Documente Academic
Documente Profesional
Documente Cultură
Submitted By:
Sagar Awale (11020541118) Tushar Jagtap (11020541136)
2011-13
Marico has strong presence in Indian market & selling skin care, hair care, edible oil products like parachute, Medicare, manjal, saffola & oil of malabar.
2. International Business Group International FMCG business.
Marico's branded products are present in Bangladesh, other SAARC countries, the Middle East, Egypt, Malaysia and South Africa. The Overseas Sales franchise of Marico's Consumer Products is one of the largest amongst Indian Companies and is entirely in branded products and services.
3. Kaya Limited - A chain of skin care clinics.
Marico is also present in the Skin Care Solutions segment through Kaya 100 Skin Clinics. These clinics are spread in India, Middle East and Bangladesh. In addition, Marico also acquired the aesthetics business, of the Singapore based Derma Rx Asia Pacific Pte. Ltd.(Derma Rx), under the Kaya portfolio.
Market Share
Brand
Category
Market Share
Parachute
Coconut oil
46%
Saffola
53%
Mediker
Anti-lice treatment
96%
Revive Parachute jasmine, Shanti-alma, hair care, Nihar. Parachute hair cream
80%
Hair oils
22%
27%
Marico Highlights:
1 out of every 4 Indians is a Marico consumer. Marico distribution network covers over 33 lacks retail outlets.
Most Marico brands enjoy a leadership position in their respective categories. Parachute is the worlds largest coconut oil brand.
For Marico, going global is more than a means of opening up new avenues of growth. In roughly 13 months, between January 2010 and February 2011, fast moving consumer goods company Marico has snapped up four international acquisitions which include brand Code 10 (Malaysia), Derma Rx (in Singapore via wholly-owned subsidiary Kaya Ltd), Ingwe in South Africa, and an 85 per cent stake in International Consumer Products Corporation (ICP) of Vietnam. Thats one new addition every three months or so. For Marico which started its journey as Bombay Oil Industries in a traditional commodity-driven business going global is not just a means of opening up new avenues of growth but also an opportunity for cross-border learning. That, in part, explains the shopping spree, and the amazing growth of its International Business Group (IBG). With a footprint in West Asia, North Africa, South Africa, Bangladesh, Malaysia and now Vietnam, the division has grown from Rs 96 crore in 2004-05 to Rs 734 crore in 2010-11. Today, Maricos international business fetches almost a quarter of the groups revenues estimated at Rs 3,300 crore for 2010-11, thanks to a judicious mix of organic (two-thirds of the IBGs revenues) and inorganic growth. The Mumbai-headquartered company started off by exporting its flagship coconut oil Parachute brand across the subcontinent and in West Asia in the early 1990s, though its real foray as a serious investor overseas happened more recently, in 2000 in Bangladesh, when it set up a manufacturing facility for Parachute oil just outside capital Dhaka. Bangladesh brings in the lions share of IBGs revenues at over 50 per cent, with West Asia (currently present in the Gulf Cooperation Council countries, Yemen, Sudan and the Levant region) bringing in another 30 per cent. The balance is contributed by the other geographies where Marico has a footprint, namely, Egypt, South Africa, Malaysia and Vietnam.
These acquisitions have also brought more than six new brands under the Marico umbrella, significantly adding to the companys international offerings that comprised only one brand (Parachute) till about 2005. However, the companys revenue mix is still extremely dependent on Parachute (hair care) and Saffola (edible oil), its top grossers, which together bring in close to 60 per cent of Maricos overall revenues.
Demographic Segmentation: Target: Age group from 10 to 60 years. The youth which are style and appearance conscious will be targeted. The burgeoning pie of middle class population in Egypt comprising of nearly about 70% will be the most preferred target segment. Women of all ages in both urban and rural population.
Psychographic Segmentation: Target: The target segment will be ambitious youth of the country. The Middle income group will be targeted. Positioning: Positioned on the platform of purity.
SWOT Analysis:
Strength
Market leader in its category. Brand has sought to remain relevant and differentiated through a slew of initiatives. One of the most recognized and trusted brands.
Weakness
Parachute Hot Oil should be a seasonal product and should be sold in winters and not during summers in places where it gets very hot. Innovations like personal massager not available. The original parachute oil solidifies in winter season.
Threat
Many players are entering the market. Parachute as a brand is positioned as a coconut oil. Competitor brands are communicating the advantages of using oils that are made of badam, amla, mustard, jojoba etc.
Opportunity
Parachute can get into skin care by introducing oils for application on the entire body. Launch variants that have not only coconut but also other natural ingredients that benefit the hair.
Porter Analysis:
Threat of Substitutes: Traditionally Egyptian people use jojoba, badam oils. Competitor brands are communicating the advantages of using oils that are made of badam, amla, mustard, jojoba etc. These can prove as the substitutes to the coconut hair oil. Threat of new entrants: Parachute has more than 50% market share. The established companies have a very huge base of loyal customers which will create entry barrier to any new entrant in the market. Bargaining power of Buyers: Due to the availability of multiple products in the market the buyer is in a better position to bargain in the market. Bargaining power of Suppliers: