COMPANY ANALYSIS ON MARICO Submitted by: Sukumar Macherla
OVERVIEWMarico is one of Indias leading Consumer Products & Services companies in the global beauty andwellness space. From its foundations, Marico has worked outside the box, to bring innovation to itscustomers through the careful creation of continuous and sustainable change.Today, 1 out of 3 Indians uses a Marico product. From cooking oil with LoSorb Technology, to ricethat keeps you active, personalised skinscription services and hair oil that comes with a battery-powered head massager, Marico believes that it pays to think differently. At our offices, everyone isa member, not an employee. We have a flat organisational structure, with just five levels between theManaging Director and the shop floor operator. We believe in transforming the lives of allstakeholders be it our suppliers, farmers, distributors or shareholders by helping them maximise theirtrue potential and it truly articulates the true Mariconian spirit – to be more. Every day.Marico is present in more than 25 countries across Asia and the African continent. The companyrecorded a turnover of Rs. 40.0 billion (~USD 729 Million) in 2011-12. Our vast portfolio ofenduring brands such as Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive andManjal are leading household names today. In addition , the company has recently acquired theerstwhile personal care business from Reckitt Benckiser. Marico now owns popular brands like Set
Wet, Livon, Zatak , and other personal care brands thereby strengthening its portfolio for the youthand creating a significant presence in the male grooming and post hair wash segments. Maricosinternational portfolio includes brands like Fiancée, Haircode, Camelia, Aromatic, Caivil, Hercules,BlackChic, Code 10 and Ingwe. We are also present in the Skin Care Solutions segment throughKaya Skin Clinics in India, Middle East and Bangladesh and Derma Rx in Singapore. Our consumerstranscend countries and customs. We are a company that believes in challenging the status quo, tocreate growth and continuity in change. The company was founded in 1857 By Kanji Morarji and is headquartered in Mumbai ,India. Marico Limited, together with its various consumer goods and services in India, the Middle East, Asian countries, Egypt, and the United States. The company provides coconut oils, edible oils, hair oils and other hair care products, fabric care products, processed foods, soaps, and baby care products, as well as skin care and ayurvedic products. VISION & MISSIONVISION Consumers: For they are the reason we exist Membership: For a sense of ownership empowers us. Excellence: For it unleashes our potential Wealth: For on it hinges our growth Innovation: For it gives wings to ideasMISSION 2020
The Marico Innovation Foundation’s mission 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. GOALS AND OBJECTIVES Company commit itself to improving the quality of peoples lives in several parts of the world, through branded Beauty & Companyl products and solutions. Company shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances . Company shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services. Company shall develop, in parts of the world beyond the Indian Subcontinent, a franchise for the branded products and services. Company shall aim to be a leader in each of its businesses through heightened sensitivity to consumer needs, setting up of new ideas. Company shall share prosperity amongst members, shareholders and associates, who contribute in improving equity and market value. Company shall acquire the status of a friendly corporate citizen, contributing to the betterment of neighborhood communities, where Company are significantly present.GROUP EXECUTIVE COMMITTEEHarsh Mariwala - Chairman & Managing DirectorSaugata Gupta - CEO - Consumer Products BusinessVijay Subramaniam - CEO - International Business GroupAjay Pahwa - CEO - Kaya LtdMilind Sarwate - Group CFOEXECUTIVE VICE PRESIDENTSAshutosh TelangB. Sridhar Chaitanya DeshpandeDebashish NeogiSameer Satpathy
Sudhakar MhaskarSuresh JagirdarVivek KarveJohn MasonSyam PrasadBOARD OF DIRECTORSAnand Kripalu - Non-Executive and IndependentAtul Choksey - Non-Executive and IndependentB.S. Nagesh - Non-Executive and IndependentHarsh Mariwala - Chairman & Managing DirectorHema Ravichandar - Non-Executive and IndependentNikhil Khattau - Non-Executive and IndependentRajeev Bakshi - Non-Executive and IndependentRajen Mariwala - Non-Executive (Promoter)
INDIAN BRANDSOVERVIEWOver the past 20 years, Marico has been continually improvising and building new brands.Maricos Consumer Products Business houses well-known brands such as Parachute, Saffola,Hair & Care, Nihar, Mediker, Revive, among others, which occupy leadership positions in mostcategories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium RefinedEdible Oils, niche Fabric Care etc. With the acquisition of the erstwhile personal care businessfrom Reckitt Benckiser Marico now owns popular brands like Set Wet, Livon, Zatak , and otherpersonal care brands thereby strengthening its portfolio for the youth and creating a significantpresence in the male grooming and post hair wash segments. Every month, over 70 Millionconsumer packs from Marico reach approximately 130 Million consumers in about 23 Millionhouseholds, through a widespread distribution network of more than 2.5 Million outlets in Indiaand overseas.PARACHUTE COCONUT OILA market leader in its category and one of our oldest brands, Parachute coconut oil today standsfor purity and quality. Over the years, the brand has seen a lot of innovations in packaging, sizingand tamper-proofing. Parachute enjoys enormous loyalty in urban, semi-urban and rural sectors.SAFFOLASaffola is a heart care brand in the foods category in India. It has several products in its portfoliowhich include edible oils, functional foods, rice and salt. Saffola is known to be a brand which isgood for heart and recommended by doctors*. For the last 10 years, Saffolalife has beeneducating Indians on preventive heart care through the year.
Since risk factors of Cardio Vascular Diseases (CVD) start early in India and prevention of thesediseases requires an integrated life course approach, Saffola has over the years built anecosystem which works actively towards adopting a healthier lifestyle.SAFFOLA OILSNew SaffolaThe recent understandings in the role of oil in cardiovascular diseases have shown benefitsattached with MUFA. The MUFA combined with the proven cholesterol reducing benefits ofOryzanol resulted in formulation of New Saffola. New Saffola contains High Oleic Safflower,which is also known as Kardi Oil and Rice Bran Oil. New Saffola contains almost 60% MUFAalong with Oryzanol and Vitamin E. New Saffola provides the benefits attached to MUFA alongwith the proven cholesterol lowering effect of Oryzanol.Saffola comes with LoSorb Technology, due to which oil gets absorbed less, reducing oilconsumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and yourfamily to take care of your heart by using less oil, following a low saturated fat diet with regularexercise and a balanced lifestyle.Saffola GoldStudies have shown that a right combination of Safflower Oil and Rice Bran Oil is moreeffective in reducing cholesterol than each of the oils singly. Saffola Gold contains Rice Bran Oiland Safflower oil, which is also known as Kardi Oil. The heart healthy nutrients in Rice Bran Oilsuch as oryzanol are known for their cholesterol lowering ability. Safflower oil has the highestlevels of Linoleic acid, an omega-6-polyunsaturated fatty acid, which is well known in reducingcholesterol levels.Saffola comes with LoSorb Technology, due to which oil gets absorbed less, reducing oilconsumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and yourfamily to take care of your heart by using less oil, following a low saturated fat diet with regularexercise and a balanced lifestyle.Saffola ActiveSaffola Active provides Omega 3 and Oryzanol, two important compounds known for promotingheart health. To get these benefits, Saffola Active is made with rice bran oil and soyabean oil.Saffola Active also contains Vitamin E. The heart healthy nutrients in rice bran oil such asoryzanol are known for their cholesterol lowering ability. Soyabean Oil is a good source ofOmega-3. Omega-3 helps in lowering cardiovascular risk factors along with several other healthbenefits.Saffola comes with LoSorb Technology, due to which oil gets absorbed less, reducing oilconsumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and yourfamily to take care of your heart by using less oil, following a low saturated fat diet with regularexercise and a balanced lifestyle.
Saffola TastySaffola Tasty was the first Saffola blend. This oil blend provides the benefits of two oils, therebygiving you added value. It provides the high poly unsaturated fatty acid of Safflower saffloweroil and the taste of Corn oil. Safflower safflower oil, which is also known as Kardi Oil has thehighest levels of linoleic acid, an omega-6-polyunsaturated fatty acid, which is well known inreducing cholesterol levels. Corn oil has a unique taste and aroma.Saffola comes with LoSorb Technology, due to which oil gets absorbed less, reducing oilconsumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and yourfamily to take care of your heart by using less oil, following a low saturated fat diet with regularexercise and a balanced lifestyle.SAFFOLA ARISESaffola Arise Basmati Gold is cultivated in the fertile lands of Punjab, Haryana and U.P. It isspecially selected from these sub-Himalayan regions so that you get 100% pure Basmati rice.The grains are aged along with rice bran and husk, and when cooked, separate and do not stick.Its lower glycemic index allows the rice to be digested slower, which keeps one feeling lightafter consumption.Saffola Arise is available in three variants; Everyday, Premium Grain and Basmati Gold.SAFFOLA OATSSaffola Oats, launched in 2010, is a healthy, nutritious and active way to start your day. The100% natural, wholegrain oats are a great source of soluble fibre, which helps to reducecholesterol and keeps your heart strong. Saffola Oats also keeps you feeling full for longer, thusreducing hunger pangs and unhealthy snacking. Saffola Oats are double-steamed for a uniformtexture and are specially formulated with high iron and protein content.Saffola Oats are available in 200gm, 400gm and 1kg packsSaffola Muesli- The Smarter* Way to Stay Fit^.Saffola Muesli is a delicious wholegrain breakfast with a smart mix of 5 healthy ingredients -oats, cornflakes, wheat flakes, almonds and raisins. The key ingredient is oats, which helpsreduce cholesterol and helps keep your heart strong**. Saffola Muesli also has high fibre and is agood source of protein.Saffola Muesli has a crunchy texture, flavour, aroma and comes pre-mixed with tangy raisins andcrackling almonds - making it a delightful taste experience. Just add milk and enjoy your bowl ofSaffola Muesli breakfast.Kick-start your day with any of the 3 exciting flavours,
Nutty Crunch Fruit Rush Lite n NaturalSaffola Muesli is available in 225gm and 400gm boxes and 25gm pouches.SAFFOLA CHOLESTEROL MANAGEMENTSaffola Cholesterol Management Atta Mix is a specialized functional food from Saffola.Launched in 2005, Saffola CM Atta Mix gives you a simple way to help manage cholesterol. Theatta mix is a 100% natural, vegetarian mix of ingredients like soya, oats, barley, maize andpsyllium husk. It can be used mixed with regular atta, and does not alter the taste of rotis.Saffola CM Atta Mix is available in 500gm box (to mix with 2kg of atta) and 1kg box (to mixwith 4kg of atta)HAIR AND CAREDistinctively youthful and contemporary, Hair & Care has always been the young girl’s choiceas she takes her first steps into the adult world.Hair & Care offers the potent nourishment of Herbal Proteins extracted from Neem and Tulsithat that deeply nourish hair and help reduce hairfall by upto 50%*. And its unique non-stickyformula gives you free-flowing, stylish hair even after oiling!
Hair & Care Herbal Proteins is available in 50ml, 100ml, 200ml, 300ml and 500ml bottles.And for those special moments when your hair needs some extra style, Hair & Care offers youSilk-n-Shine Hair Potion. Enriched with the natural goodness of Fruit Vitamins, its uniqueformulation instantly makes hair soft, smooth and silky. So that your hair shines with style as doyou!H&C Silk-n-Shine is available in 3ml sachets and 18ml, 50ml and 100ml bottles.NIHAR UTTAMNihar Naturals Uttam Coconut Oil: A 100% pure coconut oil from the house of Nihar; available in amodern packaging that keeps oil pure till the last drop.NIHAR NATURALSone of our most diversified brands, Nihar Naturals is the market leader in East India.
Nihar Naturals hair oils range offers quality solutions for different hair care needs of the womenof today. The current product portfolio includes:Nihar Naturals Perfumed Coconut Hair Oil, aunique combination of Coconut Oil and Methi extracts, available in two fragrances - Rose andJasmine.Nihar Shanti Amla Hair Oil, one of the fastest growing hair oils in India.We now also have two new offerings, Nihar Naturals Almond hair oil & Nihar Naturals Coolingoil.LIVONLivon has 2 offerings: Livon Silky Potion and Livon Hair Gain TonicLIVON SILKY POTIONBad hair days are history. Livon Silky Potion, a brand that built the serum category in India, putsan end to tangled, dry, and unmanageable hair.Livon Silky Potions unique CutiSoft Formula instantly smoothens and softens hair cuticles,transforming dry, rough and brittle hair into smooth, soft and silky hair. It eases tangles andknots, making hair easy to comb. It makes unmanageable frizzy hair easily manageable bystraightening it and giving it a well-groomed look. Livon Silky Potion also contains Vitamin Ethat nourishes hair. So wish away those annoying hair worries with Livons tender loving care.Dab Livon Silky Potion onto towel-dried hair post-shampoo, or just dab it onto hair anytime todazzle with smooth and silky hair throughout the day.Livon Silky Potion is available in 20 ml, 50 ml and 100 ml bottles and in 3 ml sachets.LIVON HAIR GAIN TONICIts logic, not magic. Livon Hair Gain Tonic works because its aproduct born out of advanced and groundbreaking research on Indian hair.
Livon Hair Gain Tonic is a solution that not only addresses hair fall problems, but also helps inaccelerating healthy hair growth. It is enriched with Root Energisers, a breakthrough formulationthat comprises hair re-growth molecules, and it has a three-way action on affected hair follicles: 1. It penetrates to the root of the hair follicle and clears up the debris around it. 2. It restores proper circulation of blood and nutrients to the hair follicle 3. It also prevents shrinking of the hair follicle and helps it grow in a healthy cycleLivon Hair Gain Tonic is available in a 150 ml bottle.SET WET HAIR GELS AND DEODORANTSIncrease your style quotient with Set Wet Hair Gels and Set Wet Deos.There is no telling how far your looks can go with well-styled hair. And how about styling yourhair differently for different occasions? Well-set for the day and spikes for the after-hours?Whatever the occasion and whatever be your hair type, Set Wets range of Alchohol-Free hairgels lets you get creative with your hair. And once done, it helps you keep your hair stylish for along time.Set Wet Hair Gels have become a very popular style-accessory for young men. The brand is abest-seller in its category in India.Style your hair with any of the 3 variants: Cool Hold, Vertical Hold and Wet Look.Each is available in 10 ml, 50 ml and 100 ml tubes. So go ahead and choose one whichcomplements your unique style, whether cool and suave or spunky and wild!SET WET DEOS
With six of the hottest, sexiest fragrances, Set Wet deodorant spray perfumes are must-haves fortodays confident and stylish man.Set Wet deos are available in 200 ml cans in the following styles: Cool, Sexy, Macho,Adventurer, Casanova and Romeo.So go ahead and choose one which complements your unique style, whether cool or wild, suaveor bold, casual or intense!SET WET ZOTAKZOTAK DEODORANTSIn the days of instant karma who can wait for the pleasures of passion? Zatak is a one-of-its-kinddeo. It comes with 4 uniquely Indian fragrances. Each strong and sharp enough to just Zatak her!In Cool, Musk, Spicy and Woody variants, Zatak comes packed in sleek and nifty 200 ml cans.MEDIKAR
Any mother with school-going children will understand and empathize with the pain thatchildren go through during lice removal – Mediker is the answer to this problem. Launched in1968, Mediker has become a household name that the nation trusts. It was acquired by Marico in1999 from Procter & Gamble. Mediker Anti-Lice Treatment has transformed lice removal into apainless activity, replacing the traditionally-painful lice comb with a wash-off format. Medikercontains actives such as neem, camphor and sitaphal extracts.Mediker is also available in an Oil format, for those who prefer using an oil in their regularregime. It contains coconut oil, in addition to neem and camphor.Mediker has been clinically tested and proven to be completely safe to use, with no side-effects.Mediker Anti-Lice Treatment Shampoo is available in a 50ml bottle as well as 9ml and 5.5mlsachets. Mediker Natural Anti-Lice Oil is available in 15ml, 25ml and 50ml bottles.REVIVERevive was launched in 1993 and is another Marico product that created a market where noneexisted. Revive Powder gave consumers the convenience of an instant cold water starch at home.In 2007 Revive Liquid was launched, which, unlike traditional powders, leaves no patches oncoloured clothes. Revive Liquid can also be used on terry-cottons. The versatility of this productwas proven by its 15% market share in the first 8 months of launch.Revive Powder is available in a 50gm sachet, 200gm box and400gm jar.Revive Liquid is available in 20 gm sachet and 45gm, 100gm, 200gm and 400 gm bottlesMANJALBringing the power and benefits of Ayurveda to everyone, Manjal is a soap that contains naturalextracts of neem, turmeric, hibiscus, sandalwood and ayurvedic oils. Manjal is a soap for thewhole family. Turmeric, with its antiseptic properties, cleans from within the pores, while neemis a great anti-bacterial for the skin. Ayurvedic oils moisturise and sandalwood leaves behind agentle fragrance. BRANDS TARGETED CUSTOMERS PARACHUTE •Primary Target Women Of All Ages PARACHUTE
ADVANCED •Young Girls (College & School Going) HAIR & CARE •Appealing To Both Men & Women of All Ages •Primary User the Young Age Group SHANTI AMLA •Customer Looking for Value for Money (H.OIL+Badam) SILK & SHINE •Primary Target Female Of age 18 – 34 AFTER SHOWER •Primary Target Young Males 18 – 34 MEDIKER •Young Children Age Group 3-13 (Due to Lice Problem) SWEEKAR •Primary Target Housewives (Due to Economic+Healthy Life for Family) SAFFOLA •All Health Conscious Consumers (Specially for Heart Patients) REVIVE •Housewives of Urban Area (Higher & Middle Class). MARICO’s PRESENCEINDIAMaricos Consumer Products Business (CPB) has established and nurtured brands that touch thelives of 1 out of 3 Indians* over the last two decades. Its beauty and wellness portfolio includessome powerful brands such as Parachute, Parachute Advansed, Saffola, Nihar, Hair & Care,Mediker and Revive, amongst others, which occupy leadership positions in their respectivecategories. It recently entered into an agreement with Reckitt Benckiser to acquire leading brandslike Livon, Set Wet, Zatak and other Personal Care brands thereby strengthening its portfolio forthe youth and creating a significant presence in the male grooming and post hair wash segments.Every month, over 70 Million consumer packs from Marico reach ~130 Million consumers inabout 23 Million households, through a widespread distribution network of more than 3.5Million outlets in India. During 2010-11, Maricos Consumer Product Business revenues grew by~17% led by an underlying volume growth of ~11%. Backed by a robust IT enabled supplychain, the business achieved a higher growth rate in rural markets, taking its share of rural sales
revenue to 30%. Maricos CPB employs over 810 members across India and has delivered a 5yrCAGR of 18% in topline and 17% in bottom line.EGYPTMarico’s journey in Egypt began in 2006-07, when it acquired leading local hair care brands –Fiancee and HairCode. Both brands were acquired along with their manufacturing facilities.Marico currently enjoys a leadership position in the hair styling category, commanding a marketshare of more than 55%. It is present in the hair styling market with its range of Hair Gels, HairCreams as well as Hair Cream-Gels.In a further signal of its commitment to Egypt, Marico set up a Greenfield factory in 2008 inSadaat city, around 150 km outside Cairo. With this factory, Marico intends to make Egypt asourcing hub for products sold within the Middle East and North African (MENA) region. Twoof Marico’s factories were also awarded the ISO 9001 certification in 2009-10.In 2010, Marico launched the Parachute range of hair creams and hair oils in the local Egyptianmarket. Through its innovative marketing programmes and digital marketing initiatives, HairCode won the coveted Super Brand status in 2009. It also received the Gold for CreativeAdvertising at Summit International in 2009.Marico Egypt employs over 200 personnel and has also conducted training programmes indifferent areas of operations, including Sales & Marketing, Quality, Finance, HR and MaricoValues and ProductivityVIETNAMIn February 2011, Marico entered the Vietnam market by acquiring an 85% equity stake inInternational Consumer Products Corporation (ICP)-one of the most successful VietnameseFMCG companies.ICP was founded by Dr. Phan Quoc Cong and his partner in 2001. It owns brands like X-Men,L’ovite and ThuanPhat, which have a significant presence in the personal care, beauty cosmeticsand foods categories. X-Men is a leading player in the male grooming segment, in Vietnam, andis the 2nd Most Trusted Personal Care brand in the country. It leads the men’s shampoo categorywith over 35% market share. It has recently extended its presence to other male segments such asdeodorants and shower gels.L’Ovite, the company’s premium cosmetics brand, ranks amongstthe top 5 premium cosmetics brands in Vietnam. ThuanPhat participates in the rapidly growingbranded sauces and condiments market in Vietnam.BANGLADESH
In 2002 Marico established a factory on foreign soil - Bangladesh. Marico was the first Indiancompany to have a manufacturing location in Bangladesh. The steady growth of CNO franchise,with better product quality along with direct and indirect distribution provided a goodopportunity for IBG business in Bangladesh. In Bangladesh, Marico operates through MaricoBangladesh Limited (MBL), a wholly owned subsidiary with its manufacturing facility atMouchak, near Gazipur. This is an ISO 9001 certified facility. MARICO’s journey in Bangladesh Started operations in 2000 Parachute Coconut Oil is a leader in its category. Acquired 2 soap brands – Camelia and Aromatic – in 2005 Launched Haircode Hair Dye in 2009 Haircode achieved a market share of over 15% in its first full year of operations Marico Bangladesh listed on the Dhaka and Chittagong Stock Exchange in 2009 Marico is amongst the top 3 FMCG MNC companies in Bangladesh Launched Saffola Gold, a premium edible oil, in 2010 Parachute has been amongst top 10 most trusted brands continuously in the years 2008, 2009 and 2010. Lauched Parachute Advansed Cooling Hail Oil in 2011.SOUTH AFRICA Marico entered the Ethnic Hair Care and Healthcare market in South Africa in 2007-08, with the acquisition of the Consumer Division of Enaleni Pharmaceuticals Ltd. Over the years Marico has seen its market share grow in its core segments. Marico introduced various innovations in the market like flavours in the Health Care segment and a new range of scalp protector and relaxers in the hair care segments. to help it grow. In a bid to boost global integration, Marico expanded its SAP platform to Marico South Africa, which helped create an integrated landscape with better data visibility. Marico further made a bolt-on acquisition with the Ingwe/Medi-Pac range of healthcare products in 2010. With further expansion into Sub-Saharan Africa, the African journey of Marico is only set to growMALAYSIA Marico entered Malaysia’s hair styling market in January 2010, with the acquisition of the Code 10 brand from Colgate-Palmolive. Backed by strong consumer equity and investments, Code 10 is set to chart a new growth trajectory, providing Marico a platform for faster organic growth in this market. Marico leads the market in key hair styling segments in the MENA region and hopes to replicate the same in South-East Asia.MIDDLE EAST
Marico entered the GCC region in the 90s and has been expanding its footprint across the Middle East with Parachute presence also in Levant, Iraq, Yemen etc. With a steady increase in its product range and an ever widening distribution system, Marico’s progress in the Middle East is heading for rapid growth. Over the years, Parachute has become a formidable brand in the Gulf region and Parachute Hair Cream is a leader in its category in several markets. Parachute bagged the Silver in the Outstanding Marketing Achievement Award category in Gulf Marketing Review (GMR) 2008. Parachute was also awarded the SuperBrand status in 2009 in the UAE.COMPETITORS IN INDIA Amar Remedies Ltd. Ador Multiproducts Ltd. Bajaj Corp Ltd. Colgate-Palmolive (India) Ltd. Dabur India Ltd. Emami Ltd. Farmax India Ltd. Fem Care Pharma Ltd. Gillette India Ltd. GKB Ophthalmics Ltd. Godrej Consumer Products Ltd. Godrej Industries Ltd. Hindustan Unilever Ltd. J L Morison (India) Ltd. JHS Svendgaard Laboratories Ltd. Jyothy Laboratories Ltd. Jyoti Cosmetics (Exim) Ltd. My Fair Lady Ltd. Paramount Cosmetics (I) Ltd. Procter & Gamble Hygiene & Healthcare Ltd.
RayBan Sun Optics India Ltd. Velvette International Pharma Products Ltd.BANKERS Axis Bank Ltd Citibank HDFC Bank Ltd HSBC ICICI Bank Ltd Kotak Mahindra Bank Ltd Standard Chartered Bank State Bank of IndiaMARKET SHARE V/S MARKET GROWTH
1.STAR It is represented a product having high relative market share and high market growth rate. It need capital over and above its cash flow to maintain it’s market share. It provides cash for growing stars. It suggested Expansion Strategy for STAR .. E.G. KAYA SKIN CARE AND PERACHUTS COCONUT OIL IN MARICO AND IN THE INDUSTRY HLL AND GODREJ COMES IN THIS CATEGORIES.2.QUESTION MARKS….??? It represented by a Product having low relative market share and high market growth rate I.E low market share in a growing market. It requires large cash due to market growth, but generates less cash due to low market share.It requires additional investment to increase it’s competitive advantage. E.G NIHAR, SAFFOLA AND IN THE WHOLE INDUSTRY DABUR COMES IN IT.
These product company given more advertisement. Because these product not more popular in the market. So company given more cash to these product.CASH COW It represent by a Product having high relative market share and low market growth rate. It is not attractive in long ran due to less market growth rate. E.G SAFFOLA (EDIBLE OIL), SILK N SHINE competitor -FORCHUN OIL , DHARA OIL etc.To meet the investment need of stars on question marks, over heads and growth strategy is suggestedDOG It represents a product having low relative market share and low market growth rate. It has very low competitive position due to high costs, poor quality, poor marketing etc.It also has low growth potential due to low market growth rate. The preferred strategy is retrenchment. EX. MAHA THANDA Copititor-navaratn cool
SWOT ANAYSIS STRENGTHFINANCE Centralized payment Decentralized collection Low invest Source of funds Management of funds 2009-10, the company generated a Turnover of about Rs.26.6 billion (USD 600 Million) In 2008-09 13.6 billion (about 380 million) 15%profits-over last 5 years 30%* market share (640 billion)MARKETING widespread distribution network of more than 2.5 Million outlets in India and overseas. innovative approach :focused on meeting the emerging needs of the modern day consumers Wide variety of product Understanding of Indian consumer behavior in the hair oil segment Large distribution network all over India.Rural market reach one of the largest amongst Indian FMCG company. Marico reach approximately 130 Million consumers in about 23 Million households No. 2 player in the growing VACNO (Value Added Coconut Oil) Strong brand equity Wide global presence High bargaining power Diversification of business by expansion
OPERATIONS Plant location as per raw materials availability Low cost operations Absorb imported technology R & D system is so good MIS system of operation and control system Plant location Production system Operation and control system Strong in inventory control (28 days) In house production –no outsourcing-high reliability supplierssuperior quality assurance. India and foreign production location-spread benefit. Use JIT (just in time) approach for handling of raw material Known for their which reliability which comes from efficient operations Human Resource A flat organizational structure empowered : everyone is a member and not an employee Marico’s structure is dynamic & constantly Good personnel system Good industrial relation with other company Personnel system Organisational and employee characteristics Industrial relations Quality and motivation of personnel rated as one of the most innovative companies by Business Today -Monitor Group
WEAKNESSFINANCE Fixed price Sales of Rural Area was Slowly Decreasing.MARKETING Not strong within the shampoo segment, having hardly any share Not having any antidandruff hair oil whose market potential is worth 25% of the total oil market in India. Low company image Low promotion Low export levelOperation High cost of branded productsHR High dependence on Parachute High leverage compared to peers Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India
OPPORTUNITIES FINANCE Indias Rs.460 billion FMCG market Increase Income Level With Result in Faster Revenue Growth. MARKETING Need to concentrate within the various others market potential zones like hair shampoo, hair colorants etc. Large Domestic Market Growth Marico, is betting big on its international business and is open to acquisitions provided they fit in with its overall growth strategy . Growth in international markets Successful entry into beauty and healthcare market Untapped rural market In rural markets, brands are non-existent OPERATION Constant innovation access international technology Huge Distribution Network :including 2 million in 3,160 towns and four million in 627,000 villages. Low education level. Foreign countries emerging as a leading buyer of the products Expand geographical presence Less developed infrastructure.Human Resource India is rich in highly trained manpower Industry has large and diversified segments that provide wide variety of products Population
THREATFinance Marico’s debt-to-equity ratio for FY 2008 was 1.1, which is the highest among the FMCG companies. Any further large acquisitions financed by increasing leverage. Tax and Regulatory structure Economic slowdown resulting in lower consumer spending Currency risk: Marico derives approximately 20% of its revenues from international markets.Marketing Maricos key raw materials include copra, kardi oil, sunflower oil, corn oil and rice bran oil, which are commodity crops whose availability isseasonal. Competition from the diverse players present in the market can cause loss of market share. Intense competition from global brands in international marketOperation High cost of Land Environmental regulations Infrastructural bottlenecks in terms of power, utility, road transport etc Inadequate transport Geographical Disadvantages Retailers are becoming stronger and are wielding more power over manufacturersHR More job opportunities for the Human Resources around the world International labor Laws Despite technological advances, beverage sector remain labour-intensive Labor problems Any change in Government policy