More Related Content
Similar to Marico Company analysis
More from Rinshi Singh
Marico Company analysis
- 2. FINAL PROJECT : SEMESTER1 MARICO LTD – SET WET PREPARED BY: RINSHI SINGH DIVISON: PGDM 4 BATCH: 2017- 2019 PRN: DM17D38 SEMESTER 1
- 3. FMCG SECTOR • FAST-MOVINGCONSUMER GOODS (FMCG) SECTOR IS THE 4TH LARGEST SECTOR IN INDIAN ECONOMY WITH HOUSEHOLD & PERSONAL CARE CONTRIBUTING 50 % OF FMCG SALES IN INDIA. 31.6 33.3 35.7 38.8 43.1 49 57.4 68.4 83.3 103.7 2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F Trends in FMCG Revenue over the years (US$ billion) REVENUE 60% 40% MARKET SHARE URBAN RURAL 23% 19% 15% 7% 5% 6% 16% 9% Revenue share Haircare Foods Oral care Digestives Skin care Home care Healthcare Supplements OTC & Ethicals
- 4. GROWTH DRIVERS FMCG GOWTH FACTORS GROWING DEMAND STRONG DISTRIBUTION CHANNEL ATTRACTIVE OPPORTUNITY GROWING RURAL MARKET POLICY SUPPORT EVOLVING CONSUMER LIFESTYLE Competitive Rivalry HIGH Buyer's Power HIGH Supplier's power LOW Threatof substitute HIGH Threat of New Entrants MEDIUM POSITIVE IMPACT NEGATIVE IMPACT NEUTRAL IMPACT PORTERSFIVE FORCES MODEL
- 5.
- 6. PRODUCT PORTFOLIO SET WETPRODUCTS PARACHUTE HAIR OILPARACHUTE BODY LOTION NIHAR HAIR OIL LIVON SEERUM SAFFOLA PRODUCTS REVIVE HAIR CARE OIL MEDIKER
- 7. STRENGTH Massive Distribution Network StrongFinancial Performance Brand& Regular Packaging Innovation Ability to create niche segment WEAKNESS Limited Global Presence Heavy dependence on monsoon Largely depend on Parachute & Saffola brands OPPORTUNITY Growth in rural market Brand Extension GST implementation benefits Target all age categories of customers Strong economic indicator THREATS Political risks Competition from unbranded & local products Commodity Price fluctuations Foreign Currency Exposure SWOT ANALYSIS MARICO- SWOT ANALYSIS
- 8. PRODUCT CATEGORY MARKET LEADER OTHERLEADING PLAYERS HAIR OIL 30% 19% SHAMPOO 47% 27% ORAL CARE 54.9% 60% 14% SKIN CARE 64% 12% 3% FRUIT JUICE 60% 30% MARKETINGMANAGEMENT “SETWET”
- 9. MARKETING-STP OF ‘SETWET’ SEGMENTATION GEOGRAPHIC Available throughout the country(Tier I&11 cities) Both urban and rural areas. DEMOGRAPHIC SET WET products are for men only For the age goup- 15-40 years Income more than ₹20,000p/m. PYSCHOGRAPHIC Style oriented Hygiene Oriented Hair conscious BEHAVIORAL Quality, Economy Loyal towards the brand Positive attitude towards product TARGETING • Style & Hygiene Conscious people • Tier I cities & Tier II cities • Middle Income level people • Age 15-40 years POSITIONING • Point of Parity(PoP) • Point of Differentiation (PoD) Source: PHILIP KOTLER and mbaskool.com
- 10. Strengths 1. Strong brand& presence. 2. Advertising , branding to target youth 3. Promotions and campaigns for luring customers 4. Grooming range like hair gel with which it is pushed to increase sales 5. Popular ad campaigns on TV and print ads instantly Weaknesses 1. Only an urban market phenomenon 2. High pricing reduces the target market 3.Controversial advertising often leads to legal issues Opportunities 1. Limited Edition fragrances 2. Demographic & geographic shift lead to more opportunity to increase market share 3. Push with other Marico products Threats 1. Deodorants sales are seasonal. Maximum sales happen in the summer months (April to September) 2. Competition from Premium Segment Deodorants like Burberry, SWOT analysis of SET WET SWOT ANALYSIS- “SET WET”
- 11.
- 12. • See wetgel • Set Wet do • Set Wet beard gel • QUALITY- FSSAI APPROVED Listed Price: • Gel & Beard Gel- 50ml @₹50/-, 100ml @85/-, 250ml @₹115. • Deo- 150ml @ ₹150- ₹198. • Payment Method: Both cash & digital payments Trade Channels: • Departmental Stores, Super Market, Hyper Market, • Online platforms (Big Basket, Amazon, Snap deal, Nykaa) • Specialty Stores. • SALE PROMOTION: PROMOTED BY BOLLYWOOD’S STUD ICON, RANVEER SINGH • TV ADS, NEWSPAPER MARKETING MIX- SET WET
- 13. FINANCE – PROFITMARGIN Company Name Years Net Sales (In Rs. Cr.) Net profit (In Rs. Cr.) Net Profit Margin (In Rs. Cr.) MARICO March17 5,936 799 13.46% March16 6,024 711 11.8% March 15 5,733 573 9.99% March 14 4,687 481 10.26% Company Name Years Net Sales Gross Profit Gross Profit Margin MARICO March 17 5,936 892.05 18.39% March 16 6,024 767.83 15.52% March 15 5,733 607.15 12.97% March 14 4,687 512.23 13.91% Net Profit Margin Gross Profit Margin
- 14. FINANCE – DEBTEQUITY RATIO • DEBT EQUITY RATIO= DEBT/ EQUITY*100 • DEBT= LONG TERM LOANS + SHORT TERM LOANS • EQUITY= SHAREHOLDERS FUND • DEBT RATIO FOR 2017 = 0.04 • DEBT RATIO FOR 2016 =0.01 OPERATING PROFIT Company Name Year Operating Profit Net Sales Operating Profit Margin Marico 2017 1,157.52 5,936 19.5% 2016 1,054.2 6,024 17.3% 2015 871.41 5,733 15.2% 2014 749.92 4,687 16%
- 15. HUMAN RESOURCE –ORGANIZATIONAL CHART CEO VP OPERATIONS FINANCE MANAGER FINANCE EXECUTIVE FINANCE EXECUTIVE OPERATION MANAGER EXECUTIVE EXECUTIVE VP SALES MARKETING MANAGER MKT EXECUTIVE MKT EXECUTIVE SALES MANAGER SALES EXECUTIVE SALES EXECUTIVE
- 16. HUMAN RESOURCE –EMPLOYEE BENEFITS Benefits Health & Wellness Insuarnace Health Disabilty Life Financial Pension Plans Retirement Plans Performance Bonus Family & Parenting Work from Home Childcare Maternity & Paternity Leave Vacation & Time Off Sick Leave Vacation & Paid Time Off Bereavement Leave Professional Support Diversity Program Job Training & Tution Apprenticeship Program
- 17. HUMAN RESOURCE -RECRUITMENT INTERNAL SOURCES • RECALL • PIPELINE • PROMOTION • TRANSFER • INTERNAL JOB POSTING EXTERNAL SOURCES • MONSTER • SHINE • CAMPUS RECRUITMENT • JOB CONSULTANCY • MARICO CAREER RECUITMENT
- 18. TRAINING METHODS ON &OFF THE JOB TRAINING: • PRODUCT PROGRAM • CUSTOMER CARE • DEALERSHIP MANAGEMENT PROGRAM • EXECUTIVE TRAINEE PROGRAM • MANAGEMENT TRAINEE PROGRAM • SUMMER TRAINEE PROGRAM • JOB ROTATION PERFORMANCE APPRAISAL • 360 DEGREE APPRAISAL SYSTEM. • ONLINE PROCESS TO MAINTAIN CONFIDENTIALITY. • PERSONAL DEVELOPMENT PROGRAM(PDP) • MBO (MANAGEMENT BY OBJECTIVE) • BARS Source: www.marico.com HUMAN RESOURCE - SELECTION PROCESS Preliminary Interview Application Form Selection Test Employment Interview Medical Examination Reference Checks Final Approval Induction Evaluation