PARACHUTE

Marketing Project

COMPANY –MARICO • The company was founded in 1957 By Kanji Morarji and is

headquartered in Mumbai ,India.

• 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.

• Profile : Category - Consumer products

• Sector – FMCG

• Tagline – Be more Everyday

• USP – Huge Market ( 1 out of 3 Indians use a marico product)

• Marico’s Volume Market Share is approximately 57%.The market capitalization for Marico is 30000 crore.

PRODUCT-MIX

BRANDS TARGETED CUSTOMER'S

• PARACHUTE •Primary Target Women Of All Age's

• PARACHUTE

ADVANCED •Young Girls (College & School Going)

• HAIR & CARE •Appealing To Both Men & Women of All Age's •Primary User the Young Age Group

• SHANTI AMLA •Customer Looking for Value for Money (H.OIL+Badam)

• SILK & SHINE •Primary Target Female Of age 18 – 34

• AFTER SHOWER •Primary Target Young Males 18 – 34

• MEDIKER •Young Children Age Group 3-13 (Due to Lice Problem)

• SWEEKAR •Primary Target Housewives (Due to Economic+Healthy Life for Family)

• SAFFOLA •All Health Conscious Consumers (Specially for Heart

Patient's)

• REVIVE •Housewives of Urban Area (Higher & Middle Class).

Try to use words that will help direct the growth of your company, but be as concise as possible.

HAIR OIL INDUSTRY • Hair oil market size in India is pegged at around Rs 8,000 crore with coconut-

based oils accounting for 46 per cent

• Hair Oil Industry is having one of the Highest market penetration at

90%.There are four main categories of hair-oils in India:

Coconut oils: It has the highest market share among all other categories. It is

very popular in the south.

Amla hair oils: The heavy amla hair oil market is primarily an urban driven

market and tends to be geographically concentrated in the northern parts of the

country.

Light hair oils: it has experienced significant growth in recent years as

consumers opt for lighter, more modern hair oil products.

Cooling oils: It is meant for cooling the scalp during the harsh summer months.

The ingredients in the cooling oils cause immediate relief by cooling the scalp.

PARACHUTE HAIR OIL• Parachute is a brand name for a range of coconut-based hair

products manufactured by Marico.

• A market leader in its category and one of their oldest brands, Parachute coconut oil today stands for purity and quality.

• Parachute has been enjoying the market position since three decades

• Over the years, the brand has seen a lot of innovations in packaging, sizing and tamper-proofing.

• Parachute enjoys enormous loyalty in urban, semi-urban and rural sectors.

• USP is 100% pure coconut oil

Understanding the positioning of competitors

Dabur Vatika coconut Hair Oil

• Segment- Value added coconut hair oil.

• USP-Has henna, amla & lemon along with coconut oil.

• TG- women of all ages urban and rural who are appearance conscious and wants herbal components for a problem free hair.

• Brand positioning- was that of ‘A premium coconut hair oil with the extra nourishment of henna, amlaand lemon to provide problem-free hair’.

• Tagline- ‘proof hai,better hai’.

Himani Navratna Hair Oil

• Segment- Therapeutic Hair oil.

• USP- Has nine Ayurvedic herbs, provides stress relief.

• TG-Masses, especially young and middle aged people who suffer from a day to day stressful life.

• Positioning -is based on rejuvenation.

• Tagline -‘Sirdard, Tension, Anidra aur Thakan JaoBhool - Raho Thanda Thanda Cool Cool’.

How is Parachute Different?

Parachute coconut hair oil:

• Segment- Pure coconut oil.

• USP- 100% pure coconut oil (“weight-test” campaign was held proving that pure Coconut oil is heavier than impure oil)

• TG-Women of all ages in both urban and rural population of India

• Brand Positioning-Based on the platform of purity.

• In order to tap an increasing number of discerning customers, Marico has come up with value added hair oils.

• Parachute Advansed takes care of all the value- added coconut personal care products, especially hair oils.

SWOT ANALYSISSTRENGTHS

• Brand image.

• Distribution network.

• Products for every segment.

• Brand synonymous to Pure coconut oil.

WEAKNESS• Limited skin care products.

• Restricted to few countries like gulf, SAARC.

OPPURTUNITY• Tap provincial markets and expand entrance in

urban territories.

• Introduce more items under the skin care.

THREAT• Competition from unbranded and other regional

items.• Contender brands are imparting the benefits of

utilizing other oils.

Ansoff model

MARKET PENETRATION

• Promotion in rural or urban mass market .

PRODUCT DEVELOPMENT

• New product and variants to position as a complete hair care brand.

MARKET DEVELOPMENT

• Extend reach in south Asian countries.

• Position itself even in men’s hair care

segment.

DIVERSIFICATION STRATEGY

• diversify in premium services like health institutes.

• Tie up with established health institutes for better market reach.

NEW

MARKET

CURRENT

MARKET

CURRENT PRODUCT NEW PRODUCT

BCG MATRIX

BCG

STAR QUESTION MARK

CASH FLOW DOG

Parachute, Saffola, Revive ?

Zatak, Livon, Set Wet

Mediker, Manjal

STP’s

segmentation

Geographical SegmentationSince hair oil is an essential commodity, Parachute is present in every region, city, as well as rural and urban areas.It is available in the Gulf, Bangladesh, South-

East, Egypt, and UAE.

Demographic SegmentationAlthough it aims to target customers of any age group, its primary focus group are women of any age group.habitual buyer may buy Parachute

regardless of its price and what it has to offer.

Psychographic SegmentationLifestyle and personality can determine the kind of product that an individual chooses.Behavioural SegmentationOccasions: Users may apply hair oil daily, alternate days, twice a week, Once a week, once a fortnight, once a month or never.

Benefits: Benefits are good quality hair, easy-to-use bottles and wide availability.Benefits: Benefits are good quality hair, easy-to-use bottles and wide availability.Loyalty Status: Many are loyal to the product, some use a combination of different hair oils, some non-users use herbal hair oils, and some do not use hair oil at all, Readness stage, Attitude towards product.

• Positioning Strategy

• 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.

• Targeting Strategy:

• A Marico industry is one of the largest FMCG Company in India, offering customised brands, 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 to reach the target audience effectively. Marico is well known for its brand, Parachute coconut oil. Parachute is one among India's top 100 most trusted brands and is the worlds largest packaged Coconut Oil Brand.

Marketing Mix of Parachute

PRODUCT

• Parachute oil is premium high grade edible coconut oil, it is market leader.

• The innovation in packaging which made the product user friendly and it help the company grow very well.

PricePRODUCT PRICES

Parachute Coconut oil 500ml-140rs, 250ml-72rs

Parachute Advanced 175ml-80rs

Parachute after shower cream 50gm tube-40rs

Parachute oil ayurvedic 190ml-110.50rs

After shower cream –anti dandruff 50gm-44rs

Jasmin oil 90ml-39rs

Body lotion 100ml-90rs

Mini bottle shape small pack 1rs

Conti…

PLACE

• Parachute offers all over India both in urban and also country India. Parachute Hair Oil is sold through retailers like grocery stores, kiranas, baniyas, general stores and so on. It is additionally sold in Bangladesh and the Middle East

PROMOTION

• It publicizes throughTelevison,Print,Outdoor,Digital. The brand has been embraced by big names like Deepika Padukone, Diya Mirza, Yuvraj, Sreesanth. Promoting is overwhelming before Holi and amid winters

Conclusion

• The Company has a robust innovation pipeline with multiple prototypes planned for the next year.

• There has been no significant recovery on ground, the Company expects urban consumption to recover gradually.

• Operating margin is expected to be maintained in the band of 15-16%.

• The direct distribution initiative of Project ONE started by company i.e. which will help to increase growths in the Metro markets.

• The Company will continue to support various initiatives which are true to its Purpose of “Make a Difference”.

• Encourage diversity of ideas and people to promote Innovation

• Launched iLearn, a global technology enabled learning platform with anytime-anywhere access to members.

Recommendation

• The Company should aim at a volume growth of 8-10% and a top line growth of 15% in the medium term.

• The Company should focus on fewer but bigger innovations to create growth engines of the future.

• The Company should focus on building capabilities to set it up for growth in the long run.

• The Company should continue to invest in increasing its direct rural reach and Go-To-Market transformation initiatives including driving saliency through e-commerce,

• The Company should focus on deriving synergies i.e. talent mobility, supply chain synergies and process harmonisation leading to cost arbitrage.

• The Company should execute the revamped strategy and drive innovation in the Youth portfolio to enable growth at about 15% to 20%.