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Marico Limited 4dec

Marico Limited is an Indian consumer goods company headquartered in Mumbai that manufactures hair care, skin care, and food products. It has seen revenues and profits grow at a compound annual rate of 13% and 15% respectively over the last five years. In the Arab market, Marico has found success by targeting women with its Parachute hair cream brand through a celebrity endorsement campaign. It has captured over 22% market share in the UAE and has expanded across other Arab countries through new product launches, acquisitions, and aggressive marketing strategies. Marico aims to continue growing by introducing additional products and expanding its business.

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Aarti Soun
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231 views3 pages

Marico Limited 4dec

Marico Limited is an Indian consumer goods company headquartered in Mumbai that manufactures hair care, skin care, and food products. It has seen revenues and profits grow at a compound annual rate of 13% and 15% respectively over the last five years. In the Arab market, Marico has found success by targeting women with its Parachute hair cream brand through a celebrity endorsement campaign. It has captured over 22% market share in the UAE and has expanded across other Arab countries through new product launches, acquisitions, and aggressive marketing strategies. Marico aims to continue growing by introducing additional products and expanding its business.

Uploaded by

Aarti Soun
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MARICO LIMITED

Company Background
Marico Limited, a public company headquartered in Mumbai, India, was incorporated in 1988. It manufactures and sells consumer products such as hair care products, skin care products, food products, etc., in both domestic and international markets. It operates under three business lines Consumer Products, Aesthetics Services and Global Ayurvedics.The company manufactures consumer products under brands such as Parachute, Sweekar, Saffola, Revive, Sil Jam, Mealmaker, Silknshine, Shanti and Mediker. Marico's subsidiary, Kaya Skin Care Limited, offers aesthetics services and products such as enhancement services, problem solution services, anti-aging services, skin lightening products, soothing gels, revitalising tonics, skin repair complexes, etc.The company's joint venture with Sundari specialises in Ayurvedic skin care products. Marico has seven production units in India, one each in Goa, Kanjikode, Pondicherry, Daman, Jalgaon, Saswad and Dehradun. It also has one consumer products manufacturing unit in Mouchak, Bangladesh.The company's international offices are situated in Dubai (U.A.E.), Kathmandu (Nepal), Dhaka (Bangladesh) and Los Angeles (US). Kaya Skin Care Limited has 42 clinics across 14 cities in India and 3 clinics in the UAE. For the financial year ending 31 March 2006 (FY06), Marico Limited reported consolidated revenues of US$ 250 million. Over the last five years, the company's revenues and profits have grown at a CAGR of 13 per cent and 15 per cent,

respectively. It has nearly 1,300 employees worldwide. In September 2006, Marico was rated among the top 10 Indian marketers by Business Today, a leading business magazine.

Marico Limited in Arab Countries


Marico ventured into the Arab market five years back through its premier brand - Parachute. The company offers a wide range of Parachute oils and creams in these markets. Parachute Coconut Hair Creams, one of the most successful products of the company in the Gulf region, include the Parachute Extra Nourishment Coconut Hair Cream, Parachute Extra Moisturising Coconut Hair Cream, Parachute Intensive Care Coconut Hair Cream and Parachute Anti Dandruff Coconut Hair Cream.To further strengthen its presence in the Middle East, Marico Limited incorporated Marico Middle East FZE as its subsidiary in November 2005. Marico Middle East FZE incorporated Kaya Middle East FZE as its subsidiary in December 2005. Marico also acquired the Ready Group's hair care brand, Fiance, in Egypt for further expansion in the Arab world. Marico Limited in the UAE Marico launched Parachute Coconut Hair Creams in the Gulf around five years back. It has captured over 22 per cent of the UAE market. In 2005, Marico established a company, Marico Middle East FZE, to expand its business in the UAE. Marico Middle East FZE has set up its subsidiary - Kaya Middle East FZE. Kaya Skin Centres are located in Dubai (Jumeirah and Karama) and Abu Dhabi.

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Marico in Other Arabian Countries In September 2006, Marico acquired the Fiance brand from the Ready Group, Egypt, to enter the Egyptian hair care market. Marico also has a presence in the Gulf market through its offices in KSA, Oman, Qatar, Bahrain, Kuwait,Yemen, Lebanon and Sudan.

Factors for Success


Meeting Regional Preferences and Targeting Untapped Customer Segment Being a more developed economy, the Middle East imitates the west; hence, when Marico entered the market, hair creams were preferred for hair nourishment and protection. as they promised the goodness of hair oils without their stickiness. Hence, hair creams became a point of focus for Marico in the Middle East even though it was a completely new format for the organisation as such. Brylcreem, the market leader in the hair cream segment at that point of time, catered predominantly to the male audience. Marico went ahead and launched hair creams targeting women a bold step. Marico pursued this initiative as it spotted a significant opportunity, which had not been adequately tapped earlier by any other company.The entire marketing strategy was targeted towards the female audience.The product was an instant hit, and the company saw its sales graph moving up month-on-month, making hair creams the highest revenue generating brand in the Middle East for Marico. Creating Brand Recognition - Celebrity Campaign Marico followed a strategy based on a thorough consumer understanding - their dreams, their aspirations and their role models. As a part of this strategy, it decided to have a brand ambassador who could provide the brand with both credibility and a strong association. However, the company was very cautious in choosing its brand

ambassador. After a detailed consumer feedback, it came down to only one name, Zainab Al Asgari. However, before finalising the name, it had to ensure that her personality matched the product. More importantly, Marico had to also convince her to sign for the Parachute endorsement, which was a difficult task owing to complete lack of knowledge about the brand.This celebrity campaign led to bullish growth for the company and saw its market share increasing across all countries in the Arab world. Aggressive Marketing Strategies Marico's marketing strategies revolved around its celebrity campaign, with its central idea impressively reflected in the slogan - by using Parachute hair cream even your hair will become like Zainab. It started with a 360-degree launch of its products. It used various mediums to create brand awareness among Arab citizens such as highimpact road shows, high-intensity retail visibility, Zainab-endorsed special packs, a booklet containing Zainab's hair secrets,TV campaigns and special displays in shopping malls.This resulted in a substantial jump in brand awareness, positively affecting the company's sales. Growth through Acquisitions Marico has acquired five companies in the last 18 months to expand its product lines and business.The company acquired a number of brands such as Aromatic soap in Bangladesh, Manjal toilet soap and Nihar hair oil in India, and Fiance hair care brand in Egypt.The Ready Group's Fiance hair care brand has captured 20 per cent of the Egyptian market. Marico is leveraging the popularity of the Fiance brand to expand its business in Egypt and other parts of the Arab world.

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Future Plans
Launching New Products Marico has introduced several new products in the last year to increase its market share.These products include Sparsh baby oil,Therapie herbal oil, Sun-n-Shine conditioner, Parachute non-sticky hair cream, Parachute jasmine soap, etc. By focussing on the introduction of products and concentrating on R&D to develop new products, the company expects to increase its revenue and market share in India and overseas.

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