Group 9

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Topics

• Background

• 4Ps (Marketing Mix)– Product– Price– Promotion– Place

• STPD

• Success and Failure

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Parachute – The Brand Portfolio

Parachute

Coconut Oil Oil VariantsCreams /

Shampoos/ Gels

Parachute AdvansedParachute Night repair

CreamParachute Jasmine Parachute Therapie

Parachute Advansed Starzz

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Background - Marico

• 1862 – Kanji Morarji started a small trading business in Mumbai

• 1948 – Bombay oil industries setup by Mariwala family

• 1990 – Marico industries Ltd formed

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Parachute – Shudhta Ki Shakti

• First Branded coconut oil in the country• Journey began 4 decades ago• Switch from Coconut oil in Tins to Plastic• 1996 – Makeover at 2 levels

– Rational - Nourishment, proteins and vitamins – Emotional - Nurturing, caring and mothers love

• Coconut Dream centre (R & D) was formed to work on possible extensions of Parachute brand

• Market Share of 48%

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STPDProduct Segmentation Target Positioning Differentiation

Parachute Coconut Oil

Hair Care All classes Purity Packaging

Weight test

Parachute Advansed

Hair Care Working Women

Strong hair Light

Fragrant

Parachute Jasmine

Hair Care Young and appearance conscious consumer

Non Sticky Light

Fragrant

Parachute Therapie

Hair Care Image conscious, Metrosexuals

Hair fall solution 45 Days therapy

Parachute Advansed Starz(Shampoo)

Hair Care Children Gentle Shampoo

Fun filled fragrance (Strawberry)

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Products (..cont’d)• 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

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Products (..cont’d)• 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.

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Pricing

• Pricing Method– Competitive– Promotional pricing (20%

extra)

• Pricing Strategy– Economy / Value??

• Major factors impacting pricing• Copra and oil seed input costs• Packaging costs• Competitors

During Q3FY09, Copra prices remained firm, they were higher 30% YoY.

To offset the sharprise, Marico undertook price increase 5% increase in the retail prices of Parachute in August 2008, in addition to a 5% price increase initiated in April 2008

Pricing

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

Promotion

Print Media - Magazines, 2 day print adds for parachute therapie,

news papers.

Wall painting

Endorsement by celebrities like Deepika Padukone, Diya Mirza, Yuvraj, Sreesanth

Television - 1 hr champi kiya, Gorgeous Hamesha (parachute Advansed)

Radio - 45 Day hair fall solution,- parachute therapie

Sales promotions - 20% extra , festive season promotion

Internet Advertising- facebook

Mall branding

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• Rural add campaingns- Parachute Anti Loose Oil Rural Campaign Bangladesh, • Convert loose oil buyers into Parachute pouch customers-Tamilnadu• Success stories of add campaingns

• 25% conversion from loose coconut oil usage to Parachute Pouch Pack,

• Van campaingns in the villages with more than 100000 population

• Anti loose oil A total of 12,061 courtyard meeting, 1070 Baul performances and 490 school campaigns were

conducted to reach 25,98,311 rural audiences.

Hair therapie- one day print add (Delhi)

75.3% of the registered customers were sattisfied with the concenpt of 45 days therapie

PLACE• 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.

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– International• Bangladesh• Middle East• Egypt

 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

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Success

• Relevance to the New Age Consumers through Innovation in Packaging and New Product Development

• Parachute - achieved a volume growth of about 8% in volume over Q3 FY09 in rigid packs

• Parachute’s share in the coconut oil category for the 12 months ended December ’09 was 45.9%.

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Failure• PARACHUTE STARZ  - Shampoo for Kids category

Diversion from Core Product Offering

TV commercial – insufficient Buzz about the Product amongst the Kids

Print Ads & ads on Bus Shelters failed to market the product adequately.

• Parachute’s Brand Equity did not work in the Brand Extensions like Hair Gel, Shampoo and Hair Cream + Gel

– Parachute :After Shower Hair Gel

The Yuvi – Shreesanth Ad – Impression Ek din me nahi banta

Parachute Cream Gel:

Mother & Son Ad - Starz Cream Gel - Health + Style

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