INTRODUCTION
Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and
Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods
generated a Turnover of about Rs. 23.9 billion (about USD 478 Million) during 2008-09.
Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar,
Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancée, Hair Code, Caivil, Code 10 and
Black Chic. Marico's brands and their extensions occupy leadership positions with significant
market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice
Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin
Care Solutions segment through Kaya Skin Clinics (101 in India, Middle East and
Bangladesh) and its soap franchise.
Marico's branded products are present in Bangladesh, other SAARC countries, the Middle
East, Egypt, Malaysia and South Africa. The Overseas Sales franchise of Marico's Consumer
Products (whether as exports from India or as local operations in a foreign country) is one of
the largest amongst Indian Companies and is entirely in branded products and services.
HISTORY
The company was originally a join venture between a Lever group company and
Nissin of Japan, and its products were distributed through HLL's channels.
In 1988 The Company was incorporated on 13th October, under the name of Marico
Foods Ltd. It obtained the Certificate of commencement of business on 22nd
November.
In 1989 The name of the Company was changed to Marico Industries Limited w.e.f.
31st October.
In December, the Company entered into an agreement with M/s. Rasoi Industries
Limited for purchase of its unit located at M.I.D.C Industrial Estate, Jalgaon.
Saffola won the Most Outstanding `Brand of the Year' Award instituted by the
Advertising Club of Mumbai in 1993.
In March 1996, the Company 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 the
promoters of 26,25,000 equity shares of Rs.10/- each, at a premium of Rs.165/- per
share.
In 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 the Board on
April 18, 2002 and approved by shareholders on July 18, 2002. The rate of dividend is
8% p.a.Increase in authorised share capital of the Company from Rs 300 million to Rs
600 million.
Marico acquires HLL`s Nihar for Rs 216 cr in 2006
In 2007 Marico Ltd has appointed Mr. Anand Kripalu as an Additional Non-
Executive Director on the Board of Directors of the Company.
PRODUCTS
Saffola Hot Oil
Hair & Care Nihar Shanti Badam Amla
Mediker Caivil
VISSION AND MISSION
'COME WIN' ---- their vision and mission is captured in this acronym, which when
bifurcated means the following: -
Consumers: For they are the reason we exist.
The primary focus of our efforts will be to not only understand what adds greatest value to
the consumer but also change and reinvent ourselves if need be. We will translate the
consumer's needs and desires into marketable products and an ever-expanding base of loyal
consumers, with speed and a quality of response that surpasses the competition.
Membership: For a sense of ownership empowers us.
Wholesome membership is when a person brings his/her entire being into the organization. It
also gives each member a role in articulating and shaping the destiny of the organization,
which in turn, builds commitment and ownership.
Excellence: For it unleashes our potential.
We will focus on policies and practices where people produce consistently superior
performances and where people are encouraged to discover their untapped potential.
Wealth: For on it hinges our growth.
All our efforts must culminate in the creation of wealth. We will do so by continuously
adding value in everything we do through a variety of methods. We will use sources
productively, eliminate waste, reduce cycle times and costs and enhance the consumer base.
Innovation: For it gives wings to ideas.
The future of our organization rests on our willingness to experiment, push in new and
untested directions, think in uncommon ways and take calculated risks. Continuous
improvement should be a part of everyday work. We acknowledge that failure is inherent in
any new initiative. We will commit resources for experimentation and invest in processes for
reviewing and sharing of learning.
Marico's Goals and objectives (which they wish to achieve by 2010)
We commit ourselves to improving the quality of people's lives in several parts of the world,
through branded fast moving consumer products and services.
SWOT ANALYSIS
Before going to the Marico Company’s SWOT Analysis we must understand which things
are included in the SWOT analysis;
SWOT Analysis of Marico Ltd.Strengths1.Understanding of Indian Consumer behavior in the hair oil segment.2.Rural Maket seach. 3.Large distribution network all over india.Weakness1.Not strong within the shampoo segment, having hardly any share.2.Not having any antidandruff hair oil whose market potential is worth 25% of the total oil market in india.Opportunities1.Need to concentrate within the various other market potential zones like hair shampoo, hair colorants etc.Threats1.Competition from the diverse players present in the market can cause loss of market share. "SWOT Analysis of Marico India"
Various Environmental Analyses
Strategic Advantage Profile (SAP)
IntroductionA competitive advantage is an advantage over competitors gained by offering consumers
greater value, either by means of lower prices or by providing greater benefits and service
that justifies higher prices.
Concept of Competitive Advantage"Competitive advantage exists when there is a match between the distinctive competencies of
a firm and the factors critical for success within its industry that permits the firm to
outperform competitors."
It concludes, then, that competitive advantage is externally focused while organisational
competence is internally focused. Therefore, an organisation's competence does not
automatically lead to competitive advantage. This phenomenon can be explained by two
situations:
1. The core competence of the organisation may not be of any importance to the industry
in which the organisation is operating. There are numerous examples of this
phenomenon; organisations diversifying into non-core competence areas, failing
therein and divesting such business. Metal Box, having core competence in packaging
materials, diversified into bearing and had to divest it, and so on.
2. Even if core competence has relevance in the industry segment, other competitors
may have the same strength and the particular organization may not have any
competitive advantage. What becomes, then, important for the organization is to have
relatively greater strength in that important factor than its competitor, For example,
two competitors may enjoy low manufacturing costs; but one with the lower
manufacturing costs has a competitive advantage.
Competitive Advantage Profile: A Case of MARICO
Marketing Factors
India’s fast moving consumer goods (FMCG) sector is the fourth largest sector in the
economy of India with a total market size in excess of US$ 13.1 billion.
Many giant players, both foreign as well as domestic, are competing in the market
with a view to capture it.
Marico Company a leading Indian FMCG Company having excellent distribution
channel and deep rural reach in India.
Marico and especially for having efficient distribution channel, Satisfaction Level of
Retailers on Various Products as well as other micro Parameter's plays a vital role
identifying the flaws and merits of Marico.
Renowned Brands like Parachute, Saffola, and Kaya Skin Clinics.
Brands – quite powerful.
Strong in inventory control (28 days).
Physical distribution for superior to competitors.
Production Factors
Size advantages in relation to competitors.
Finesse in production planning, scheduling, and matching with marketing
requirements.
In house production – no outsourcing – high reliability suppliers – superior quality
assurance.
India and foreign production location – spread benefit.
Human resources high calibre.
Finance Factors
A Turnover of about Rs.13.6 billion (about USD 380 Million) during 2008-09.
Cash rich.
CAGR of 13% in turnover, 15% in profits - over last 5 years
Competitive Advantage Profile: A Case of MARICO (Descriptive Form)
Capability Factors Competitive Strengths & Weakness
Finance High cost capital, reserves & surplus
Marketing Various Products, Domestic and Foreign market gainer
Operation P&M excellent – parts & components available
personnel Quality management & personnel par with competition
ENVIRONMENT THREAT AND OPPORTUNITY PROFILE
(ETOP)
Environmental scanning usually refers just to the macro environment, but it can also include
industry, competitor analysis, marketing research (consumer analysis), new product
development (product innovations) or the company's internal environment.
Macro environmental scanning involves analysing:
Economy
Government
Legal
Technology
Potential Suppliers
Socio-cultural
Economy
GDP per capita
economic growth
unemployment rate
inflation rate
consumer and investor confidence
inventory levels
currency exchange rates
merchandise trade balance
financial and political health of trading partners
balance of payments
future trends
Government
political climate - amount of government activity
political stability and risk
government debt
budget deficit or surplus
corporate and personal tax rates
payroll taxes
import tariffs and quotas
export restrictions
restrictions on international financial flows
Legal
minimum wage laws
environmental protection laws
worker safety laws
union laws
Sunday closing laws
municipal licenses
laws that favour business investment
Technology
Efficiency of infrastructure, including: roads, ports, airports, rolling stock, hospitals,
education, healthcare, communication, etc.
industrial productivity
new manufacturing processes
new products and services of competitors
new products and services of supply chain partners
any new technology that could impact the company
cost and accessibility of electrical power
Potential suppliers
Labour supply
o quantity of labour available
quality of labour available
stability of labour supply
wage expectations
employee turn-over rate
strikes and labour relations
educational facilities
Material suppliers
quality, quantity, price, and stability of material inputs
delivery delays
proximity of bulky or heavy material inputs
level of competition among suppliers
Service providers
quantity, quality, price, and stability of service facilitators
special requirements
Socio-cultural
Demographic factors such as:
population size and distribution
age distribution
education levels
income levels
ethnic origins
religious affiliations
Attitudes towards:
materialism, capitalism, free enterprise
individualism, role of family, role of government, collectivism
role of church and religion
consumerism
environmentalism
importance of work, pride of accomplishment
Cultural structures including:
diet and nutrition
housing conditions
Scanning these macro environmental variables for threats and opportunities requires that each
issue be rated on two dimensions. It must be rated on its potential impact on the company,
and rated on its likeliness of occurrence. Multiplying the potential impact parameter by the
likeliness of occurrence parameter gives a good indication of its importance to the firm.
ETOP MATRIX OF MARICO COMPANY
Environmental
factors
Degree of importance
High Medium low
(3) (2) (1)
Degree of impact
High Medium low
± 3 ± 2 ± 1
Economic
Inflation rate
Economic growth
Consumer and
investor
confidence
-
3
-
-
-
-
1
-
1
-
-3
-
-
-
-
+1
-
-1
Legal
Minimum wage
laws
Budget deficit or
surplus
Environmental
protection laws
-
3
-
2
-
-
-
-
1
-
+3
-3
-
-
-
+1
-
-
Technology
Cost and
accessibility of
3 - - +3 - -
electrical power
Industrial
productivity 3 - - - -2 -
ORGANISATIONAL CAPABILITY PROFILE (OCP)
OCP is a summarized statement which provides overview of strengths and weakness in key
results are as likely to affect future operation of the organisation. Information in this profile
may be presented in qualitative terms or quantitative terms. Where the information is
presented in qualitative terms, strengths and weakness described in the form of narration.
However these narrations do not show the degree of strengths and weakness. Quantitative
presentation of strengths and weaknesses solves this problem. In the quantitative
presentation, all the factors appraised are assigned degree/values along a scale. Such values
may be on 5 point scale with 5 denoting the highest value and 1 denoting the lowest value of
strengths and weaknesses. The values that are assigned to a factor are subjective depending
on the perception and judgment of appraisal. Such an exercise may run into several pages
depending upon the factors appraised.
After the preparation of OCP, the organization is in a position to assess its relative strengths
and weaknesses vis-a- vis its competitors. If there is any gap in any area, suitable action may
be taken to overcome that.
Financial capability factors of MARICO Company Cash management
Centralized payment
Decentralized collection
Low investor confidence
Marketing capability factors of MARICO Company Distribution channel
Wide variety of product
Low company image
Low promotion
Fixed price
Operation capability factors of MARICO Company Plant location as per raw materials availability
Absorb imported technology
R & D system is so good
MIS system of operation and control system
Personnel capability factors of MARICO Company Good personnel system
Good industrial relation with other company
Summarized form of OCP
OCP Weakness
(- 5)
Normal (0) Strengths
(+ 5)
Financial capability factors
a. Source of funds and cost
b. Usage of funds
c. Management of funds
-
-
-
-
0
-
3
-
2
Marketing capability factors
a. Product related
b. Price related
c. Promotion related
d. Distribution related
-
-1
-3
-
-
-
-
-
5
-
-
1
Operation capability factors
a. Plant location
b. Production system
c. Operation and control system
d. R & D system
-
-
-
-
0
-
-
-
-
2
3
5
Personnel capability factors
a. Personnel system
b. Organisational and employee
characteristics
c. Industrial relations
d. Quality and motivation of
personnel
-
-
-
-
-
-
0
-
1
2
-
1
THE BOSTON CONSULTING GROUP’S GROWTH-SHARE
MATRIX (BCG)
BCG Matrix Include;
1. Stars are high market share/high growth businesses. The preferred strategy is growth.
2. Question Marks are low market share/high growth businesses. The preferred
strategies are growth for promising question marks and restructuring or divestiture for
the other question marks.
3. Cash cows are high market share/low growth business. The preferred strategy is
stability or modest growth.
4. Dogs are low market share/low growth businesses. The preferred strategy is
retrenchment by divestiture.
BCG MATRIX OF MARICO
STAR
It is represented by a SBU or a product having high relative market share and high market
growth rate. It need capital over and above its cash flow to maintain it’s market share.
However in may be self sustained in terms of cash flow when it is established and beginning
to mature ultimately it becomes cash cow, on maturity, because it cannot absorb further cash.
It cannot absorb further cash; it provides cash for growing stars. It suggested Expansion
Strategy for STAR
E.G. KAYA SKIN CARE AND PERACHUTS COCONUT OIL IN MARICO AND IN THE
INDUSTRY HLL AND GODREJ COMES IN THIS CATEGORIES.
These product is in STAR but there cash flow will be less it will be become cash cow because
there use full all over the world.
QUESTION MARK
It represented by a SBU /Product having low relative market share and high market growth
rate I.E low market share in a growing market. It requires large cash due to market growth,
but generates less cash due to low market share.It requires additional investment to increase
it’s competitive advantage or divestment.
E.G NIHAR, SAFFOLA (FUNCTIONAL OIL) AND IN THE WHOLE INDUSTRY
DABUR COMES IN IT.
These product company given more advertisement. Because these product not more popular
in the market. So company given more cash to these product.
CASH COW
It represent by a SBU/Product having high relative market share and low market growth rate.
It generates substantial cash over and above it’s investment requirement. It may be a
SBU/Product in maturity life cycle stage. It is not attractive in long ran due to less market
growth rate to meet the investment need of stars on question marks, over heads and growth
strategy is suggested.
E.G SAFFOLA (EDIBLE OIL), SILK N SHINE AND IN THE ABOVE EXAMPLE ITC
COMES.
These product market share is high but there market growth rate is low because there
competitor is so much in market. In the market SAFFOLA OIL competitor is so much like as
FORCHUN OIL , DARA OLI etc.
DOG
It represents a SBU/Product having low relative market share and low market growth rate. It
has very low competitive position due to high costs, poor quality ,poor marketing etc.It also
has low growth potential due to low market growth rate. It does not generate enough cash
even for its own continuity. So Retrenchment Strategy usually by divestment or liquidation is
suggested.
It may be in the declining stage of its life cycle. Government policy may retain a dog
artificially.
E.G MAHA THANDA AND IN THIS EXAMPLE MARICO COMES
These product in market so very people know and there marketing is so less to other product
of company.
This product competitor is NAVRAT COLL DABAR Etc.
GE NINE-CELL MATRIX McKINSEY & Co
This matrix follows two dimensions;
Industry Attractiveness Market Size and growth rate
Industry profitability
Seasonality
Political Factors
Capital requirements etc.
Business Strength Relative Market Share
Relative price, service
Knowledge of Customers & Markets
Financial Resources
HIGH AVERAGE WEAK
HIGH 1 2 6
MEDIUM 3 4 7
LOW 5 8 9
Medium LowHighM
ediu
mH
igh
Low
Build Hold Harvest
Bus
ines
s U
nit P
ositi
onIndustry Attractiveness
Cell 1:
It has high business strength and strong Industry attractiveness. It is suggested the growth
strategy. In long run other players may be attracted and Industry attractiveness reduces.
E.G: Like as parachute is more attractiveness but now there competitors are so much but
there attractiveness is same as earlier.
Cells 2:
It shows average business strength and high industry attractiveness. So it suggested growth
strategy by building up of business strength.
But if it does not happen it is dangerous.
E.G: Like as Parachute Advanced Oil attractiveness is high but there competition of this
product strength is average because in the market parachute Oil is sold. So that here, only
company change name. The product attractiveness is so much but here product strength is
average.
Cells 3:
It has High Business Strength and attractiveness is medium. Here growth Strategy suggested.
E.G: Like as NIHAR and SILK N SHINE strength is high but there attractiveness is medium
because their competitors is so much in these product.
Cell 4:
It has business strength is average and attractiveness is medium. It will be hold and continue
to earn. It say Suggested Stability Strategy.
E.G: Like as SAFFOLA (OIL) there both are average but in the market there are many
products is strong to compare to SAFFOLA.
Cells 5:
It has high business strength and Low attractiveness of Industry can grow by neither vertical
integration nor diversification where its strength can be utilized. Otherwise, it should be
continued to harvest profit.
Cells 6:
It has high attractiveness of industry but low business strength. It suggested stability and
growth for business strength. It may continue to earn in attractive industry or improve its
strength and grow or if it is not possible its divest.
Cells 7 & 8:
In the res zone suggest harvestmen or turnaround strategy .
Cells 9:
It is least attractive and weak, so immediate is suggested.
STRATEGIC BUSINESS UNIT
Marico’s Strategic Business Unit
Consumer Products Business:
Over the past 17 years, Marico has been continually improvising and building new brands.
Marico's Consumer Products Business houses well-known brands such as Parachute, Saffola,
Sweekar,Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, among others, which occupy
leadership positions with significant market shares in most categories- Coconut Oil, Hair
Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric
Care etc.
Every month, over 70 Million consumer 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.
International Business Group:
The International Business Group of Marico operates in more than 20 countries spread across
Asia, Middle East and Africa and has manufacturing facilities in Egypt, South Africa &
Bangladesh.
The International Business group has witnessed phenomenal growth over the years and
contributes to 25% of Marico’s turnover. The company has full fledged operations in Egypt,
South Africa, Middle East and Bangladesh.
In addition, the International Business group is actively involved in creating opportunities for
future growth and has enabled our brands to be present in many other markets across the
globe.
Kaya:
Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith marking
Marico's entry into skin care solutions business. It was a true reflection of uncommon sense
for a company in hair care products to move, instead of merely logical product extensions,
straight into skin care services. It attempted to leverage Marico's strengths in the Personal
Care business and in-depth understanding of the needs of the Indian consumer and her/his
desire to enhance her/his natural beauty with the best cosmetic dermatology procedures
available internationally.
Kaya Ltd. has been focused on meeting the emerging needs of the modern day consumers by
providing useful and effective services in the beauty and wellness space. The pioneering
effort has been in the area of skin care with Kaya Skin Clinic. Over the last 7 years Kaya Skin
Clinic has refined the standards and professionalisms of the skin care industry through
innovative, world class treatments and services that have been tailor made to suit Indian skin.
Kaya Skin Clinic
The philosophy at Kaya is governed by the single value of placing the customer first at all
times. The emphasis, therefore, is to offer personalized, world-class skincare treatments and
services, most suited for Indian skin, in a zen like, state-of-the-art clinic. Since its first
prototype in Bandra in 2002, Kaya Skin Clinics has grown at an unprecedented pace, with
over 100 clinics in India, Middle East and Bangladesh.
Kaya Services
Kaya has a host of services that will help you attain, regain, preserve and protect the intrinsic
beauty of your skin. All this is offered in serene, zen like ambience, under the reassuring care
of dermatologists and experienced skin practitioners, to aid you to easily look your best,
always.
Skin Beauty Services:
Skin polishing and brightening
Kaya Glow
Kaya Back shine
Meso Glow
Skin Lightening Peel
Kaya Advanced Facial
Kaya Express Glow
BUSINESS LEVEL STRATEGIES
1. Cost Leadership Business Level Strategy
In company attains there competitive advantages & Increased their market share by offering
products and services. Company offering product and services having the same utility, utility
features as competitors’ products and services. Company substitute products and services; but
the price lower than their competitors. Because of its core competence in engineering, design,
manufacturing, distribution etc.When there is price elasticity of demand i.e. positive co-
relation between price reduction and demand.
Cost leadership is achieved by Marico Company
Early entry in business.
Accurate demand forecasting.
High capacity utilization.
High level of standardization of products and uniform services packages.
Aiming at average customer by giving generalized set of utilities & thereby attracting
more customers.
Conditions For Cost Leadership Being Successful Are As
Price based competition is so severe that cost becomes an important factor.
Buyers are price sensitive and low price attracts more buyers.
Buyers are many and have bargaining power for price reduction
There are very few ways of differentiation and it is not important to customers.
Advantages of Cost Leadership Are As Following:
In company it protection against competition if a company make lower structure of products.
There is less effect because powerful suppliers bargain for high price so that such price rise to
better absorbed in low cost structure.
It serves as entry barrier to new company which can not produce at lower price.
Company has so many products so that company use these strategy for there product market
share increase in market. If company not use these strategy for there product company not
sell there product in market because company’s so many competitors. So many products
growth is so much as compare to there anther products.
2. Differentiation Business Level Strategy
Company make such product/services is differentiating from there competitors. Which are
not offered by competitors. Company see the which customers are ready & willing to pay
premium price which can compensate additional cost of differentiation.
Company Make Differentiation at These Point
By enhancing the quality i.e. offering stronger, bigger, better, vastly, improved
products.
By enhancing versatility, safety, utility and convenience for customers to match their
tastes and preferences.
By changing size, weight, materials. Accessories of products i.e. from of products.
By style improvement by increasing aesthetic appeal, by symbols, by media, by
atmosphere, by new packaging etc.
By improving the quality of inputs i.e. raw materials.
By better durability, reliability, design, process of manufacturing, modern,
technology, collaboration with valued partner, unique location etc.
By lower operational cost of using the products/services.
By offering complete range of products /services etc.
By coverage, expertise and performance of channels.
Company make product for Skin is KAYA Skin Care these is so much differentiation
to other.
Company make for night crème is PARACHUTE NIGHT REPAIR CREME.
GROWTH STRATEGY
Growth is a way of life. Almost all organizations plan to expand. This strategy is followed
when an organization aims at higher growth by broadening its one or more of its business in
terms of their respective customer groups, customers functions, and alternative technologies
singly or jointly – in order to improve its overall performance.
There are five types of expansion (Growth) strategies
Expansion through concentration
Expansion through integration
Expansion through diversification
Expansion through cooperation
Growth through Acquisitions
Marico has acquired five companies in the last 18 months to expand its product lines and
business. The company acquired a number of brands such as Aromatic soap in Bangladesh,
Manjal toilet soap and Nihar hair oil in India, and Fiancée hair care brand in Egypt. The
Ready Group's Fiancée hair care brand has captured 20 per cent of the Egyptian market.
Marico is leveraging the popularity of the Fiancée brand to expand its business in Egypt and
other parts of the Arab world.
VALUE CHAIN ANALYSIS OF MARICO
ConceptA value chain is a chain of activities for a firm operating in a specific industry. The business
unit is the appropriate level for construction of a value chain, not the divisional level or
corporate level. Products pass through all activities of the chain in order, and at each activity
the product gains some value. The chain of activities gives the products more added value
than the sum of added values of all activities. It is important not to mix the concept of the
value chain with the costs occurring throughout the activities.
ActivitiesThe value chain categorizes the generic value-adding activities of an organization. The
"primary activities" include: inbound logistics, operations (production), , marketing and sales
(demand), and services (maintenance). The "support activities" include: administrative
infrastructure management, human resource management, technology (R&D), and
procurement. The costs and value drivers are identified for each value activity.
Profit Profit margin
Margin
Administrative Infrastructure Management
Human Resource Management
Technology (R&D)
Procurement
Inbound Operation Outbound marketing services
logistics logistics & sales
Support activities
Primary activities of MARICO
Inbound logistics
These are the activities concerned with receiving the materials from suppliers, storing these
externally sourced materials, and handling them within the firm.
Here goods are received from a company's suppliers.
They are stored until they are needed on the production/assembly line. Goods are
moved around the organization.
MARICO purchase their raw material from all around the world.
In order to maximize their availability of raw material MARICO maintain good
relationship with their suppliers.
MARICO use JIT (Just in Time) approach for handling of raw material.
Operations
These are the activities related to the production of products and services. This area can be
split into more departments in certain companies. For example, the operations in case of a
hotel would include reception, room service etc.
This is where goods are manufactured.
Operations could include organizing the parts to make final FMCG Product.
MARICO are known for their reliability which comes from efficient operations.
Outbound logistics
These are all the activities concerned with distributing the final product and/or service to the
customers. For example, in case of a hotel this activity would entail the ways of bringing
customers to the hotel.
The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer.
MARICO manage their Distributor and Super Distributor in different rural and urban
area.
MARICO make their product easily assessable.
Marketing and sales
This functional area essentially analyses the needs and wants of customers and is responsible
for creating awareness among the target audience of the company about the firm’s products
and services. Companies make use of marketing communications tools like advertising, sales
promotions etc. to attract customers to their products.
MARICO given TV ads and magazine for a marketing.
This area focuses strongly upon marketing communications and the promotions mix.
MARICO’s Supply Chain
Service
There is often a need to provide services like pre-installation or after sales service before or
after the sale of the product or service.
This includes all areas of service such as final checking, after-sales service Like
quality, quantity, packaging, weight etc..
MARICO values their customers.
Support activities of MARICO
Procurement
This function is responsible for purchasing the materials that are necessary for the company’s
operations. An efficient procurement department should be able to obtain the highest quality
goods at the lowest prices.
This function is responsible for all purchasing of goods, services and materials.
Factory + Subcontractor
Distributor
Retailer
Depot
Super Distributor
Stockist
RawMaterialVendors
DirectDistributorsPlants
RDC
Depots
SuperDistributors
Retailer
Stockists
30 depots
6 RDCs (regional distribution centres)
Total > 1100
Secondary Sales
Primary Sales
The aims to secure the lowest possible price for purchases of the highest possible
quality.
MARICO will be responsible for outsourcing and e-Purchasing (using IT and web-
based technologies to achieve procurement aims).
Human Resource Management
This is a function concerned with recruiting, training, motivating and rewarding the
workforce of the company. Human resources are increasingly becoming an important way of
attaining sustainable competitive advantage.
Employees are an expensive and vital resource. MARICO manage recruitment and selection,
training and development, and rewards and remuneration. MARICO consider their employees
as HUMAN CAPITAL. Equal support comes from our HRD team, which expends its
energies, formulating and building strategies to build a stable and high - talent organisation.
The innovations and the quest for excellence at Marico continue unabated. Even as the
success stories continue, the focus from the consumer never shifts.
Toyota motors uses following techniques to retain their employs
Recruitment
Selection
Training and development
Compensation
Maintenance
Technology Development
This is an area that is concerned with technological innovation, training and knowledge that
is crucial for most companies today in order to survive.
Technology is an important source of competitive advantage.
Companies need to innovate to reduce costs and to protect and sustain competitive
advantage.
MARICO implemented production technology, Internet marketing activities, lean
manufacturing, Customer Relationship Management (CRM), and many other
technological developments.
Firm Infrastructure
This includes planning and control systems, such as finance, accounting, and corporate
strategy etc.
This activity includes and is driven by corporate or strategic planning.
MARICO implemented Management Information System (MIS) and other mechanisms for
planning and control in different departments.