A Report on

“Marketing Plan of Parachute Hair Oil Focusing on Consumer Behavior”

 A Report on

“Marketing Plan of Parachute Hair Oil Focusing on

Consumer Behavior”

Submitted To
Dr. Syed Ferhat Anwar
Professor
Institute of Business Administration
University of Dhaka

Submitted By
Group 11
MBA 57D
Institute of Business Administration
University of Dhaka

Date of Submission
7th December, 2017
 Group List

Name Roll Number

Musarrat Jabeen 25
M. Rizwan Islam 32
Pranjal Chowdhury 33
Md. Abul Kashem 42
Tausif Murshed 52
 Letter of Transmittal

7th December, 2017

Dr. Syed Ferhat Anwar

Professor
Institute of Business Administration
University of Dhaka

Subject: Submission of report on “Marketing plan of Parachute Hair Oil focusing on

consumer behavior.”

Dear Sir,

We are glad to inform you that we have completed our report on “Marketing plan of
Parachute Hair Oil focusing on consumer behavior.”
We have tried our level best to follow the guidelines that you have provided. The preparation
of this report has enabled us to get an insight into the real life situations around the market.

We sincerely thank you for giving us a chance to present this report. We eagerly await your
feedback.

Sincerely,
Group 11
MBA 57D
Institute of Business Administration
University of Dhaka
 Executive Summary
Consumer behavior can be explained as the analysis of how, when, what and why people buy.
The relationship between consumer behavior and marketing strategy is beyond important
because the successful execution of companies’ marketing strategies relies on managers’
understandings of consumer behavior. This study deals with Parachute as the core product
and tries to identify how change in demographic variable, personal values and lifestyle will
affect the demand of Parachute in future. Parachute currently segments its market on the basis
of socio economic class, gender, geography and other psychographic variable. Currently is
target market is the women aged between 15-45 years from both urban and rural area.But by
studying the demographic change it can be predicted that the number of young children is on
the rise. But, no hair oil is currently being served exclusively for this market. It is an
opportunity for Parachute to change its product mix and innovate something for them.
Change in lifestyle also has some implication for Parachute. Men are now more concerned
about skin and hair care. Hair care for men is as important as women. But, there is no hair oil
designed for them. Men face the fall problem as much as women do, in some cases even
more. So, there is a scope for Parachute to launch ‘Parachute Hair Oil for Men’. Increasing
gap between brand personality and target market personality is another fact to notice.
Consumers purchase products to reflect their personality. The personality traits associated
with Parachute are traditional, humble, cultured etc. But recently, a large share of its target
market is women, is getting out of these traits. There has been a shift in personality. Girls
have now associated themselves with traits like “independent”, “outspoken”, “confident” etc.
They may not be able to or would like to associate themselves with a brand like Parachute
that has a traditional brand personality. So, Parachute should try to modify its current brand
personality so that women coming from every personality type could attach herself with the
brand. Based on these phenomena, new marketing mix can be designed that will reflect all
these changes. In order to achieve spirit share which means turning customers into loyal
advocates of the product, word of mouth can be a useful tool. The target market of Parachute
is women. Females often share their opinions on products and services and they make a
purchasing decision based on the experience of someone they know. So, the expectation of
women needs to be studied and met to turn them as ambassadors of the product. For The
brand management strategy of Parachute is to continuously improving their products based
on the changing consumer needs. There are five key areas of transformation – innovation, go-
to-market, digital and IT, talent, culture and value management. These are the five areas
where they can make themselves future ready and focus on for at least the next three years.
Marico has currently excluded itself from the huge potential of BOP market due to different
barriers such as higher distribution cost, mismatched priorities, difficulty in predicting
demand etc. However, if these barriers can be overcome, Marico can take huge advantage of
this large Market with latent demand for their product.
Contents
1. Introduction ........................................................................................................................................ 8
2. Organizational Profile ......................................................................................................................... 8
2.1 Product Portfolio ........................................................................................................................... 8
2.2 Purpose ......................................................................................................................................... 9
2.3 Key Milestone ............................................................................................................................... 9
2.4 Financial Snapshot ...................................................................................................................... 10
3. Segmentation, Targeting and Positioning ......................................................................................... 10
3.1 Segmentation .............................................................................................................................. 10
3.1.1 Current Segmentation.......................................................................................................... 10
3.1.2 Suggested Segmentation ..................................................................................................... 11
3.2 Targeting ..................................................................................................................................... 12
3.2.1 Current Targeting ................................................................................................................. 12
3.2.2 Suggested Targeting............................................................................................................. 12
3.3 Positioning................................................................................................................................... 12
4. Analysis of Organization.................................................................................................................... 13
4.1 Analysis of Marico Bangladesh ................................................................................................... 13
4.1.1 PESTEL Analysis .................................................................................................................... 13
4.1.2 BCG Matrix ........................................................................................................................... 14
4.2 Analysis of Parachute .................................................................................................................. 18
4.2.1 Analysis of Market and Competitors ................................................................................... 18
4.2.2 SWOT Analysis...................................................................................................................... 19
5.Consumer Behavior Analysis.............................................................................................................. 22
5.1 What is Consumer Behavior........................................................................................................ 22
5.2 Factors Influencing Consumer Behavior ..................................................................................... 23
5.3 Consumer Behavior Analysis for Parachute ................................................................................ 25
5.3.1 Demographic Changes Affecting Parachute ........................................................................ 25
5.3.2 Personality Changes Affecting Parachute ............................................................................ 26
5.3.3 Lifestyle Changes Affecting Parachute ................................................................................. 27
6. Marketing Mix ................................................................................................................................... 29
6.1 Product ........................................................................................................................................ 30
6.2 Price ............................................................................................................................................ 30
6.3 Place ............................................................................................................................................ 31
6.4 Promotion ................................................................................................................................... 31
7. Social dimensions: ............................................................................................................................. 32
7.1 CSR Activities:.............................................................................................................................. 32
7.2 BOP Inclusion .............................................................................................................................. 33
7.3 Quadruple Bottom Line............................................................................................................... 34
8. Brand Building Strategy..................................................................................................................... 35
8.1 Uniqueness of the Brand ............................................................................................................ 35
8.2 Sustainable brand through spirit share....................................................................................... 36
8.3 Brand Management Strategies for the Future............................................................................ 37
9. Conclusion ......................................................................................................................................... 37
References ............................................................................................................................................ 38
1. Introduction
A marketing plan is a roadmap for marketing strategies that provides direction to a company
to obtain its objectives. The importance of a marketing plan cannot be overstated. It gives
clarity as in who is the target market, what product mix to offer them, what pricing strategy
might be followed and what kind of promotional tool maybe used. A detailed marketing plan
provides focus and direction. But before crafting the future, current marketing mix needs to
be examined as well.

To prepare this marketing plan that is focused on consumer behavior analysis, we have
selected “Parachute Hair Oil”. There are several reasons behind choosing this product.
Parachute is the most successful product of Marico Bangladesh. Majority of its revenue is
earned by it. Since it is a consumer product, there is more opportunity to identify change in
consumer behavior. Also, studying the present and identifying the future of such a giant
product will provide the opportunity to mark its success factors.

2. Organizational Profile
Marico Bangladesh Limited is amongst the top 3 FMCG MNC companies and a trusted brand
in beauty and wellness space in Bangladesh. The company touches the lives of 1 out of every
2 Bangladeshis with an array of brands in various categories, including hair nourishment,
edible oil and male grooming, through a strong distribution network that reaches more than
790,000 outlets throughout the country. Its flagship brand, Parachute completed its journey
of 16 successful years in Bangladesh, with an ever-growing base of loyal consumers. The
brand has been amongst top 10 most trusted brands continuously since 2009 and was awarded
the title of "Best Brand" by Bangladesh Brand Forum and Nielsen in 2011. Over the years,
the company has strengthened its brand portfolio, most notably through the expansion of its
VAHO (Value Added Hair Oil) segment.

2.1 Product Portfolio

The products of Marico fall into four broad categories. These are:

Hair Care Health Care Skin Care Male Grooming

• Hair Oil Refined Edible Oil Body Lotion Deodorants

• Hair Color Functional Food Cosmetics Hair Gel

Figure 1: Product Portfolio

2.2 Purpose
The purpose of Marico Bangladesh is to enrich people’s lives and add value to them. It lives
to lead its customers toward a happy and healthy life. This is reflected in their product
portfolio which is full of products that people use in their everyday life. For example,
“Saffola’’ is positioned as an oil which is healthy for the heart. It helps to maintain a low
blood pressure.

2.3 Key Milestone

•Incorporated in 1999
1999

•Started operations in 2000

2000

•Marico Bangladesh listed on Dhaka and Chittagong Stock Exchange

in 2009
2009

•Launched Saffola Active Edible Oil

2010

•Lauched Parachute Advansed Cooling Hail Oil in 2011

2011

•Launched Nihar shanty Badam amla and Hair Code Keshkala in

2014 2014
2.4 Financial Snapshot

800

700

600

500

400 Turnover (Crore BDT)

Profit After Tax (Crore BDT)
300

200

100

0
2012 2013 2014 2015 2016

Figure 2: Turnover & Profit Graph

The financial performance of Marico Bangladesh has been very impressive. It has been
consistently improving its margin. Turnover is increasing over the period. Although sales fall
in 2016, its EBITDA margin increased in the same year proving operating excellence. On
average 85% of its revenue is contributed by its flagship brand ‘Parachute Hair Oil’.

3. Segmentation, Targeting and Positioning

3.1 Segmentation
Market Segmentation is identifying and categorizing of prospective buyers into groups that
have common needs and will respond similarly to a marketing action. There are many
reasons that explain market segmentation. One of the major reasons marketers segment
market is because they can create custom marketing mix for each segment and cater them
accordingly.

3.1.1 Current Segmentation

Parachute currently segment its market based on three factors.

Demographic Segmentation
Demographic segmentation divides the markets into groups based on variables such as age,
gender, family size, income, occupation, education, religion, race and nationality.
Demographic factors are the most popular bases for segmenting the consumer group. The
demographic variables that Parachute takes into account are:

• Socio Economic Class (Based on education and occupation)

 • Age
• Gender

Geographic Segmentation
Geographic segmentation refers to dividing a market into different geographical units such as
nations, states, regions, cities, or neighborhoods. This segment is divided into two classes:

• Urban area
• Rural area

Psychographic Segmentation
This segmentation approach involves an understanding of a consumer’s lifestyle, interests,
and opinions.The psychographic variables that Parachute takes into account are:

• Personality
• Lifestyle

3.1.2 Suggested Segmentation

For future, it is suggested that Parachute segment the market based on behavioral segment.
This segmentation will present it new potential target market that could be turned into
profitable ones.

Behavioral Segmentation:
In behavioral segmentation, buyers are divided into groups on the basis of their knowledge
of, attitude towards, use of, or response to a product. Segmentation could be done in the
following ways:

• User status

Sometimes the markets are segmented on the basis of user status, that is, on the basis of
non-user, ex-user, potential user, first-time user and regular user of the product.

• Usage rate:

Marketers can also segment market on basis of usage rate i.e. of light, medium and heavy
users. Marketers usually prefer to attract a heavy user the most since it is the most
profitable segment. This segmentation helps to vary promotional efforts accordingly.

• Loyalty status:

Buyers can be divided on the basis of their loyalty status—hardcore loyal (customers who
make repeat purchase), split loyal (consumers who are loyal to more than one brand),
shifting loyal (consumers who switch to one brand to another), and switchers (consumers
who are not brand loyal).
3.2 Targeting
Target marketing involves choosing segments that is most closely matched with the product
and offering and that could be served in the most efficient way by the company. Marketing
mix is designed based on the target market.

3.2.1 Current Targeting

Demographic Geographic Psychographic

Personality: Traditional,
self conscious, cultured,
Urban gregarious,
Gender: Female charmingTraditional,
Rural self conscious, cultured,
gregarious, charming

Socio economic Lifestyle: Working

class: All except and Non working
BOP women

Age: 15-45 years

In the demographic segment, Parachute has chosen the female segment aged between 15 to
45 years. This can be easily explained since it is a product that is mostly used by women of
this age. This targeting has been very succsessful. All the social classes except the bottom of
peramid has been chosen since hair care is needed by everyone alike.

In the geographic segment, both rural and urban area is being selected due to the fact that, it
is generalized low priced product that is used for regular use. Its demand is same both in rural
and urban aresa and also it is price insensitive.

In case of psychographic targeting, women are mostly cultured, traditional, self conscious,
gregarious etc are targeted since they are similar to the brand personality.

3.2.2 Suggested Targeting

• Gender: men
• Age: Girls ranging from 05-45 instead of 15-45 years
• Socio economic class: Include BOP
• Personality: Independent, confident, fearless

Based on the consumer behavior analysis discussed further, these new target markets have
been suggested. Inclusion of these target market may offer new growth opportunity to
Parachute. But before entering this target markets, research should be done comprehensively.

3.3 Positioning
It is said that once a brand is positioned, it is very difficult to re-position it without destroying
its credibility.
Parachute has always established itself as a natural product for healthy hair and has been
positioned as everyday use hair care products. This played beautifully to their benefit a few
years back when there were few competitors as it made the brand synonym to hair oil in
households more or less this has given more leverage and flexibility to the brand from the
start itself. Parachute always sticks to its core values and position of being a coconut hair oil
brand that offers purity and quality. The first thing that comes to our mind when we hear the
word ‘Parachute hair oil’ is pure coconut oil. Building on that credibility, Parachute keeps
pivoting around its position and modernizes its appeal according to the demand.

4. Analysis of Organization
4.1 Analysis of Marico Bangladesh
4.1.1 PESTEL Analysis
PESTLE analysis examines complications the company faces and the many external factors
Marico must abide by.

Political:
Marico is subject to the regulatory restrictions and guidelines pronounced by the Companies
Act 1994 and the Securities and Exchange Rules 1987. Keeping both internal policies and
regulatory framework in mind, MBL’s Code of Conduct persists to incorporate higher
standard of Governance practices and is always striving to enhance their current items in
accordance to the country’s laws and regulations. If they were unable to comply, the
company would face legal issues — civil and criminal — and risk fines. It could go so far
that those in charge could be imprisoned.

Economic:
During the year, the Bangladesh economic condition has been continually stable with an
increase in consumer and investor confidence in the country. The country has beenable to
consistently achieve +6% growth in GDP and is likely to clock a 7%+ growth in this year
following last year (2016). While a lot of infrastructure mega projects are in the pipeline,
implementation has been slow which may resist stronger economic growth. Other positives
for the economy include decreasing inflation levels, record high foreign reserves, healthy
inward remittances and growth in exports. The capital market seems to have come out of its
sluggishenvironment and has been performing better, attracting interests from foreign
investors throughout the year with the DSEX on the higher side. The improvements in the
macro-economic scenario along with relative calmness in the socio-political atmosphere are
strong positives.

Although their cash inflow is not directly affected by fluctuations in the exchange rate, since
their products are sold only in the domestic market exchange rate risk still relates to the core
business of MNCs, since most import materials from abroad in foreign currency (mostly US
dollar and Indian Rupee). Over the years, they have taken endeavors to localize their
production and to source raw materials from domestic suppliers wherever possible.
Consistent forecasting of exchange rate movement and position building on their import
volume through optimum exchange rate dynamics is the key in minimizing their exchange
rate risks. The business by large is insulated of the risk except for Copra and Petroleum based
materials.

Social:
Demand can be adversely affected by a shift in consumer preferences. Given the explosion
and ever growing popularity of social media, the speed of such a shift could be very swift.
Marico invests in consumer insights to adapt to changing preferences.

Technological:
Marico has developed business verticals and strengthened its foundation through the
development of sharper IT and Analytics. During the year, the company continued the
journey of transforming its GTM (Google Tag Manager) strategy and made progress on
setting the right structure for this journey. (Source
http://marico.com/bangladesh/investors/faq)

Legal:
As a consumer goods company, Marico is subjected to many laws and legalities. Each brand
and location of stores are subject to follow copyright, product safety, laws regarding health
and safety of employees, and taxes — international and regional. Marico has invested in
compliance systems and processes for ensuring that its functions and units are aware of the
laws and regulations to comply with and that monitoring mechanism are put in place to
ensure compliance.

Environmental:
Marico promotes sustainable and renewable resources. Their products are designed to be safe
for consumers in every location they distribute. The materials are eco-friendly, from
packaging to design. They want to be seen as an environmentally friendly organization and
have worked for nearly the last decade to do so.
Being ‘Green’ has been an integral part of Marico’s Culture. Their ‘Think Fresh, Be Green”
initiative is aimed at spreading environmental awareness among their members and business
associates. From the initial steps like conserving paper, power and water resources, they are
integrating their ‘green’ philosophy into their core organization processes. Their light-weight
bottle packaging makes it eco-friendly. Regular energy audits are conducted at their factories
to help them reduce consumptions. Their green initiatives have won those awards and
accolades and also helped them reduce the carbon footprint and improve their bottom line. In
2011-12, they started their journey towards sustainability through putting a Sustainability
Management Framework in place. The company has engaged CII as a knowledge partner for
preparing the Sustainability report and setting up a Sustainability Management Framework.
(Source - http://marico.com/bangladesh/investors/faq)

4.1.2 BCG Matrix

Cash cows
The cash cows are those products that are seen as a highly productive item for a company as
it generates high revenue. Since the product has a high demand, the high number of sales
enables the company to gain significant financial benefit from the cash cows. These items
have established a strong hold in the market therefore does not need a great deal of resource
investment apart from the usual marketing and promotional activities.

Parachute has continued to be the market leader in the Branded Coconut oil category with a
household penetration of 80%. 8 out of 10 households of our country use Parachute. The
brand health remains stronger than ever with high score in Key Brand Image Parameters.
However with such a high market share, headroom for growth for the brand is low. In
financial year 2017, the volume remained flat on Parachute Coconut Oil. Hence it can be
considered as the cash cow. (Source – MBL Annual Report 2017)

Stars

The star product is an item that is making important contribution to the financial strength of
an organization. At the same time, the product has opportunity for further growth as the
demand for the item is on a rise. This could help the company to increase its market share
which would make the star a cash cow in the subsequent years. Growth potential in market
share is one of the key identifying factors of a star product, along with the high sales it
generates for an organization.
They have experienced a strong growth in their Value Added Hair Oil (VAHO) portfolio
attributable to the brands: Parachute Advanced Beli phool, Parachute Advanced Extra Care
and Nihar Shanti Badam Amla. In 2nd quarter of financial year 2017, the success of the
company has been a 20% volume growth in their VAHO category and achieving a clear 2 nd
position in the VAHO market which contributed to the overall 7% volume growth of the
company. Overall, the non-coconut oil portfolio grew by 10% in constant currency terms in
financial year 2017. Parachute Advanced continued to be lauded as one of the best brands in
the country and was once again awarded as one of the most trusted brands of Bangladesh by
the Bangladesh Brand Forum in 2016. Parachute advanced owns the Best Hair Oil Brand
2016 and the 8th Best Brand Award by Bangladesh Brand Forum. Until now the VAHO
portfolio attained a volume market share of 18% and 14% growth in revenue. (Source – MBL
Annual Report 2017)
MBL’s signature brand in hair color segment, Hair Code, continues to hold onto its
leadership position in Powder colors. It has been successful since it was the first herbal hair
color product with no side effects. Its unique marketing communication is also a driving
factor in its success.
Set Wet Hair Gels are one of the top choices of hair styling products for the Bangladeshi
youth. They are undertaking new in-depth consumer research, new marketing concept and
relevant tagline streamlining future promotional strategy as major brand restaging exercises
to further their growth in the upcoming year.
 Category Contribution in Hair Care
6%

17% Parachute
VAHO
77% Others

Figure 3: Category Contribution

Question Marks
The question mark as the name suggests includes those products that are not financially
contributing at the moment. They do have some potential to grow and create an increased
demand in the market. However the present status of the products denotes an uncertain future
performance. The question marks, if able to gain significant market share could be classified
as stars, but continuation with the same level of financial input, these products can’t be
identified as the leading source of financial strength of a firm.
The male grooming segment is growing in double digits. There are more than 200 competitor
brands in this segment and MBL has been trying to ride on this growth with its product – Set
Wet Deodorants. It has been re-launched with its new packaging and new tagline to better
resonate with the continuously evolving youth.
Parachute Advanced Body Lotion is trying to explore the high potential lotion segment. In
2016, they localized the manufacture of this product which is a strong shift from import
dependency and also generating savings for the brand. They received positive feedback and
generated awareness for the brand through TV commercials, Press and PR.
Saffola Active which falls under the edible oil market is growing though it has a very low
market share. There is a growing number of health conscious consumers which is a good sign
for them. They shifted their distribution channels from modern trade to selected general trade
outlets. Saffola is still to drive significant sales and there lies a big question on whether MBL
should continue their operations in this category.

Underdeveloped
The products that are placed in this category of BCG Matrix are poorly performing items
being manufactured by an organization. Due to the poor financial gains originating from the
sale of these items, the firm considers them as a liability, rather than a source of growth. The
poor financial performance necessitates the decision to stop production of these items and
save the resources to be invested in production of some other profitable ventures.

Parachute Advanced Ayurvedic Gold Hair oil which was launched one and a half years is yet
to drive significant sales though the initial customer feedback has been positive. It is trying to
build awareness through its presence in the digital and press platforms. Parachute Advanced
Cooling Hair Oil is a new product of Marico which also lies in the underdeveloped quadrant
of BCG Matrix.

Orphan
The performance of products in this category is declining in every passing year. The
declining sales of this product can be detrimental to the overall financial performance of the
company. The company should monitor the sales of this product for another one or two years
redesigning the model and if it declines further than they should decide to stop the operation.

Livon which actually falls under the hair serum category rather than the hair oil category has
been performing badly since its launch. MBL has tried different strategies and marketing
communications to drive its sales. Though it created enough brand awareness among
consumers, the sales has been declining in every passing year. The hair serum category is still
immature inBangladesh and most of the consumers are still inclined to using hair oil rather
than a hair serum. Saffola Masala Oats is also striving to generate sales through modern trade
and selected general trade outlets in Dhaka and Chittagong. Most of the consumers are not
accustomed to the health benefits of oat meals and thus this product has been unsuccessful till
now.

BCG Matrix

Relative Market Share

10%+
2. STARS 1. Question
marks

10%
Market Growth

3. Cash 4. Underdeveloped
Cows

0%

5. Orphan 6. Dead
-5%

10 1 0.1
Star- Parachute Advanced Beliphool, Parachute Advanced Extra Care, Parachute Advanced,
Hair Code, Set Wet Hair Gel.

Cash cow– Parachute coconut oil.

Question Mark– Saffola Active, Parachute Advanced Body Lotion.

Underdeveloped - Parachute Advanced Ayurvedic Gold Hair oil, Parachute Advanced

Cooling Hair Oil

Orphan– Livon, Saffola Masala Oats.

4.2 Analysis of Parachute

4.2.1 Analysis of Market and Competitors
The market of hair oil can be divided into loose and branded oil. The loose oil holds a very
small portion. Loose hair oil cannot be even found in urban areas anymore. Rural areas in
Mymensingh, Rajshahi, Khulna and other northern side use it mostly. It occupies around 5%
only in the total market. Its price is very cheap compared to branded hair oil and comparison
can be somewhat difficult. On the other hand, branded hair oil holds 95% of the market share.
80% of the branded oil is occupied by Parachute alone.

Market Share in Total Hair Oil Market

Loose oil
Other branded oil
Parachute

Figure 4: Market share in total hair oil market

The market size of Parachute is 1600 crore BDT. Its growth rate in 2017 is 7%. It grew at 4%
in 2016 as well. In the branded hair oil market, its major competitors are:

• Jui
• Sesa
• Vaika
• Kumarika
• Cute
• Tibet
 • Hash Marka

The market share of Parachute is 80%. The market share on average of Jui is 10%, Cute 5%,
Kumarika 3%. The rest is taken by other brands.

Market Share in Branded Hair Oil

Parachute
Jui
Cute
Kumarika
Others

Figure 5: Market share in branded hair oil market

4.2.2 SWOT Analysis

Strengths
Brand loyalty: Parachute has immense loyalty in the urban and rural sections of Bangladesh.
It enjoys tremendous equity and trust with every passing generation. It has stayed in the local
market for many years and thus stationed deeply in people’s mind. There is strong preference
for it over other substitutes in the mind of a number of consumers.

Strong differentiation: It portrays itself as pure coconut oil and positioned on the platform
of purity. The brand kept itself relevant and differentiated through a slew of initiatives in
packaging and promotions. These innovations have ensured protection of existing franchise,
propelled further penetration, enabling conversion of loose oil consumers to packaged
Parachute Coconut Oil.

Innovative marketing communication: Innovative commercials and promotions relevant

with the current generation is one of the main reasons behind its success. Parachute has been
portraying to the public that oiling is an integral part of our culture which leads back to
generations. Initially they communicated the inconveniences of open oil and the advantages
of using the plastic bottle which is easy to use and looks modern too. With time the
communication has changed. Now they portray modern, carefree, independent lifestyle of
women, girls excelling in their career – showcasing the aspirations of women.

Market share:Parachutehas continued to be the benchmark as one of the strongest brands in

Bangladesh with 100% awareness, a household penetration of 80% and the highest reach
nationally in the FMCG industry. With more than 8 out of 10 Bangladeshi households using
Parachute, the brand’s health remains stronger than ever with high scores in key Brand Image
Parameters. (Source: MBL Annual Report 2017).
Barrier to new entrants: Barrier to entry in the coconut hair oil sector is very high. The
years of experience, technical know-how, specific formula and trade secrets involved in
making this oil cannot be replicated. The manufacturing process extends back to the root
level. Parachute communicates with the farmers involved in plantation and nurturing of
coconut trees and trains them accordingly. This is why other companies won’t be able to
obtain the level of viscosity of oil Parachute has. New companies won’t be able to ensure all
these qualities while offering at a competitive price to penetrate the market.

Distribution Network: Parachute is rated as one of the most highly distributed brands of the
country. The company touches the lives of 1 out of every 2 Bangladeshis through a strong
distribution network that reaches about 843,000 outlets throughout the country (“MBL
Annual Report,” n.d.) With a deep understanding of consumer insights, they continued to
drive innovations in operations and further fortified their Go-to-Market strategies to tap into
various channels of distribution.

PLANTS

DEPOTS

SUPER DISTRIBUTOR
DISTRIBUTOR

RETAILER STOCKIST

URBAN RETAILER
CONSUMER

RURAL CONSUMER

Weaknesses
Urban lifestyle: Coconut hair oil usually doesn’t fit in the urban lifestyle. Girls mostly living
in the urban areas want their hair to look shinythese days which hair oil cannot
provide.Parachute hair oil is sticky. Hence it doesn’t appeal to the modern woman.

Limited to nourishment and care: Parachute focuses on nourishment and care. It doesn’t
promise to make one stylish in any one of its commercials. Moreover it appeals more to the
old-fashioned women or ones living in the rural areas only. Definition of good hair has
changed among urban women and they want more than just nourishment and care.
 Lack of geographical coverage: Sometimes the product cannot reach in the definite
geographical area because of lack of communication.

Limited decision taking capacity: The Company exists under the rules and regulation of
agricultural marketing company limited. So it cannot take any instant decision to adjust with
the sudden market changes.

Opportunities

Introduce Men’s Hair oil: They can appeal to the men by launching men’s hair oil. Men
these days are conscious about their hair than ever. They can introduce a product that can
help nourish the hair as well as make it shiny. Hair oil which is non-greasy, easily-absorbable
and has a subtle masculine fragrance will definitely grab every man’s attention.

Global Expansion: Parachute is premium grade hair oil and the brand can reach out to a
wider audience through global expansion. On the other hand through the production of more
of these good products there is a great opportunity to attract the foreign investors.

Targeting Netizens: They can target the netizens by increasing brand awareness in digital
media using big data analytics.

1. Cost reduction- Big data technologies can bring significant cost advantages when it comes
to storing large amounts of data – plus they can identify more efficient ways of doing
business.
2. Faster, better decision making- With the speed in-memory analytics, combined with the
ability to analyze new sources of data, they will be able to analyze information immediately –
and make decisions based on what they’ve learned.
3. New products - With the ability to gauge customer needs and satisfaction through analytics
comes the power to give customers what they want. Parachute can definitely leverage that.

Parachute can measure the success of previous campaigns and provide insights into the ROI
of past efforts through predictive analytics. Interpretation of huge volumes of data generated
by analytics can help them predict future performances and then use that data to make
educated guesses about how future campaigns will perform. Though it’s a quite a challenging
task, it can help them to accomplish a handful of important sales driving tasks.
Threats

Foreign competitors: Foreign hair oil brands such as Emami, Kumarika, Vatika have
entered the market and doing pretty well. This can affect its business.

Awareness about the advantages of using non-coconut oil: Parachute as a brand is

positioned as a coconut oil. Competitor brands are communicating the advantages of using
oils that are made of Badam, mustard, amla, etc.
5.Consumer Behavior Analysis
5.1 What is Consumer Behavior
If a company wants to be commercially successful, it is imperative that marketers understand
consumer behavior. Consumer behavior can be explained as the analysis of how, when, what
and why people buy. Consumer behavior can be understood as: "The decision process and
physical activity individuals engage in when evaluating, acquiring, using, or disposing of
goods and services." (Loudon & Della Bitta, 1980) The relationship between consumer
behavior and marketing strategy is beyond important because the successful execution of
companies’ marketing strategies relies on managers’ understandings of consumer behavior.
The study of customer behavior is based on the purchasing behavior of buyers. Research has
shown that consumer behavior is difficult to predict, even for experts in the field.
(Armstrong, 1991) Consumer behavior involves the psychological processes that consumers
pass as they recognize their needs, process information, findsolution, make purchase
decisions, and formulate post purchase decision.Consumer behavior research attempts to
understand the buyer decision-making process, both individually and collectively. It studies
how demographic, psychographic factors influence and evolve customer need and want.
Consumer behavior research allows for improved understanding and forecasting concerning
not only the subject of purchases but also purchasing motives and purchasing frequency.
(Schiffman & Kanuk, n.d.) One of the current fundamental assumptions in consumer
behavior research is that individuals often purchase products for their subjectively perceived
values rather than their primary functions(Stávková, Stejskal, & Toufarova, 2008) . This does
not mean that the products’ basic functions are not important, but that the contemporary role
of a product is more than its basic use-value (Solomon, 2004).

Problem Information Alternative Purchase Postpurchase

Recognition Search Decision Evaluation
Evaluation
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In sum, modern marketers first try to study the pre purchase tunnel customers go through,
what factors influences them, what changes have taken place and then design their product
and marketing mix accordingly. Without following this pattern, it is not possible to satisfy
customer need and keep up with the competition. It is well known fact that the success of any
business organization stems from company’s ability to understand and influence consumer
behavior. This study is needed to consider when designing and implementing marketing
programs. Failure to understand the dynamic buyer behavior and improper allocation and
coordination of resources will lead the organization to great losses. The better marketers are
at understanding consumer behavior, the more successful they will be at influencing
consumers‟ purchase behavior (Kurti Shah 2009).
5.2 Factors Influencing Consumer Behavior
Factors influencing consumer behavior can be categorized under four sections, such as:

1. CULTURE

The influence of culture on the purchasing behavior varies from country to country.
Therefore sellers have to be very careful in the analysis of the culture of different groups,
regions or even countries.

• Subculture

Each culture has different subcultures, such as religions, nationalities, geographical regions,
racial, etc. Marketers need to identify these different groups and understand how the feature
of this group affects the choices that a consumer makes. For example, the culture of
Bangladesh and USA is different. Due to this cultural difference, consumer buying pattern
will be different in these two countries.

• Social Class

Every society has some kind of social class is important for marketing because the buying
behavior of people in a particular social class is similar. Thus marketing activities could be
adapted to different social classes. Here we should note that social class is not only
determined by income, but there are several other factors such as wealth, education,
occupation etc.

2. SOCIAL FACTORS

Social factors also influence the purchasing behavior of consumers. Social factors are: the
reference groups, family, the role and status.

• Reference groups

Reference groups have the potential for the formation of an attitude or behavior of the
individual. The impact of reference groups vary across products and brands. For example, if
the product is visible as clothing, shoes, car etc., the influence of reference groups will be
high.

• Family

Buyer behavior is strongly influenced by a family member. So vendors are trying to find the
roles and influence of the husband, wife and children. If the decision to purchase a particular
product is influenced by the wife, then sellers will try to target women in their advertisement.

3. PERSONAL FACTORS

Personal factors may also affect consumer behavior. Some of the important factors that
influence personal buying behavior are: lifestyle, economic status, occupation, age,
personality and self-esteem.
• Age

Age and life cycle have a potential impact on the purchasing behavior of consumers. It is
obvious that consumers change the purchase of goods and services over time. Family life
cycle consists of different stages as young singles, married couples, unmarried couples etc
that help marketers to develop suitable products for each stage.

• Economic situation

Economic situation of the consumer has a great influence on their buying behavior. If income
and savings a customer is high, then going to buy more expensive products. Moreover, a
person with low income and savings buy cheap products.

• Personality

Personality changes from person to person, time to time and place to place. Therefore, it can
greatly influence the buying behavior of customers. Different personalities have different
characteristics, such as dominance, aggression, confidence etc. that may be useful to
determine the behavior of consumers to the product or service.

4. PSYCHOLOGICAL FACTORS

There are four major psychological factors that affect the purchasing behavior of consumers.
These are: perception, motivation, learning, beliefs and attitudes.

• Motivation

The level of motivation also affects the purchasing behavior of customers. Each person has
different needs, such as physiological needs, biological needs, social needs, etc. The nature of
the requirements is that some are more urgent, while others are less pressing. Therefore, a
need becomes a motive when it is most urgent to lead the individual to seek satisfaction.

• Perception

There are three different perceptual processes which are selective attention, selective
distortion and selective retention. In the case of selective attention, sellers try to attract the
attention of the customer. Whereas in case of selective distortion, customers try to interpret
the information in a way that supports what customers already believe. Similarly, in the case
of selective retention, marketers try to retain information that supports their beliefs.

• Beliefs and Attitudes

Client has specific beliefs and attitudes towards different products. Because such beliefs and
attitudes shape the brand image and affect consumer buying behavior so traders are interested
in them. Marketers can change beliefs and attitudes of customers with special campaigns in
this regard.
5.3 Consumer Behavior Analysis for Parachute
Changes in consumer behavior can be studied from four different dimensions. These are:

• Demographics
• Personality
• Personal Values
• Lifestyle

Emerging trends in these dimensions can influence the future demand, growth, market share
and consumer base for Parachute.

5.3.1 Demographic Changes Affecting Parachute

Demography is the size, structure and distribution of population. It includes factors like
structure of market, economic resource, geographic factors etc. Economic factors take into
consideration the ability to buy, income level, spending pattern etc. Geographic factors take
into consideration where people live and socio economic scenario of that region. Analyzing
the current scenario for Parachute, it can be said that, economic and geographic factors do not
affect it very much. Parachute is used by people residing in both rural and urban area alike.
Also, economic factors do not affect it much since it’s a regular use product that is priced
very marginally.

But demographic factor may affect Parachute in future.

Figure 6: Population projection of Bangladesh

According to research, a change in age distribution is on its way to Bangladesh. By the time
2020, largest portion of the population will be occupied by Generation Y (born in 1980-1995)
and young child aged between 5-15 years. This change presents both opportunities and
obstacles for Parachute as a brand.

One specific characteristic of Generation Y is they have greater need for peer acceptance.
They are more likely to switch brands. They are not brand loyal. So, it may be difficult for
Parachute to hold on to these customers who belong to Generation Y. It maybe specially
difficult since number of competitors are rising and Generaion Y likes to explore and
experiment with different choices.

From the figure above, it is also evident that the children aged between 5-15 years will also
have a larger proportion in population in future. This means the market for young children
will rise in future. This can be an opportunity for a marketer. This children do need hair care
too. They are going out, attending school and coaching center, exposed to the dust in the
environment. So, hair care and nourishment is necessary. But, there is no hair oil brand
designed specifically for this segment of market. So, there is a market that will also rise in
future but its need is not being catered. So, there lies an opportunity for Parachute.

5.3.2 Personality Changes Affecting Parachute

Consumers purchase products to reflect their personality. The type of houses, clothes,
furniture, appliances, automobiles, jewelry people buy may reflect their personalities. It is
seen that people of higher class tend to purchase highly priced products. Marketers therefore
develop their products and advertising and promotional campaigns keeping in mind the
personality types of their target customers.

The personality traits associated with Parachute are traditional, humble, cultured etc. This
comes from the fact that applying coconut oil for hair nourishment is somewhat a tradition of
this sub-continent. The promotion done by Parachute also reflects these kinds of attributes.
Parachute is generally thought of a brand that connects with the simple lives of people;
people who are caring and conscious about nourishment. So, the people who most likely
associate themselves with these kinds of traits may attach themselves with the brand.

But recently, a large share of its target market is women, is getting out of these traits. There
has been a shift in personality.

Figure 7: Modern ladies of Bangladesh

Girls have now associated themselves with traits like “independent”, “outspoken”,
“confident” etc. They may not be able to or would like to associate themselves with a brand
like Parachute that has a traditional brand personality. These girls have a tendency to come
out of traditional offerings and explore newer things. So, they may become reluctant to use
coconut hair oil for hair care. This change in attitude may present difficulties for Parachute as
it would affect their market demand and future growth. To overcome this challenge, what
Parachute could do is change their brand personality. It would require intense brand
promotion. The new brand identity should be such that girls coming from all kinds of
personalities should be able to associate themselves with the product. The TVC should be
designed in such a way that each and every kind of girl be able to identify herself with the
product.

5.3.3 Lifestyle Changes Affecting Parachute

Needless to say, our lifestyle has shifted dramatically. Women joining workforce, nuclear
family, western culture adoption all these factors has changed the way we lead our lives. As a
result, our consumption pattern has also evolved. In the context of Parachute, women are now
more likely to use different hair serum for hair nourishment. Usage of hair oil may undergo
some changes. Hair serum is a modern production that goes with the new lifestyle. No one
nowadays likes sticky hair and strong smell that is associated with coconut hair oil. Hair
serums are light weighted but take care of hair at the same time. Women are also becoming
more concerned about their health and skin care and rushing themselves to beauty salon and
availing hair spa and all hair care treatments. This is the new trend of modern lifestyle
prevailing in the urban areas. Peer pressure is a big influencing factor and determines to an
extent what the consumer behavior will be. Change in lifestyle has changed not only product
choice but also consumption pattern and level of usage. People now hardly have the time to
sit at the end of the day and apply coconut oil in hair. Our schedules are jam packed and we
have shifted our priorities to social networking than to apply hair oil for own and family
member’s hair nourishment.

Another trend that is prominent right now is that, men are now more concerned about skin
and hair care. This can be proved by the increasing popularity of products like “Fair and
Handsome”. So, there is a scope for Parachute to launch ‘Parachute Hair Oil for Men’.
Hair care for men is as important as women. But, there is no hair oil designed for them. Men
face the fall problem as much as women do, in some cases even more. So, there is a need
which is not being catered right now. This scenario presents immense opportunities for
Parachute. Parachute hair oil is already an established brand for hair oil. Its credibility is
already earned. It has got a competitive advantage in this sector. It already has the equipment,
production facility, R&D setup, presence in media and mindshare. The current target market
of Parachute does not include men. But men constitute more than half of the total market. If
men are included in the target market, the revenue for Parachute could go super high.

But is this a feasible idea? What is the probability that if Parachute launches a separate line
for men, it will be accepted? To gauge the market perception, especially the men, a survey
has been conducted. 120 men aged from 16-50 took part and expressed their opinion on this
matter.

Among the 120 respondents,

only 11.7% said they use
hair oil. But, the 22.5% who
sometimes uses the hair oil
is also potential customer.

The interesting revelation is that,

26.6% people who do not use hair
oil currently would like to start
using if hair oil is designed
especially for men. The larger
chunk (48.6%), however, who are
not sure yet, could be turned into
customer through proper
promotion.

Almost 73% of the respondents agreed

that hair oil should be produced
separately for men which justifies our
proposition for launching ‘Parachute
Hair Oil for Men’.
 The most relevant question is
whether people want Parachute
to launch men hair oil. Almost
half of the respondents want
Parachute to come up with hair
oil for men. 22.5% are not sure
if they would like to go with it or
not.

The final question will help to understand why actually men use hair oil and which benefit is
most needed by them. This will help to design and innovate the product and increase its
acceptance. 61% people need hair oil to prevent hair fall. For 17.5% hair shining is most
important. 10.8% want hair oil for hair growth. 5% people are looking for hair cooling
solution. This may help Parachute to design its product and focus on which solution to
provide.

6. Marketing Mix
Marketing mix is nothing about a combination that marketer designs for the target market that
includes the product mix that appeals the target market, price that is favorable for both
marketer and customer, promotion that attracts the target and placing that makes the product
available to customers. The difficult part is doing this well, as one needs to know every
aspect of his or her business plan. The marketing mix is predominately associated with the
4P’s of marketing and the 7P’s of service marketing.

"Parachute" is the epitome of "pure coconut oil” in Bangladesh. Made from the finest
coconuts in automated machines, Parachute Coconut Oil currently leads the branded coconut
oil market of the country. With its newest avatar in the true blue bottle, the oil is now
available in more than 8 lac retail outlets catering to people’s needs across the nation. Based
on the consumer behavior analysis, suggestions regarding the new marketing mix strategies
for the Parachute Coconut Oil have been discussed as follows:

6.1 Product
The authors of the paper “Marketing Explanatory Dictionary” define product policy as a
decision adopted by manufacturing or commercial companies regarding the size, structure
and evolution of the range of goods and services. Product policy is often compared with “the
heart of marketing”.

Parachute has added different kinds of oil to its product line that serve different needs. Such
as hair fall therapy, hair cooling, extra nourishment, light fragrance etc.

Figure 8: Parachute portfolio

But we suggest the inclusion of the following products as well

• New product line for men

• New product line for young children aged between 5-15 years

The introduction of hair oil for children can advantage of the fact that, parents do the
shopping for children and most of the times, mothers. Parachute has already established itself
in that market. Parachute is already known for its pure quality. It does not need to prove its
credibility for the new product from the scratch. Parents especially mothers are most likely to
choose Parachute coconut oil which is known as the pure coconut oil for their children
compared to any other chemical product.

6.2 Price
Price is a market instrument and an index of the economic and social reality. Pricing is the
most important part in the strategy because it is the only factor that generates revenue.
Parachute hair oil is available in different sizes thereby providing all the options to its
customers. Parachute faces competition from Vatika, Jui, Gondhorajetc, but it still remains
the leader. It targets the rural along with the urban population. It currently is using mass
pricing strategy. Parachute starts price increase first among the market players and its
competitors follow it. Thus they initiate price wars. Customers are loyal to this product and
purchase this in spite of small increase in prices. Price insensitivity can be noticed here.
Parachute has a strong base of loyal customers. Presence of competitors does not really affect
this product. It has the highest market share. So we suggest that it can charge premium price
capitalizing on customer loyalty and brand equity.

6.3 Place
The placement is already very successful for Parachute given the fact that it has penetrated to
850000 stores in Bangladesh which is second largest after Lux which has access to 900000
retail stores. However, given the suggestion put forth, it would be wise to intensify placement
in urban areas more. Separate hair oil for men and children are more likely to be sold in urban
areas compared to rural areas. This is because urban dwellers have the income and interest to
appreciate more the idea of separate hair oil for men and children.

6.4 Promotion
Promotion is according to Brassington and Pettitt (2000) the direct way in which an
organization communicates the product or service to its target audiences. (Brassington &
Pettitt, 2000) have categorized the promotional tools into five main elements; advertising,
sales promotion, public relations, personnel selling, and direct marketing. Promotional
strategies enable firms to attract and retain customers thus increased growth in terms of return
on investments due to expanded client base (Kotler, 2007)

In the new marketing mix for Parachute, following factors should be considered:

• Women in urban areas often avail services like “hair fall treatment”, “head massage”
etc. These services often start with hair oiling. This is where Parachute comes in.
Parachute could develop a network of supply with these salons. If the salons use
Parachute in their services, brand visibility could increase. Women often take advice
from their hair stylists. If they see that the hair stylists use Parachute for hair
treatment, their loyalty will increase for Parachute.
• Women are the primary target of Parachute. Since Parachute has an established
network of loyal women customers, Parachute can use it to reach men in the family
for the promotion of its new hair oil for men. Women have a major stake in decision
making in domestic products. They can recommend men to use Parachute and
describe the benefits that they have received. Women can recommend it to husbands
and sisters can recommend it to brothers etc. Parachute can launch social media
campaign promoting “GENDER NO BAR” so that men can feel comfortable in
sharing their concerns which are camouflaged in a society where men are not
supposed to care about their external appearance.
• Parachute needs to refine its brand personality in such a way that women possessing
both traditional and modern outlook be able to attach themselves with it. Promotion
plays a great role in shaping brand personality. Brand personality is formed based on
what is communicated to people in its promotion. So, Parachute needs to shape its
promotion especially TVC to reflect its new personality.
• Parachute needs to maintain a strong presence in social media. In this digital age
where it is targeting people of all class, no media can be left alone. Lifestyle has
changed rapidly and now people read e-newspaper, watch less TV and browse more
 in internet. So, social media presence is also very important. By using big data
analytics, online communication can be made more effective.

7. Social dimensions:
7.1 CSR Activities:
Marico believes that economic value and social values are interlinked. An organization
creates economic value by creating social value- by playing a role in making a difference to
the lives of its key shareholders. Marico’s CSR policy is anchored on the core purpose of
“Make a Difference” to the lives of all its stakeholders to help them achieve their full
potential. Marico’s CSR activities include

Dhaka Ahsania Mission-Marico Children’s Learning Center (DAM-MARICO CLC)

As part of their continued efforts to create a positive lasting impact on the society, Marico has
recently formed a partnership with DAM (Dhaka Ahsania Mission) to bring the light of
education to underprivileged communities. Through this partnership, they will provide free
access to quality education to out-of-school children who unfortunately had to drop out of
mainstream schooling due to life’s hardships. This partnership will build and operate 75
Children Learning Centers, thereby providing education to 3,000 out of school children in the
MelandahUpazila of Jamalpur district, which has historically suffered from very low literacy
rate. (“Marico – make a difference,” n.d.)

Dhaka Ahsania Mission-Marico Children learning Center (DAM-MARICO CLC) was a three
year Project which stared from October 01, 2014 and ended in September 30, 2017.

Besides; Marico in involved in various CSR activities in India. Some of these are –

Marico Jolgaon ‘Every Drop Counts’:

Essay Competition arranged by Marico India in order to raise awareness among the young
generation regarding the misuse of water.

Smile:

The Marico office organized a CSR event called "Smile" - A Day of Sharing Joy and
Happiness for cancer patients (children). The basic intent of this was to enable Marico
members to spend a few hours with these kids, bring them cheer, happiness, smiles.

Free Eye and Dental Checkup camp:

Marico Dehradun organized a free Eye Check-up Camp. This was for members, nearby
villagers and business associates. More than 100 people benefited out of it. Two free Dental
Check-up camp's were organized by Marico Dehradun.

Some other CSR activities include:

 ➢ Blood donation camp
➢ Supporting Children’s education by Marico Pondichery
➢ Helping Local Fire and Police station by Marico Pondichery
➢ Helping Local Government Schools
➢ Water Cooler donation

7.2 BOP Inclusion

The Bottom of the Pyramid (BOP) is a socio-economic concept that allows us to group a vast
segment; in excess of about four billion of the world’s poorest citizens constituting an
invisible and underserved market blocked by challenging barriers that prevent them from
realizing their human potential for their own benefit, those of their families, and that of
society's at large.

Like many large companies, Marico has also excluded this huge potential market due to
different barriers.

➢ Higher Distribution Cost

➢ Difficulty in Market Penetration and Promotion
➢ Local Knowledge and Trust
➢ Mismatched priorities
➢ Difficult to predict demand etc.

However, if these barriers can be overcome, Marico can take huge advantage of this large
Market with latent demand for their product. The strategies they can undertake to capture this
market –

Shape Aspirations:

The first task is to reach out to this underprivileged group of people and make these people
desire the product. For this they can go for promotional campaigns in remote areas and make
the BOP people realize how Parachute is going to add value to their lives.

Tailor Local Solutions:

Marico must find out ways to satisfy specific needs of BOP customers and to provide their
product keeping the buying power of the consumers in mind. They can use the technique of
Co creation and go for customer driven innovation by talking to the locals. One way to enter
this market is through introducing mini packs or sachets. Many of the companies have
already launched their oil products in sachets. However, a more fitting way to lower cost will
be through eliminating the whole packaging cost. The poorer section already has bottles or
containers at their disposal. So all Marico needs to do is to find a way to fill those bottles or
tin cans. Using containers similar to that of water filters is an effective way to deliver their
product to these customers.

Increase Buying Power:

Buying power of the BOP customer base can be increased by hiring locals for distributing
their product. In that way, a more effective distribution channel can be set up as well as
buying power of the consumers will also increase.

Improve Access:
Strong links to markets for poor customers are essential for effective distribution of any
product. Improving these links creates a virtuous circle by boosting productivity, increasing
incomes. Marico needs to arrange ways so that Parachute is readily available to these
customers and easy to access.

7.3 Quadruple Bottom Line

The concept of Quadruple Bottom Line is very important for the sustainability of any Brand.
The four Elements of the Quadruple Bottom Line are:

• Prosperity

• Planet

• Public

• Partnership

Prosperity:

Prosperity means adaptive innovation i.e. adaptive learning and change; trial and error risk
taking and discovery in all aspects. That is identifying specific needs of the consumers and
trying to implement newer ways to improve the product. It is important to bring products on a
trial and error basis and discard the product that fails to fulfill customer needs. Parachute for
example brought a product named ‘Parachute Advanced Ayurvedic Gold Hair Oil’ for hair
fall therapy which was comparatively costlier and had a foul smell. So, it was not very
popular among the customer base. Parachute immediately dropped the product.

Planet:

The planet element of the bottom line focuses on the environment. Saving the ecosystem is
fundamental for any company in order to build a positive brand image. Innovation also plays
a key role in this dimension. One way Parachute can ensure the protection of environment is
through packaging using biodegradable materials. The company can take initiatives to build
public awareness, organize seminars and take steps like community tree plantation program
etc.

Public:

The core purpose of Marico is to ‘Make a Difference’. So, the brand is built on the Public
aspect of the bottom line. They want to make a difference to life of all their valued customers.
It means improving the quality of life for people i.e. health, vigor, wellbeing, flourishing etc.
The customer needs to realize that the product has added value to his/her life. By providing
hair care and nourishment treatments Parachute is connecting with its customer base with a
brand image built on purity.

Partnership:

The partnership aspect of the bottom line points at Co creation and customer driven
innovation. For achieving sustainability, it is imperative to make the conversion of innovation
from vertical to horizontal. Companies should take ideas from the market and commercialize
those ideas. An inclusive marketing approach enables more participation from the customers.
Parachute sees their customers as important value chain partners and they emphasize on the
needs and demands of their consumers for launching new products as well as promoting the
existing ones.

8. Brand Building Strategy

8.1 Uniqueness of the Brand
To determine the uniqueness of the brand and its relevance in future, it is necessary to
consider category identification. A market category is created by a common customer need
and aggregate buying power, which in turn, typically spawns (many) product solutions – each
of which form into differing groups, offering alternative ways to satisfy the customer need.

If we want to identify Parachute position, it needs to be started from the need which is hair
care therapy.

Need Hair Care

Want Shampoo Oil Conditioner

Demand Hair Shining

Hair fall
prevention
Hair Cooling Hair Growth Scalp Thrapy
Light
weighted

Parachute belongs to the hair oil category that serves the need of hair care by providing pure
coconut oil. Parachute has done quite good in its category. Its presence is doting and it is
serving the want by creating demand for different kinds of hair oil. It is maintaining its
uniqueness by continuously providing new kinds of oil to meet different want and this
uniqueness helps to beat the competitor. Except he hair cooling segment, it is leader in every
other segment. The ability to come up with a solution in different category while maintain its
superior quality has marked its uniqueness.

8.2 Sustainable brand through spirit share

Word of Mouth

Word-of-mouth advertising has immense importance in every business, as each happy

customer can steer dozens of new ones your way. And it's one of the most credible forms of
advertising because a person puts their reputation on the line every time they make a
recommendation and that person has nothing to gain but the appreciation of those who are
listening. It not only captures people’s interest, but as the name implies, it gets people talking.

In case of our product, the female market is a logical one to pursue. This target Market is the
one who works best as the company’s ambassadors. Females often share their opinions on
products and services and they make a purchasing decision based on the experience of
someone they know. They are a very sensitive group and need to be dealt carefully. A man’s
path to purchase is short and straight forward, a woman’s resembles a spiral, often going back
to previous steps to collect new information and to reassess whether moving to the next step
is the right choice. Not only do women research more, they also converse more about brands.
They seek out the opinions of their friends and family, and they are open to receiving
assistance from others. So once this target market is satisfied, they act as advocates of the
product.

In case of our country, our families tend to be more connected than other countries. In any
occasion or other events, there is a huge gathering among relatives and thus word of mouth is
very significant. Women are more confident about their choice when they buy a product.
They are more loyal and more inclined to recommend their choice to their community.

Giving customers a reason to share with others can skyrocket word-of-mouth marketing. Big
or small, people are always more willing and likely to do something if they receive some sort
of value in return. So Parachute can consider giving consumers a discount or free gift in
exchange for referrals for brand sustainability.

Again, it is sometimes very hard to penetrate some of the very distant rural places. In such
cases, they can use wall painting s or posters in schools where the female population is hard
to reach. This will also bolster the word-of-marketing strategy to a great extent.

At the end of the day, the easiest way to generate WOM marketing in this age of
digitalization is to offer a unique and share-worthy experience. If Parachute keeps on giving
consumers something memorable they can’t get anywhere else, they will definitely share it
with their friends and loved ones whether Parachute asks them or not.
8.3 Brand Management Strategies for the Future
Brand Management Strategies for the future

The brand management strategy of Parachute is continuously improving their products based
on the changing consumer needs. There are five key areas of transformation –

• Innovation,
• Go-to-market
• Digitization
• Cultural shift
• Value management.

These are the five areas where they can make themselves future ready and focus on for at
least the next three years.

Since parachute is an established brand, changing the product chemistry won’t bring any
significant results. They can bring biodegradable materials for packaging which will add
value to their brand image.

Innovation can be done in marketing and promotion to ensure sustainability of the brand.
Marketing communications relevant with the present generation is necessary to stay in the
leadership position.

The reason Parachute can’t appeal to the modern women is the stickiness of oil. They have
launched variants keeping their flagship product intact. If they can add that non-stickiness
feature in their flagship product without bringing any major changes in the product chemistry
and maintaining the other important features and viscosity of the product, the sales will go up
through the roof though there is very less headspace for growth for such an established brand.

They can launch more variants under Parachute Advanced according to needs of the
consumers. Before launching a new variant, they can do it on trial and error basis.

9. Conclusion
In the end, it can be concluded that recognizing consumer behavior, identifying the change of
pattern and taking measure in advance is the heart of keeping up with the dynamic change of
marketing. Changes in demographic, psychographic, personal values and lifestyle is
necessary to track down in order to satisfy changing needs of customers and asking them
away from competition. Parachute currently holds 85% share of the market. But it does not
mean it can take its customers as granted. By using big data analysis and observe changing
pattern in the society, Parachute can identify changes in consumer behavior. To address the
changes, it also needs to shift its target market and shape their marketing mix accordingly.
For the new product line new promotion should be set in motion. Inclusion of bottom of
pyramid in its target customer is another dynamic shift that it could do. Finally, all these
efforts will be in vain if proper steps are not taken to increase its spirit share and build a
sustainable brand for future.
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