Advertising & Sales Management

Assignment

On

Emami Group

{Marketing mix with focus on Promotion (P)}

Submitted to Prof. Shalini Srivastava

Submitted by: Ajay Chadha

(MBA IIIrd Sem.)

ACKNOWLEDGEMENT

No task is a single man’s effort Co-operation and Co-ordination of various people at various places go into the successful implementation. It is a great pleasure to have opportunity to extend my heart-felt thanks to everybody who helped me through the successful completion of this project.

It would be prudent to commence this term paper with a sincere tribute to all those who played an indispensable role in the accomplishment of this work and obliged whenever and wherever their able guidance was required.

I would like to thanks our Dean Ms. Latika Sahni and our college for their support.

Finally, I would like to express my deep sense of gratitude to Prof. Shalini Srivastava for providing me regular guidance, full cooperation, support and encouragement throughout the project. Under her experienced teaching and guidance, my knowledge has increased resulting in achieving better results.

Index

Sr. no. Topic Page no.1. History2. Brands

History

The inception of Emami Group took place way back in mid seventies when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their high profile jobs with the Birla Group to set up Kemco Chemicals, an Ayurvedic medicine and cosmetic manufacturing unit in Kolkata in 1974.

It was an extremely bold step in the early seventies when the Indian FMCG market was still dominated by multinationals. Several such companies headquartered in Kolkata were considering shifting out of West Bengal due to labor unrest and political problems.

But against all odds with a vision of combining the age old wisdom of Ayurveda with modern manufacturing techniques for creating winning brands the company was started with a meager amount of Rs. 20,000.

Emami Talcum, Emami Vanishing Cream and Emami Cold Cream were great favorite brands with the quality conscious consumers in the mid-seventies. The company soon became adept in selling beautiful dreams to Indian women interested in finding their own identity. The signature tune of Emami played over radio and TV became a household favorite.

In 1978, Himani Ltd (incorporated as a Private Limited Company in 1949) had become sick unit and was up for sale. Himani, almost a 100 year old company with good brand equity in Eastern India and a well laid out factory in Kolkata, was producing a number of cosmetics. Mr. Agarwal realized the opportunity and acquired Himani though for their young organization it was a tough task to mobilize resources for buying a sick unit and even tougher to turn it around to a profitable venture. The degree of financial risk involved was enormous considering the small capital base of the company in those days. However Mr. Agarwal, supported by Mr. Goenka decided to go ahead with the deal which later on proved to be the turning point for the organization.

Nineties was very eventful for Emami. The next flagship brand of the company Navratna Cool Oil came in the nineties under the Himani Umbrella and the second factory was opened at Pondicherry to expand production. Navratna over the years has become market leader in the cool oil category.

The introduction of new brands continued and the distribution network of the company was extended to South India with Navratna spear heading the process. In 1995, Kemco Chemicals, the partnership firm was converted into a Public Limited Company under the name and style of Emami Ltd. In 1998, Emami Ltd was merged with Himani Ltd and its name was changed to Emami Ltd as per fresh certificate of incorporation dated September1, 1998.

In 2000, with a view to concentrate on its core FMCG business, Emami's investment undertaking was demerged and Pan Emami Cosmed Ltd. issued its fully paid up shares to shareholders of Emami in the ratio of 1:1. In 2003 a new factory unit was set up at Amingaon, Guwahati. A Public Issue of 50 lacs Equity Shares of Rs2/- each at a price of Rs. 70 followed in 2005. The issue was oversubscribed within few seconds of its opening with an overall over subscription of 36 times of the issue size. The share price sold at Rs. 70 today is quoted in the stock market as Rs. 210.

In 2005 Emami created a marketing history in India by launching Fair and Handsome, the first fairness cream for men.

In 2006 the company decided to introduce a Health Care Division and a number of new brands of Ayurvedic OTC medicines. The company has taken up the challenge of growing this new division with a dedicated and enthusiastic team working on this project.

Among the brands created by the company, today Navratna brand is Rs.300 crore followed by Boroplus brand standing at Rs.250 crore and Fairness family standing at Rs.100 crore. Sona Chandi Chyawanprash, Menthoplus and Fast Relief also among the top brands in their respective categories.

In 2006, J B Marketing & Finance Ltd., the erstwhile marketing company of the Emami Group merged with Emami Ltd. and the total turnover of Emami including sales in domestic and export market stood at Rs 516 crores at the end of the fiscal year 2006-07.

Emami Limited with an investment of Rs 700 crore has acquired major stake in Zandu Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and Emami. Post the acquisition of Zandu Pharmaceuticals a century old household name in India, some of its prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam Churna are also under Emami’s basket of brands.

Within three decades, the company has grown into a huge Rs. 1000 crore Emami Ltd under the flagship company of the Rs.3000 crore Emami Group.

Today, Emami Limited is led by Mr. R S Agarwal and Mr. R S Goenka with the help of the second generation Promoter Directors from the two families. Qualified and dedicated set of professionals run the day to day operations of the company. Recently a new corporate office “Emami Tower” has been added to the history of the company which houses Emami Limited as well as all the other Group companies in Kolkata.

BRANDS

Navratna Oil Navratna Lite Navratna Extra Thanda Navratna Cool Talc

Boroplus Antiseptic Cream Boroplus Prickly Heat Powder Fair & Handsome

Himani Fast Relief Mentho Plus Hairlife Baby Massage Oil

Sonachandi Chyawanprash Malai Kesar Cold Cream Sonachandi Amritprash

Companies under Emami Group are:-

- Emami Paper Mills Limited- Emami Chisel Art- CRI Limited- South City Projects (Kolkata) Ltd- Advanced Medicare & Research Institute Ltd (AMRI)- Frank Ross Limited - Emami Infrastructure Limited- Emami Retail Pvt Limited (Starmark) - Emami Biotech Limited- Emami Cement Ltd

National Spread

SWOT

STRENGTH

Powerful brands

Pan-India presence

Young and dynamic team

Efficient operations

Celebrity brand ambassadors

Innovative research

Strong financials

OPPORTUNITY

Lots of opportunity as it is a aayurvedic with no side effect

Untapped rural market

People now a days more concerned for health

WEAKNESS

Only weakness is that consumer perception of the brand that realy it contains sona and chandi

THREATS

Biggest threat is Dabur

Other are Zandu which is now owned by parent firm and baidyanath

INDUSTRY AND COMPANY GROWTH

India’s FMCG industry grew 14.8% in 2008-09,

Emami grew 29.1% in 2008-09

Industry overview

India’s FMCG sector is the fourth largest sector with a USD 25-billion size in 2008.

It is a key component of India’s GDP and is a significant (direct and indirect) employer employing three million individuals in downstream activities across small towns and rural India.

The FMCG industry in India witnessed strong double digit growth over the last three years

Strategy

Creating niche categories:

Emami is established in categories like antiseptic creams, cooling oils, fairness and cold creams, talcums and prickly heat powders, chyawanprash, balms and rubificients, among others. We expect to sustain our momentum through low unit packs, deeper rural penetration and entry into nascent segments that could become large categories.

Strong R&D delivering innovative products:

Emami’s strong R&D is working relentlessly to come out with innovative and effective ayurvedic products based on age-old ayurvedic wisdom using modern laboratory practices. Emami expects to ‘invent’ new ayurvedic healthcare categories like we did with men’s fairness cream, responding to emerging lifestyles.

International reach:

Emami’s exports to 60 countries grew 60% in 2008-09, accounting for 13.6% of revenues. We engaged distributors with modern retail formats, strong supply chain and distribution linkages in the GCC (Gulf Co-operation Council) countries. Mentho Plus Balm emerged as the number two brand in its category in Kenya; Boroplus Antiseptic Creamremained number one in Russia, Commonwealth of Independent States and SAARC countries. Fair & Handsomeemerged as the numero uno brand in men’s face care category in the UAE. We entered into alliances with private,government and semi-government organisations to reach customers in urban and even remote markets. Emami’s international footprint is expected to further expand agressively.

Penetrative marketing and distribution:

Emami redefined sales and distribution in consultation with Ernst & Young under project ‘Navodaya’. It targeted consumers in shopping malls and lifestyle outlets. It tied up with ITC Limited to distribute products through rural e-choupals, commencing in Uttar Pradesh and extending to Maharashtra, Madhya Pradesh and Rajasthan. It appointed 11,000 rural individuals as direct-toconsumer distributors, carrying products to rural households in exchange forperformance-based incentives.

Our strategy will be to pursue growth, adopting both organic and inorganic routes, reinforcing our position as a rapidly growing corporate

Future Expansion & New Product Development

Emami’s strong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirations of consumers and convert them into opportunities.

Company is in the process of commissioning another state-of-the-art factory in north-east India, enjoying economic benefits.

Media vehicles:

TV Commercial ads Outdoor advertising Newspaper Radio Bus shelter Danglers (In malls) Backlit display (In malls)

Television commercials

Navratna cool talcNavratna cool talc

Boroplus Prickly Heat PowderAll is well

Sona Chandi ChyawanprashSRK

Navratna cool oilParmanandam

Boroplus winter lotionUnhe banade bawra

Fair and HandsomeWorld's no 1 fairness cream for men

Emami Malai Kesar soap100% moisturising soap

Zandu balmDesh ka balm-Ek balm teen kaam

Boroplus Antiseptic CreamAmitabh Bachchan- Pujari

Himani SardijaSchool children

Fair and HandsomeShahrukh Khan-Hi Handsome

Navratna OilFarmer

Navratna Cool TalcShahrukh Kan-lift

Mentho Plus BalmRavana

Boroplus Winter LotionKareena Kapoor

Himani Fast ReliefHuman Machine

Emami PureSkin Glycerine barEnglish commercial. 30 seconds.

Himani LalimaHindi commercial. 30 seconds.

Print Ads

         

 

Milestones:

Emami enters Indian kitchens with ‘Healthy and Tasty’ oilo Plans to log in Rs 300-crore of business in the first year of launcho Targets the top two spots of the Rs 10,000-crore edible oil industry with a 10% market share by 2015o Product uniqueness to be ‘health’ and ‘taste’ through retention of ingredient purity using 7 stage EuropeanRefining Technologyo Emami plans to produce 2000 tonnes of edible oil per day from its Haldia factory in W. Bengal in a phasedmanner and also intends to set up two more edible oil refineries in east and south coasts

Globeoil award for EmamiKolkata, October 2009- The Rs 2200 crore Emami Group has added a new feather in its cap. TheEmami Group of Companies has been conferred the EMERGING COMPANY OF THE YEAR 2009 byGlobeoil. The recognition is given to companies for their pioneering concepts and activities in theedible oil industry.

Emami Biotech plans Rs 400 crore investment in EthiopiaKolkata, August 2009: Emami Biotech Ltd, a group company of the Rs 2200 crore Emami Group, hasembarked on a Rs 400 crore plantation project in the State of Oromia in Ethiopia.

Emami Biotech Limited signs MoU with Calcutta Tramways Corporation- Moving towards a greener and healthy Kolkata -Kolkata, February, 2009: Emami Biotech Limited (EBL) has signed up Calcutta Tramways Company (CTC) as their firstprestigious client for the supply of 250 Kilo Litre of bio diesel per month to CTC. A Memorandum of Understanding was signedbetween Emami and CTC, today at Emami Towers. (Feb 2009)

Emami’s Bio diesel Gets SGS Stamp, Bonds with Global bestKolkata, January 2009: The bio-diesel sample of Emami Biotech Ltd has now been adjudged asamong the best in the world by the globally renowned SGS Group. The company has obtained acertification from SGS Singapore which has branded its bio-diesel sample as among the finest andpure of its kind produced globally. The certification is the seal for best quality product.