Marico Assignment

MARICO BANGLADESH LIMITED A report submitted to the Department of Marketing in part-fulfillment of the requirements of the Course in PRINCIPLES OF MARKETING Spring-2010

Section-L Prepared & Submitted by Rahman Md. Mahbubur Hasan K. M. Makid Hasan Md. Mehrab Fatema-tuz-zhoura

Mahmud Shabbir

(09-13422-1) (09-13435-1) (09-13395-1) (09-12943-1) (09-13417-1)

Course Teacher KHAN, TAHSINA NIMMI

Date of Submission 26-04-2010

Contents

Topic Acknowledgement Executive Summary Introduction History Vision And Mission Strategic Business Unit Business Level Strategies Growth Strategy Competitive Advantage Profile Products New Product Pipeline About parachute Competitor’s Information Price Comparison Sheet Place Promotion Market Share

Page No. 3 4 5 6-7 7-8 9-12 12-15 15-16 16-18 19-20 21 22-32 33 33 33 34 34 35

SWOT Analysis

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SWOT Analysis of Marico Ltd.(India)

37

BCG Matrix

38-39

BCG Matrix Of Marico

39-41 41-43

Co-Corporate Social Responsibility (CSR) Conclusion Recommendation

43-44 44

Acknowledgement By the cordial mercy of Allah, now we will be able to submit our report to our honorable teacher Tahsina Khan Nimmi we strongly believe that it would not be possible preparing such a report without her help. te

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Now we would like to thank our honorable teacher Mrs. Tahsina khan Nimmi for her keen efforts and invaluable guidance helped us to understand, what the fundamental marketing strategy, Bostorn Consulting Group (BCG) matrix and SWOT analysis which help us to complete this successful completion of the report. We would also like to express gratitude to our class members. They should be remembered because they produced the platform of our knowledge. Again, I like to thank our honorable teacher for giving us such a chance in completion of the report Finally, we like to say that, we have prepared this report from our own experience. Our all information is from primary source .We are ready to accept our unwilling errors and omission which belong to us.

Executive Summery We are initiating Marico with a BUY rating driven by its tremendous growth potential, sound management, debt free financial structure, positive FCF and good capital productivity

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We are fond of Marico’s management and we like the phase where Marico is in. It is just nudging towards a $1 Bn revenue mark and we believe that once a company enters this phase it really grows quickly. This is a phase where all the past investments made in systems, structures, processes, brand, distribution and people come to bear and provide superlative results From a segment standpoint, international business is expected to grow rapidly and provide the necessary horsepower to Marico’s growth. New initiatives like Saffola Arise will provide additional boost in the domestic market. All the challenges seen with Kaya clinic are expected to be in the rear view mirror Marico currently provides a ROCE of greater than 30% and has consistently providing free cash flows implying less capital intensity. Fixed Asset Turns is high in the range of 8-10 X. We are forecasting Marico to end FY10 with an EPS of Rs 4 and we are estimating FY11 to be at Rs 5. We are therefore giving the 6-12 month price target for Marico at Rs 125 on a 25X PE multiple on FY11 estimates.

INTRODUCTION Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated a Turnover of about Rs. 23.9 billion (about USD 478 Million) during 2008-09. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair

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& Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancée, Hair Code, Caivil, Code 10 and Black Chic. Marico's brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (101 in India, Middle East and Bangladesh) and its soap franchise.

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 (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services

HISTORY  The Company was originally a join venture between a Lever group company and Nissin of Japan, and its products were distributed through HLL's channels.

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 In 1988 The Company was incorporated on 13th October, under the name of Marico Foods Ltd. It obtained the Certificate of commencement of business on 22nd November.  In 1989 The name of the Company was changed to Marico Industries Limited w.e.f. 31st October.  In December, the Company entered into an agreement with M/s. Rasoi Industries Limited for purchase of its unit located at M.I.D.C Industrial Estate, Jalgaon.  Saffola won the Most Outstanding `Brand of the Year' Award instituted by the Advertising Club of Mumbai in 1993.  In March 1996, the Company made a fresh issue of 10,00,000 equity shares of Rs.10/each, at a premium of Rs.165/- per share, simultaneously with an offer for sale by the promoters of 26,25,000 equity shares of Rs.10/- each, at a premium of Rs.165/- per share.  In 2002 Marico Industries Ltd has informed BSE that the Board approved the Issue of bonus redeemable preference shares of aggregate face value of Rs 290 million. Ratio -1:1 on equity enhanced after bonus issue of equity shares made by the Board on April 18, 2002 and approved by shareholders on July 18, 2002. The rate of dividend is 8% p.a.Increase in authorised share capital of the Company from Rs 300 million to Rs 600 million.  Marico acquires HLL`s Nihar for Rs 216 cr in 2006  In 2007 Marico Ltd has appointed Mr. Anand Kripalu as an Additional NonExecutive Director on the Board of Directors of the Company.

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VISION AND MISION

'COME WIN' ---- their vision and mission is captured in this acronym, which when bifurcated means the following: -

Consumers: For they are the reason we exist. The primary focus of our efforts will be to not only understand what adds greatest value to the consumer but also change and reinvent ourselves if need be. We will translate the consumer's needs and desires into marketable products and an everexpanding base of loyal consumers, with speed and a quality of response that surpasses the competition.

Membership: For a sense of ownership empowers us. Wholesome membership is when a person brings his/her entire being into the organization. It also gives each member a role in articulating and shaping the destiny of the organization, which in turn, builds commitment and ownership.

Excellence: For it unleashes our potential. We will focus on policies and practices where people produce consistently superior performances and where people are encouraged to discover their untapped potential.

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Wealth: For on it hinges our growth. All our efforts must culminate in the creation of wealth. We will do so by continuously adding value in everything we do through a variety of methods. We will use sources productively, eliminate waste, reduce cycle times and costs and enhance the consumer base.

Innovation: For it gives wings to ideas. The future of our organization rests on our willingness to experiment, push in new and untested directions, think in uncommon ways and take calculated risks. Continuous improvement should be a part of everyday work. We acknowledge that failure is inherent in any new initiative. We will commit resources for experimentation and invest in processes for reviewing and sharing of learning.

Marico's Goals and objectives (which they wish to achieve by 2010) We commit ourselves to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services.

STRATEGIC BUSINESS UNIT Marico’s Strategic Business Unit

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Consumer Products Business: Over the past 17 years, Marico has been continually improvising and building new brands. Marico's Consumer Products Business houses well-known brands such as Parachute, Saffola, Sweekar,Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, among others, which occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.

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International Business Group: The International Business Group of Marico operates in more than 20 countries spread across Asia, Middle East and Africa and has manufacturing facilities in Egypt, South Africa & Bangladesh. The International Business group has witnessed phenomenal growth over the years and contributes to 25% of Marico’s turnover. The company has full fledged operations in Egypt, South Africa, Middle East and Bangladesh. In addition, the International Business group is actively involved in creating opportunities for future growth and has enabled our brands to be present in many other markets across the globe.

Kaya: Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith marking Marico's entry into skin care solutions business. It was a true reflection of uncommon sense for a company in hair care products to move, instead of merely logical product extensions, straight into skin care services. It attempted to leverage Marico's strengths in the Personal Care business and in-depth understanding of the needs of the Indian consumer and her/his desire to enhance her/his natural beauty with the best cosmetic dermatology procedures available internationally. Kaya Ltd. has been focused on meeting the emerging needs of the modern day consumers by providing useful and effective services in the beauty and wellness space. The pioneering effort has been in the area of skin care with Kaya Skin Clinic.

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Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith marking Marico's entry into skin care solutions business. It was a true reflection of uncommon sense for a company in hair care products to move, instead of merely logical product extensions, straight into skin care services. It attempted to leverage Marico's strengths in the Personal Care business and in-depth understanding of the needs of the Indian consumer and her/his desire to enhance her/his natural beauty with the best cosmetic dermatology procedures available internationally. Kaya Ltd. has been focused on meeting the emerging needs of the modern day consumers by providing useful and effective services in the beauty and wellness space. The pioneering effort has been in the area of skin care with Kaya Skin Clinic. Over the last 7 years Kaya Skin Clinic has refined the standards and professionalisms of the skin care industry through innovative, world class treatments and services that have been tailor made to suit Indian skin.

Kaya Skin Clinic The philosophy at Kaya is governed by the single value of placing the customer first at all times. The emphasis, therefore, is to offer personalized, world-class skincare treatments and services, most suited for Indian skin, in a zen like, state-of-the-art clinic. Since its first prototype in Bandra in 2002, Kaya Skin Clinics has grown at an unprecedented pace, with over 100 clinics in India, Middle East and Bangladesh.

Kaya Services Kaya has a host of services that will help you attain, regain, preserve and protect the intrinsic beauty of your skin. All this is offered in serene, zen like ambience, under the reassuring care of dermatologists and experienced skin practitioners, to aid you to easily look your best, always.

Skin Beauty Services:  Skin polishing and brightening  Kaya Glow  Kaya Back shine  Meso Glow

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 Skin Lightening Peel  Kaya Advanced Facial  Kaya Express Glow

BUSINESS LEVEL STRATEGIES

1. Cost Leadership Business Level Strategy In company attains there competitive advantages & Increased their market share by offering products and services. Company offering product and services having the same utility, utility features as competitors’ products and services. Company substitute products and services; but the price lower than their competitors. Because of its core competence in engineering, design, manufacturing, distribution etc. When there is price elasticity of demand i.e. positive co-relation between price reduction and demand. Cost leadership is achieved by Marico Company  Early entry in business.  Accurate demand forecasting.  High capacity utilization.  High level of standardization of products and uniform services packages.  Aiming at average customer by giving generalized set of utilities & thereby attracting more customers.  Conditions For Cost Leadership Being Successful Are As  Price based competition is so severe that cost becomes an important factor. te

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 Buyers are price sensitive and low price attracts more buyers.  Buyers are many and have bargaining power for price reduction  There are very few ways of differentiation and it is not important to customers. Advantages of Cost Leadership Are as Following:  In company it protection against competition if a company make lower structure of products.  There is less effect because powerful suppliers bargain for high price so that such price rise to better absorbed in low cost structure.  It serves as entry barrier to new company which can not produce at lower price. Company

has so many products so that company uses this strategy for there product market share increase in market. If company not use these strategy for there product company not sell there product in market because company’s so many competitors. So many products growth is so much as compare to there anther products.

2. Differentiation Business Level Strategy Company make such product/services is differentiating from there competitors. Which are not offered by competitors. Company see the which customers are ready & willing to pay premium price which can compensate additional cost of differentiation. Company Make Differentiation at These Point

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 By enhancing the quality i.e. offering stronger, bigger, better, vastly, improved products.  By enhancing versatility, safety, utility and convenience for customers to match their tastes and preferences.  By changing size, weight, materials. Accessories of products i.e. from of products.

 By style improvement by increasing aesthetic appeal, by symbols, by media, by atmosphere, by new packaging etc.  By improving the quality of inputs i.e. raw materials.  By better durability, reliability, design, process of manufacturing, modern, technology, collaboration with valued partner, unique location etc.  By lower operational cost of using the products/services.  By offering complete range of products /services etc.  By coverage, expertise and performance of channels.  Company make product for Skin is KAYA Skin Care these is so much differentiation to other. Company make for night crème is PARACHUTE NIGHT REPAIR CREME.

GROWTH STRATEGY Growth is a way of life. Almost all organizations plan to expand. This strategy is followed when an organization aims at higher growth by broadening its one or more of its business in terms of their respective customer groups, customer’s functions, and alternative technologies singly or jointly – in order to improve its overall performance.

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There are five types of expansion (Growth) strategies Expansion through concentration Expansion through integration Expansion through diversification Expansion through cooperation

Growth through Acquisitions

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Marico has acquired five companies in the last 18 months to expand its product lines and business. The company acquired a number of brands such as Aromatic soap in Bangladesh, Manjal toilet soap and Nihar hair oil in India, and Fiancée hair care brand in Egypt. The Ready Group's Fiancée hair care brand has captured 20 percent of the Egyptian market. Marico is leveraging the popularity of the Fiancée brand to expand its business in Egypt and other parts of the Arab world.

Competitive Advantage Profile Marketing Factors  India’s fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy of India with a total market size in excess of US$ 13.1 billion.  Many giant players, both foreign as well as domestic, are competing in the market with a view to capture it.

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 Marico Company a leading Indian FMCG Company having excellent distribution channel and deep rural reach in India.  Marico and especially for having efficient distribution channel, Satisfaction Level of Retailers on Various Products as well as other micro Parameter's plays a vital role indentifying the flaws and merits of Marico.  Renowned Brands like Parachute, Saffola, and Kaya Skin Clinics.  Brands – quite powerful.  Strong in inventory control (28 days).  Physical distribution for superior to competitors. Production Factors  Size advantages in relation to competitors.  Finesse in production planning, scheduling, and matching with marketing requirements.  In house production – no outsourcing – high reliability suppliers – superior quality assurance.  India and foreign production location – spread benefit.  Human resources high caliber. Finance Factors  A Turnover of about Rs.13.6 billion (about USD 380 Million) during 2008-09.  Cash rich.  CAGR of 13% in turnover, 15% in profits - over last 5 years

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Capability Factors Competitive Strengths & Weakness Finance High cost capital reserves & surplus Marketing Various Products, Domestic and Foreign market Gainer Operation P&M excellent – parts & components available personnel Quality management & personnel par with Competition

Products

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Hair Care Hair Oils Pre wash and Post wash

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Healthcare Premium edible oils Functional Foods Kaya Life

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Skincare Cosmetic dermatological Services/ Products Ayurvedic skin care products Soaps

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New Product Pipeline

• Prototype Methodology – Enables experimentation & de-risked growth

• Products Successfully Prototyped – Saffola functional foods – Cholesterol and Diabetes Management Atta Mix – Revive Liquid Stiffener – Parachute Advansed Starz - Cream Gel, Gentle -Shampoo and non-sticky hair oil for kids – Parachute Therapie Hair Fall Solution -Parachute Advansed Revitalising Hot Oil

Back ground of the Parachute / Marketing strategy of parachute

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About Parachute

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Parachute is premium edible grade coconut oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over a time it has become the gold standard for purity. From a loosely available commodity to a path-breaking brand, Parachute pioneered the switch from coconut oil sold in tins to plastic. Parachute is also available in pouch packs, to service the rural sectors, increasing penetration. While the positioning of Parachute has always been on purity, the communication has evolved over time to appeal to different consumer sets. Over a time the brand has sought to remain relevant and differentiated from competition through a slew of initiatives in packaging ( introduction of the new sleeker Parachute pack) & communication like the” weight-test" (proving that pure Coconut oil is heavier than impure oil). Parachute has thus ensured that it enjoys tremendous equity and trust with every passing generation. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. te

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About Parachute Advansed:

Parachute Advansed coconut hair oil from Marico has been made especially keeping in mind the needs of hair. Parachute Advansed contains essential oils of ylang-ylang to give it a rich and deep fragrance. It penetrates the hair roots better than other hair oils, strengthening the hair from within. Parachute Advansed coconut hair oil is for the all-aware young Indian woman who is demanding as she knows that there are a slew of other hair care products available to her. She is aware of the benefits of using hair oil and the role it plays in maintaining her hair healthy and well nourished.

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Products: The product is a direct result of consumer needs. Parachute Advansed is coconut hair oil with a rich and deep fragrance. It is also lighter than other coconut oils, which makes it ideal for the young, appearance conscious consumer. With regular use of Parachute Advansed, hair strength is known to increase by up to 16%. What's more, when applied pre-wash, Parachute Advansed reduces protein loss up to 28% and restores the health of hair. Brand name: Parachute Advanced refined hair oil and Parachute Jasmine Target audience: Young and appearance conscious consumer. Positioning: Focuses upon the fragrance aspect of the oil. Innovations from Parachute Advansed

Personal Champi

Hot Champi

Easy Champi

Brand name: Parachute Positioning: As a purity brand. Target Audience: The primary target audience of ‘Parachute’ is women of all ages in both urban and rural population of Bangladesh. Pioneering idea: Parachute pioneered the idea of selling the coconut oil in plastic. Communication: Mass communication on the platform of ‘caring’ with mother daughter theme.

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Innovation strategy: Marico followed innovation as a major strategy in building Parachute brand. The following are some example. 20 ml Parachute - a Rs 5 SKU that enables loose oil users to upgrade to Parachute.

Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of Parachute

Parachute Mini - a bottle shaped small pack being sold at an MRP of Re. 1

Easy Jar of Parachute to facilitate usage especially during winters

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The strategy followed by the company and the quality of the product offers a customized product in all seasons, to grab the price conscious customers and to provide value for money. Other extensions are:

Brand name: Parachute Sampoorna Target audience: Women customers Positioning: Focus on providing strong hair. Brand name: Parachute Natural shampoo Positioning: On the platform of ‘Naturals’ which makes hair healthier.

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About Parachute Jasmine:

Traditional hair oils, while delivering nourishment, left hair feeling sticky and smelly. With the evolution of style and fashion, social sanction for oily "chipku" hair was rapidly on the wane. Research among hair oil users indicated a strong level of dissatisfaction with the odour and stickiness after using traditional hair oils. In order to address this need, Parachute Jasmine has been designed as hair oil that gives a consumer the ideal blend of nourishment and sensorials, delivered through a completely non-sticky format and a lingering fragrance. This makes Parachute Jasmine great post wash oil, which leaves the hair nourished, yet fragrant and free-flowing. The Parachute Jasmine woman is between 18 - 24 years confident and progressive yet has her roots in traditional values and culture. Though she faces the challenges of the modern world confidently, she takes the best out of tradition and blends it to suit her modern needs.

Product:

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Parachute Jasmine is a light, fragrant oil that can be used everyday to nourish and style your hair. It has the goodness of pure coconut oil and the essence of fragrant jasmine to give you healthy, non-sticky, free flowing and fragrant hair.

AboutParachuteAftershower:

The need for males to look good has never been more important - They are a reflection of the growing confidence of the country as a whole. More and more males in Bangladesh are realizing the importance of "great looking hair" & want a product that can be used to "style hair daily". In Bangladesh, the youth below the age of 25 years, account for 54% of

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the entire population and find the usage of hair oils to be "messy" & "outdated". They want more modern formats. Parachute Aftershower styling gels & creams offer this new age consumer a range of male grooming products that provide the goodness of coconut proteins without the inconveniences of oil and helps them style their hair the way they want to - products that can be used everyday. PAS has brought about a refreshing change in the way male grooming products were perceived. It has extended the natural goodness and trust of parachute into the men's hair grooming, by making products having the goodness of natural ingredients that make hair softer by providing nourishment and also help styling as opposed to being perceived to be chemical and damaging to hair. Today, AFS styling gels and creams are available in over 2.3 lakh outlets all over the country. This has given a reason for millions of men across the country to go ahead and style on - and create a confident India...

Products:

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Parachute Aftershower Anti-Dandruff hair cream - has been launched in Mar '06. The anti-dandruff cream is enriched with the goodness of lemon, Neem, Tea Tree oil and coconut proteins that work on the scalp all day long to fight dandruff and prevent breakage.The product has 4 in 1 benefit. Non-sticky. Anti-dandruff, Works 24x7 Makes hair 50% stronger Styles hair

Aftershower styling gels - launched in November '06, meant for the younger audience who were looking for a product that would help them "look the part" everyday. The gels have the natural goodness of coconut proteins and aqua limon moisturizers that not only help style hair the way one wants but also makes hair 3 times softer by providing nourishment unlike other gels. They are a first in the category - "soft styling gels". Brand name: Parachute After shower Hair Cream Target audience: Young men (SEC A, B)

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Positioning: Focuses upon stylish look, non sticky and nourishing aspect.

About Parachute Therapie:

Parachute Therapie Hair Fall Solution is a unique scientific formulation from Marico, developed after 6 years of intensive research, product development and consumer trial. It is completely safe to use and helps control hair fall naturally. 89% of users have reported significant reduction in hairfall on using Parachute Therapie for 45 days*.

Products:

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Enriched with Natural Root Activising Alpha Protiens, Parachute Therapie nourishes and reactivates your hair follicles, increases blood flow to your scalp, helping you control hair fall - naturally. What are Natural Root Activising Alpha Proteins? Natural root activising alfa proteins are a unique blend of proteins, vitamins, herbs and minerals developed specially to treat hair fall. "Saw Palmetto, an herb that dilates blood vessels naturally, increasing blood flow to your hair follicles. It also reduces the harmful effects of hormonal imbalances. "Ginkgobiloba, an Oriental herb that promotes blood circulation "Herbal Extracts like Jatamansi, Brahmi, Amla, Maka and Hibiscus to provide nourishment and strengthen hair. " Special protein blend - that activates dormant hair follicles and also supplements loss of hair proteins.

" Vitamin Blend - Nourishes hair follicles " Mineral blends - supplements mineral deficiencies. Parachute Therapie Hair Fall Solution is available in all leading Modern Trade, chemist and General stores/Kirana outlets in the key cities and towns. Parachute Therapie is priced at Rs 190/- for 150 ml.

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Competitor’s Information Company carries out research on competitors’ price and brand loyalty when it feels extreme necessaity of chaging price. Parachute has any direct competitor as other company has a service solely aimed at all generation. But if we talk about other mobile service providers then they have strong competition with Jui coconut oil, which is the local company for Egyptian owned Orascom tele

Price Though arico Bangladesh gives its PARACHUTE customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the Oil, Aftershower, Therapie industry. Sparkle. Taking into account the convenience of its customers, the company manufactures all items of PARACHUTE in different sizes prices, parachute oil categories are – Parachute advansed , Parachute bottles, Easy Jar of Parachute ,Parachute Mini .these are available in stores across Bangladesh in different variants - 80 ml, 170 ml and 300 ml packs at Rs 27/-, Rs 48/- and Rs 80/- respectively. Parachute is a product with a vulnerable demand in Bangladesh. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost equal to its competitor.

Comparison Sheet Parachute (Marico)

Jui (Square)

Tibbet (kohinoor)

45ml=15tk.

45ml=16tk.

50ml= 16 tk.

100ml=35 tk 200ml=70 tk

100ml=36 tk 200ml=70 tk

100ml=38 tk. 200ml=75 tk.

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Marico Bangladesh Ltd. has a huge distribution channel for PARACHUTE all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of Bangladesh, where the product goes after they are manufactured

factory.The company does not use its own fleet of transport for

distributing its product. However, it has outsourced its distribution process to various third party distributors, exclusively dedicated to Marico Bangladesh Ltd. These distributors then supply the product all over Bangladesh to a huge number of retailers. The primary target audience of ‘Parachute’ is women of all ages in both urban and rural population of Bangladesh.Even though PARACHUTE targets the urban,sub urban middle,upper middle class people, Young men (SEC A, B).They are distributing their products all over Bangladesh because of a recent increase in demand of its product to all segments of the women

Promotion Marico Bangladesh undertakes huge promotional activities to promote PARACHUTE which has topped the coconut oil industry of Bangladesh. It spends almost 20% to 25% of its Net Proceeds from Sales (NPC) of PARACHUTE for promotional activities for PARACHUTE .It’s certain annual promotional campaigns like PARACHUTE Channel, Superstar and PARACHUTE Channel I Annual Cinema Awards has made the product a part of the glamour world. Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with PARACHUTE advertisements. They do not only promote PARACHUTE in Bangladesh for the beauty conscious females, it also promotes the brand for males and the company proved that, by including world famous female celebrity Aisharia Rai for their advertising campaign. Marico Bangladesh Ltd spends a huge amount of money for promoting PARACHUTE through TV commercials, newspaper advertisements and billboards. Moreover it also undertakes small promotional campaigns at different schools, colleges, universities and recreational parks. Till now promotional activities of PARACHUTE has always been successful.

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Market Share

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SWOT ANALYSIS Before going to the Marico Company’s SWOT Analysis we must understand which things are included in the SWOT analysis;

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SWOT Analysis of Marico Ltd.(India)

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BCG MATRIX

THE BOSTON CONSULTING GROUP’S GROWTH-SHARE MATRIX (BCG)

BCG Matrix Include; 1. Stars are high market share/high growth businesses. The preferred strategy is growth. 2. Question Marks are low market share/high growth businesses. The preferred strategies

are growth for promising question marks and restructuring or divestiture for the other question marks. 3. Cash cows are high market share/low growth business. The preferred strategy is stability or modest growth.

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4. Dogs are low market share/low growth businesses. The preferred strategy is retrenchment by divestiture.

BCG MATRIX OF MARICO

STAR It is represented by a SBU or 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. However in may be self sustained in terms of cash flow when it is established and beginning to mature ultimately it becomes cash cow, on maturity, because it cannot absorb further cash. It cannot absorb further cash; it provides cash for growing stars. It te

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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. These product is in STAR but there cash flow will be less it will be become cash cow because there use full all over the world.

QUESTION MARK It represented by a SBU /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 or divestment. E.G NIHAR, SAFFOLA (FUNCTIONAL OIL) 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 has given more cash to this product.

CASH COW It represent by a SBU/Product having high relative market share and low market growth rate. It generates substantial cash over and above its investment requirement. It may be a SBU/Product in maturity life cycle stage. It is not attractive in long ran due to less market growth rate to meet the investment need of stars on question marks, over heads and growth strategy is suggested. E.G SAFFOLA (EDIBLE OIL), SILK N SHINE AND IN THE ABOVE EXAMPLE ITC COMES. These product market share is high but there market growth rate is low because there competitor is so much in market. In the market SAFFOLA OIL competitor is so much like as FORCHUN OIL, DARA OLI etc.

DOG It represents a SBU/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. It does not generate enough cash even for its own continuity. So Retrenchment Strategy usually by divestment or liquidation is suggested. It may be in the declining stage of its life cycle. Government

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policy may retain a dog artificially. E.G MAHA THANDA AND IN THIS EXAMPLE MARICO COMES. These product in market so very people know and there marketing is so less to other product of company. This product competitor is NAVRAT COLL DABAR Etc.

Co-Corporate Social Responsibility (CSR)

"A good company delivers excellent products and services, and a great company does all that and strives to make the world a better place." William Ford Jr., Chairman, Ford Motor Co-Corporate Social Responsibility to Marico is an expression of being a responsible citizen. Marico defines it as all roles played by it in the course of discharging its responsibility to all the constituencies from which the organization draws strength for conducting its business. CSR is thus community membership and leadership. Marico's CSR is based on interdependence and it believes in the need for an efficient business eco-system, where business and the rest of the society co-exist with respectful interdependence.

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The various constituencies targeted and reached out for CSR are:

The neighborhoods of all Marico locations Under this initiative Marico at various office and factory locations in India and overseas promotes education, sports, art, culture and supports welfare and relief operations.

Marico Innovation Foundation Spheres or processes which if strengthened enable business to prosper and uplift the status of the whole society. Setting up of the Marico Innovation Foundation reflects on Marico's belief in innovation as a process. The Foundation's objective is to fuel Innovation in India. Initiatives undertaken by the Foundation are: Researches in the areas of cutting edge innovations in the Business and Social Sectors. A unique partnership between top Indian Business Schools and the corporate world in Applied Innovation Innovation for India Awards to reward Business and Social Innovation.

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Marico Evenings are held at the Amphi Theatre at Bandra's Carter Road. The fortnightly initiative Some of the past Marico Evenings: -Mayurbhanj Chhau -Gotipua -Amazing Animal World promotes young talent and aims at preserving celebrated art forms and culture from the past and present. Spanning music concerts, dance shows, plays and mini skits, Marico Evenings play host toa wide genre of art and entertainment.

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Conclusion The hair oil & hair style industry of Bangladesh consists of a few producers in the industry. The demand for this product is very much vulnerable in terms of pricing. Marico Bangladesh is providing PARACHUTE. at a price which is affordable to most of the people in the country. Hair oil is an uprising product in Bangladesh as a greater portion of the population, both male and female, are now getting more hair conscious. As a multinational company Marico Bangladesh with heavy promotional activities, has been able to penetrate the market. With different fragrances, different sizes, international standard and high quality design, as a product, PARACHUTE has been highly successful over the years. Its distribution process is highly efficient. Its promotional activities, like the beauty contest has been a milestone in attracting a huge number of customers. Overall with its marketing activities PARACHUTE has been a successful brand. The only place where rival companies are progressing is in giving customers redemption offers. Research revealed that Bangladeshi customers are highly attracted to this sort of offers. These offers are not sustainable in the long run but still it takes away a considerable part of PARACHUTE’s sale in the short run.

Recommendation Now the team would suggest some recommendations to Marico Bangladesh Ltd. to adopt more successful operation in Bangladesh. Since a huge portion of the rural poor people is demanding PARACHUTE in recent days,  Marico Bangladesh Ltd should expand their target market also towards the rural people.  They should also conduct different promotional activities in rural fairs and socially responsible promotional activities to attract rural consumers and social awareness

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 PARACHUTE has different types of hair oil & hair style cream .So now if they provide different flavor of hair oil & hair style cream both for male and female under the same brand name PARACHUTE it might increase their sales.  Lastly, as Bangladeshi culture children have a huge say in shopping so they should also promote the product to children .These are the recommendations suggested by teem members to Marico Bangladesh Ltd. to adopt for a more successful operation in Bangladesh with large market share.

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