MARICO

Final Project Report On Marico :
Livon.
Prepared by Ritabrata SahaRoy.
PGDM – 2.
Pune Institute Of Business Management.
12/19/2017MARICO LIVON Ritabrata SahaRoy.
1

WHAT IS FAST MOVING CONSUMER
GOODS?
Fast moving consumer goods(FMCG) or Consumer packaged
goods(CPG) are products that are sold quickly and at relatively lower
cost. Examples include noodles chips, beverages like tea etc.
ABOUT THE SECTOR
FMCG is the 4th largest sector in the Indian economy.
a. Household and Personal Care is the leading segment accounting for
50 per cent of the overall market.
b. Hair care (31%).
c. Food and Beverages (19%) comes next in terms of market share.
2

3
GROWTH PATTERN OF THE SECTOR
FOR THE LAST FIVE YEARS
USD
41.8
biln in
2012
USD
44.1
biln in
2013
USD
46.9
biln in
2014
USD
47.8
biln in
2015
USD
49.9
bin in
2016
REASONS FOR GROWTH IN THE LAST FIVE YEARS
growt
h of
CAG
R @
4.94%
during
2010-
19
financ
ial
year.
100%
FDI in
the
food
process
ing and
single
brand
retail
and
51% in
multi
brand
retail.
Increa
se in
level
of
brand
consci
ousne
ss.
E-
com
merc
e.
Rural
consu
mpti
on
• US$ 1.1 trillion by 2020 from US$ 672
billion in 2016.
SECTOR
SIZE
• 2016-17, revenue for FMCG reached
US$ 49 billion, expected to grow at 9-
9.5 % in FY18.
7.40%
4.10% 5.10%
17.90%
5.10%
57.90%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
FMCG TEXTILE AUTOMOBILE AGRICULTURE AUTOMOBILE SERVICEGDP CONTRIBUTION TO THE IN INDIAN ECONOMY (IN PERCENT)
CONTRIBUTION TOWARDS GDP
SOURCE: IBEF.ORG

4
PORTER`S FIVE FORCES MODEL
THREAT OF
SUBSTITUTE
S:
• High
presence of
multiple
brands.
• Narrow
differentiat
ion under
many
brands.
BARGAING
POWER OF
SUPPLIERS
• Low- Big
FMCG
companies
are able to
dictate the
prices
COMPETITIVE
RIVALRY:
Highly
fragmented
industry as more
MNCs are
entering
BARGAINING
POWER OF
BUYERS:
High- low
switching
cost.
Availability
of same or
similar
alternatives
THREAT OF
NEW
ENTRANTS:
High
investment
s in
distribution
network
and
promoting
brands
Company Information: MARICO
Particulars Details
Marico Ltd One of India’s leading
consumer products company
Year of establishment 1971
Promoter Harsh Mariwala
Registered office Mumbai
Profit Rs. 842.70 cr
Sales (2017) Rs. 6,015 cr
Market capitalisation (as on
28/8/2017)
Rs. 40,314 cr
NAME DESIGNATION QUALIFICATIONS
Chairman Harsh Mariwala
Managing Director Saugata Gupta Was a part of the
startup team for ICICI
Prudential
CFO Vivek Karve Chartered Accountant,
Cost Accountant
CMO Anuradha Agarwal Worked with Mondelez
in the past.

5
SHAREHOLDING PATTERN OF THE COMPANY:
Promoters,
59.72%
FIIs, 28.90%
DIIs, 4.36%
Individuals,
7.02%
SWOT ANALYSIS OF MARICO:
STRENGTHS
• Leadership
position.
• Strong presence in
foreign market.
• strong distribution
network.
• Efficient
management
team.
• Product portfolio
is diversified
WEAKNESS
• Its share is limited
due to presence of
other FMCG
companies which
has a higher
market
capitalization and
market share than
Marico for
example
Hindustan
Unilever Limited
which is the
largest FMCG
company.
OPPORTUNITIES
• Growth is going
to come through
high value and
under penetrated
categories
• Market share in
rural areas has
scope to increase,
currently being
only 35%-40%.
THREATS
Increase in the
price of copra.
Urban
consumers
getting health
conscious day
by day.
Geo-political
disturbances in
MENA.
PORTFOLIO OF THE PRODUCTS OFFERED BY
THE COMPANY
MARICO LIVON
LIVON: The Livon brand has 2 offerings - Livon Serum,
Livon Hair Gain Tonic.

12/19/2017
MARICO LIVON Ritabrata SahaRoy.
6
STRENGTHS
MARICO is a brand of
Indian origin.
Strong advertising
strategy to promote
livon.
Rising pollution and
stress leading to hair
loss.
The product comes for
both the genders which
expands its consumer
base.
WEAKNESS
The product has very
low penetration in the
rural markets.
The product is priced at
a higher range.
Controversial advertising
may lead to legal issues
for the product.
OPPURTUNITIES
India has the highest
number of young
population.
The product is sold on
various on-line sales
portals.
The company has come
with gender specific
products for both the
genders.
THREATS
From companies
selling herbal
products like
PATANJALI.
The company has
to face competition
from other foreign
brands.
SWOT ANALYSIS OF LIVON
PRODUCT: Product specifications are:
It penetrates to the root of the hair follicle and
clears up the debris around.
It restores proper circulation of blood and
nutrients to the hair follicle.
It also prevents shrinking of the hair follicle
and helps it grow in a healthy cycle.
PLACE:Marico is present in more than 25
countries.
sell the products through various channels, i.e.
the product is available with the pharmacy
stores, as the products may be prescribed by
the dermatologists, they are available on the
online portals.
PRICE: The price of the products are very
high. The pricing strategy for LIVON is
skimming strategy, they want to earn
maximum profit.
Livon hair serum costs INR 218.50, for 100ml
and livon har gain tonic costs INR 656 for
150ml.
PROMOTION: Marico has recently made a
contract with Bollywood queen Kangna
Ranaut, to relaunch its product. promotional
strategy the tagline they use are “I Love My
Hair”.
For both the livon product the company is
using this tagline to make its target consumer
feel connected with their offerings.
MARKETING MIX FOR MARICO : LIVON

7
SEGMENTATION, TARGETING AND POSITIONING
SEGMENTATION:
• PEOPLE FALLING
IN THE HIGHER
INCOME
BRACKET.
• MALE AND
FEMALE BOTH.
• URBAN AND
SEMI URBAN.
TARGETING:
• YOUNG
CONSUMERS.
• PEOPLE IN THE
AGE GROUP OF
30 – 45.
POSITIONING
• PROTECTION OF
DAMAGED AND
DRY HAIR.
• PROVIDES
SOOMTHNESS.

8
PRODUCT LIFE CYCLE:
Livon was launched in the year of 2011, it had created a niche product market for itself, and is currently in the
maturity stage.

12/19/2017
MARICO LIVON Ritabrata SahaRoy.
9
BUSINESS FINANCE OF MARICO
49.97%
42.83%
49.90%
51.50%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2014 2015 2016 2017
GP MARGIN
15.67%
11.64%
14.18%
17.37%
0.00%
5.00%
10.00%
15.00%
20.00%
2014 2015 2016 2017
NP MARGIN
3682.49
4681.2
4947.34 4850.75
0
1000
2000
3000
4000
5000
6000
2014 2015 2016 2017
NET SALES
GROSS PROFIT MARGIN
NET PROFIT MARGINNET SALES
15.16%
14.14%
17.02%
19.71%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2014 2015 2016 2017
OP MARGIN
OPERATING
PROFIT MARGIN

10
WORKING CAPITAL OF MARICO
Working capital is a measure of both a company's efficiency and its short-term financial health.
Working capital is calculated as:
Working Capital = Current Assets - Current Liabilities
The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough assets in the short
term to cover its short term debt. Anything below 1 indicates negative W/C (working capital).
Current Liabilities 2017 2016
Short term borrowings 108.35 25.83
Trade payables 476.24 483.52
Other current liabilities 149.70 314.11
Short term provisions 57.49 60.19
Total Current liabilities 791.78 883.65
Current Assets 2017 2016
Current Investments 501.49 337.98
Inventories 1,082.96 767.56
Trade Receivables 227.61 192.10
Cash & cash equivalents 68.53 134.54
Short term loans 101.50 221.71
Other current assets 12.45 27.15
Total Current Assets 1,994.54 1681.04
WORKING CAPITAL FOR 2017:
INR 1202.76
WORKING CAPITAL FOR 2016:
INR 797.39

11
DEBT EQUITY RATIO OF MARICO
The formula for calculation of DEBT
EQUITY RATIO is = Net debt/Total
equity.
PARTICULARS 31ST MARCH
2017
31ST MARCH
2016
NET DEBT 239.08 332.20
TOTAL EQUITY 2,339.02 2,031.70
NET DEBT TO
EQUITY RATIO
10.22% 16.35%
FIXED ASSETS ADDED DURING
THE F.Y. 2017
ASSETS 2017 2016
PROPERTY,
PLANT &
EQUIPMENT
547.19 524.34
CAPITAL
WORK IN
PROGRESS
11.16 36.73
INVESTMENT
PROPERTIES
29.98 30.67
GOODWILL 479.45 497.36

12
CEO
VP
OPERATIONS
FINANCE
MANAGER
FINANCE
EXECUTIVE
FINANCE
EXCUTIVE
OPERATIONS
MANAGER
EXECUTIVE EXECUTIVE
VP SALES
MARKETING
MANAGER
MARKETING
EXECUTIVE
MARKETING
EXECUTIVE
SALES
MANAGER
SALES
EXECUTIVE
SALES
EXECUTIVE
O
R
G
A
N
I
S
A
T
I
O
N
C
H
A
R
T
HUMAN RESOURCE MANAGEMENT OF MARICO

13
RECRUITMENT SOURCES OF
MARICO
EXTERNAL SOURCES INTERNAL SOURCES
ADVERTISEMENT TRANSFERS
EMPLOYMENT EXCHANGES PROMOTIONS
POOL DRIVES PRESENT EMPLOYEES
CENTRAL APPLICATION FILE
OTHER SOURCES
SELECTION PROCESS OF MARICO
SELECTION PROCESS OF MARICO
INVITING APPLICATIONS
RECEIVING APPLICATIONS
SCRUTINY OF APPLICATIONS
WRITTEN TESTS
PSYCHOLOGICAL TESTS
PERSONAL INTERVIEW
REFERENCE CHECK
MEDICAL EXAMINATION
FINAL SELECTION
PLACEMENT

14
INDUCTION PROGRAM OF MARICO
Introducing the incumbent with the team
leader or direct manager.
Telling them about the performance standards
Timings of office.
Introducing with the team members.
Making them aware of team roles and
responsibilities.
Introducing with peers.
Organizational chart.
Layout of office(s).
Security issues and access to the office.
Safety procedures of the office or building in which
it is situated
TRAINING NEEDS OF COMPANY
MANAGEMENT TRAINEE
SUMMER TRAINEE PROGRAM
EXECUTIVE TRAINEE PROGRAM

15

MARICO

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to MARICO

Similar to MARICO (20)

Recently uploaded

Recently uploaded (20)

MARICO