Abhishek Marico Project
Abhishek Marico Project
Abhishek Marico Project
PROJECT REPORT
ON
“Outlet/Retailer Validation / Strategy for Optimized Distribution Cost with special focus in
product positing”
“MARICO
INDUSTRIES LIMITED”
Submitted to
Abhishek Kumar
PGDM
2007-09
SINHGAD INSTITUTE OF MANAGEMENT
PUNE-41
DECLARATION
I, undersigned, here by declare that the project entitled “Outlet/Retailer Validation / Strategy for
Optimized Distribution Cost with special focus in product positing” written and submitted by me
to SINHGAD TECHNICAL EDUCATION SOCIETY in partial fulfillment of the requirements
for the award of Post Graduate Diploma in Management under the guidance of Prof.
M.S.Dhanawade, is my original work and the conclusion drawn there are based on the material
collected by myself.
PGDM
Date: SIOM
CERTIFICATE
This is to certify that the Project Report entitled “Outlet/Retailer Validation / Strategy for
Optimized Distribution Cost with special focus in product positing” which is a bonafide work
carried out by Mr. Abhishek Kumar of PGDM of Sinhgad Institute of Management for
fulfillment of PGDM. He has worked under my supervision and guidance and to the best
of my knowledge and belief the work embodied in this Project Report has not formed
earlier the basis for the award of any degree or similar title of this or any other university
or examining body.
Date: - Date:-
Exchange of ideas generates a new object to work in a better way. Every person is helped and
co-operated by others, it is heart bound to pay gratitude and oblige them. I would like to thank
Director Mr. Denial panker, SINHGAD INSTITUTE OF MANAGEMENT for his co-
operation and proper guidance. I am grateful to my internal guide M.S. Dhanaweda for his
encouragement, proper guidance and his ever willing nature to provide a helping hand. I would
also like to take an opportunity to thank the computer lab, the library & all the members of the
institute and the organization for expanding my knowledge.
ABHISHEK KUMAR
INDEX
TABLE OF CONTENTS
Abstract (i)
Declaration (ii)
Certificates (iii)
Acknowledgement (iv)
Executive summary (v)
1 Introduction to the Project
Title of the Project
Objectives of the Study
Survey area
2 Research Design
Research Methodology
Scope of the study
Limitations of the study
3 Company Profile
Company Overview
Different award
Marico brand
Market competitor
Board of director and Marico growth
Marico programme
Marico international business
4 Facts & Findings
5 Data Analysis & Interpretation
6 Conclusions & Suggestions
Conclusions
Suggestions
7 Bibliography
8 Annexure
EXECUTIVE SUMMARY
MARICO INDUSTRIES LIMITED is the market leader in organized Hair oil market and faces
competition from many Indian players. The products offered by Marico Ltd. have not only
created a long lasting customer delight but has also given its shareholders a value addition. In
India Marico has grown every year.Time and again Marico comes up with different variant of
products to satisfy the customers and even enhancing its own image by doing so. There are many
FMCG players who are running their business in India in different segments. Main players in
hair oil segments are HUL, Dabur, P&G and in edible oil segments Fortune Oil, Godrej Oil,
Kamani Oil and a few more.
Research Objective
The main objective of this project was to do Outlet/Retailer validation Survey in Dharavi
(Mumbai) by taking the existing Outlet list and going with Non Mera DSR for validating the
present list we have, against actual coverage and also explore scope for adding to Marico retailer
base by going to areas/Outlets where other FMCG majors like HLL/Colgate/Britannia service
but we do not. We also have to find out new outlets which have been opened in the last few
months, which we are not covering. Dharavi comes under Bombay Enterprises.Talking about
this project, it has all the relevant data and information which deals with the Marico Company’s
operations at length. Every important data about this project has been collected either through
questionnaire, observation or some facts that is already present in the form of books and on the
internet.
In today’s competitive market each and every company has to constantly keep an eye on their
competitors. To retain customers and provide better services is the key success factor for any
corporate in current competitive market. Finding out the demand and the target audience
for the product before getting into purchasing or even manufacturing is the key success factor for
any corporate in the current market. This is where Marico stands ahead of its competitors. This
project was necessary from Marico point of view as they were really concerned about the state of
their retailers. The Marico Company has never carried out any such research work earlier. All the
previous work was mainly concerned with the sales work, finding new retailers at prime
locations, finding the market share & how the competitors were functioning or giving benefits to
their customers and retailers.
This project was important as they were aware of some complaints from
their retailers and also that retailers were not doing their bit to enhance the image of the Marico.
And so they wanted to find all they possibly could to take all the necessary steps and measures to
rectify these loopholes from their side. And also to take stringent actions against those retailers
who were not in sync with the company’s rules & regulations.
Findings:
In the consumer products business Marico is a well known name. As I got the Project to do an
Outlet/ Retailer validation Survey in Dharavi (Mumbai), I visited the area for three weeks with
three non mera DSR. The main objective of this project was to do Outlet/Retailer validation
Survey in Dharavi (Mumbai) by taking the existing Outlet list and going with Non Mera DSR for
validating the present list we have, against actual coverage and also explore scope for adding to
Marico retailer base by going to areas/Outlets where other FMCG majors like HLL/
Colgate/Britannia service but we do not. We also have to find out new outlets which have been
opened in the last few months, which we are not covering.
• The basic problem was the differences between the retailers and the sales personnel.
• Some fault lied with retailers also. They kept on insisting of ordering only those products
which has higher sales, deliberating trying to stop these personnel’s from writing in the sales
orders of other brands.
• Some retailers complained that they were not at all getting the display materials or even if
they had some, they were getting it after coaxing the concerned personnel’s.
• Many of these retailers were not satisfied with the profit margin that Marico was giving
them.
• The retailers voiced their unhappiness about the time taken for the replacement of damaged
or leakage products.
Suggestions:
• Delivery position should be maintained to get good returns from the market.
• The Company must try to make different brands of Marico available at every retail
Outlet whether it is large or small, otherwise the consumers may go for substitute.
• The company executives should visit the outlets on a regular basis.
In doing so, it was possible to assess the upcoming places where the company can have or has
some of its retails. This can provide with opportunities in present as well as in future for long
term advantages of Marico.During the course of this project, the researcher was also fortunate
enough to be able to study the promotional techniques of the company, finding out the retailer’s
and the Marico’s employees way of functioning. With the help of the data collected and self
study, a sincere effort has been made to give some humble recommendations for the organization
at the end of the report which in some way or the other would benefit the firm.
INTRODUCTION TO THE PROJECT
4.1 TITLE OF THE PROJECT
Outlet/retailer validation/strategy for optimized distribution cost with special focus in product
positing.
The main objective of this project is to do Outlet/Retailer validation Survey in Dharavi (Mumbai) by
taking the existing Outlet list and going with Non Mera DSR for validating the present list we have,
against actual coverage and also explore scope for adding to Marico retailer base by going to
areas/Outlets where other FMCG majors like HLL/Colgate/Britannia service but we do not. We also have
to find out new outlets which have been opened in the last few months, which we are not covering. all
these area Comes under Bombay Enterprises and The basic objectives of the study are to know what are
the problems faced by the retailers and how that can be reduced or eliminated.
1. To find-out how many outlets has been shutdown in last few months in identified localities.
2. To find-out how many new outlets has been open in last few months in identified localities and
researcher had to visit all the new outlets and ask some questionnaire provided by the company.
5. To know what the other company is doing and how much margin they are giving.
9. To know about the time duration for the replacement of the damaged or leakage/breakage products.
Survey Area
Before going in detail we should know the exact location and brief information about the
Dharavi area. Often dubbed “Asia’s largest slum,” Dharavi is in fact a heart-shaped
agglomeration of primarily informal settlements, literally located in the heart of Mumbai, India’s
commercial capital. Once a remote settlement on the outskirts of the city, Dharavi due to
Mumbai’s rapid northward expansion, now finds itself strategically located between the city’s
two main suburban railway lines and a stone’s throw away from the Bandra-Kurla Complex, the
new financial and commercial center. These geographic advantages and Mumbai’s relative
shortage of developable land combine to make Dharavi a prime piece of real estate potentially
worth billions of dollars, creating pressure for redevelopment.
The Area
Spanning an area of about 223 hectares (550 acres),
Dharavi bordered by the Sion, Mahim and Matunga
railway stations and two major roads (Sion and
Mahim Link Roads) that connect the eastern and
western parts of the city. Dharavi is home to between
half a million and one million people (no recent and
reliable population statistics are available). A 1986
survey by the National Slum Dwellers Federation
(NSDF) counted 530,225 people (106,045
households) living in 80,518 structures; the numbers
have surely grown since then.
As evidenced in the popular aerial images of the
slum’s contiguous rooftops, Dharavi is an extremely
dense environment. A recent survey by the Kamla
Raheja Vidyanidhi Institute of Architecture (KRVIA) established that a central area of Dharavi
(Chamra Bazaar) contained densities of up to 336,643 people per square kilometer! Assuming a
population of 700,000, the population density in Dharavi would be Around 314,887 per square
kilometer. This is 11 times as dense as Mumbai as a whole (the most densely populated city
inthe world with 29,500 people per square kilometer) and more than 6 times as dense as day time
Manhattan (about 50,000 people per square kilometer).
History and Identity
Dharavi was originally marshy terrain home to the Kolis, a traditional fishing community who
lived at the edge of Mahim Creek. As the swamps separating the seven islands that formed
Bombay were filled in, migrants from all over India settled in Dharavi. Potters from Gujarat,
tanners from Tamil Nadu and embroidery workers from Uttar Pradesh were among those who
put down roots in Dharavi beginning in the nineteenth century. For migrants, Dharavi offered
work and affordable housing; for authorities, until recently, it was a place where illegal
settlements could acceptably proliferate away from the central city.Today, Dharavi is composed
of almost 100 distinct nagars, or neighborhoods, that form a mosaic of regional, linguistic,
religious, caste and class identities. Its largest communities are Tamil and Maharashtrian, each
comprising about a third of the population. However, virtually all regions of India are
represented in Dharavi, with the newest wave of migrants coming from Bihar. Dharavi is home
to Hindus, Muslims, Christians, Buddhists and others who — with the notable exception of the
1992-93 communal riots — have lived side by side largely in peace. The majority of Dharavi’s
residents are Dalits (former Untouchables), but members of many other castes and tribes are
present as well. Dharavi is home not only to the urban poor, but also to some middle-class
professionals unable to find affordable housing elsewhere.
Economy
Dharavi is not only a residential space, but also a major economic hub representing the city’s
vast informal sector. Dharavi’s commercial enterprises include recycling industries, leather
tanneries, heavy metal work, woodwork, and manufactured goods such as garments, shoes,
luggage, jewelry. Industries generally serve all of Mumbai, and many products are even
distributed in global markets. One conservative estimate places the annual value of goods
produced in Dharavi at USD 500 million (“Inside the Slums,” The Economist,
27/1/05).Commercial and manufacturing enterprises provide employment for a large share of
Dharavi’s population as well as for some living outside Dharavi. Much of Dharavi’s productivity
is rooted in a decentralized production process relying on a vast network of small home-based
production units.
SHOPS IN DHARAVI
DHARAVI CROSS RD, my area where I worked with Vinay Mishra, DSR
Name Of The Agency Where Survey Has Been Done Bombay Enterprises
Name Of Area Where Survey Has Been Done Dharavi(Mumbai)
No Of Beat Where Survey Has Been Done 18 Beats
Name Of The Surveyor Abhishek Kumar
Total No Of Shops In These Beats 810 Shops
RESEARCH METHODOLOGY
Exploratory Research: The research work was Exploratory in nature and was meant to provide
the basic information required by research objectives. A preliminary study and findings on
outlet/retailer validation can be further consolidated after detailed conclusion study has been
carried out. The major methods employed in research are Survey and Observations.
Area of research
Tools used for this research is short interviews. A brief set of sample questions was prepared to collect
the relevant information.
Data Collection:
Primary Data: - The primary data was collected by interviewing personally with the help of
preset questions.
Secondary Data: - The secondary was collected from Marico Territory sales executive, DSRs
And Distributors. With the help of some short interviews and some informal chat, the data was
collected regarding the remaining information about the current market scenario and changing
market dynamics.
1. The Market survey is conducted to make a comparative study of the problems endured by the
retailers of the Marico Company.
2. The survey covers a wide range of activities and the factors, that Influences and shows the
increase or decrease in the market share of the Company.
Due to improper coordination between organizations, there encountered some difficulties. Also
workers attitude towards business is also critical factor for grass root level employees. The
limitations are prescribed below.
(1) Few retailers were not co-operative. They were not responding relevant answers of questions
(2) Only few areas have been considered for research.
(3) Study was restricted to few outlets due to large no of outlets under one DSR’s.
(4) Duration of Project: As we were required to complete the summer project within a short
period of 75 days, we could not explore all the dimensions of study. However I have tried my
level best to find out each and every thing whatever the company required.
(5) No convince allowance - As no convince allowance was paid to me, it was not possible to
carry out market Research on a vast scale.
MARICO INDUSTRIES LIMITED
Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and
Wellness space. Marico Ltd is a family-owned company, incorporated on October 13 1988 as
Marico Foods Ltd. The name was changed to Marico Industries Ltd with effect from October 31
1989. In April 1990 the company commenced commercial operations by taking over the business
of the consumer products division of The Bombay Oil Industries Ltd (BOIL). Marico later
changed its name to Marico Ltd on April 25 2005.Marico largely continues to be a family-owned
company with the promoters Harsh Mariwala and family holding 63.45% of the total shares as
on September 30 ,2007. Though the company is family-owned, it is managed by professionals
and the unique rotation policy of the company is also well-known.
Marico is a flat organization with only five levels
of reporting between the managing director and an operator on the shop floor. We believe this
flat structure helps the company in being more responsive to the environment while providing
enriched roles for members. Keeping in mind the fast and ever changing business environs,
Marico's structure is dynamic and constantly evolving. Marico undertook an organizational
restructuring exercise, which resulted in the Marico Group business organization being
restructured into three strategic business units (SBUs) - consumer products business (personal &
nature care and wellness & new products), Kaya Business (Kaya Skin clinics and Kaya Life) and
the international business (which comprises the international FMCG business and the Sundari
business).
Marico markets well-known brands such as Parachute, Saffola,
Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Sundari, Aromatic,
Camelia, Fiancee and HairCode. 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 (65 in India and The
Middle East), the Sundari range of Spa skin care products (in the USA & other countries) and its
soap franchise (in India and Bangladesh).
Marico's branded products are present in Bangladesh, other SAARC
countries, the Middle East, Egypt 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.
Marico was selected as one of the eight Indian companies in S & P’s list of Challenger
Companies from various nations, compiled globally by Standard & Poor’s in June 2007.
AWARDS
Marico has also won various other Awards such as the following:
• Marico Uncommon Sense case study has been showcased in the Annual World Effie
Coffee table book, 2008.
• Marico’s “Saffola World Heart Day" campaign has won a Bronze at the first-ever Asia
Pacific Effie Awards, Singapore, 2008.
• 3 top Awards instituted by CNBC-TV18, U21 Global and Watson Wyatt Worldwide, in
following categories: India’s Employer of Choice for 2007, Award for HR Excellence &
Award for Best Employer in the Consumer Products and Healthcare Sector.
• Gold Effie (2007) for its corporate campaign and a Bronze Effie (2007) for Saffola.
• Kaya - Best Retailer in the Beauty and Fitness category, India retail Forum (September
2007)
• NDTV Profit - Business Leadership Award, FMCG Personal Hygiene Category (July
2007).
• One of India's 10 best marketers (Business Today September 2006).
• Brand Leadership Award at the India Brand Summit 2006 (September 2006).
• Kaya - Retailer of The Year Award (for the 2nd consecutive Year) at India Retail
Summit 2006.
• The Gulf Marketing Review Award in the Middle East 2006.
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. Marico’s focus on sustainable profitable growth is
manifest through its consistent financial performance – a CAGR of 21% in Turnover and 30% in
Profits over the past 5 years- while setting a record of several consecutive quarters of year on
year growth- 34 for Profits and 30 for Sales.
Marico Brand
Parachute
Over the last few years, Marico has focused on a consistent strategy of growing the coconut oil
market by encouraging conversions from loose oil to branded oil. At the same time Parachute
has also worked on increasing its market share in pockets where the scope to do so is higher than
in its strongholds, through various micro-marketing and distribution expansion initiatives.
During the year, Parachute coconut oil in rigid packs recorded a volume growth of 11% over the
previous financial year. In July 2007, retail prices of the brand were increased by 3%, in
anticipation of some inflation in input prices. Though input costs did not increase as expected
until about December 2007, Parachute continued to show good volume growth and has
maintained its market share. Parachute’s market share for the 12 months to February ‘08 was at
48% in volume terms. Given the brand’s strong equity amongst its consumers, the company
expects to be able to pass on any increases in input prices and maintain its margins per unit
volume. The competitive scenario in the category remains by and large unchanged. While there
have been a few entrants, their impact has not been very significant. The company is keeping a
watch on the progress of these brands. Nihar coconut oil grew at a modest rate of 4% during the
year. The annual growth appears low as the growth in the first half was depressed on account of
pipeline filling during the previous year, the period immediately after Marico acquired the brand.
Marico commands a 56% share of the coconut oil category in India with its three brands
Parachute, Nihar and Oil of Malabar.
Hair & Care Silk-n-Shine
Hair & Care Silk-n-Shine is a post wash hair conditioner from Marico. After a successful 3-
months prototype in West Bengal. Silk-n-shine was launched nationally in June 2004.
Silk-n-Shine is borne out of real need of today's women. As they spend more and more time out
of home, exposure to pollution, dust and sunlight makes their hair rough and dry. Hair dyes,
frequent shampooing and hard water further damage hair causing tangles. And when they try to
comb out the tangles their hair breaks Hair & Care's new Silk-n-Shine hair potion with the
goodness of fruit-vitamins works naturally on tangled hair with a unique 3-steps action, leaving
if soft and silky.
Saffola
Saffola, Marico’s refined edible oil brand has created strong “good for the heart” equity for itself
over the years. The brand dominates the refined safflower oil and blended oils with safflower
category. While it occupies a niche super
premium position above other premium
refined oils, the brand nevertheless has a
potential for growth given the increased
incidence of heart related ailments in the
country and the growing awareness and
health consciousness. The brand has been
actively promoting health consciousness and
positioning itself on the “preventive”
platform. Saffola continued to build its equity
by taking a thought leadership stance through
various on-ground activities and
communication through multiple media
channels during World Heart Day. During
Q2FY08, the Saffola franchise grew by 21%
in volume over Q2FY07, led by higher
growths in Saffola Gold. The brand’s strength
has helped it leverage recent environmental trends. Earlier this year, Marico extended
Saffola’s good for heart equity beyond refined edible oils into functional foods. Saffola Atta
Mix, a high fiber flour additive that helps manage cholesterol was launched nationally. As the
Atta mix not only serves as a functional food but in fact improves the taste and texture of the
rotis (bread), this product that leverages an existing habit of mixing grains for healthier flour, has
been well received. While current sales are still very small, the acceptance of the functional
foods concept will help establish a platform for a range of similar functional foods that facilitate
a much healthier lifestyle.
these two brands, Marico continues to dominate the perfumed coconut oils market with a market
share of rigid packs at 79% (12 months to August 2007). Nihar’s perfumed hair oil’s“Aami
Nandini” campaign won Bronze at this year’s Effie awards. Shanti Amla showed a growth of
12% during the quarter as compared to Q2FY07. Its market share in the Amla oil category was
9% (12 months to August 2007).
Hair & Care
Marico’s Hair & Care continued to perform well in the market place while being supported by a
commercial that cues nourishment and strengthens the youth imagery of the brand. During
Q2FY08, the brand registered a volume growth of 21%, buoyed by a consumer offer on the
300ml pack. A price increase of about 4% effective July 2007, has been implemented. Hair &
Care’s share in the NSHO (Non-Sticky Hair Oils) market for the 12 months to August 2007 was
16%.
Kaya Skin Clinic
The skin care solutions business of Kaya Skin Care Ltd. broke even during FY07 with a
marginal profit before tax. Having established the model, Kaya now plans to move into the next
phase of clinic expansion. Kaya would open about 15 new clinics a year. Each of these, as is true
currently, will be company owned and managed, there being no plans as of now to adopt a
franchise model. In choosing locations, Kaya would try to saturate demand in existing cities (it is
already present in 16 cities in India) and reach out to only a few new cities. During Q2FY08,
Kaya Skin Care added 2 clinics in India, one each in Mumbai and Pune. The company has been
able to identify and tie up a few more properties for establishing new clinics. One clinic was
added in the UAE at AL AIN during the quarter, taking the total number of clinics in the Middle
East to six. Kaya plans to open its first clinic in Saudi Arabia shortly. During Q2 FY07-08 the
Kaya Skin Lightening service was launched nationally with TV advertising support. The efficacy
feedback on the service continues to be positive. This quarter also saw the launch of Kaya Skin
Renewal a range of peels which target specific skin needs of customers such as pimples, age-
control, pigmentation, clarity and overall skin health. Products form a share of about 15% of
Kaya’s revenues. In order to enhance this revenue stream, Kaya began prototyping the “shop-in-
shop” model through kiosks at malls such as Lifestyle and Hyper City. The response from this
experiment with about 8 kiosks has been good and the company has now commenced a dialogue
with other Retail chains to establish and scale up this concept. After a successful prototype in
Q1FY08, Kaya Pigment Reducer was added to the basket of product offerings from Kaya
andlaunched in Q2FY08. The company plans to continue to launch more new products in order
to offer a “more complete” range.During Q2FY08, Kaya recorded a turnover of about Rs 24
crore, a growth of 36% over Q2FY07. On a sequential quarter basis, the growth over Q1FY08
was about 8% During September 2007; Kaya was chosen the Best Retailer in the Beauty and
Fitness category by the India Retail Forum (Images) with special mention for being pioneers and
setting standards in the skin care solutions business.
Kaya Life:
In June 2007, Kaya was extended beyond skin care solutions. Kaya Life centers offer holistic
weight loss Solutions that are customized to individuals. The consumer need is large with India
ranking amongst the top 10 obese nations. The problem is much more acute in urban centers,
with many of those above 35 years of age suffering unhealthy body shapes. Targeted towards
SEC A (18-40 male / female) consumers who acknowledge the weight issue to themselves and
desire to change the status to “look good”, The business’s unique proposition of customized
holistic, sustainable weight management proposition using the Synergy 4 model (four pillars of
Lifestyle counseling, Inch Loss, Food & Meal planning and Energizing exercises) has already
begun to redefine people’s perception of weight management through the customized services it
offers ranging from 45 day program to 3 month program. Kaya Life opened its first center at
Juhu in Mumbai towards the end of last quarter. The initial response consumer response on the
Kaya Life experience has been good. Based on its performance over the next couple of months,
there are plans to open 3 – 4 more centers during the year, initially in Mumbai. Focus on Growth
Prototypes and New Launches In order to generate additional sources of growth in the coming
years, Marico as an FMCG company must create a healthy pipeline of new products. The
company intends to introduce new offerings to its consumers through prototype launches at
regular intervals.Some of the products that the company has prototyped during the year are
discussed below:
Maha Thanda
Marico’s hair oil basket in India includes Parachute Advansed coconut oil, Parachute Jasmine
and Nihar perfumed coconut oils, Hair and Care and Shanti Amla. During Q4FY08, Marico
marked an entry into the fast growing cooling oil market with a view to plug this gap in its hair
oil portfolio. Maha Thanda is Ayurvedic hair oil with extracts of several herbs and can be used
for a cooling head massage that helps reduce stress, soothe headaches and enable good sleep.
The national market for the category is estimated to be about Rs 400 crore with a growth of over
20% during the last year. Maha Thanda is being prototyped in Bihar and is endorsed by the
Bhojpuri celebrity Ravi Kishan
kids. This comprises coconut based non-sticky hair oil, a gentle shampoo and a nourishing cream
gel. The cream Gel introduces a new format with the cream providing the goodness of coconut,
keeping hair free from damage while the styling gel allows an instant cool and sporty hair-do.
Parachute Advansed Starz hopes to capitalize upon a gap in the hair care for kids market in India
today.
Kaya Expansion
Kaya skincare services were made available to its customers at 18 new clinics during FY08.
Kaya Skin Clinic now has a presence through 65 clinics of which 56 are in 19 cities across India
and 9 service its customer in the Middle East. During the year, Kaya also began offering weight
management solutions at 3 centers under the brand Kaya Life.
.
OPERATING MARGIN STRUCTURE FOR MARICO GROUP
Notes:
1. In order to make comparison meaningful, extraordinary items with a one-time impact have
been excluded from the above table. These include a reversal of provisions during FY07 of Rs
8.0 cr pertaining to personnel costs and Rs 4.9 cr of ASP.
2. Material costs to sales are similar to those in the previous year.
3. Personnel expenses are higher owing to normal remuneration increases, performance
incentives and higher head count, particularly in Kaya.
4. The company has a conservative treasury policy with minimal risk exposures. It did not incur
any losses on account of derivative structures and has no derivative structure exposure on its
books.
5. The detailed Financial Results and other related useful information are available on Marico's
website – http://www.maricoindia.com/ic_latest.htm
Market Scenario
Given below is an overview of Marico's market standing
Brands Brands Indicative Market Rank
Share range %
Parachute, Oil Of Malabar, Nihar Coconut Oil 57-58 1
Hair Oil (Hair & Care, Parachute Hair Oils 22-24 2
Jasmine,Parachute Advansed,
Shanti Badam Amla,Nihar)
Mediker Anti Lice Treatment 90 1
Sil Jams 7-8
Revive Fabric Starch 80 1
Marico’s Parachute and Saffola are among India’s top 100 most trusted brands as per the survey
carried out by Brand Equity (The Economic Times) in February 06 - Parachute ranks 29th while
Saffola ranks 93rd. Parachute continues to be the worlds largest packaged Coconut
Oil Brand. Marico has consistently sought to broad base its brand basket. The new
products dealt in by the Company during last 5 years have now assumed a critical
mass and contribute over 28% to the group business. In the process, Marico's dependence on
Parachute has consistently been reducing. From a share in the range of 70% - 75% in early 90's,
Parachute today contributes about 40% - 45% to the top line of Marico. Its share in profits too
has come down.
Reach
Marico procures one out of every 25 coconuts produced in India and 3 nuts per coconut tree in
India. Marico sells over 7Crore (70 Mio) packs to around 13 Crore (130 Mio) people every
month. Marico’s products reach around 2.3 Crore (23Mio) households through over 25 Lac (2.5
Mio) retail outlets serviced by its nation-wide distribution network comprising 4 Regional
offices, 30 carrying & forwarding agents (CFAs) and about 3500 distributors and stockiest.
Marico’s distribution network covers almost every Indian town with population over 20,000.
Marico has partially leveraged its network through a distribution alliance with Indo Nissin Foods
Ltd. (Top Ramen- Curry, Cup O' Noodles).The table below provides an indicative summary of
Marico's Distribution Network in India.
Urban Urban
Sales Territories 135 35
Towns Covered (‘000's) 3.2 11.0
Distributors 850 -
Super Distributors - 120
Stockists - 2,500
Retail Outlets – Reach (millions) 1.65 0.85
In Bangladesh, Marico reaches over 350,000 outlets.
Marico Ltd.
Rang Sharda, Krishnachandra Marg, Bandra Reclamation,
Bandra (West),
Mumbai – 400 050
Tel : 91-22-66480480
Fax: 91-22-66490112
International Presence
NAME CATEGORY
Note:
• Bandhan – Wholesale
• Unnati – Chemist
• RSDM to maintain Outlet wise Pivots for Visibility (outlet wise brand wise) and
Target Planning (Targets for Program to be given by Div Heads in line with the
Cover plans)
DETAIL OF MARICO PROGRAMME
• The Mera Program will be an Incentive to the “Top” Key Outlets in a City
Mera Outlets :
• Deciding Parameter:
• Top BPM Key outlets in the City : Top Outlet Report [Midas]
• For eg, if the ASM has 100 Mera Outlets allocated to him, he shld take a list of 120 ols
(20% extra) & then choose the 100 based on ‘Qualitative Parameters’
• Other Qualitative (softer) Parameters:
• Sells Range of Products
• Has Visibility from Competition
• High Customer Foot falls
• Deciding Parameter:
• Should be the top BPM outlets from the ‘Mera Outlet’ set
• For eg, if the ASM has 20 Top Mera Outlets allocated to him, he shld take a list of 26
ols (30% extra) & then choose the 20 based on ‘Qualitative Parameters’
• Other Qualitative (softer) Parameters:
• Space to put up all visibility elements (eg. Saffola stand/Dispenser/BIWs)
Mera club
Bandhan programme
• Bandhan Outlet :
• Any Outlet which does a BPM of more than Rs 5000 per month
• Sells products to other Retailers
• Only to be given to outlets in ‘Wholesale Channel’
• Enrolment :
• For urban (WMP – U), wholesale parties with Marico Products purchase of greater
than 100 Ltr P.M to be enrolled in the program.
• For rural (WMP – R), wholesale parties with Marico Products purchase greater than 50
ltr P.M to be enrolled in the program
Dhoom programme
• Dhoom Outlet :
• Period :
• 1st May 2008- 31st March 2009
• Further the period is divided into 3 phases ;
• Phase I : May-Jul
• Phase II : Aug-Nov
• Phase III : Dec-Mar
Unnati programme
• The Unnati Program will be an Incentive to the “Top” Chemist Outlets in a City
• Defining Unnati Outlets :
• Deciding Parameter:
• Top BPM Unnati outlets in the City : Top Outlet Report [Midas]
• For eg, if the ASM has 100 Unnati Outlets allocated to him, he shld take a list
of 120 ols (20% extra) & then choose the 100 based on ‘Qualitative
Parameters’
• Other Qualitative (softer) Parameters:
• Sells Range of Products
• Has Visibility from Competition
• High Customer Foot falls
FACTS AND FINDING
During the market survey researcher had visited 18 beats in Dharavi. Researcher had found that 250
outlets had been shutdown In last few months in that location and also 37 new outlets had been open in
that localities. Researcher found that due to the closed outlets company is bearing loss of Rs. 907801.1
(Business per annum).
The list of Area, DSR, Close Outlets, New Outlet Are Given Below.
Name Of The Agency Where Survey Has Been Done Bombay Enterprises
Name Of Area Where Survey Has Been Done Dharavi(Mumbai)
No Of Beat Where Survey Has Been Done 18 Beats
Name Of The Surveyor Abhishek Kumar
Total No Of Shops In These Beats 810 Shops
Total No Of Shops Closed In These Beats 250 Shops
Total No Of New Shops Found In These Beats 37 Shops
Total B.P.A Loss (1st april-31march2007-8) 907801.1 Rs
Total B.P.M. Loss 75650.0 Rs
Name Of The Beets Name Of The D.S.R. Total Shops Beat Wise
SAI BABA NAGAR 2 NG WK K.K PANDEY 57
TRANSIT CAMP II NG WK K.K PANDEY 30
DHARAVI MAIN ROAD III NG WK K.K PANDEY 32
90 FEET II NG WK K.K PANDEY 57
M.L CAMP II NG WK K.K PANDEY 41
BHARAT NAGAR II NG WK K.K PANDEY 38
DHARAVI CROSS RD NG WK VINAY MISHRA 41
TRANSIT CAMP NG WK VINAY MISHRA 59
DHARAVI MAIN RD NG WK VINAY MISHRA 53
90FEET ROAD NG WK VINAY MISHRA 66
M L CAMP NG WK VINAY MISHRA 43
BHARAT NAGAR III NG WK VINAY MISHRA 38
SAI BABA NAGAR NG WK JITENDRA 41
SOCIAL NAGAR NG WK JITENDRA 53
DHARAVI MAINROAD - II NG WK JITENDRA 36
LAXMI CHAWL 90 FEET NG WK JITENDRA 40
M.L.CAMP - I NG WK JITENDRA 43
NAYAK NAGAR NG WK JITENDRA 42
TOTAL 810
D.S.R.
Beat Name Code Retailer Name
Name
SAI BABA NAGAR 2 NG WK K.K PANDEY 269820200 JANTA STORE
SAI BABA NAGAR 2 NG WK K.K PANDEY 26991091A MOHAMMADI BAKERY & GEN.STORES
SAI BABA NAGAR 2 NG WK K.K PANDEY 26991198 SHRI SURYAVANSHI GEN STORE
SAI BABA NAGAR 2 NG WK K.K PANDEY 26994037 SHAH BABA P/B SHOP
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26981096B SHRI SIDHIVINAYAK BAKERY
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26981099b JAI MATAJI STORE
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26981106 NEELESH Kr. KANTILAL
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26981111 SAGAR GEN STORE
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26981127 SHIV GEN STORE
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26982047 IMRAN PAN BIDI
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26994064 RAJA GEN STORE
DHARAVI MAIN ROAD III NG WK K.K PANDEY 2699446 SHREE SIDDHIVINAYAK BAKERY
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26999011 SANGAM PROVISION STORE
DHARAVI MAIN ROAD III NG WK K.K PANDEY 26999012 GANESH GEN STORE
BHARAT NAGAR III NG WK VINAY MISHRA 26988003 RAJ OIL & SOAP CENTRE
BHARAT NAGAR III NG WK VINAY MISHRA 26988148 VIMAL JAISHWAL GEN STORE
• Some retailers complained that they were not at all getting the display materials or even if
they had some, they were getting it after coaxing the concerned personnel’s.
• Many of these retailers were not satisfied with the profit margin that Marico was giving
them.
• The retailers voiced their unhappiness about the time taken for the replacement of damaged
or leakage products.
• About 80% of the retailers were happy with the delivery of goods but the rest complained
about the irregularities.
• Researcher had to asked the name of new open outlets because the name had to be put into
palmtop and company record , which can help DSR to do regular call.
• Researcher had found that DSR of HUL, GODREJ REFINED OIL, GODREJ OIL, DABUR
OIL, P&G, and COCORAJ OIL were visiting regularly.
• Some other companies DSR were visiting 1-2 times in a week and some were visiting once
in a week.
• The companies like kamani, Raj oil, paragon gives 5-7 days credit but marico gives only 1
day credit.
• Most of the shopkeeper they only keeps parachute coconut hair oil, jasmine hair oil, revive ,
mediker because their demand is more in identified localities. They don’t keep other Marico
products.
ANALYSIS AND DATA INTERPRETATION
(a).HUL (a).GODREJ
(b).P&G (b).FORTUNE
(C).DABUR (c).GINNI
(d).BAJAJ (d).KAMANI
HUL 30 30% 1
P&G 25 25% 1
DABUR 20 20% 2
FORTUNE 10 10% 1
DSRs visit
50
percentage of retailer
40
HUL
30 P&G
DABUR
20 RAJ OIL
FORTUNE
10
0
company name
INTERPRETATION:
➢ As the graph & table indicates the opinion of the retailers about the frequency of visits of the
DSR’s every week in percent.
➢ HUL, P&G and Fortune’s show1day visit by DSR’s.
➢ Dabur, Raj oil said 2 days visit by their respective DSR’s.
3). Which are the FMCG companies which gives you credit? If Credit is given, what is the duration of
the credit (Pay back time, in days)?
(In Days)
HUL 25 25% 1
MARICO 20 20% 1
P&G 18 18% 1
5
0
company
INTERPRETATION:
➢ As the graph and table indicates the opinion of retailers (in percent) about the companies which
gives credit.
➢ Marico, p&g gives only 1 day credit.
➢ Dabur gives1-2 day’s credit.
➢ Raj oil gives 5-7 days credit.
➢ Fortune gives 2-5 days credit.
4). Out of these mentioned below, which Marico products you prefer keeping in your outlet?
Sweekar 80 80%
Revive 96 96%
Mediker 92 92%
Saffola 80 80%
product avilability
percentage of retailer
120
100
80
60
40
20
0
Parachute Parachute Sweekar Revive Mediker Saffola Hair n Silk n
jasmine coconut care shine
oil
products
INTERPRETATION:
➢ The above graph shows the brands which were available in the market during the survey. pcno,
jasmine, revive, mediker, sweekar, saffola were found in more than 80 different outlets as they
are the highest selling brands of Marico.
5). What is your opinion about the Delivery of Goods from Marico?
Type of opinion No. of retailers Percentage of retailers
Excellent 28 28%
Good 52 52%
Average 10 10%
Poor 10 10%
Delivery of goods
60%
no of retailers
50%
40%
30%
20%
10%
0%
Excellent Good Average Poor
performance
INTERPRETATION:
➢ when the question was asked about the delivery of goods only 20 retailers out of 100 said that it
was either POOR or AVERAGE. While the rest interviewed i.e. 80 retailers termed it as GOOD
or EXCELLENT.
6). How would you rate the performance of the Marico’s DSR’s?
Type of opinion No. of retailers Percentage of retailers
Excellent 25 25%
Good 50 50%
Average 15 15%
Poor 10 10%
opinion
60
50
No of retailers
40
30
20
10
0
Excellent Good Average Poor
pe rfom a nce of DSR's
INTERPRETATION:
➢ when the question was asked about the performance of DSR’s 15 retailers, 10 retailers out of 100
said that it was either POOR or AVERAGE. While the rest interviewed i.e. 75 retailers termed it
as GOOD or EXCELLENT.
7). Are you satisfied with the promotional scheme of Marico?
promotional scheme
90
percentage of retailers
80
70
60
50 yes
40 No
30
20
10
0
respond
INTERPRETATION:
➢ In this graph it has shown that 80% retailers are satisfy and 20% retailers are not satisfy with the
promotional scheme.
8). Have often you have been provided the Point of Purchase (POP)/Point Of Display (POD)
material
by the company?
Sometimes 54 54%
Never 20 20%
POP/POD Materials
60
50
No. of retailers
40
30
20
10
0
Always Sometimes Never
Frequency
INTERPRETATION:
➢ This question was very significant and the facts were not very pleasing. 20% retailers
complained of not receiving any display materials. While those who were receiving it regularly
far and few. While a majority 54% said they were getting it but at no specified time.
9).What type of advertising materials the company has provided to the outlets:
Arial hanger 30
Crate display 28
Flange 31
Price strip 48
Posters 36
Glowing sign board(GSB)
Arial hanger
Moulded road stand
Crate display
Table top rack
Flange
Price strip
Posters
SUGGETIONS
During the survey it was found that a large no of shops has been closed in last few months. Due
to different reason and also due to closed shops we are bearing a huge loss. It was shocking to
me when I calculated the total closed shop list. The major problem with this area is poverty
and lack of proper settlement planning. After Dharavi Redevelopment Project it is assumed that
the situation will improve. As a total 250 shops had been closed due to Different Reasons. We
are unable to reopen those shops. But, still we can cover the lost BPM. We can also promote our
DSR to open the new outlets so we can recover our loss as a certain extent. As I found that the
total BPM loss is Rs 75650.0, it can be covered by More Intense Effective Coverage in The
Area.
Some suggestion:-
1. If company is launching any new product in market related to hair oil then company should
start the name with parachute like parachute shanti amla hair oil, parachute starz shampoo for
kids, because researcher had observed in market that SHANTI AMLA HAIR OIL market value
is less than DABUR AMLA HAIR OIL so researcher thought company should change the
name with parachute shanti amla hair oil/parachute amla hair oil.
NOTE: - Because parachute (name) is more popular in urban as well as in rural area.
2. Company should more concentrate on DSR because they are the base of the company.
Company should do something for DSR like:-
Time and again company should give them training, motivation. Company should give some
prizes/gifts except incentive for their better performance Researcher have worked in market
with DSR and researcher knew how tough their work in market so researcher thought company
should do something for them because whole business is depends on performance of DSR.
3. If company is launching any new product, company should balance the price, means the price
which retailer is getting products and MRP because Marico have launched a new brand saffola
active and during my one month visit not a single shopkeeper demanded for Saffola active
product, main reason is retailers is getting that product at RS.100 and MRP RS.105 due the less
margin nobody is asking for saffola active.
4. DSR should inform the different scheme to the retailer and also DSR must carry PDA so they
do not forget to call different product.
5. Company should increase the promotion of non mera shops for better sale.
7. Delivery position should be maintained to get good returns from the market.
8. The Company must try to make different brands of Marico available at every retail
outlets whether it is large or small, otherwise the consumers may go for substitute.
9. Sales people and delivery persons should properly monitor the outlets, whether the Point of
Purchase/ Point of Display materials are available and are properly utilized or not.
10. Point of purchase/ Point of Display materials, merchandising items should be provided to the
retailers on more regular basis to increase the sales volume.
11. The Company should take steps to replace damaged or leaked products frequently from the
retailers.
12. The company executives should visit the outlets on a regular basis.
13. The Marico products are doing well in the market; despite this the retailers want more profit
margins. We must try to give them a reasonable profit margin.
14. The promotion should be done in a manner to increase the awareness as well as to
increase the consumption.
15. DSR must carry PDA so he does not forget to call different products.
CONCLUSION
Finally, after the hard work the researcher had to put his opinion at the end of the project report
in the form of conclusion. This is most important part of this project report. After 75 days of
doing the research, is not easy to get the right conclusion, but that was the great time for
researcher to learn and observe the market. How a company works in market and what the
policies they adopt to promote their product and how the company manages their organizational
structure. The survey was successful to fulfill the objective. It was found that Marico has a good
brand reputation in the market. After understanding the ground realities of Dharavi It was easy to
understand the root causes of the closure of shops. It is the personal, financial and administrative
problem due to which shops got closed. Some new shops were found in the survey process,
which is now being entered in the Midas and DSR shops lists.However, In Marico the researcher
learned so many new things. This would give more efficient knowledge to researcher? Lastly
the end of the project from researcher point of view:-
• The opportunities are ample in the market to grow despite several threats.
• Marico is trying to give maximum satisfaction to their customers with its new innovation and
product quality.
• Company is giving more satisfaction to retailers as well as customers by profit margin and
attractive offers.
• Despite so many regional as well as competitor into the market, the position of Marico is
not going to be affected that much. But in some cases the more competitive environments
provides better opportunity to grow.
• The marketing part of this company is very organized. They have very nice
Communication and distribution channels for the marketing of their products and
Supplying to the end customers.
• The production quantity of hair care and edible oil products is growing every year. Every
organization in this sector is making profit. And the good news for Marico is that they are the
ones who invest a lot in their R & D, and the result is seen in the form of different variant of
products they come up with every now and then.
• This research was also a tool to find out which product/brand of Marico has the highest sale
among all the brands.
BIBLIOGRAPHY
(1) www.google.com
(2) www.maricoindia.net
(3) www.yahoo.com
Questionnaire:-
1. Name of Outlet : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
a) HUL ( ) a) Fortune ( )
b) Dabur ( ) b) Godrej ( )
c) P & G ( ) c) Ginni ( )
d) Raj Oil ( ) d) Kamani ( )
3) How many times other companies DSR visit your Outlet (in a week)?
a) Dabur ( ) b) HUL ( )
c) P & G ( ) d) Marico ( )
e) Raj Oil ( ) f) Godrej ( )
g) Fortune ( ) h) Ginni ( )
i) Kamani ( )
5) If Credit is given, what is the duration of the credit (Pay back time, in days)?
6) Out of these mentioned below, which Marico products you prefer keeping in your
outlet?
a) Parachute ( ) b) Revive ( )
c) Mediker ( ) d) Parachute jasmine ( )
e) saffola ( ) f) Sweekar ( )
g) Silk N Shine ( ) h) Sil-jam ( )
7) What is your opinion about the Delivery of Goods from Marico?
a) Excellent ( ) b) Good ( )
c) Average ( ) d) Poor ( )
a) Excellent ( ) b) Good ( )
c) Poor ( ) d) can’t say ( )
a) Yes ( ) b) No ( )
10) Have you been provided the Point of Purchase (POP)/Point Of Display
(POD) material by the company?
a) Always ( ) b) Sometimes ( )
c) Never ( )