Professional Documents
Culture Documents
SECTION-A
1. Overall Industry Overview
2. Top players in Industry
3. Industry Trends , Challenges faced
4. Recent Industry News
5. Govt Organization / Major Govt Policies
SECTION-B
1. Overview of Organizations from Official Website - Board Structure, History
2. Vision / Mission Statements, Important Policies, Code of Conduct
3. Brands / Products / Services Details
4. Prominen t Customers details
5. Financial Heal th / Statement (Brief P&L An alysis), Share Price Trend
6. Awards & Recognition, Specialities , CSR activities ,
7. Latest News - Pas t 6 months, Summary of Official Company Presentation (In
case availabl e)
SECTION-C
1. Select One Major Process (HR, R&D, Manufacturing, SCM, Marketing, Sales,
Service, After Sales, Customer Care etc.)
2. Prepare process details & Flow Chart of th e major activities
3. Major highlights of th e process
4. List down Standard Key Performance Indicators (KPIs ) related to the
process
Page 2
The Fast-moving consumer goods (FMCG) sector is the 4th largest sector of the Indian
economy. It is characterized by high turnover consumer packaged goods, i.e. goods that
are produced, distributed, marketed and consumed within a short span of time. FMCG
products that dominate the market today are detergents, toiletries, tooth cleaning
products, cosmetics, etc. The FMCG sector in India also includes pharmaceuticals,
consumer electronics, soft drinks packaged food products and chocolates. Since the sector
encompasses a diverse range of products, different companies dominate the market in
various sub-sectors. However, some of the top FMCG companies in India are- Dabur
(60%), Colgate (54.7%), and Hindustan Unilever (54%).
URBAN TRENDS
With rise in disposable incomes, mid- and high-income consumers in urban areas have
shifted their purchasing trend from essential to premium products. In response, firms
have started enhancing their premium products portfolio. Indian and multinational
FMCG players are leveraging India as a strategic sourcing hub for cost-competitive
product development and manufacturing to cater to international markets.
Page 3
FM CG M AR K ET I N I N DI A
The FMCG sector is one of the largest sectors of the Indian economy. According to an
FMCG industry overview, revenues of the FMCG sector reached $ 52.75 bn in FY18, and
are estimated to reach $ 103.7 bn in 2020. As consumption in India grows at an
unprecedented rate, the FMCG industry remains a key sector for investors.
Acknowledging these trends in the FMCG industry profile, the Government of India has
undertaken various initiatives to promote the sector. For instance, 100% FDI is permitted
in SBRT and cash-and-carry models of retail, and the minimum capitalization for foreign
FMCG companies to invest in India is $ 100 mn. Even the implementation of GST in
India has had far-reaching consequences for the sector, as the highest selling FMCG
products such as soap, toothpaste and hair oil now come under the 18% tax bracket (as
opposed to the previous 24%)
IN V ES T M E NTS IN F M CG I ND U S TR Y I N I ND I A
Favorable demand drivers such as rising income levels and growing urbanization, among
others, have recently encouraged major and diverse investments in the FMCG sector.
While top FMCG companies are expanding their capacity to feed the growing domestic
demand, homegrown brands have ventured into international markets. Some of these
include:
1. Patanjali- Their success has encouraged the brand to look at the international stage,
with plans to set up a 100% export-oriented manufacturing unit in Milan SEZ,
Nagpur
2. RP-Sanjiv Goenka Group- They has created a venture capital fund of $ 14.74 mn to
invest in FMCG startups. This move was made taking into account the capital
appreciation in the FMCG sector
Page 4
I. Hindustan Unilever Limited – Hath, Munh aur Bum!
Page 5
Hindustan Unilever Limited is India‟s largest fast moving consumer goods (FMCG)
company with a Historical presence in India of over 80 years. It is the largest in the
list of top 5 FMCG companies in India.
Nine Out of ten Indian households use one or more of HUL Brands. Divisions –
Home Care, Beauty & Personal Care and Foods and Refreshment – include a
portfolio of brands that serve consumers across the length and breadth of India.
Revenue: Rs 40,511 Cr
Employees: 5,645
Market Cap: 451,666 Cr.
Dividend Yield: 1.05 %
ROE: 81.95 %
Sales Growth (3Yrs): 6.89 %
Promoter holding: 67.18 %
Debt to equity: 0.01
HUL works to create a better future every day and helps people feel good, look
good and get more out of life with brands and services that are good for them and
good for others.
The Company has about 21,000 employees and has sales of INR 38,273 crores (the
financial year 2019-20).
VISION
Our vision is to grow our business, while decoupling our environmental footprint
from our growth and increasing our positive social impact.
Page 6
With over 40 brands across 12 distinct categories including Fabric Wash, Household
Care, Purifiers, Personal Wash, Skin
portfolio includes leading brands such as Surf Excel, Rin, Wheel, Sunlight, Vim,
Pureit, Lux, Lifebuoy, Dove, Fair & Lovely, Pond‟s, Vaseline, Clinic Plus, Sunsilk,
Indulekha, Lakmé, Pepsodent, Closeup, Axe, Brooke Bond, BRU, Kwality Wall‟s,
Knorr and Kissan.
Page 7
ITC is one of India's foremost private sector companies and a diversified
conglomerate with businesses spanning fast Moving Consumer Goods, Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The
Company is acknowledged as one of India's most valuable business corporations
with a market capitalization of nearly US$ 50 billion and a gross sales value of US$
10.8 billion (figures as on 31.03.2019). ITC was ranked as India's most admired
company, according to a survey conducted by Fortune India, in association with
Hay Group. ITC is the country's leading FMCG marketer, the clear market
leader in the Indian Paperboard and Packaging industry, a globally acknowledged
pioneer in farmer empowerment through its wide-reaching Agri Business, a pre-
eminent hotel chain in India that is a trailblazer in 'Responsible Luxury'. ITC's
wholly-owned subsidiary, ITC InfoTech, is a specialized global digital solutions
provider.
Revenue: Rs 51,321 Cr
Employees:
Market Cap: 320,094 Cr.
ROE: 22.69 %
Sales Growth (3Yrs): 7.25 %
Promoter holding: 0.00 %
Debt to equity: 0.00
Price to book value: 5.47
Page 8
Imperial Tobacco Company
The Company was incorporated on August 24, 1910, under the name Imperial
Tobacco Company of India Limited. It is the second largest in the list of top 5 FMCG
companies in India.
ITC Values
ITC believes that its core values of trusteeship, customer focus, respect for people,
excellence, innovation and nation orientation have been the guiding principles
behind the Company's phenomenal growth, helping it to become one of India's
most admired and valued enterprises.
ITC Mission
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value.
Page 9
Nestlé is the world‟s largest food and beverage company. The company has more
than 2000 brands ranging from global icons to local favorites, and is present in 191
countries around the world. After more than a century-old association with the
country, today, NESTLÉ India has a presence across India with 8 manufacturing
facilities and 4 branch offices. It is the third Largest in Top FMCG Companies in
India
Revenue: 12,117 Cr
Employees:
Market Cap: 139,532 Cr.
ROE: 45.30 %
Sales Growth (3Yrs): 11.37 %
Promoter holding: 62.76 %
Debt to equity: 0.01
Price to book value: 34.93
Nestle is the largest food company in the world and operates in list of categories in
consumer products as well as packed food. The food and beverage company has
over 2000 brands including coffee, bottled water, Kit Kat, soups, sauces and Maggi
noodles.
With more than 150 years of existence, Nestlé brand definitely deserves a spot in
top FMCG brands in India. With a market cap surpassing ₹ 1500 billion, Nestlé is a
warrior, survivor and its growth just gets higher & higher!
Page 10
Our Purpose
Enhancing quality of life and contributing to a healthier future. Driven by our
purpose we want to help shape a better world and inspire people to live healthier
lives. This is how we contribute to society and ensure our long-term success.
Our Ambitions
We have defined three overarching ambitions for 2030 which guide our work and
support the UN Sustainable Development Goals.
Find out more about our efforts in these areas in our impact.
Our Values
Guided by our values rooted in respect, we want to shape a better and healthier
world. We're continuing the legacy of our founder Henri Nestlé who created a life-
saving infant cereal more than 150 years ago.
Page 11
Britannia Industries is one of India‟s leading Top FMCG Companies with a 100-year
legacy. Britannia is among the most trusted food brands and manufactures India‟s
favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which
are household names in India. Britannia‟s product portfolio includes Biscuits, Bread,
Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk, and Yoghurt.
Revenue: 11,211 Cr
Employees:
Market Cap: 75,893 Cr.
ROE: 30.25 %
Sales Growth (3Yrs): 9.60 %
Promoter holding: 50.66 %
Debt to equity: 0.04
Price to book value: 17.84
Britannia is a brand which many generations of Indians have grown up with and our
brands are cherished and loved in India and the world over. Britannia products are
available across the country in close to 5 million retail outlets and reach over 50%
of Indian homes.
Britannia is a brand which many generations of Indians have grown up with and our
brands are cherished and loved in India and the world over. Britannia products are
available across the country in close to 5 million retail outlets and reach over 50%
of Indian homes.
Imagine Britannia.
The company‟s Dairy business contributes close
to 5 per cent of revenue and Britannia dairy
products directly reach 100,000 outlets.
Page 12
VISION
To dominate the food and beverage market in India with a distinctive range of
“Tasty Yet Healthy” Britannia brands.
MISSION
To dominate the food and beverage market in India through a profitable range of
“Tasty yet Healthy” products by making every Indian a Britannia consumer. “We
want to be part of our consumer- at home, out of home, a natural part of his life”.
Page 13
Parle Agro, a pioneer in the Indian beverage industry, has been creating innovative
products and iconic brands since 1985
Headquartered in Mumbai, with over 4000 employees, Parle Agro is the largest
Indian beverage company.
Our strength lies in establishing new categories, building brands and capturing
market share within those categories. Our bevy of brands includes Frooti, Appy,
Appy Fizz, Bailley, Bailley Soda, Cafe Cuba, Dhishoom and Frio.
We have always been passionate about building our own brands. We like to create,
and we like to nurture what we create. Fueled by innovation that is engrained in the
business DNA, our focus and vision is making Parle Agro, the No.1 beverage
company in India.
Page 14
India‟s FMCG sector has undergone a substantial transformation in the past few
decades owing to a number of factors such as rising income levels, changing
consumer behavior, and urbanization. The future of the industry is quite positive
also as major players seem to gain huge post GST implementation.
However, with all these developments in the industry has come a wide
range of other products that compete for customer loyalty and attention.
Here‟s a glimpse at the trends for the F MCG market in 2020.
Digitalization
People in rural areas will have easy access to online shopping on various e -
commerce platforms due to growing internet penetration. Availability of online
payment options will lead to increase in orders from tier 2 and 3 cities.
Family-Focused Shopping
Consumer behavior is hard to predict because it s keeps on changing with time.
However, after analyzing a couple of patterns in the past, it seems that some of
them will continue to stay throughout 2020 also. Consumers will continue to buy
family packs and combo offers since these save their time and money.
Foreign Brands
Foreign brands continued to rise in popularity in 2019 owing to their huge
demand among Indian consumers. This has actually force d both local as well as
domestic industries to up their game and provide better alternatives to these
foreign brands without compromising on quality.
India‟s FMCG sector will continue to grow exponentially with these trends
setting in 2020.
Page 15
Big Data
Data e xpl o si on i s u n de r wa y a s th e abi l ity t o a cqu i r e , st o r e , an d pr o c e s s dat a
c on ti n u e s t o i mpr o v e e xp on en ti al l y. T h e F MC G w o rl d al r ea dy h ad w e e kl y
c on s u m e r s al e s, b r a n d t r ac ki n g, c on su m e r pan el s , sh o pp e r data fr o m f ri en dl y
an d w el l - c omp en s at ed r et ai l er s an d an oth e r f ew h u n d r ed me tri c s d ep en di n g
on wh i ch dat a/an al yti c s o r gan i z ati on y ou tal k t o . 95 % o f th e da ta b ei n g
gen e r at ed an d s ol d to e ag e r m a rk e te r s an d an al ys ts i s u sel e ss . Th e sm a rt e r
o rga n i z ati on s wi l l bu y on l y th e r el e va n t da t a (m an ag e i n f o rmati on c ost s) ,
ded u c e th e c o r r e ct li n kag e s t o c on su m e r b eh avi o r an d u s e i t e f f ec ti vel y to
de v el op p r odu ct s , m an ag e t rad e a n d c o mmu n i cat e e ff e cti v e l y t o c on su m e r s.
Social Media
Information now moves at a rapid speed. A tweet, FB post or a Y ouTube video can
go viral in hours. No longer can an organization sell a product that was unsalable
in a developed market due to health concerns in another less developed market as
regulations had not caught up. Regulations will take the time to catch up b ut
consumer information is just a Google search away. Information dissemination will
be rapid and with no place to hide. Smarter brands will employ innovative
methods to use this effectively to reach globally while limiting brand
communication costs.
Ageing
How different would a supermarket product range look if everyone shopping there
was 50+? This demographic has more money and will place a higher value on food
quality. The challenge will be for brands to appear relevant to this aging
demographic while being „cool‟ enough to attract the younger consumers.
Page 16
i. FMCG firms see top line erode as virus batters sales
ii. HUL's covid-19 update: A reality check for investors
iii. Production at 80-90% of normative levels: Hindustan Unilever
iv. FMCG revenue to de-grow 2-3% in FY21: Crisil Ratings
v. Britannia Industries March quarter profit up 26%
vi. Prolonged lockdown pushed up grocery bills: Survey
vii. HUL CMD Sanjiv Mehta sees demand for consumer goods reviving by 2021
i. 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.
ii. 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.
iii. 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.
iv. The GST is expected to transform logistics in the FMCG sector into a modern and
efficient model as all major corporations are remodeling their operations into larger
logistics and warehousing.
v. The government has allowed 100 per cent Foreign Direct Investment (FDI) in food
processing and single-brand retail and 51 per cent in multi-brand retail.
Page 17
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
as Parachute Beliphool Lite, Parachute Advansed, Parachute Cooling Hair
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 (healthy edible oil) and Set Wet Deodorants in 2013. Our journey in
Bangladesh is as follow-
Incorporated in 1999
Started operations in 2000
Marico Bangladesh listed on Dhaka and Chittagong Stock Exchange in 2009
Launched Hair code Hair Dye in 2009 and achieved a market share of over 15% in its
first year
Launched Parachute Advansed Cooling Hail Oil in 2011
Started bottling at Mouchak, near Gazipur in 2002 and copra crushing manufacturing
in Mahona, Bhavanipur in 2012
Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon
Launched Nihar shanty Badam amla and Hair Code Keshkala in 2014
With over 25 years of experience in the beauty and wellness industry and with a presence in
chosen emerging markets across Asia and Africa. Marico Limited has emerged as one of
India's leading consumer products companies. It has an extensive portfolio spanning hair
care, skincare, edible oils, healthy foods, male grooming and fabric care.
Page 18
Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Anand Kripalu
Chairman and Non-Executive
Managing Director, CEO Independent Director
Director
Page 19
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.
Marico launches Hair & Care, non-sticky hair oil repositioning the market
leader through contemporary packaging. Sweekar sunflower oil goes
national.
The year marks another innovation, Revive cold water starch makes
starching cottons more convenient for the consumer.
Page 20
Nihar enters the Marico fold.
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 breakfast, Masala Oats in India.
India's Gen Next gets styled by Marico as it launches its male grooming
brand, SetWet.
Page 21
Vision of the company:
The Marico Mission 2020 is to provide the nation with First: a belief that innovation is
Possible and is the way to leapfrog India into the center stage of global business
Leadership, and Second: a framework to leverage innovation for quantum growth.
Page 22
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.
Page 23
Our India business market has nurtured various trusted household brands such as Livon,
Parachute Advansed, Set Wet, Saffola that are not just bought by our consumers but also add
value to their lives.
Hair Serum
Livon Hair Serum
Hair & Care Silk n Shine Leave-In Hair Conditioner
Page 24
Page 25
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well -
established distribution network, intense competition between the organized and unorganized
segments and low operational cost. Availability of key raw materials, cheaper labor costs and
presence across the entire value chain gives India a competitive advantage.
The consumers of FMCG industry still want to go to traditional shop for purchasing household
consumables; supermarket is the least preferred by the consumers. There is not much difference
in the perspective of urban consumer and rural consumer; they are able to realize the need of
the product, extensive awareness of the product, and suitable information sou rces of the
product. They are able to collect information of the product through Television advertisements.
Consumer prefers the product, making the purchasing decision and expressing the satisfaction
level. In the post-purchase satisfaction in consumers of predominant brand image and quality of
the product is important. The royalty of consumer purpose is very high, so their strength and
their expectation are also maximized. The democratic background of the rural consumer plays a
vital role in determining the behavioral aspect as well as the royalty of brand and they prefer
purchasing of bath soaps mostly from convenience store or neighbor retail store. Rural buyers
perceived that TV commercials followed by print advertisements and word of mouth plays a
significant role for taking the decision to purchase these FMCGs. Further, they consider their
own experience, display at shops, incentive schemes for the purchase of FMCGs, where they do
not fully agree that advice of beautician influences their decision towa rds the purchase of these
FMCGs.
The brand loyalty in this sector is very weak as consumers do not stick to one brand only if a
certain brand is not available to them they will definitely switch to another brands‟ product.
Lifestyle and behavior of a consumer affect its buying behavior as few consumers find a
particular brand as a part of their life so their brand loyalty is with that brand only.
They won‟t prefer any other brand.
Consumers of FMCG prefers to buy the products once in a month, most of them find this
pattern easy for their lifestyle.
Page 26
Page 27
OF MARICO
Page 28
RECOGNITION
Marico Bangladesh Limited won the “Certificate of Merit” award under the ‘Manufacturing Category’ in the
ICAB’s (Institute of Chartered Accountants, Bangladesh) National Award for Best Presented Annual Report.
The honorable Finance Minister Mr. Abul Maal Abdul Muhith handed over the award to Mr. Elias Ahmed
FCMA, Chief Financial Officer, Marico Bangladesh Limited
Our Parachute Advansed brand was awarded as a SUPERBRAND by Bangladesh Brand Forum which is a
testament to the enduring equity and quality of the products from the Parachute house of brands.
Page 29
AWARDS
II. Parachute: Marico owes a lot of its success to the brand of coconut oil Parachute which
made it a household name and increased the trust and goodwill of customers and
stakeholders. The company used the oil and started developing a number of variants for
it such as hair oils, oil-based hair gels and serums etc. thus using this popular brand to gain
inroads into various segments.
III. Targeting: Most of Marico‟s brands look at niche segments in crowded markets spaces.
For example, Saffola looks at heart health in the crowded edible oils market, Mediker at
the removal of lice in a shampoo market or Livon at providing smooth hair. All these, as
well as other top-selling products of the company, look at targeting
niche needs successfully.
IV. Focus on unwanted categories : Marico always tries to look at categories which
multinational companies may not find interesting like anti-lice shampoo, fabric
conditioner or ethnic hair care categories. What multinationals perceived as fringe
categories are targeted by the company as primary categories thereby helping them to
circumvent unnecessary pressures of competition to great extent?
V. Divers ifica tion: Most of Marcos 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 which
started off as an edible oil today has salt, wheat flour additive, and even oats. This
appetite for diversification is resulting in the steep growth of the brands.
Page 31
CSR KEY FOCUS AREAS
Page 32
Marico SWAPNO Program
Page 33
Marico Adamya Program
Taking cognizance of the fact that there are 1 million differently abled youth in Bangladesh,
Marico along with Adamya Foundation (a non-profit organization), enabled them to find
sustainable and meaningful employment through skills training and capability development. The
partner in this program is Adamya Foundation, a small non-profit organization which has been
working solely on capability development of physically challenged persons as a pilot of this
program we started with the aim of including persons with speech and hearing disabilities within
our own business operations. We adapted our merchandising training for 20 young persons with
speech and hearing disabilities and over a month conducted the training with the help of teachers
from Dhaka Badhir High School instructed the participants through sign-language. The training
also included market visits where the participants were given a real life demo of the “Day of a
merchandiser”.
After the training there was a competitive
assessment and 14 of the trainees are now working
as Marico merchandisers. The essence of the Marico
Adamya program is livelihood or employment has
to be competency based and not mere
philanthropy.
Page 34
Parachute, Saffola make Marico a money making magnet: Experts tell why
THU, APR 04, 2019
Marico will post double-digit constant currency growth for rest of FY20: Vivek Karve,
CFO
AUG 07, 2019
Doubling Purchases will create Artificial Demand and create situational shortage: Harsh
Mariwala, Marico
APR 01, 2020
HUL, ITC, Parle Products, Britannia, Marico are expanding production beyond pre-Covid
levels.
Jun 12, 2020
02 Jul 2020
Page 35
What Is Marketing?
Every product we buy, every store we visit, every media message we receive and every choice
we make in our consumer society has been shaped by the forces of marketing.
“The management process responsible for identifying, anticipating and
satisfying customer requirements profitably.”
Why marketing?
Many organizations – especially small firms - are already marketing without realizing it.
You might not be advertising your services, but you probably do make an effort to know your
customers well. Your instincts tell you that figuring out what every customer wants, and meeting
those expectations, will keep you in business. You know that you need to improve and extend
existing products, and sometimes develop new ones.
If you think marketing isn't important for start -ups, think again.
Marketing drives sales for businesses of all sizes by ensurin g that
customers think of their brand when they want to buy. Marketing helps
a new business to become known, and to attract and retain customers
so it can survive and grow.
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At MARICO
Page 37
I
The first step in creating your marketing process is to highlight the mission statement of
the org.
All of your marketing efforts will revolve around ful filling that statement for your
customers.
All of your marketing efforts should relate back to fulfilling this mission o r the goals that
have been set. Define the goal behind your marketing process .
The Marico Mission 2020 is to provide the nation with First: a belief that innovation is
Possible and is the way to leapfrog India into the center stage of global business
Leadership, and Second: a framework to leverage innovation for quantum growth.
One out of every ten coconuts grown in India is used by Marico – the statement in
itself surmises the strength of Marico Limited. Marico is an Indian FMCG company. It
was setup in 1991 in Mumbai by Harsh Mariwala. Marico deals in production of
personal care goods, oils and male grooming products too. Marico is known as a
pioneer in most o0f the product categories it operates in. Marico‟s leading brands
also retain leadership and highest market share I their respective product domains,
like 17% growth added in Hair Oils segment in last financial year. Marico follows the
following core values in all its business operations: Boundarylessness, opportunity
seeking, innovation, transparency & openness, consum er centric, bias for action,
excellence and global outlook
Page 38
II
The next step in creating your marketing process is running an analysis for your marketers. You
have three options to choose from:
i. A SWOT analysis. These analyses run through the internal and external strengths, weaknesses,
opportunities and threats that your organization faces.
ii. The 5C‟s analysis. The 5C‟s analyses focus on the company, collaborators, customers,
competitors, and climate of your marketing.
iii. A PEST Analysis. The PEST analysis focuses on more environmental factors like politics, the
environment, social climate, and technology.
Page 39
III
Now that you have a full analysis of your organization and your industry, you can
begin to shape your marketing strategy.
To start finding your target audience ask your marketers the following:
Who is already a part of our existing audience?
Who responds best to our efforts?
Why do people use our product or service?
What type of problem do they experience?
Parachute hair oil manufacturer, Marico Limited would focus on healthy foods as part of its
three years growth strategy, reported a leading national business daily.
Healthy food is still a modern trend, believes Marico. Many companies in the packaged
foods sector have been trying to penetrate in the market but there is still no incumbent
player. According to market observers, Marico may give tough competition to existing
players.
Marico Limited is one of India's leading consumer products companies operating in the
beauty and wellness space. Company's principal products include edible oils and value-added
hairoils.
It offers various brands in the categories of hair care, skin care, health foods, male grooming
and fabric care. Marico Limited is also a good wealth creator for investors in the share
market.
The stock has given a return of 20% in past one year and nearly 160% in three years. The
stock traded on its fresh 52-week high of Rs 330.1 per share in the July 4 trading session.
Page 40
Ensuring Your Marketing Goals Contribute to the Bottom-line
Let‟s say your overarching business goal is to have 20 million in revenue by 2020.
In order to increase revenue, you have to increase sales. In order to increase sales, you‟ve got
to increase leads coming into the marketing funnel. This is where you come in.
You‟ve identified that you need to bring in 1,000 leads per month. Working back from there
helps you identify the one lead metric to focus on.
Your website is the largest lead generator, so to increase the number of leads; you‟ve got to
increase traffic. Say you get 5,000 website visitors each month; is it possible to convert 20
percent of them?
Likely not. In reality, a 2-5 percent conversion rate is more accurate.
To hit your goal of 1,000 leads, you need between 20,000 and 50,000 website visitors. Now
you‟ve found the one metric to focus on. Every activity you do should focus on increasing
the volume of website visitors from 5,000 to 20,000 (to hit a 5 percent conversion rate).
Set a Budget
The last step in your marketing strategy is setting a budget up. Your budget will determine
what resources and strategies you use throughout the year.
There are four ways you can set a budget for the year:
1. Percent of Revenue. This is where the revenue that your organization brings in determines
what your budget will be.
2. Top-Down. This is where your CMO or boss decides what your marketing team will spend.
3. Competition Matching. This type of budget is based on trying to reverse engineer what
your competitors are doing.
4. Goal Driven. This type of budget is based on the goals that you have set for the year. The
amount you spend on each project will depend on the kind of goal you need to reach.
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IV
The next step in your marketing process is going to be building your marketing mix.
This is usually broken down into the four P‟s: Product, Price, Promotion, and Place.
I. Product - The product of your marketing mix is going to refer to how the thing that your
company is selling is produced. It includes things like branding, packaging, quality of the product,
features and more.
II. Price - Price in a marketing mix refers to how much your product or service costs. It also
includes things like the discounts your company may offer, and its perceived value.
III. Promotion - Promotion is how your organization sells the product to your target audience.
This includes things like advertising channels, public relations, sales and publicity efforts that sell
your product.
IV. Place - Place refers to where your product or service is produced. This could involve
distribution channels, outlet locations, how your product is transported and stored.
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V
The next part of your marketing process is determining how to use it when you execute your
projects. Here is how each part of your marketing execution can be used.
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VI
The last step in your marketing process is to measure and record the efforts of your marketing
projects. This is the data that you will gather and show upper management to prove that your
work is making a positive impact.
Some possible metrics that you may want to track are:
I. Social shares.
II. Link clicks.
III. Email opens.
IV. Conversions.
V. Engagement rate.
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Marketing Mix of Marico analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Marico marketing strategy. As of 2020, there are several marketing
strategies like product/service innovation, marketing investment, customer experience etc. which
have helped the brand grow.
Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps)
is the widely used framework to define the strategies. This article elaborates the product, pricing,
advertising & distribution strategies used by Marico.
Let us start the Marico Marketing Mix & Strategy:
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Marico Place & Distribution Strategy:
Following is the distribution strategy of Marico:
Marico is present in more than 25 countries. It acquired Nihar in India, Fiancée & 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.
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1. Massive distribution network 1. Largely dependent on Saffola
2. Strong presence in Asia and Africa And parachute.
3. Strong financial performance 2. Limited global presence
4. Advanced quality check systems 3. Heavy dependence on
5. Gender diversity in leadership roles Monsoons.
Strengths Weakness
Opportunities Threats
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1. Strong 1. 1. Increase in 1. Focus on 1. Legal battles 1.
government Implementation disposable digital for trademark Environmental
at the center of GST in India income and consumer and infringements protection
in India to drive discretionary employee and and
ensures growth for the spending by engagement advertisements sustainability
political organized the Indian initiatives
stability sector middle class
2.Expansion segment
potential in
countries with
good political
relations and
high
expatriate
population.
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of MARKETING
Marketing KPIs (Key Performance Indicators) are specific, numerical marketing metrics
that organizations track in order to measure their progress towards a defined goal within
your marketing channels.
When it comes to setting and tracking your marketing KPIs, many marketers and business owners
are fully aware of the usual suspects.
I. Sales Revenue
II. Cost Per Lead
III. Customer Lifetime Value
IV. Inbound Marketing ROI
V. Traffic-to-Lead Ratio (New Contact Rate)
VI. Lead-to-Customer Ratio
i. Key performance indicators (KPIs) measure a company's suc cess versus a set of
targets, objectives, or industry peers.
ii. KPIs can be financial, including net profit (or the bottom line, gross profit
margin), revenues minus certain expenses, or the current ratio (liquidity and cash
availability).
iii. KPIs can also be more anecdotal, measuring foot traffic in a store, employee
retention, repeat customers, and quality of customer experience, among others.
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Marico is on e of India's leading Consumer Products & Services companies in the
global beauty and wellness space. Marico is present in more than 25 coun tries
across Asia and th e African continent. Turnover of INR 4596 crore in Marico‟s
sustainable competitive advantag e Backw ard integration: Supply chain activ itie s
Distribution networ k Innovation in packagin g Branding Overall business growt h
Valuable Rare Costly to imitate Non subs titutabl e Marico achieved revenue f rom
operations of INR 45 96 crore(USD 851 million) during FY13, a growth of 1 5%
over FY12. The volume growth was at 1 2%. .
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