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Leveraging India Internationally Marico Experience

Learn how Marico, a 1990-formed Indian FMCG company, leveraged its experience and brands Saffola & Parachute to achieve international success. Explore its downstream and upstream value addition strategies and its distinctive characteristics in the FMCG sector. Discover Marico's journey in the Middle East, Bangladesh, and developed countries, along with its expansion into wellness products. Unveil how Marico built successful brands like Parachute and Sundari internationally through strategic marketing and market penetration.

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Leveraging India Internationally Marico Experience

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  1. Leveraging India Internationally Marico Experience

  2. Introduction FMCG Company formed in 1990 : - With 2 Brands : Saffola & Parachute - In 15 years : INR 100cr to 1150cr - All sales through branded products and services

  3. Marico Builds Brands ... • Downstream Value Addition : • Consumer End - Branding, Product, Packaging • V/S • Upstream Value Addition : • Lower Costs – IT & BPO

  4. The Business Hair Care – Pre & Post Wash (In India and Abroad)

  5. The Business…. • Skin Care – Customised Solutions : • Through KAYA Skin Clinics • Sundari – Global Ayurvedics : • Business acquired in US in 2003

  6. The Business…. Wellness – Healthy Cooking Oil, Blends, Salt, Functional Foods

  7. Characteristics of FMCG Business • Low Capital Needs • High Branding Costs • Distribution : critical to success • New Products : Failures 8 out of 10 Launches • 3 to 5 years to break-even, if successful • Global Brands & MNCs in large segments • Be Distinctive & Unique to succeed

  8. Marico’s International Journey…. How Did It AllSTART ?

  9. Marico’s International Journey…. It all started with smuggling………

  10. Marico’s International Journey…. Export of Coconut Oil was prohibited…. Marico had then lobbied to get export allowed…. Thus started a “new” business in the early 90’s….

  11. Journey driven by.... “Indian- Centric”- driven by : • Access to Clusters of Indian expats - Gulf, US, Canada, Singapore & Malaysia • Common Media Footprint - Gulf, other SAARC Countries • Common Ethnicity/ Hair Oiling habits - Bangladesh, Nepal, Pakistan, Bhutan

  12. The Mechanics.... Used Distributor Model to enter countries Appointed Distributors in Gulf, SAARC countries, US, Singapore / Malaysia etc And then onto …. Brand Building in the markets abroad Spread the Brand : “PARACHUTE”

  13. Where we have reached.… Direct • Bangladesh • UAE, Saudi, Oman, Qatar, Bahrain, Kuwait, Yemen, Lebanon, Sudan,Syria, Jordan • Pakistan, Nepal, Bhutan • US, Canada, Australia • Singapore, Malaysia, Indonesia, Myanmar • Kenya • Planned : African countries Indirect • Several where ...Parachute is available through wholesale trade channels

  14. How it has progressed.... International turnover in INR cr FY07 figs Plans

  15. Marico in the Middle East

  16. Started with Oils… Indians in Gulf... • Parachute Gold - unique positioning. • Parachute Lite for easy grooming & UV protection. • Parachute Jasmine : perfumed coconut nourishment with conditioning. • Parachute Sampoorna : value added CNO with hibiscus, almond etc for complete nourishment

  17. To Value Added Hair Care … • …In Modern Formats… • …Customised to suit Locals... • Parachute CREAMS • Parachute HAMAM ZAIT

  18. Using local ads… local celebrity… Local Events Displays

  19. The Result : • Middle East Sales in INR cr Parachute Creams are the largest selling within the basket ...

  20. The Learnings... • No Escape Buttons – Separate Structure • Non-Core business for MNCs, Grab Market Share • Local Insights – Product Development • Locally developed Advertisements and Marketing • Experience Dealing – Modern Trade • For people : Opportunity Posting Outside India/ Travel

  21. Marico in Bangladesh

  22. Bangladesh • 15 years behind India • Started Market Expansion in 1995 • Large Coconut Oil Market • Dominated by Local Brands

  23. The Parachute Journey.... • Leveraged : • Plastic Packaging with flip top caps • attractive, convenient, economical • Wide Mouth Jars – All weather pack • Mini Bottles • Distribution using Information • Technology • Superior Localised Advertising • Superior Sales Promotions

  24. The Parachute Journey.... Started with very low margins On gaining critical mass :- Set up Subsidiary & Backroom Operations Set up our own factory Today ….. The largest Indian Company in Bangladesh……

  25. Going Beyond Oils Acquired Two Soap Brands … 2005

  26. The Results : Last 5 years(fig in Tk Crores)

  27. Parachute in Bangladesh: MS % • MARKET SHARE > 55% • Awareness • 89% Total awareness level- 95% in urban vs. 79% in rural • 42% TOM awareness across Bangladesh

  28. Further Geographical Expansion • Limited by hair oiling habit • To leverage • - Indian Habit • - Food • - Raw Materials like spices, Indian coconuts • - Science – Ayurveda • - Any other source of competitive advantage

  29. Developed Countries • - Highly cluttered – Saturated • Different Distribution • High Cost Entry • Dominated by MNCs • Decided to create brand through an experience route

  30. Sundari • Acquired Brand • Built on Principals of Ayurveda • Changed Focus • Store to Spa Brand • Catering to Resorts • Destination Spas • Developed Protocols & Training • Shiro Dhara, Marma Points • Appointed Distributors in Asia Pacific

  31. Sundari (Contd) • Four Seasons • Mariott, Canyon Ranch, Oberoi, Westin • Huge Learning Curve • B to B Marketing • Long Lead Times to get entry • Niche Brand

  32. Kaya – 2003 • - Customised Solutions for Skin • Problem Normal and Anti-Aging Skin • Dermatologists – Key Differentiator • Medi-Spa-Zen like Ambience • Launched Hair Services

  33. Kaya ME • Unique Business Model • No-Chain Internationally – Leveraged doctors / skin practitioners • 2 in Dubai • 1 in Abu-Dhabi • Un Clear Regulations • Plan expansion other GCC Countries

  34. Going Forward - Next 3 Years • 1. Expand – GCC & Bangladesh • Wider Product Basket • 2. New Countries • Leverage Hair Care Products • 3. Expand Kaya • GCC Countries and Beyond • 4. Sundari – Europe • Increasing Scale • 5. Growth through Organic / Acquisitions Route

  35. Benefits Beyond Top/ Bottom Line • 1.Career Paths in Different Business Outside India • Leveraging Technology Across • Learning Marketing and Distribution • New Ideas Domestic Business • Common Advertisement mediums e.g. Kerala / Gulf

  36. We are passionate about India Advantage & Uncommon Sense Global Players in healthy living through distinctive solutions, largely leveraging India advantage.

  37. Thank You

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