Professional Documents
Culture Documents
Mcoml BB
Mcoml BB
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 12 successful
years in Bangladesh, with an ever-growing base of loyal consumers in October 2013. 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. The VAHO segment now consists of several popular brands such
Oil and Nihar Marico Bangladesh Limited also leads the powdered hair dye market with
the Hair Code brand.The company continued to diversify its portfolio with the introduction of
Saffola Active (a healthy edible oil) and Set Wet Deodorants in 2013. Our journey in Bangladesh
is as follow:
Incorporated in 1999
Launched Haircode Hair Dye in 2009 and achieved a market share of over 15% in its first
year
Started bottling at Mouchak, near Gazipur in 2002 and copra crushing manufacturing in
Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon
Launched Nihar shanty Badam amla and Hair Code Keshkala in 2014
BRANDS
The organization holds a number of household brands such as Parachute, Parachute Advanced,
Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive. In the
international market, Marico is represented by brands like Parachute, HairCode, Fiancée, Caivil,
Hercules, Black Chic, Code 10, Ingwe, X-Men and Thuan Phat. Within personal care, Marico
has been introducing premium products — from basic coconut oil to value added ones — and
now provides innovations such as serum and cream-based hair products to drive the portfolio.
VALUES
Our values guide our actions and how we behave in our everyday business. They have enabled
us to create a unique culture at Marico. Our values are the DNA of our organization, immersed in
every member across hierarchies and geographies
Consumer centric
Keeping consumer as the focus and a partner in creating and delivering solution
Global outlook
Sensitivity and adaptability to cultural diversity and learning from different cultures
Opportunity seeking
Identifying early opportunity signals in the environment to generate growth options
Excellence
Continuous improvement of performance standards and capability building for sustained long
term success
Bias for Action
Preference for quick thoughtful action as opposed to delayed action through analysis
TIMELINE
1974 – Harsh Mariwala envisioned a branded FMCG market for coconut and refined edible
oils in small consumer packs and sets up a national distribution network for Parachute
1990 – Marico was established in India
1991 – Marico launches Hair & Care, a non-sticky hair oil repositioning the market leader
through contemporary packaging. Sweekar sunflower oil goes national
1992 – 94 - Marico goes from being an exporter to international marketer – sets up its first
overseas office in Dubai
1994 – The year marks another innovation, Revive cold water starch makes starching cottons
more convenient for the consumer
1996 - Marico lists on the Indian Stock Exchanges
1999 – The company expands with its first overseas manufacturing facility in Bangladesh.
Marico acquires Mediker in the same year
2003 – Marico Innovation Foundation, responsible for executing the Corporate Social
Responsibility of Marico, was formed. In the same year Marico sets up copra collection
centers to procure directly from farmers increasing their margins, thereby improving their
lives and making a difference
2006 – Nihar enters the Marico fold
2006-7 - Marico casts footprint in Africa, acquires Fiancée and Hair Code in Egypt and
Caivil, Black Chic and Hercules in South Africa
2009 – Marico makes a public offering of equity in Bangladesh a first for one of its overseas
subsidiaries
2010 - The South East Asia journey commences with Code10 male grooming in Malaysia
and Derma Rx skin care solutions in Singapore. The year also marks the launch of Saffola
2011 - Parachute Advanced entered the skin-care category with the launch of Parachute
Advanced Body Lotion (PABL), another innovation by Marico. The year also marks the
launch of Parachute Gold hair cream in the Middle East market targeted to women which
today has great equity amongst the consumer. Marico strengthens its presence S.E. Asia
through a male grooming, skin care and food portfolio acquired in Vietnam in the same year
2012 – India's Gen Next gets styled by Marico as it launches its male grooming brand, Set
Wet
2017- Marico acquires South Africa's leading hair styling business – Isoplus; launches
Saffola Active Slimming Nutri-shake (marking entry into nutraceuticals category) and
2018 – Marico invests Revolutionary Fitness (Revofit); launches a new brand – True
Roots that delays hair greying and launches its first digital exclusive brand – Studio X;
2019 – Marico announces association with Kaya, to create a skincare sub-brand, Kaya Youth
COMPANY PROFILE
CATEGORY: Consumer products
MISSION: The Marico innovation foundation’s mission is to provide the nation with
first : a belief that innovation is possible and is the way to leapfrog India into the
1. Company shall develop, in parts of world beyond the Indian subcontinent a franchise
4. Company shall make brands available that contribute to healthy living through
products drawn from agriculture offered in natural or processed forms and services
5. Company shall offer brands that enhance the appeal and nourishment of hair and skin
through distinctive products and services based on goodness of coconut and other
natural substances.
PESTEL ANALYSIS
1. POLITICAL
2. ECONOMICAL
3. SOCIAL
Increase in disposable income and discretionary spending by the Indian middle class
segment
4. TECHNOLOGICAL
5. LEGAL
6. ENVIRONMENTAL
-
During 2017-18, Marico’s turnover of INR 63 billion through sales in India and other
The Asian nation business, accounting for seventy eight% of the revenues, markets
household brands added value to the lives of one in every three Indians.
Every month, over hundred and fifty five million consumer packs reach consumers
through a widespread distribution network of around four and half million outlets.
Its International business was twenty two% of the revenues, offers brands that are
localized to fulfill the lifestyle needs of the international consumers. It also exports
its products to markets in the Indian-sub continent such as Nepal, Bhutan & Sri
to now resulted in a healthy shareowner return of twenty sixth CAGR since listing in
1996.
Marico is not about being bought by the consumers but they add value to their lives
The Marico Innovation Foundation funds social enterprises and permits them with
It is this essence that is true to Marico’s culture and unique to its DNA. It is this
belief that everyone at Marico lives by and profits from every day. It is the spirit to
MAKE A DIFFERENCE.
SWOT ANALYSIS
1. STRENGTH
Strategy: Through the right set of strategies, Marico transformed the company from an
Indian company to a global brand by focusing on value-adding products.
Parachute: Marico owes a great deal of its success to coconut oil Parachute that made it
a household name and raised the trust and goodwill of consumers and stakeholders.
Diversification: Mostly Marico’s product lines have been diversifying at a very fast rate. In
the hair care category, the company has moved into categories like hair oil, hair creams,
anti-dandruff creams, shampoos, hair gels, and serums.
The brand Saffola that started off as edible oil nowadays has salt, flour additive, and even
oats. This appetite for diversification is resulting in the steep growth of the brands.
2. WEAKNESS
Failed Products: Marico has had a number of product failures like the Parachute Hot Oil or the
Saffola Snacks. These mistakes have proven to be costly for the company and have also made it
secure losses.
Unnecessary product launches: Marico always launches more than 1 product in market, but this
time they launched too many products in sectors making it difficult to focus and channelize
resources in it
Not been able to build a premium image: Marico has been able to release new product and
acquisition and gain a place in premium segment but it wasn’t successful as customers perceive
it as value brand. These new releases are proving to be costly in long run.
3. OPPORTUNITIES
New market growth: Marico’s attempt to expand in to emerging market like Bangladesh, Egypt
etc. instead of looking at established markets, where there is likelihood of steep growth in all
categories of FMCG.
4. THREAT
Facing the competition: Marico faces a lot of competition from companies like ITC, Nestle,
P&G, HUL, Nestle etc.
TOP MANAGEMENT
MARKETING
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 Middle East grew from 2% in 2002 to more than 20% by 2008
CHALLENGE
Marico was facing a data security risk. Its email policy restricted the size of attachments, which
was leading to difficulties across the company when employees tried to share large files with
clients. These challenges were leading some employees to risk sending confidential files from
their desktop and mobile devices through free consumer-grade solutions. The IT team knew that
they needed to find a solution with enterprise-grade security, which went beyond email
attachments, to keep data secure without impacting the productivity of its workers. Knowing that
it needed to take action and find a proper technology solution to solve its data security issue,
Marico reached out to Teqdis, a trusted technology distributor that provisions enterprises with
enhanced computing environments. “Marico needed a simple and secure mechanism for sharing
confidential files with partners,” said Jay Savoor, managing director at Teqdis. “Employees
today have the technical knowledge to find their own tools if a company doesn’t have what they
need, and that can leave data at risk. We knew we needed to deploy a solution for Marico that
was easy to use for employees, but that still had the robust security features the IT team
required.” To enhance the security and usability of any solution it chose, Marico required
something that would integrate with its Active Directory, so that all users could be authenticated,
as well as integrate with Microsoft Outlook. The IT team also wanted something that could
provide collaboration functionality from any device that an employee chose to use, which would
streamline the work they did with business partners and clients. “We didn’t want to alter our
employees’ workflow, so we needed a solution that would allow them to continue to send
content through their email, but in a more secure manner,” said Girish Rao, IT Head at Marico.
“At the same time, we knew that more and more employees were starting to work from their
FINANCIAL ANALYSIS
In 2005 the consolidated turnover of the company (inclusive of the turnover of its subsidiaries
and Sundari LLC) crossed the US$ 200 million mark as it ventured into new businesses and new
geographies. The revenues of the International Business Group, including the revenues of the
two subsidiaries in Bangladesh, crossed the US$ 20 million mark. On a standalone basis the
company has notched a sustained revenue growth up from US$ 130 million in 1999 to US$ 218
million in 2005, an impressive CAGR of 10 per cent. Raw / refined oils contribute nearly 70 per
cent to the revenue, hair oils contribute about 13 per cent, with the rest being contributed by
other products and services. The operating margin and net margin were 9.7 per cent and 7.7 per
cent respectively in the year 2005 having witnessed an increase over the previous 96 The market
shares of Marico's brands overseas have been rising over the years. Parachute coconut oil is the
market leader in Bangladesh with almost half the market share, while hair oils and hair care
products have been consolidating their share of the market. The company continued to strengthen
its position in the Bangladesh market, acquiring a soap brand Aromatic that had a 5 per cent
market share and annual sales of Taka 300 million (US$ 4.8 million).This complements Marico's
earlier acquisitions in Bangladesh of two soap brands, Camelia and Magnolia. Hair cream in the
Gulf is increasingly growing into a big brand. The acquisition of the Sundari range of beauty
products provides a huge opportunity to target the spa market, especially in the backdrop of the
backto-nature movement in the US and developed markets. Sundari products and treatments are
retailed in USA, Canada, UK, New Zealand, Spain, Philippines and Japan.They are available at
some of the leading spas in the US and other countries like Canyon Ranch, JW Marriott
StarrPass, Ritz Carlton Battery Park, Spatio Geneva, Chi Spa Madrid, Four Seasons - Maldives
and Langkawi, the Oberoi Mauritius, among others.
Saffola Fitify Gourmet is India’s first healthy Gourmet Breakfast to dinner range with plant
based superfood. It’s curated by chef Kunal Kapoor and nutritionists. It has 3 categories super
meal, super beverages and super breakfast. Super meal contains Hi protein meal soup and slim
meal shake,super beverages contains healthier green tea and green coffee, whereas super
breakfast contains superfood quinoa poha/upma and superfood millet upma/poha.
Green Coffee
Saffola FITTIFY Gourmet Green Coffee instant beverage mix has been created by nutritionists
and curated by chef Kunal Kapur. It is a health booster that is high in antioxidants and helps in
weight management. Unlike regular coffee, Green Coffee isn’t roasted and hence has 3X more
antioxidant power which is otherwise lost in the roasting process. It contains 50% CGA
(Chlorogenic acid), a powerful antioxidant known to provide several health benefits such as:
The Green Coffee is available in 5 flavours namely Classic, Classic Strong, Ginger Basil, Lemon
Mint and Lemongrass Lavender.Superfood Moringa Green Tea Saffola FITTIFY Gourmet –
Superfood Moringa Green Tea is scientifically formulated by nutritionists and carefully curated
by chef Kunal Kapur – to give you all the benefits of Green Tea combined with the superfood
Moringa. Moringa (leaves of the drumstick plant) is a nutrition powerhouse. They are power
packed with vitamins and minerals. It is a rich source of protein, iron, calcium and vitamin C and
has antioxidant properties. It helps boost bone and joint health.
Green Tea
Healthier green tea contains super food Moringa which is a nutrition powerhouse.
Its USDA organic and India organic certified.
It contains pyramid tea bag for a fresher purer taste.
It contains 17 times calcium of milk, 8 times iron of spinach,1.5 times protein of dal,7 times
vitamin of plum.
It helps to manage your weight, helps to regulate metabolism and helps to support
immunity.
It contains 6 different gourmets Flavour: Lemongrass, classic, royal kahwa, honey lemon,
jasmine, and moroccon mint.
The 15 sachet box is available for Rs 220.
Quinoa Poha/Upma
It contains 50% and 80% more protein than regular poha and upma respectively.
It contains no cholesterol, no trans-fat, no added preservatives, no artificial Flavour and no
artificial color.
It can be ready in 4 minutes.
It’s a natural source of protein, iron and amino acid.
It’s available at price of Rs 49.
Millet Poha/Upma
It has power of 5 millet which are finger, foxtail, pearl, kodo and great millet.
It contains no cholesterol, no trans-fat, no added preservatives, no artificial Flavour and no
artificial color.
It can be ready in 4 minutes.
It contains 30% RDA of vitamin A and B6, Calcium and Iron.
It’s a natural source of Fiber and contains 5.8g of protein.
It’s available at price of Rs 29
SWOT ANALYSIS OF SAFFOLA FITIFY PRODUCT
Managing weight
Blood pressure regulation
Metabolism regulation
Blood sugar regulation
STRENGTH Support immunity
Easy to make and consume anywhere
No Added Preservatives
No soy
No gluten,
No artificial flavor,
No artificial color,
No animal extracts
to customer.
ADVANTAGED OF FITIFY RANGE
Our Hi-Protein Meal Soups and Hi-Protein Slim Meal Shakes contain a blend of 5 Superfoods
namely Moringa, Buckwheat, Amaranth, Quinoa and Turmeric. These Superfoods endow the
product with numerous benefits to help you lead a slimmer fitter life
We make sure to exclude any harmful elements from our products so that the product you
receive delivers its goodness to the fullest
We understand that foods that are healthy are not particularly tasty. The choice between
nutritious food and a tasty spread is difficult and we decided to solve it. We brought on board
expert nutritionists to create a healthy range of foods for a slimmer and fitter life. But just like
you, we don’t like to compromise on taste as well! That’s why we partnered with Celebrity Chef
Kunal Kapur to make sure that you receive a product that allows you to enjoy an authentic
gourmet experience that is nothing short of a gourmet product. So don’t think twice. Enjoy the
Saffola Fittify Gourmet experience.
Whether it’s the Green Tea, Green Coffee, Hi-Protein Meal Soup and Hi-Protein Slim Meal
Shake all our products are simple to make. Our Green Tea, Green Coffee Hi-Protein Meal Soup
and Hi-Protein Slim Meal Shake even come in single serve sachets so that you can easily carry
your nutrition on the go and aren’t forced to settle for anything less.
We want to make sure that you achieve your fitness goals. With this in mind, we have partnered
with one of India’s leading fitness apps – Revofit. After your purchase of Saffola Fittify Gourmet
products you are entitled to a 30 day free nutritionist consultation, Rs. 200 FITCASH, daily
progress tracking, expert fitness guidance and much more.
To avail these benefits, download the Revofit app and use the unique code given inside each
pack.
COCOSOUL
To launch a slew of cold-pressed virgin coconut oils and coconut-based organic products. In a
bid to strengthen its premium product portfolio, leading FMCG Company Marico Ltd is
launching a new brand, Coco Soul. Under Coco Soul, which marks Marico’s foray into the
organic food space, the company will launch a range of organic, cold-pressed virgin coconut
At the break of dawn, sunlight trickles through the palm leaves soaking our farms in its warm
glow. A crisp breeze blows past as you see the leaves move in unison. It is amidst this idyllic
setting, in the heart of Tamil Nadu and Kerala where our coconuts are individually graded,
meticulously picked and tastefully packaged to create products that imbue you with benefits like
no other.
Heat treating coconuts destroys their inherent nutrient profile ensuring that you get diminished
benefits if at all. Our patented No Heat Process locks in the nutrient goodness, taste and aroma of
a coconut and delivers it to you unblemished in any way.
We don’t believe in spoiling the goodness of a coconut through artificial means. That is why our
products are devoid of any preservatives, artificial color or Flavour that can harm you in any
way. When you buy Coco Soul what you get is a pristine product that will add a bit of soul to
your life.
PRODUCT VARIANTS
It helps support cognitive function, aids in digestion, helps to boost energy and manage weight.
Its non-genetically modified, preservative free, vegan and gluten free by nature.
Its best used for direct consumption, cooking and taste enhancer.
1 litre natural oil is available for Rs 749,500ml is available at Rs 399,250ml Rs 230,500ml can
Coconut sugar
It contains 100% organic low glycemic index, its gluten free by nature, its vegan and rich in
potassium.
It’s made from golden coconut nectar and it’s minimally processed.
Its best used for beverages, desserts and for cooking.
It’s certified by jaivak bharat and India organic.
The 200g carton pack is available at Rs 249 and Jar pack at Rs 399.
There are other products of Cocosoul like the coconut spread, peanut and almond butter and
coconut chips
Sourced from pristine coconut farms of Philippines, the spread has no added sugar, no
cholesterol or added stabilizers. This makes it a great alternative to regular jams and spreads.
Proof of Purity: Changes in temperature may cause traces of coconut oil to separate from the
spread to form a white layer. This is a perfectly normal phenomenon and does not affect the taste
or quality of the product
The chips are high in fiber, contain zero cholesterol and are gluten-free by nature.
Crunchy is rich, smooth vegan butter enhanced with the goodness and taste of coconut and the
delightful crunch of finely crushed peanuts. This delectable indulgence is unsweetened and made
It is made with clean, simple formulation of high quality peanuts (70%) and freshly harvested
coconuts (30%) in a carefully curated ratio to deliver health and taste. The butter is high in
protein, contains no added sugar, hydrogenated oils or stabilizers and that makes it a great
Proof of Purity: Changes in temperature may cause a liquid layer of butter to visibly separate
from the butter. This is natural and does not affect the taste or quality of the product.
It’s Creamy, rich, smooth vegan butter enhanced with the goodness and taste of coconut. This
It is made with clean, simple formulation of high quality almonds (85%) and freshly harvested
coconuts (15%) in a carefully curated ratio to deliver health and taste. The butter is high in
protein, contains no added sugar, hydrogenated oils or stabilizers and that makes it a great
from the butter. This is natural and does not affect the taste or quality of the product.
Make Coco Soul your everyday weight management partner. The MCTs in virgin coconut oil get
swiftly metabolized for energy instead of getting deposited as fat in the adipose tissue. No wonder
it’s suggested as a part of the Keto diet. So if you’ve got weight management on your mind, this
Coco Soul virgin coconut oil contains 60% MCTs. These MCTs metabolize faster and get
oxidized to ketones. These ketones activate key molecules in the brain to support cognitive
MCTs in virgin coconut oil are unique as they have a shorter chain length and unlike long chain
triglycerides (LCTs) they are digested quickly in the body. This may help people with certain
gastrointestinal problems.
4. Boosts Energy
MCTs being smaller molecules get absorbed faster and oxidized quicker, making them an
extremely efficient source of energy. If you are into sports or any physical activity this could be
your go-to-fuel.
FMCG SECTOR DETAILS
INTRODUCTION
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that
are sold quickly and at a relatively low cost. Examples include non-durable goods such as
packaged foods, beverages, toiletries, over-the-counter drugs, and other consumables.
FMCG OVERVIEW?
Indian economy is amongst the fastest growing major economies of the world. It has huge
demographic dividend given that it has world’s second largest population base. This has been
one of the major drivers for consumption growth in the country over the past many years and is
likely to be the one in coming years as well. One of the major beneficiaries of this consumption
growth story is Fast Moving Consumer Goods (FMCG) sector, which is the fourth largest sector
in India. The FMCG sector in India has grown at a compounded annual growth rate (CAGR) of
9.1% from USD 31.6 bn in 2011 to USD 49 bn in 2016 and is expected to grow at a CAGR of
20.6% to USD 103.7 bn by 2020 (Source: Emami Ltd Annual Report FY18).
FMCG CLASSIFICATION
COMPETITIVE SCENARIO
These two toothpaste brands have always been at loggerheads and the situation does not look
like improving in the near future. Where Colgate has the brand value, Pepsodent has the
Amul has been an established ice cream player since decades in India. However, once Kwality
walls entered the market, it has taken away the market by storm by introducing many different
types of ice cream which the customers loved. Furthermore, because of the deep pockets of
HUL, Kwality walls could market itself much better. This FMCG rivalry is in its prime and the
war can be seen easily in the market. However, it will be several years more before any of them
Where Nestle has Kitkat, Cadbury has Perk. Similarly, Cadbury has its own version of Éclairs.
Thus, these FMCG rivals are set to be rivals for the coming years. Though, it can be forecasted
that Nestle will remain the challenger and Cadbury the market leader.
4. HUL vs. Marico
Where Hul is known for Knorr, Surf Excel etc., Marico is known for its parachute oil, Saffola as
flagship brand. These FMCG rivals are set to be rivals for coming years.
2) Monitoring customer service levels in close collaboration with category manager and
logistics
4) By creating a positive image of the product and lead consumers to buy the product
9) Provide accurate and meaningful data, analysis and insights to Regional Sales Manager
Most consumers flinched when they saw the price of our product
These were outside of their normal comfort zone. So the challenge was to explain them
Competition in the luxury goods sector is fierce. There was a lot of competition for Fitify
Most of the customers were not aware of Saffola coming up with a new brand label Fitify
and same was with Cocosoul. So it was a challenge making the consumers aware about
the brand
Achieving everyday target was also a challenge for the premium products
EXPERIENCE AND LEARNING
LEARNING
Working with multiple customers at once while taking care of go-backs and keeping the
store neat. We must also be able to prioritize customers and other tasks.
Time management
KEY TAKEAWAYS
Try to create a good customer experience as it reflects well on you, the brand and can
create customer loyalty. Everyone has a bad day. It's best to leave your personal problems
at the door because the ways you handle your day affect your co-workers and your
Offer competent advice (how to prepare the product, how to use the product, product
Article 1
Home-grown FMCG major Marico is eyeing more launches in the premium food and personal-
The company will look to first introduce the premium offerings online before extending them to
modern trade. There will also be some separation of portfolio between modern trade,e-commerce
Operating margin in FY19 was 17.5 per cent. According to Sanjay Mishra, COO, Marico Ltd,
the company will look to grow across core categories; and also “through creation of new ones”.
Investments will focus on “driving growth” rather than just shoring up turnover.
Market sources said that the company has identified five growth areas that include premium
In places where existing brands cannot be stretched, new brands will be created.
In Q4 of FY19, the company broadened its play in the ‘Saffola FITTIFY Gourmet’ range by
introducing a ‘power breakfast range’ through traditional Indian dishes (like upma and poha). It
expanded the healthy foods range under the brand Coco Soul with coconut chips, peanut coconut
In the male grooming range, Marico launched the charcoal variant of Set Wet Studio X variant to
include categories like shampoo, body wash, face mask, face wash and face scrub.
“Our future lies in the growth of core categories and creation of new ones. In the core category
there will be volume growth along with premium,” he told Business Line, adding that “the core
modern trade. Sale from these two channels accounts for about 14- 15 per cent of Marico’s
turnover. In FY19, Marico recorded 28 per cent growth from modern trade.
The company’s MD and CEO, Saugata Gupta, in a recent analysis call said that urban general
trade (especially in the top six towns) is under stress. Firstly, the growth of modern trade and e-
Secondly, post demonetization and GST, the entire wholesale business is shrinking.
In order to grow across the general trade channels, Marico is focusing on chemist, cosmetic and
Article 2
Edible oil and personal care products maker Marico NSE 0.97 % will soon return to the health
and wellness food market by launching more than half a dozen items as part of its wider strategy
to expand its portfolio with premium new age products.
The company will roll out a range of food and beverages products including green tea and
coffee, high protein breakfast cereals, soups and protein shakes under Saffola Fitify brand next
quarter, with their distribution entirely focused on modern trade and online channels, a top
official said.
“This gives us an opportunity to try out new products even if we don’t succeed in every
category,” said Saugata Gupta, managing director at Marico. “These products are no longer niche
and the market is at an inflection point. We have internally created a division which will
continue to experiment with such products without any fear of failure,” he said.
This is Marico’s second attempt to enter the health and wellness food market. Over the past
decade, the maker of Saffola and Parachute brands had entered segments such as salt, snacks,
rice and wheat flour for diabetics, weight and cholesterol management, which were either
completely withdrawn or restricted to few markets.
However, it succeeded in the Rs 400-crore oats segment where Saffola Oats has more than 30%
market share now.
Marico’s business team for the new range of health and wellness food products, internally called
Engine 2, runs like a new entrepreneurial company to create and incubate new categories as it
targets a 70% increase in revenue to Rs 10,000 crore by 2020, Gupta said.
Marico’s latest bet comes at a time when Hindustan Unilever NSE 0.27 % made its most
ambitious foray into the health and wellness space by acquiring GSK Consumer brands with
plans to extend Horlicks into similar nutritional product segments.
Article 3
Saffola tops the list of Product of the Year 2019 winners Awards were given out across 21
categories with Nielsen as the research partner. Campaign India was the digital partner
Consumer goods brand Saffola swept the Product Of The Year 2019 Awards with product
variants under the Saffola Fittify range bagging as many as five out of the 21 awards handed out
in this edition of the awards. Among brands that picked up two awards each included, Nestle,
Hindware, Liebherr and Coco Soul. The entire list of winners is given below. Product of the
Year is an internationally recognised certification that celebrates and rewards the best
innovations in consumer products and services. The shortlisted products are put through an
independent consumer survey conducted by Nielsen. Products with the highest votes in each
category become Product of the Year winners in their category. The awards ceremony also had a
presentation by Tarun Rai, chairman and group CEO, South Asia, Wunderman Thompson, who
spoke about the present and future of the agency business. Rai said that with the dizzying pace of
change, the belief was that advertising agencies were finding themselves on the backfoot and had
lost their mojo. Adding that, in some cases, agencies are spending more time with procurement
departments than marketing teams, Rai added, "Everyone wanted to steal our lunch from digital
companies, media agencies and content creators to even stand-up comics." Taking examples
from Wunderman Thompson's set of clients, Rai described how brands had exhibited growth
through consistency in communication, reflected culture, created culture, played the role of
entertainers, tugged at hearts with a powerful storyline or essayed a strong brand purpose.
Debating the point that agencies were accused of being "traditional" or "30-second specialists",
Rai showcased digital work done by his agency that blended technology with creativity. His
submission to the audience of marketers was that even as the world will see a dizzying pace of
change, "what will not change is creativity. Agencies will continue to impact people and their
behaviour with creativity".
Article 4
Home-grown FMCG company Marico Ltd, which entered into the ‘premium superfood’
category, is planning to ramp up its presence with new launches and by expanding its distribution
channels.
The term ‘superfood’ refers to nutrient-dense fruit, vegetables or eatables that have a high
content of antioxidants, protein, Omega-3, minerals, fibres or other essential nutrients with health
benefits.
A while ago, Marico launched offerings such as green coffee, moringa green tea, high protein
meal soup and meal replacement milk shake powders, across different flavours, under the
‘Saffola Fittify Gourmet’ brand. The offerings, which are sold online (on Amazon and on the
company’s own website), are expected to be taken to offline distribution channels soon.
However, the offline focus will be on premium outlets, including Godrej Nature’s Basket,
Marico CFO Vivek Karve said.
“The idea is to expand this portfolio (superfood) significantly. And the channels that would fulfil
our needs would be typically e-commerce or high-end food outlets; for example, Godrej Nature’s
Basket,” he told BusinessLine.
The company is open to reach out to third parties for manufacturing and packaging. However,
the key investment, he says, will be through “in-shop advertising”.
“In any food category, the margins are lower than in the personal care segment. However, within
the food business, the margins of Saffola Fittify and Coco Soul will be much higher than the oils
business; or even the masala oats portfolio,” Karve said.
Nearly 15 per cent of the Saffola portfolio is healthy foods.
Huge scope
According to an Edelweiss Securities report, Fittify is unlikely to compete in the lower end of the
market.
“There is immense opportunity at the higher end, and some start-ups have been working on such
products. Future growth will come from expanding the category through continuous innovation
in product and package and (Marico) is taking definitive steps towards that,” the report said.
The healthy foods franchise posted growth of 23 per cent for Marico in the quarter to December
31, 2018 (over the same quarter last fiscal). The overall foods portfolio is expected to touch ₹200
crore by FY-20, it added.
Focus on Premium
Marico over the last few quarters has been looking to ramp up its kitty of premium offerings. The
premiumisation strategy will be seen in categories like food, personal care and mens grooming
and other verticals that the company operates in.
According to Karve, a favourable input cost (primarily copra prices) will help improve margins
and fund growth.
However, copra prices have substantially risen in the aftermath of Cyclone Gaja in Tamil Nadu
in November 2018.
“We are not doing any pricing action on Parachute. We have taken a wait and watch policy. If
our predictions hold good, we are still looking at a lower copra price. This means there will be
some additional margins which we can plough back and fund growth,”
RESEARCH METHODOLOGY
OBJECTIVES
As per the requirement of the project questionnaires established direct contact with the
respondents for the purpose of my study, where the respondents were the customers in Tesco,
Andheri crystal mall
1. To understand the scope and the growth factor of Saffola Fitify and Cocosoul products in
domestic market
2. Identifying the facts of the behavior of the consumers while buying high priced Saffola
Fitify Hi Protein meal shake as well as the natural or organic virgin coconut oil
3. To study the comparative analysis between Saffola Fitify and its competitors MB Protein
shake, HK Lean Slim shake etc.
4. To analyze the satisfaction level of the consumers towards 100% organic or natural
multipurpose coconut oil and Fitify breakfast to dinner range
5. To find out the barriers faced by consumers to adopt to organic lifestyle
SCOPE OF THE STUDY
1. The project helps to understand the consumer behavior for new product launched
2. The analytical scope causes the fulfillment of the objectives set out for the study
LIMITATIONS
1. The findings of this study are based on the expressed opinion of the respondents
3. There was not enough time to conduct survey of more than 100 consumer
SOURCE OF DATA COLLECTION:
natural products.
(1) GENDER
NO OF RESPONDENTS
FEMALE MALE OTHERS
0%
36%
64%
Total Male: 64
Total Female: 36
Mainly because there are more male members taking protein shake
Women in comparison to men, have less confidence in their ability to overcome their
NO OF RESPONDENTS
0%
9% 20-30
10%
30-40
40-50
60 AND ABOVE
People within the age group of 20 to 30 years are the best age group to target as people
tend to make their own opinion as they are the once probably not married and can give
People within the age group of 30 to 40 are the once who care about resolving certain
5% Regulate Metabolism
5%
Regulate Blood
Pressure
80%
As our product is a meal replacement, customers didn’t feel hungry for 2-3 hours. So the
most effective benefit customers could get was management of their weight
(4) WHICH PRODUCT WOULD YOU USE AS AN ALTERNATIVE?
NO OF RESPONDENTS
MB Protein shake HK Lean slim shake Nupo diet shake
8%
32%
60%
INTERPRETATION
From the above interpretation customers prefer buying MB Protein shake as it’s a muscle gainer
and most of the customers mainly men who prefer body building go for MB Protein shake
instead of Saffola Fitify shake which consist of only plant based proteins and edible oil which
NO OF RESPONDENTS
30%
YES NO
70%
INTERPRETATION
o Poor in taste
o Increased their health problem
NO OF RESPONDENTS
Weight Management
Diabetes
10%
5% Regulate Metabolism
70%
INTERPRETATION
From the above interpretation customers initially wanted to solve the problem of weight
mismanagement much more than blood pressure problem. As our product was a meal
NO OF RESPONDENTS
HIGH PRICE
NEWLY INTRODUCED
35%
PRODUCT
LOYAL TO OTHER
PRODUCT
60%
5%
According to above interpretation customers didn’t mind buying this product but most
NO OF RESPONDENTS
YES NO
30%
70%
INTERPRETATION
30% respondents said that it made them feel hungry in less than 2 hours making them
consume more calorie than expected while purchasing this product. They didn’t consider
Whereas 70% said they were less hungry and consumed very less calorie
NO OF RESPONDENTS
YES NO
30%
70%
INTERPRETATION
Free samples generate a lot of sales. Most of the customers didn’t buy our highly Priced
They either preferred buying green tea or green coffee because there was Moringa leaves
NO OF RESPONDENTS
VERY GOOD
10% GOOD
20%
BAD
VERY BAD
30%
40%
INTERPRETATION
Customers found the taste of our Hi protein meal shake very refreshing especially
Alphonso, French Vanilla and Royal Kesar but at the same time they hated the taste of
NO OF RESPONDENTS ALPHONSO
FRENCH VANILLA
10%
20% COOKIES AND CREAM
SWISS CHOCOLATE
20% COFFEE CARAMEL
PISTACHIO ALMOND
NONE
20%
10%
10% 10%
Consumers liked the Flavour of Alphonso, French vanilla, Pistachio Almond but at the
same time they didn’t like cookies cream because of no sugar content, Swiss chocolate,
coffee caramel.
NO OF RESPONDENTS
ORIGINAL
CACAO
20% SEA SALT
30%
NONE
30%
20%
INTERPRETATION
Consumers didn’t like Cocosoul spread as much as they preferred buying Nutella and
Fabsta spread
Consumers who purchased preferred taking Cacao spread than sea salt & the original
Flavour
(13) HOW DID YOU FIND THE TASTE OF OUR PRODUCT
AFTER TASTING THE SAMPLE?
GOOD
20% 15%
BAD
VERY BAD
30% 35%
INTERPRETATION
40% of the customers liked the taste of the products especially Saffola Fitify shakes and
30% didn’t like Saffola Fitify hi protein meal soup and even the green coffee
CHAPTER 4
4.1 CONCLUSIONS
Increase of small packs of shakes to encourage customers to buy the product next time as
well
Increase of advertising can help create brand presence as customers weren’t aware about
Marico coming up with these two new products which were Saffola Fitify and Cocosoul
More scheme and discounts can help increase the market visibility of Cocosoul products
To engage people by having more social media interaction by having activity with
AGE: ______
HEIGHT: ______
REGULAR FORM OF EXERCISE: ______________
1) What is the primary benefit that you have received from this product?
o Weight Management
o Regulate Metabolism
2) How would you feel if you could no longer use our product and why?
______________________________________________________
______________________________________________________
3) What would you likely use as an alternative to our product High protein meal shake,
if it were no longer available?
*Tick mark accordingly*
o MB Protein shake
o Yes : ___________________________________________________
___________________________________________________
o No
5) How could we improve our product or company name to better meet your needs?
_________________________________________________________________
_________________________________________________________________
6) What problem were you trying to solve when you initially came across our product or
Service?
o Weight Management
o Blood pressure problem
o Diabetes
o Regulate Metabolism
8) Does the Hi protein meal shake make you hungry in less than 2 hours?
o YES
o NO
o YES NO
o Good
o Bad
o Very bad
*Tick mark accordingly*
11) Saffola Fitify Slim meal shakes: 13) Saffola Fitify soups:
Which Flavour do you prefer: Which Flavour do you prefer?
Alphonso Spanish Tomato
Coffee Caramel
14) Saffola upma/poha:
Which Flavour do you prefer?
Swiss Chocolate
Quinoa
Original Original
Cacao Cacao