions are directly targeting the kids.
Parachute Advansed Starz comes in attractive Pink bottles and features cartoon characters.
The brand takes up the tagline " Gentle care for young hair " . Starz takes strength from
Parachute and relies on the goodness of coconut to differentiate. The brand also claims
advantage of Vitamins , Proteins and Strawberry. The brand essentially takes up Nourishment
as the main brand benefit. has used two "cool" characters whose names are not yet publicized.
If properly used , these characters can become powerful brand ambassadors.They look smart
enough to appeal to the younger ones. I liked Starz because it shows the use of brand
elements to the fullest. Starz. ( infact they remind me of Archies comic characters ). The
brand is priced Rs 54 for 100 ml for the shampoo. Marico intends to develop a new category
of specialized hair care solutions for the kids aged 5-10 and even the tweens. This is the age
where kids develop lot of hair related problems because of their active & careless lifestyle. So
far, Mothers used their own brand of shampoos or may have used Johnson's shampoo for this
age group. The success of Starz may seen a new category opening up for marketers. The
question that comes to my minds is whether there is a need for a kids-only haircare products ?
The answer lies in the increased exposure of kids towards brands. The new NUF ( Nuclear
Urban Family ) structure gives marketer an opportunity to target these segments. The success
of Starz will depend on how Marico motivates the younger ones to pester their mothers to
buying these products and also on how the brand captures the trust of the mothers. The first
task is difficult because mothers are already convinced about Parachute. Parachute has done a
smart work is positioning the brand as a haircare brand and not limiting itself to shampoos of
hair oil. This gives more leverage and flexibility to the brand from the start itself.

SWOT ANALYSIS
1. Strengths

Premium edible grade coconut oil.

Market leader in its category, has a huge loyalty in the urban & rural sections of India.
Synonymous with pure coconut oil & is positioned on the platform of purity.
Brand has sought to remain relevant and differentiated through a slew of initiatives in
packaging & communication like the weight-test (proving that pure coconut oil is
heavier than impure oil). These innovations have ensured protection of existing

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franchise; they have propelled further penetration, enabling conversion of loose oil

consumers to packaged Parachute Coconut Oil.

Parachute enjoys tremendous equity and trust with every passing generation.
Is entering the shampoo market with Starz and has a range specifically for the age
group of 3-10 years.

2. Weaknesses

Innovations like personal massager where available in select cities and limited

quantities.
Parachute Hot Oil should be a seasonal product and should be sold in winters and not
during summers in places where it gets very hot.

3. Opportunities

Parachute can get into skin care by introducing oils for application on the entire body.
Parachute should launch variants that have not only coconut but also other natural
ingredients that benefit the hair. This will help fight competition from brands that are

not made of coconut but other ingredients like badam, Amla, mustard etc.
Should launch variants that make the head feel cool and refreshed.

4. Threats
Many players are entering the market.
Parachute as a brand is positioned as a coconut oil. Competitor brands are
communicating the advantage of using oils that are made of Badam, Amla, and
Mustard etc.
Though Marico is expected to roll out its Maha Thanda brand in March 2009 which is
in the cooling hair oil segment, Parachute can lose market share as it does not have a
product in that category.

SUCCESS

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Relevance to the New Age Consumers through Innovation in Packaging and New

Product Development.
Parachute Achieved a volume growth of about 8% in volume over Q3 FY 09 in rigid

packs.
Parachutes share in the coconut oil category for the 12 months ended December 09
was 45.9%.

Awards
Marico has also won various other Awards, such as the following:
Marico won 4 Awards for excellence in Employer branding & Advertising to Talent at the
Remmy Awards 2009.
Marico was awarded the IMC Ramakrishna Bajaj National Quality Award in Manufacturing
Category by the Indian Merchants' Chamber.
Parachute won the Asia Star Award for the Parachute bottle warmer awarded by Asia
packaging Federation.
Parachute ranked 6th Most Trusted Brand in Bangladesh by The Bangladesh brand forum - an
affiliate of the Global Brand Forum, Singapore in 2008.

Parachute won the Outstanding Marketing Achievement Award Silver in 2008.

Contributors to parachutes success

The Quality Of the product has contributed to its lasting success. The consistency,
with which Parachute has delivered, ensures consumer loyalty and trust in the brand.
Innovations in the bottle too, whether from the aspect of user friendliness or aesthetics
have and continue to help Parachute grow. One of the first brands to utilize mass
communication, Parachute used the caring platform with the mother daughter theme to
underline the message that this was a brand handed down from and to generations. The new
look and logo have helped attract the youngsters of today.

SUGGESTIONS

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As many of the respondents are from the middle class, the company should try to

cover all the people of this class.

The company should also try to add many more varities to satisfy its existing

customers and to attract new customers.

The advertisements should be made more effective by creating a theme, touching all

the consumers.
As the major source of awareness is the advertisements, the company should try to

make the advertisements more effective so as to reach all the consumers.

As many of the consumers go for a purchase of once every month, the company can
go for effective schemes and offers and can try to attract the consumers to go for more

purchases.
The company should try to enhance the quality under more by maintaining the same

basis so as to maintain the customer and to attract many more consumers.

The company should try and also enhance to attract many more new consumers.
The company can go for other media like hoardings, posters, banners etc.
The company should try to make all the consumers aware of all the varities of

parachute coconut oils range to increase its sales.

The packing can also be enhanced to attract many more new consumers.

CONCLUSION
Conclusion

Company Marico has strong and long term association with the retailers in rural
areas.

Parachute is the most satisfied Brand/Product, followed by Saffola, Silk & Shine, Hair
& Care and Sweekar Edible Oil & after Shower Gel.

Review

Many users have shared their experience with Parachute Coconut Oil.
Some say it as a Hair Treatment.
Others feel, it has dramatically improved their dry hair.
Users feel that not only their hair has grown faster or thicker than normal but also

dont have frizzes anymore..

One of the used said, Thanks to coconut oil, my hair is on the mend. I can even see
that the mid lengths are blacker and thicker than the ends. A year ago a hairdresser

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thought I had bleached it when in fact it was damaged from GHD use and swimming
at the beach.

Another user said, I now use it on dry hair after Ive washed it like a serum. This is a
quicker method of conditioning and it weighs down the fly a ways. Works really well
with my hair blow dried, Straight, or naturally dried curly. In fact, curls form well

with the coconut oil because they are glossy and more defined.
Rainy season is the worst season for the hair, the water is impure and dirty and thus
results in plenty of hair fall. Not just fall of the hair but it becomes rough, dry and
unmanageable so in such case giving proper nourishment to it is a must. I use
Parachute Coconut hair oil for giving my hair that extra protein it requires so that a

change in weather doesnt affect it adversely.

Its not that Parachute Coconut hair oil stops hair fall completely or makes the hair
silky smooth but it sure gives the root the protein it requires and strengthen it.
Coconut hair oil is always said to be good for hair and Parachute Coconut hair oil is a
trademark for some high quality hair oil. I have been using Parachute Coconut hair oil
since a tender age and I love it really, it was a little problematic using it in winter as it
was bottled in a narrow headed bottle but now it comes in a circular tube so solves all

kind of problem.
Parachute Coconut hair oil gives the hair extra care and a little mustard seed boiled in
coconut oil can help prevent intensive hair fall. I have tried it and it worked for me but
use pure coconut oil and I trust only Parachute Coconut hair oil in terms of quality
and purity.

One of the user suggested that, For long hair, use between half to a teaspoon of
coconut oil. Spread it across your hands and around your fingers. Then evenly
distribute it by smoothing it through your hair. Starting from the ends. It looks a bit
oily at first but my hair DRINKS it up. Thats how dry it is. My hair gets softer and

sleeker for days until I wash it again.

It can also be used as body-lotion, hand treatment and cuticle oil. It moisturizes
like nothing tried before and absorbs quickly.

Users highly recommend Parachute Coconut Oil. Go try it, girls! Its cheap, smells
yummy, has heaps of uses and its 100% natural.

Get softer, smoother hair with Parachute Advansed Hot Oil's Deep Conditioning .Parachute
Advansed Ayurvedic Hot Oil is to give Hot Massage to your hair for extra care.

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The winters bring in lot of fun but it is very punishing for the hair. The extreme weather and
lack of Moisture at this time of the year leaves your hair rough and dry, making it look dull
and lifeless. This means that you need to give your Hair Extra care in winters. Parachute
Advansed Ayurvedic Hot Oil only best way to do so is giving a Hot Champi!!
Parachute Advansed Ayurvedic hot oil is enriched with the Goodness of both Coconut &
Ayurvedic ingredients like Thyme, Patchouli, and Rosemary, which gives your Hair extra
nourishment. It has special warming oils which keeps it hot from within & hence able to
penetrate deep in to scalp and nourishes your hair from within giving it a healthy glow even
in the harshest of winters.
Directions for use:
Dry rough hair can be difficult to manage. New Parachute Advansed Hot Oil's Deep
Conditioning gives deep conditioning treatment to make them 3X softer and smoother. It
penetrates 3 layers deep in just 20 minutes. So apply Hot Oil just 20 mins before shampoo
and win your hair over
Just Take Parachute Advansed Ayurvedic Hot Oil onto your palm. Rub your palms together to
feel the warmth come through. Gently massage the oil onto your hair and scalp. The warmth
will open up the pores and the oil will soak in, providing deep nourishment.
Specially Beneficial for those who love trying new things with their hair like blow- drying,
colouring and straightening etc. It actually damage the quality for hair. Parachute Advansed
Ayurvedic Hot Oil restores it.

My Experience
I have just recently noticed that due to hot and humid weather, I am undergoing hair-fall
issue. I was losing so much of my hair whenever I take a bath. It seems like I was losing
about 50 strands with just 1 bath, and after I brush my wet hair about another 30 falls, I told
this to my mother who calmly asked me to use
Ok it doesnt look much in the bottle. The bottle looks cute in my opinion; the fragrance
doesnt smell good, nothing really excites me to use it but still I had to test it out as I have to
know if it was effective for my hair.

33

For the first time, when I oiled my hair, more and more strands were falling off. I was getting
second thoughts of using it. But thank GOD I used it because after using it for about 3 weeks,
my not only stopped falling but became quite lustrous and shiny. The oil made me a real
believer; I was a total skeptical at first. Im glad I didnt stop using it and I am very happy
about the results. Honestly, I will continue using it. I would totally recommend this to anyone
who has trouble with hair fall and would like to get some treatment. You will really see
results in using this and I hope the hair problems of people will lessen as they try this
product.

Color and smell- It is nude in color with orange tint and pleasant herbal scent.

Pros:

Regular use has reduced my hair fall to an extent.

It can be applied to the scalp without any hesitation and I did not find any irritation or

allergy at scalp after using it.

It contains pure herbals extracts with excellent therapeutic properties.
Reasonably priced.
Its non-sticky oil. No chip chip, no khit khit.
Will be available in Big Bazaar, Pantaloons & Reliance Fresh.

Cons:
I could not think of anything.
Rating
Quality- 5/5
Price-5/5
Packaging- 4/5
Availability-4/5

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BIBLIOGRAPHY
www.marketing91.com/swotparachute/
strategicbrand.blogspot.com/2007/06/parachuteoil.html
www.marketing91.com/marketingmixparachute/
www.slideshare.net/sk_prince/sales-promotion-parachuteoil5688049
www.advertlog.com/marico-industries/print-outdooe/parachute-4851455