Business Strategy Marico

8/20/2019 Business Strategy Marico

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Submitted By:

Mousumi Mazumdar

Roll No: 22068

Business StrategyMarico Industries Ltd.



bout Marico..

Industry Consumer Goods!ounded "#8$

%ead&uarters Bandra' Mumbai' India

(ey )eo*le %ars+ Mari,ala

)roducts -dible il' %air il' S/in )ersonal care' etc.

Mar/et 1a*italization urno3er)ro4t

INR "5'000 1roreINR 5'6$8 1roreINR 58 1rore

7ebsite ,,,.marico.com



Name-DesignationMr.%ars+ Maria,ala : 1+airman

Mr. Saugata 9u*ta : Managing irector 1-

Mr. Milind Sar,ate : 1+ei; < %R and Strategy

Mr. Ra/es+ )andey : 1+ie; -=ecuti3e >cer < (aya

Mr. ?ilas S+ir+atti : 1+ie; @ ec+nology

Mr. %ema Ra3ic+andar : 1+airman o; 1or*orate9o3ernance 1ommittee

Mr. ?iAay Subramaniam : 1+ie; -=ecuti3e >cer <International Business

Mr. ?inod (amat+ : 1+ie; < !inance and I and 1om*l.>cer

TOP MANAGEMENT

“At Marico, everyone is a member and not anemployee. As a member, each individual isempowered..”



?ision< Its time< Ma/e adiCerences t+e global landsca*e c+anges' Marico sees t+at t+e ,ay

;or,ard ;or gro,t+ is t+roug+ *artners+i* and a s+aredunderstanding o; resources and needs. %a3ing consolidated oursuccesses and inno3ations' ,e no, loo/ at streamlining our 3ision;or t+e ;uture to,ards de3elo*ing economies. *artners+i* ,it+t+ese countries relies on collaborati3e eCort < constantly gi3ing'

ta/ing' learning and en+ancing 3alue. +roug+ directed strategyand our +ard earned e=*ertise in nouris+ment and grooming' ,e,ill ;ocus our eCorts in sia and ;rica to,ards creating a ne,,a3e o; recognition' a,areness and *enetration. 7+ile eac+conte=t demands s*eci4c' customized *roducts' ,e oCer a 3arietyo; o*tions t+roug+ our di3erse *ort;olio. 7e ,ill be Dne Marico

s*read across geogra*+ies and categories' and continue to createmore synergies and learnings as ,e mo3e ;or,ard in t+is Aourney.nd ,e ,ill continue to moti3ate and trans;orm t+e li3es o; allt+ose ,e touc+ because ,e are em*o,ered to ma/e a diCerenceE



MISSION

'COME WIN' ---- their mission is captured in this acronym, which

when bifurcated means the following -

Consumers they are the reason we e!ist"

#he primary focus of our efforts will be to not only understand what

adds greatest $alue to the consumer but also change and rein$ent

oursel$es if need be"

We will translate the consumer's needs and desires into mar%etable

products and an e$er-e!panding base of loyal consumers, with

speed and a &uality of response that surpasses the competition"



Membership: or a sense o! o"nership empo"ers us.7+olesome members+i* is ,+en a *erson brings +isF+er

entire being into t+e organization.

It also gi3es eac+ member a role in articulating and s+a*ing

t+e destiny o; t+e organization' ,+ic+ in turn' buildscommitment and o,ners+i*.

E#$e%%en$e: or it un%eashes our potentia%&

7e ,ill ;ocus on *olicies and *ractices ,+ere *eo*le *roduceconsistently su*erior *er;ormances and ,+ere *eo*le areencouraged to disco3er t+eir unta**ed *otential.



Wealth: For on it hinges our growth.

ll our efforts must culminate in the creation of wealth" We will do so by

continuously adding $alue in e$erything we do through a $ariety of methods"

We will use sources producti$ely, eliminate waste, reduce cycle times and

costs and enhance the consumer base"

Innovation: For it gives wings to ideas.

#he future of our organi(ation rests on our willingness to e!periment, push in

new and untested directions, thin% in uncommon ways and ta%e calculated

ris%s"

Continuous impro$ement should be a part of e$eryday wor%"

We ac%nowledge that failure is inherent in any new initiati$e" We will commit

resources for e!perimentation and in$est in processes for re$iewing and

sharing of learning"



!ocus on 9ro,t+G )rioritize 3olume gro,t+ Hconsumer ;ranc+ise

e=*ansion o3er

s+ort term *ro4t

@ -merging mar/ets ,it+ lo,Fmoderate *enetration

@ Maintain unit gross margin ,it+in a bandG Re<in3est *ro4ts to rein;orce establis+ed brands

and build ne,

gro,t+ engines ;or t+e ;uture

@ )rototy*ing : maintain inno3ation *i*eline

@ Strategic !unding HJ o; *ro4ts eac+ year

@ S) range o; "0J to "2J

G Inorganic 9ro,t+ to su**lement rganic 9ro,t+



Inorganic 9ro,t+G !ocused on +air care' s/in care and +ealt+ care in India@ International : *rimarily +air care' s/in care and male

grooming

G Internationally ;ocused on de3elo*ing mar/ets in sia and;rica

G )ro3ides o**ortunity to enter a ne, mar/et@ Ne, category in a core mar/et

@ c+ie3e scale in an e=isting category

G -stablis+ *otential to become No." or No.2

G -stablis+ *otential to add 3alue in branding and distribution

G -n+ance de*t+ o; category /no,ledge in +air care F s/in care@ Le3erage across all Marico geogra*+ies

G (ee* trac/ o; R1- benc+mar/ o3er t+e medium term



Mar/et Leaders+i*: (ey to 1ategory1+oice



International Strategy +e international business gre, by "6J ,it+ a structural s+i;t int+e o*erating margins ;rom "0<""J a ;e, years bac/ to o3er "6J

;or t+e year and e=*ect t+e long term o*erating margins tostabilize in t+e range o; "K<"5J.



!uture 9ro,t+ StrategyG -=*and Mar/ets ,+ere ,e +a3e signi4cant leaders+i*@ )arac+ute coconut oil in India and Banglades+

@ SaCola @ )remium +ealt+y re4ned edible oil

@ %air 1odeF!iancee @ +air gelsFcreams in -gy*t

@ )ost 7as+ 1onditionerF%air Serums in India

G Increase S+are in ot+er categories

@ %air ils in India Banglades+@ %air creams gels in t+e Middle -ast

@ Male eodorants in India ?ietnam

@ Male S+am*oo in ?ietnam

G Introduce ne, *roducts @ larger size t+an in t+e *ast

@ SaCola ats' )arac+ute d3ansed Body Lotion' Li3on %air 1olours

@ Broader *lay o; our *roduct *lat;orms across /ey mar/ets

G 9eogra*+ic -=*ansion

@ Sout+ -ast sia' Sub<Sa+aran ;rica

G Inorganic 9ro,t+ to su**lement organic gro,t+



EN'I(ONMENT ANA)*SIS

+e consumer goods sector in India is +ig+ly com*etiti3e and due to its lo, marginsand +ig+ 3olume model' o;ten 3ery lo, *ro4ts are realized due to t+e +ig+ly saturatedmar/et.

!rom t+e total *o*ulation H".2 Billion o; India ,+ic+ is Maricos /ey mar/et' about

$0J li3e in rural areas and t+is segment accounts ;or about 60J o; consumer goodsconsum*tion in t+e country' +ig+lig+ting a +uge o**ortunity ;or t+e !M19 industry.%o,e3er in regard to Maricos /ey *roduct 3iz. %air oil' t+e consum*tion +as decreasedas oil +as been substituted by ot+er +air *roducts suc+ as gels and creams ,+ic+ are

more in tune ,it+ t+e /ind o; image todays yout+ ,ants to *ortray. n t+e tec+nology ;ront many ad3ancements +a3e been made recently suc+ as

im*ro3ed in;ormation s+aring and o*timization o; su**ly c+ain as ,ell as in3entorymanagement. Marico uses IBMs 1ognos M" -R) solution ;or better management o; itsdata2.

In re;ormati3e regimes t+e ne,ly *ro*osed 9oods and Ser3ice a= or better /no,n ast+e %armonized Sales a= ,ill *ositi3ely aCect t+e consumer goods industry. 9S ,illconsolidate t+e ta= system and eliminate all t+e secondary and tertiary ta=es suc+ as

1entral and State s*eci4c sales ta=' t+is ,ill bring do,n manu;acturing costs and enablebetter margins ;or t+e industry.



COMPETITO( ANA)*SIS

Maricos including its com*etitors incur +ea3y launc+ costs on ne, *roducts on launc+ ad3ertisements';ree sam*les' celebrity endorsements *roduct *romotions and so does Marico to ensure greater mar/et*enetration. 1om*etitors o; Marico also +a3e e=tensi3e distribution net,or/s logistics t+is enables +ig+le3el o; *enetration in bot+ t+e urban rural mar/ets.

n t+e basis o; Maricos /ey *roduct +air oil' its main com*etitors ,ill be %industan nile3er Limited Hor%L' abur and -mami ,+ic+ +a3e launc+ed ne, +air oil *roducts directly com*eting ,it+ Maricos)arac+ute.

o %L +as about ten times t+e mar/et ca*italization as com*ared to Marico' +o,e3er Marico o,ns Aust asmuc+ assets as %L. +e /ey strategy at %L seems to be ris/ management t+roug+ di3ersi4cation e3identby its *ort;olio o; more t+an 0 brands6.

o abur +as a greater sales turno3er indicating +ig+ 3olume o; abur *roducts are being sold. abur India+as establis+ed itsel; as t+e mar/et leader in ayur3edic H+erbal *roducts and is le3eraging t+at to ;oray intot+e +air oil segment as ,ell.

-mamis +air oil is targeted to,ards t+e ,ea/er sections o; t+e economy due to its lo, *rices' t+is is +ig+lydiCerent t+an Maricos )arac+ute ,+ic+ is *ro*ounded on t+e basis o; *urity and an o3erall +air care solution.

o Marico ;aces com*etition ;rom BaAaA 1or*. due to t+eir +ig+ly success;ul almond +air oil similar inno3ationssuc+ as oils ,it+ +erbal ingredients' non<stic/y oils' and anti<dandruC +air oils' among ot+ers are gi3ingtoug+ com*etition to Marico.

In regard to t+e edible coo/ing oil segment' Marico ;aces com*etition ;rom t+e dani 7ilmer 9rou*H)ri3ately +eld and ;rom gro ec+ !oods. n t+e beauty care *roducts ;ront Maricos /ey com*etitors are9odreA and )roctor 9amble Hor )9' t+is segment is also c+aracterized by a large number o; small *layers;ocusing mainly on *ersonal care.



I'E O(CES ANA)*SIS

Recently t+oug+ a;ter ;acing stiC com*etition ;rom ot+er +air oil brands,+ic+ ,ere ;a3ored by t+e yout+ o3er )arac+ute' Marico also decreasedits de*endence on t+e coconut oil by *roduct line e=tension t+roug+adding 3alue<added +air care *roducts and ot+er s/in care *roducts intoits stable. +ese *roducts are sold under t+e umbrella brand o; )arac+uteto le3erage t+e su*erior brand name it +as ac&uired o3er t+e years. +eres*onse +as some,+at been mi=ed as t+e bargaining *o,er o; t+e

consumers is +ig+ in t+e industry due to lo, s,itc+ing costs and also+ig+ *romotional acti3ities underta/en by t+e com*etitors. Marico +asalso launc+ed oats and ot+er cereal ;oods to ca*ture t+e +ealt+ consciousdemogra*+ic ,+ic+ is mus+rooming ra*idly.

+e entire !M19 sector rests in t+e balance due to its su**liers and ot+er3endors as ,it+ any ot+er manu;acturing based sector' t+ereby gi3ing

su**liers some,+at moderate bargaining *o,er *ro3ided long termrelations are establis+ed. +e *rice o; !M19 goods ;or t+e most *art arego3erned by t+e commodity mar/ets t+ereby ma/ing t+e industry *layers*rice ta/ers lea3ing 3ery little room ;or mar/et s/imming by launc+ing*roducts at a +ig+er *rice initially.



(ECOMMENDATIONS

Marico needs im*ro3ed eCorts to retain itscom*etiti3e *osition in t+e +air oil mar/et by oCeringcom*lete +air care solutions.

Marico s+ould consider launc+ing t+eir *roducts undera diCerent brand name' as D)arac+ute is still associated

to stic/iness ,+ic+ +olds bac/ t+e ne, *roducts Hnon<oilbased suc+ as +air gels' etc. t+at t+e com*any +as beenlaunc+ing.

Marico needs to in3est in establis+ing distributionc+annels in rural areas o; t+e country ,+ic+ +a3e a +uge

unta**ed mar/et *otential. Marico s+ould also aggressi3ely *us+ its ne,ly

introduced oats and cereal based *roducts as demand o;+ealt+ ;oods is increasing mani;old.

Business Strategy Marico

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