E-COMMERCE

PROJECT ASSIGNMENT

Submitted By: Abhijit Roy Chowdhury Roll: 50001

E-Commerce Project

Page 1

Executive Summary

In current scenario in a country like India where its consumer market is riding the crest of the countrys economic boom, Indias f a s t m o v i n g c o n s u m e r g o o d s ( F M C G ) s e c t o r i s t h e f o u r t h l a r g e s t s e c t o r i n t h e economy of India with a total market size in excess of US$ 13.1 billion. The growing consumerism in India shows the rapid increase in Indian consumer purchasing power, it shows strengths and opportunity that lies in rural Indian markets especially for FMCG products. To provide and serve market and the opportunities well, Ive chosen one of the well known brands in FMCG sector, Marico Co. having excellent distribution channel and deep rural reach in India. The markets are divided into two halves exclusive and opportunistic, as the market is yet to be taped one need to evolve a set of strategies and there by plans to tape the potential Indian consumer market. To capture such a great opportunity, only good product and brand awareness will not be sufficient but proper distribution channel must be there With the world moving towards globalization and the phenomena of LPG is touching each and every country and industry its effects are also there on Indian FMCG sector. This project is about covering digital marketing strategy and implementation for all the brands of the company. To recommend to the Sales & Marketing Head and the Board of the company a detailed digital marketing strategy and plan that will significantly help meet marketing objectives of the company and its brands.

E-Commerce Project

Page 2

Company Introduction:
The company was founded in 1857 By Kanji Morarji and is headquartered in Mumbai, India. Marico Limited, together with its various consumer goods and services in India, the Middle East, Asian countries, Egypt, and the United States. The company provides coconut oils, edible oils, hair oils and other hair care products, fabric care products, processed foods, soaps, and baby care products, as well as skin care and Ayurvedic products. Marico is one of India's leading Consumer Products & Services companies in the global beauty and wellness space. From its foundations, Marico has worked outside the box, to bring innovation to its customers through the careful creation of continuous and sustainable change. Today, 1 out of 3 Indians uses a Marico product. From cooking oil with 'LoSorb Technology', to rice that keeps you active, personalized skin script ion services and hair oil that comes with a battery-powered head massager, Marico believes that it pays to think differently. At our offices, everyone is a member, not an employee. We have a flat organizational structure, with just five levels between the Managing Director and the shop floor operator. We believe in transforming the lives of all stakeholders be it our suppliers, farmers, distributors or shareholders by helping them maximize their true potential and it truly articulates the true Mariconian spirit to be more. Marico is present in more than 25 countries across Asia and the African continent. The company recorded a turnover of Rs. 40.0 billion (~USD 729 Million) in 2011-12. Our vast portfolio of enduring brands such as Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive and Manjal are leading household names today. In addition, the company has recently acquired the erstwhile personal care business from Reckitt Benckiser. Marico now owns popular brands like Set Wet, Livon, Zatak, and other personal care brands thereby strengthening its portfolio for the youth and creating a significant presence in the male grooming and post hair wash segments. Marico's international portfolio includes brands like Fiance, Hair code, Camelia, Aromatic, Caivil, Hercules, BlackChic, Code 10 and Ingwe. We are also present in the Skin Care Solutions segment through Kaya Skin Clinics in India, Middle East and Bangladesh and Derma Rx in Singapore.

E-Commerce Project

Page 3

Vision/ Mission:
For the company, the Consumers are the reason for their existence. The Marico Innovation Foundations mission is to provide the nation with first: a belief that Innovation is possible and is the way to leapfrog India into the center stage of global business leadership, and second: a framework to leverage innovation for quantum growth.

Goals & Objectives:

To improve the quality of people's lives in several parts of the world, through branded beauty & company products and solutions theyll be offering. Company shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services. It aims to be a leader in each of its businesses 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.

Products under Marico Co. banner:

1. PARACHUTE ADVANCED 2. HAIR & CARE 3. SHANTI AMLA 4. SILK & SHINE 5. AFTER SHOWER 6. MEDIKER 7. SWEEKAR 8. SAFFOLA 9. REVIVE

E-Commerce Project

Page 4

SWOT Analysis of Marico Co. Strengths Weakness

Rural market reach Large distribution network Understanding of Indian consumer behavior

Low market share in specific categories. E.g: Shampoo Low exports level.

Opportunities

Threats

Untapped rural market Export Potential Rising per capital of Indian consumers

Untapped rural market Export Potential Rising per capital of Indian consumers

Porters Five Forces Model:

Barriers to entry: A high level of competition can be seen among international brands to enter the rural market. Low import duty has enabled many international brands to enter into the domestic market. Bargaining power of suppliers: Backward integration can be seen, which reduces the supplier's importance. Manufacturing is largely outsourced due to globalization, the skin care

E-Commerce Project

Page 5

product distributors in the developing countries are struggling to capture and retain their market share from the multinational companies. Bargaining power of buyers: Intense competition within the skin care companies results in value for deal.

Rivalry between existing firms: Competition is faced from both domestic, MNCs and
also from cheaper imports, which are increasingly visible in urban markets. Price wars are a common phenomenon.

Substitute Products: The best part in skincare sector is that the substitutes here are found
within the sector itself so if the customers change their consumption pattern then took the effect will be on the company but the whole sector remains unaffected

KAYA Skin Clinic

Kaya was launched, in year 2002, with the single-minded objective of delivering flawless skin, using the latest technology available around the world. Today, they continue to pioneer and pave the way as undisputed leaders in Indian skin care. They identified an untapped opportunity for customized skin services and have since become an industry leader in quality care, specifically targeting Indian skin.

Beyond addressing the need for expansion, Kaya also continues to keep its finger on the pulse of its clientele, providing products and services as the market need arises. In line with this: Kaya has launched a range of treatments and products, over time, specifically targeting summer skin ailments and skin maintenance Differentiating itself again, Kaya has chosen a non-Bollywood route. In line with the fact that 30% of Kayas clientele is male, they recently introduced a product range exclusively for men

E-Commerce Project

Page 6

SWOT Analysis of Kaya Skin Care Clinic

Strengths

Weakness

Large number of services and solutions for skin beauty, skin concerns, laser hair reduction and anti-aging Elegant and tranquil ambience of clinics High quality and affordable services Extensive reach over 80 clinics in India and 20 abroad Large number of products for hair care, skincare, fairness etc for both men and women

Very high priced for middle class potential

consumers

Premium

services limited to urban areas where they have strong competition from spas and other local skin care centers

Opportunities

Threats

Expansion in south eastern countries with similar climate conditions Expand services to include spa

Low priced services by local doctors Off the shelf readymade solutions by competitors

E-Commerce Project

Page 7

Competitors of Kaya:
1. Lakme: Lakm is an Indian brand of cosmetics, owned by Unilever and run by CEO Anil Chopra. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was named after the French opera Lakm, which itself is the French form of Lakshmi, the goddess of wealth, also renowned for her beauty. Indian cosmetic Lakme was started in 1952, famously because the then Prime Minister, Jawaharlal Nehru, was concerned that Indian women were spending precious foreign exchange on beauty products, and personally requested JRD Tata to manufacture them in India. Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India providing beauty services. Lakme has been using mobile messaging and online networking to attract females of age 18 and above for their business. Online networking is updated and active on Facebook, Twitter and other social sites. 2. Loreal: The L'oral Group is the world's largest cosmetics and Beauty Company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological, tissue engineering and pharmaceutical fields and is the top nanotechnology patent-holder in the United States. Its niche marketing strategy has attracted such consumers who have no issues in spending on their beauty and looks. Its salons are one of a kind and so is the digital marketing.

E-Commerce Project

Page 8

Future Assumptions
In a country like India, which is flooded by youngsters and new generation, a very common trend of response can be observed. In the age group between 18-25 people react very positively towards the ad they come through mobile sms, ads ,facebook or on twitter and on other internet sites. As they see the product details in seconds so they decide that time only whether to purchase or not. They are prone to offers and discounts which they can easily know through these internet sites and mobile messages. On the other half, there is another age group which falls between 26-40, in which people are more cost conscious and also at the same time beauty conscious too. They try to maintain their looks by spending good amount. They also go for the ads which are given through mobile messages and also believe on what other people say and recommend. They trust on the other users which they say. In the age group of 40 and above people are very eager to regain their beauty which they had earlier. So they try to use the best product. They come to know through digital media when there relatives or their acquaintances tell them about the different and the best products available in the market.

Digital/Internet Marketing Plan

In lieu of growing digitization and interest in online marketing, it will be beneficial to develop a virtual world where consumers can live an alternative life of themselves portraying what actually they are in a reality; its more alike reality check. Linking it to social marketing pages and mail will ensure continuous presence in the database. It will be easier to track and follow any members who are interested in the upcoming services of Kaya. The website shall be attractive with data and presentation of such high quality that females shall be bound to use. This will be achieved by segmenting the population on age and internet usage rates.

E-Commerce Project

Page 9

Targeting the young generation and the middle age ones will be a must but it will also include people of more age. It will differentiate itself from the ongoing digital marketing of Kayas competitors. Positioning will be that it will be linked to its social networking page and mailers list. This will ensure that the consumers can access the website at ease. As for communicating the website is considered, mobile apps will be developed and links will be floated through SMSs and mails. It will make the company look like a modern one with modern approaches towards looking beautiful.

Suite of Activities
Marico Ltd. is a well known brand, and it has got a large customer base. But to maintain and gain a sustainable competitive advantage, the company needs to come up with some activities which can take them to next level of its. Mobile Marketing can be done through: 1. Developing a Flash Game which will also have a JAVA version for mobiles. 2. Sending text messages to mobile users 3. Sending videos or sound messages on mobile The step is such taken for the company to get into the market more deeply. These will open doors to new markets and give windows to consumers who like using such apps and live such lives who are quite busy in their real life. The game will inform them about the product and services of the company. Everyone wants to look beautiful and presentable every time. This will give them a chance to interact with their friends in a constant state of beauty. In this way the products and services will be popularized and educate the consumers to use them in real life. It is more affective as this gives them a window to meet and contact people and continuous stay with the company.

E-Commerce Project

Page 10

Company Website: Though the companys current website is on the line of interactive and very much ease to book an appointment as you can see in the snapshot given below.

But there is a need to convince the customers first so that they come to the next level and book the appointments. The website should be equipped more with the following characteristic which will be done in the proposed marketing plan. Product range the companys offering Services Blogs and Customers feedback zones Chat with an expert zone Videos Gallery displaying the testimonials from satisfied customers, in video, audio, text and picture form. Latest updates and performance of the company

E-Commerce Project

Page 11

The color, graphics will be done in the line of given examples below:

E-Commerce Project

Page 12

Prioritization
Linking to social networking site through databases available with the company. Then the mailing link will be used and also messages. After that the fan followers target will be prioritized. Then the links will be put on the popular sites. There will be gift items on the referral basis as who brings the most customers for the company. Then the coupons and discounts will be prioritized which will attract more customers and will increase the frequency of use. As we see that some sites people use very much and the links put on that sites are used very often.

Execution plans details

The frequency of mailing the links will be weekly and updating can be done fortnightly. People will be informed and well aware of the present scene of the company. The contents will be updated with much ease if such steps are taken. Designing will be through top creative minds which will ensure that the presentation of the website is sufficient enough to create a strong recalled.

SAFFOLA
Saffola is a heart care brand in the foods category in India. It has several products in its portfolio which include edible oils, functional foods, rice and salt. Saffola is known to be a brand which is good for heart and recommended by doctors. For the last 10 years, Saffolalife has been educating Indians on preventive heart care through the year. One of Maricos flagship brands, Saffola was launched around 1965 on the platform of heart health, a concept which was extremely niche 45 years back. But over the last 45 years it has been Saffolas mission to take care Indias heart, we are committed to introduce products & initiatives which will help reduce the risk of heart & other lifestyle related risks in our country.

E-Commerce Project

Page 13

SWOT Analysis of SAFFOLA

Strengths

Weakness

Healthy heart Rate of increasing trends Reduces Cholesterol Prevents cancer

Difficulty in creation of supply chain Large Investment Availability Prevents cancer

Opportunities

Threats

Economic Revenue Increasing heart concern among people Chance to become best practice Prevents cancer

High price Competitors Lack of Govt. support

E-Commerce Project

Page 14

Competitors:

E-Commerce Project

Page 15

References:

http://www.marico.com/html/index.html http://www.kayaclinic.com/wall-of-beauty http://www.kayaclinic.com/media-room/articles/2012 http://www.downtoearth.org.in/content/complan-saffola-and-kellogg-s-under-scannermisleading-public

http://www.saffolalife.com/search/?q=health+articles

E-Commerce Project

Page 16