MSP KJJSAGCK

52
Parachute Hair Oil INTRODUCTION History of Marico The history of Marico can be traced all the way back to 1857, when a young man ‘Kanaji Moorarji’, set up a modest trade in spices which, in time, grew to include other export worthy commodities. This firm’s success gave birth to The Bombay Oil Industries in 1948; set up to convert the traditional buying strengths of the firm in the commodities are as, to value added manufactured products. At first Bombay Oil was involved in copra trading besides crushing and refining of vegetable oils. Gradually, the company established itself firmly as a marketer of branded vegetable oils and later expanded into fatty acids, specially chemicals and spice extracts. In 1983, Bombay Oil divisionalised its operations to create three Businesses: A Consumer Products Division; A Fatty Acids and Chemicals Division and an Oleoresins Division, also called the Spice Extracts Division. In 1990, Bombay Oil again restructured itself to form several companies, each focusing on a specialized area of business. In April 1990, the Consumer Products Division became “MARICO”. Marico is an Indian consumer goods company providing consumer products and 1 | Page Anna Leela College of Commerce and Economics

description

KSDJBKJSDBHKAJH

Transcript of MSP KJJSAGCK

Parachute Hair OilINTRODUCTION

History of Marico

The history of Marico can be traced all the way back to 1857, when a young man Kanaji Moorarji, set up a modest trade in spices which, in time, grew to include other export worthy commodities. This firms success gave birth to The Bombay Oil Industries in 1948; set up to convert the traditional buying strengths of the firm in the commodities are as, to value added manufactured products. At first Bombay Oil was involved in copra trading besides crushing and refining of vegetable oils. Gradually, the company established itself firmly as a marketer of branded vegetable oils and later expanded into fatty acids, specially chemicals and spice extracts. In 1983, Bombay Oil divisionalised its operations to create three Businesses: A Consumer Products Division; A Fatty Acids and Chemicals Division and an Oleoresins Division, also called the Spice Extracts Division. In 1990, Bombay Oil again restructured itself to form several companies, each focusing on a specialized area of business. In April 1990, the Consumer Products Division became MARICO. Marico is an Indian consumer goods company providing consumer products and services in the areas of Health and Beauty based in Mumbai. During 2009-10, the company generated a Turnover of about Rs.26.6 billion (USD 600 Million), in respect of its food, hair care and skin care related activities. Marico's own manufacturing facilities are located at Goa, Kanjikode, Jalgaon, Pondicherry, Dehradun, Baddi, Paonta Sahib and Daman. In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary manufacturing facility at Mouchak, near Gazipur. Maricos brands and their extensions occupy leadership positions with significant market shares in a number of health and beauty areas. Saffola is essentially blended refined edible oil which is claimed to be beneficial for Heart health. It is marketed under the names of New Saffola, Tasty and Active. All of them contain blended vegetable oils in various proportions. The main types of oils which are blended include Rice Bran oil, Kardi oil or Safflower oil, Corn oil and Soya oil. In addition to being a producer of consumer products the organization also operates Kaya Skin Clinic (of which (as of 2010) 81 exist in India, 13 in UAE) and 2 in Bangladesh. Marico recently acquired the aesthetics business, of the Singapore based Derma Rx Asia Pacific Pte. Ltd. (Derma Rx), under the Kaya portfolio. All the services offered at Kaya Skin Clinic are designed and supervised by a team of over 250 dermatologists and carried out by certified skin practitioners who have undergone more than 300 hours of training. The services are US FDA approved and tested in-house, and conform to the highest international quality standards. Kaya Skin Clinic has over 600,000 satisfied customers. Harsh Mariwala is the Chairman and MD of this organization. The company has 3 divisions the Consumer Products Group (CPB), The International Business Group and Kaya Skin Clinic. CPB is headed by Saugata Gupta. Kaya Skin Clinic is headed by Ajay Pahwa. The company in recent years has been known for its foreign acquisitions in countries such as South Africa, Egypt and Singapore.

Marico tests cooling hair oil segment Fast moving consumer goods (FMCG) major Marico plans to enter the cooling hair oil segment by launching two products Parachute Advanced Cooling Oil and Nihar Naturals Cooling Oil. The products are currently being test-marketed in a few rural belts Parachute in Andhra Pradesh and Nihar cooling oil in Bihar and Jharkhand.At Marico, we keep fine-tuning the mix till we are satisfied that the model is scalable, said Sameer Satpathy, head of marketing, Marico. Marico had entered the cooling oil segment earlier with Maha Thanda, but the product never went national. The current move is seen as the companys attempt to gain a bigger piece of the overall hair oil segment in India, which is worth about Rs 3,000 crore, out of which Marico holds a 21 per cent market share.There are several regional players in the segment with a huge presence in rural markets. Emamis Navratna, for instance, is the biggest player in the cooling hair oil segment with a market share of around 70 per cent. The Rs 300-crore brand, which has a prominent presence in Andhra Pradesh, seems to have left no stone unturned in its strategy to market Navratna. As far as the advertising goes, it has managed to rope in Shahrukh Khan and Amitabh Bachchan as national and Telugu actor Mahesh Babu as a regional brand ambassador. Marico, on the other hand, has some regional advertising that is handled by McCann Erickson and Bartle Bogle Hegarty (BBH) for Parachute and Nihar coconut oils, respectively.Our cooling oil will be differentiated on the fact that it will have coconut, which means it will be coconut-based and have cooling properties, said Satpathy. Analysts say that although there are major hurdles for Maricos new brands, there are enough opportunities in this segment.This segment is difficult to break into and cooling hair oil is not a very aspirational product. Marico clearly seems to be riding on the success of its existing status in the market as it has a significant share in the branded market. Though cooling oil is more expensive, the price factor can be overcome with aggressive product promotion, said Purnendu Kumar, an analyst from Technopak India. Industry experts say Marico cannot afford to miss out on the Rs 450-crore cooling hair oil market and could expect 20-30 per cent of its revenue from the segment. Even without the cooling oil variant, both Parachute and Nihar enjoy over 50 per cent market share in the branded hair oil segment. Parachute coconut oil in rigid packs grew about 13 per cent sequentially in volume in the April-June 2009 quarter. During the period, its hair oils in rigid packs grew 9 per cent.

Parachute oilMarico industry is one of the largest FMCG Company in India, Offering a customized brand, catering to the needs of the target audience. Marico also has a very strong nationwide network, which makes the brands available for the customers. Ultimately, for a FMCG Company distribution is the core focus area. Marico is well known for its brand, Parachute coconut oil. Parachute is one among Indias Top 100 Most Trusted Brands and is the worlds largest packaged Coconut Oil Brand. Parachute is the flagship brand of Marico which consists of edible grade coconut oil. Marico manufactures and markets its coconut based hair oils under its popular brand - Parachute Advansed and a series of extensions thereof. Indian expatriates in the Middle East had been smuggling Parachute oil with them for their daily use when export of the oil was restricted prior to the 1991 economic liberalization. Marico decided to try to sell products in that market after liberalization, but found that Arab customers did not like the scent of coconut, wanted a less sticky hair product, and needed a product to counteract the high level of chlorination in their water. When Marico reformulated its product, its market share in the Arab Mideast grew from 2% in 2002 to more than 20% by 2008.

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 India. 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. 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.

Parachute advanced refined hair oil [with fruity perfume] is the latest introduction from Marico. Parachute has always strived to remain relevant to every new generation. It is a brand that is backed by years of trust and heritage and it aims at using the same equity to appeal to the young Indian consumer. Launched in 2004, the parachute advanced refined hair oil comes packed in a sleek looking, light blue translucent bottle. Parachute advanced is refined coconut hair oil with a pleasing fruity fragrance. It is also lighter than other coconut oils, which makes it ideal for the young, appearance conscious consumer. Parachute is premium edible grade coconut oil, a market leader in its category. Synonymous with pure coconut oil in the market & is positioned on the platform of purity. Parachute thus enjoys tremendous equity, trust with every passing generation & loyalty in the urban as well as rural sectors of India. Innovations in the packaging whether from the aspect of user-friendliness or aesthetics have and continue to help Parachute grow.

History of the Product Parachute is premium edible grade coconut oil, a market leader in its category. Parachute is positioned on the platform of purity. Parachute pioneered the switch from coconut oil sold in tins to plastic. Parachute is the market leader in the branded hair oil market with a market share of around 53%. The brand was established emphasizing caring and Mother-Daughter relationship. There is a 1500 crore industry which is dominated by unbranded oils. Marico in early 1990s made a bold step in launching a brand in this segment.

Goals and objectives Company commits itself to improving the quality of peoples lives in several parts of the world, through branded Beauty & Company products and solutions. Company shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on 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 business 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 is significantly present. To know how far consumer purchase decisions are influenced by the advertisements of parachute coconut oils. To know about the satisfaction level of consumers with regard to parachute coconut oils. To know the consumer preference towards parachute coconut oil. To know the consumer perception towards the price of parachute coconut oil.

Vision & mission 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 hings our growth. Innovation: For it gives wings to ideas.

Mission 2020 The Marico Innovation Founders mission is to provide the nation with first: a belief that Innovation is possible and is the way to leap frog India into center stage of global business leadership, and a second: a framework to leverage innovation for quantum growth.

FEATUREParachute Advansed Jasmine Coconut Hair Oil Coconut hair oils are well known for their beneficial properties for hair. As a hair care product, hence, women generally always prefer coconut based hair oils. Parachute, the much acclaimed brand for hair care in India, has a range of coconut oil under its kitty. One product from the range is called Advansed Jasmine Hair Oil. In this product, goodness of coconut oil has been intertwined with jasmine to give you a perfect look. Parachute Advansed Jasmine oil is essentially a perfumed coconut oil. This has been crafted with jasmine extracts. Jasmine has great symbolic meaning and is associated with a ritual called 'Pahli Angol'. This is an auspicious ritual for married women in Maharashtra. Thus, by incorporating Jasmine, this product seeks to celebrate the spirit of womanhood. Thus, application of Jasmine oil does not make your hair look bad. Besides, this oil has advantages of coconut within it. According to a research conducted by Parachute, coconut oil can offer hair with deep nourishment. Parachute claims that coconut hair oil can go as deep as the medulla. Thus, not just the shaft of hair, hair follicles also get conditioned from within. The high penetration power of coconut oil is due to the presence of Medium Chain Triglycerides (MCT) within the oil. This infuses coconut oil with great moisturizing capacity for hair. Thus, the Advansed Jasmine oil gives you nourished and gorgeous hair. At the same time, it leaves lingering and pleasant smell of jasmine in your hair.

Parachute Advanced Coconut Hair Oil Parachute Advansed coconut hair oilis 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 the hair oil and the role it plays in maintaining her hair healthy and well nourished. 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. With regular use of Parachute Advansed, hair strength is known to increase by up to 16%. Whats more, when applied pre-wash, Parachute Advansed reduces protein loss up to 28% and restores the health of hair.

Parachute Advanced Cooling Oil This oil controls hair fall and rejuvenates the scalp. The herbs in the oil balance the aggravating doshas and render natural growth of your hair. It also reduces dandruff, prevents pre-mature graying and prevents dryness.Parachute Advanced Scalp Therapie Hair Fall Control New Parachute Advansed Scalp Therapie Hair Fall Control, is an oil based solution specially formulated to infuse new life into your scalp and control hairfall effectively. When the Scalp loses nutrients, It stops providing nourishment to hair, leading to hairfall. This unique formulation with Active Protein Complex gets absorbed deep within the scalp to replenish lost nutrients.A well nourished scalp effectively controls hairfall Use Parachute Advanced Scalp Therapie Hair Fall Control Regularly for Best Results. ** 89% Consumers showed a reduction in hair fall based on improvement in Anagen, Telogen ratio basis daily application **Not for hereditary hair fall. Not for hair fall due to medical conditions.

Parachute Advanced Ayurvedic Hot OilParachute Advanced Ayurvedic Hot Oil, a coconut oil enriched with ayurvedic warming oils of malakangani and piper nigrum. Pour oil onto your palm, Rub Palms together to feel the warmth come through. Gently massage onto hair and scalp. The warmth opens up the pores and the oil soaks in, providing deep nourishnment. Wash off to get beautiful, lustrous hair.Parachute Advanced Ayurvedic Hair Oil The oil nourishes hair roots and scalp, effectively controlling hair fall, Get long, thick, beautiful hair. It also promotes hair growth, prevents premature greying, and reduces dandruff - keeping your hair healthy. Massage regular for best results.

Parachute Advanced Aftershower Anti-Dandruff Hair OilParachute Advanced Aftershower Anti - Dandruff Hair Oil. Lemon, neem and tea tree oil for relief from itching and flaking Coconut oil for healthy and nourished hair non sticky formula for soft shiny hair use daily, after shower.

PRODUCT STRATEGY

1. Understanding the Existing Strategies

It has been a long road for Parachute (the first branded coconut oil in the Indian market) and the journey began more than four decades ago. Today the blue bottle is a strong metaphor for the Coconut Oil category and reaches 18 million households every year. The Parachute story is even more remarkable considering that the brand has stood the test in face of players with deep pocket sand fickle consumers with growing aspirations. The Coconut Dream was taken forward in communication at 2 levels. On the rational front, it represented the nourishment, proteins and vitamins and on the emotional front it stood for nurturing, caring and a mothers love. From the initial stand of purity to that of clarity to the Vital Nourishment, the brand has made the tough passage and gone from strength to strength. Improvement in the functionality area: Wide Mouth Jar, Easy Jar and the Flip Top pack with Tamper proof seal. The Easy Jar positioned as the all season jar was launched as the Kamaal Ka Dhakkan mainly to address the North markets where severe winters make the hair oiling a challenge. The jar that offers the twin benefits of a wide mouth and has an easy pour cap which ensures the pack does not suffer seasonality.

2. Best strategies Applied So Far

They changed pack shapes to one that is sleek, modern and aesthetic. Flip top cap to ensure safety and purity of parachute oil. Easy jar of parachute to facilities usage during winters. Parachute mini - a bottle shaped sachet sold at an MRP of Re.1 20 ml parachute - a Rs.5 that enables loose oil users to up grade Strong distribution network.Maricos strategy was focused on increasing its presence across the entire hair oil segment by launching value-added products and through brand and product extensions. The company had attempted to tackle the unorganized segment through low-cost and small-unit packs.

3. Other Extensions are Brand name: Parachute Advansed refined hair oil and Parachute JasmineTarget audience: Young and appearance conscious consumer.Positioning: Focuses upon the fragrance aspect of the oil.

Brand name: Parachute After shower Hair CreamTarget audience: Young men (SEC A, B)Positioning: Focuses upon stylish look, non-sticky and nourishing aspect.

Brand name: Parachute SampoornaTarget audience: Women customersPositioning: Focuses on providing strong hair.

Brand name: Parachute Natural shampooPositioning: On the platform of Naturals which makes hair healthier

4. Strategies to Increase Market Share

a) Parachute with different fragrance: Rose Jasmine Neem

b) New parachute oil bottle with press mechanism as a new feature: Usage as per the use It will reduce the psychological fear of the consumer Parachute oil in a transparent bottle so that customers understand the optimum usage of the product

c) Parachute Oil for Different Hair Types Curly hair Rough hair Straight hair

d) Parachute Ayurvedic Oil The herbs and medicinal herbs are used to enrich the oil content. It would help to nourish your hair growth and strengthen it. People having hair scalp problem can make optimum utilization of the Ayurvedic hair oil.

e) Parachute Scalp Oil To Prevent Excessive hair loss. To Reduce density of oil in hair because a survey revealed that excessive content of oil in hair leads to hair loss as the oil clogs in hair and leads to formation of wax in the scalp thus leading to damage of scalp.

New- parachute Advansed Therapie hair vitaliserWhat the company claims - New Parachute Advanced Therapy Hair Vitaliser is an oil based product that heals damaged roots and control hair fall in 30-45 days.

How does hair-fall happen?Stress, pollution, improper diet, hormonal imbalances, poor quality of water & ageing can damage hair roots and cause hair fall.

How does New Parachute Advanced Therapy Hair Vitaliser works?Its unique root healing complex is a blend of essential proteins, herbs, vitamins & minerals that penetrates deep into the roots and control hair-fall.

Packaging- it has a black flip-top cap. The bottle is silver in color (quite classy).

Price- INR 99 for 100 ml

Directions for Use- Massage overnight. Use 3 times a week.

Specifications of Parachute Advansed Jasmine Hair Oil (300ml) a) General Traits Ideal for Women Container Type Bottle Quantity 300 ml Organic yes Organic Type Naturalb) Hair Oil Traits Hair Type All Hair Types Composition Coconut, Jasminec) Additional Traits Non-sticky Oil Moisturization Adds Shine

Specifications of Parachute Advansed Coconut Hair Oil (170 ml)a) General Traits Ideal for Women Container Type Bottle Quantity 170 ml Organic Yes Organic Type Naturalb) Hair Oil Traits Hair Type All Hair Types Composition Ylang Ylang Oils Applied for Hair Strengthening, Conditioningc) Additional Traits Penetrates Hair Roots Reduces Protein Loss Restores Hairs Health Deep Fragrance

Specification of Parachute Advansed Ayurvedic Hair Oil (95 ml)a) General Traits Ideal for Women Container Type Bottle Quantity 95 ml Organic Yes Organic Type Naturalb) Hair Oil Traits Hair Type All Hair Types Composition Amla, Ghritakumari, Mehendi, Nagarmotha, Sungandhit Dravya Oil. Applied For Hair Fall, Hair Growth, Dandruffc) Additional Traits Nourishes Hair Roots and Scalp Prevents Premature Graying

Specifications of Parachute Advansed Scalp Therapie Hair Fall Control Hair Oil (190ml)a) General Traits Ideal for Unisex Container Type Bottle Quantity 190 mlb) Hair Oil Traits Hair Type All Hair Types Composition Alpha Proteins Applied For Hair Fallc) Additional Traits Natural Root Activising

Parachute Advansed Cooling Hair Oil (190 ml) This nourishing hair oil can relax your senses whilst making your hair healthier. It is common knowledge that Ayurveda has remedies to various ailments. The Parachute Advance hair oil is incorporated with a mix of 21 Ayurvedic ingredients like Amla, Gandha Purva, Brahmi, Chandan, Coconut etc. The vitamins and minerals present in these natural components revive your hair by promoting hair growth and reducing instances of hair fall.The Amla extract present in this cooling hair oil, has the tendency to reduce blood pressure and leave your scalp with a refreshed sense of coolness. As a moisturizing agent, Amla retains the natural moisture levels of your hair, thus keeping it soft and shiny. By eliminating dryness, this hair oil reduces dandruff and flaking. Additionally, the Brahmi found in this natural Parachute hair oil is a powerful herb infused with medicinal properties that ease away stress, tension and fatigue, thereby boosting your mental health. Also, Brahmi is known to improve memory and concentration to a notable extent.Furthermore, this revitalizing hair oil comes with Chandan extracts which soothe inflammation and irritation present on the scalp and provide your hair with an amazing fragrance. Lastly, Coconut essence in the hair oil strengthens your hair from the roots and reduces conditions like headache and sleeplessness. Moreover, the anti-aging properties of this coconut hair oil prevent early greying of hair and make your hair lustrous. Get marvelous mane by using the Parachute Advansed Cooling Hair Oil.

PRICING STRATRGY

Pricea) Price Parachute: 500 ml Rs.90 200 ml Rs.39 20 ml Rs.5 Mini a bottle shaped small pack: Re.1 Parachute Advansed: 300 ml Rs.80 170 ml Rs.48 80 ml Rs.27 Parachute Therapie: 50 ml Rs.190 Parachute Jasmine: 500 ml Rs.90 50 ml Rs.12 b) Major Factors Impacting Pricing Copra and oil seed input Packaging costs Competitors

c) Pricing Method Competitive Promotional pricing (20% extra)

d) Pricing Strategy Economy/Value

Place

Parachute sells all over India both in urban as well as rural India. Parachute Hair Oil is sold through retailers like supermarkets, kiranas, baniyas, general stores etc. It is also sold in Bangladesh and the Middle East.

Promotion

It advertises through Television, Print, Outdoor, and Digital. The brand has been endorsed by celebrities like Deepika Padukone, Diya Mirza, Yuvraj, and Sreesanth. Advertising is heavy before Holi & during winters. Popular & effective campaigns like 1 hour champi kiya (have you done an oil head massage 1 hour before shampooing) help remind people about the benefits of oiling before hair wash. Parachute also uses van campaigns, Haats in rural areas to promote the brand. Sales Promotion like 20% extra was made on the 200 ml pack.

COMMUNICATION MIX

1. Advertising Advertisements of Parachute focus on the Pure and Natural features of the oil which has made it popular in most Indian households, who have been using it for many years now. In case of Parachute Coconut oil, the company leveraged the brands core benefits creatively to develop advertising that is highly liked by the consumer. It was identified that consumers test the quality of a coconut oil through its aroma. Parachute is made out of coconuts that are handpicked in Kerala that gives it a special, distinctive aroma. This was effectively leveraged through a highly successful advertising campaign that saw the market shares move up from 40% in September 2002 to 46% in February 2003.The Company introduced a unique concept to upgrade people from loose coconut oil to parachute Coconut Oil by contrasting to loose oil users the superiority of Parachute Coconut Oil. Parachute Coconut Oil is produced from the best coconuts from Kerala in very hygienic conditions and through machines that are automated. As a result, Parachute Coconut Oil reaches the consumer entirely untouched by hand. In contrast, loose oil is produced out of poor quality coconut in extremely filthy conditions. This distinction has been captured in advertising that has been created to highlight the disparity between the manufacturing techniques of loose oil vis--vis Parachute Coconut Oil. This has resulted in an 8% growth in Parachute compared to -5% of competition between November 2002 and February 2003. Basis extensive qualitative research, Parachute Jasmine arrived at the insight of mera pati, mera mangetar which had a significant emotional connect across audiences. This insight was leveraged in the brands advertising as a result of which the market share of the brand moved up from 25% to 35% in the value added coconut hair oil category.

2. Sales Promotiona) Parachute organized a Loyalty programme for its consumers with a headline: Har pack per paayiye points, aur points par paayiye aakarshak inaam 50 points: 1 Hair brush free 150 points: 100 ml Parachute Hair Oil free 250 points: 100 ml Parachute Hair Therapie free 1000 points: 1 free visit to Kaya Skin Clinicb) Parachute also launched Personal Hygienic Awareness Camps in school: Student who participated in these camps got discounts coupon.

3. Trade Promotion Gifts or Attractive schemes were made to make the retailers and distributors to stock more which would increase the sales There were additional margins for the retailers who sell more Incentivizing the retailers and consumers to collect the parachute oil cans, jars, and bottles for recycling - A Trade and Consumer promotion

4. Public relations Parachute took a CSR initiative in conserving the resource by recycling the products. This created goodwill for the companys brand in the society.

5. Sponsorship Jatra (open-air folk theatres) to facilitate an increase in Parachutes market presence in rural areas. Partnership in each of them would cost the company anywhere between Rs.25, 000 and Rs.65, 000 depending upon the troupes that are hired. Discount coupons can be distributed among the spectators.6. Direct Marketing When the consumer registers with Parachute Advansed coconut hair oil, the company contacts the consumer from time to time about updation of their content to provide the users such features that they believe may benefit their customers.

7. Message Strategies Around 1996, a decision to do a makeover was taken when research revealed that though the brand stood for purity and coconut oil, it was seen to be losing grelevance among a younger target audience. Parachute emerged in a new avatar with new communication and contemporary packaging. To tackle the other end of the spectrum the loose oil consumer, Parachute launched 100 ml pouch packs at an attractive MRP to get new users into the fold. After having successfully used segmentation in terms of value added products, the company has trained its focus on using Packaging Innovations to drive the brand values.

8. Innovation Strategy Marico followed innovation as a major strategy in building Parachute brand. The following are some examples. 20 ml Parachute a Rs.5 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. The strategy followed by the company and the quality of the product offers a customized product in all seasons, to grab the price conscious customer and to provide value for money.

STAGE CHARACTERISTICSMarket Introduction Stage Slow sales volumes to start Demand has to be created Makes no money at this stage

Growth Stage Costs reduced due to economies Sales volume increases significantly Public awareness increases Competition begins to increase with a few new players in establishing market The preferred strategy is growth

Maturity Stage The preferred strategy is stability or modest growth Sales volume peaks and market saturation is reached Increase in competitors entering the market Brand differentiation and feature diversification is emphasized to maintain or increase market share

Saturation and Decline Stage Sales volume decline or stabilize Prices, profitability diminish Profit becomes more a challenge of production/distribution efficiency than increased sales.

BRAND EQUITY

1. Brand Saliencea) Depth of Brand Awareness Parachute has a high brand recall value. When we think of hair oil in general and coconut oil in particular, Parachute is the first brand which comes to our minds. Advertisements of Parachute focus on the Pure and Natural features of the oil which has made it popular in most Indian households, who have been using it for many years now. Hair-oils have undergone a number of changes in terms of composition, advertising etc. ever since they were first introduced. And consumer preferences have also changed accordingly with youngersters more comfortable with the non-sticky oils. Yet, the Parachute bottle with its distinct blue colour does crop up somewhere in the mind space of consumers, even non-users.

b) Breadth of Brand Awareness Parachute as a brand has few variants. Some of the products in its line are the winter variant of normal coconut hair oil which comes in wide-mouthed containers, Parachute Advansed, Parachute Star and Parachute Hair Cream. Parachute coconut oil is also used in cooking in many South-Indian families. Coconut oil is regarded as a healing agent for cuts and bruises. It is also used to prevent skin dryness in winter. Parachute comes from the prestigious Marico house. Marico is a popular FMCG brand which started the Kaya chain of skin clinics creating a niche market for itself in India.

2. Brand Performance Hair oil is needed to moisten dry, frizzy hair. It is a major source of nourishment to hair. Good hair oil prevents hair from getting damaged by strengthening its roots and also prevents hair fall. It improves the texture of hair. It also has a calming effect on the mind and body when used for massaging. Parachute for me scores on all the counts mentioned above.The primary ingredient of Parachute is coconut oil. It is supplemented by mildly sweet fragrance which succeeds in generating a soothing effect. The product, priced at Rs.35 is quite affordable. A bottle of Parachute has a simple, non-sophisticated design. Its pin hole opening prevents spillage of oil. It is very much portable since it is leak-proof. In winter oil tends to solidify. Parachute comes in special wide-mouthed containers for usage during winters.3. Brand Imagery Parachute has been an age-old brand in my family. Its become an inseparable feature of the dressing table. Family experiences of parachute have been fond. Its versatile usage has strengthened its image in my mind. The brands no-nonsense image makes it very popular among the middle-class with whom I associated deeply. Its other uses include daily use for hair-care, applicant for wounds and burns, prevents skin dryness during winters. The portable small bottle can also be used while traveling. The brand is available at most retail outlets ranging from small shops to hypermarkets. This highlights the presence of the brand across different customer segments.

4. Brand Personality In personality, Parachute is viewed as respectable and caring. Though old-fashioned in nature, it has been dependable to people in the family in many different ways. Its multi-purpose usage has made the brand an inseparable part of families.

The other aspects of Parachutes brand personality are:a) Sincerity The brand is sincere in meeting its objective of hair nourishment at an affordable price. Its purity is undoubted as it has been used as cooking oil in many families on many an occasion.

b) Excitement What makes the brand exciting is the wonderful texture it gives to the hair. Also, it comes in a vibrant blue bottle. Its sweet coconut-like fragrance does not make it repulsive like most other natural oils. So, the fact that the oil is natural and also smells good makes it an exciting product.

c) Competence By far, it is the first and only name that consumers think of when it comes to hair care. It may lack the flaunty nature of most other oils. But functionally, it is superior in terms of meeting its users primary requirement of hair-nourishment.

d) Sophistication Parachute has immense classiness. It has a refined image banking on its credentials of being pure and natural. It is in being simple yet exclusive that the brand has become sophisticated.

Parachute brought coconut oil out of tins into consumer friendly packaging. It has now penetrated deep into the market available even in rural areas.Brand Colour The vibrant blue colour denotes exuberance, style and liveliness.Country of Origin India Very aptly the Pure and Natural concept is embedded in its brand building strategies. Pure also conveys a sense of safety.

5. Brand Judgments Parachute is a very safe and dependable brand. Supreme in quality and consistent in terms of price, consumers feel it is irreplaceable. a) Brand Quality Consistent, quality has improved in the past 10 years. Even solidification does not alter its properties.

b) Brand Credibility Perceived expertise i) Market leader in pure coconut oil ii) Innovative in terms of new products launched in the same product line Parachute Advansed, Parachute Jasmine, Parachute Star, Parachute Hair Cream Trustworthiness Dependable, no event of skin/scalp disease on application Likeability Relaxing yet reviving

c) Brand Consideration My hair-type which is basically dry and frizzy needs the kind of nourishment Parachute provides. So personally it is very relevant to me.

d) Brand Superiority Parachute as a brand has even eclipsed its own family Marico. People recognize Parachute more than Marico. Competition to Parachute has been almost nil in the Pure Coconut Oil segment making it the undisputed leader in the market.

6. Brand Feelings The Brand gives a sense of confidence and makes the users feel cared for. It has graduated from being one of the favorite brands to one that users undoubtedly trust. The brand contributes a lot to the feel good factors. It makes users feel relaxed and this relaxation gives the users a renewed vigour to do things. The Parachute ad shows the hair-oil to be in-sync with nature highlighting Purity as being symbolic of Parachute.

7. Brand Resonance We live in the age of surfaces. Superficiality reigns supreme. Anything that looks good on the exterior is deemed fit to possess. So it is with hair-oils. Non-sticky hair oils come loaded with chemicals which damage hair in the long run. But the external shines they generate lure unsuspecting consumers towards them. This is where Parachute stands apart. For one thing, it is not superficial. Though greasy and old-fashioned in personal, it does not damage hair in the long run. Instead it nourishes the roots and makes them strong. And thats why users identify themselves with Parachute well. For users too dont believe in being superficial to maintain a short-lived good image which would prove detrimental to me in the long run, however users focus on their inherent strengths to enrich their life in the long run.

8. Sense of Community Users readily relate their selves with Parachute because they believe they share the quality of simplicity and effectiveness focusing on the more relevant things in life other than other flippant pursuits. The sense of kinship is indeed very strong. A Parachute session, as per users say is worth the time. It keeps them composed, calms the mind and makes them more productive. 10 minutes of using Parachute means 3 hours of improved concentration and hence improved efficiency.

BRAND UPDATE

In December 2007, Marico entered the kid's personal care market with the launch of a sub-brand " Parachute Advansed Starz" . Marico believe in extending its brands to new categories. It has done that for entering Men's haircare market by launching Parachute Aftershower . But once these new brands reach a position of awareness and recall, the sub-brands take up the position of a primary brand. Now Aftershower has an independent existence from Parachute. By launching Starz, Parachute is entering the Rs 2000 crore shampoo market which is dominated by HUL brands. Parachute AdvansedStarz is not restricted to shampoos but positioned as a haircare brand that offers different haircare solutions. Currently the brand offers Shampoo Hair Oil and Hair Gel. The brand is taking on a demographic segmentation and is targeting the kids of age group 4-12 Yrs. The Indian shampoo market has not seen a brand focusing specifically on this segment. Clinic All Clear is a brand that has targeted this segment but the brand is also used by adults.Clinic All Clear has used campaigns to target both adults and kids. For example the Chulbulli campaign is targeting Kids but the Bipasha + John campaign targets the adults. The product is the same.

The new brand of Marico is different because it is designed especially for

kids.The product, the packaging and the promotions are directly targeting the kids.Parachute Advansed Starz comes in attractive Pink bottles and features cartoon characters. The brand takes up the tagline " Gentle care for young hair " . Starz takes strength from Parachute and relies on the goodness of coconut to differentiate. The brand also claims advantage of Vitamins , Proteins and Strawberry. The brand essentially takes up Nourishment as the main brand benefit. has used two "cool" characters whose names are not yet publicized. If properly used , these characters can become powerful brand ambassadors.They look smart enough to appeal to the younger ones. I liked Starz because it shows the use of brand elements to the fullest. Starz. ( infact they remind me of Archies comic characters ). The brand is priced Rs 54 for 100 ml for the shampoo. Marico intends to develop a new category of specialized hair care solutions for the kids aged 5-10 and even the tweens. This is the age where kids develop lot of hair related problems because of their active & careless lifestyle. So far, Mothers used their own brand of shampoos or may have used Johnson's shampoo for this age group. The success of Starz may seen a new category opening up for marketers. The question that comes to my minds is whether there is a need for a kids-only haircare products ? The answer lies in the increased exposure of kids towards brands. The new NUF ( Nuclear Urban Family ) structure gives marketer an opportunity to target these segments. The success of Starz will depend on how Marico motivates the younger ones to pester their mothers to buying these products and also on how the brand captures the trust of the mothers. The first task is difficult because mothers are already convinced about Parachute. Parachute has done a smart work is positioning the brand as a haircare brand and not limiting itself to shampoos of hair oil. This gives more leverage and flexibility to the brand from the start itself.

SWOT ANALYSIS

1. Strengths Premium edible grade coconut oil. Market leader in its category, has a huge loyalty in the urban & rural sections of India. Synonymous with pure coconut oil & is positioned on the platform of purity. Brand has sought to remain relevant and differentiated through a slew of initiatives in packaging & communication like the weight-test (proving that pure coconut oil is heavier than impure oil). These innovations have ensured protection of existing franchise; they have propelled further penetration, enabling conversion of loose oil consumers to packaged Parachute Coconut Oil. Parachute enjoys tremendous equity and trust with every passing generation. Is entering the shampoo market with Starz and has a range specifically for the age group of 3-10 years.

2. Weaknesses Innovations like personal massager where available in select cities and limited quantities. Parachute Hot Oil should be a seasonal product and should be sold in winters and not during summers in places where it gets very hot.

3. Opportunities Parachute can get into skin care by introducing oils for application on the entire body. Parachute should launch variants that have not only coconut but also other natural ingredients that benefit the hair. This will help fight competition from brands that are not made of coconut but other ingredients like badam, Amla, mustard etc. Should launch variants that make the head feel cool and refreshed.

4. Threats Many players are entering the market. Parachute as a brand is positioned as a coconut oil. Competitor brands are communicating the advantage of using oils that are made of Badam, Amla, and Mustard etc. Though Marico is expected to roll out its Maha Thanda brand in March 2009 which is in the cooling hair oil segment, Parachute can lose market share as it does not have a product in that category.

SUCCESS

Relevance to the New Age Consumers through Innovation in Packaging and New Product Development. Parachute Achieved a volume growth of about 8% in volume over Q3 FY 09 in rigid packs. Parachutes share in the coconut oil category for the 12 months ended December 09 was 45.9%.

Awards Marico has also won various other Awards, such as the following: Marico won 4 Awards for excellence in Employer branding & Advertising to Talent at the Remmy Awards 2009. Marico was awarded the IMC Ramakrishna Bajaj National Quality Award in Manufacturing Category by the Indian Merchants' Chamber. Parachute won the Asia Star Award for the Parachute bottle warmer awarded by Asia packaging Federation. Parachute ranked 6th Most Trusted Brand in Bangladesh by The Bangladesh brand forum - an affiliate of the Global Brand Forum, Singapore in 2008. Parachute won the Outstanding Marketing Achievement Award Silver in 2008.

Contributors to parachutes success The Quality Of the product has contributed to its lasting success. The consistency, with which Parachute has delivered, ensures consumer loyalty and trust in the brand. Innovations in the bottle too, whether from the aspect of user friendliness or aesthetics have and continue to help Parachute grow. One of the first brands to utilize mass communication, Parachute used the caring platform with the mother daughter theme to underline the message that this was a brand handed down from and to generations. The new look and logo have helped attract the youngsters of today.

SUGGESTIONS

As many of the respondents are from the middle class, the company should try to cover all the people of this class. The company should also try to add many more varities to satisfy its existing customers and to attract new customers. The advertisements should be made more effective by creating a theme, touching all the consumers. As the major source of awareness is the advertisements, the company should try to make the advertisements more effective so as to reach all the consumers. As many of the consumers go for a purchase of once every month, the company can go for effective schemes and offers and can try to attract the consumers to go for more purchases. The company should try to enhance the quality under more by maintaining the same basis so as to maintain the customer and to attract many more consumers. The company should try and also enhance to attract many more new consumers. The company can go for other media like hoardings, posters, banners etc. The company should try to make all the consumers aware of all the varities of parachute coconut oils range to increase its sales. The packing can also be enhanced to attract many more new consumers.

CONCLUSION

Conclusion Company Marico has strong and long term association with the retailers in rural areas. Parachute is the most satisfied Brand/Product, followed by Saffola, Silk & Shine, Hair & Care and Sweekar Edible Oil & after Shower Gel.

Review Many users have shared their experience with Parachute Coconut Oil. Some say it as a Hair Treatment. Others feel, it has dramatically improved their dry hair. Users feel that not only their hair has grown faster or thicker than normal but also dont have frizzes anymore.. One of the used said, Thanks to coconut oil, my hair is on the mend. I can even see that the mid lengths are blacker and thicker than the ends. A year ago a hairdresser thought I had bleached it when in fact it was damaged from GHD use and swimming at the beach. Another user said, I now use it on dry hair after Ive washed it like a serum. This is a quicker method of conditioning and it weighs down the fly a ways. Works really well with my hair blow dried, Straight, or naturally dried curly. In fact, curls form well with the coconut oil because they are glossy and more defined. Rainy season is the worst season for the hair, the water is impure and dirty and thus results in plenty of hair fall. Not just fall of the hair but it becomes rough, dry and unmanageable so in such case giving proper nourishment to it is a must. I use Parachute Coconut hair oil for giving my hair that extra protein it requires so that a change in weather doesnt affect it adversely. Its not that Parachute Coconut hair oil stops hair fall completely or makes the hair silky smooth but it sure gives the root the protein it requires and strengthen it. Coconut hair oil is always said to be good for hair and Parachute Coconut hair oil is a trademark for some high quality hair oil. I have been using Parachute Coconut hair oil since a tender age and I love it really, it was a little problematic using it in winter as it was bottled in a narrow headed bottle but now it comes in a circular tube so solves all kind of problem. Parachute Coconut hair oil gives the hair extra care and a little mustard seed boiled in coconut oil can help prevent intensive hair fall. I have tried it and it worked for me but use pure coconut oil and I trust only Parachute Coconut hair oil in terms of quality and purity. One of the user suggested that, For long hair, use between half to a teaspoon of coconut oil. Spread it across your hands and around your fingers. Then evenly distribute it by smoothing it through your hair. Starting from the ends. It looks a bit oily at first but my hair DRINKS it up. Thats how dry it is. My hair gets softer and sleeker for days until I wash it again. It can also be used as body-lotion, hand treatment and cuticle oil. It moisturizes like nothing tried before and absorbs quickly. Users highly recommend Parachute Coconut Oil. Go try it, girls! Its cheap, smells yummy, has heaps of uses and its 100% natural.

Get softer, smoother hair with Parachute Advansed Hot Oil's Deep Conditioning .Parachute Advansed Ayurvedic Hot Oil is to give Hot Massage to your hair for extra care.The winters bring in lot of fun but it is very punishing for the hair. The extreme weather and lack of Moisture at this time of the year leaves your hair rough and dry, making it look dull and lifeless. This means that you need to give your Hair Extra care in winters. Parachute Advansed Ayurvedic Hot Oil only best way to do so is giving a Hot Champi!!

Parachute Advansed Ayurvedic hot oil is enriched with the Goodness of both Coconut & Ayurvedic ingredients like Thyme, Patchouli, and Rosemary, which gives your Hair extra nourishment. It has special warming oils which keeps it hot from within & hence able to penetrate deep in to scalp and nourishes your hair from within giving it a healthy glow even in the harshest of winters.Directions for use:Dry rough hair can be difficult to manage. New Parachute Advansed Hot Oil's Deep Conditioning gives deep conditioning treatment to make them 3X softer and smoother. It penetrates 3 layers deep in just 20 minutes. So apply Hot Oil just 20 mins before shampoo and win your hair overJust Take Parachute Advansed Ayurvedic Hot Oil onto your palm. Rub your palms together to feel the warmth come through. Gently massage the oil onto your hair and scalp. The warmth will open up the pores and the oil will soak in, providing deep nourishment.

Specially Beneficial for those who love trying new things with their hair like blow- drying, colouring and straightening etc. It actually damage the quality for hair. Parachute Advansed Ayurvedic Hot Oil restores it.My Experience I have just recently noticed that due to hot and humid weather, I am undergoing hair-fall issue. I was losing so much of my hair whenever I take a bath. It seems like I was losing about 50 strands with just 1 bath, and after I brush my wet hair about another 30 falls, I told this to my mother who calmly asked me to use Ok it doesnt look much in the bottle. The bottle looks cute in my opinion; the fragrance doesnt smell good, nothing really excites me to use it but still I had to test it out as I have to know if it was effective for my hair. For the first time, when I oiled my hair, more and more strands were falling off. I was getting second thoughts of using it. But thank GOD I used it because after using it for about 3 weeks, my not only stopped falling but became quite lustrous and shiny. The oil made me a real believer; I was a total skeptical at first. Im glad I didnt stop using it and I am very happy about the results. Honestly, I will continue using it. I would totally recommend this to anyone who has trouble with hair fall and would like to get some treatment. You will really see results in using this and I hope the hair problems of people will lessen as they try this product.

Color and smell- It is nude in color with orange tint and pleasant herbal scent.

Pros: Regular use has reduced my hair fall to an extent. It can be applied to the scalp without any hesitation and I did not find any irritation or allergy at scalp after using it. It contains pure herbals extracts with excellent therapeutic properties. Reasonably priced. Its non-sticky oil. No chip chip, no khit khit. Will be available in Big Bazaar, Pantaloons & Reliance Fresh.

Cons:I could not think of anything.RatingQuality- 5/5Price-5/5Packaging- 4/5Availability-4/5

BIBLIOGRAPHY

www.marketing91.com/swotparachute/strategicbrand.blogspot.com/2007/06/parachuteoil.htmlwww.marketing91.com/marketingmixparachute/www.slideshare.net/sk_prince/sales-promotion-parachuteoil5688049www.advertlog.com/marico-industries/print-outdooe/parachute-4851455

34 | PageAnna Leela College of Commerce and Economics