Introduction To IndustryFMCG Industry in India India‘s consumer market is riding the crest of the country‘s economic boom. 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. If we go by statistics, roughly around 73% of the Indian population lives in the rural areas- that‘s a very large market. Many giant players, both foreign as well as domestic, are competing in the market with a view to capture it. The growing consumerism in India shows the rapid increase in Indian consumer purchasing power, it shows strengths and opportunity that lies in rural Indian markets especially for FMCG products. As a result of it I have opted to undergo the training in Marico Company a leading Indian FMCG Company having excellent distribution channel and deep rural reach in India. As the major part of the market is yet to be taped one need to evolve a set of strategies and there by plans to tape the potential Indian consumer market. To capture such a great opportunity, only good product and brand awareness will not be sufficient but proper distribution channel must be there [1] Reason For Selecting The Topic There are many companies competing in the Indian FMCG market he Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the economy. India is a consumer oriented market. The company entering the market must enter by having a aggressive marketing strategy and considering the need of consumer, and then only they can survive. Now a day‘s all consumers have become conscious regarding the quality of the product use daily. The consumer has multiple option of same product to choose from different brands. Before buying a product the consumer compares the product with other brands and after satisfying he buys it. There is on monopoly in this market. It‘s a open market any company can enter at any time and leave whenever they want. There are many big companies in the FMCG market in India companies like Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi and others. All companies now a day enter the market by a aggressive marketing strategy which helps them to capture the market as much as possible. Marico is one of the companies having strong marketing strategies. It has the best rural distribution channels. Because of its marketing strategy poor people can use goods of luxurious standards by buying small sachets. [2] Important Reason For Choosing The Topic. 1) The aggressive marketing strategy used by the company in capturing both the rural and urban market. 2) The strong rural network and efficient distribution network of the company. 3) The strong standing of the company in the market with such strong product profile and maintaining the price and quality of their products till now.. 4) The continuous improvement in their product, and giving them best possible product 5) Low pricing and high quality of the product. [3] Importance Of The Study The scope of studying of marketing strategy and marketing of products in rural India •Agriculture is the main stay of live hood in our country 70% of Indian population directly or indirectly depends on agriculture. The Indian farmers are diverting from traditional crops and new techniques of production. The study will help farmers interested to grow cash crops. •The findings of the study mainly the facts related to production, area covered, and new marketing strategies are a useful statistic for understanding the market. •The study is useful with relevance to changing marketing strategies, geographical factors. •In relevance of the FMCG market this study is useful for studying the hold of marico in the Indian market •The study is important as it through light on:A) New strategies for marketing FMCG products b) Launching of small sachets for rural area c) New techniques of packaging d)The strong connectivity to rural India •The study is important as the recommendations and suggestions given will be useful to overcome the problems and constrains in marketing of FMCG products. •The study is useful as it highlights the problems and constrains in marketing product. Thus it can be stated that study has a vast scope depending upon its objectives and subject matter. The study is also important as something useful will be output in terms of finding recommendations and solutions. [4] 3. 7. To study the marketing process.Objectives Of The Study. 8. 2. To study the importance of product positioning. To enhance long-term value of company brands by achieving excellence in distribution performance. To study How Marico enhances its growth. To study the competition faced by the company. 4. 1. [5] . To study various marketing strategies. To know the organizational structure. To know Marico‘s international business. 5. 6. A project cannot be made without using proper methodology. I had asked several questions to the super distributor to collect relevant information for project. There are two types for collection of data: 1) Primary Data Collection.Methodology. And a report was made by their feedback and view about the product. 2) Secondary Data Collection. 2) Questionnaire Method: In this a list of several questions was prepared to be ask to the consumer and the regional marketing head and distributor to collect information by getting its answers. Here. 3) Survey Method: In this a survey was carried out by asking few questions to the customers using marico products. [6] . Primary Data for Market Survey is as follows: 1) Interview Method: For this project an interview is taken personally to collect information. Methodologies refer to the theoretical analysis of the methods appropriate to a field study. Project Methodology helps the presentation of the data in a correct manner. PRIMARY DATA COLLECTINThe data is original in nature and it is collected at first time for a specific purpose is called as ‗Primary Data‘. [7] . Some of the data has be taken from the annual report available online on company site.com. Secondary data is often readily available. And other reference books.Secondary Data: The Data collected from a source that has already been published in any form is called as secondary data.maricoindia. After the expense of electronic media and internet the availability of secondary data has become much easier Secondary Data was collected by pretending to be a potential customer from the Internet And from the website www. difficulties crop up when attempts to devise a definition for FMCG. weekly. the term refers to relatively fast moving items that are used directly by the consumer. prefer fresh food articles and therefore to buy relatively small quantities more frequently. The moot question therefore. is what industry turnaround threshold should be for the item to qualify as an FMCG. however. However. Thus. Many low-income households are forced to buy certain products more frequently because of lack of liquidity and storage space while relatively high-income households buy the same products more infrequently. Should the turnaround happen daily. Most Indians. Similarly. or monthly? One of the factors on which the turnaround depends is the purchase cycle. The problem arises because the concept has a retail orientation and distinguishes between consumer products on the basis of how quickly they move at the retailer‘s shelves. although popular and frequently used does not have a standard definition and is generally used in India to refer to products of everyday use Conceptually.Introduction To FMCG Industry FMCG Concept and Definition: The term FMCG (fast moving consumer goods). typically. Further. the purchase cycle for the same product tend to vary across population segments. the purchase cycle also tends to vary because of cultural factors. a significant gap exists between the general use and the conceptual meaning of the term FMCG. [8] . Anti-lice Treatment. Post wash hair care. Caivil. Black Chic. Marico‘s Products and Services in Hair care.Introduction To Marico Ltd. Marico's branded products are present in Bangladesh. the Middle East. Nihar. Hair & Care. Malaysia and Vietnam. Manjal. Saffola. Male grooming etc. Kaya. other SAARC countries. Marico‘s brands and their extensions occupy leadership positions with significant market shares in most categories . Marico is present in the Skin Care Solutions segment through 103 Kaya Skin Clinics and Derma Rx clinics in India. Marico was incorporated in 1988 and during 1990 took over the then 40-year old consumer Products business of The Bombay Oil Industries Limited. Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. Hair Oils. Skin Care and Healthy Foods Generated a Turnover of about INR 31. Singapore. Fiancée. Bangladesh.Revive. [9] . Shanti. Marico Markets well-known brands such as Parachute. Singapore and Malaysia. Ingwe.X-Men. De rma Rx.Coconut Oil.3 billion during 2010-11. South Africa. Premium Refined Edible Oils. HairCode. Code 10. L‘Ovite and Thuan Phat. niche Fabric Care. Egypt. Mediker. The Middle East. Aromatic. Ghulam Mostafa. Hema Ravichandar. 3153.Consumer Products Chief Executive Officer .Company Profile(National Level) Name Date of Establishment Revenue Market Cap Corporate Address Marico industries Ltd 1988 526. Rakesh Pandey Mr. Atul Choksey.HR and Strategy Chief Executive Officer – Kaya Chief – Technology CEO .Krishnachandra Marg.Milind Sarwate Mr. Maharashtra Harsh Mariwala Harsh Mariwala Anand Kripalu. Saugata Gupta Mr. Hemangi Wadkar Household & Personal Products Rs. Officer [10] .2 Million (year ending Mar 2011) Hemangi Ghag Axis Bank Ltd.542 ( USD in Millions ) 93334. HSBC. ICICI Bank Ltd Price Waterhouse & Co Management Details Chairperson MD Directors Business Operation Financial Total Income Net Profit Company Secretary Bankers Auditors Top management Name Mr. in Millions) Rang Sharda . Citibank. 23740 Million (year ending Mar 2011) Rs. Vilas Shirhatti Mr. HDFC Bank Ltd. B S Nagesh. Vinod Kamath Designation Chief . Vijay Subramaniam Mr.International Business Chief .Finance and IT and Compl.1976666 ( Rs. Harsh Mariwala. Bandra Reclamation Bandra Mumbai-400050. Hemangi Ghag. Bipin Shah. Awards & Recognisation Manufacturing & Supply Chain IMC Ramakrishna Bajaj National Quality Award (RBNQA) 2009 – Outstanding Achievement Trophy. for outstanding achievement in Safety Management. Rajiv Gandhi National Quality Commendation Certificate 2009' in the large-scale manufacturing industry Food & Drug Category. Kerala State Safety Award 2010 in the food product category. Silver' at the Greentech Environment Excellence Award 2010. Greentech Safety Silver Award 2010. [11] . Sustainability Kerala State Energy Conservation Commendation Award 2010. Good Green Governance Award. in the large scale energy consumers category. Logistics and Packaging Awards IMC Ramakrishna Bajaj National Quality Award (RBNQA) 2010 (Certificate of Merit). Third highest honor 'Quest for Excellence' at the International Asia Pacific Quality Awards (IAPQA). Food Supply Chain Innovative Company of the Year' Award at the KPMG Supply Chain Leadership Council Food. Retail. in the FMCG sector. 2 EDGE Awards – the Diamond EDGE Award for 'Mobile–based solution for boosting productivity of farmers' and another EDGE Award for the 'Darpan' project.Information Technology Adjudged as one of the Top 5 winners of the most prestigious CIO ASIA 100 Award 2011. in the manufacturing category. [12] . for excellence in IT application. Great Minds Challenge for Business Award – 2010' in the Business Analytics category. NASSCOM CNBC TV18 .IT User Award 2010. other parts of Africa -New Product introduction in IBG Markets Grow Kaya profitably in India and overseas -Integrating Derma Rx Inorganic Growt Hold margins in a band – focus on growth. [13] .Future Growth Expand Markets where we have dominant share -Parachute coconut oil in India and Bangladesh -Saffola – Premium healthy refined edible oil -Tapping Rural growth Increase Share in other categories -Hair Oils in India -Hair creams & gels in the Middle East Introduce new products – larger size than in the past -Saffola Arise and Oats (for example) Geographic Expansion -South East Asia. the Company entered into an agreement with M/s. 1988— The Company was incorporated on 13th October.f.D. edible oils.In December.The Company entered into a Registered Users Agreement dated 26th September. Revive and S 1989-The name of the Company was changed to Marico Industries Limited w. 1994.Marico Industries Ltd is focussing on relaunching its SIL brands in its `healthcare'business.C. under the name of Marico Foods Ltd.History 1862 -Kanji morarji started a small trading business by the name of The Bombay Oil Industries. 400 crore consumer goods company has beenselected as a Top Performing Global Growth Company from India by the WorldEconomic Forum. The Company is engaged in the business of manufacture and marketing of branded personal care products. Saffola. 31stOctober. the Rs. 1995.Agreements dated 21nd February 1994 and 16th November 1995 between the bCompany and The Bombay Oil Industries Ltd. The Company‘s products are sold under the brand names Parachute. Rasoi Industries Limited for purchase of its unit located at M.The Company has acquired the Brand `SIL' from KFL in March for an aggregate consideration of Rupees Three crores 1997-Marico Industries Limited. Marico‘s Hair & Care.I. withBOIL for the use of the brands "Parachute" and "Saffola" for an initial period of 3 years commencing from 1st April. fabric care products and processed foods.e.. It obtained the Certificate of commencement of business on 22nd November. 1999. New Delh. Jalgaon 1990. Industrial Estate. for using the Trademark "Parachute" and Saffola". after a successful repositioning of its Saffola and Sweekar brand [14] . Sweekar. 2001. The rate of dividend is 8%p.Marico won the 'Best in Class' Award (Second highest) for theLarge Manufacturing category -Marico won the Greentech Environment ExcellenceAward 2009 in the Silver Category in FMC [15] . a blend of Ricebran and Kardi oils in a 70:30ratio. 2002. 2006-Marico Ltd has informed that the Company has reached an agreement to acquire thebrand 'Nihar' from Hindustan Lever Ltd (HLL). 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.Marico Industries launches 'Saffola Gold.coconut oil and perfumed hairoils. thefirst oil to combine coconut oil with antidandruff properties in a single hair oil. Anand Kripalu as an Additional Non-Executive Director onthe Board of Directors of the Company 2008-Marico Jalgaon was awarded the CII National Water Management Award -Marico wasranked 2nd in Sourcing Platform Benchmarking Program 2009 -Asia Pacific QualityOrganization (APQO) .a.2002 and approved by shareholders on July 18.2000. Nihar gas a current annualized turnoverof about Rs 1200 million spread over two segments . Ratio -. 2004-Announces 1:1 bonus issue.-Marico Industries have acquired a controlling equity interest in Sundari LLC.1:1 one equity enhanced after bonus issue of equity shares made by the Board on April 18. 2003-Marico Industries Ltd have appointed Erehwon consultancy firm for initiatives of innovation in marketing and management.The Company launched Parachute Dandruff Solution Coconut Hair Oil in Calcutta.Marico Industries has launched the Revive Anti-Bacteria starch. which has dual benefits of lowering cholesterol and enabling food cooked in it toabsorb lesser oil.Increase in authorized share capital of the Company from Rs 300 million to Rs 600million. 2007--Marico Ltd has appointed Mr. 2010-Harsh Mariwala was awarded the Ernst & Young `Entrepreneur of the Year Award'2009 in the Manufacturing category. [16] .300 million by selling its products in India and 25 countries across the globe. 2011. Parachute Advansed Ayurvedic Hair Oil and Saffola Oats.Launching various prototypes like Saffola Arise. The company recorded a turnover of Rs 1. Manjal. the sales reach has increased largely on the back of penetrative pricing in Shanti Amla and lower price point packs in Parachute. As part of the focused investment on a narrowed set of brands. During FY10. In recent times. an ayurvedic soap brand acquired with an intent to go national. Marico‘s rural sales clocked a faster pace of growth than its urban sales. Rural sales comprised about 27% of the company‘s Indian FMCG sales as compared to 25% in FY10. such as Saffola and Parachute. This has improved the quality of the sales call and provides the opportunity to sell-in a wider range of Products. [17] .Focus The company has set its focus on taking initiatives to drive greater rural penetration over the last two years or so. is targeted at Kerala and Tamil Nadu. edible oil brand Sweekar and Hair & Care‘s Silk-n-Shine have been put on maintenance mode. The idea is to keep the non-focus brands alive and milk them for steady sales and profits even as further investments for growth get channeled to a narrower set of brands. to drive growth. The company has decided also to focus on its investments and efforts behind its power brands. It has endeavored to reach a larger number of retail outlets in the rural areas directly through its distributor sales force rather than depending on wholesalers to service these outlets. Amar trade line has a very well organized working structure. Amar Trade Line at present also holds the super distributor for Philips lights. Their staff is well organized and knows the market very well.An Introduction To The Organization Amar Trade Line cam to birth in the year 1950. They offered them to become the super distributor for marico in the year 1995. They have qualified staff working with them. They posses their own transport vehicles. or any other. They have maintained their standards very well. As then time passed their hard work came into the notice of Marico Company. the company does not have any problem regarding financial. distribution. The company gave them the distributorship of hair oil for Ahmed Nagar and Nashik district. It was started by MR Ashish Shah. In the past time. They started their firm with the distribution ship of Nestle Company for Ahmed Ahmed Nagar and Nashik district. Because of their good service they have been received many awards from the company Organizational Profile(Agency Level) Name Owner Manager Pilot Sales Representative Sales Manager Accountant Amar Trade Line Aashish Shah Suyog Shah Somnath Sonavne Mahindra Pagare Kamlesh Chandan [18] . Silk n shine. The company has a product called safolla arise which is a basmati rice which is light in digestion. [19] . after shower cream. Health Care The company has premium edible oil which is best for heart.Product Profile Of Marico Hair Care In the hair care sector marico has two categories: Pre wash. nihar . hair n care.Parachute . Skin Care The company provide several Cosmetic dermatological solution through kaya shin clinic. Post wash. It provides various products for protecting the skin. With the customer as the focus of its activities. an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors. and keep the customer. Thus. In other words it mean a bridge connecting the producer at one end and the consumer at other end. Marketing is used to identify the customer. wears traffic. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. [20] . and exchanging offerings that have value for customers. satisfy the customer. It proposes that in order to satisfy its organizational objectives.Introduction To Marketing And Marketing Strategy INTRODUCTION The word market is derived from the latin word ‗Marcatus‘ meaning merchandise. Definition Marketing is defined by the AMA as "the activity. communicating. and society at large. marketing does not refer to exchange of goods between the seller and the buyer. delivering. partners. which carries from producer to ultimate consumer. set of institutions. trade or the place where business is conducted. clients. The common usage of the market means a place where goods are brought or sold. and processes for creating. In simple words marketing is a process. It also refers to creating demand for the goods and services. Meaning Marketing is a business activity concerned with making goods and services available to customer at a place and time desired by them. marketing management is one of the major components of business management. 2. 5. 3. 5. Should be based on consumer demand. Helps in innovation. Marketing strategy is a set of objectives. 1. Helps in the growth of market share. Should be based on facts and valid assumptions. 2. policies and rules that leads the company's marketing efforts. it focuses on the ideal product mix to achieve maximum profit potential. Should be simple and short. Market position. [21] . The strategy should be clear. The company can develop marketing strategy through its market segmentation. The company has to choose the best option from several marketing options. Ideally drawn from market research. It serves as a guide. Need of Marketing Strategy. 4.Marketing Strategy Marketing strategy integrates an organization's marketing goals into a cohesive whole. Helpful in calculating future risk. Strategy should be flexible enough to change its plan according to the trend. The marketing strategy is set out in a marketing plan. 3. channel choice and other marketing elements. It is the marketing approach to accomplish the bread objective of the marketing approach to accomplish the bread objective of the marketing plan. Characteristics of Good Marketing Strategy 1. 4. standard of living. Product Positioning Strategy: In this the product is launched according to the area. Product Strategy: In product strategy the company has a product for each age group. 4. so that all area will be covered properly and at low cost. and demand. Promotion Strategy: How the product is to be promoted in front of the public what all thing are essential for its promotion are included in this. 2. [22] . Place Strategy: In this the company works out on how can it palce its distributors. 5. Price Strategy: This includes the how the company carries out the pricing of product and how can it lower its prices. and other in other categories 3. gender.Marketing Strategy Of Marico 1. Skin Care. globally. If you see. than each of the oils singly.Capital Standing of that area. CEO. Following with the Are. Nihar coconut oil is a brand of pure coconut oil that has used the platform of purity to become the market leader in the eastern region. The company has launched this product in all big cities where people are health conscious.Saugata Gupta. it is very difficult to run a business that is against a consumer trend. Marico Marico has segmented its products on the basis of Hair Care. Consumer Products Division. We are lucky that our products and plans fit into the trend of wellness . The brand is particularly strong in the states of Bihar and [23] .Population. Health Care.Product Positioning Strategy The FMCG major rides the growing wellness trend in the country with its Saffola range. a right combination of Safflower Oil and Rice Bran Oil is more effective in reducing cholesterol. Saffola: Studies have shown that. to service the rural sectors. Revive has over the years delivered to consumers the convenience of instant cold water starching at home. Parachute is premium edible grade coconut oil. Parachute is also available in pouch packs. [24] . In fact over a time it has become the gold standard for purity. a market leader in its category. This is the most low cost high quality starch available in market. Revive Launched in 1993 in India by marico. Parachute is positioned on the platform of purity. increasing penetration. Nihar coconut oil speaks to young mothers whose lives revolve around their families. While the positioning of Parachute has always been on purity. Mostly used in villages. Synonymous with pure coconut oil in the market.Jharkhand. this brand created a market where none existed. Parachute after shower hair cream was mostly launched by considering the need for youth. Parachute Advansed body lotion.This is targeted in the segment where people didn‘t have any known brand for skin care at an reasonable rate. the only moisturizer with 100% Natural Moisturizers and goodness of coconut milk makes skin delightfully soft. This product is launched in the area where thr population of youn g generation is more. [25] . Rs 5 and Rs 9respectively.Product Strategy Marico has product in all range which are required for day to day use. Thus the blister pack. Parachute Jasmine has been positioned as alight coconut based oil with a distinctive [26] . Apart from advertising. An advertising campaign that helps people become more aware about heart risks and encourages them to take preventive action is being run. As the completion in this market is increasing the company is on its part of delivering more product in their product portfolio for capturing the Indian and international markets. In addition. Saffola Gold. During Q1FY06. Saffola enjoys a strong positioning on the good for heart and health platform. health runs etc. Hair Oils Last year Marico re-launched Hair & Care with a claim of ―Up to 50% less sticky than other oils‖. Marico has launched packs at low price points in order to facilitate the conversion of loose oil users of coconutoil to Parachute and grow the market. a blend of refined safflower oil and refined rice bran oil. making Saffola available in three variants. The relaunch has strengthened Marico‘s position in the Non-Sticky Hair Oils segment with Hair & Care showing healthy volume growth. the brand has targeted share growth in specific markets through micromarketing initiatives. the brand invests in surround activities like heart check-up camps. Saffola: Saffola is Marico‘s refined edible oil brand operating in the premium ROCP (Refined Oil in Consumer Packs) category. Radio and outdoor advertising are supporting the television media campaign. Last year. it rolled out a campaign targeted at youth in the North to coincide with the ―lagan‖ season. the 20 ml pack and the 50 ml pack are available at Re1. Parachute: in the recent past. The franchise aims to grow without sacrificing premiums. Marico launched a new Saffola variant. The brand has been exploringoptions for providing greater value to the consumer. Lastyear Silk-n-Shine adopted an innovative strategy for branding with its association with the popular programme 'Indian Idol' on SonyEntertainment Television. Mediker Plus Anti Lice Oil Mediker remains the only significant player in the anti-lice shampoo and oil treatment market. Mediker Plus has been launched with a strong benefit of 1 Hour . a value added coconut hair oil leverages Parachute‘s equity and is positioned on the nourishment platform with the addition of extracts of almond & hibiscus. it has commenced prototyping a completely natural variantof Mediker in Maharashtra. The brand continued with experimentation in advertising and promotion. The movie has met with reasonable success giving the brand mileage with the target audience. Shanti Badam Amla re-launched itself last year with an improved formulation – Shanti Amlareinforced with ―badam‖.providing a perceptibly efficacious solution to the consumer. Silkn-Shine must play its role in market expansion by making the categoryaccessible to the mass market. Parachute Sampoorna.Hair Potion. category. which earn a higher margin as opposed to pouch packs. Silk-n-Shine With Silk-n-Shine. In Q4 FY05. Recently. [27] . schools and centers with ―urban-poor‖ populations. it experimented with in-film brand placement in the movie ―Kya Kool Hai Hum‖ to connect withcollege going audiences. Marico expanded the Mediker product range with the introductionof Mediker Plus Anti-Lice Oil in the Southern Market. Media campaigns on the brand are being complemented by on-ground support activity of visitinghomes. The company has focused on growing its rigid packs. The brand was launched nationally in the previous year. In July 05.Lice Out. In order to differentiate itself from other Amla oils in the market. Marico had entered yet another new segment in Hair Care . Having.jasmine perfume. All these things help in reducing the transport cost of which also brings down the product cost. Hair oil Price(Rs) Cooking oil Price(per li) Fabric care Price(Rs) Body lotion Price(Rs) After shower cream Price(Rs) Parachute 200ml 70 Saffola 75 Revive 60 Parachute200ml 100 Parachute cream 48 Vatica 200ml 95 Postman 85 Easy 75 Dabur 120 Belcreame 60 [28] . The following is the comparison of price of products with reference to price of other company. according to the availability of raw material.Price Strategy The price of products offered by marico is very low as compared to other products. This is possible because of its planning and geographical positioning of its factories. The positioning of its distributors. Thus. Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverage able strength. They have chosen this company because of its strong distribution channel and connection with rural areas.Place (Distribution) Strategy Marico is one of the companies having very strong urban and rural distribution network. through their association with Marico for the distribution of Top Ramen products on a national basis. Rural Sales & Distribution: Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline. Marico's distribution network covers almost every Indian town with a population of over 20. [29] .000. 1 out of every 10 Indians is a Marico consumer. The chart below depicts Marico's distribution network in the urban & rural markets: Distribution Alliance: The distribution strength has been recognized by Indo Nissin Foods Ltd. Saswad.6 million retail outlets spread across the country. [30] . Pondicherry and Daman Supported by subcontracting units. A dedicated team of Territory Sales Executives and Pilot Sales Representatives distribute Marico's as well as alliance brands through this vibrant network.Infrastructure. Every month. Jalgaon. It has become possible for marico to create a strong distribution network because of its perfect posting of manufacturing units. 850 direct distributors 4523 selling vans infrastruct ure 120 super distributors 3600 small stockiest Location. Quality of our distributors Quality and number of the distributor field force Up gradation in the role of the company's front-line sales force. 56 million consumer packs are sold to about 1. Sales Capacity: They have made significant progress in the areas that enhance sales capacity. Marico‘s manufacturing facilities are located at Goa.8 million households through 1. Kanjikode. [31] . As their targeted user of their product is the common man. To maintain the brand loyalty of its consumers marico keep on improving the quality n packaging of its products. D) Outdoor Media: The Company uses a mobile van carrying their advertisements and free samples in the village and rural areas. The Company gives advertisements through the use of print media. B) Distribution of free samples at public places. School.Promotion & Advertisement Strategy ―Advertising is a public announcement to inform and persuade people to buy a product. There are different media available today by which advertisements are given by the company. [32] . The company had distributed free sample of its hair oil in places such as Malls. putting up an attractive banners in front of their outlets. etc. Be more. It symbolizes the commitment of the company to offer new and quality products to its consumers. Advertisement is the strong media of sales promotion. C) Print Media. They have taken common man as its brand ambassador. Magazines. Every day is brand statement by marico. magazines. a service or an idea‖. The Company has not taken any celebrity as its brand ambassador. it had distributed its sample to many people through attaching it in news papers. To bring their product into the notice of the people. Giving free sample of product is new way of advertising. like Newspaper. The different Medias used by marico are stated below A) Brand Ambassador. Marico targeted the demand in this sector and was the first to launch small sachets of all its products. Marico has launched small packing of their products like hair oil. even though in small quantity. shampoo all other luxury good So that even the common man can use it. Marico has very intelligently catered the demand for small packing of their day to day used goods. [33] . India is only the market where such small packing is available. As the companies target is to reach every small village in India they use marketing techniques which can be understood by people who are not highly literate. The company captured this market on the correct time and cashed it successfully.Small Packing. The small packing of the goods are sold extensively sold in the small villages of India. 8% pricing and the balance coming from the new business in Vietnam. Marico‘s International FMCG business (its key geographical constituents being Bangladesh. MENA (Middle East and North Africa). It continued to ride on the growth momentum backed by strong thematic campaigns and new launches. The organic growth during the year was 24%. Caivil and Black Chic the two lead brands. The business growth (excluding foreign currency impact) was however higher at 27% comprising 17% volume growth. have [34] .International Footprint. South Africa and South East Asia) comprised 23% of the Marico Group‘s turnover in FY11. Parachute continues to play out its market expansion strategy by converting loose oil to packed branded coconut oil while maintaining its strong leadership position. These growth rates would have been higher had the MENA region not seen political unrest in Q4FY11 Bangladesh In Bangladesh. South Africa The South African business continued grow handsomely and recorded a growth of 33% aided by the acquisition of Ingwe. The brand has gone from strength to strength and was recognized as the 2nd most trusted brand in Bangladesh across categories last year MENA (Middle East and North Africa) Marico has created a manufacturing hub for MENA in Egypt the long term trends in demand for personal care products in the region remains positive. During the near term. The Company‘s international business continued to grow handsomely and registered a growth of 22% in FY11. the growth in the immediately ensuing quarters may be unpredictable. the company will be cautious about the overall level of investments in advertising. Meanwhile it is also working on alternative sourcing options in order to de-risk its supply chain operations. [35] . one of the most successful Vietnamese FMCG companies. beauty cosmetics and sauces / condiments categories. the company‘s premium cosmetics brand ranks amongst the top 5 premium cosmetics brands in Viet. in 2001.been growing steadily and improving their market shares in the ethnic hair care market in South Africa Malaysia Marico‘s Malaysian business has grown at a very healthy growth rate and has responded well to the brand restage and the renewed thrust to distribution in Code 10. XMen is a leading player in the male grooming segment in Vietnam and is the 2nd Most Trusted Personal Care brand in the country. The integration exercise of distribution and manufacturing transition has been completed as planned. Phan Quoc Cong and his partner. by Dr. L‘Ovite. ICP was founded. L‘Ovite. With over 35% market share. Its brands (XMen. Thuan Phat and others) have a significant presence across personal care. Entry Into Vietnam Marico increased its commitment to the South East Asian market by taking up 85% equity in International Consumer Products Corporation (ICP). it leads the men‘s shampoo category. Nihar Parachute Hair Cream 54% 96%* 80%* 1 1 1 Hair Oils 23% 2 Hair Cream (GCC) Dermatology led skin solutions (India) 27% 1 Kaya Skin Clinic 35% 1 For year 2010-2011 [36] .Data Analysis And Interpretation Brand Category Indicative Market Share (%) # 46% 80% Rank Parachute Parachute Coconut Oil (India) Coconut Oil (Bangladesh) Super Premium Refined Edible Oils Anti Lice Treatment Instant Fabric Starch 1 1 Saffola Mediker Revive Parachute Jasmine. Shanti Amla. Hair & Care. 0 120 3600 [37] . Distribution network Sales Territories Towns Covered (‗000's) Distributors Super Distributors Stockists Interpretation In the above table we can see the distribution network of marico. 2 position in their respective segments over around 90% of its turnover. What all territories does it cover in India with the help of distributors. Urban 135 3. super distributors and stockiest. All the brands gives a though fight to its competitors in the FMCG market.2 850 Rural 35 11.Interpretation Marico brands have a no 1 or no. Major players in hair care sector Sales Dabur 22 Marico 45 P&G 25 Godrej 21 Others 9 17% 21% 7% 18% 37% Interpretation The hair care market in India is estimated at around Rs. 3. [38] .800 Cr. Godrej occ-21% others-9%.. Marico is the leader in Hair Oil segment with market share of 45% per cent. P&G occ -25. Dabur occ-22%.%. crore) 400 286 350 232 300 189 250 169 200 113 Series 1 150 87 100 50 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Interpretation In the above chart we can see that in the year 05-06 the net profits seem to be 87Cr and subsequently increased year after year. [39] . And in the last year we can see the company gaining tremendous profit. As compared to the year 05-06 and year10-11 the company shows an increase in profit around 200%.Profits of the company for the financial year 2010-2011 Net profits (Rs . IV. The firm has very few transport vehicle which creates a delay in delivery. They are facing problems of manpower because of non-availability of qualified people. They are not focusing on the demand of rural villages which is their main market of consumption. III.Findings & Recommendation. [40] . The firm does not have sufficient space if they want to increase their sales area. They face liquidity problems as they have to pay total payment in advance I. II. Low promotion. reliability. High dependence on Parachute. Strong rural connection. [41] . Weakness Low export level. Enter the global market. Growth in international markets . Threat y Geographical Disadvantages. improved technology. and skilled as well as dedicated manpower is necessary and a strong product profile. Increasing competition. Competitive product pricing. Chance to create a new product line. Devaluation of money. Low company image. Opportunity y To enter the food & snacks market..SWOT Analysis Of Marico Ltd The potential growth of the FMCG industry in India is very prospective due to the country‘s large population and relatively high number of competitors. Government regulations. Attractive design and new packaging. To keep up this upward trend absolute dedication to understanding and fulfilling their customers‘ need with the appropriate mix of standard service. strength Skilled human resource. After days of doing the research. . Marico is trying to give maximum satisfaction to their customers with its new innovation and product quality. This research was also a tool to find out which product/brand of Marico has the highest sale among all the brands. But in some cases the more competitive environments provides better opportunity to grow. Marico delivery system and sales promotion system is very organized.V. It was found that Marico has a good brand reputation in the market The above study shows us the growth of the company in all sectors by using and applying its marketing strategy‘s at the right place and right time. is not easy to get the right conclusion. How a company works in market and what the policies they adopt to promote their product and how the company manages their organizational structure. but that was the great time for us to learn and observe the market. the position of Marico is not going to be affected that much. They have very nice Communication and distribution channels. The marketing part of this company is very organized. Conclusion Finally. Despite so many regional as well as competitor into the market. The above study shows us that around 30% market share (640 billion) is acquired by marico Company. after the hard work I found some opinion at the end of the project report in the form of conclusion. The survey was successful to fulfill the objective. [42] . Do you use FMCG product Yes No 2.Annexure Questionnaire 1. From which sources did you get information about these products? Newspapers Television Friends Others 4. Which FMCG company product you use Marico Hindustan Unilever Dabur P&G 3. Are you aware of marico products? Yes No [43] . Do you use marico products? Yes No 7. Have you seen any advertisement of marico product? Yes No 6. [44] . Do you want to buy Marico products? Yes No Can‘t say now 8.5. Which factor do you considered while buying marico products Quality Price Results given by the product If other than please specify………………. Do you face any side effects? After using the products? Sometime Never Often 12. ………………………………………………………………………… ……………………………………………………………… [45] . From how long do you use Marico products? Less than a year 1 to 3 year More than 3 years 10. If not than give the suggestions for improvement. Have you seen any advertisement of marico products? Yes No 11.9. In which product of marico do you want improvement? Price Quality Arability 13. Do you satisfied with the product result? Yes No. Sex: ……………….: ……………………………………… 14.. Contact No. Qualification: ……………………………………. Are you satisfied with the promotional scheme of Marico? a) Yes b) No [46] . Age: …………………….Name: ……………………………………………. com www.S Ramaswami. -By James w.marico.economictimes.Bibliography Marketing Management -By Philips Kotler (11TH Edition) -By V. INTERNET WEBSITES: www.com www.com [47] . Taylor Marketing Management Competitive Marketing Strategy Information Taken From Idea cellular Ltd.com www.com www.wikiepedia.Namakumari. Information Taken From website of Company and other websites.businesstandards. & S.google. In India Marico has grown every year. There are many FMCG players who are running their business in India in different segments. Godrej Oil.Executive Summary Marico Industries Limited is the market leader in organized Hair oil market and other products.Kamani Oil etc. P&G and in edible oil segments Fortune Oil. The products offered by Marico Ltd. Main players in hair oil segments are HUL. [48] . have not only created a long lasting customer delight but has also given its shareholders a value addition. Dabur. Time and again Marico comes up with different variant of products to satisfy the customers and even enhancing its own image by doing so.