61283551-Parachute-V1-1-2

Slide 1: 

Group 9 1

Topics: 

Topics Background 4Ps (Marketing Mix) Product Price Promotion Place STPD Success and Failure 2

Parachute – The Brand Portfolio: 

Parachute – The Brand Portfolio 3

Background - Marico: 

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 4

Parachute – Shudhta Ki Shakti: 

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% 5

STPD: 

STPD Product 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) 6

Products (..cont’d): 

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 7

Products (..cont’d): 

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. 8

Pricing: 

9 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 sharp rise, 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: 

Pricing Product Prices Parachute Coconut oil 500 ml - Rs 90 200 ml - Rs 39 20 ml - Rs 5 Mini - Rs 1 Parachute Advansed 375ml – Rs 80 212.5ml - Rs 48 80 ml – Rs 27 Parachute Jasmine 300 ml – Rs 72 150 ml – Rs 46 100 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 190 100 ml – Rs 99 Parachute Advansed Starzz 100 ml – Rs 54

Promotion: 

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 11

Slide 12: 

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: 

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. 14 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: 

Place : Distribution Chain 15

Success: 

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%. 16

Failure: 

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 17