Strategic Management Case

Study :
Emaami
Saira Mushtaq (57925)
Sadaf Kazmi(14511)
Nimra (13722)
Gulzaib (8839)
 Emami Group is an Indian multinational conglomerate company headquartered
in Kolkata, India. The company has seven manufacturing units across India and one
overseas. The company caters to a number of niche categories in the personal care and
healthcare segments. The company's products are available in 4.5 million retail outlets
across India.

Introduction Emami’s Few Products are

BoroPlus Navratna Zandu Balm Kesh King

Menthol plus balm Dermicool Fair & Handsome 7 Oils in One

Emami Golden Emami Naturally Emami Emasol

Diamond Shine Crème 21
Beauty Fair
 Strength
• Strong Brand Portfolio ,Consumer Awareness
• Emami’s association with Ayurveda-based products differentiate it from its peers
• Emami's products have been endorsed by celebrities like Amitabh Bachchan
• First mover's edge. It achieved this with its men's fairness cream “Fair and Handsome”
which is today valued at Rs 1,400 crore.
• Emami presented more than 60 countries across the world including Saarac, Ukraine,
Russia, USA etc
• The company has seven manufacturing units across India and one overseas unit.
• Ranked 106th among in Business Today's 500 India's Most Valuable Companies.
• Company’s huge dealer network helps in managing competitive challenges in FMCG
SWOT industry.
• Presence in digital market (Social sites)
Analysis • Emami Products have significant market shares i.e Boroplus 60% , Zandu13% and It’s
Navratna Oil enjoys 46% Market share.
• Current financial reports shows
• Significant increase in revenues from Rs 13,084 lacs to Rs 37,157 lacs.
• Net profit after tax also increased from Rs 1,786 lacs to Rs 4,286 lacs.
• The declaration of a dividend of Rs 4/- per equity share
• Emami acquired the heritage brand Zandu, "Kesh King, Creme 21, a German brand &
recently, ‘Dermicool’, one of the leading Prickly Heat and Cool Talc brands of India.
 Weakness
• The high turnover of employees at the lower levels is also a concern for
Emami. It can lead to higher salaries to maintain the talent within the firm.
• Emami products’ prices are slightly higher than competitors
• Emami stores are located in crowded areas and customers are exhausting
their time to wait for their turn to shop for products.
SWOT • Emami delivery services are slow it takes 10 to 15 days to deliver their
products
Analysis • As Emami manages its stores through a franchise system, there is a lack of
control by the proprietors.
• When it comes to supply chain, Emami has a great supply chain in India.
Whereas when it comes to stores outside India they need to be more
efficient.
• Inflation rapidly increases operating cost
 Opportunities

• Increasing government regulations are making it difficult for unorganized

players to operate in the Personal & Household Prods. industry. This can
provide Emami with an opportunity to increase its FMCG Sales.
• According to research, more than 89% of cosmetics users are looking for
natural and harmless substitutes in place of chemical and synthetic
cosmetics. There is a huge market for Emami Ayurvedic products.
SWOT • Digital marketing has changed the way brands communicate. Emami needs
Analysis to explore this.
• Increasing adoption of online services by customers will also enable Emami
to provide new offerings to customers in the FMCG industry.
 Threats

• Customer behavior is dynamic. No one can predict what customers think at a

point in time, changing customer preferences might be a threat for Emami.
• Un certain Political & Economic conditions negatively hit the profitability of
the company.
• Extremely tough competition amongst other FMCG companies.
• Competition from unbranded and local products
• The legal issue involving Emami & HUL damaged the brand's image & led to
SWOT negative publicity.
Analysis
 Weighted
Strengths Weight Rating Score
Strong Brand Portfolio 0.10 4 0.40

Consumer Awareness 0.08 4 0.32

Ayurveda-based Products 0.12 4 0.48

Celebrity Endorsements 0.08 3 0.24

IFE Mtarix First Mover Advantage (Specialized

Markets)
0.10 4 0.40

International Presence 0.08 3 0.24

Excellent Branding, Awareness, and

0.12 4 0.48
Distribution

Strong Dealer Network 0.12 4 0.48

Strong Digital Presence 0.20 4 0.8

Total 1.00 3.84
 Weighted
Weaknesses Weight Rating Score
High Turnover of Employees 0.20 2 0.4
Higher Prices Compared to Competitors 0.20 2 0.4
Store Locations in Crowded Areas 0.10 2 0.2

IFE Matrix Slow Delivery Services 0.20 1 0.2

Lack of Control in Franchise System 0.15 2 0.3
Inefficient Supply Chain for International
Stores 0.15 2 0.3
Total 1.00 1.8
 Weighted
Opportunities Weight Rating Score
Increasing government regulations
favoring organized players 0.20 3 0.6
Growing demand for natural and
harmless cosmetic substitutes 0.25 4 1.00
Potential of digital marketing to
EFE Matrix enhance brand communication 0.30 4 1.2
Increasing adoption of online services
by customers 0.25 4 1.00

Total 1.00 3.8

 Weighted
Threats Weight Rating Score
Changing customer preferences 0.30 1 0.3
Uncertain political and economic
conditions 0.20 2 0.4
Intense competition from other FMCG
companies 0.15 1 0.15
Competition from unbranded and local
products 0.25 2 0.5
EFE Matrix Legal issues impacting brand image and
0.10 2 0.2
negative publicity
Total 1.00 1.55
CPM Analysis
 Internal Factors + External Factors
Strong Brand Portfolio (Strength) +Increasing
government regulations (Opportunity)
Celebrity endorsements (Strength) +
Competition from unbranded and local products
( Threat)
TWOS Slow delivery services (Weakness)
+Increase adoption for online services
(Opportunity)
Strong brand portfolio (Strength) + High
price products (Weakness)
Increase adoption for online services
(Opportunity) + Inefficient international
supply chain (Weakness)
= Strategies
= Utilize Strong Brand Portfolio to
Comply with Increasing Government
Regulations
= utilize celebrity endorsements to
differentiate from unbranded products
= Improve delivery services to meet
customer expectations
= Utilize strong brand portfolio to
justify the high prices
= improve international supply chains
 Internal Factors + External Factors
Strong Brand Portfolio – Strength + Changing
Customer Preferences (Threat)
Emami's focus on Ayurveda-based products –
Strength + Demand for Natural Products -
opportunities
First Mover Advantage (Strength) + High
Competition (Threat)
TWOS Global Presence + Threat of local brands are High
(threat)
Digital Presence (Strength) + Online Market
(Opportunity)
Lack of control over franchise-operated stores can
affect the consistency of customer experience and
brand image (weakness) + Strong Distribution
Network (Strength)
High Competition in Local Market (Threat) +
High Prices (Weakness)
Strategies
Continuously innovate and adapt products to align with evolving
customer preferences and market trends.
Invest in market research and consumer insights to understand
changing needs and preferences.
Collaborate with Ayurvedic experts and research institutions to
enhance product development and credibility.
Invest in research and development to maintain product
superiority and stay ahead of competitors.
Collaborating with local players in international markets can
facilitate growth and market penetration.
Emami can leverage digital marketing to enhance brand
communication, engage with customers, and drive sales
The company's extensive dealer network enables efficient service
delivery and can helps manage competition in the personal and
household products industry.
Keep a close eye on local and unbranded competitors, and
implement strategies to differentiate Emami's products based on
quality, brand trust, and customer loyalty.
 Financial Strength
 Emami's financial performance seems to be strong, with increasing total
revenues and net profits. The company generated revenues of Rs 13,084
lacs and Rs 37,157 lacs for the respective periods, along with net profits
after tax of Rs. 1,786 lacs and Rs. 4,286 lacs. The declaration of a Second
Interim Dividend of Rs. 4/- per equity share reflects positive financial

SPACE stability.
 Environmental Strength:
MATRIX  Emami faces some environmental challenges that could impact its
FACTORS business. Customer behavior is dynamic, making it difficult to predict their
preferences. Uncertain political and economic conditions can negatively
affect profitability. The presence of tough competition from other FMCG
companies, unbranded and local products adds further challenges. The
legal issue involving Emami and HUL has damaged the brand's image and
led to negative publicity. Additionally, high inflation rapidly increases
manufacturing costs.
 Competitive Advantage:

Emami possesses several competitive advantages. Its association with

Ayurveda-based products aligns with current consumer preferences, giving
the company a differentiation factor. The endorsement of Emami's products
by renowned celebrities enhances brand value. Emami's focus on creating
SPACE brands within specialized markets and its efficient branding and distribution
contribute to its competitive advantage.
MATRIX
Industrial Strength:
FACTORS
Emami has a significant global presence, operating in over 60 countries. The
company's extensive manufacturing units and its ranking among India's most
valuable companies highlight its industrial strength. Emami's market shares
in various product categories demonstrate its competitive position in the
industry. The company's widespread distribution network and acquisitions of
well-known brands further enhance its industrial strength..
 SPACE FACTORS
Internal Strategic Position (+1 - +6) External Strategic Position (-1 - -6)

Financial Strength (FS) Environmental Stability (ES)

• Significant increase in revenues from Rs 13,084
lacs to Rs 37,157 lacs. +6
• Net profit after tax also increased from Rs 1,786
lacs to Rs 4,286 lacs. +6
• The declaration of a dividend of Rs 4/- per equity
share +5
• Dynamic customer behavior and changing preferences -
5
• Uncertain political and economic conditions -3
• Intense competition in the FMCG industry -4
• Competition from unbranded and local products -2
• Legal issues and negative publicity -3
• High inflation impacting manufacturing costs -3

6+6+5 = 17/3 = Average 5.6

-5-3-4-2-3-3 = -20/6 = Average - 3.3
Y-axis Score is +2.3
 SPACE FACTORS
Internal Strategic Position (+1 - +6) External Strategic Position (-1 - -6)

Competitive Advantage CA Industry Strength (IS)

• Association with Ayurveda-based products -1 • Global Presence +6

• Celebrity Endorsements -2 • Market Share +4

• First mover advantage in specialized markets -2 • Business Ranking +5

• Excellent branding, awareness, and distribution -1 • Eight manufacturing units, including one overseas unit.
(+4)
• Strong dealer network -1
• Extensive network, acquisitions of heritage brands like
• Digital Presence -1 Zandu and Kesh King (+5)
-1-2-2-1-1-1 =-8/6 = Average -1.3 +6+4+5+4+5 = 24/5 = 4.8
X-axis Score is +3.5
 FS
SPACE MATRIX +6
The SPACE Matrix analysis +5
would position Emami in the +4
"Aggressive" quadrant, +3
indicating a strong competitive +2
position and favorable industrial
conditions. +1
CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6
-2
-3
-4
-5
-6
ES
 Emami has expanded successfully in the Gulf region therefore on
the basis of this experience they were able to identify key factors
Conclusion required to expand in Russia, Egypt, Bangladesh, etc.
Conclusively, we can say that right now they are trying to sustain
their strategic edge in these countries.
Thankyou