Marico Case Study
| Analysis of Marico Limited’s Hair Care Business | | |
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Table of Contents Brief overview of marico limited 3 Trends in hair oil Industry 4 Value added hair oils 5 Distribution system 5 competition analysis 5 Impact of porter’s 5 forces 7 Marico Limited’s position in the market 8 issues 9 Recommendations 9 Sources 11 Bibliography 12
Brief overview of Marico Limited
Marico Limited manufactures and market fast moving consumer goods in hair care, skin care and health food segments. The product portfolio consists of edible oils, hair oils, fabric care products, hair creams and processed foods. Brands associated with Marico’s stable are Parachute, Parachute Jasmine, Hair & care, Oil of Malabar, Saffola, Sweekar, Shanti Amla and Shanti Thanda.
The Marico Group business organisation is structured into three Strategic Business Units (SBUs)
Consumer Products Business (India) Personal & Nature Care Wellness & New Products
International Business Group International FMCG Business
Kaya (Branched out to form a separate company Kaya Ltd. a wholly owned subsidiary of Marico) Kaya Skin clinics
Trends in Indian Hair Oil Industry:
The hair oil market is huge, valued at Rs 6 bn. Due to the varied consumption habits of consumers across the country, where coconut oil and edible oil are interchangeably used, the size of the market is likely to be higher than estimated. More importantly, the market is growing at an impressive 6-7 per cent in volume terms despite the high penetration level. The penetration of hair oil is fairly high at around 87 per cent and evenly distributed among the urban and rural areas.
Usage of hair oil is a typical Indian traditional habit. It is perceived to offer benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem of falling hair. There are two types hair oil available in the market; coconut oil and non-greasy perfumed
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Table of Contents Brief overview of marico limited 3 Trends in hair oil Industry 4 Value added hair oils 5 Distribution system 5 competition analysis 5 Impact of porter’s 5 forces 7 Marico Limited’s position in the market 8 issues 9 Recommendations 9 Sources 11 Bibliography 12
Brief overview of Marico Limited
Marico Limited manufactures and market fast moving consumer goods in hair care, skin care and health food segments. The product portfolio consists of edible oils, hair oils, fabric care products, hair creams and processed foods. Brands associated with Marico’s stable are Parachute, Parachute Jasmine, Hair & care, Oil of Malabar, Saffola, Sweekar, Shanti Amla and Shanti Thanda.
The Marico Group business organisation is structured into three Strategic Business Units (SBUs)
Consumer Products Business (India) Personal & Nature Care Wellness & New Products
International Business Group International FMCG Business
Kaya (Branched out to form a separate company Kaya Ltd. a wholly owned subsidiary of Marico) Kaya Skin clinics
Trends in Indian Hair Oil Industry:
The hair oil market is huge, valued at Rs 6 bn. Due to the varied consumption habits of consumers across the country, where coconut oil and edible oil are interchangeably used, the size of the market is likely to be higher than estimated. More importantly, the market is growing at an impressive 6-7 per cent in volume terms despite the high penetration level. The penetration of hair oil is fairly high at around 87 per cent and evenly distributed among the urban and rural areas.
Usage of hair oil is a typical Indian traditional habit. It is perceived to offer benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem of falling hair. There are two types hair oil available in the market; coconut oil and non-greasy perfumed