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Rashika Panchal-Marico Word
Rashika Panchal-Marico Word
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Contents
A) Sector Information................................................................................................................................3
1. Introduction.......................................................................................................................................3
2. Industry Size / Contribute to GDP....................................................................................................4
3.Growth Pattern.....................................................................................................................................5
4.Reasons for the Growth......................................................................................................................5
5.Porter’s five force Model......................................................................................................................6
6.Porter’s Five force Model of hair oil industry...................................................................................7
B)Company Information..............................................................................................................................9
1. Company Snapshot and Promoters..................................................................................................9
Promoters and Promoter groups of the companies:..........................................................................12
2. Market Share.....................................................................................................................................12
3. Product Portfolio...............................................................................................................................13
4). Target Market...................................................................................................................................14
5). Competitor Analysis.........................................................................................................................14
6. News (Last 6 Months ).......................................................................................................................15
C) Marketing Strategy................................................................................................................................16
Segmentation........................................................................................................................................16
Positioning.............................................................................................................................................16
2. SWOT Analysis of the company.........................................................................................................17
3.Comparison of sales of past 3 years...................................................................................................19
BCG Matrix............................................................................................................................................20
Life Cycle of the Product........................................................................................................................21
4.Marketing Mix....................................................................................................................................22
D.Business Finance....................................................................................................................................23
D. Organization Structure..........................................................................................................................28
1.JD and JS of the company...................................................................................................................29
2.Training Needs of the company..........................................................................................................33
3.Organisation Culture as per the employees review............................................................................33
E) Conclusion.............................................................................................................................................34
F) BIBLOGRAPHY........................................................................................................................................34
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A) Sector Information
1. Introduction
Fast-moving consumer goods (FMCG) sector is the 4 th leading sector in the Indian economy
with Household and Personal Care accounting for 50 percent of FMCG sales in India. Growing
awareness, easier access and changing lifestyles have been the key growth drivers for the sector.
The urban segment (accounts for a revenue share of around 55 per cent) is the principal
contributor to the overall revenue produced by the FMCG sector in India However, in the last
few years, the FMCG market has grown at a faster pace in rural India related with urban India.
Semi-urban and rural segments are growing at a speedy pace and FMCG products account for 50
per cent of total rural spending.
FMCG Sector
Food and Beverages covers 19% of the sector where as Healthcare covers 31%. Health and
Persona Care covers maximum as compared to other two sector i.e. 50%.
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2. Industry Size / Contribute to GDP
FMCG sector adds around 24.3% to the country’s GDP. In India FMCG sector is the 4 th largest
in terms of economy and it pay about 4 million employment opportunities. The FMCG sector has
grown from Rs 2,20,852.4 crore (US$ 31.6 billion) in 2011 to Rs 3,68,669.75 crore (US$ 52.75
billion) in 2017-18.
Sales
23%
27%
3%
4%
4% 9%
5%
5% 8%
6% 7%
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3.Growth Pattern
68.4
52.8
49
43.1
38.8
35.7
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5.Porter’s five force Model
To determine industry appeal and long-run industry profitability of the Indian FMCG Industry,
we chose to apply the Porter’s five forces in our analysis. Porter’s five forces are:
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Barriers to Entry and exit:
The Indian FMCG Industry is considered with modest entry and exit barriers. Integrated business
model and increasing capital requirement in the industry confine new entrants. Huge investments
in setting up distribution networks and promoting brands and competition from established
companies.
Threat of substitutes:
Being an essential commodity the demand for consumer products is elastic. Multiple brands
positioned with thin product differentiation. Companies entering a category /trying to gain
market share participate on pricing which increases products substitution. Hence, threat of
substitute is high in the industry.
Buyer bargaining power:
High brand loyalty for some products, thereby gloomy customers’ product shift. But low
switching cost and aggressive marketing strategies under powerful competition within the
FMCG companies, induce Customers to switch between products, thereby driving value for
money deals for consumers.
Supplier bargaining power:
Prices are generally governed by international product markets, making most FMCG companies
price takers. Due to the long term relationships with suppliers etc., FMCG companies negotiate
better rates during times of high input cost inflation.
Industry Competition:
Competitiveness among the Indian FMCG players is high. With more MNCs entering the
country, the industry is highly fragmented. Advertising spends continue to grow and marketing
budgets as well as strategies are becoming more aggressive. Private labels offered by retailers at
a discount to mainframe brands act as competition to undifferentiated and weak brands.
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6.Porter’s Five force Model of hair oil industry
The threats of substitutes
The existence of close substitute product or company increases the propensity of the customer to
switch to alternatives in response to price increases.
Profitable markets that produce high returns will draw firms. This results in many new entrants,
which will effectively decrease profitability. Unless executives block the entry of new firm scan,
the profit rate will fall towards a competitive level.
For most industries, this is the major factor of the competitiveness of the industry. Sometimes
rivals compete aggressively and sometimes competitors compete in non- price dimensions such
as innovation, marketing, etc.
The ability of customers to put the firm under pressure and it also affects the customer's
sensitivity to price changes. Even if there is a competition from other companies and the
disorganized sector, the quality standards kept by the company enable to enjoy adequate
customers according to the capacity of the company. Therefore, the company can accomplish the
bargaining power of its customers. In the oil industry, the bargaining power of customers is high,
because the product in different prices and quality is available in the market.
Suppliers of raw materials, components, labor and services to the firm can be a source of power
over the firm. The suppliers for inputs are selected by rating the ability to deliver the material as
per delivery schedule, quality of the materials, response time etc. Cost of inputs are also a factor
in selecting the supplier. The company maintains good supplier relationship by providing a sense
of commitment to the supplier.
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B)Company Information
1. Company Snapshot and Promoters
MARICO- “MAKE A DIFFERENCE”
Marico Limited is one of the largest FMCG company providing services and products in many
sectors like health, beauty and wellness. Not only in Asia but Marico is present in over 25
countries. It is established 29 years ago i.e. on 2 April 1990 in Mumbai, Maharashtra by Harsh
Marivala (CEO). Currently Saugata Gupta as the Managing Director and CEO of the company. It
has multiple brands that excel in categories of hair care, skin care, health foods, male grooming,
and fabric care, etc. Company’s turnover is approximately Rs. 7334 Core in year 2018-19.
Marico has 8 factories in India located at various locations. The organization holds a various
popular brands such as Parachute, Saffola, Hair & Care, Parachute Advanced, Nihar, Nihar
Naturals, Livon, Set Wet, Mediker and Revive.
FOUNDER
In 1862, Vallabhdas Vasanji (Harsh’s Grandfather) migrated to Mumbai from Kutch. There he
started the business of pepper, from there he become known as ‘Mariwala’ as ‘MARI’ is
pepper’s Gujrati word. His father Charandas founded Bobbay oil Industries Limited along with 3
brothers which trade in oils, chemicals and spices.
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Harsh Marivala studied in Sydenham College in Mumbai and later on started his career in 1971
in Bombay Oil Industry owned by his family. In 1990 he founded Marico, a FMCG
manufacturer and distributer. He also founded Kaya Limited which is related to skin care and
well established in Middle Eastern Countries.
In 2017 he has been ranked as 33rd wealthiest Indian by Forbes, with net worth of $4.2 Billion.
What Marico is
Basically Marico is one of the chief Fast Moving Consumer Goods company (FMCG) whose
headquarter is in Mumbai. It is present in over 25 countries across the globe. Revenue generated
by Marico is around $1.1billion i.e. Rs.7334 Crore in year 2018-19. Marico gives employment to
more than 1500 people.
1991 – Marico launches Hair & Care, a non-sticky hair oil relocation the market leader
through contemporary packaging. Sweekar sunflower oil goes national.
1992 – 94 - Marico goes from being an exporter to international marketer – sets up its first
overseas office in Dubai.
1994 – The year marks another innovation, Revive cold water starch makes starching
cottons more convenient for the consumer.
1999 – The company expands with its first overseas manufacturing facility in Bangladesh.
Marico acquires Mediker in the same year
2003 – Marico Innovation Foundation, responsible for executing the Corporate Social
Responsibility of Marico, was formed. In the same year Marico sets up copra collection
centres to procure directly from farmers increasing their margins, thereby improving their
lives and making a difference.
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2006-7 - Marico casts footprint in Africa, acquires Fiancée and Hair Code in Egypt and
Caivil, Black Chic and Hercules in South Africa.
2009 – Marico makes a public offering of equity in Bangladesh a first for one of its overseas
subsidiaries.
2011 - Parachute Advanced entered the skin-care category with the launch of Parachute
Advanced Body Lotion (PABL), another innovation by Marico. The year also marks the
launch of Parachute Gold hair cream in the Middle East market targeted to women which
today has great equity amongst the consumer. Marico strengthens its presence S.E.
Asia through a male grooming, skin care and food portfolio acquired in Vietnam in the same
year.
2012 – India's Gen Next gets styled by Marico as it launches its male grooming brand,
SetWet
2017- Marico acquires South Africa's leading hair styling business – Isoplus, launches
Saffola Active Slimming Nutri-shake (marking entry into nutraceuticals category) and
makes a strategic investment in Zed Lifestyle (Beardo)
2019 – Marico announces association with Kaya, to create a skincare sub-brand, Kaya
Youth.
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www.marico.com
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Promoters and Promoter groups of the companies:
2. Market Share
Sales
7% 5% 23%
6%
9%
15% 19%
16%
different
segment of the FMCG sector Hair and Care 23%,itc and ethical is 9%,Digestives is 7%,home
care is 6%,food is 19%,health supplements is 16%,oral care having 15% and skin care is 5%.
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Parachute
Hair care
Hair care OilParachute
of Malabar
Oil of Malabar
Silk-N shine
Hair Care conditioner,Parachute after
Hair Care shower hair cream .
Anti-lice
Medikar
Anti-lice
Treatment
Treatment
3. Product Portfolio
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4). Target Market
Marico targets the hair oil, haircare, healthcare refined and edible oils, skincare, male
grooming and styling.
Marico $1.9 B
Dabur $1.2 B
Emami Ltd $317.8 M
HUL $5.6 B
ITC $1.2 B
P&G $68.8 B
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Market Share
Marico
Britannia
Dabur 7% 1%
5%
Nestle
10% HUL
41%
ITC
35%
MAY-
6th May 2019, 4:05 pm
Marico Q4 net profit jumps 18% to 271 cr.
6th May 2019, 4:20 pm
Marico separate March 2019 Net sales at Rs 1290.00 cr, Up 6.28% Y-O-Y.
6th May 2019, 4:20 pm
Marico consolidated March 2019 Net sales at Rs 1609.00 cr, Up 8.71% Y-
O-Y.
July-
10th July 2019,2:10 pm
Marico Q1 PAT seen up 13.2% Y-O-Y to Rs. 294.5 cr.
August-
1st August 2019, 6:16 pm
Marico standalone August 2019 Net sales at Rs 1770.00 cr, Up 5.58% Y-O-
Y.
1st August 2109, 6:17 pm
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Marico consolidated March 210 Net sales at Rs 2166.00 cr, Up 6.87% Y-O-
Y.
October-
10th October 2019,4:00pm
Marico Q1 PAT seen up 15.8% Y-O-Y to Rs. 252.7 cr.
25th October 2019, 3:54 Pm
ICICI Direct recommended Hold rating on Marico with a target price of Rs
410 in its research report dated October 29, 2019
Marico plunges 7% after Q2 results; CLSA downgrades stock, cut target
C) Marketing Strategy
Segmentation
NIHAR HAIR OIL
pshychographic Behavioral
Geographic Demographic
Target
ing
Females of all age group.
Positioning
Provides smooth and long Hair and prevents Hairfall.
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2. SWOT Analysis of the company
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manufacturer.
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Swot analysis of the product-NIHAR NATURAl
Strength weakness
opportunities threats
launching of shampoo and conditioner
of same brand. Plenty of competitors.
growth of industry. Almost no differentiation.
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3.Comparison of sales of past 3 years
Chart Title
7000
5970
6000
5170
5000 4850.75
4000
SALES
3000
2000
1000
0
2017 2018 2019
YEAR
Column2
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BCG Matrix
HIGH
Parachute
Saffola
Kaya skin care
LOW
Set Wet
Zotak Mediker
Livon
HIGH LOW
“BOSTON CONSULTING GROUP” the BCG matrix – also known as the Boston or growth
share matrix – provides a framework for analyzing products according to growth and market
share. The matrix has been used since 1968 to help companies gain insights on what products
STAR
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It represents the product having high relative market share and high market growth rate.It
need capital over and above it’s cash flow to maintain its market share.it provide cash for
growing stars.
QUESTION MARK
It is represented by the product having low relative market share and high market growth
rate, i.e. Low market share in the growing market, it requires large cash due to market growth,
but less cash due to less market share.it requires additional investment to increase its competitive
advantage.
CASH COW
It is represented by the product having high relative market share and low market growth
rate.it is not attractive in long run due to less market growth rate.
DOG
It represents the 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, the preferred strategy is retrenchment.
E.g- MEDIKAR
Life Cycle of the Product
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Nihar
Nihar is the market leader in the east india. Its hair oil ranges offers quality solutions for different
hair care needs of the women of today. the current portfolio includes: nihar naturals perfumed
coconut hair oil,a unique combination of coconut oil or methi extracts, available in two
fragnances - Rose and Jasmine.
Nihar shanti amla hair oil, one of the fastest growing hair oils in india.
4.Marketing Mix
Product
Flip top tin, available in 200 ml and 500 ml
Wide mouth jar available in 200 ml and 500 ml
Pouches available in 50 ml, 100ml and 200 ml
The logo lettering is now in a fresh green colour and sports a leaf over the brand name
Price
Nihar is available in various price Rs.5.50 for 50 ml, Rs.10 for 100 ml,Rs. 20 for 200 ml.
Place
All mom and pop shops in rural and urban areas.
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General stores, Retail shops.
Promotion
Nihar attracts a large consumer preference in Bihar, Uttar Pradesh, Madhya Pradesh,
Rajasthan, Andhra Pradesh and Bengal.
The customers in the rural area are very price sensitive.
Great emphasis is laid on the price factor and so they advertise keeping in mind the price.
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D.Business Finance
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Change in comparison to previous years = (1669.00 -1698.59) 100
1698.59
= 1.74%
= 37.65
LIQUIDITY RATIO
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= 1.116
SOLVENCY RATIO
TURNOVER RATIO
PROFITABILITY RATIOS
= 16.39%
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SALES
= 6272 100
5971
= 105.04
= 6272 100
4641
= 135.14
= 1221 100
2487
= 49.095%
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TABLE 1
ROCE 49.095%
ROIC 13.79%
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E. Organization Structure
Unlike other companies in Marico there is a Flat Organizational Structure with just 5 levels
between the Managing Director and the shop floor operator. In Marico each employee is
consider as a member of the company.
Project Manager
Line Authority
Staff Authority
Functional Authority
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1.JD and JS of the company
1. Business Unit: FMCG Sector
2. Job Profie: Marketing Manager
3. Job Description:
Develop strategies and policies to get the word out about our company and drive
qualified traffic to our front door
Deploy successful marketing campaigns and own their implementation from ideation to
execution
Produce valuable and engaging content for our website and blog that appeals and
converts our target groups
Build tactical relationships and partner with key industry players, agencies and vendors
Prepare and monitor the marketing budget on a quarterly and annual basis and assign
funds wisely
Oversee and support marketing material, from website banners to hard copy brochures
and case studies
Measure and report on the performance of marketing campaigns, gain vision and assess
against goals
Analyze consumer behavior and adjust email and advertising campaigns accordingly
4. Job specification:
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5. Education/Qualification
MBA/PGDM in marketing.
10th, 12th and graduation with 60%.
6. Experience
Experience in developing new Promotional campaign by building products.
Recruiting, hiring and training over 30 marketing and sales specialist
Managing all corporate marketing function
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Carrying out necessary administrative duties.
4. Job specification:
Experience as manager or other HR executive.
People oriented and result driven.
Knowledge of HR systems and domain.
Leadership skills.
5. Education/Qualification
Bachelor of Business Administration (BBA) with a concentration in one of the following:
o Human resources
o Organizational behavior
o Industrial relations
o Leadership Development
o Organizational Behavior
o Industrial Relations
6. Experience
Up to 5 years of work experience as an HR generalist or assistant is necessary.
Management positions typically require an understanding of human resources programs,
such as compensation and benefits plans; human resources software; and federal, state,
and local employment laws.
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1. Business Unit: FMCG Sector
2. Job Profile: Finance Manager
3. Job Description:
Providing financial reports and interpreting financial information to managerial staff
while recommending further courses of action.
Advising on investment activities and provide strategies that the company should take
Maintaining the financial health of the organization.
4. Job specification:
Prepare financial statements, business activity reports, and forecasts
5. Education/Qualification
Master's degree, preferably in business administration, finance, accounting, or economics
Bachelor's degree in finance, accounting, economics, or business administration
10th, 12th and graduation with 60%.
6. Experience
Financial managers have experience in another business or financial occupation, such as
loan officer, accountant or auditor, securities sales agent, or financial analyst.
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2.Training Needs of the company
skills and
education
Attitudinal
and Developm
behavioral ent
changes
Training
Needs
Decision
Ethics
making
Problem
solving
skills
Productive Timing
Getting perks is the most enjoyable part. That includes Cash Rewards, Trip overseas.
Seniors give motivational speech.
Systematic Company also giving opportunities for Learning
The company has good work culture and Management. It gives a lot of opportunities to
learn about new things and employees’ entrepreneurial skills also.
Good Workplace
Tremendous working culture. Everyone calling them name and don’t using sir etc.
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E) Conclusion
This project helps me in learning lot of aspects like sectorial, about the company, marketing,
finance and human resource. Through this project I became able to relate the classroom concept
and understood them properly. According to me Marico should first progress its supply chain so
that the consumers get a product at a cheaper price which will further increase the value of
Marico in the eyes of the consumers, before reaching to the consumers the products are passed
through 6 levels so if it can be decreased to 4-3 levels then the cost of the products can be
condensed. Marico should also watch for its strengths and should keep them for further growth
like excellent distribution network and product availability, the product portfolio of Marico has
brands covering Edible Oil, Hair Oils, Skin Care, Fabric Care etc…popular brands, good brands,
good brand visibility and excellent advertising of products has led to strong brand loyalty,
experience management and good R&D, Marico is present in more than 25 countries across Asia
and African continent, Marico reaches over 2.5 million outlets and around 130 million
customers. It should overcome its weakness like limited market share due to strong FMCG
brands. It should also look for opportunities these days there is an increase in the income of the
consumers, it should tap rural markets and penetrate in them and it should also be looked upon
and Marico should start making strategies to overcome them from now onwards like intense and
increasing competition amongst other FMCG companies, FDI in retail thereby allowing
international brands and competition from unbranded and local products.
Bilblography
www.marico.com
www.moneycontrol.com
www.aceanalyzer.com
www.forbes.com
www.ibef.org/
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