PUNE INSTITUTE OF BUSINESS MANAGEMENT

Assignment 1
Marketing Management

SUBMITTED BY:
NIKHIL GUPTA
MBA MARKETIN-1
ROLL NUMBER - MBA18A27
OVERVIEW
Marico Limited is one of India's leading consumer products companies operating in the beauty
and wellness space. Empowered with freedom and opportunity, we work to make a difference to
the lives of all our stakeholders - members, associates, consumers, investors and the society at
large. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has
nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male
grooming, and fabric care. Marico's India business markets household brands such as Parachute,
Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and
Revive among others that add value to the life of 1 in every 3 Indians. The International business
offers unique brands such as Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic,
Isoplus, Code 10, Ingwe, X-Men and Thuan Phat that are localized to fulfil the lifestyle needs of
our international consumers. Charting an annual turnover of INR 63 billion (Financial Year 2017
- 2018) across our portfolio, Marico's sustainable growth story rests on an empowering work
culture that encourages our members to take complete ownership and make a difference to the
entire business ecosystem
BRANDS
 our consumers but also add value to their lives.
FINANCIALS
Sales Turnover: March 2018: Rs 6333 Cr
Net Profit: March 2018 Rs.814 Cr
During 2017-18, Marico recorded a turnover of INR 63 billion (~USD 982 Million) through
sales in India and other chosen emerging markets of Asia and Africa. Marico has nurtured over
25 brands in the categories of hair care, skin care, edible oils, health foods, male grooming and
fabric care. 
The India business, accounting for 78% of the consolidated revenues, markets household brands
such as Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar Naturals, Livon, Set Wet,
True Roots, Mediker and Revive that have added value to the lives of 1 in every 3 Indians.
Every month, over 155 million consumer packs reach consumers through a widespread
distribution network of around 4.9 million outlets. Marico’s focus on delivering sustainable
business and earnings growth has so far resulted in a healthy shareholder return of 26% CAGR
since listing in 1996.
PARACHUTE COCONUT HAIR OIL

A market leader in its category and one of our oldest brands, Parachute Coconut Oil today stands
for purity and quality. Over the years, the brand has seen a lot of innovations in packaging, sizing
and tamper-proofing. Parachute enjoys enormous loyalty in urban, semi-urban and rural market.
MARICO’S STRATEGY
 Presence in all segments at various price segments
 Grow Market- Conversion of loose oil customers to the branded products
PARACHUTE
 Started about 4 decades ago was not seen as a modern brand and 50 % market was
unbranded Hence in 1996 it was re-launched with sleek pack and youth appeal with many
innovative packing.
 At present it has a 60% share in coconut oil segment
 Parachute is one among India 's Top 100 Most Trusted Brands
 It is the world's largest packaged Coconut Oil Brand. 2004 data
BRANDING
 It has been a long road for Parachute (the first branded coconut oil in the Indian market)
and the journey began more than four decades ago
 Today the blue bottle is a strong metaphor for the Coconut Oil category and reaches 18
million households every year
 On the rational front, it represented the nourishment, proteins and vitamins and on the
emotional front it stood for nurturing, caring and a mother’s love
IMPROVEMENT IN THE FUCTIONALITY AREA
 Wide Mouth Jar, Easy Jar and the Flip Top pack with Tamper proof seal
 The Easy Jar positioned as the all season jar was launched as the ‘Kamaal ka Dhakkan’
mainly to address the North markets where severe winters make the hair oiling a
challenge
 The jar that offers the twin benefits of a wide mouth and has an easy pour cap which
ensure that the They changed pack shapes to one that is sleek, modern and aesthetic
 Flip top cap to ensure safety and purity of parachute oil
 Easy jar of parachute to facilitate usage during winters
 Parachute mini-a bottle shaped sachet sold at an MRP of Re 1
 20 ml parachute-a Rs 5 that enables loose oil users to upgrade
 Strong distribution network pack does not suffer seasonality
BRAND EQUITY
 In an age where hair care is largely associated with salons and shampoos, the company is keen
to establish the many benefits that hair oils offer: Stress relief, a cool head and a head full of hair,
everything that the urban Indian consumer wants to buy into.
Marico's marketing strategy has been different from the rest. It builds prototypes of its products
and launches them within a small segment of customers before going for a nation-wide launch.
For example, its Parachute Advanced Aromatherapy oil was first tested in Mumbai in the last
quarter. It has recently launched Parachute Advanced Ayurvedic Oil in the southern states. 
Marico's strategy so far has been to reach out to a broad base of customers, through brand
extensions and to keep its risk low with a range of brands within one category.
BRAND BUILDING
In April 2003, Marico reorganized its business and brought Nature Care, Health Care and the
International Business Group under a single division - Consumer Products.

This profit center comprised the operations of Marico Industries and Marico Bangladesh Ltd.
(MBL), a 100% subsidiary of Marico.

It manufactured and marketed ten brands-'Parachute', 'Saffola', 'Hair & Care', 'Shanti', 'Sweekar',
'Sil', 'Mealmaker', 'Oil Of Malabar', 'Mediker' and 'Revive'...
MARKETING STRATEGY
Marico's strategy was focused on increasing its presence across the entire hair oil segment by
launching value-added products and through brand and product extensions. At the same time, the
company had attempted to tackle the unorganized segment through low-cost and small-unit
packs.

Of the Rs. 1600 crore coconut oil market, the branded segment accounted for Rs 750 crore and
was growing at 6-8 % per annum. The loose segment constituted the remaining Rs. 850 crores...
PACKAGING
Parachute coconut oil choose from different pack sizes
Created the coconut oil usage explosion in consumer packs with HDPE
I think the biggest success of parachute is through innovations, and that happened in a category
like coconut oil, where there are very limited opportunities for innovation.
PRODUCT LIFE CYCLE
The various stages of Marico’s Parachute oil are as described below.
INTRODUCTION STAGE:
 Parachute entered the market safe in 1990s. During that time the hair oil sector was dominated
by unbranded oils. Marico saw the opportunity and hence came up with it brand ‘Parachute’
which became India’s first branded Hair Oil. It was also the first one to come up with attractive
packaging of oil in Plastic bottles. Parachute in its initial days (when it dealt only with coconut
oil) was successful in building a good connection with the mass, especially with middle class
households based on the concept of ‘100 % purity’ and ‘Grandma’s hair care solution’.
GROWTH STAGE:
 Parachute started facing competition from brands like Bajaj, Dabur, Keo-karpin etc. These
competitors forced parachute to launch new brand variants in other oil types. Around 10 years
back, Parachute showed emergence of competitive brands coming up with hair oils of different
type like jojoba, olive, almond, Alma etc. hence it launched its Parachute Advanced Oil series
with non-sticky scented coconut oil. It improvised on its product to win customers from
competitors.    

MATURITY STAGE:
 Parachute has generated loyal customers for itself. It is one of the leaders in the world of
branded hair care products. The brand recorded a volume growth of 10% during year 2012-2013.
Parachute is therefore in its maturity stage with a good amount of brand visibility. It should now
concentrate on retaining its loyal customers and target new markets. It has already started to
expand its international reach covering under explored markets like South Africa and Malaysia.
It also has taken over brands from Egypt and Bangladesh slowing expanding globally. It focuses
on targeting the youth with its innovative variants and juvenile appeal. Parachute has launched
variants targeting kids and middle aged people. It occupies the position of a trusted brand. 

DECLINE STAGE:
Parachute though has not seen any of its variant getting obsolete, Marico has hardly a few brands
in declining stage and now whose production is stopped. For example, Sweekar Oil.

BCG MATRIX

STAR
QUESTION
Parachute MARK
Saffola
Hair & Care
revive

CASH COW
DOG
Zatak
Mediker
Livon
Set Wet
If we correlate the BCG matrix to the Product Life Cycle curve, it can be analyzed the Parachute
Hair Oil is a well-established brand which targets all age groups and is positioned itself as a
natural product which offers nutrient value to hair; Parachute hair oils have been positioned as
everyday use hair care products. This played in favor of Parachute a few years back when there
were hardly any competitors as it gave the brand another name to hair oil in households. This has
given more flexibility and leverage to the brand from the beginning itself.
Due to the strong brand name and excellent marketing and branding strategies adopted by the
company the brand has been successful in maintain its market position. Introduction of the
competitive brand under the same segment has not much affected the brand value.
MARKETING STRATEGIES:
Innovation strategy:
Marico followed innovation as a major strategy in building Parachute brand. The following are
some example.
20 ml Parachute - a Rs 5 SKU that enables loose oil users to upgrade to Parachute.

Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of Parachute 

Parachute Mini - a bottle shaped small pack being sold at an MRP of Re. 1 

Easy Jar of Parachute to facilitate usage especially during winters 

The strategy followed by the company and the quality of the product offers a customized product
in all seasons, to grab the price conscious customers and to provide value for money.
Other extensions are:
Brand name: Parachute Advanced refined hair oil and Parachute Jasmine
Target audience: Young and appearance conscious consumer.
Positioning: Focuses upon the fragrance aspect of the oil.

Brand name: Parachute After shower Hair Cream

Target audience: Young men (SEC A, B)
Positioning: Focuses upon stylish look, non-sticky and nourishing aspect.

Brand name: Parachute Sampoorna

Target audience: Women customers
Positioning: Focus on providing strong hair.

Brand name: Parachute Natural shampoo

Positioning: On the platform of ‘Naturals’ which makes hair healthier.
PARACHUTE LOYALTY PROGRAMME
 
Har pack per paayiye points …aur points par paaiye aakarshak inaam
 
50 points- 1 Hair brush free 
150 points- 100 ml Parachute Hair Oil free
250 points- 100 ml Parachute Hair Therapy free
1000 points-
1 free visit to ―Kaya Skin Clinic

CONSUMER PROMOTIONS
 Champi booths at malls
 Spot buy discounts
 Surprise gifts

TRADE PROMOTION

 Point of Purchase Best Product display award at retailer level

 Jo dikhta hai woh bikta hai
 Trade Allowances
 Gifts or Attractive schemes to make the retailers and distributors to stock more
whichwould increase the sales
 Additional margins for the retailers who sell more
 Incentivizing the retailers and consumers to collect the parachute oil cans, jars, bottles for
recycling

 A Trade and consumer promotion. 

 Will act as a CSR initiative in conserving the resources by recycling. 
  Thereby creating a goodwill for Parachute brand in the society.

 Contest ‘s & Awards:

 Retailers Meeting the celebrity contest
 Retail Product push winner award
 Seller of the quarter 

COMMUNICATION STRATEGY

Coconut Dream:

 Mass communication on the platform of ‗caring ‘with mother daughter theme.

 Communication aimed at youth for nourishment (proteins and vitamins) New
Communication
 Mantra ― Pure coconut oil matlab parachute ―
 Communication like the "weight-test" (proving that pure Coconut oil is heavier than
impure oil).
 Synonymous with pure coconut oil the gold standard for purity.
 Effectively explain the benefits of various innovative packing (Flip top, wide mouth, and
tamper proof etc.)

CONCLUSION

Company Marico has strong and long term association with the retailer's in rural areas. 
Parachute is the most satisfied Brand/product, followed by Saffola, Silk & Shine Hair & Care,
and Sweekar Edible Oil & after Shower Gel.