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MARICO Industries (Case Study)

Marico Industries began in 1948 as Bombay Oil Industries and separated its consumer products division into Marico Industries Ltd in 1990. In 1998, Marico implemented a Competency, Culture and Customer framework and formed distribution alliances to expand its product portfolio and rural distribution. It has since acquired and launched numerous brands across categories, expanded overseas, and transitioned to a more market-focused organization structure. Marico's implementation of a Competency-based Sales Organization in 1998 aimed to build core distribution skills, add third-party sales, and improve geographical coverage through its network of distributors and sales representatives.

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116 views15 pages

MARICO Industries (Case Study)

Marico Industries began in 1948 as Bombay Oil Industries and separated its consumer products division into Marico Industries Ltd in 1990. In 1998, Marico implemented a Competency, Culture and Customer framework and formed distribution alliances to expand its product portfolio and rural distribution. It has since acquired and launched numerous brands across categories, expanded overseas, and transitioned to a more market-focused organization structure. Marico's implementation of a Competency-based Sales Organization in 1998 aimed to build core distribution skills, add third-party sales, and improve geographical coverage through its network of distributors and sales representatives.

Uploaded by

Rajat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MARICO industries

(case study)

Timeline

1948 : Set up as Bombay Oil Industries

1990 : The consumer products division separated into Marico Industries Ltd

1998 : Implementation of CSO began, worked upon 3 dimensions

Competencies, Culture and Customer & also a distribution alliance with Indo Nissin to
launch Top Ramen

Also launched a rural distribution model

1999 : Formed distribution alliance with P&G to distribute its 5 products namely
Ariel bar soaps, Camay soaps, Pampers, Old Spice and Clearsil

1999 : Expands with first overseas manufacturing facility in Bangladesh [Marico


Website]

1999 : Acquires Mediker, an anti-lice shampoo, from Procter and Gamble (P&G)

2000 : FMCG sector grew at a rate of 6.7%

2002 : Introduction of MIDAS (An ERP software), Mi net

2002 : Marico ventures into skin care solutions from FMCG (Kaya Skin Clinic
Indias first unisex top of the line dermatology led clinics) [Marico Website]

Previous Organization structure


(Functional)
CEO

VP (Marketing)

VP
(Manufacturing)

VP
(H R)

VP (Finance)

VP (Sales)

Marketing

Manufacturing

Human Resource

Finance

Sales

Current Organization structure


(After 1998)

Marico - Brands

REASON FOR CSO

Introduce niche brand and brand extensions


New area of competence
Gathering marketing intelligence
Sales detailing from field sales force
Level of competition increasing
Rate of distribution turnover and attrition increases
Driving down cost(In supply chain)
Distribution arm of other companies in FMCG
sector

OBJECTIVES OF CSO
Build cadre of foot soldiers to track changes in
consumer attitudes
Develop core skills in distribution
Add value by serving as platform for third party
sales
Geographical coverage
No. of retail outlets
Terms of skill sets and competencies

FMCG Market
Fragmented Indian FMCG market
Unorganized sector made up more than 70% of
the market
Organized Sector size $12 billion
Indian economy poised to grow at 7% per annum
Low per capita consumption Latent Demand
Young Population (47%55% in 2015)
Low margin business
6M retail outlets 70% in countrys rural
Distribution was single largest entry barrier

CHANGING ROLES
Frontline territory sales officer from volume derivative to
trainer and market strategist
Distributor from trade of goods to Sales manager, planning,
measuring and reviewing work of salesperson
Distributor Salesman from intermediary to Tracker keeping
tabs on no. of outlets covered
Forwarding agent from space provider to depot manager

INFORMATION TECHNOLOGY
Simplifying procedures, eliminating paper work and releasing
time for field force and market coverage.
Developed MIDAS(Marico Industries Distributor Application
Software) and Mi-net, a web based IT solution
Stock outs dropped from an average of 30 days to 20 days
Lost secondary sales dropped by more than half
Forecast accuracy improved from 70 percent to 90 percent

Maricos objectives going


forward..

Disintermediation

Increase in infrastructure in regional pockets

Increased retailer-manufacturer relationship

Creating value and demand generation

MARKETING EFFORTS

Morphed from selling commodities to building brands


New products generated 20 percent of Maricos turnover
Using Big Bets approach to identify few risky but workable ideas through
prototyping
Launched affordable packs at different price points
Marico didnt play price war
Distribution alliance for third party sales
Launched rural distribution system comprising of 125 super distributors
employing close to 200 travelling pilot sales representatives
Alternative distribution channels i.e. direct to homes and direct to office
Regional players as competitors

Difference between Marico and


Geta
MARICO

GETA

Product focused marketing


organization
FMCG industry
Many products, wide market
Rural marketing
No price wars
More product based
Lower pack sizes
Both B2B and B2C market
Order conversion timeline is
relatively low
After Sales negligible
Frequent Purchase

Functional market organization


(part geographical)
Heavy equipment
Limited products and narrow
market
More regional based
B2B market
Order conversion timeline is high
After sales service
mandatory(Installation,
servicing)
Reorder(Replacement) timeline
may vary from 2-3years

Marico Transformation

THANK YOU!

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