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Marico Bangladesh Limited is a wholly owned subsidiary of Marico Limited, an Indian consumer goods company. MBL operates in Bangladesh and has emerged as one of the fastest growing FMCG companies in the country. It holds a number of leading brands such as Parachute coconut oil, Saffola edible oil, and Hair & Care hair oil. While focusing on organic growth, MBL has also pursued inorganic growth through acquisitions. Its customer-centric approach and expansion of distribution networks have contributed to its rapid 37.71% annual growth over the past 8 years. However, MBL faces threats from increasing competition and potential economic downturns that could reduce consumer spending power.

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Name ID SAMIUR RAHMAN 1431196030 ANZEER BINTE MUSTAFIZ 1431225030 ERTIFA TASNIM 1510673630 SADMAN YASIR 1512374030 TABASSUM TAZRIN KABIR NIKITA 1530109630 Md. JUNAYED AMIN SHUVO 1610464030 Md. OSMAN HOSSAIN SHAFIM 1620860030 NAFIUL ISLAM 1621249030 AHMED HOSSAIN 1631815600 MRIDUL SAHA 1711627030 FINALREPORT MGT489.1 Submitted to Samuel Mursalin (SMM4) Lecturer Department of Management North South University Submitted by
Acknowledgement We are indebted to many people for providing us encouragement and support during our learning and working while making this report. We are very much grateful to Mr. Samuel Mursalin, our respected course instructor of MGT489 who assigned us this challenging work. He always guided us to take and overcome this challenge successfully. Without his help in every step it was quite impossible for us to finish this report properly in time. At every moment we remember all of our classmates who really encouraged us in every stage of this project with their support which really helped us a lot. Also we are grateful to all the fellows who provided us with their utmost effort. Without their help it would not have been at all possible. They have provided with all the information and also supported us a lot.
August 22, 2019 Mr. Samuel Mursalin Lecturer, Department of Management School of Business and Economics North South University, Dhaka. Subject: Letter of Transmittal for submitting the report on MARICO. Dear Sir, We have worked on “MARICO” which was given by you. This report has given us the opportunity to think realistically and work as a team to find out creative idea and solution. Thank you Sir for assigning us with such a brand like this. It is great pleasure to accomplish and submit report before you for your kind evaluation and necessary action. Sincerely yours, SAMIUR RAHMAN ANZEER BINTE MUSTAFIZ ERTIFA TASNIM SADMAN YASIR TABASSUM TAZRIN KABIR NIKITA Md. JUNAYED AMIN SHUVO Md. OSMAN HOSSAIN SHAFIM NAFIUL ISLAM AHMED HOSSAIN MRIDUL SAHA
Table of Contents Company Overview................................................................................1 Detailed Description of the line of Businesses ......................................3 Company Analysis SWOT .......................................................................5 Competitor’s Analysis ............................................................................8 Corporate-Level Strategies.....................................................................9 Business-Level Strategies.....................................................................11 Functional-Level Strategies..................................................................13 Recommendations ...............................................................................15 References............................................................................................16
1 | P a g e Company Overview Marico Limited is an Indian consumer goods company providing consumer products and services in the areas of Health and Beauty based in Mumbai. During 2015, the company generated a turnover of Rs. 5,733 crore. In 2018 the company generated a turnover of ₹.6300 crore. Marico has 8 factories in India located at Pondicherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib. In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary. Its manufacturing facility is located at Shirirchala, in Dhaka Division. Marico Bangladesh Limited (hereinafter referred to as MBL), a wholly owned subsidiary of Marico Limited, India, (hereinafter referred to as Marico), is one of the front footer in the Fast Moving Consumer Goods (FMCG) market in Bangladesh. It was incorporated on 6 September, 1999 under the Companies Act 1994 as a private limited company with an authorized and paid-up capital of Tk. 10.00 million and went into commercial operation on 30 January 2000 with its flagship brand “Parachute Coconut Oil”. However, it has increased Authorized and Paid-up Capital to Tk. 300 Million and Tk. 90 Million respectively on 18 September 2008 and converted into a public limited company on 21 September 2008. Again it has increased authorized and paid- up capital to Tk. 400 million and Tk. 283.50 million vide special resolution passed in the extra ordinary general meeting held on 31 December 2008. Within a couple of years Parachute Coconut oil captured a significant market share in Bangladesh and at present it holds 72% market share of branded coconut oil market in the country. Recently its “Parachute” brand was awarded as the 6th Overall Best Trusted Brand out of 849 Brands (both local and MNCs) operating in Bangladesh and 3rd Best Brand in the FMCG category by Bangladesh Brand Forum, an affiliation of Singapore based Brand Forum. The organisation holds a number of brands including Kaya Limited, Parachute, Saffola, Hair&Care, Nihar, Mediker, Revive, Manjal, Livon, Set Wet, Zatak, Fiancee, HairCode, Eclipse, X-Men, Hercules, Caivil, Code 10 and Black Chic. Marico's brands and their extensions occupy leadership positions with significant market shares in a number of health and beauty areas. Marico has a significant presence in Bangladesh, South East Asia, Middle East, Egypt and South Africa. Marico reported a net profit of Rs 573 Crore in 2014-15. Indian expatriates in the Middle East had
2 | P a g e been smuggling Parachute oil with them for their daily use when export of the oil was restricted prior to the 1991 economic liberalization. Marico decided to try to sell products in that market after liberalization, but found that Arab customers did not like the scent of coconut, wanted a less sticky hair product, and needed a product to counteract the high level of chlorination in their water. When Marico reformulated its product, its market share in the Middle East grew from 2% in 2002 to more than 20% by 2008. Marico's sustainable growth story rests on an empowering work culture that encourages our members to take complete ownership and make a difference to the entire business ecosystem. Marico Bangladesh Limited (MBL) has tripled its turnover in 3 years, and achieved what very few FMCG companies would have been able to pull off-37.71% compounded annual growth over past 8 years. By looking beyond the traditional FMCG space and seeking focused avenues for growth. Transforming consumers from non-branded to branded coconut oil offering purity. From a small player to a 3rd largest FMCG multinational company. Marico Ltd. Did not just focus not on organic growth but also in-organic growth. Their large investment in brand building, 360 degree approach in marketing and expansion in distribution too has contributed rapid growth. Today, Marico Bangladesh Limited has emerged as the fastest growing FMCG Company. Their approach to the market with uncommon sense has helped us challenge the norm to push the boundaries of our existing businesses and set up new ones. By tapping into the minds of consumers and gaining a deeper insightful understanding of what they really seek, Marico Ltd. able to identify opportunities and create categories where none exist. With their acquisitions they demonstrated an entrepreneurial leap into larger FMCG categories. The success key of Marico Ltd is Continuous improvement of performance standards and capability building for sustained long-term success. Their thinking is always customer centric.
3 | P a g e Marico Company Analysis Detailed Descriptions of the line of Businesses In recent times, Marico can be marked as one of the India’s leading company. It has its core focus on delivering leading Consumer Products and Services; it mainly has its concentration in the beauty and wellness segment of the market. They tend to do business in such a way so that it enhances and creates a difference in both their internal and external stakeholders’ interest at a larger scale. Taking into account Marico’s business model, it mainly highlights on focus growth including all the brands it holds under its umbrella, whether it is related or unrelated diversification. Marico aims in constantly improving the value proposition it promised on delivering to its consumers. Economics of scale is another benchmark that Marico always tries to keep a foot in; market expansion and the reach of retailer are the key areas where they want to hold onto their interest as much as possible as these at the end helps them to reduce the cost structure. This lead Marico to expand, and currently they are operating in more than 25 countries. The list does not includes the developed countries but also many emerging markets in Asia and Africa. In many cases, marked as First-Mover, helping them to stay above from their competitors by the cost advantage that a First-Mover holds. Marico has a wide range of products/ services, it has sustainably has multiple brands. The lists is stated below,  Marico’s Indian business markets consists of brands such as Parachute, Parachute Advance, Hair & Care, Nihar, Nihar Naturals, Livon, Saffola, Set Wet and Mediker.  The International business offers unique brands such as Parachute, HairCode, Hercules, Fiancée, Caivil, X-Men, Black Chic, Code 10, Ingwe and Thuan Phat that are localized to fulfil the lifestyle needs of international consumers. Marico’s annual turnover in the year 2016-17 was INR 25,000 crore, “Be more everyday” is the tagline of the company.
4 | P a g e While keeping the attention in focused growth, Marico targets to be known as the Market Leader. It is not only focusing to be the leader in only one segment, rather aims to be the leader in each of the businesses it is currently working in. It plans in doing so by understanding the needs and wants of consumers at the very level best, setting new benchmarks in ensuring quality of Products and Services through the process of continuous learning and innovating every now and then. The concept of “Feedback Loop” is something that is inherited in Marico’s Culture, making sure the alignment of the Business Model in every aspect is always in the right track. Market surveys and understanding the needs and wants of the customers precisely is highly highlighted in Marico’s Culture. The company itself consists of a wide range of products as stated above, it is nothing but reaching out and creating such a market place so that even with one product/ service it can target multiple customer groups reflecting on their income level. It is more important to keep customers belonging from high-end to low-end, to make them stay under their umbrella. Below is a list of Brands that Marico holds: PRODUCTS BRANDS Coconut Oils Parachute Edible Oils Saffola Hair Oils Hair & Care Fabric Care Products Nihar Healthy Foods Shanti Soaps Mediker Baby Care Products Revive Male Grooming Products Manjal Female Beauty Care Products Setwet, Zatak, Livon, Kaya Table 1: Product Lines of Marico
5 | P a g e The different brands that Marico holds fall under different pricing model, trying to reach more and more markets. Changing the quality, ingredients, materials used in making the same product in order to ensure that it goes hand in hand in the “International Market” as well as catching new customer group. Customer-Value lifetime is another issue that made what Marico is today. The concept of retaining customers as much as possible is a trigger factor for Marico. The Product Bundling offers, discounts all made Marico grow with its wide range of products.  Parachute is the most satisfied Brand/ Product, followed by Saffola, Silk & Shine Hair & Care, and Sweekar Edible Oil & after Shower Gel. Company Analysis SWOT SWOT analysis involves an examination of a firm’s strength, weakness opportunities, and threats. It helps to guage firm’s ways to take advantage of its competitive benefits or defend against its weakness. Strength and weakness involve characteristic the firm’s internal talents or lack thence. Opportunities and threat include external state of affairs like competitive forces discovery and development of latest technologies, government laws and domestic and international economic trends. The strengths of a corporation offer the firm a comparative advantage within the market place. Perceived strength will embody sensible client service or robust money resources. To remain strength they need to still be developed, maintained and defended through prudent capital investment policies. Weakness result once competitors have probably exploitable benefits over the firm. Once weaknesses ar known, the firm will choose ways to mitigate or correct the weakness. Opportunities or environmental factors that favor the firm will embrace a growing marketplace for the firm’s merchandise, shrinking competition favorable rate of exchange shifts a money community that has confidence within the outlook for the trade or firm or identification of a replacement market or product section. Threats ar environmental factors that may hinder the firm in achieving its goals. it'd embrace a fastness domestic economy, extra government regulation a rise in trade competition, threat of entry , patrons or suppliers, seeking to extend their negotiation
6 | P a g e power or new technology that may absolute the industry’ s product. Now we discussed the SWOT analysis on the concept of our MARICO Company. At first, we describe about strength of the company and so on. Strength:  Brand image: Firstly, MARICO has stayed in the local market in Bangladesh and also in many other different countries for many years. So, they are so experienced and positioned in people’s mind deeply. Every customer in all countries is aware of MARICO. MARICO portrays different kinds of products which are already exist in the market and people love it. So, there is strong brand favorite for MARICO over other substitutes in the mind of a huge amount of consumers in the local market.  Superior quality control measures: MARICO keeps and controls the higher quality of the product. It is the policy of farming marketing company limited to market products of dependable quality at home and abroad as per would standards formed by in agreement with good trade practices.  Integrity: MARICO believes success depends upon the standard and worth of their merchandise by providing a secure, wholesome economically economical and healthy surroundings for his or her customers and by providing a good come to their investors whereas maintaining the best standards of integrity.  Market share: Variety of the products leads in the share market and increasing the market share.  Customer satisfaction: MARICO exist in the market, means customer will consume their product. They launch variety of their product and the price of the product is measurable. So, the customer is well satisfied with the product. Weaknesses: Limited decision taking capacity: The Company is existing under the rules and regulation of corporate company. So, they cannot take the large decision because they do not have that power. Price disadvantage: Expensive raw material leads to sometime difference in price of products. Price of the raw material which is the key ingredient of their product line, is comparatively
7 | P a g e expensive than that of their competitors in the local markets especially the emerging ones. So, this makes their product a high cost then most of their competitors. Consumption per capita: For example: - Bangladesh has the lowest per capita consumption in the world. So upper class and middle class can bear the MARICO product but the lower-class people cannot bear it. Lack of geographical coverage: Due to lack of communication the company cannot reach to the geographical zone to produce the product in a low price. Opportunities:  The agriculture sector is the major sponsor to GDP. So, MARICO produced canned fruit and vegetables, mushrooms etc.  The crop production system is highly labor concentrated and there is an plenty of labor in the country.  Through the production of the product the employment opportunity is increased in all the countries.  Producing the good product creates a great opportunity to attract the foreign investors.  Improvement of the effective distribution system can be done.  They can make survey to produce an effective product. Threats:  Hesitation in receiving fair prices  Most of the products are perishable. So it has to be preserved system is a problem.  Insufficiency of proper technology.  Want of mandatory capital.  Sold market share.  Key continued economic depression.  Reduces of customer for low quality of the product.
8 | P a g e Competitor’s Analysis Marico India Ltd governs over 70% of its income from wholesome oils and near about 20 % of its profits from hair oils. Saffola and Parachute amongst the famous brands has attained several comprehensive brands like Camelia, Aromatic and many more. Marico also provides skin care services through Kaya Clinics in India and UAE which adds to around 7% of its deal shares. Marico also has a solid supply system because of which it even had distribution privileges of some of the products of P&G (Marico, 2019) Some of the major competitors’ are- 1. Hindustan Unilever Limited (HUL) 2. Dabur India 3. Procter & Gamble Co. 4. Godrej Consumer 5. Colgate-Palmolive Some biggest rivals’ analysis has been done below- 1. In India, Hindustan Unilever Limited (HUL) being the biggest FMCG Company constitutes 13% of the industry and has high market capitalization with the best possible income turnover and excessive internet profits. It also has a market portfolio of 20 tremendous categories with a principal portion of the income coming mainly from soaps and detergents, personal goods and beverages (Marico, 2019). 2. Dabur India focuses on main consumer products of hair care, oral care, skin care and it has 5 flagship bands with separate brand names such as, Dabur and Vatika-Dabur that focuses on more on the healthy, natural products and Vatika for premium personal care. Additionally, it has a huge distribution system covering 2.8 million trade channels with high dispersion in both urban and rural marketplaces (Marico, 2019).
9 | P a g e 3. P&G Hygiene and Healthcare (PGHH) is a 69% holder of the FMCG chief - P&G, US. The two-product company is taking over the market strongly- 'Vicks' in the medical section and 'Whisper' in feminine care section. The company's parent has two other 100% holdings in India, which have recognized products in the shampoo segment (Head & Shoulders, Pantene, Rejoice) and detergents section (Ariel, Tide). The company's parent recently acquired the shaving products major, Gillette, and has ousted Unilever to take the topmost slot in the worldwide FMCG space (HYGIENE, 2019) 4. Godrej Consumer Products Ltd. (GCPL) mainly concentrates in personal wash sector through its (Cinthol, Fairglow, and Godrej No.1) soap products extended in to domestic goods in a large way in FY11 through the Sara Lee union. The company now grosses an ample 47% of internal returns from repellents and other home care goods while around 35% and 11% of sales are reaped from soaps and hair color sectors. GCPL has assimilated a number of foreign personal care varieties such as UK-based Keyline Products and South African hair colour brands Rapidol & Kinky, Pesticides Company Megasari founded in Indonesia, hair colour corporations Issue group & Argencos in Latin America & personal care firm Tura in Nigeria. Overseas sales account for 39% of consolidated sales (CONSUMER, 2019). 5. Colgate exists as oral care, personal care and household care items with solely oral care paying more than 90% to total takings. Colgate governs in this essential business with market stocks of 54.5% in toothpastes and 38.2% in toothbrushes. The establishment has harvested 26.2% share in the evolving mouthwash group. Personal care goods include shower creams, toilet soaps, fluid hand washes, shaving brushes & ointments sold typically under the Palmolive brand. In the household section, Colgate markets dish- washing cleansers under Axion brand (COLGATE, 2019). Corporate-Level Strategies Marico desire to try a new hat which committed itself to a different, more vibrant and personality. Marico Company known for its steadiness. Marico is a fast moving consumer goods industry. The products include like toiletries, soap, cosmetics, tooth cleaning, shaving products, detergents, personal care products like hair oil, deodorant, cooking oil, breakfast items , etc. In India Marico
10 | P a g e creates employments for more than 3 million people and also contributed to economy. India Forbes, E.C (2013, August) Marico Unique Paras strategy. Retrieved from www.forbesindia.com Mario first entered into oil market by agreement with boil for the use of its coconut oil brand parachute and vegetable oil Saffola. After that Marico made several acquisition. The most prominent amongst these is the acquisition of Procter and Gamblers anti-lice treatment. In 2001 Marico acquired the Parachute and Saffola brands from Boil. Marico value known as valued to goods provider to consumer. Marico joint venture and acquisitions with Hll, Adani and Sundari. Meet the growing demands of edible oil in India by sustained expansion in capacity. Horizontal integration: Marico first enter into skin care market and first acquisition in developed country. Marico ventured into skin care products in 2003 through its horizontal acquisition of 70.5%. Sundari is manufacturers of luxury ayurvedic product. Sundari embarked in USA by acquisition and spread to European cities as a specialized range of skin care products and popular ayurvedic skin care solution. Savant. K, Praha. J, Chattered. A, Harry. B. The Rise of Indian Multinationals. (2010). Acquisition: acquisition are the main drivers of its region and international expansion. Marico emphasis on growing fast or capture international market through acquisition. According to its chairman Marico focused on wellness or organic food and beauty care products in international market or to expand with variety of goods and services through acquisition. They captured most of the international market through acquisition for an example in Thailand, Malaysia, and Singapore. Marico has acquired with two hair care brands in Egypt. Further it has acquired with three Bangladeshi soap brands company and skin care brands Derma RX in Singapore via wholly owned subsidiary kaya LTD Marico recently acquired the Malaysian brand code 10. 85% of state in international costumers Product Corporation of Vietnam to expand its presence.
11 | P a g e Business-Level Strategies Marico has multiple brands under its umbrella since it launched its new product Hair & care in 1991, after its birth in 1990. Now it is operating in different category of beauty and wellness like hair care, skin care, edible oil, health food, male grooming and fabric care. At the same time it is operating in international market and doing business in emerging market of Asia and Africa like Bangladesh, Vietnam, Malaysia, Myanmar, South Africa, Mena etc. Some of its product are very premium like Hair & Care Fruit Oil, X-men range, Code 10, Caivil, Black Chic, Ingwe etc. and some are standard. And in the international market Marico offers localized product to fulfill the lifestyle of international customer. Segmentation strategy: Marico follows segmentation strategy and has different offerings for different segment. Marico offers many product under Saffola brand for people who constantly struggle to stay fit and adopt healthier habits to make their health journey enjoyable and easy. The brand Parachute advance inspires people to invest in relationship and step outside of self-doubt. Set Wet offers deodorants, gel, beard oil, hair wax for men who are attention seeker and X-Men, Marico’s premium Fragrance, for young people who want to be successful. Marico also offers anti hair fall for peoples concern of hair, Livon Serum for millennials girls who are highly conscious of their hair style and appearance. Basically Marico offers different type of product like hair oil, skin care, deodorants and foods etc. for different segments. Broad differentiation: Marico is good at differentiating its product from its competitors which is one of its distinctive competency. Some of its products are the market leader, like Nihar Shanti Amla Badam, Parachute Hair oil etc. as it provides the best quality. It also has some offering for premium segments and also offers localized product in the international market. Marico also ensures the availability of its products in the retail shop, for this they has very good distribution, which is one of its distinctive competency as well. Though Marico differentiates its products, but it is able to offer in low price. Being the market leader in many segment and as its segments are large enough Marico enjoys economies of scale that make it charge low price for quality product. So as Marico has these advantage it follows broad differentiation strategy for doing international business.
12 | P a g e Cost Leadership: Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness market. Marico’s products and services in hair care, skin care and healthy foods generated a turnover of about Rs.23.9 billion during 2008-09. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Medikar, Revive, Mahjal, Kaya, Aromatic, Fiancee, Hair Code, Cavil, Code 10 and Black Chic. Marico’s Brands And their extensions occupy leadership positions with significant market shares in most categories such as Coconut oil, Hair oils, Post wash hair care, Anti-lice Treatment, Premium refined edible oils, niche fabric care etc. Marico is low cost leader in these markets via these branded products. Price based competition is so severe that is a big. Competitive Advantage: Marico is committed to improving the quality of people’s lives through branded products and services providing the best user experience possible. With increasing popularity in skin care products and services and healthy foods, Marico sees an opportunity to create new business opportunities in skin and health care markets for the potential customers. The Company operates in two industries: Branded Products - the Fast Moving Consumer Goods (FMCG) industry and Branded Services (Skin Care Services industry). The FMCG industry has segments like Personal Care, Detergents and Soaps, Skin Care, Hair Care, Health and Hygiene Products, Oral Care, Refined Edible Oils, Coconut Oils, Dairy Products, Foods and Beverages etc. The FMCG industry is one of the largest in India, with an annual estimated turnover of Rs. 480,000 million. The organization is setting up a cell for examining information. As of now, Indian retail deals with a huge measure of information, which is not used to its maximum capacity. The organization in this way is banding together with new businesses, which could conceivably enable it to break down information significantly more adequately. The organization has perceived that purchaser conduct investigation is undeniably more valuable than directing reviews. As indicated by the board, loyalty programs will be offered on a lot bigger scale going ahead.Operates in geographic hubs leading to supply chain and media synergies.
13 | P a g e Functional-Level Strategies  Material procurement: Acquisition manages the sourcing exercises, arrangement and key determination of products and administrations, which are generally urgent to an organization. It is the most significant exercises in each assembling organization. The item quality relies upon great quality crude materials. On the off chance that the organizations guarantee the most elevated amount of crude materials so the association can make a respectable quality thing. Marico Bangladesh source a portion of their crude materials from outside nation like Japan, Chain, India, Vietnam and Malaysia. At the purpose of import, they are paying higher appraised obligation, VAT and Taxes which increments our costs and this is likewise a shortcoming. Marico guarantee top notch crude materials with the goal that they can provide best quality product for customers.  Human Resource Management: The Human Resources Department is the one wherein the planning and progression programs are completed. Alongside other HR abilities, arrangement and progression have become a basic portion. Those days passed when the planning was viewed as pointless, a pointless activity, resources and money. Nowadays, arrangement is hypothesis in light of the way that divisions, for instance, shows and organizations, HR, creation, reserves, and so on, rely upon readiness for their survival. Likewise, Marico is certain that the arrangement is a mind blowing organization and weapons against less productivity. Along these lines, to finish the fruitful HR activities of the official, the affiliation must have an incredible readiness and advance game plan to refresh the abilities and data of the agents as indicated by the requirements of the associations. This would induce the agents to satisfy the fates of the affiliation and, subsequently, to increment its element of work consistence. Already, the readiness and improvement program was utilized to concentrate basically on particular abilities for mechanical production system laborers or for individuals working for gathering associations. Nowadays, such particular readiness isn't sufficient. Associations must adjust to new mechanical changes, grow new components, give a prevalent nature of the executives and increment proficiency to remain forceful. Moreover, delegates need aptitudes in gathering development, fundamental initiative, correspondence, advancement, PC, and so forth. Likewise, now and again they should sit down with senior administration and perceive the significant abilities and figuring out how to accomplish the association's
14 | P a g e indispensable objectives and destinations. Now and again, the managers gain some ground for what's to come headway of the delegates. It is conceivable that these improvement activities won't support them in their current place of employment; however, later, these workers will become organizational advantages and will assume a crucial job to improve and expand the profitability of the organization.  Marketing: To accomplish an objective market, Marico utilizes three kinds of display channels. Marico employments correspondence channels to send and get messages from objective purchasers. The organization utilizes a few type of direct promoting, for example, individual selling, Catalog Marketing and phone advertising. Direct promoting results in progressively effective selling and lower cost, which change into lower cost for client, giving balanced with client. This enables the organization to respond promptly with interest. They fuse archives, magazines, programs, radio, TV, mail, phones, sees, flyers, CDs, sound tapes and Internet. Past this, the trades are transmitted through appearances and apparel, the nearness of purposes of offer and various techniques. Marico incorporates more and more trade channels to kill the most commonplace monolog channel.  Research and Development: Improved by proceeded with solid client request Marico contribute to innovative work to advance new plan, produce specific Architecture, fashioner, engineer and developing sustainable vitality. Marico innovative work encourages this soul all through the organization, guaranteeing inventive and creative new thoughts are actualized as fast and proficiently as could reasonably be expected, serving to give answers for the most basic difficulties. The center competency of Marico Group has consistently been the creative innovation, item quality and predominant client administration.  Operation: Marico extends proficiency in a couple of zones of decision assignments with officials with the assistance of fundamental developments that meet up as increments in contention really taking shape of neighborhoods. This piece of the office decreases by and large spending by changing resources and efficiency, improving quality with inexhaustible data and recognizable information and quickening creation by controlling the execution of transportation on schedule and responding in a perfect world and spryly. Marico applies an assortment of approaches, vital systems proper for their organizations and unmistakable
15 | P a g e markets. Plan of Goods and Administrations, Total Quality Management, Process and Capacity Design, Job Design and Human Resources, Production network the board, Inventory Management, Scheduling, and Maintenance are the few choice zones of Marico Operations Management Recommendations  Offer “PAAHO” as a world-class customized hair-care solution.  Leverage the brand name Kaya to advertise by word of mouth the brand PAAHO to its customers.  Portray the brand PAAHO as a daily hair care product to control the hair fall and provide long, thick and beautiful hair.  Participation in trade fairs to create and advertise on an effective stand design for the product PAAHO.  The IITF (Indian International Trade Fair) has emerged as the largest consumer goods fair in the sun-continent, so the product can be placed as an Ayurveda product to control hair fall.  The trade fair will also provide a place for mass advertisement and product promotions.  Marico should invest more in the R&D department for acquiring the customer needs more precisely and take steps according to their wants and demands.
16 | P a g e References 1. MArico, C. (2019). Competitor analysis - MArico - docshare.tips. Retrieved 14 August 2019, from http://docshare.tips/competitor-analysis-marico_587c3729b6d87fb5398b5360.html 2. Marico SWOT Analysis | Competitors & USP | BrandGuide | MBA Skool-Study.Learn.Share. (2019). Retrieved 14 August 2019, from https://www.mbaskool.com/brandguide/fmcg/1486- marico.html 3. HYGIENE, M. (2019). Compare Marico Ltd with P&G Hygiene - Equitymaster. [online] Equitymaster.com. Available at: https://www.equitymaster.com/stock-research/compare/MRCO- PROC/Compare-MARICO-PG-HYGIENE?utm_source=compare-company- page&utm_medium=website&utm_campaign=dropdown&utm_content=change-company [Accessed 14 Aug. 2019] 4. CONSUMER, M. (2019). Compare Marico Ltd with Godrej Consumer - Equitymaster. [online] Equitymaster.com. Available at: https://www.equitymaster.com/stock-research/compare/MRCO- GDCN/Compare-MARICO-GODREJ-CONSUMER [Accessed 14 Aug. 2019]. 5. COLGATE, M. (2019). Compare Marico Ltd with Colgate - Equitymaster. Retrieved 14 August 2019, from https://www.equitymaster.com/stock-research/compare/MRCO-COLG/Compare- MARICO-COLGATE?utm_source=compare-company- page&utm_medium=website&utm_campaign=dropdown&utm_content=change-company. 6. Business Opportunities in India: Investment Ideas, Industry Research, Reports. Retrieved from https://www.ibef.org/ 7. HUL - MARICO. Retrieved from https://www.equitymaster.com/stock-research/compare/HLL- MRCO/Compare-HUL-MARICO 8. Hussain_Kagzi. (2018, June 26). The David versus Goliath Battle of Marico and Hindustan Lever. Retrieved from https://community.intelligentfanatics.com/t/the-david-versus-goliath-battle-of- marico-and-hindustan-lever/1218 9. Marico Limited. Retrieved from https://marico.com/bangladesh 10. Retrieved from https://www.rediff.com/money/2008/dec/09the-secret-of-marico-success.htm 11. MARICO LIMITED LTD. Retrieved from http://w239081.company.weiku.com/product/ 12. Retrieved from https://quotes.wsj.com/BD/XDHA/MARICO/financials/annual/income-statement 13. (2013, March 7). Report on Marketing effectiveness of Marico Bangladesh. Retrieved from https://www.assignmentpoint.com/business/report-on-marketing-effectiveness-of-marico- bangladesh.html
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FINAL_MGT489_2.pdf.pdf

  • 1. Name ID SAMIUR RAHMAN 1431196030 ANZEER BINTE MUSTAFIZ 1431225030 ERTIFA TASNIM 1510673630 SADMAN YASIR 1512374030 TABASSUM TAZRIN KABIR NIKITA 1530109630 Md. JUNAYED AMIN SHUVO 1610464030 Md. OSMAN HOSSAIN SHAFIM 1620860030 NAFIUL ISLAM 1621249030 AHMED HOSSAIN 1631815600 MRIDUL SAHA 1711627030 FINALREPORT MGT489.1 Submitted to Samuel Mursalin (SMM4) Lecturer Department of Management North South University Submitted by
  • 2. Acknowledgement We are indebted to many people for providing us encouragement and support during our learning and working while making this report. We are very much grateful to Mr. Samuel Mursalin, our respected course instructor of MGT489 who assigned us this challenging work. He always guided us to take and overcome this challenge successfully. Without his help in every step it was quite impossible for us to finish this report properly in time. At every moment we remember all of our classmates who really encouraged us in every stage of this project with their support which really helped us a lot. Also we are grateful to all the fellows who provided us with their utmost effort. Without their help it would not have been at all possible. They have provided with all the information and also supported us a lot.
  • 3. August 22, 2019 Mr. Samuel Mursalin Lecturer, Department of Management School of Business and Economics North South University, Dhaka. Subject: Letter of Transmittal for submitting the report on MARICO. Dear Sir, We have worked on “MARICO” which was given by you. This report has given us the opportunity to think realistically and work as a team to find out creative idea and solution. Thank you Sir for assigning us with such a brand like this. It is great pleasure to accomplish and submit report before you for your kind evaluation and necessary action. Sincerely yours, SAMIUR RAHMAN ANZEER BINTE MUSTAFIZ ERTIFA TASNIM SADMAN YASIR TABASSUM TAZRIN KABIR NIKITA Md. JUNAYED AMIN SHUVO Md. OSMAN HOSSAIN SHAFIM NAFIUL ISLAM AHMED HOSSAIN MRIDUL SAHA
  • 4. Table of Contents Company Overview................................................................................1 Detailed Description of the line of Businesses ......................................3 Company Analysis SWOT .......................................................................5 Competitor’s Analysis ............................................................................8 Corporate-Level Strategies.....................................................................9 Business-Level Strategies.....................................................................11 Functional-Level Strategies..................................................................13 Recommendations ...............................................................................15 References............................................................................................16
  • 5. 1 | P a g e Company Overview Marico Limited is an Indian consumer goods company providing consumer products and services in the areas of Health and Beauty based in Mumbai. During 2015, the company generated a turnover of Rs. 5,733 crore. In 2018 the company generated a turnover of ₹.6300 crore. Marico has 8 factories in India located at Pondicherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib. In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary. Its manufacturing facility is located at Shirirchala, in Dhaka Division. Marico Bangladesh Limited (hereinafter referred to as MBL), a wholly owned subsidiary of Marico Limited, India, (hereinafter referred to as Marico), is one of the front footer in the Fast Moving Consumer Goods (FMCG) market in Bangladesh. It was incorporated on 6 September, 1999 under the Companies Act 1994 as a private limited company with an authorized and paid-up capital of Tk. 10.00 million and went into commercial operation on 30 January 2000 with its flagship brand “Parachute Coconut Oil”. However, it has increased Authorized and Paid-up Capital to Tk. 300 Million and Tk. 90 Million respectively on 18 September 2008 and converted into a public limited company on 21 September 2008. Again it has increased authorized and paid- up capital to Tk. 400 million and Tk. 283.50 million vide special resolution passed in the extra ordinary general meeting held on 31 December 2008. Within a couple of years Parachute Coconut oil captured a significant market share in Bangladesh and at present it holds 72% market share of branded coconut oil market in the country. Recently its “Parachute” brand was awarded as the 6th Overall Best Trusted Brand out of 849 Brands (both local and MNCs) operating in Bangladesh and 3rd Best Brand in the FMCG category by Bangladesh Brand Forum, an affiliation of Singapore based Brand Forum. The organisation holds a number of brands including Kaya Limited, Parachute, Saffola, Hair&Care, Nihar, Mediker, Revive, Manjal, Livon, Set Wet, Zatak, Fiancee, HairCode, Eclipse, X-Men, Hercules, Caivil, Code 10 and Black Chic. Marico's brands and their extensions occupy leadership positions with significant market shares in a number of health and beauty areas. Marico has a significant presence in Bangladesh, South East Asia, Middle East, Egypt and South Africa. Marico reported a net profit of Rs 573 Crore in 2014-15. Indian expatriates in the Middle East had
  • 6. 2 | P a g e been smuggling Parachute oil with them for their daily use when export of the oil was restricted prior to the 1991 economic liberalization. Marico decided to try to sell products in that market after liberalization, but found that Arab customers did not like the scent of coconut, wanted a less sticky hair product, and needed a product to counteract the high level of chlorination in their water. When Marico reformulated its product, its market share in the Middle East grew from 2% in 2002 to more than 20% by 2008. Marico's sustainable growth story rests on an empowering work culture that encourages our members to take complete ownership and make a difference to the entire business ecosystem. Marico Bangladesh Limited (MBL) has tripled its turnover in 3 years, and achieved what very few FMCG companies would have been able to pull off-37.71% compounded annual growth over past 8 years. By looking beyond the traditional FMCG space and seeking focused avenues for growth. Transforming consumers from non-branded to branded coconut oil offering purity. From a small player to a 3rd largest FMCG multinational company. Marico Ltd. Did not just focus not on organic growth but also in-organic growth. Their large investment in brand building, 360 degree approach in marketing and expansion in distribution too has contributed rapid growth. Today, Marico Bangladesh Limited has emerged as the fastest growing FMCG Company. Their approach to the market with uncommon sense has helped us challenge the norm to push the boundaries of our existing businesses and set up new ones. By tapping into the minds of consumers and gaining a deeper insightful understanding of what they really seek, Marico Ltd. able to identify opportunities and create categories where none exist. With their acquisitions they demonstrated an entrepreneurial leap into larger FMCG categories. The success key of Marico Ltd is Continuous improvement of performance standards and capability building for sustained long-term success. Their thinking is always customer centric.
  • 7. 3 | P a g e Marico Company Analysis Detailed Descriptions of the line of Businesses In recent times, Marico can be marked as one of the India’s leading company. It has its core focus on delivering leading Consumer Products and Services; it mainly has its concentration in the beauty and wellness segment of the market. They tend to do business in such a way so that it enhances and creates a difference in both their internal and external stakeholders’ interest at a larger scale. Taking into account Marico’s business model, it mainly highlights on focus growth including all the brands it holds under its umbrella, whether it is related or unrelated diversification. Marico aims in constantly improving the value proposition it promised on delivering to its consumers. Economics of scale is another benchmark that Marico always tries to keep a foot in; market expansion and the reach of retailer are the key areas where they want to hold onto their interest as much as possible as these at the end helps them to reduce the cost structure. This lead Marico to expand, and currently they are operating in more than 25 countries. The list does not includes the developed countries but also many emerging markets in Asia and Africa. In many cases, marked as First-Mover, helping them to stay above from their competitors by the cost advantage that a First-Mover holds. Marico has a wide range of products/ services, it has sustainably has multiple brands. The lists is stated below,  Marico’s Indian business markets consists of brands such as Parachute, Parachute Advance, Hair & Care, Nihar, Nihar Naturals, Livon, Saffola, Set Wet and Mediker.  The International business offers unique brands such as Parachute, HairCode, Hercules, Fiancée, Caivil, X-Men, Black Chic, Code 10, Ingwe and Thuan Phat that are localized to fulfil the lifestyle needs of international consumers. Marico’s annual turnover in the year 2016-17 was INR 25,000 crore, “Be more everyday” is the tagline of the company.
  • 8. 4 | P a g e While keeping the attention in focused growth, Marico targets to be known as the Market Leader. It is not only focusing to be the leader in only one segment, rather aims to be the leader in each of the businesses it is currently working in. It plans in doing so by understanding the needs and wants of consumers at the very level best, setting new benchmarks in ensuring quality of Products and Services through the process of continuous learning and innovating every now and then. The concept of “Feedback Loop” is something that is inherited in Marico’s Culture, making sure the alignment of the Business Model in every aspect is always in the right track. Market surveys and understanding the needs and wants of the customers precisely is highly highlighted in Marico’s Culture. The company itself consists of a wide range of products as stated above, it is nothing but reaching out and creating such a market place so that even with one product/ service it can target multiple customer groups reflecting on their income level. It is more important to keep customers belonging from high-end to low-end, to make them stay under their umbrella. Below is a list of Brands that Marico holds: PRODUCTS BRANDS Coconut Oils Parachute Edible Oils Saffola Hair Oils Hair & Care Fabric Care Products Nihar Healthy Foods Shanti Soaps Mediker Baby Care Products Revive Male Grooming Products Manjal Female Beauty Care Products Setwet, Zatak, Livon, Kaya Table 1: Product Lines of Marico
  • 9. 5 | P a g e The different brands that Marico holds fall under different pricing model, trying to reach more and more markets. Changing the quality, ingredients, materials used in making the same product in order to ensure that it goes hand in hand in the “International Market” as well as catching new customer group. Customer-Value lifetime is another issue that made what Marico is today. The concept of retaining customers as much as possible is a trigger factor for Marico. The Product Bundling offers, discounts all made Marico grow with its wide range of products.  Parachute is the most satisfied Brand/ Product, followed by Saffola, Silk & Shine Hair & Care, and Sweekar Edible Oil & after Shower Gel. Company Analysis SWOT SWOT analysis involves an examination of a firm’s strength, weakness opportunities, and threats. It helps to guage firm’s ways to take advantage of its competitive benefits or defend against its weakness. Strength and weakness involve characteristic the firm’s internal talents or lack thence. Opportunities and threat include external state of affairs like competitive forces discovery and development of latest technologies, government laws and domestic and international economic trends. The strengths of a corporation offer the firm a comparative advantage within the market place. Perceived strength will embody sensible client service or robust money resources. To remain strength they need to still be developed, maintained and defended through prudent capital investment policies. Weakness result once competitors have probably exploitable benefits over the firm. Once weaknesses ar known, the firm will choose ways to mitigate or correct the weakness. Opportunities or environmental factors that favor the firm will embrace a growing marketplace for the firm’s merchandise, shrinking competition favorable rate of exchange shifts a money community that has confidence within the outlook for the trade or firm or identification of a replacement market or product section. Threats ar environmental factors that may hinder the firm in achieving its goals. it'd embrace a fastness domestic economy, extra government regulation a rise in trade competition, threat of entry , patrons or suppliers, seeking to extend their negotiation
  • 10. 6 | P a g e power or new technology that may absolute the industry’ s product. Now we discussed the SWOT analysis on the concept of our MARICO Company. At first, we describe about strength of the company and so on. Strength:  Brand image: Firstly, MARICO has stayed in the local market in Bangladesh and also in many other different countries for many years. So, they are so experienced and positioned in people’s mind deeply. Every customer in all countries is aware of MARICO. MARICO portrays different kinds of products which are already exist in the market and people love it. So, there is strong brand favorite for MARICO over other substitutes in the mind of a huge amount of consumers in the local market.  Superior quality control measures: MARICO keeps and controls the higher quality of the product. It is the policy of farming marketing company limited to market products of dependable quality at home and abroad as per would standards formed by in agreement with good trade practices.  Integrity: MARICO believes success depends upon the standard and worth of their merchandise by providing a secure, wholesome economically economical and healthy surroundings for his or her customers and by providing a good come to their investors whereas maintaining the best standards of integrity.  Market share: Variety of the products leads in the share market and increasing the market share.  Customer satisfaction: MARICO exist in the market, means customer will consume their product. They launch variety of their product and the price of the product is measurable. So, the customer is well satisfied with the product. Weaknesses: Limited decision taking capacity: The Company is existing under the rules and regulation of corporate company. So, they cannot take the large decision because they do not have that power. Price disadvantage: Expensive raw material leads to sometime difference in price of products. Price of the raw material which is the key ingredient of their product line, is comparatively
  • 11. 7 | P a g e expensive than that of their competitors in the local markets especially the emerging ones. So, this makes their product a high cost then most of their competitors. Consumption per capita: For example: - Bangladesh has the lowest per capita consumption in the world. So upper class and middle class can bear the MARICO product but the lower-class people cannot bear it. Lack of geographical coverage: Due to lack of communication the company cannot reach to the geographical zone to produce the product in a low price. Opportunities:  The agriculture sector is the major sponsor to GDP. So, MARICO produced canned fruit and vegetables, mushrooms etc.  The crop production system is highly labor concentrated and there is an plenty of labor in the country.  Through the production of the product the employment opportunity is increased in all the countries.  Producing the good product creates a great opportunity to attract the foreign investors.  Improvement of the effective distribution system can be done.  They can make survey to produce an effective product. Threats:  Hesitation in receiving fair prices  Most of the products are perishable. So it has to be preserved system is a problem.  Insufficiency of proper technology.  Want of mandatory capital.  Sold market share.  Key continued economic depression.  Reduces of customer for low quality of the product.
  • 12. 8 | P a g e Competitor’s Analysis Marico India Ltd governs over 70% of its income from wholesome oils and near about 20 % of its profits from hair oils. Saffola and Parachute amongst the famous brands has attained several comprehensive brands like Camelia, Aromatic and many more. Marico also provides skin care services through Kaya Clinics in India and UAE which adds to around 7% of its deal shares. Marico also has a solid supply system because of which it even had distribution privileges of some of the products of P&G (Marico, 2019) Some of the major competitors’ are- 1. Hindustan Unilever Limited (HUL) 2. Dabur India 3. Procter & Gamble Co. 4. Godrej Consumer 5. Colgate-Palmolive Some biggest rivals’ analysis has been done below- 1. In India, Hindustan Unilever Limited (HUL) being the biggest FMCG Company constitutes 13% of the industry and has high market capitalization with the best possible income turnover and excessive internet profits. It also has a market portfolio of 20 tremendous categories with a principal portion of the income coming mainly from soaps and detergents, personal goods and beverages (Marico, 2019). 2. Dabur India focuses on main consumer products of hair care, oral care, skin care and it has 5 flagship bands with separate brand names such as, Dabur and Vatika-Dabur that focuses on more on the healthy, natural products and Vatika for premium personal care. Additionally, it has a huge distribution system covering 2.8 million trade channels with high dispersion in both urban and rural marketplaces (Marico, 2019).
  • 13. 9 | P a g e 3. P&G Hygiene and Healthcare (PGHH) is a 69% holder of the FMCG chief - P&G, US. The two-product company is taking over the market strongly- 'Vicks' in the medical section and 'Whisper' in feminine care section. The company's parent has two other 100% holdings in India, which have recognized products in the shampoo segment (Head & Shoulders, Pantene, Rejoice) and detergents section (Ariel, Tide). The company's parent recently acquired the shaving products major, Gillette, and has ousted Unilever to take the topmost slot in the worldwide FMCG space (HYGIENE, 2019) 4. Godrej Consumer Products Ltd. (GCPL) mainly concentrates in personal wash sector through its (Cinthol, Fairglow, and Godrej No.1) soap products extended in to domestic goods in a large way in FY11 through the Sara Lee union. The company now grosses an ample 47% of internal returns from repellents and other home care goods while around 35% and 11% of sales are reaped from soaps and hair color sectors. GCPL has assimilated a number of foreign personal care varieties such as UK-based Keyline Products and South African hair colour brands Rapidol & Kinky, Pesticides Company Megasari founded in Indonesia, hair colour corporations Issue group & Argencos in Latin America & personal care firm Tura in Nigeria. Overseas sales account for 39% of consolidated sales (CONSUMER, 2019). 5. Colgate exists as oral care, personal care and household care items with solely oral care paying more than 90% to total takings. Colgate governs in this essential business with market stocks of 54.5% in toothpastes and 38.2% in toothbrushes. The establishment has harvested 26.2% share in the evolving mouthwash group. Personal care goods include shower creams, toilet soaps, fluid hand washes, shaving brushes & ointments sold typically under the Palmolive brand. In the household section, Colgate markets dish- washing cleansers under Axion brand (COLGATE, 2019). Corporate-Level Strategies Marico desire to try a new hat which committed itself to a different, more vibrant and personality. Marico Company known for its steadiness. Marico is a fast moving consumer goods industry. The products include like toiletries, soap, cosmetics, tooth cleaning, shaving products, detergents, personal care products like hair oil, deodorant, cooking oil, breakfast items , etc. In India Marico
  • 14. 10 | P a g e creates employments for more than 3 million people and also contributed to economy. India Forbes, E.C (2013, August) Marico Unique Paras strategy. Retrieved from www.forbesindia.com Mario first entered into oil market by agreement with boil for the use of its coconut oil brand parachute and vegetable oil Saffola. After that Marico made several acquisition. The most prominent amongst these is the acquisition of Procter and Gamblers anti-lice treatment. In 2001 Marico acquired the Parachute and Saffola brands from Boil. Marico value known as valued to goods provider to consumer. Marico joint venture and acquisitions with Hll, Adani and Sundari. Meet the growing demands of edible oil in India by sustained expansion in capacity. Horizontal integration: Marico first enter into skin care market and first acquisition in developed country. Marico ventured into skin care products in 2003 through its horizontal acquisition of 70.5%. Sundari is manufacturers of luxury ayurvedic product. Sundari embarked in USA by acquisition and spread to European cities as a specialized range of skin care products and popular ayurvedic skin care solution. Savant. K, Praha. J, Chattered. A, Harry. B. The Rise of Indian Multinationals. (2010). Acquisition: acquisition are the main drivers of its region and international expansion. Marico emphasis on growing fast or capture international market through acquisition. According to its chairman Marico focused on wellness or organic food and beauty care products in international market or to expand with variety of goods and services through acquisition. They captured most of the international market through acquisition for an example in Thailand, Malaysia, and Singapore. Marico has acquired with two hair care brands in Egypt. Further it has acquired with three Bangladeshi soap brands company and skin care brands Derma RX in Singapore via wholly owned subsidiary kaya LTD Marico recently acquired the Malaysian brand code 10. 85% of state in international costumers Product Corporation of Vietnam to expand its presence.
  • 15. 11 | P a g e Business-Level Strategies Marico has multiple brands under its umbrella since it launched its new product Hair & care in 1991, after its birth in 1990. Now it is operating in different category of beauty and wellness like hair care, skin care, edible oil, health food, male grooming and fabric care. At the same time it is operating in international market and doing business in emerging market of Asia and Africa like Bangladesh, Vietnam, Malaysia, Myanmar, South Africa, Mena etc. Some of its product are very premium like Hair & Care Fruit Oil, X-men range, Code 10, Caivil, Black Chic, Ingwe etc. and some are standard. And in the international market Marico offers localized product to fulfill the lifestyle of international customer. Segmentation strategy: Marico follows segmentation strategy and has different offerings for different segment. Marico offers many product under Saffola brand for people who constantly struggle to stay fit and adopt healthier habits to make their health journey enjoyable and easy. The brand Parachute advance inspires people to invest in relationship and step outside of self-doubt. Set Wet offers deodorants, gel, beard oil, hair wax for men who are attention seeker and X-Men, Marico’s premium Fragrance, for young people who want to be successful. Marico also offers anti hair fall for peoples concern of hair, Livon Serum for millennials girls who are highly conscious of their hair style and appearance. Basically Marico offers different type of product like hair oil, skin care, deodorants and foods etc. for different segments. Broad differentiation: Marico is good at differentiating its product from its competitors which is one of its distinctive competency. Some of its products are the market leader, like Nihar Shanti Amla Badam, Parachute Hair oil etc. as it provides the best quality. It also has some offering for premium segments and also offers localized product in the international market. Marico also ensures the availability of its products in the retail shop, for this they has very good distribution, which is one of its distinctive competency as well. Though Marico differentiates its products, but it is able to offer in low price. Being the market leader in many segment and as its segments are large enough Marico enjoys economies of scale that make it charge low price for quality product. So as Marico has these advantage it follows broad differentiation strategy for doing international business.
  • 16. 12 | P a g e Cost Leadership: Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness market. Marico’s products and services in hair care, skin care and healthy foods generated a turnover of about Rs.23.9 billion during 2008-09. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Medikar, Revive, Mahjal, Kaya, Aromatic, Fiancee, Hair Code, Cavil, Code 10 and Black Chic. Marico’s Brands And their extensions occupy leadership positions with significant market shares in most categories such as Coconut oil, Hair oils, Post wash hair care, Anti-lice Treatment, Premium refined edible oils, niche fabric care etc. Marico is low cost leader in these markets via these branded products. Price based competition is so severe that is a big. Competitive Advantage: Marico is committed to improving the quality of people’s lives through branded products and services providing the best user experience possible. With increasing popularity in skin care products and services and healthy foods, Marico sees an opportunity to create new business opportunities in skin and health care markets for the potential customers. The Company operates in two industries: Branded Products - the Fast Moving Consumer Goods (FMCG) industry and Branded Services (Skin Care Services industry). The FMCG industry has segments like Personal Care, Detergents and Soaps, Skin Care, Hair Care, Health and Hygiene Products, Oral Care, Refined Edible Oils, Coconut Oils, Dairy Products, Foods and Beverages etc. The FMCG industry is one of the largest in India, with an annual estimated turnover of Rs. 480,000 million. The organization is setting up a cell for examining information. As of now, Indian retail deals with a huge measure of information, which is not used to its maximum capacity. The organization in this way is banding together with new businesses, which could conceivably enable it to break down information significantly more adequately. The organization has perceived that purchaser conduct investigation is undeniably more valuable than directing reviews. As indicated by the board, loyalty programs will be offered on a lot bigger scale going ahead.Operates in geographic hubs leading to supply chain and media synergies.
  • 17. 13 | P a g e Functional-Level Strategies  Material procurement: Acquisition manages the sourcing exercises, arrangement and key determination of products and administrations, which are generally urgent to an organization. It is the most significant exercises in each assembling organization. The item quality relies upon great quality crude materials. On the off chance that the organizations guarantee the most elevated amount of crude materials so the association can make a respectable quality thing. Marico Bangladesh source a portion of their crude materials from outside nation like Japan, Chain, India, Vietnam and Malaysia. At the purpose of import, they are paying higher appraised obligation, VAT and Taxes which increments our costs and this is likewise a shortcoming. Marico guarantee top notch crude materials with the goal that they can provide best quality product for customers.  Human Resource Management: The Human Resources Department is the one wherein the planning and progression programs are completed. Alongside other HR abilities, arrangement and progression have become a basic portion. Those days passed when the planning was viewed as pointless, a pointless activity, resources and money. Nowadays, arrangement is hypothesis in light of the way that divisions, for instance, shows and organizations, HR, creation, reserves, and so on, rely upon readiness for their survival. Likewise, Marico is certain that the arrangement is a mind blowing organization and weapons against less productivity. Along these lines, to finish the fruitful HR activities of the official, the affiliation must have an incredible readiness and advance game plan to refresh the abilities and data of the agents as indicated by the requirements of the associations. This would induce the agents to satisfy the fates of the affiliation and, subsequently, to increment its element of work consistence. Already, the readiness and improvement program was utilized to concentrate basically on particular abilities for mechanical production system laborers or for individuals working for gathering associations. Nowadays, such particular readiness isn't sufficient. Associations must adjust to new mechanical changes, grow new components, give a prevalent nature of the executives and increment proficiency to remain forceful. Moreover, delegates need aptitudes in gathering development, fundamental initiative, correspondence, advancement, PC, and so forth. Likewise, now and again they should sit down with senior administration and perceive the significant abilities and figuring out how to accomplish the association's
  • 18. 14 | P a g e indispensable objectives and destinations. Now and again, the managers gain some ground for what's to come headway of the delegates. It is conceivable that these improvement activities won't support them in their current place of employment; however, later, these workers will become organizational advantages and will assume a crucial job to improve and expand the profitability of the organization.  Marketing: To accomplish an objective market, Marico utilizes three kinds of display channels. Marico employments correspondence channels to send and get messages from objective purchasers. The organization utilizes a few type of direct promoting, for example, individual selling, Catalog Marketing and phone advertising. Direct promoting results in progressively effective selling and lower cost, which change into lower cost for client, giving balanced with client. This enables the organization to respond promptly with interest. They fuse archives, magazines, programs, radio, TV, mail, phones, sees, flyers, CDs, sound tapes and Internet. Past this, the trades are transmitted through appearances and apparel, the nearness of purposes of offer and various techniques. Marico incorporates more and more trade channels to kill the most commonplace monolog channel.  Research and Development: Improved by proceeded with solid client request Marico contribute to innovative work to advance new plan, produce specific Architecture, fashioner, engineer and developing sustainable vitality. Marico innovative work encourages this soul all through the organization, guaranteeing inventive and creative new thoughts are actualized as fast and proficiently as could reasonably be expected, serving to give answers for the most basic difficulties. The center competency of Marico Group has consistently been the creative innovation, item quality and predominant client administration.  Operation: Marico extends proficiency in a couple of zones of decision assignments with officials with the assistance of fundamental developments that meet up as increments in contention really taking shape of neighborhoods. This piece of the office decreases by and large spending by changing resources and efficiency, improving quality with inexhaustible data and recognizable information and quickening creation by controlling the execution of transportation on schedule and responding in a perfect world and spryly. Marico applies an assortment of approaches, vital systems proper for their organizations and unmistakable
  • 19. 15 | P a g e markets. Plan of Goods and Administrations, Total Quality Management, Process and Capacity Design, Job Design and Human Resources, Production network the board, Inventory Management, Scheduling, and Maintenance are the few choice zones of Marico Operations Management Recommendations  Offer “PAAHO” as a world-class customized hair-care solution.  Leverage the brand name Kaya to advertise by word of mouth the brand PAAHO to its customers.  Portray the brand PAAHO as a daily hair care product to control the hair fall and provide long, thick and beautiful hair.  Participation in trade fairs to create and advertise on an effective stand design for the product PAAHO.  The IITF (Indian International Trade Fair) has emerged as the largest consumer goods fair in the sun-continent, so the product can be placed as an Ayurveda product to control hair fall.  The trade fair will also provide a place for mass advertisement and product promotions.  Marico should invest more in the R&D department for acquiring the customer needs more precisely and take steps according to their wants and demands.
  • 20. 16 | P a g e References 1. MArico, C. (2019). Competitor analysis - MArico - docshare.tips. Retrieved 14 August 2019, from http://docshare.tips/competitor-analysis-marico_587c3729b6d87fb5398b5360.html 2. Marico SWOT Analysis | Competitors & USP | BrandGuide | MBA Skool-Study.Learn.Share. (2019). Retrieved 14 August 2019, from https://www.mbaskool.com/brandguide/fmcg/1486- marico.html 3. HYGIENE, M. (2019). Compare Marico Ltd with P&G Hygiene - Equitymaster. [online] Equitymaster.com. Available at: https://www.equitymaster.com/stock-research/compare/MRCO- PROC/Compare-MARICO-PG-HYGIENE?utm_source=compare-company- page&utm_medium=website&utm_campaign=dropdown&utm_content=change-company [Accessed 14 Aug. 2019] 4. CONSUMER, M. (2019). Compare Marico Ltd with Godrej Consumer - Equitymaster. [online] Equitymaster.com. Available at: https://www.equitymaster.com/stock-research/compare/MRCO- GDCN/Compare-MARICO-GODREJ-CONSUMER [Accessed 14 Aug. 2019]. 5. COLGATE, M. (2019). Compare Marico Ltd with Colgate - Equitymaster. Retrieved 14 August 2019, from https://www.equitymaster.com/stock-research/compare/MRCO-COLG/Compare- MARICO-COLGATE?utm_source=compare-company- page&utm_medium=website&utm_campaign=dropdown&utm_content=change-company. 6. Business Opportunities in India: Investment Ideas, Industry Research, Reports. Retrieved from https://www.ibef.org/ 7. HUL - MARICO. Retrieved from https://www.equitymaster.com/stock-research/compare/HLL- MRCO/Compare-HUL-MARICO 8. Hussain_Kagzi. (2018, June 26). The David versus Goliath Battle of Marico and Hindustan Lever. Retrieved from https://community.intelligentfanatics.com/t/the-david-versus-goliath-battle-of- marico-and-hindustan-lever/1218 9. Marico Limited. Retrieved from https://marico.com/bangladesh 10. Retrieved from https://www.rediff.com/money/2008/dec/09the-secret-of-marico-success.htm 11. MARICO LIMITED LTD. Retrieved from http://w239081.company.weiku.com/product/ 12. Retrieved from https://quotes.wsj.com/BD/XDHA/MARICO/financials/annual/income-statement 13. (2013, March 7). Report on Marketing effectiveness of Marico Bangladesh. Retrieved from https://www.assignmentpoint.com/business/report-on-marketing-effectiveness-of-marico- bangladesh.html
  • 21. 17 | P a g e