INTRODUCTION

Marico is a leading Indian Group in Consumer Products & Services in the Global
Beauty and Wellness space. Marico's Products and Services in Hair care, Skin Care
and Healthy Foods generated a Turnover of about Rs. 23.9 billion (about USD 478
Million) during 2008-09. Marico markets well-known brands such as Parachute,
Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya,
Aromatic, Fiancée, Hair Code, Caivil, Code 10 and Black Chic. Marico's brands and
their extensions occupy
leadership positions with significant market shares in most categories- Coconut Oil,
Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils,
niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through
Kaya Skin Clinics (101 in India, Middle East and Bangladesh) and its soap franchise.

Marico's branded products are present in Bangladesh, other SAARC countries, the
Middle East, Egypt, Malaysia and South Africa. The Overseas Sales franchise of
Marico's Consumer Products (whether as exports from India or as local operations in
a foreign country) is one of the largest amongst Indian Companies and is entirely in
branded products and services.
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.

 In March 1996, the Company made a fresh issue of 10,00,000 equity shares
of Rs.10/- each, at a premium of Rs.165/- per share, simultaneously with an
offer for sale by the promoters of 26,25,000 equity shares of Rs.10/- each, at
a premium of Rs.165/- per share.

 In 2002 Marico Industries Ltd has informed BSE that the Board approved the
Issue of bonus redeemable preference shares of aggregate face value of Rs
290 million. Ratio -- 1:1 on equity enhanced after bonus issue of equity
shares made by the Board on April 18, 2002 and approved by shareholders on
July 18, 2002. The rate of dividend is 8% p.a.Increase in authorised share
capital of the Company from Rs 300 million to Rs 600 million.

 Marico acquires HLL`s Nihar for Rs 216 cr in 2006

 In 2007 Marico Ltd has appointed Mr. Anand Kripalu as an Additional Non-
Executive Director on the Board of Directors of the Company.

PRODUCTS
 Saffola Hot Oil

Hair & Care Nihar Shanti Badam Amla

Mediker Caivil

VISSION AND MISSION

'COME WIN' ---- their vision and mission is captured in this acronym, which when
bifurcated means the following: -

Consumers: For they are the reason we exist.

The primary focus of our efforts will be to not only understand what adds greatest
value to the consumer but also change and reinvent ourselves if need be. We will
translate the consumer's needs and desires into marketable products and an ever-
expanding base of loyal consumers, with speed and a quality of response that
surpasses the competition.

Membership: For a sense of ownership empowers us.

Wholesome membership is when a person brings his/her entire being into the
organization. It also gives each member a role in articulating and shaping the destiny
of the organization, which in turn, builds commitment and ownership.

Excellence: For it unleashes our potential.

We will focus on policies and practices where people produce consistently superior
performances and where people are encouraged to discover their untapped potential.

Wealth: For on it hinges our growth.

All our efforts must culminate in the creation of wealth. We will do so by continuously
adding value in everything we do through a variety of methods. We will use sources
productively, eliminate waste, reduce cycle times and costs and enhance the
consumer base.

Innovation: For it gives wings to ideas.

The future of our organization rests on our willingness to experiment, push in new
and untested directions, think in uncommon ways and take calculated risks.
Continuous improvement should be a part of everyday work. We acknowledge that
failure is inherent in any new initiative. We will commit resources for experimentation
and invest in processes for reviewing and sharing of learning.

Marico's Goals and objectives (which they wish to achieve by 2010)

We commit ourselves to improving the quality of people's lives in several parts of the
world, through branded fast moving consumer products and services.

SWOT ANALYSIS
Before going to the Marico Company’s SWOT Analysis we must understand which
things are included in the SWOT analysis;

SWOT Analysis of Marico Ltd.

Various Environmental Analysis
 Strategic Advantage Profile (SAP)

Introduction
A competitive advantage is an advantage over competitors gained by offering
consumers greater value, either by means of lower prices or by providing greater
benefits and service that justifies higher prices.

Concept of Competitive Advantage

"Competitive advantage exists when there is a match between the distinctive
competencies of a firm and the factors critical for success within its industry that
permits the firm to outperform competitors."

It concludes, then, that competitive advantage is externally focused while

organisational competence is internally focused. Therefore, an organisation's
competence does not automatically lead to competitive advantage. This
phenomenon can be explained by two situations:

1. The core competence of the organisation may not be of any importance to the
industry in which the organisation is operating. There are numerous examples
of this phenomenon; organisations diversifying into non-core competence
areas, failing therein and divesting such business. Metal Box, having core
competence in packaging materials, diversified into bearing and had to divest
it, and so on.
2. Even if core competence has relevance in the industry segment, other
competitors may have the same strength and the particular organization may
not have any competitive advantage. What becomes, then, important for the
organization is to have relatively greater strength in that important factor than
its competitor, For example, two competitors may enjoy low manufacturing
costs; but one with the lower manufacturing costs has a competitive
advantage.
Competitive Advantage Profile: A Case of MARICO
Marketing Factors
 India’s fast moving consumer goods (FMCG) sector is the fourth largest sector
in the economy of India with a total market size in excess of US$ 13.1 billion.
 Many giant players, both foreign as well as domestic, are competing in the
market with a view to capture it.
 Marico Company a leading Indian FMCG Company having excellent
distribution channel and deep rural reach in India.
 Marico and especially for having efficient distribution channel, Satisfaction
Level of Retailers on Various Products as well as other micro Parameter's
plays a vital role indentifying the flaws and merits of Marico.
 Renowned Brands like Parachute, Saffola, and Kaya Skin Clinics.
 Brands – quite powerful.
 Strong in inventory control (28 days).
 Physical distribution for superior to competitors.

Production Factors
 Size advantages in relation to competitors.
 Finesse in production planning, scheduling, and matching with marketing
requirements.
 In house production – no outsourcing – high reliability suppliers – superior
quality assurance.
 India and foreign production location – spread benefit.
 Human resources high calibre.

Finance Factors
 A Turnover of about Rs.13.6 billion (about USD 380 Million) during 2008-09.
 Cash rich.
 CAGR of 13% in turnover, 15% in profits - over last 5 years

Competitive Advantage Profile: A Case of MARICO (Descriptive

Form)
Capability Factors Competitive Strengths & Weakness

Finance High cost capital, reserves & surplus

Marketing Various Products, Domestic and Foreign market

gainer

Operation P&M excellent – parts & components available

personnel Quality management & personnel par with

competition

ENVIRONMENT THREAT AND OPPORTUNITY PROFILE

(ETOP)
Environmental scanning usually refers just to the macro environment, but it can also
include industry, competitor analysis, marketing research (consumer analysis), new
product development (product innovations) or the company's internal environment.

Macro environmental scanning involves analysing:

 Economy
 Government
 Legal
 Technology
 Potential Suppliers
 Socio-cultural

Economy

 GDP per capita

 economic growth
  unemployment rate
 inflation rate
 consumer and investor confidence
 inventory levels
 currency exchange rates
 merchandise trade balance
 financial and political health of trading partners
 balance of payments
 future trends

Government

 political climate - amount of government activity

 political stability and risk
 government debt
 budget deficit or surplus
 corporate and personal tax rates
 payroll taxes
 import tariffs and quotas
 export restrictions
 restrictions on international financial flows

Legal

 minimum wage laws

 environmental protection laws
 worker safety laws
 union laws
 Sunday closing laws
 municipal licenses
 laws that favour business investment

Technology
  Efficiency of infrastructure, including: roads, ports, airports, rolling stock,
hospitals, education, healthcare, communication, etc.
 industrial productivity
 new manufacturing processes
 new products and services of competitors
 new products and services of supply chain partners
 any new technology that could impact the company
 cost and accessibility of electrical power

Potential suppliers

 Labour supply
o quantity of labour available
o quality of labour available
o stability of labour supply
o wage expectations
o employee turn-over rate
o strikes and labour relations
o educational facilities

 Material suppliers
o quality, quantity, price, and stability of material inputs
o delivery delays
o proximity of bulky or heavy material inputs
o level of competition among suppliers

 Service providers
o quantity, quality, price, and stability of service facilitators
o special requirements

Socio-cultural
  Demographic factors such as:
o population size and distribution
o age distribution
o education levels
o income levels
o ethnic origins
o religious affiliations

 Attitudes towards:
o materialism, capitalism, free enterprise
o individualism, role of family, role of government, collectivism
o role of church and religion
o consumerism
o environmentalism
o importance of work, pride of accomplishment

 Cultural structures including:

o diet and nutrition
o housing conditions

Scanning these macro environmental variables for threats and opportunities requires
that each issue be rated on two dimensions. It must be rated on its potential impact
on the company, and rated on its likeliness of occurrence. Multiplying the potential
impact parameter by the likeliness of occurrence parameter gives a good indication
of its importance to the firm.

ETOP MATRIX OF MARICO COMPANY

Environmental Degree of importance Degree of impact
factors
High Medium low High Medium low

(3) (2) (1) ±3 ±2 ±1

Economic

Inflation rate - - 1 - - +1

Economic 3 - - -3 - -
growth

Consumer and
- - 1 - - -1
investor
confidence
Legal

Minimum wage - 2 - - - +1
laws

Budget deficit
3 - - +3 - -
or surplus

- - 1 -3 - -
Environmental
protection laws
Technology

Cost and 3 - - +3 - -
accessibility of
electrical power

Industrial
productivity
3 - - - -2 -

ORGANISATIONAL CAPABILITY PROFILE (OCP)

OCP is a summarized statement which provides overview of strengths and weakness
in key results are as likely to affect future operation of the organisation. Information in
this profile may be presented in qualitative terms or quantitative terms. Where the
information is presented in qualitative terms, strengths and weakness described in
the form of narration. However these narrations do not show the degree of strengths
and weakness. Quantitative presentation of strengths and weaknesses solves this
problem. In the quantitative presentation, all the factors appraised are assigned
degree/values along a scale. Such values may be on 5 point scale with 5 denoting
the highest value and 1 denoting the lowest value of strengths and weaknesses. The
values that are assigned to a factor are subjective depending on the perception and
judgment of appraisal. Such an exercise may run into several pages depending upon
the factors appraised.

After the preparation of OCP, the organization is in a position to assess its relative
strengths and weaknesses vis-a- vis its competitors. If there is any gap in any area,
suitable action may be taken to overcome that.

Financial capability factors of MARICO Company

 Cash management
 Centralized payment
 Decentralized collection
 Low investor confidence

Marketing capability factors of MARICO Company

 Distribution channel
 Wide variety of product
 Low company image
 Low promotion
 Fixed price

Operation capability factors of MARICO Company

 Plant location as per raw materials availability
  Absorb imported technology
 R & D system is so good
 MIS system of operation and control system

Personnel capability factors of MARICO Company

 Good personnel system
 Good industrial relation with other company

Summarized form of OCP

OCP Weakness Normal (0) Strengths

(- 5) (+ 5)
Financial capability factors

a. Source of funds and cost - - 3

b. Usage of funds
- 0 -
c. Management of funds
- - 2
Marketing capability factors

a. Product related - - 5
b. Price related
-1 - -
c. Promotion related
d. Distribution related -3 - -

- - 1
Operation capability factors

a. Plant location
 b. Production system - 0 -
c. Operation and control system
- - 2
d. R & D system
- - 3

- - 5
Personnel capability factors

a. Personnel system - - 1
b. Organisational and employee
- - 2
characteristics
c. Industrial relations
d. Quality and motivation of
- 0 -
personnel
- - 1

THE BOSTON CONSULTING GROUP’S GROWTH-SHARE

MATRIX (BCG)
BCG Matrix Include;
1. Stars are high market share/high growth businesses. The preferred strategy is
growth.
2. Question Marks are low market share/high growth businesses. The preferred
strategies are growth for promising question marks and restructuring or
divestiture for the other question marks.
3. Cash cows are high market share/low growth business. The preferred strategy
is stability or modest growth.
4. Dogs are low market share/low growth businesses. The preferred strategy is
retrenchment by divestiture.

BCG MATRIX OF MARICO

STAR
It is represented by a SBU or a product having high relative market share and high
market growth rate. It need capital over and above its cash flow to maintain it’s
market share. However in may be self sustained in terms of cash flow when it is
established and beginning to mature ultimately it becomes cash cow, on maturity,
because it cannot absorb further cash. It cannot absorb further cash; it provides cash
for growing stars. It suggested Expansion Strategy for STAR

E.G. KAYA SKIN CARE AND PERACHUTS COCONUT OIL IN MARICO AND IN
THE INDUSTRY HLL AND GODREJ COMES IN THIS CATEGORIES.

These product is in STAR but there cash flow will be less it will be become cash cow
because there use full all over the world.
QUESTION MARK
It represented by a SBU /Product having low relative market share and high market
growth rate I.E low market share in a growing market. It requires large cash due to
market growth, but generates less cash due to low market share.It requires additional
investment to increase it’s competitive advantage or divestment.

E.G NIHAR, SAFFOLA (FUNCTIONAL OIL) AND IN THE WHOLE INDUSTRY

DABUR COMES IN IT.

These product company given more advertisement. Because these product not more
popular in the market. So company given more cash to these product.

CASH COW
It represent by a SBU/Product having high relative market share and low market
growth rate. It generates substantial cash over and above it’s investment
requirement. It may be a SBU/Product in maturity life cycle stage. It is not attractive
in long ran due to less market growth rate to meet the investment need of stars on
question marks, over heads and growth strategy is suggested.

E.G SAFFOLA (EDIBLE OIL), SILK N SHINE AND IN THE ABOVE EXAMPLE ITC
COMES.

These product market share is high but there market growth rate is low because
there competitor is so much in market. In the market SAFFOLA OIL competitor is so
much like as FORCHUN OIL , DARA OLI etc.

DOG
It represents a SBU/Product having low relative market share and low market growth
rate. It has very low competitive position due to high costs, poor quality ,poor
marketing etc.It also has low growth potential due to low market growth rate. It does
not generate enough cash even for its own continuity. So Retrenchment Strategy
usually by divestment or liquidation is suggested.

It may be in the declining stage of its life cycle. Government policy may retain a dog
artificially.

E.G MAHA THANDA AND IN THIS EXAMPLE MARICO COMES

These product in market so very people know and there marketing is so less to other
product of company.

This product competitor is NAVRAT COLL DABAR Etc.

GE NINE-CELL MATRIX McKINSEY & Co

This matrix follows two dimensions;

Industry Attractiveness
 Market Size and growth rate
 Industry profitability
 Seasonality
 Political Factors
 Capital requirements etc.

Business Strength
 Relative Market Share
 Relative price, service
 Knowledge of Customers & Markets
 Financial Resources
 HIGH AVERAGE WEAK
HIGH 1 2 6
MEDIUM 3 4 7
LOW 5 8 9

Cell 1:
It has high business strength and strong Industry attractiveness. It is suggested the
growth strategy. In long run other players may be attracted and Industry
attractiveness reduces.

E.G: Like as parachute is more attractiveness but now there competitors are so
much but there attractiveness is same as earlier.

Cells 2:
It shows average business strength and high industry attractiveness. So it suggested
growth strategy by building up of business strength.

But if it does not happen it is dangerous.

E.G: Like as Parachute Advanced Oil attractiveness is high but there competition of
this product strength is average because in the market parachute Oil is sold. So that
here, only company change name. The product attractiveness is so much but here
product strength is average.

Cells 3:
It has High Business Strength and attractiveness is medium. Here growth Strategy
suggested.

E.G: Like as NIHAR and SILK N SHINE strength is high but there attractiveness is
medium because their competitors is so much in these product.

Cell 4:
It has business strength is average and attractiveness is medium. It will be hold and
continue to earn. It say Suggested Stability Strategy.

E.G: Like as SAFFOLA (OIL) there both are average but in the market there are
many products is strong to compare to SAFFOLA.

Cells 5:
It has high business strength and Low attractiveness of Industry can grow by neither
vertical integration nor diversification where its strength can be utilized. Otherwise, it
should be continued to harvest profit.

Cells 6:

It has high attractiveness of industry but low business strength. It suggested stability
and growth for business strength. It may continue to earn in attractive industry or
improve its strength and grow or if it is not possible its divest.

Cells 7 & 8:

In the res zone suggest harvestmen or turnaround strategy .

Cells 9:

It is least attractive and weak, so immediate is suggested.

STRATEGIC BUSINESS UNIT

Marico’s Strategic Business Unit

Consumer Products Business:

Over the past 17 years, Marico has been continually improvising and building new
brands. Marico's Consumer Products Business houses well-known brands such as
Parachute, Saffola, Sweekar,Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal,
among others, which occupy leadership positions with significant market shares in
most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment,
Premium Refined Edible Oils, niche Fabric Care etc.

Every month, over 70 Million consumer packs from Marico reach approximately 130
Million consumers in about 23 Million households, through a widespread distribution
network of more than 2.5 Million outlets in India and overseas.

International Business Group:

The International Business Group of Marico operates in more than 20 countries
spread across Asia, Middle East and Africa and has manufacturing facilities in Egypt,
South Africa & Bangladesh.

The International Business group has witnessed phenomenal growth over the years
and contributes to 25% of Marico’s turnover. The company has full fledged
operations in Egypt, South Africa, Middle East and Bangladesh.

In addition, the International Business group is actively involved in creating

opportunities for future growth and has enabled our brands to be present in many
other markets across the globe.

Kaya:

Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith marking
Marico's entry into skin care solutions business. It was a true reflection of uncommon
sense for a company in hair care products to move, instead of merely logical product
extensions, straight into skin care services. It attempted to leverage Marico's
strengths in the Personal Care business and in-depth understanding of the needs of
the Indian consumer and her/his desire to enhance her/his natural beauty with the
best cosmetic dermatology procedures available internationally.

Kaya Ltd. has been focused on meeting the emerging needs of the modern day
consumers by providing useful and effective services in the beauty and wellness
space. The pioneering effort has been in the area of skin care with Kaya Skin Clinic.
Over the last 7 years Kaya Skin Clinic has refined the standards and
professionalisms of the skin care industry through innovative, world class treatments
and services that have been tailor made to suit Indian skin.

Kaya Skin Clinic

The philosophy at Kaya is governed by the single value of placing the customer first
at all times. The emphasis, therefore, is to offer personalized, world-class skincare
treatments and services, most suited for Indian skin, in a zen like, state-of-the-art
clinic. Since its first prototype in Bandra in 2002, Kaya Skin Clinics has grown at an
unprecedented pace, with over 100 clinics in India, Middle East and Bangladesh.

Kaya Services

Kaya has a host of services that will help you attain, regain, preserve and protect the
intrinsic beauty of your skin. All this is offered in serene, zen like ambience, under the
reassuring care of dermatologists and experienced skin practitioners, to aid you to
easily look your best, always.

Skin Beauty Services:

 Skin polishing and brightening

 Kaya Glow

 Kaya Back shine

 Meso Glow

 Skin Lightening Peel

 Kaya Advanced Facial

 Kaya Express Glow

BUSINESS LEVEL STRATEGIES

1. Cost Leadership Business Level Strategy
In company attains there competitive advantages & Increased their market share by
offering products and services. Company offering product and services having the
same utility, utility features as competitors’ products and services. Company
substitute products and services; but the price lower than their competitors. Because
of its core competence in engineering, design, manufacturing, distribution etc.When
there is price elasticity of demand i.e. positive co-relation between price reduction
and demand.

Cost leadership is achieved by Marico Company

 Early entry in business.

 Accurate demand forecasting.

 High capacity utilization.

 High level of standardization of products and uniform services packages.

 Aiming at average customer by giving generalized set of utilities & thereby

attracting more customers.

 Conditions For Cost Leadership Being Successful Are As

 Price based competition is so severe that cost becomes an important factor.

  Buyers are price sensitive and low price attracts more buyers.

 Buyers are many and have bargaining power for price reduction

 There are very few ways of differentiation and it is not important to customers.

Advantages of Cost Leadership Are As Following:

 In company it protection against competition if a company make lower structure of
products.

 There is less effect because powerful suppliers bargain for high price so that such
price rise to better absorbed in low cost structure.

 It serves as entry barrier to new company which can not produce at lower price.

Company has so many products so that company use these strategy for there
product market share increase in market. If company not use these strategy for there
product company not sell there product in market because company’s so many
competitors. So many products growth is so much as compare to there anther
products.
2. Differentiation Business Level Strategy
Company make such product/services is differentiating from there competitors.
Which are not offered by competitors. Company see the which customers are ready
& willing to pay premium price which can compensate additional cost of
differentiation.

Company Make Differentiation at These Point

 By enhancing the quality i.e. offering stronger, bigger, better, vastly, improved
products.

 By enhancing versatility, safety, utility and convenience for customers to

match their tastes and preferences.

 By changing size, weight, materials. Accessories of products i.e. from of

products.

 By style improvement by increasing aesthetic appeal, by symbols, by media,

by atmosphere, by new packaging etc.

 By improving the quality of inputs i.e. raw materials.

 By better durability, reliability, design, process of manufacturing, modern,

technology, collaboration with valued partner, unique location etc.

 By lower operational cost of using the products/services.

 By offering complete range of products /services etc.

 By coverage, expertise and performance of channels.

 Company make product for Skin is KAYA Skin Care these is so much
differentiation to other.

Company make for night crème is PARACHUTE NIGHT REPAIR CREME.

 GROWTH STRATEGY

Growth is a way of life. Almost all organizations plan to expand. This strategy is
followed when an organization aims at higher growth by broadening its one or more
of its business in terms of their respective customer groups, customers functions, and
alternative technologies singly or jointly – in order to improve its overall performance.

There are five types of expansion (Growth) strategies

♦ Expansion through concentration

♦ Expansion through integration
♦ Expansion through diversification
♦ Expansion through cooperation
Growth through Acquisitions

Marico has acquired five companies in the last 18 months to expand its product lines
and business. The company acquired a number of brands such as Aromatic soap in
Bangladesh, Manjal toilet soap and Nihar hair oil in India, and Fiancée hair care
brand in Egypt. The Ready Group's Fiancée hair care brand has captured 20 per
cent of the Egyptian market. Marico is leveraging the popularity of the Fiancée brand
to expand its business in Egypt and other parts of the Arab world.
 VALUE CHAIN ANALYSIS OF MARICO

Concept
A value chain is a chain of activities for a firm operating in a specific industry. The
business unit is the appropriate level for construction of a value chain, not the
divisional level or corporate level. Products pass through all activities of the chain in
order, and at each activity the product gains some value. The chain of activities gives
the products more added value than the sum of added values of all activities. It is
important not to mix the concept of the value chain with the costs occurring
throughout the activities.
Activities
The value chain categorizes the generic value-adding activities of an organization.
The "primary activities" include: inbound logistics, operations (production), ,
marketing and sales (demand), and services (maintenance). The "support activities"
include: administrative infrastructure management, human resource management,
technology (R&D), and procurement. The costs and value drivers are identified for
each value activity.

Support
activities

Administrative Infrastructure Management

Human Resource Management

Technology (R&D)

Profit Procurement Profit margin

Margin
Inbound Operation Outbound marketing services

logistics logistics & sales

Primary
activities
Primary activities of MARICO

Inbound logistics
These are the activities concerned with receiving the materials from suppliers, storing
these externally sourced materials, and handling them within the firm.

 Here goods are received from a company's suppliers.

 They are stored until they are needed on the production/assembly line. Goods
are moved around the organization.
 MARICO purchase their raw material from all around the world.
 In order to maximize their availability of raw material MARICO maintain good
relationship with their suppliers.
 MARICO use JIT (Just in Time) approach for handling of raw material.

Operations
These are the activities related to the production of products and services. This area
can be split into more departments in certain companies. For example, the
operations in case of a hotel would include reception, room service etc.

 This is where goods are manufactured.

 Operations could include organizing the parts to make final FMCG Product.
 MARICO are known for their reliability which comes from efficient operations.

Outbound logistics
These are all the activities concerned with distributing the final product and/or service
to the customers. For example, in case of a hotel this activity would entail the ways of
bringing customers to the hotel.

 The goods are now finished, and they need to be sent along the supply chain
to wholesalers, retailers or the final consumer.
 MARICO manage their Distributor and Super Distributor in different rural and
urban area.
 MARICO make their product easily assessable.

Marketing and sales

This functional area essentially analyses the needs and wants of customers and is
responsible for creating awareness among the target audience of the company about
the firm’s products and services. Companies make use of marketing communications
tools like advertising, sales promotions etc. to attract customers to their products.

 MARICO given TV ads and magazine for a marketing.

 This area focuses strongly upon marketing communications and the
promotions mix.
MARICO’s Supply Chain

Service
There is often a need to provide services like pre-installation or after sales service
before or after the sale of the product or service.
  This includes all areas of service such as final checking, after-sales service
Like quality, quantity, packaging, weight etc..
 MARICO values their customers.

Support activities of MARICO

Procurement
This function is responsible for purchasing the materials that are necessary for the
company’s operations. An efficient procurement department should be able to
obtain the highest quality goods at the lowest prices.

 This function is responsible for all purchasing of goods, services and

materials.
 The aims to secure the lowest possible price for purchases of the highest
possible quality.
 MARICO will be responsible for outsourcing and e-Purchasing (using IT and
web-based technologies to achieve procurement aims).

Human Resource Management

This is a function concerned with recruiting, training, motivating and rewarding the
workforce of the company. Human resources are increasingly becoming an important
way of attaining sustainable competitive advantage.

Employees are an expensive and vital resource. MARICO manage recruitment and
selection, training and development, and rewards and remuneration. MARICO
consider their employees as HUMAN CAPITAL. Equal support comes from our HRD
team, which expends its energies, formulating and building strategies to build a
stable and high - talent organisation. The innovations and the quest for excellence at
Marico continue unabated. Even as the success stories continue, the focus from the
consumer never shifts.
Toyota motors uses following techniques to retain their employs
  Recruitment
 Selection
 Training and development
 Compensation
 Maintenance

Technology Development
This is an area that is concerned with technological innovation, training and
knowledge that is crucial for most companies today in order to survive.

 Technology is an important source of competitive advantage.

 Companies need to innovate to reduce costs and to protect and sustain
competitive advantage.
 MARICO implemented production technology, Internet marketing activities,
lean manufacturing, Customer Relationship Management (CRM), and many
other technological developments.

Firm Infrastructure
This includes planning and control systems, such as finance, accounting, and
corporate strategy etc.

 This activity includes and is driven by corporate or strategic planning.

MARICO implemented Management Information System (MIS) and other
mechanisms for planning and control in different departments.