Chapter# 01

Introduction:
Introduction:

Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness
space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated a
Turnover of about Rs. 23.9 billion (about USD 478 Million) during 2008-09. Marico markets well-
known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive,
Manjal, Kaya, Aromatic, Fiancée, Hair Code, Caivil, Code 10 and Black Chic. Marico's 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 etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (101 in India,
Middle East and Bangladesh) and its soap franchise. Marico's branded products are present in
Bangladesh, other SAARC countries, the Middle East, Egypt, Malaysia and South Africa. The Overseas
Sales franchise of Marico's Consumer Products (whether as exports from India or as local operations
in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded
products and services. In the current challenging macro economic environment, few FMCG are
seeing down trading by consumers. However, as majority of products of Marico are items of
daily consumption, the pressure may not be as severe. Also, a failure of monsoon may play a
spoil sport. Discretionary spending in services like Kaya may witness some slowdown. The
margin outlook for most FMCG companies have improved for the better, the benefits of
which are expected to be deployed in building existing brands and in establishing new ones
as outlined by Marico. Marico reported a healthy top line growth 16.8% on consolidated basis
to Rs 696.7 crores. The growth was led by strong expansion in volumes which witnessed a
growth of 14% and 3% price led growth. This is in sharp contrast to the trend witnessed few
quarters back where the value growth outpaced the volume growth which was mainly led by
price increase. The strong performance during the quarter is mainly led by roust growth in
international business and margin expansion due to lower input costs. PAT grew by 26.7%
YoYo to Rs 58.6 crores. Excluding one time exceptional item on account of divestment of
Sundari, the PAT would have grown by 37% YoYo. Fastest Growing FMCG company in
Bangladesh Marico Bangladesh Limited (MBL) holds a leadership position in the FMCG
space. MBL is the subsidiary of Marico Limited, India (Marico). MBL’s Products in Pure
Coconut oil, Hair care and Skin Care reach out to more than 450,000,outlets in Bangladesh,
MBL generated a turnover of about Tk. 2650 Million (about USD 38.4 Million) during 2007-
08. MBL markets well-known brands such as Parachute, Aromatic, Camelia, Hair Code and
Beliphool to name a few, most of which enjoy leadership
positions (No. 1 in coconut oil segment), with significant market shares in respective
categories. Ranked 6th most trusted brand out 849 brands across the category by Bangladesh
Brand Forum in 2008, Parachute holds 73% market share in coconut hair oil. One in every
three Bangladeshi is a MBL consumer, while over 9.25 Million consumer packs from Marico
reach to consumers every month. Marico Bangladesh Limited (MBL) has tripled its turnover
in 3 years, and achieved what very few FMCG companies would have been able to pull off-
37.71% compounded annual growth over past 8 years. How did they achieve this? By looking
beyond the traditional FMCG space and seeking focused avenues for growth. Transforming
consumers from non-branded to branded coconut oil offering purity. From a small player to a
3rd largest FMCG multinational company. Focus not just on organic growth but also in-
organic growth. At the same time, our flagship brand ‘Parachute’ continued to grow year on
year, providing a firm foundation for our growth .While Parachute has been successful in
growing the market leading with 72% market share, becoming 6th best brand out of 849
brands country wide among local &MNC brands. Our large investment in brand building,
360 degree approach in marketing and expansion in distribution too has contributed rapid
growth. Today Marico Bangladesh Limited has emerged as the fastest growing vestment in
brand building, 360 degree approach in marketing and expansion in distribution too has
contributed FMCG Company. Our approach to the market with uncommon sense has helped
us challenge the norm to push the boundaries of our existing businesses and set up new
ones. Over the past 17 years, Marico has been continually improvising, building new brands.
It has created new categories and dominated markets with new products., Our large shares
close to a 100%. Having moved up from products to services, Marico has now taken its
brands to 24 countries worldwide.

Company Background

Marico limited, a public company head quartered in Mumbai, India, was incorpirated in
1988. It manufactures and sells consumer products such as hair care products, skin care
products, etc. other products such as hair care products, in both domestic and international
markets. It operate under three business lines-Consumer products, Aesthetics Services and
Global Ayurvedics. The company manufactures consumer products under brands such as
Parachute, Sweekar Saffola, Mealmaker, Silknshie, Shanti and Mediker. Marico’s subsidiary,
Kaya Skin Care Limited, offers aesthetics services and products such as enhancement
services, problem solution services, anti-aging services, skin lightening products, soothing
gels, revitalising tonics, skin repair complexes, etc. The company’s joint venture with Sundari
specialises in Ayurcedic skin care products. Marico has seven production units in India, one
each in Goa, Kanjikode, Pondicherry, Daman, Jalgaon, Saswad and Dehradum.

Marico Limited is head quartered at new Delhi, India is one of the largest consumer Products
companies in India . Currently it operates in 25 different nations across Emerging markets of
Asia and Africa . Countries included India ,Bangladesh, Egypt, Middle East, Malaysia,
Vietnam, Marico has established multiple brands in categories Like hair care, slincare, health
foods, males groming and fabric care . Marico always focus on delivering better products and
maintaining a suitable growth. Charting an annual turnover of 61billion Rs. In the financial
year of 2015-2016. Marico empowers a work culture that encourages members to take
complete ownership.

Mr. Harsh Mariwala the chairman of Marico Ltd. Established Marico on April-2, 1990 in
Masjid BandurBazzar. In the next year Marico leadership co-created its first corporate
mission And various document in the 3Psof Marico. It articulated “ who it wanted to be “ and
“ how It would like to go about doing it “. In 1994 Marico went from being an exporter to an
international marketer and set up its first overseas market in Dubai, on March-21, 1996 .
Marico listed on the India stock exchange and become Marico Ltd in 2003. Marico
innovation foundation takes root And set up copra collection centers to procure directly from
farmers , increasing their margins and thereby improving their lives, from 2006-2007. Marico
casted its footprint in South Africa and Egypt in 2010, it entered Malaysia and Singapore.

Marico Bangladesh Ltd:

In 1999 Marico thought of expansion and they did entered the emerging market of
Bangladesh . It started its operation in2000 and 10 years letter in 2009 they made a public
offering of equity in Bangladesh which was also their first overseas subsidiaries . Since then
Marico in Bangladesh is known as MBL . Its head office is located at Uttra . Its total
authorized capital is 400 Crore and total paid up capital 315 Crore .

Marico Bangladesh Limited is one of the top 3FMCG MNCs and is a trusted brand name
when it comes to beauty and wellness space in Bangladesh . They proudly serve 1 out of
every 2 Bangladeshis with its diverse port folio of brands in different categories . Its flagship
brand parachute was awarded as the best brand in 2011 by Bangladesh Brand Forums.

Vision and mission:

Vision: The company wants operate its business in suitable manner nurturing and
empowering its relation with stakeholders in order to maximize their true potentials. Being a
company of immense possibilities and promise, it is guided by an underlying dedication to
realize their stakeholders their true potentials. This unique vision provides the company a
unified sense of purpose and destination and make them committed to being the best in
everything they do.

Mission: Marico wants to achieve its vision by making a difference. It believes that its
sustainable growth strategy stands on an empowering work culture that encourage its
members to take complete ownership and make a difference to their entire business
ecosystem.

Values:

Marico values guide their actions and how they behave in everyday works. They have
enables employees to create a unique culture at Marico Bangladesh. Their values are
considered as the DNA of their organization, emmersed in every member across hierarchies.

Opportunity seeking: Marico always want to make their business moves by identifying early
opportunity signals in an emerging market to generate maximum growth point.

Innovation: They believe that innovative experimentations and calculative risk taking can
enable them to secure quantum results.

Boundarylessness: Marico want prov ide support and influence stakeholders to go beyond the
existing function to achieve better outcomes without diluting one’s accountability.

Transparency and openness: Allowing diversity of opinion by listening without bias, giving
and receiving critique with mutual trust and respect for each other.

Bias and action: preference for quick thoughtful action as opposed to delayed action through
analysis.

Excellence: Continuous improvement of performance and capability building for sustained

long-term-success.
Reducing Boundaries: Seeking support and influencing others beyond the function and
organization to achieve a better outcome, without diluting one’s accountability.

Global Outlook: Sensitivity and adaptability to cultural diversity and learning from different
culture.

Rational of the report:

As a marketing student I always had the interest to learn more about a consumer brand . In
my 3 month of work experience at Marico Bangladesh Ltd. I have worked for different
consumer brands . From which I got interest on and information about Marico Bangladesh
Ltd. Consumer brand -Parachute . MBLs flagship brand Parachute is as well recognized else
where in the world as it is in Bangladesh .

Although Parachute is the undisputed market leader in its respective segment .That said but ,
in Bangladesh MBL is still on the expansion phase of their flagship brand-Parachute . MBLs
promotional strategies in term of Parachute plays the biggest role . Different line of strategies
has already been taken into consideration to expose and position this flagship brand in its
consumers mind . Now in this report I have discussed Differentiation Strategic of Marico
Bangladesh Ltd.

Objective of the report:

The primary objective of the report is to fulfil the requirement of internship program course
require by Atish Dipankar University of Science and Technology . While I worked on
collecting data to successfully program . I discovered several aspect of the brand “Parachute”
. Also I got to know about its differentiation strategies , marketing tools and had to analyse its
potential competitors . Some other objectives of this report on Marico Bangladesh Limited’s
consumer brand (Parachute) is given below:-

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

2. To know about the satisfaction level of consumers with regard to parachute coconut oils
3. To know about the satisfaction level of consumers with regard to parachute coconut oils

4. To know the consumers preferences towards parachute coconut oil.

5. To know the consumer perception to wards the price of parachute coconut oil.

Limitation of the study:

However some of limitations faced while preparing this report are shown below:

1.Time Limitation: To complete the study time was limited by three months. It was really
very short time to know about an organization like Marico Bangladesh Limited.

2. Inadequate Data: The unwillingness of the busy key persons, necessary data collection
become hard.

3. Lack of Record: Large scale research was not possible due to constrains and restrictions
posed by the organization. Unavailability of sufficient written documents as require making a
comprehensive study. In many cases up to date information was not available.

4. Lack of experience: Lack of experiences have acted as constraints in the way of meticulous
exploration of the topic. Being the temporary member of the organization, it is not possible.

5. Art to express some of the sensitive issues.

 CHAPTER # 02
METHODOLOGY OF THE STUDY
METHEDOLOGY OF THE STUDY

For my study purpose I have to collect information from both primary and secondary sources
For collecting the primary data firstly, I personally discussed with different officials of
different Marico on the basis of the Questionnaire Secondly, data were collected from
executives, managers etc. Of Marico Bangladesh. Thirdly, a participative discussion were
conducted with Mr. Aziz Ahamed, ceo. Of Marico Bangladesh. from which I have collected
information about the company and the industry.

 Reports
 Articles
 Bulletin etc

By surveying the Marico I came to know about this sector. Their position in the industry their
target groups, existing problems and prospect of this sector. I also surveyed some ongoing
projects of the markets to know about the consumer side. I have visited marico Bangladesh
(Ltd ) to know about the current situation of this sector. The Research Approach The study
approach is to collect the qualitative data and the following three approaches were
used:

Sampling plan:

Sampling plan is a definite plan for obtaining a sample from a given population. The
sampling process of this study is given below:-

1. Population: A group of individuals or items that process similar characteristics from

which data can be gathered and analyzed is called population. The target population
are the employee, retailor & consummer’s of Marico Bangladesh Limited. The total
population of this study is 50 persons.

2. Sampling size: The sample size was 50 respondents.

3. Sampling method: The convenience sampling technique was used for collecting the
information.
Discussion

1. Personal Interview and

2. The observation method

While collecting the primary data the instant response were found and it was possible to
observe the real situation.

Data collection:

Mainly two types of data were used.

1. Primary data.

2. Secondary data.

Primary data:

Primary data refers to those data which are directly collected by the researcher through
survey, observation and experience. A structure questionnaire consist of both open ended and
close ended question was developed. A total 5 statements were there in the questionnaire to
measure employees reaction to the training program where 1 is coded as strongly Agree, 2
Agree, 3 Neutral, 4 Disagree and 5 Strongly Disagree.

Secondary data:

Secondary data refers to those data which were collected and used previously by anther
person and it is collected by the researcher from secondary sources.

Secondary Source:

1. Annual report.

2. Trining manual of Marico Bangladesh Limited.

3. Different text books.

4. Various reports related to the study.