Parachute Hair Oil

Overview of Marico Ltd.

Marico is one the leading company in FMCG sector incepted in year 1988. The company has created one of biggest brands in India. Every month ,over 70 million packs from Marico reach approximately 130 million consumers in about 23 million households through a widespread distribution network of more than 2.5 Million outlets in India and overseas.Marico Limited is engaged in the business of branded consumer products and services. The Company operates in two segments: Consumer Products and Others. Its Consumer Products include Coconut oils, other edible oils, hair oils and other hair care products, male grooming products, fabric care products, healthy foods, soaps, health care products and female beauty care products. Others segment is engaged in skin care. In India, it manufactures and markets products under the brands, such as Parachute, Nihar, Saffola, Hair & Care, Revive, Shanti, Oil of Malabar, Mediker and Manjal. Its international portfolio includes brands, such as Fiancee, HairCode, Camelia, Aromatic, Caivil, Hercules, Black Chic, Ingwe, Code 10, X-men, L’Ovite and ThuanPhat. It is present in Skin Care solutions business under the brand name Kaya in India and international markets and the brand Derma Rx in Singapore and Malaysia. On May 29, 2012, the Company acquired Halite Personal Care India Private Limited.

1 | P a g eS. R. Luthra Institute Of Management

History of Marico Ltd.

1988- The Comp. was incorporated on 13th October, under the name of Marico

Foods limited It obtained the Certificate of commencement of business on 22nd November.

- The Comp. is engaged in the business of manufacture & marketing of branded personal care products, edible oils, fabric care products and processed foods. The Company products are sold under the brand names Parachute, Saffola, Sweekar, Marico Hair and Care, Revive and Sil.

1989- The name of Comp. was changed to Marico Industries Limited w.e.f. 31st

October.- In December, the Comp. entered into an agreement with M/s. Rasoi Industries

Limited for purchase of its unit located at M.I.D.C. Industrial Estate, Jalgaon.

1990- The Comp. entered into a Registered Users Agreement dated 26th September,

with BOIL for use of brands 'Parachute' and 'Saffola' for an initial period of 3 years commencing from 1st April.

1993- The Comp. established a new plant at Kanjikode, Palghat District, Kerala to

manufacture Parachute Coconut Oil. This plant with capacity of 24000 tons of coconut oil per annum began commercial operation in May.

- The products Parachute Coconut Oil, Saffola&Sweekar are manufactured at the Company factories. The products Marico Hair & Care, Revive Instant Starch, Parachute Amla& Parachute Herbal are manufactured on job work basis as per the Company quality specifications & under the brand names of Company.

- The Comp. has two SSI Units namely M/s. Amardeo Plastic Industries having its factory at Mumbai.

- The SIL range of jams & food products are manufactured by Kanmoor Foods Limited [KFLs] & marketed by Company.

- Saffola won the Most Outstanding `Brand of Year' Award instituted by the Advertising Club of Mumbai.

1994- Agreements dated 21nd February 1994 & 16th November 1995 between the

Comp. & The Bombay Oil Industries limited for using the Trademark 'Parachute' &Saffola'.

1995


- The Comp. has acquired the Brand `SIL' from KFL in March for an aggregate consideration of Rupees Three crores.

1996- Memorandum of Understanding dated 2nd January, between the Company

and Karvy Consultants limited agreeing to act as Registrars to the Issue.- In March, the Comp. made a fresh issue of 10,00,000 equity shares of Rs.10/-

each, at a premium of Rs.165/- per share, simultaneously with an offer for sale by promoters of 26,25,000 equity shares of Rs.10/- each, at a premium of Rs.165/- per share.

- The Comp. decided to leverage on the strong equity of Parachute brand through appropriate extensions. Accordingly, `Parachute Herbal' was launched.

- The Total Quality Movement within the Comp. has gathered speed and now embraces virtually all locations.

- The Comp. has made major investments in information technology, a process which began four years ago. Presently, all the establishments are covered by information technology & networked with the Corporate Office.

- The Comp. has acquired a formidable reputation for its HR practices and has been recognised by National HRD Network in the recent past.

1997- Marico Industries has extended the Sweekar oil brand to introduce two new

refined oils-Sweekar cotton seed oil &Sweekar mustard oil.- The Comp. has set up a factory near Jalgaon to process the cotton seeds &

another factory near Jaipur for mustard oil.- The Comp. has launched branded refined mustard oil & cotton seed oil refined

under its brand name Sweekar Orange.- Marico Industries has been one of few success stories in the fast-moving

consumer goods segment.- The Comp. has announced the extension of Parachute brand name to other

products in the hair care segment, thus making it an umbrella brand.- Marico Industries has launched three new variants of coconut oil - light oil,

nutra sheen liquid &nutra sheen creme-under the brand name Parachute.- Marico Industries Limited, the Rs. 400 crore consumer goods company has

been selected as a Top Performing Global Growth Comp. from India by the World Economic Forum, New Delhi.

1998


- The Comp. was originally a join venture between a Lever group company & Nissin of Japan, & its products were distributed through HLL channels.

- Marico Industries Ltd has taken the lead in launching a refined oil in the soya segment with a new variant called Sweekar Refined Soya Oil.

- The Comp. has recently launched a new variant in Postman called Sona, which is a sunflower oil.

- MIL launched an innovative fabric care product named Revive ColourFix which helps to fix the colour on cotton fabrics.

- The Comp. has recently extended the brand equity of Parachute to coconut-based hair grooming products like Parachute Lite& Parachute Nutra-Sheen. The Comp. is also considering testing Parachute branded products in international markets like Europe & America.

1999- Marico Industries Ltd is focussing on relaunching its SIL brands in its

`healthcare' business, after a successful repositioning of its Saffola&Sweekar brand.

- The Comp. is planning to introduce a range of vegetable soups.- The Comp. is planning to set up a wholly-owned subsidiary in Bangladesh

shortly.- Marico Industries [Maricos] & The Bombay Oil Industries [BOILs] have

reached an understanding in terms of which the brands, Parachute and Saffola are being assigned to Marico.

- ICRA has retained the `A1+' rating for Rs. 7.5-crore commercial paper programme of company.

- The Comp. is planning to set up a local manufacturing unit is several other SAARC countries.

2000- The Comp. launched Parachute Dandruff Solution Coconut Hair Oil in

Calcutta, the first oil to combine coconut oil with antidandruff properties in a single hair oil.

- The Comp. has launched the branded coconut oil in a tamper proof seal pack with a flip top cap.

- Marico Industries limited has a tied up with the International Association of Trichologists [IATs], a non-profit organisation based in Australia.

2001- Marico Industries has launched the Revive Anti-Bacteria starch.

2002


- Marico Industries Ltd has informed BSE that the Board approved the Issue of bonus redeemable preference shares of aggregate face value of Rs 290 million. Ratio -- 1:1 on equity enhanced after bonus issue of equity shares made by Board on April 18, 2002 & approved by shareholders on July 18, 2002. The rate of dividend is 8% p.a.Increase in authorised share capital of Comp. from Rs 300 million to Rs 600 million.

- 2003

- Marico Industries Ltd have appointed Erehwon consultancy firm for initiatives of innovation in marketing & management.

- Marico Industries have acquired a controlling equity interest in Sundari LLC.

2004- Marico Industries' popular edible oil brand 'Saffola' launches a fresh

advertising campaign. The campaign by Grey Worldwide has a new tagline, Aaj se jeenekaandaazsudhariye [Improve your lifestyle todays], urges every Indian to take up healthy lifestyle. Earlier Saffola campaign used the tag line - SaffolaSwasthParivaarKeDil Ki Dhadkan

- High Court of Judicature at Bombay approves the Scheme of Amalgamation of AnanditaArnav Trading and Investment Private Ltd, MadhavNandini Trading and Investment Private Ltd, RajviRishabh Trading and Investment Private Ltd &Rishabh Harsh Trading and Investment Private Ltd with Marico Industries Ltd on February 12, 2004

- Announces 1:1 bonus issue- Marico Industries launches 'Saffola Gold, a blend of Ricebran&Kardi oils in a

70:30 ratio, which has dual benefits of lowering cholesterol & enabling food cooked in it to absorb lesser oil

- Marico industries has announced its foray into the beauty products segment with the launch of Silk-n-Shine, a post-wash haircare product

2006- Marico acquires HLL`s Nihar for Rs 216 cr

2007- Marico Ltd has appointed Mr.AnandKripalu as an Additional Non-Executive

Director on the Board of Directors of Company.- The Comp. has splits its face value from Rs.10/- to Rs.1/-.

2008- Marico Limited has appointed Ms.RachanaLodaya- Legal Manager, as Comp.

Secretary & Compliance officer of Company, with effect from August 01, 2008

Capital Structure of Marico Ltd.


Period Instrument Authorized Capital

Issued Capital

- P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital

2011 2012 Equity Share 65 61.49 614934387 1 61.49

2010 2011 Equity Share 65 61.44 614399550 1 61.44

2009 2010 Equity Share 65 60.93 609325700 1 60.93

2008 2009 Equity Share 65 60.9 609000000 1 60.9

2007 2008 Equity Share 65 60.9 609000000 1 60.9

2006 2007 Equity Share 65 60.9 609000000 1 60.9

2005 2006 Equity Share 60 58 58000000 10 58

2004 2005 Equity Share 60 58 58000000 10 58

2003 2004 Equity Share 30 29 29000000 10 29

2002 2003 Equity Share 30 29 29000000 10 29

2001 2002 Equity Share 29.9 14.5 14500000 10 14.5

2000 2001 Equity Share 29.9 14.5 14500000 10 14.5

1997 2000 Equity Share 29.9 14.5 14500000 10 14.5

1996 1997 Equity Share 14.9 14.5 14500000 10 14.5

1995 1996 Equity Share 14.9 13.5 13500000 10 13.5

1994 1995 Equity Share 14.9 4.5 4500000 10 4.5

Marico entering a new market with the brand Parachute:


For Marico, going global is more than a means of opening up new avenues of growth. In roughly 13 months, between January 2010 and February 2011, fast moving consumer goods company Marico has snapped up four international acquisitions — which include brand Code 10 (Malaysia), Derma Rx (in Singapore via wholly-owned subsidiary Kaya Ltd), Ingwe in South Africa, and an 85 per cent stake in International Consumer Products Corporation (ICP) of Vietnam. That’s one new addition every three months or so.

For Marico — which started its journey as Bombay Oil Industries in a traditional commodity-driven business — going global is not just a means of opening up new avenues of growth but also an opportunity for cross-border learning. That, in part, explains the shopping spree, and the amazing growth of its International Business Group (IBG). With a footprint in West Asia, North Africa, South Africa, Bangladesh, Malaysia and now Vietnam, the division has grown from Rs 96 crore in 2004-05 to Rs 734 crore in 2010-11.

Today, Marico’s international business fetches almost a quarter of the group’s revenues estimated at Rs 3,300 crore for 2010-11, thanks to a judicious mix of organic (two-thirds of the IBG’s revenues) and inorganic growth. The Mumbai-headquartered company started off by exporting its flagship coconut oil Parachute brand across the subcontinent and in West Asia in the early 1990s, though its real foray as a serious investor overseas happened more recently, in 2000 in Bangladesh, when it set up a manufacturing facility for Parachute oil just outside capital Dhaka. Bangladesh brings in the lion’s share of IBG’s revenues at over 50 per cent, with West Asia (currently present in the Gulf Cooperation Council countries, Yemen, Sudan and the Levant region) bringing in another 30 per cent. The balance is contributed by the other geographies where Marico has a footprint, namely, Egypt, South Africa, Malaysia and Vietnam.

These acquisitions have also brought more than six new brands under the Marico umbrella, significantly adding to the company’s international offerings that comprised only one brand (Parachute) till about 2005. However, the company’s revenue mix is still extremely dependent on Parachute (hair care) and Saffola (edible oil), its top grossers, which together bring in close to 60 per cent of Marico’s overall revenues.


Parachute Market History.

Egypt is one of the most populous countries in Africa and the Middle East. The great majority of its over 81 million people live near the banks of the Nile River, in an area of about 40,000 square kilometres (15,000 sq. mi), where the only arable land is found. About half of Egypt's residents live in urban areas, with most spread across the densely populated centres of greater Cairo, Alexandria and other major cities in the Nile Delta.

The economy of Egypt is one of the most diversified in the Middle East, with sectors such as tourism, agriculture, industry and service at almost equal production levels.

Egypt's important role in geopolitics stems from its strategic position: a transcontinental nation, it possesses a land bridge (the Isthmus of Suez) between Africa and Asia, traversed by a navigable waterway (the Suez Canal) that connects the Mediterranean Sea with the Indian Ocean by way of the Red Sea.

Egypt's foreign policy is supported by its population size, historical events, military strength, diplomatic expertise and a strategic geographical position. It has extensive political influence in Africa and the Middle East. Cairo has been a crossroads of regional commerce and culture for centuries, and its intellectual and Islamic institutions are at the centre of the region's social and cultural development.

Economic conditions have started to improve considerably after a period of stagnation from the adoption of more liberal economic policies by the Government, as well as increased revenues from tourism and a booming stock market. In its annual report, the International Monetary Fund (IMF) has rated Egypt as one of the top countries in the world undertaking economic reforms. Some major economic reforms taken by the new government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by the year 2006.

Foreign direct investment (FDI) into Egypt has increased considerably in the past few years, exceeding $6 billion in 2006, due to the recent economic liberalization and privatization measures taken by minister of investment Mahmoud Mohieddin.


Marketing Mix ParachuteProducts

Parachute is premium edible grade coconut oil, a market leader in its category. Synonymous with pure coconut oil in the market & is positioned on the platform of purity. Parachute thus enjoys tremendous equity, trust with every passing generation & loyalty in the urban as well as rural sectors of India. Innovations in the packaging whether from the aspect of user-friendliness or aesthetics have and continue to help Parachute grow.

Parachute Advansed:

Parachute Advansed contains essential oils of ylang-ylang to give it a rich and deep fragrance. It is for the all-aware young Indian woman who is demanding, is aware of the benefits of using hair oil and the role it plays in maintaining her healthy and well nourished hair. It is lighter than other coconut oils & with regular use of Parachute Advansed, hair strength is known to increase by up to 16%.Innovations from Parachute Advansed: Personal Champi – It is a combination packconsisting of a Parachute Advansed 300 ml bottle and a head massager. Hot Champi – It consists of hair oil warmer and a bottle of Parachute Advansed coconut hair oil. Parachute Advanced Revitalising Hot Oil – This oil is enriched with a special warming oil which keeps it hot from inside. It gives extra care during winter & does not freeze in winters.

Parachute Jasmine –

Parachute Jasmine is a hair oil that gives nourishment, has a lingering fragrance & is delivered through a completely non-sticky format. This makes Parachute Jasmine great post-wash oil. The Parachute Jasmine woman is between 18 – 24 years confident and progressive yet has her roots in traditional values and culture.

Parachute Aftershower –

Parachute Aftershower styling gels & creams offer this new age consumer a range of male grooming products


http://www.marketing91.com/benefits/

Parachute Therapie –

A Therapie to reduce hairfall in 45 days

Parachute Advanced Starz –

Parachute Advansed Starz is a range of hair care products specially created between 3-10 years. This range includes Parachute Starz Gentle Shampoo, Parachute Starz Non-Sticky Hair Oil and Parachute Advanced Starz Nourishing Cream Gel.


Product Variety

• Parachute coconut oil

– Premium edible grade coconut oil– Positioned on the platform of purity – Innovations in packaging for user friendliness and aesthetics

• Parachute Advansed

– Contains essential oils of ylang-ylang to give it a rich and deep fragrance – contains essential oils of ylang-ylang to give it a rich and deep fragrance – With regular use hair strength is known to increase by

up to 16% – When applied pre-wash, Parachute Advansed reduces protein loss up to 28%

and restores the health of hair

• Parachute Jasmine

– Light, fragrant oil that can be used everyday to nourish and style your hair Gives healthy, non-sticky, free flowing and fragrant hair

• Parachute Aftershower

– Non-sticky– Anti-dandruff, Works 24x7– Makes hair 50% stronger– Styles hair

• Parachute Therapie

– Unique scientific formulation – Developed after 6 years of intensive research, product development and

consumer trial – helps control hair fall naturally

• Parachute Advansed Starz

– Made from natural ingredients – Coconut Proteins - For gentle nourishment – Vitamin Shakti - Fortify and strengthen hair

Strawberries - A yummy fragrance that children love.


Quality Assurance

– Marico Bangladesh achieved MMEM (Marico Manufacturing Excellence Model) Certification post audit from the Global Corporate

– Quality Assurance team. These Quality System facilitate the manufacturing locations to produce consistent quality products day in and day out.

– They also ensure that there is specifi c focus on continual improvement of processes, systems and procedures.

– Marico cleaned the ISO 9001 sustenance audit with flying colors post the certification obtained in 2009.

– Marico emphasizes special focus on Safety & Environment at the manufacturing locations as well as at their vicinity. In regard to this Marico will go for ISO 14001 & ISO 18001 certifications in this financial year

Product Design

Marico followed innovation as a major strategy in building Parachute brand. The following are some example.

20 ml Parachute - a Rs 5 SKU that enables loose oil users to upgrade to Parachute.

Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of Parachute


http://bp1.blogger.com/_RoZOCtRoIGc/RoNy3UfPZjI/AAAAAAAAALE/ABRD2klDf0U/s1600-h/para1.jpg

http://bp1.blogger.com/_RoZOCtRoIGc/RoNy3UfPZkI/AAAAAAAAALM/bGL6ApKgzNo/s1600-h/para_bottle.gif

Parachute Mini - a bottle shaped small pack being sold at an MRP of Re.1

Easy Jar of Parachute to facilitate usage especially during winters

The strategy followed by the company and the quality of the product offers a customized product in all seasons, to grab the price conscious customers and to provide value for money.

Product Feature

An oil that leaves an instant shine on your hair and gives you that ultimate experience of rejuvenation is this Advansed Coconut Hair Oil from Parachute. Suitable for women, this Coconut Hair Oil strengthens your hair in the most unique way. The Parachute Advansed Coconut Hair Oil is formulated from ylang ylang oils to keep your hair healthy. Also, ylang ylang oils penetrate deep into the hair roots and leave your hair looking healthy and lustrous.

The deep fragrance this Advansed Coconut Hair Oil leaves on your hair will make you fall in love with your hair. Besides conditioning your hair, this natural Parachute Hair Oil reduces protein loss. This Advansed Coconut Hair Oil also nourishes your hair and restores hair’s health. Additionally, this Coconut Hair Oil adds the desired amount of moisture and makes your hair soft and supple. Suitable for all hair types, this Advansed Coconut Hair Oil from Parachute helps you get that silky smooth hair on-the-go no matter what type of hair you have.

Brand Name:

Parachute Coconut Hair Oil


http://bp2.blogger.com/_RoZOCtRoIGc/RoNy3kfPZlI/AAAAAAAAALU/2yf_St4kaFk/s1600-h/para_mini.jpg

http://bp2.blogger.com/_RoZOCtRoIGc/RoNy3kfPZmI/AAAAAAAAALc/Mn5Etv6SdIc/s1600-h/para_small.jpg

Packaging :

Parachute coconut hair oil are available at the market in blue color plastic bottle.

Size:

Available in

Bottles: 100 ml, 200 ml, 500 ml, 1000 ml (Jumbo Pack)

Flip Cans: 100 ml, 200 ml


Price

• Major factors impacting pricing

• Copra and oil seed input costs

• Packaging costs

• Competitors

• Pricing Method

• Competitive

• Promotional pricing (20% extra)

• Pricing Strategy

• Economy / Value??


Product Prices

Parachute Coconut oil 500 ml - Rs 90200 ml - Rs 3920 ml - Rs 5Mini - Rs 1

Parachute Advansed 375ml – Rs 80212.5ml - Rs 4880 ml – Rs 27

Parachute Jasmine 300 ml – Rs 72150 ml – Rs 46100 ml – Rs 29

Parachute Aftershower 150 ml – Rs 80 (Antidandruff)50 ml – Rs 37 (Antidandruff)150 ml – Rs 62 (Regular)50 ml – Rs 35 (Regular)

Parachute Therapy 190 ml – Rs 190100 ml – Rs 99

Parachute Advansed Starzz 100 ml – Rs 54

All Price are as on the Date: 26-06-2011

During my research not any Discount offers was available in the market.

Place


Marico have 9000 distributer for parachute who service the entire country through the wide

market network. Parachute is available across the country but in northern India especially in

Uttar Pradesh, Madhya Pradesh, Chattisgrah, Gujrat, Delhi, Panjab, Haryana, Bihar,

Jharkhand and in Rajasthan parachute is more popular in women.

• Channels –

– Distributors – Retailers – Consumers

– Retailers includes - Kirana Stores, Supermarkets, Medical Shops, Co-

operative Stores etc.

• Coverage –

– All India market

• Urban

• Semi-urban and

• rural markets - primary focus.

Marico’s Distribution Ntwork in India

Urban Rural

Sales Territories 135 35

Towns Covered (‘000's) 3.2 11

Distributors 850

Super Distributors - 120

Stockists - 3,600

Retail Outlets – Reach (millions) 1.65 0.85

Place : Distribution Chain


In whole south India Parachute are available and also in whole north east states it is

available.

Parachute coconut hair oil are sold in 42 countries. Through more than 20 lakh Retail outlets.

Promotion


Sales Promotion

Sales promotion consists of short-term incentives to encourage the purchase or sales of a

product or service and it can take form of following promotions

Consumer,

Business,

Trade, or Sales force promotions

Consumer Promotion

Parachute Loyalty programmeHar pack per paayiye points …aur points par paaiye aakarshak inaam

Parachute Loyalty programmeHar pack per paayiye points …aur points par paaiye aakarshak inaam


50 points- 1 Hair brush free 150 points- 100 ml Parachute Hair Oil free 250 points- 100 ml Parachute Hair Therapie free 1000 points- 1 free visit to “Kaya Skin Clinic”

Personal Hygiene Awareness Camps in schools

Student discounts coupons

Consumer Promotion in rural areas


• Parachute is sponsors jatra (open-air folk theatres) to facilitate an increase in Parachute's market presence in rural areas.

• Partnership in each of them would cost the company anywhere between Rs 25,000 and Rs 65,000 depending upon the troupes that are hired.

• Discount coupons can be distributed among the spectators

Consumer Promotions

Champi booths at malls


Spot buy discounts Surprise gifts

Trade Promotion

Point of Purchase Best Product display award at retailer level


Jo dikhta hai woh bikta hai

Trade Allowances

Gifts or Attractive schemes to make the retailers and distributors to stock more which would increase the sales

Additional margins for the retailers who sell more

Incentivizing the retailers and consumers to collect the parachute oil cans, jars, bottles for recycling –A Trade and consumer promotion.

Will act as a CSR initiative in conserving the resources by recycling. Thereby creating a goodwill for Parachute brand in the society.

Contest’s & Awards: Retailers Meeting the celebrity contest Retail Product push winner award Seller of the quarter

Business Promotions

Recognition is the best incentive – Parachute King award for the best sales employee


Parachute Diamond award given to best distributor at Zonal level

* In Marico this can be tracked online by SAP module MI-NET was officially launched July 1, 2002.

Training/informative recreational tours about hair therapy and coconut oil to potential performing sales and trading partners.

Communication Strategy

Coconut Dream :

Mass communication on the platform of ‘caring’ with mother daughter theme. Communication aimed at youth for nourishment ( proteins and vitamins)

New Communication

Mantra “ Pure coconut oil matlab parachute “ Communication like the "weight-test" (proving that pure Coconut oil is heavier than

impure oil). Synonymous with pure coconut oil the gold standard for purity. Effectively explain the benefits of various innovative packing ( Flip top, wide mouth,

and tamper proof etc.)

Bibliography

www.kayaclinic.com


www.maricobd.com www.marico.com


Documents

Parachute Hair Oil