SREYAS SATHEES BABU

21MBMA81

13-Oct-21
1.1 INTRODUCTION

Mamaearth is a health, wellness, and fitness firm based in India. Ghazal Alagh and Varun
Alagh started Honasa Consumer Private Limited in 2016 and released the Mamaearth line
of toxin-free products in December of that year to make skincare routines a touch more
fashionable while still maintaining the highest level of safety. It is a major company
dedicated to improving and beautifying the lives of mothers and expectant mothers. A
brand that welcomes all newborns into a world that is healthy and safe.

Mamaearth has attempted to alleviate a prevalent Indian parenting concern through an

innovative product range. Mamaearth delivers items that are safe by international
standards and infused with the goodness of nature in a country where the majority of
infant products available do not meet safety norms.

They begin the process of planting and matching the order with the sapling after an order
is placed on the website. They will give the specifics of the plant via email within a few
days, along with the delivery of the products. You can also look up information about the
tree in the section above.

Mamaearth is the first Asian brand to be certified as "MADE SAFE." All known poisons
that are forbidden in most countries are absent from their goods. It is more than a brand;
it creates items with love and attention.

1.2 TARGET MARKET

Mamaearth is aimed towards the younger generation, millennials (generation Y),
children, and those in the middle class.

1.3 TARGET MARKET SIZE

In the next three years, India's baby care market is predicted to develop at a 17 percent
CAGR (Compound Annual Growth Rate). This market has been split into the following
product categories: baby clothes, baby toys, baby cosmetics, baby food, baby accessories,
and baby diapers.

1.4 MARKETING MIX

Mamaearth, employs the marketing mix deliberately to achieve not only marketing but
also larger organisational goals.
The Marketing Mix of Mamaearth is presented below:
1.4.1 Product
One of the most significant aspects of Mamaearth's marketing mix is product.
Mamaearth's product has the following distinguishing features:

A. Quality
Mamaearth maintains high product quality by adding value at all levels of the value
chain. Mamaearth only buys raw materials from reputable and trustworthy sources. These
raw materials are processed in tightly controlled settings to ensure excellent and
consistent product quality.

B. Ease of use
Mamaearth's goods are reasonably straightforward to use, and all come with a user
handbook that is easy to understand and includes simple directions for product use.
Customers can also call the 24-hour helpdesk to learn more about how to use the device.

C. Portfolio broadness
Mamaearth has a diverse product line, which allows the company to reach out to a variety
of consumer segments. In addition, Mamaearth's vast portfolio gives it financial strength
and increases its worth.
1.4.2 Price
Mamaearth's marketing mix focuses on a hybrid pricing strategy to get the most value out
of its products. Mamaearth's marketing mix includes numerous ways for pricing its
products, which are outlined below:
 A. Premium pricing
Mamaearth supports good brand and product perceptions in target consumer groups, as
well as a favourable quality image of Mamaearth products, by adopting premium pricing
for some of its product lines. Mamaearth has successfully made several of its product
categories unique by restricting sales and production with premium prices. As a result,
there is an impression of luxury in consumer products. Premium prices give Mamaearth
items a sense of exclusivity and great value.
B. Psychological pricing
Because Mamaearth has a variety of product lines and product groups, psychological
pricing has shown to be useful, and Mamaearth has been able to successfully add
additional value to its products from the perspective of customers. Mamaearth can
diversify its target buyer groups and expand its target audience.
C. Geographical pricing
Mamaearth can best penetrate diverse regional markets by utilising geographical pricing,
which also allows Mamaearth to cover shipping and customs fees for offshore locations.
Mamaearth can also sustain consistent revenue growth by adjusting prices in different
areas based on the value of the local currency.
D. Bundle pricing
Mamaearth is known for using a popular package pricing strategy for various product
lines. Bundle pricing encourages customers to try new things. Mamaearth can reduce
costs and prices by cutting marketing and distribution expenses through package pricing.
1.4.3 Placement
Mamaearth places great emphasis on product placement because it directly affects
customer accessibility.
A. Company-operated stored
Mamaearth maintains stores in all markets that are handled by the company's
management, giving Mamaearth greater control over operations, as well as retail layout
and design. Mamaearth also communicates directly with customers and collects critical
information about their behavior and comments through company-run storefronts. The
Mamaearth-operated businesses also provide Mamaearth clout when it comes to stocking
decisions for various product categories. regarding the stocking of different product
items.
B. Licensed stores
Mamaearth licensed stores allow consumers to enjoy the company's various product
offerings. Licensed stores also reduce Mamaearth's risk of financial and physical
investment in unstable markets. Licensed stores have also given Mamaearth high
business growth and a boost for rapid market expansion and penetration.
C. E-commerce
Mamaearth features a fully functional website for online order placing and tracking, as
well as a mini-shop model. Mamaearth also supports sales through social media portals,
where the company takes orders through direct messages. Online merchants such as
Amazon and eBay, as well as smaller local online shops, stock the company's items.
Mamaearth's sales have increased as a result of online retailing and using the internet to
generate purchases. Its products are also more accessible to consumers.
D. Supermarkets and hypermarkets
Mamaearth also sells its products in supermarkets and hypermarkets around the country,
as a substantial proportion of Mamaearth target groups buy at supermarkets and
hypermarkets. Supermarket and hypermarket placement also helps Mamaearth save
money. 
E. Partner agents
Mamaearth Safe uses partner agents to place its products in offshore locations, and these
partner agents are assessed and evaluated based on strategic compatibility and reliance.
Mamaearth Safe contracts with partner agents in other countries and markets to ensure
quality control and terms of negotiation.
1.4.4 Promotion
Mamaearth's marketing strategy places a premium on the promotional approaches and
strategies employed. Mamaearth is able to contact with and influence customers directly
because to its promotional techniques. Mamaearth employs a 360-degree strategy to its
marketing efforts, employing the following methods of promotion:
A. Digital marketing
Mamaearth has corporate profiles on all major social media platforms and portals, and it
leverages its social media presence to communicate with customers directly. We can
better understand our clients, their wants, and demands as a result of this direct
connection and interaction. Mamaearth takes this information and applies it to its whole
marketing and organizational plan.
B. Reward Programs
Mamaearth provides a customer loyalty card programme that allows consumers to
redeem points for items or other interesting presents as specified by the company. Each
transaction is recorded into the loyalty card and valued for points against the monetary
value of the products.
C. Community Influencers
Mamaearth employs community influencers as part of its on-the-ground marketing
initiatives, identifying strong and confident individuals to serve as brand ambassadors in
local areas. Mamaearth distributes its product line to these brand ambassadors and
community influencers and invites them to try it out for themselves to witness the
benefits.
D. Conventional marketing
Mamaearth makes use of out-of-house hoardings in high-density areas. Hoardings boost
Mamaearth's awareness while also helping to generate stronger brand memory.
Mamaearth also creates commercials on television. Every television commercial has an
emotional appeal. Mamaearth's TV commercials have evolved to feature slice-of-life
themes and qualities, as well as the product's utilitarian benefits.
1.5 EXECUTIVE TEAM
Varun Alagh Co-Founder and Chief Executive Officer
Ramanpreet Sohi Chief Financial Officer
Zairus Master Chief Business Officer
Jayant Chauhan Chief Product and Technology Officer
Abhishek Pandey Chief Supply Chain Officer

1.6 WORKPLACE CULTURE

The working culture is open, ambitious, and adventurous, with no strict hierarchies.
Mamaearth is also a wonderful place to work.

1.7 PRODUCTS/SERVICES 
With over 80 natural items under its cover, Mamaearth caters to baby care, hair care, and
skincare. Mamaearth has created some of the most creative products, including India's
first bamboo-based baby wipes, an easy tummy roll-on with hing and funnel for colic and
digestion relief, and a 100 percent natural plant-based toothpaste for children aged 0 to
10.

These are the items:

1. For babies: Mamaearth offers infant products to keep their skin soft and delicate. It
is hygienic and makes your baby happy. Germs will avoid your kid, and he will
 feel secure. The Mamaearth items for your baby are as follows: Baby shampoo,
baby oral care, baby oil, baby skin, baby bath, and baby diaper.
2.  For Hair: Mamaearth providing Hair products for your hair. It will nourish your
damaged hair. Here are the Mamaearth products for Haircare: Shampoo,
conditioner, hair oil, hair mask, and hair serum
3.  For Face: Mamearth providing face products for all skin types. It will make your
face acne-free and toxin-free. Here are the Mamaearth face products:
Face wash, face mask, face cream, face serum, face scrub, face toner, face gel, and
face sheet mask
4. For Body: Mamaearth providing body products. It will give your body
nourishment. Here are the Mamaearth Body products: Body butter, body scrub,
body lotion, body wash, and hand cream.

1.8 BUSINESS AND REVENUE MODEL

Mamaearth creates products that are subsequently manufactured under license from the
Mamaearth brand by contract manufacturers. Honasa Consumer Pvt. Ltd. owns the
trademark "Mamaearth." Mamaearth is a digital-first FMCG firm with a revenue model
centered on the selling of tangible products to customers via D2C platforms (Amazon,
Flipkart, etc.) as well as traditional offline stores. Mamaearth's team adheres to the blue
strategy, which includes an omni channel presence and growth driven by creative
products.

1.9 COMPETITORS
MNCs like Himalaya and Johnson & Johnson, as well as e-commerce portals like Nykaa,
compete directly and indirectly with Mamaearth. While there are various enterprises –
both corporates and entrepreneurs – in categories such as baby clothes, baby toys, and
baby accessories, organised players such as Johnson & Johnson, Kimberly Clark, Procter
& Gamble, and Unilever dominate the cosmetics industry. Nowadays, a growing number
of businesses are adopting the toxin-free philosophy.
1.10 GROWTH
Mamaearth had only six products in its portfolio when it first started in 2016. Over 1.5
million Indian consumers use the product range, which today includes over 80 natural
and toxin-free goods.
Mamaearth saw an increase in operational revenue, which increased to Rs 110 crores in
FY20 from Rs 16.8 crores at the end of FY19. The company's losses have also been kept
to a minimum of Rs 5.9 crores, which is rather commendable. The company may exceed
the Rs 500 crore mark in FY21, according to a study issued by investment bank Jefferies.

1.11 CURRENT MEDIA PLANNING STRATEGIES

Mamaearth has assigned Essence as their integrated media agency.

1.12 SWOT ANALYSIS OF MAMAEARTH 

 SWOT analysis is the main stage technique to evaluate a business's techniques and plans.
Perhaps, it is in the type of windows where 2 parts are related to the internal environment
and two elements are related to the external environment.

STRENGTHS
 1. Strong Brand Equity
Mamaearth's key services, which have built great brand equity, were recognised by every
client. Mamaearth, on the other hand, focuses on producing high-quality items and
delivering orders within 30 minutes, resulting in a solid brand image. This is why the
company has a large number of repeat customers.

2. Customer Support

Mamaearth's social media managers are available 24 hours a day, 7 days a week on their
websites and social media platforms, where they communicate with customers. However,
it also fosters a positive relationship between customers and franchisees.

3. Highly Skilled Employees

Mamaearth has put in place training and growth programmes for its employees in order to
develop their skills. Certainly, the corporation must maintain employee motivation for
their work because of its non-monetary and monetary benefits. The learning programmes
assist the organization in improving its efficiencies and capabilities.
4. Strong Captured Marketing & Promotional Advertisement
 Through psychological and strong message advertisements, they have captured the
attention of their clients. Mamaearth's emotional strategy, for example, is to publicize
Mom's Day with a message to love you, moms and dads, no matter what.
5. Quick & Fast Delivery System
 Mamaearth is preferred for its quick delivery.

WEAKNESSES
1. Niche products
Mamaearth has a few niche product offerings for specific markets only. These markets
are high end in nature and cater to elite clientele. This limits Mamaearth's revenue
sources and makes it extremely reliant on a limited mall target demographic for returns.
2. Pricing strategy
Mamaearth has been known to engage in competitive pricing on a regular basis, which
has benefited its product offerings. However, Mamaearth also engages in an above-
market price strategy for some products. Mamaearth charges higher prices for its quality
offerings as well as for its premium brand image. The premium pricing strategy for select
segments is an offset because it drives customers to competitors because there are easy
direct substitutes available.
3. Limited diversification
Despite the fact that Mamaearth serves to a variety of customer segments, its product
offerings overlap. This implies that it provides nearly identical product offerings to
different consumer segments, with additional features and benefits. The offering across
sectors is similar at its core, which is a disadvantage for Mamaearth.
4. Fluctuation in cash flows
The recent economic fluctuations have also caused fluctuations in Mamaearth's cash
flows, which have a negative impact by creating temporary financial uncertainty, which
is reflected in limited innovation, higher pricing, and higher costing for the business. As a
result, the cash flow fluctuation has an impact on the company's way of doing business,
as well as its efficiency.
5. Autocratic leadership and management styles
For the most part, Mamaearth has autocratic leadership; this leadership creates trust and
accountability issues in the organisation; employees are not empowered and do not feel
engaged with the organisation; and employees have lower levels of organisational
commitment, which leads to lower motivation and performance.

OPPORTUNITIES
1. New Environment Policies
Mamaearth can benefit more from innovation thanks to improved environmental rules.
2. Expansion in developing countries
Mamaearth should extend its operations in growing nations such as India and China,
where increased disposable income will provide Mamaearth with a varied source of
revenue. In emerging markets, Mamaearth will also have more room for innovation and
new product development. Consumers in emerging markets will be more willing to test
new items and experiment.

3. Product diversification
Mamaearth should use its market research to diversify its products. By diversifying its
products, Mamaearth will be able to expand its reach and penetration. Mamaearth will
also be able to tap into new consumer segments. Introduce innovations in the
organisation, as well as in the industry – and thus increase consumer appeal.
4. Innovations
Mamaearth will be able to keep ahead of the competition and have a first-mover
advantage with its industry innovations. Innovations will also assist Chipotle Mexican
Grill build its business.
5. Retail alterations and expansion
Mamaearth can improve the consumer and brand experience by changing the retail space,
which includes changing the ambiance of the retail outlet and training the staff to provide
exceptional customer service. Mamaearth should also look into expanding its retail
presence by opening branches in various regional areas. Consumer and market research
should be used to inform retail expansion and changes.

THREATS
 1. Increasing costs of raw materials
Increased raw material costs raise the cost of doing business, which typically leads to an
increase in the price of final products. Price wars are common in high-competition
environments, and higher prices are frequently met with rival firms cutting their prices
slowly. As a result of the intense competition in the industry, players may suffer.
2. Changing market trends
Market trends are influenced by media and world events. The fast-changing trends are in
a constant state of flux, making it difficult for players like Mamaearth to adapt quickly
enough to the changing trend. As a result, players with a low response rate may struggle
to survive.

3. Low barriers to entry in the industry

The industry has low barriers to entry in terms of government regulations and financial
investment, which encourages new players to enter. The industry is saturated with local
and global players. The potential for growth and profit encourages new players to enter.
As a result, direct substitutes and cut-through price wars exist among companies offering
similar products and services.
4. Increased number of players
There are more local and worldwide competitors in the business, which raises the
intensity of competition and rivalry. Rivalry is frequently centred on brand-building
activities and price strategies.

1.13 PESTEL ANALYSIS TO MAMAEARTH 

Mamaearth can use PESTEL analysis to identify and support its strategic decision-
making process by identifying the primary external environmental influences that shape
its strategy and competitive landscape. Conducting a PESTEL analysis is critical for
generating effective strategies and achieving long-term growth objectives as Mamaearth
looks to extend and use its expertise and core capabilities.

Political Factors
1. Political stability
A stable and pleasant business climate with predictable market growth trends is provided
by high political stability. Political unrest, on the other hand, deters investors and
undermines stakeholders' faith in economic and, as a result, organisational performance.
2. Changing policies
Changes in government policy are detrimental to company performance because they
increase environmental uncertainty. Mamaearth must research current political
developments in the country because changes in government may alter the government’s
priorities for the development of certain businesses.
3. Protests/pressure groups and governance system
Mamaearth should investigate pressure organisations, social/environmental activists, and
labour unions' protests, as they play an essential part in the policy-making process.
Mamaearth's ability to cooperate with the community and achieve long-term corporate
goals may be enhanced by close collaboration with such organisations. Furthermore, for
international commercial organisations like Mamaearth, a well-developed governance
system with a democratic political atmosphere makes the business environment more
comfortable.
4. Bureaucracy and corruption
Bureaucracy and corruption have a negative impact on the business climate. Mamaearth's
business environment is becoming increasingly uncertain as a result of eroded public trust
in commercial organisations and the general political and economic structure of countries
with high levels of corruption and inadequate law enforcement.
5. Taxation and trade restrictions
Entering countries with high tax rates will have a direct impact on Mamaearth's
profitability. Taxation has a negative impact on international trade and hinders exports.
Mamaearth can enter areas with low taxes and profit margins, allowing it to spend in
research and development. High trade restrictions, on the other hand, might complicate
the business climate by reducing exports and undermining ties with foreign trade
partners.

Economic Factors
1. Economic/business cycle stage
Organizational performance is directly influenced by a country's economic progress.
Mamaearth can benefit from growing economies in a variety of ways. Similarly, it is
critical to comprehend the stage of the industrial lifecycle.
2. Inflation/employment/interest/exchange rates
Mamaearth's ability to pursue its long-term growth goals will be determined by its GDP
growth rate. A high GDP also indicates that consumers have the financial means to spend
more on the things on offer. High unemployment indicates that there is a surplus of
labour available at cheaper wages. The interest rate and its impact on borrowing ability
and investment attitude should also be carefully considered by the organisation. Finally,
fluctuations in the exchange rate can have an impact on profitability and international
trade. Mamaearth may be concerned by the excessive volatility of the local currency.
3. Labor market conditions
Wage rates and skilled worker supply are determined by labour demand and supply.
Mamaearth must research and forecast labour market dynamics in order to determine how
it can attract and harness talented individuals to boost business performance.
4. Economic structure
The Mamaearth's business operations are influenced by the current economic framework.
In comparison to monopolistic competition and perfect competition, the economic and
regulatory environment in a monopolistic or oligopolistic structure will be different.
Social Factors
1. Demographic trends
For multinational commercial companies like Mamaearth, changes in demographic
patterns such as population ageing, migration trends, and socioeconomic characteristics
are critical. Mamaearth can choose the suitable market segment/segments with strong
development potential by studying demographic data.
2. Equality and power distance
Within any community, the acceptability of hierarchy and income disparity may be seen
in the power distance. When Mamaearth enters markets with a high or low power
distance, it must alter its business management procedures.
3. Gender Roles
Mamaearth needs to research established gender norms in order to harmonise its
marketing and communication methods. Traditional patriarchal civilizations with firmly
defined gender roles will have different marketing and human resource tactics than
societies with little gender norms.
4. Spending patterns and behavior
The purchasing power of money has an impact on consumer spending patterns. It's
critical to understand customers' preferences and spending patterns by studying and
forecasting their purchasing power based on pertinent economic data.
Technological Factors
1. Social media marketing
The advancement of information and communication technologies has resulted in the
adoption of novel marketing methods to improve consumer collaboration. In today's
business world, using social media has become commonplace. Mamaearth can boost its
business success by utilising the chances provided by social media marketing.
2. Technological innovations and development level
To stay ahead of the competition, Mamaearth should carefully analyse ongoing technical
advances. Analyzing 5G and identifying its potential to generate beneficial business
outcomes through enhanced user experience, increased speed, and extended access
should be kept in mind. Such technological advancements have the potential to change
the sector and rewrite the success standards for market players.
3. Research and development on technology and impact on cost value chain
Mamaearth must analyse competition investments on a local and macro level in order to
comprehend how new technologies affect the firm's value chain and current cost
structure. Mamaearth should invest in disruptive technologies to maximise earnings and
reinvest the proceeds in future disruptive innovations in such an atmosphere.
4. Shortened product life cycles
The use of new technology has shortened the time it takes to develop a new product. New
products are developed more fast these days, and supply chain partners have gained
greater clout. Mamaearth is under pressure to produce new items fast, diversify its
product range, integrate flexibility into the value chain, and cultivate positive business
relationships with value chain partners.
Environmental Factors
1. Recycling and waste management
Business enterprises have been driven to embrace creative recycling and waste
management techniques as a result of rising environmental degradation and technological
innovation. Recycling has practically become a corporate standard in several countries.
Furthermore, Mamaearth recognises the importance of implementing effective waste
management procedures in organisational units located in or near urban areas.
2. Renewable technologies
Subsidies are available in several countries to encourage investment in renewable
technologies. Mamaearth can take advantage of it and invest in renewable technologies in
order to maintain long-term viability. Due to the improved brand image, this investment
will help increase shareholder satisfaction and extend the client base.
3. Weather and climatic conditions
Weather and climatic conditions can have an impact on company efficiency. Extreme
weather, for example, might raise operational costs and force Mamaearth to make the
value chain more flexible. Consumer buying patterns may be affected as a result of these
developments, prompting the company to alter its product and marketing tactics.
4. Attitude towards eco-friendly products
The adoption of green/environmentally friendly products is on the rise. Mamaearth can
take advantage of the situation by using green business practices to gain stakeholders'
trust.

Legal Factors
1. Employee protection laws (discrimination and health and safety)
Mamaearth must abide by all labor/employee health and safety rules, as certain nations
have rigorous labour safety regulations. Mamaearth has an ethical and moral commitment
to provide a safe working environment for its employees. Anti-discrimination regulations
(such as equal employment opportunity) must also be thoroughly examined.
2. Consumer protection laws
Because of consumer worries about privacy and security, data protection has become a
major issue. To protect consumer data, Mamaearth must research data protection
regulations. There are also laws in place to set a maximum price, enforce a specific level
of quality, and protect consumers from deceptive marketing promises. Mamaearth must
take these elements into account in order to comply with consumer protection legislation.
3. Intellectual property laws
Inability to protect intellectual property rights can lead to a loss of competitive advantage,
putting Mamaearth at a disadvantage to other market competitors.
1.14 CONCLUSION
Mamaearth has now preserved the demands and desires of their customers by providing
healthier options. Mamaearth is a multinational company with a diverse set of
capabilities. Due to the strong brand name equity that Mamaearth has built over the years
by providing high-quality products and exceptional service, the company is continually
working to stay strong and maintain a solid position and reputation in the industry.

1.15 RECOMMENDATIONS
 Strengthen distribution network
 Develop unique marketing tactics
 Adapt to different cultural aspects of different markets
 Product diversification
 Expand into new regions
 Strengthen value network