Business mission and objectives MARICO

MARICO
Vision and Mission: -

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

Consumers:
The primary focus of their efforts is not only understand what adds greatest value to the consumer but
also change and reinvent themselves if need be. Also translating the consumer's needs and desires into
marketable products and an ever-expanding base of loyal consumers, with speed and a quality of response
that surpasses the competition.

Membership:
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:
Focus on policies and practices where people produce consistently superior performances and where
people are encouraged to discover their untapped potential.

Wealth:
Efforts must culminate in the creation of wealth. This can be done by continuously adding value in
everything the company does through a variety of methods. Using sources productively, eliminating
waste, reducing cycle times and costs and enhancing the consumer base.

Innovation:
The future of the organization rests on their 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. Acknowledging that failure is inherent in any new initiative. Company will commit
resources for experimentation and invest in processes for reviewing and sharing of learning.
The company’s mission is to encourage Innovation in India, by providing the nation with a belief that
Innovation is indispensable and is the way to leapfrog India into the center stage of global business
leadership. Through these awards we want to commemorate projects and businesses that make a real
difference to the country and community at large.”

Business Model and Organization

Marico’s business model is based on focused growth across all its brands and territories driven by
continuously

Improving value propositions to consumers, market expansion and widening of retail reach. Marico aims
to be the leader in each of the businesses; by heightened sensitivity to consumer needs, setting new
standards in the delivery and quality of products and services through processes of continuous learning
and improvement. The model ensures that

Marico is present in unique / ethnic Indian Product or Services categories where typical MNCs would not
be strong.

Therefore, Marico does not, unlike many other Indian FMCG Companies, get caught in MNC cross fires.
Segmentation, targeting and positioning:

Marico Industries, a well-known Indian fast moving consumer goods (FMCG) company, offers unique
and ethnic Indian products. The company has a significant presence in the edible oil market .

In order to make business profitable the company has segmented and targeted the market
accordingly….

Company has segmented and targeted its market based on few criteria like generation, age, gender,
income group’s lifestyle etc.

1. Generation and age

One of the earliest TVCs in 1992 (by Marico’s erstwhile agency Ambience) played up the fear element
and established the “heart specialist” image. But although Saffola intended to target non-sufferers, the
tone of the communication appeared to focus on high-risk sufferers (people over 40, who in the 1990s
were believed to be more prone to heart disease). The saffola variants targets new consumers.

Saffola Gold address a growing category of younger potential sufferers (below 40 years)

2. Gender

The theme for the new, Saffola Gold ad was equally carefully chosen. The alternative campaign
designed by McCann showed a man making lame excuses for skipping exercise.

Thus talking directly to men, without addressing women. But communicating with women is
crucial since this is a category where women make the purchase decisions.

So, the new campaign targets housewives and the underlying concerns of a housewife, with a light-
hearted dig at lazy men. Thus portraying Saffola as an empowering choice for women concerned
for their husband’s health.

3. Lifestyle

Significantly, the campaign for Saffola Gold also throws light on a sharper brand strategy. The
parent brand Saffola will continue to address high-risk (heart disease) sufferers.

Moreover Saffola Tasty Blend’s advertising, targeted homemakers who wanted both nutrition and
taste in cooking oil.

Come to think of it from a working woman's (or housewife's) aspect. She (maybe) is too busy to
take care of her family the way her mother did! So when she knows about the 'health' factor
associated with the products, she feels that "YES, it makes me a better homemaker" if I buy THIS
for my family.

4. Income groups

Rising disposable income levels, increasing literacy and rapid urbanization are laying have led to a
transformation in consumer lifestyles resulting in a changed spending pattern.

Currently, an average Indian spends only 8% of his income on personal care products. However, this
figure ought to receive a considerable boost as a consequence of changing trends of consumer behavior

Saffola’s first variant Tasty Blend was aimed at taste- and price-conscious consumers. And since potential
sufferers may not be happy shelling out a premium unlike high-risk consumers, Marico has even priced
Gold at Rs 89 per litre — roughly Rs 15 more than mid-priced brands and Rs 10 lower than Saffola.

Thus in any case targeting only upper middle and high income group people only.
 Positioning of the product

It discusses about MARICO’S brand building efforts for Saffola, the positioning adopted to
target health conscious consumers and the company's continuous efforts in maintaining the
association between Saffola and heart care. It also deals with Marico's innovations in product
formulation (like the launch of blended edible oils), product delivery and pricing strategy.

Marico’s approach has changed towards advertising but its still using its successful healthy heart
theme which has placed itself in the minds and hearts of the consumers.

 The initial advertising that is at around 1992 did position Saffola on the
specialist platform, but as a therapeutic product to be used only if
you suffered from heart disease.

But the heart health positioning was dropped when Marico extended into blended
oils in 1998 with the launch of Tasty Blend, following a safflower crop shortage the
previous year.

 In order to appeal to other consumers in other segments also in 2000,

Marico unveiled a snazzy 40-second TVC for Saffola, devoid of heart
attacks and anxious housewives. It just showed snippets of healthy and fit
people with the jingle: “I want to live healthy”.

The wider positioning increased competition for Saffola from brands like Sundrop
and Goldwinner, which also claimed health benefits but were cheaper by Rs 20 to Rs
40. From a market share of roughly 9 per cent in the mid-1990s, Saffola slid to 6 to 7
per cent in 2000. At present, Saffola accounts for 5.5 per cent of the branded oils
market.

 Soon enough, Saffola went back to the heart care platform. In January
2004, a new campaign was launched, positioning Saffola as a
 supplementary measure against heart disease, along with exercise, diet
and stress control — avoiding the “grave consequences” tenor.

Thus putting Saffola in a different league as compared to the other oils, making it the
most health conscious brand in the market. In fact, Saffola stands out in a category
cluttered with me-too brands.

Saffola has very strong healthy heart equity, and is a trusted brand that has gone from strength
to strength over the years. It thus provides with an ideal platform to capitalize on this trend of
increasing health consciousness by offering a number of new food products that are able to
cater to the need area. And of course, the food products have to be in sync with the Saffola
imagery and values.