(1st SEMESTER FINAL PROJECT)

NAME:-DEEPAK MISHRA
PGDM-IX
UID NO:-2019-0908-0001-0005

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Contents
A. SECTOR INFORMATION.....................................................................................................................4
1.MARKET SIZE..........................................................................................................................4
2. GROWTH PATTERN................................................................................................................5
3.OPPORTUNITIES FOR FMCG..................................................................................................5
4.KEY CONCERNS FOR FMCG...................................................................................................5
5.GOVERNMENT INITIATIVES...................................................................................................6
6.ACHIEVEMENTS......................................................................................................................6
7.ROAD AHEAD...........................................................................................................................6
8.PORTER’S FIVE FORCES FOR THE SECTOR..........................................................................8
B. COMPANY INFORMATION(MARICO).................................................................................................8
1.PRODUCT PORTFOLIO............................................................................................................9
2.SWOT ANALYSIS...................................................................................................................10
3.STP.........................................................................................................................................11
4.COMPETITOR’S ANALYSIS...................................................................................................11
5.NEWS (LAST 6 MONTHS).....................................................................................................11
C. PRODUCT INFORMATION (SAFFOLA)...............................................................................................12
................................................................................................................................................... 12
1.SWOT ANALYSIS OF THE PRODUCT (SAFFOLA)................................................................13
2.MARKETING MIX...................................................................................................................13
PRODUCT:....................................................................................................................................13
PRICE:..........................................................................................................................................14
PLACE:..........................................................................................................................................14
PROMOTION:...............................................................................................................................14
3.STP OF THE PRODUCT.........................................................................................................15
4.PLC OF SAFFOLA..................................................................................................................15
D.FINANCE...........................................................................................................................................16
GROSS PROFIT MARGINS (RS. IN CRORES)...........................................................................16
NET PROFIT MARGINS (RS IN CRORES).................................................................................16
DIRECT AND INDIRECT COSTS...............................................................................................16
FIXED ASSETS ADDED DURING THE YEAR............................................................................16
WORKING CAPITAL OF THE YEAR =.......................................................................................16

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 DEBT EQUITY RATIO................................................................................................................16
E. HUMAN RESOURCE MANAGMENT..................................................................................................17
1.ORGANISATION STRUCTURE..............................................................................................17
2.SKILLS SETS REQUIRED IN COMPANY................................................................................18
3.JD AND JS OF MARICO........................................................................................................18
SELECTION PROCESS..............................................................................................................20
4.TRAINING METHODOLOGY USED BY MARICO...................................................................21
5 .EMPLOYEE BENEFITS PROVIDED BY MARICO..................................................................23
6.ORGANISATION CULTURE....................................................................................................23
................................................................................................................................................... 23

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 Revenue of the fast moving consumer goods (FMCG)
market in india from 2007 to 2020(in billion U.S. dollars)
50
45
40
35
30
25
A.
20
15
10
5
0
2007 2008 2009 2010 2011 2012 2013 2015 2016 2019

REVENUE

SECTOR INFORMATION
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG
sales in India. Growing awareness, easier access and changing lifestyles have been
the key growth drivers for the sector. The urban segment (accounts for a revenue
share of around 55 per cent) is the largest contributor to the overall revenue
generated by the FMCG sector in India However, in the last few years, the FMCG
market has grown at a faster pace in rural India compared with urban India. Semi-
urban and rural segments are growing at a rapid pace and FMCG products account
for 50 per cent of total rural spending.

1.MARKET SIZE
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$
840 billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent
per annum, which is likely to boost revenues of FMCG companies. Revenues of
FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are
estimated to reach US$ 103.7 billion in 2020. The sector witnessed growth of 16.5
per cent in value terms between July-September 2018; supported by moderate
inflation, increase in private consumption and rural income.

2. GROWTH PATTERN

3.OPPORTUNITIES FOR FMCG

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  Untapped rural market
 India is one of the world’s biggest producers of a number of FMCG products but the
country’s exports account for a very small proportion of the overall output.
 Food-processing Industry: With 200 mn people expected to shift to processed and packaged
food, India needs around USD 30 bn of investment in the food processing industry.

4.KEY CONCERNS FOR FMCG

 High inflation
 Rising cost of inputs
 Emergence of private labels
 Counterfeits and pass-offs
 Rupee depreciation may hit margins of companies
 Infrastructure bottleneck.

5.GOVERNMENT INITIATIVES
Some of the major initiatives taken by the government to promote the FMCG sector
in India are as follows:

 The Government of India has approved 100 per cent Foreign Direct
Investment (FDI) in the cash and carry segment and in single-brand retail
along with 51 per cent FDI in multi-brand retail.
 The Government of India has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure simple,
speedy, accessible, affordable and timely delivery of justice to consumers.
 The Goods and Services Tax (GST) is beneficial for the FMCG industry as
many of the FMCG products such as Soap, Toothpaste and Hair oil now
come under 18 per cent tax bracket against the previous 23-24 per cent rate.
Also rates on food products and hygiene products have been reduced to 0-5
per cent and 12-18 per cent respectively.
 The GST is expected to transform logistics in the FMCG sector into a modern
and efficient model as all major corporations are remodelling their operations
into larger logistics and warehousing.

6.ACHIEVEMENTS
Following are the achievements of the government in the past four years:

 Number of mega food parks already increased from 2 between 2008-14 to 13

between 2014-18.
 Preservation and processing capacity increased from 308,000 during 2008-14
to 1.41 million during 2014-18.
 The number of food labs increased from 31 during 2008-14 to 42 during 2014-
18.

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7.ROAD AHEAD
Rural consumption has increased, led by a combination of increasing incomes and
higher aspiration levels; there is an increased demand for branded products in rural
India. The rural FMCG market in India is expected to grow to US$ 220 billion by
2025 from US$ 23.6 billion in FY18. In FY18, FMCG’s rural segment contributed an
estimated 10 per cent of the total income and it is forecasted to contribute 15-16 per
cent in FY 19. FMCG sector is forecasted to grow at 12-13 per cent between April–
June 2019.
On the other hand, with the share of unorganised market in the FMCG sector falling,
the organised sector growth is expected to rise with increased level of brand
consciousness, also augmented by the growth in modern retail.
Another major factor propelling the demand for food services in India is the growing
youth population, primarily in the country’s urban regions. India has a large base of
young consumers who form the majority of the workforce and, due to time
constraints, barely get time for cooking.
Online portals are expected to play a key role for companies trying to enter the
hinterlands. The Internet has contributed in a big way, facilitating a cheaper and
more convenient means to increase a company’s reach. It is estimated that 40 per
cent of all FMCG consumption in India will be online by 2020. The online FMCG
market is forecasted to reach US$ 45 billion in 2020 from US$ 20 billion in 2017.
It is estimated that India will gain US$ 15 billion a year by implementing the Goods
and Services Tax. GST and demonetisation are expected to drive demand, both in
the rural and urban areas, and economic growth in a structured manner in the long
term and improve performance of companies within the sector.

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8.PORTER’S FIVE FORCES FOR THE SECTOR

B. COMPANY INFORMATION(MARICO)
Marico Limited is one of India's leading consumer goods companies providing
consumer products and services in the areas of health, beauty and wellness. With its
headquarters in Mumbai, Maharashtra, India, Marico is present in over 25 countries
across emerging markets of Asia and Africa.

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HEADQUARTER MUMBAI
FOUNDER HARSH MARIWALA
CEO SAUGATA GUPTA
CFO VIVEK KARVE
CMO KOSHY GEORGE
CHRO AMIT PRAKASH

1.PRODUCT PORTFOLIO

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2.SWOT ANALYSIS

Massive Distribution network

STRENGTH -Strong presence in Asia and Africa
-Strong Financial Performance
-Advanced Quality Check Systems

-Largely dependent on saffola and

parachute brands.
WEAKNESS -Limited Global Presence
-Heavy dependence on monsoons

-Strong Economic Indications

-GST Implications Benefits
OPPORTUNITIES -Promising growth in Rural Markets
-Organic/Inorganic Growth
Opportunities

-Disruption in Fmcg Sector

THREATS -Political Risks
-Competition
-Foreign Currency Exposure

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3.STP

SEGMENT
■ Products and Services for
daily needs

TARGET ■ Every Indian household

Especially middle class

POSITIONING ■ With Marico, your everyday

needs are fulfilled

4.COMPETITOR’S ANALYSIS

5.NEWS (LAST 6 MONTHS)

29th October – Marico plunges 7% after Q2 results
25th october – Outlook for H2, Marico eyes 8-10 % domestic growth

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1st august – Marico Consolidated June 2019 Net Sales at Rs 2,166.00 crore, up
6.87% Y-o-Y.
16th July – Marico Industries Q1 PAT seen up 21.5% YoY to Rs. 315.8 cr: Reliance
Securities.
6th May – Marico Q4 net profit jumps 18% to Rs. 217cr.

C. PRODUCT INFORMATION (SAFFOLA)

Saffola is a health care brand which brings to you a range of everyday Heart Healthy
Foods and Services that are easy, effective and enjoyable so that they easily
integrate into your lifestyle. For the last years, Saffolalife has been creating
awareness about heart health and
inspiring people to heave a healthy lifestyle for a healthy heart.  At Saffola, we
understand that each one of you have your own way in which you blend health into
your lifestyle. We encourage and applaud your actions to discover your own ways of
being fit & heart- healthy, so that health becomes not only a journey, but a
sustainable part of your life.

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1.SWOT ANALYSIS OF THE PRODUCT (SAFFOLA)

STRENGTH •HIGHER RECALL VALUE

•TRUSTED BRAND
•HIGHER PUFA

•MEDICAL TAG
WEAKNESS •HIGHER COST
•INSUFFICIENT SEGMENTATION

•NEW TASTE VARIENT

OPPORTUNITY •360 DEGREE MARKETING

•COMPETETIONS
THREAT •FAILURE OF CAMPAIGNS

2.MARKETING MIX
PRODUCT:
The product strategy and mix in Marico marketing strategy can be explained as
follows:
Marico is one of India’s top FMCG companies focused on health and beauty
products. The brand width in Marico marketing mix deals with hair oil, hair care,
edible oil, deodorants, personal wash and fabric care categories. Marico’s brand
portfolio can be divided into two segments, viz. indian brands and international
brands. The Indian brands of Marico include Parachute, Nihar, Set Wet (deodorants
and hair gel), Zatak, Livon, Medicare, Saffola (oil, oats, Active, Fit, etc), Revive
instant bleach and Manjal. Internationally, Marico has the brands like Parachute
Advanced Body Lotion in Bangladesh, Boss in Vietnam and Hercules in South
Africa. Brands like Parachute & Saffola are very well known brands in India & also
worldwide.

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PRICE:
Below is the pricing strategy in Marico marketing strategy:
Marico has a wide product range in a competitive market and hence has a diverse
price range. For most of its brands Marico followed the strategy of entering markets
that have low competition and emerged as leader in them, like hair oils, edible oil,
etc. But recently Marico has found itself in a competitive scenario as it entered
deodorants, hair style Patanjali’s ng, fabric conditioners, breakfast cereals, skin care,
etc. Also, other FMCG giants have focused again on ayurvedic and natural products
segment with recent entry in the industry. Marico therefore follows a competitive
pricing strategy to maintain its leadership in its leading brands like Parachute and
Saffola. This gives an insight about the pricing in its marketing mix.
PLACE:
Following is the distribution strategy of Marico:
Marico is present in more than 25 countries. It acquired Nihar in India, Fiancee &
Hair code in Egypt, Black Chic and Hercules in South Africa. The distribution of
Marico products in the Financial year 2015-16 increased by 8% and 6% in rural and
urban sectors respectively. Major increase in Value added Hair Oil segments in rural
segments. Sale in urban stores grew at 11%. Marico has taken up a new program
called ONE which is Outlet Network Expansion, in order to increase direct coverage
in top six metro cities. This program is aimed at improving the availability of Marico
products in stores, retailer convenience and access to promotions. Marico has
incorporated IT in order to eliminate shortages in its supply chain. Internationally,
market in Bangladesh reduced by 3% strictly attributing to price correction as the
volume increased by 2%. In Egypt more investment in infrastructure to boost
distribution channel.
PROMOTION:
The promotional and advertising strategy in the Marico marketing strategy is as
follows:
Marico is known for its promotions, the fact has it has won plethora of medals and
awards for its varied promotion campaigns is proof enough. Marico uses all types of
media like TV, online, billboards, print media etc. in its marketing mix. Some of the
ongoing campaigns of Marico are:
• Nihar- Dikho Khoobsurat, Karo Khoobsurat
• Nihar- #I am capable
• Saffolalife- #protectherheart
• Saffola Masala Oats- Chef’s Choice campaign
• Parachute Advanced - #KhulKeKheloHoli
• X Men for Boss, Vietnam
• Hercules Smart School Campaign in South Africa

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Marico is also known to rope in a lot of celebrity for its endorsements like Vidya
Balan for Nihar, Ranveer Singh for Set Wet and Deepika Padukone for Parachute are
some examples. Hence, Marico marketing mix is covered above.

3.STP OF THE PRODUCT

Segmentation Health conscious people

People with heart disease

Target Health conscious people

People with heart issues

Positioning No Cholestrol
Healthy for the heart

4.PLC OF SAFFOLA

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D.FINANCE

GROSS PROFIT MARGINS (RS. IN CRORES)

Gross Profit / Net Sales × 100
=1187/5912×100
=20.077%
NET PROFIT MARGINS (RS IN CRORES)
Pat / Net Sales × 100
=1132/5912×100
=19.14%
DIRECT AND INDIRECT COSTS
Direct Cost = Cost of Material Consumed + Purchase of Stock in Trade + Changes in
Inventories + Employee Benefit Expenses.
=3463+109+(101) +307
=3778

Indirect Cost =Finance cost + Depreciation Expenses + Tax Expenses + Other

Expenses + Employee Benefit Expenses
= 12 + 81 + 55 + 1214 + 307
= 1669
FIXED ASSETS ADDED DURING THE YEAR

2019 – 2018 = 3639 – 3163

= 506

WORKING CAPITAL OF THE YEAR =

CURRENT ASSETS - CURRENT LIABILITIES
= 2003 – 1002
= 1001

DEBT EQUITY RATIO

= Total Liabilities / Shareholder’s equity
= 3669 / 3637

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= 1.008

Gross Profit Margin 20.077

Net Profit Margin 19.14

Direct Costs 3778

Indirect Costs 1669

Working Capital 1001

Debt Equity Ratio 1.008

E. HUMAN RESOURCE MANAGMENT

1.ORGANISATION STRUCTURE

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2.SKILLS SETS REQUIRED IN COMPANY
>GENERAL SKILLS
-COMMUNICATION
-TECHNICAL SKILLS
-ANALYTICAL SKILLS
-INTERPERSONAL SKILLS
-PROBLEM SOLVING SKILLS
-MULTI TASKING

>ON THE FLOOR QUALITY AND SKILLS THAT IMPRESSES THE

MANAGEMENT

-MANPOWER MANAGEMENT
-INTERPERSONAL SKILLS
-TECHNICAL EXPERTISE
-QUALITY CONCIOUSNESS
-INNOVATION

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3.JD AND JS OF MARICO

MARKETING
> JOB DISCRIPTION
-POSITION:MANAGER/EXECUTIVE SALES FOR MARICO PRODUCTS
-DESIGNATION/TITLE: SALES
-DIVISION/BUSINESS UNIT: SALES/MARKETING

>KEY RESPONSIBLITIES
-SALES,AFTER MARKET FOR MARICO PRODUCTS
-PROMOTE MONITOR TERRITORY SALES THROUGH DEALER/DISTRIBUTOR
-RESPONSIBLITIES FOR SALES.FOLLOW UP SALES AND OTHER ACTIVITY
-COSTING
-INDENT MEETING WITH PPC DEPT
-MONTHLY MIS PREPRATION
-SCHEDULE/DISPATCH PLAN THROUGH LOGISTIC

>DESIRE PROFILE
-EXPERIENCE :MINIMUM 2-8 YEARS EXPERIENCE IN SALES AND SERVICE
-EDUCATION:CANDIATE MUST BE MBA/PGDM

>COMPETENCY SKILLS
-HE SHOULD BE A SELF MOTIVATED INDIVIDUAL HAVING EXCELLENT
COMMUNICTION SKILLS AND GOOD INTERPERSONAL SKILLS .
-SELF INITIATOR
-POSITIVE ATTITUDE AND TEAM WORK
-GOOD COMMUICATION SKILLS

FINANCE
•JOB DESCRIPTION :
>ACCOUNTS OFFICER
•KEY RESPONSIBLITIES :
-CASH FLOW PROJECTION
-MIS REPORTING
-WORKING CAPITAL MANAGEMENT
-ACCOUNTS PAYABLE
-IMPORT AND EXPORT
-COMPLIANCE WITH RBI

•JOB SPECIFICATION

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>QUALIFICATION
-MBA/PGDM/BS DEGREE IN FINANCE,ACCOUNTING AND RELATED FIELDS
-MINIMUM 60% ABOVE IN 10,12CLASS.

>EXPERIENCE
-EXPERIENCE SUPERVISING AND MANAGING A PROFESSIONAL STAFF
-EXPERIENCE IN A TRUSTED RESOURCE AS A MEMBER OF A SENIOR LEVEL
-EXPERIENCE IN MULTIPLE LOCATION AND GLOBALLY FOR THE HR
DIRECTOR JOB
-HIGHLY ANALYTICAL ,DETAIL ORIENTED WITH ADVANCED FINANCIAL
MODELLING ANF FINANCIAL SKILLS

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SELECTION PROCESS

APPLICATION/SUBMISSION OF PROFILE •IF YOU FIND YOUR CANDIDATE

PERFECTLY FITTING OUR
REQUIREMENT,APPLY IR WITH JOB CODES
GIVEN .IF YOU HAVE NOT FOUND THE
RIGHT JOB,YOU CAN MAIL IN YOUR
RESUME TO HIRING @HMAIL.NET.WE
WILL KEEP YOUR RESUME IN YOUR DATA
BASE AND WE WILL CONTACT YOU IF
THERE IS A FIT WITH ONE OF THE
OPPORTUNITIES
REVIEW •YOUR APPLICATION WILL BE CAREFULLY
REVIEWED BY OUR REQUIREMENT
PROFESSIONALS AND YOU WILL RECEIVE A
PERSONALISED REPLY REGARDING YOUR
SUITABLITY OF YOUR PROFILE

INTERVIEW •YOUR APPLICATION WILL BE CAREFULLY

REVIEWED BY YOUR REQUIREMENT
PROFESSIONALS AND YOU WILL RECEIVED
A PERSONALISED REPLKY REGARDING
YOUR SUITABLITY OF YOUR PROFILE

•FOLLOWING YOUR INTERVIEW WE WILL

DECIDE IF YOU ARE SUITABLE FOR THE JOB
POST INTERVIEW OPENING. PLEASE BE PATIENT WITH US-
YOUR RECRUITER WILL KEEP IN TOUCH
WITH YOU WHEN FEEDBACK HAS BEEN
RECEIVED AND DECISIONS MADE. ALSO
FEEL FREE TO TOUCH WITH YOUR
RECRUITER ANY TIME

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4.TRAINING METHODOLOGY USED BY MARICO

Since Marico firmly believes that learning is maximized on

the job, the program offers 3 months of on-the-job training,
where each ET is assigned a particular role and a specific mentor .
Marico instituted a Young Board, comprising a group of young managers
who are in leadership positions for the first time in their careers. The board
will provide a fresh perspective to the management committee and also
expose future leaders to the travails of business.

Though in a very nascent stage, this is just one of many people development
policies that are underway at this rapidly growing consumer goods
company. Last year it launched 'Maricognize', a digital portal aimed at
making employee recognition a more instant affair.

Marico Chairman Harsh Mariwala sets the context to the leadership

development initiatives at Marico. "A leader for me is someone who inspires
a growth mindset, drives clarity of thinking, encourages experimentation
and risk taking to build a culture of innovation, focuses relentlessly on
execution excellence and nurtures talent to maximize potential.

Marico creates winners who can mentor future leaders.

The board will provide a fresh perspective to the management
committee and also
expose future leaders to the travails of business .

Last month, Marico instituted a Young Board, comprising a group of young

managers who are in leadership positions for the first time in their careers.
The board will provide a fresh perspective to the management committee
and also expose future leaders to the travails of business.

Though in a very nascent stage, this is just one of many people development
policies that are underway at this rapidly growing consumer goods
company. Last year it launched 'Maricognize', a digital portal aimed at
making employee recognition a more instant affair.

Marico Chairman Harsh Mariwala sets the context to the leadership

development initiatives at Marico. "A leader for me is someone who inspires
a growth mindset, drives clarity of thinking, encourages experimentation
and risk taking to build a culture of innovation, focuses relentlessly on
execution excellence and nurtures talent to maximize potential," he says.

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And that's where a large part of Marico's leadership development activities
are focused – creating leaders who can nurture and mentor future leaders.
"We work hard to grow leaders from within. The talent value proposition is
focused on empowering and enriching roles," says Saugata Gupta, Managing
Director & CEO.

The company has a fairly flat organisational structure with very few levels
and an open, apolitical culture that encourages employees taking on a
multiplicity of roles. The big shift in the leadership development processes at
Marico took place a couple of years ago when the company realised that as
the organisation was growing, it needed to create leaders for the future.

"The challenge was that as you scale up, how do you retain the DNA of a
smaller organisation and the agility that comes with it? In a meritocracy like
ours, it's easy to become transactional.
The company doesn't follow a set career path for all employees, instead
giving them the option of tailoring it as per their aspirations. The personal
development planning process starts with a dialogue about the past year,
the challenges as well as things the person did well and their aspirations for
the future.

Based on this, a development plan which takes the employee's strengths,

interests and aspirations into account is created. While the company has a
robust campus recruitment programme, preferring to take on candidates
who have done summer internships with the company, lateral hires aren't
uncommon at senior levels, especially when there are specific capability
gaps that need to be filled

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5 .EMPLOYEE BENEFITS PROVIDED BY MARICO

•HEALTH
•FINANCE
•EMPLOYEE ASSISTENCE
•TIME OFF
•SERVICE AWARDS
•EMPLOYEE ASSISTANCE PROGRAMME
•BANKING SERVICES

6.ORGANISATION CULTURE

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THANK YOU

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