marico slip copy
TRANSCRIPT
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ABSTRACT
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TABLE OF CONTENTS:
Topics Page
numbers
1. Introduction to Marico 42. Marico company history 53. Objective of the report 64. Maricos views on rural markets 75. Introduction to rural markets 86. Distribution network design for Marico in rural markets 97. Coverage and Reaching out the rural markets 148. PSR(Pilot Sales Representative) and his responsibilities 179. Schemes promoting rural growth 2010.Offers and schemes driving growth 2111.Visibility 2312.Forecasting an predictions 2613.Recommendations 28
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INTRODUCTION
Marico is one of India's leading Consumer Products & Services companies in the global
beauty and wellness space. From its foundations, Marico has worked outside the box, to bring
innovation to its customers through the careful creation of continuous and sustainable change.
Today, 1 out of 3 Indians uses a Marico product. From cooking oil with 'LoSorb Technology',
to rice that keeps you active, personalised skinscription services and hair oil that comes with
a battery-powered head massager, Marico believes that it pays to think differently. We have a
flat organisational structure, with just five levels between the Managing Director and the shop
floor operator. We believe in transforming the lives of all stakeholders be it our suppliers,
farmers, distributors or shareholders by helping them maximise their true potential and it
truly articulates the true Mariconian spiritto be more. Every day.
The company recorded a turnover of approximately R.s 4000 crores.Our vast portfolio of
enduring brands such as Parachute Advanced, Saffola, Hair & Care, Nihar, Mediker, Revive
and Manjal are leading household names today. In addition , the company has recently
acquired the erstwhile personal care business from Reckitt Benckiser. Marico now ownspopular brands like Set Wet, Livon, Zatak , and other personal care brands thereby
strengthening its portfolio for the youth and creating a significant presence in the male
grooming and post hair wash segments.
Marico's international portfolio includes brands like Fiance, Haircode, Camelia, Aromatic,
Caivil, Hercules, BlackChic, Code 10 and Ingwe. Marico is effectively present in Middle
East , Bangladesh and Singapore. Marico is present in more than 25 countries across Asia and
the African continent
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Company History:
The company was originally a join venture between a Lever group company and Nissin of
Japan, and its products were distributed through HLL's channels. In 1988 The Company
was incorporated on 13th October, under the name of Marico Foods Ltd. It obtained the
Certificate of commencement of business on 22nd November. In 1989 The name of the
Company was changed to Marico Industries Limited w.e.f. 31st October. In December,
the Company entered into an agreement with M/s. Rasoi Industries Limited for purchase
of its unit located at M.I.D.C Industrial Estate, Jalgaon. Saffola won the Most
Outstanding `Brand of the Year' Award instituted by the Advertising Club of Mumbai in
1993.
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OBJECTIVE
Aim of Understanding the different formats of retail with respect to availability and
distribution
Availability is one of the 4 As of Rural marketing, other three being acceptability, awareness
and affordability, all of which have been designed to make an appropriate marketing strategy
for the rural markets. The project will be focused on reaching out that last mile which is a
herculean task in distribution activities.
Prime Area of Focus:
The primary objective of doing the SLIP project was to find out the following
What are the different formats of retail that are available in rural markets? How rural markets are different from urban markets? How a sales manager or a marketing manager does forecast the rural demands? What is the distribution network design for FMCG? What are the different marketing channel strategies in place? What are the different challenges in rural marketing for a company with respect to
availability?
Finally why only few companies became successful in tapping rural markets
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COMPANYS VIEW ON RURAL MARKETS
MaricoAn Information Update for Q1FY13 (Quarter ended June 30, 2012) had the
following mentions about rural Market.
During the 12 months ended June 2012, Maricos volume share represented by Parachute and
Nihar was circa 56.5% (Q1FY12: 53.1%). Its share in the rural markets however is lower in
the range of 35% to 40%. The relatively lower share in rural markets provides headroom for
growth through market share gains.(page 4)
These market share gains have been achieved through providing consumers with specific
solutions, product innovation, packaging restaging, participation in more sub-segments of the
value added hair oils category, continued media support in some of the brands and
penetrative pricing action in others and expansion of Maricos direct retail reach in the rural
markets.(page 4)
Maricos rural sales continue to clock a faster pace of growth than its urban sales. Rural sales
clocked a growth of 26% during Q1FY13 as compared to 18% in Urban. The continued focus
on distribution expansion in rural markets has pushed the share of rural sales to circa 30% of
total Indian FMCG sales. The Company continues to make investments behind strengthening
rural distribution for the long term. While it has not yet seen significant signs of any
slowdown in demand, if the current macro-economic situation continues for an extended
period and the inadequate monsoon fuels inflation, there could be a dampening of demand in
the remaining quarters of this year, particularly in the rural markets.(page 5)
In rural areas where the market share is relatively low as compared to overall market share
the Company aims to gain market share. The Company expects to achieve volume growth 7%
to 8% per annum in the medium term.(page 12)
The Companys efforts in expanding rural reach is also expected to contribute towards
franchise expansion in coconut oils and hair oils.(page 12)
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INTRODUCTION TO RURAL MARKETS
It is not necessary that certain brands that are popular in the urban markets achieve the
same success in the rural markets and sometimes a local brand can make it big in the
rural. This unpredictability is because of the different thought process that an urban and a
rural consumer have. For example the rural consumer is more cost conscious and
affordability becomes a major issue to tackle for the marketers. A consumer in rural India
is also more value conscious and the biggest challenge for success in rural markets is
providing best value at an affordable cost.
The rural markets
What differentiates the two markets is not mere income, but a host of other infrastructural
& socio-cultural factors. Thus, the rural market cannot be tapped successfully with an
urban marketing mind set & would definitely require its thorough understanding. Marico
has the best reach in terms of availability in rural markets and its parachute oil is available
over the counter even in the interior most rural India. In Maharashtra the Parachute enjoys
immense brand loyalty and unchallenged popularity. So how has Marico successfully
achieved this feat of reaching almost every outlet in the every corner of the country?
Firstly, rural marketing cannot be considered any longer a subdivision of urban marketing
but it is a new mainstream altogether. In other words, the approach toward rural markets
needs to be distinct from the one adopted for the urban markets.
For Marico also the approach is different in rural and urban marketing. The primary
distinction is the presence of super distributor who is an intermediate between the
warehouse and the stockist. Marico's distribution width and penetration is acknowledged
as one of the best in the industry and is a leverageable strength.
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DISTRIBUTION NETWORK DESIGN FOR MARICO IN RURAL MARKETS
Distribution Channel:
Urban Chain: WarehouseDirect DistributorWholesaler / Retailer
RuralChain:WarehouseSuper distr ibutorStockistWholesaler/Retailer
CFA/
Warehouse
Super Distributer Super Distributer
StockistStockist Stockist Stockist
Direct
Stockist
R
RRW
W
R
WR W R W
R
Direct
Stockist
W
R
Factories
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The above screen clipping is from Maricos 2012 Annual report which provides facts and figures
about the distribution network of Marico
The rural markets is also divided into three parts on more generic terms for
distribution purposes
Wholesaler Chemist OthersOther categories occupy a huge chunk of distribution network which are normal retailers,
kirana shops, small road side shops and also stalls in the weekly markets that are famous
in this part of the country.
Weekly Markets in Pune District: We got to know that there are weekly markets
happening in some or the other part of the region on daily basis, for example there is a
Friday market that happens in Yevat village and Saturday market that happens in Loni
Kalbhor village(note that this is a case of indirect distribution). Here the rural retailer
travels to different villages on daily basis and sells the goods in the respective markets.
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Concept of Super Distributor
The concept of super distribution was introduced in Marico in the mid 90s when
companies had already begun to understand the enormous potential of the rural markets.
Marico was pioneer in establishing an effective super distribution network and companies
like Godrej, Colgate, Amul etc. followed this strategy.
The need for hiring a super distributor arises because it is not feasible for a company to
handle all operations from a central hub and hence delegation of work is very important.
Also to cover such a geographical area requires focused networking and relationships
which can be made possible because of this model.
The above is snapshot of felicitation certificate for Pravin agencies, Super Distributor for
Marico in Pune district and neighbouring districts. Pravin Agency is situated in a town
called Urli Kanchan (population of 60,000 +) which is a fast growing town because of
manufacturing industries incubating in the area. Similar is the story of several Indian
towns.
The above felicitation was for the Angol Program , when enquired we got a brief about
the program and its history associated with Marico.
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Angol Program : Historically, It was a program launched by Marico when scented oil
market was not large enough. Scented oil was still a premium product and people in India
used to buy scented oil only on special occasions, one such very special occasion was
Diwali, Peheli Angol or the Abhyang Snaan( i.e. the first auspicious bath). The Maricodecided to capitalize on this consumption opportunity by launching the Angol Program.
This perfumed oil market grew because of such initiatives, and probably because of this
program people became habitual to use perfumed oil throughout the year.
Marico involves all its partners when it launches schemes like this, hence it was
necessary to mention about this when I explain about the distribution channel. A
competitive environment is created among the channel partners, which is finally
responsible for boosting sales. Now Marico has many products lined up in perfumed oil
category from Hair N Care, Parachute Jasmine (a fragrance oil having a cultural bonding
with Indians) and Nihar Shanti Amla (an almond scented hair oil brand purchase from
HUL) and many others.
Roles and Responsibilities of different positions in Marico: (TSE, ISR, PSR)
The work at the super-distributer level is handled by a TSE (i.e a Territory Sales
Executive). In general a TSE handles the entire rural operations and is responsible forsuper distributor to stockist activity. The distribution in the rural can be direct selling via
a ISRs (Interim Sales Representative) who in Pune rural are responsible for 6 ISR
towns which involves direct selling from depot to stockist.
Other than that the main stream distribution in the rural takes place as mentioned before
via a super distributor to a stockist and then to the retailer .A stockist basically would be
handling towns and villages depending on the size and the population of the place. Here
the working of PSR becomes pivotal. PSR or Pilot Sales Representative works as a
intermediate between the Super distributer and stockist and also facilitates stockist in
pushing stocks to the retailers. Also, he has the work of handling the problems that
surface in amidst stockist and the retailer.
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Concepts of Primary, Secondary, Tertiary and Off take:
For effective distribution it is of primary importance that a process is properly delegated and
the targets are effectively set. Primary of a stock means having the stock made available for
forwarding and secondary of a stock means reaching it to the next level (till it reaches the
retailer/wholesaler).In a month there will be primary targets as well as secondary targets.
When primary is accomplished i.e. stock is there in the warehouse, it has to be sent to the
stockists or the super distributor to accomplish the secondary targets. The last and final target
for a company is the tertiary target that is when the product reaches the consumer. It is when
the complete process is complete it is said that the off take is reached
Factory/Plant
CFA/
Warehouse
Super
Distributor
Stockist
Retailer/
Whole seller
Primary for the Company
Secondary for the
Company
Secondary of the PSR
ConsumersTertiary for the
company
Primary of a PSR
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COVERAGE AND REACHING OUT
Coverage, many a times is indirect, meaning the retailers approach the wholesalers for the
product. The rural villages in India are extremely scattered and many a times they are as
small as 25 -50 houses. It is not feasible to reach each and every retail store. It is when the
distribution cannot afford to reach the shop or the distribution is through wholesaler, the
indirect sale comes into picture.
The above is a snapshot of a very small villages road side shop near Theur Patha
(approximately 50- 100 houses) on our way to Urli Kanchan town. It was very small shop
and did not have any SKU which was priced more than Rs. 10.It was definitely not feasible
for a company to set up its distribution to reach to a place like this. But still it had Parachute
sachets available. Hence we concluded that Parachute has a market presence even in remote
villages.
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2K Program
However, Marico had launched a 2K in 2008-09 year in an effort to cover all villages
which have population more than that of 2000. A study done at that time revealed that
even such small villages with such small population base were brand conscious. A small
visit in that year in a small village of Junnar with a population less than that of 2000
which had only 2 shops , but amazingly saw only branded items in the shop. Hence
decision of tapping these villages was taken and for administrative purposes it was
decided that an effort to be made to tap each and every village with the population of
more than that of 2000. A managerial level project was thus launched.
Maharashtra is a state where the rural consumer is well aware and brand conscious, so target
set for Maharashtra for rural marketing reach is a village with population more than
2000.However this target depends on market conditions of that state and feasibility .For
example for states like Bihar the target is villages more than population of 5000. In the data
above, it can be seen that 17% (population of 2000-10000) of the villages account to 50 % of
rural population and 60% of rural wealth. Hence the companies decision of tapping these
markets are perfectly justified.
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The above information was given by ASM , Mr Mahindra Shinde. He also categorised the
Indian Rural markets in to three primary categories depending on the prevailing conditions in
the market according to which different marketing channel strategies can be formulated
Good Percapita income
Well aware consumer and Media Bright State
Strong Reach and More Awareness
Rural Markets Type1
(Maharashtra,Punjab)
Includes Tier 3 towns
Blend of Rural and aspirational crowd
Awareness there but still developing state
Rural Markets Type 2
(Andra Pradesh,Gujrat)
Micro Economic Condition badBasic needs not fulfilled
Affordibility of product a very big concern
Rural MarketsType 3
(Bihar, Madhya Pradesh)
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PSR (Pilot Sales Representative) and his Roles
Our training involved working with the PSR and we understood in depth the roles and
responsibilities of PSR. He is the super distributor business driver. His schedule of working
involved a PJP (permanent journey plan). A PSR has the responsibility of 5-6 towns. A PSR
duty is to cover approximately 40 outlets in a day according to his pre-planned schedule of
PJP.
When we visited Saswad , a town with a population of approximately 50,000 people. The
towns coverage was done in 5 beats( 40 retail outlets make one beat). The 5 beats in Saswad
is divided into two local routes and three van routes. The local routes are the routes that are
directly covered by the stockist (probably in the main town)and the van routes require
extensive coverage because of the reason that they are more geographically scattered
Working of PSR and the basic selling skill required:
The working of be summarised in the abbreviation PCNOSAF
P-Planning and Preparation
Planning for a PSR is of two types, Primary and Secondary.
Primary plan- Super Distributor Stockist
Secondary Plan Stockist to retailer
The PSR has to daily update his plan sheet and work according to his coverage sheet that is
provided to him.
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PDA Provision:
Also for effective planning a PDA (mobile phone with Marico App) is been provided to PSR,
he has to update it regularly. It is provided to assist him with various details for effective
planning at the micro level. It has host of information like channel details, product details,
scheme details. Also he can track the stockists performance using the details.
C-Calling may begin with greeting and approaching the retailer, This point has been
emphasized because of the importance of relation management with the retailer. In our
project we saw excellent relations maintained among PSR, stockist and the retailer , a special
case that we saw was in a town called Shikrapur which was marred by distribution problems.
But only because of the relations maintained with Marico, the retailers didnt keep stock of
any other company except Parachute, in spite of unavailability.
N-Availability N visibility check: Checking whether the stock is present in the shop and if
not making a note of it. Visibility check is done where a PSR convinces a shop keeper to
keep the products properly in the assigned shelf such that it is properly visible to the
customers. He may also advise the shop keeper to keep the products ahead in the shop so that
there may be an impulse buying decision of the product which is critical in FMCG market
.Also if there is dust settling on the product then it is the responsibility of the PSR to makenotice the problem and in some cases clean it himself. We witnessed a typical case when we
asked a shopkeeper why the products of Parachute brand are kept so much in the back shelf.
To which he rebut that Parachute hair oil has such a great brand recall that they need not be
kept in the front shelf and customers who buy Parachute oil are brand loyalists.
O-Order taking- Once the availability of the product is ascertained, then the foci of
interaction shifts to order taking. The order taking can start with unavailable items or through
a NPLS item(New Product Launching scheme). In the present scenario Parachute advanced
body lotion is a new product which the company wants to focus on.The PSR has to push in
brands according to his target sheet and at the same time convince the saleability of the
product. For example if PSR manages to explain the health benefits of the karadi Oil -Saffola
Brand to the retailer, then possibly the retailer will accept to keep the stock and manage to
pass on the same explanation to customer.
Solving Problem: It is very critical duty of a PSR in which he solves varied problems from
rate issues to L&D(Leakage and Damage) problems.
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When we visited a small village called Koregaon Bhima near Shikrapur, there were
distribution where in the wholesaler was making his stock available through a different
distributor town ( Alandi, neighbouring town). So to handle these kinds of problems requires
effective negotiation skills which a PSR has to be inculcate in himself. The PSR in this case
had to go to the root of the problem and inform it to the TSE. Handling problems like these
requires time and effort.
Acknowledgement: Cross checking if the order is proper, check whether it is complete and
when it is ascertained repeating the Order
FeedBack : All the feedback has to be sent to the TSE and in some cases the Super
Distributor so that the problems brought forward and solved.
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Schemes promoting rural growth: PRAGATI & BANDHAN
Pragati and Bandhan Schemes are the business
motivating scheme for the wholesalers at the rural level.
In Marico terms, it is a WMP(Wholesaler Millennium
Point Scheme), Bandhan is a scheme for a local
wholesaler in a stockist town whereas Pragati is a
scheme for a wholesaler in a van town . It is a privileged
wholesaler program where every litre of oil purchased by
the wholesaler earns him points. For example selling a
litre of Parachute rigid will earn him one point, selling a
litre of jasmine will earn him 2 points and selling
ayurvedic Oil will earn him 4 points. The company has
strategically devised the pointing scheme, these points can be then redeemed at the end of the
year or at the time of redemption for a free gift. For example 5000 points will earn him a
television Set or a Gold Chain under the Marico Pragati Program.
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OFFERS AND SCHEMES FOR DRIVING GROWTH:
Offers and schemes can be categorised in to TO and CO i.e. trade offer and consumer offer.
The above sheet declares various offers as support and illustrates the various offers to the
stockists as well as consumers. It is basically incentivizing the key persons involved in
the transaction and pushing the product into the market. The sheet also contains coverageplan in blocks. Typically block report is to be send throughout the month.
For example as per the above coverage plan 60% of the secondary for PSR would be
probably completed by 10th of that particular month, PSR may reaches 100% of his
secondary target by 20th of that month and final 125 % till the month end which has to be
done by 25th
Trade Offer:
Schemes made for the wholesaler and retailer is known as Trade offer. These are done to
motivate the whole seller to sell more stock of a particular SKU. For example a retailer is
made available of a `scheme of 18 + 1 on 175 ml Parachute bottle. I.e. for every 18
bottles he purchases he gets an bottle free. This acts as a growth driver for him and he
seeks the opportunity to sell more of those in order to make profits. This is done primary
to push the sales and can be categorised as a below the line activity. In addition a
wholesaler has to be given CD( Cash Discounts)
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Consumer Offer:
Offer that the customer gets over the counter are consumer offers. These offers are
printed on the bottles and may be advertised on television. These offer increase the brand
awareness and have an effect on the buying decision. A bottle offering 20 % extra or a
scheme where you get a Santoor soap free for a Parachute bottle you buy are examples of
the consumer offers`
The figure is an example of consumer offer. During our project
we got to know that Ayurvedic Hair oil( image in the combo
offer) was a huge success in the rural markets, owing to the
influence of rural people on Ayurvedic products. The company
has effectively segmented and distributed this product in rural
markets
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VISIBILITY:
Visibility is one of the most essential elements when it comes to spreading brand awareness.
With respect to rural marketing, the focus of Marico on visibility is little disorganised. When
you compare the rural markets with its urban markets, it is not possible to get the same
quality standards in rural markets. However, the company takes special effort in
merchandising as well as making the products exclusively visible at the outlets. Visibility is
of two types i.e paid and unpaid.
Unpaid visibility: The Company does not allot an extra budget for this activity but in spite of
that this form of spreading brand awareness is very effective. This form involves basic
merchandising which the shopkeeper/ wholesaler is made to endorse in his store. The
visibility of the product is also enhanced when the shopkeeper is persuaded to keep the
product in important place.
In our project we saw, Marico PSRs advocating the shopkeepers to keep the product in a
dominant position. We saw him persuading the shopkeepers to keep the products clean and
tidy by removing the filth and dirt himself or advising the shopkeeper to do so. Also we saw
the PSR advising the shopkeeper to keep the products that are hidden in heap of the stock to
be kept in visible position
A shelf space in a shop at Koregaon Bhima vil lage near Shikrapur Town, Pune Distri ct
There is a certain pattern that is followed while you place the stock in the shop which has to
be monitored by the PSR. Firstly the branding has to be made clearly visible when the
product is kept in the shelf and then the pattern of placing the stock should be same in each
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and every shop. For example, small 20 ml bottles should be kept in the front in the shelf,
whereas 175ml bottles should be kept back in the shelf.
Paid Visibility: Unpaid visibility can only be advocated but cannot be enforced, hence need
for paid visibility arises. The Company has a budget allocated to this kind of visibility. The
company takes special effort to make an exclusive space available for a particular product. It
could be a newly launched product or product which company wants to focus its advertising
on.
We were introduced to certain types of paid visibility by the Area Sales Manager, Pune, Mr
Mahindra Shinde ,when we enquired about the different types of paid Visibility for Marico
that are used in the markets.
1. Category Domination Windows:A category domination Window means that a shelf which is kept in a more dominant
position over the rivals in the same category .In normal Marico parlance, these are
called catdoms. The products of Marico in that particular category are placed
exclusively in a separate shelf at POS (Point Of Sale). The primary reason for using
catdoms is that exclusivity of the product is maintained and dominant display of the
product acts as a brand promoter. The buying decision also can be influenced because
of the Marico products dominance over rivals in that category.
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2. Brand Identical window: A mentioned in unpaid visibility Marico tries to maintainsimilar pattern in which the products are placed a particular shop. In the bid to
maintain the same styling norm, it provides the shopkeeper with brand identical
windows and even pays the shopkeeper to maintain the window according to the norm
mentioned.
3. Shelf Display: Shelves are exclusively provided for a particular product, a midsize ora small size shelf can be provided depending on the size of the shop. The shops are
monitored to keep only Marico products in the provided shelf.
4. POP Posters: Point of purchase posters is a very important branding tool. It isimportant to make a very strong brand recall and to induce the customer in to buying.
These posters are also provided in different sizes
The entire above are paid brand merchandizing, for example the company spends Rs
450/ month for a Catdom.There may be a merchandizing team also to make effective
the above visual displays. A sales promoter (SP) is responsible for promoting this
kind of activity in Marico.
FORECASTING AND PREDICTIONS:
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Earlier in the report we elaborated that Maharashtras rural market comes in the category
where consumer is brand conscious owing to considerate media influence. But we cannot
conclude that a certain kind of behaviour will be similar throughout the state, different
regions behave differently. Price dominated buying is a major factor when it comes to rural
markets probably that is why sachets sell in such large quantities in the rural markets. This
behaviour is different in different regions and they depend on varied factors from consumer
status to habitual consumptions.
There are various ways that it can be predicted, but there is no guarantee that prediction will
turn in to reality. Quoting an example from Marico, it had expected Saffola Arise rise to be a
commercial success taking in to account growing health consciousness among people. Marico
was trying hard to position Saffola Arise as a niche product and also had released a
commercial highlighting the benefits of Arise. They had segmented the brand as every day
rice but the fact remains that Indian consumers were not ready to pay a premium for rice as it
is still considered an essential commodity. Company now thinks that selling premium rise is
certainly not the way for profitability and hence has decided to exit from this that market. On
the other hand Safflola Masala Oats was unexpectedly a huge success more than company
had anticipated.
Marico builds its own month on month internal database about its sales .The data is compiled
from TMR reports that are sent in the end of every month, TMR stands for Town Market
Report. TMR helps understand the consumption pattern and preferences of a particular
locality. Hence TMR for each and every town is submitted which includes the secondary
targets that the company has achieved (as mentioned earlier, secondary targets is met when
the stocks reach wholesaler / retailer). This secondary sales data is tracked and a trend is
established, accordingly next targets are set and the process continues. For a seasoned brand
4-5 years of previous data is adequate to set predictions. However the problem arises when
we try to predict about a new product. For example Marico recently launched Tender
Coconut Oil recently, and it does not have any previous data to track, in this case Marico may
use Jasmine Hair Oil as a yardstick to forecast the acceptance of this new product in the
market. Also existing competition and market size of the available market has to be tracked
before launching a new product
For getting the data about existing competition, market growth etc. company relies on market
research data from companies like AC Nielson. After acquiring the data various factors are
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considered before launching a new product and then the possibilities of success are
extrapolated. This factors will also include, dominance of market leader, the growth of the
market in which the company wants to foray in, consumption pattern in that particular
category, available space in that market etc. All this information is then scrutinised and then
only the decision of launching a new product can be taken. Once that is done, the testing is
done in select cities or towns and slowly if it is a success the product is launched elsewhere.
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Recommendations
As far as we have observed about the company and its products during our one week slip
project, we just want to share our suggestion with you.
Following are the recommendations are given below:
The company should focus on aggressive advertisement for its brands like bodylotion, hair and care, and Jasmine.
The company can enter into soap industry as it is already present in personal careindustry. Last year they had entered into this industry by launching soap with a name
Manjal which was liked by people but it failed to capture the market because of
weak advertisement and promotional strategy.
The company is also present in edible oil segment with a product name Saffola gold,but company is charging premium price. The company can also come with low price
product so that they can give competition to its market leader Gemini which is a
product of Cargill.
As far as the distribution in rural is concerned
It should use its distribution strength in India to boost up other brands. Forexample, recently acquired Paras brands(Set Wet , Zatak) should be pushed more
effectively because rural consumer is adapting more sooner than ever, and it is
possible that he acclimatises to this new line of products and that forms an
consumption habit.
Focus more on building effective relations with channel partners(CFA, SuperDistributer or stockist) in involving them in strategic decisions and also them
happy by promoting Mariconian Spirit, be more every day, and other initiatives of
motivating them.
Finally cost benefit analysis can be done at a micro level for distribution purposes.This because setting 2000 population as a target can be a loophole in the system if
the consumption there is not profitable. Vice versa if the population is less than
2000 but proximity is less, than it may perhaps be possible to reach the markets
We witnessed some typical cases where there were cross distribution betweenstockists of one town in to other in the already set up networks. Also we heard of
cases of stock designated for the urban markets entering rural markets, because of
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the proximity and the factor of minuscule rate difference. Company has to take
care about these distribution discrepancies.
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DISTRIBUTION NETWORK DESIGN FOR MARICO IN RURAL MARKETS