Escolar Documentos
Profissional Documentos
Cultura Documentos
CENTRAL
UNIVERSITY OF
JHARKHAND
ASSIGNMENT ON
“UNDERSTANDING THE
MARKETING MIX OF EMAMI
LIMITED”
SUBMITTED TO:-
SUBMITTED BY:-
RAJSHREE
Page |2
CUJ/I/2016/IMBA/24
Semester - 03
Preface
Theoretical knowledge gives us the basic idea about how to
approach for certain things, but it does not tell us what practical
things are involved while we are in the field. Therefore, in order to
get the practical knowledge that how a company manages to deal
with their toughest of all, the marketing department and its various
facilities, I had undergone studying the marketing mix of the
Emami Limited.
Contents
5. Departmental Overview 10
6. Market Summary 11
(2) Price 28
(3) Place 31
(4) Promotion 35
8. SWOT Analysis 38
9. Conclusion 40
Executive Summary
The study was executed on the basis of
McCarthy, a renowned philosopher, who classified various marketing
activities into marketing mix tools of 4 broad kinds, which he called “the 4
P’s of marketing”, namely
Product
Price
Place
Promotion
At Last;
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A tale of two families, from the days of hand pulled rickshaws to a network
of over 3500 distributors.
From 1974,
The formation of Emami Group took place in this year when two childhood
friends, Mr. R.S. Agarwal and Mr. R.S. Goenka quit their jobs with the
Birla Groups and they set up Kemco Chemicals, an Ayurvedic medicine &
cosmetics manufacturing unit situated in Kolkata. It was an extremely
courageous step in the early seventies when Indian FMCG industry was
dominated by MNCs. But, then also against all the odds and with a vision
of combining the traditional knowledge of Ayurveda with modern
manufacturing techniques they started the company with a capital of Rs
20,000 only.
The company started manufacturing cosmetic products as well as Ayurvedic
medicines under the brand name of Emami from that small factory in
Kolkata. The first-rate quality of the products soon created a consumer need
and gradually few people were hired to work. A chain of distributors was
established and the sale of Emami products reached from West Bengal to all
over India.
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In 1978,
Himani Ltd almost a 100 year old company with good brand equity in
Eastern India having a well set factory in Kolkata had become sick unit and
was up for sale. Mr. Agarwal realized the opportunity soon and acquired
Himani & decided to produce in the Himani factory different types of
health care items based on Ayurveda.
In 1984,
Boroplus Antiseptic Cream was launched under the banner of Himani.
In 1989,
The next flagship brand of the company was Navratna Cool Oil, which
came in the decade of nineties under the brand Himani.
And in this year only, Emami managed to set up second factory in
Pondicherry.
In 1998,
Emami continued to expand the distribution network of the company to
South India.
In 1999,
Sona Chandi Chawanprash was launched.
In 2005,
Company created a history in the market of India by launching Fair and
Handsome, fairness cream for men the first time ever.
Emami publically issued 50 lakh shares which was listed with NSE.
In 2006,
Emami introduced a Health Care Division and a number of new brands of
Ayurvedic medicines.
In 2010,
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This year was one of the best one for the company, as they crossed net sales
of 1000 cr., they also exceeded market cap of 5000cr.
In 2011,
This year they set up its first overseas manufacturing unit in Bangladesh.
In 2012,
For a greater publicity Emami signed 4 Olympians and 1 cricketer as brand
endorsers for a single brand, Fast Relief.
In 2013,
Year of bonus issue – as they exceeded the market capitalisation of 10,000
cr.
They launched Boroplus Face Wash with Sonakshi Sinha for the
endorsements.
In 2014,
Emami declared Interim Divedend of Rs 3/share.
They entered the male deodorants space with HE, with brand ambassador
Hirthik Roshan.
They launched Zandu Balm Ultra Power and Instant Fairness Face Wash
under the brand of Fair & Handsome.
In 2015,
Emami exceeded the market cap of Rs 23,000 cr.
Launched Zandu Baln Junior.
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In totality, from its beginning till today, the Emami has grown into a huge
Rs. 1000 crore Emami Ltd under the flagship company of the Rs.3000 crore
Emami Group. Over these years of ups and downs Emami has also
undergone a number of Mergers and Acquisitions also, for eg. Acquisition
of Zandu Pharmaceuticals at 730 cr. Acquired Kesh King business at 1684
cr. Etc. Emami is still hungry for more acquisitions in health and personal
care, and we know that by -
We can acquire companies which has a Rs 50 crore to Rs 500 crore
turnover," Emami director Harsh V Agarwal said at the company annual
general meeting here.
Departmental Overview
The various departments that are held responsible for the growth and
success of the Emami Group are as follows-
(a) Research & Development - Continuous research-led innovation because of
its philosophy, people, purpose, prospects and R& D Infrastructure. Activities like
benchmarking competitors’ products and seeking “best of class” solutions. Solicit
customer reactions and suggestions and refine the product on the basis of market
feedback.
(b) Purchasing – Proactively search for suppliers and build long-term and
reliable relationships with them.
(d) Marketing – Allocate efforts to build long-run profit potential from the
targeted segments.
(f) Logistics - The activity of organizing the movement of goods and services.
(h) Finance – Analysing the overall expenditures and balancing the financial
package.
Market Summary
Emami possesses good amount of information about the market and knows
a great deal about the common attributes of the most of their prized
customers. This information leverages the company to better understand
who is served, what their specific needs are, and how Emami can better
communicate with them, and even who are still deprived of these facilities.
Newsprint - Emami Paper holds the position of being the largest manufacturer
of newsprint in India, and the yes it is the only manufacturer in eastern India with units
situated in Kolkata and Balasore. The Company has shifted its focus into paperboard
manufacturing and enjoys the monopoly.
W - www.emamipaper.in
Ball pen tips manufacturing - CRI is a specialized company that creates and
designs pen tips for the leading writing instrument brands of the world. CRI today
stands as the first and only pen tip manufacturing company in India to be awarded the
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highly prized ISO 9001-2000 Certification. It operates from two states, Ahmedabad
and Kolkata.
W - www.critips.com
Retail Pharmacy - Emami Frank Ross Ltd. is the oldest and largest pharmacy
chain in Eastern India. The first Frank Ross store was set up in 1906 with ambition of
having a network of over 300 outlets all over India has been taken up by the Group.
W - www.frankrosspharmacy.com
Contemporary Art - Emami Chisel Art Gallery since formation has been
promoting Indian art and young artists through numerous exhibitions, retrospectives,
art catalogues and publications. It has established itself as one of the finest venues in
East India, dealing in works of both modern and contemporary art. Spread across
15000 sq ft. the gallery collection includes paintings, sculptures, prints and drawings
sourced from the artists themselves, or from reputed art galleries and private
collectors.
W - www.emamichisel.com
Edible oil - The brand Healthy and Tasty is one of the most admired edible oil
brand in the country manufactured and marketed by Emami Agrotech Ltd. The
Company vision’s to pursue aggressive growth to become the prominent edible oil
player offering healthy and high quality consumer products.
W - www.emamiagrotech.in
player in private sector with its existing strength of around 1000 beds. It has 4 units in
Kolkata and one in Bhubaneswar.
W - www.amrihospitals.in
Cement - The Group has set up a Cement Plant in Chhattisgarh and a grinding
unit in West Bengal. Another grinding unit is being set up in Odisha. Emami Cement
Limited (ECL) has commenced operations of its cement business under the 'Emami
Double Bull' brand in the markets of Chhattisgarh, West Bengal, Odisha, Madhya
Pradesh, Maharashtra, Jharkhand & Bihar.
W-www.emamicement.com
Depth of the product mix refers to the variants of each product in the
respective brand / line.
Consistency of the product mix describes how closely related the various
product lines are in end use, production requirements, distribution channels
etc.
Emami in its fast moving consumer goods section has very passionately
innovating and launching brands since its formation. They have been
successful in launching brands which meet multiple consumer needs for
people with different income classes, for both the genders, for young and
old and everyone in between.
Therefore the various brands and its varieties (the Product Line and the
Depth) under this business of Emami are as follows:
I. BORO PLUS : (a) Antiseptic Cream – Ayurvedic Medicine Ointment
(b) Prickly Heat Powder
(c) Total Results Moisturizing Lotion
(d) Zero Oil Zero Pimple Face Wash
II. NAVRATNA : (a) Cool Oil
(b) Extra Thanda
(c) Cool Talc
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(a) (b)
IV. FAIR and HANDSOME : (a) Fairness Cream For Men
skin's natural glow and offers a pleasant usage experience with it's mild
fragrance.
X. 7 OILS IN ONE : Damage Control Hair Oil
Emami after years of research has brought to you a breakthrough in hair oils – a
unique combination of 7 oils- that will repair hair damage.
This extra ordinary oil, co - created by Indian and International Hair Experts,
provides incredible nourishment to hair without weighing it down. This oil with a
pleasant fragrance can be used on hair types.
It has been proven at leading Indian and International Research Institute that this
oil
Claims Made :
Reduces Hair Fall Upto 96% *
Makes Hair Upto 20x Stronger *
The depth of product mix :
The product is available in 200 ml, 100 ml, 50 ml and 3 ml packs, priced at Rs.
110, Rs 60, Rs 30 and Re 1 respectively.
(c) 3.66 Cherry Red (d) 4.0 Natural Brown (e) 4.16 Burgandy
your skin.
Emami Agrotech Limited is the edible oil and bio-diesel arm of Emami
Group of Companies, the Rs. 10,000 crore, business conglomerate based in
Kolkata. Emami Agrotech Ltd has diverse business interests in segments
such as production and distribution of Edible Oil, Specialty Fats and Bio-
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a brand known for purity and offers good quality, great taste at an
affordable price through a wide range of oils for every Indian kitchen.
Himani Best Choice is widely accepted across urban and rural habitants.
Portfolio of Himani Best Choice includes
(a) Refined Soyabean Oil
(b) Refined Palmolein Oil
(c) Refined Sunflower Oil
(d) Kachchi Ghani Oil.
Himani Best Choice is amongst the highest growing brand in eastern and
southern India. True to its name, Himani Best Choice is literally becoming
the choice of every Indian housewife.
It is available in size packs of 1ltr pouch, 1 ltr bottle, 5 ltr can .
Emami Agrotech entered into the Vanaspati market by acquiring the 60-
year-old, Rasoi brand in 2014. Rasoi Vanaspati provides great taste and
aroma in mouglai dishes and fried items. Rasoi Vanaspati is a popular brand
in Hotel and Restaurant segment in West Bengal and has an ambition to
enter into the national arena soon.
Health Facts:
Vanaspati is completely made from plant source.
It contains various kinds of fatty acids.
It is an ideal medium for deep frying.
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BIODIESEL
Emami Agrotech stores its biodiesel in tanks on the ground in a clean, dry
and dark environment. Acceptable storage tank materials include
aluminium, steel, fluorinated polyethylene, fluorinated polypropylene and
Teflon. Copper, brass, lead, tin, and zinc are generally avoided.
The Company delivers biodiesel from its state-of-the-art factory in 16 or 20
KL tankers. Other methods of supply are also being explored. Simple
mixing, splash blending and inline blending are the three methods adopted
by Emami Agrotech to blend its biodiesel with petro-diesel.
CULTIVATION
Emami Glamkot
Multilayer
Coated Board
Emami Ecostrong
Grey Board
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Using state of the art technology for manufacturing cement, Emami Cement
Limited provides various services for its consumers, channel partners and
influencers. Consumers or IHB (Individual Home Builders) are educated
and empowered with both online and offline support services through
optimal home building guides, how to videos, material calculator and useful
construction practices. Our technical van service branded as TECH
EXPRESS could be called to a site for other value added services. It's a
one-stop shop for influencers as well who are in the field of construction
and architecture. We conduct regular meets to inform our influencers about
latest technologies in construction.
Products Offered:
(a) Subh Premium Slag Cement (b) Portland Pozzolana Cement
Established itself as one of the finest venues in East India, dealing in works
of both modern and contemporary art
Art Works are available in the form of Mugs, Prints, Books and Diaries
and etc.
P a g e | 29
customers accept and are able and willing to pay. The vice versa would be
that the price should not be kept so low that customer’s perception
regarding the product only changes, and they think of the product as a low-
quality one.
So, in this era of being digital, Internet allows both sellers to discriminate
buyers and buyers to discriminate between sellers, on following grounds –
Buyers can: Get instant price comparisons from thousands of vendors.
Check prices at the time of purchase using their smartphones.
Buyers want: Free products, Discounts, Free samples and many more such
offering on the basis of which they have an ease in differentiating between
products.
Sellers can: Monitor customer behaviour while purchase actions.
Pricing Strategies
Emami through its course of pricing its products is been seen as
successfully overcoming the challenges put through them. Because the
toughest part is to understand the consumers arriving at their price
perceptions.
The major concerns are the:
Reference Prices – Emami is seen to not abruptly change the prices of
any product and has a good deal of similarity with competitor’s
product’s price ranges. Therefore, it seems that they undergo a good
amount of research and survey work in the 4th step of pricing, so that
every segment of market gets benefited and do not feel deprived of.
Price Endings – Many sellers believe prices should end in an odd
number, for then customers perception gets affected for once. For eg,
if you keep Rs.299, the price of a commodity. At once it is perceived
to be in 200’s and not of a 300.
But the Emami is not seen adopting this as any method, rather its
pricing of products are mostly found ending 5’s.
As, for 30 gm of Fair and Handsome, Emami asks Rs.75.
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Emami has also a wide network of sales done through online portals suvh
as snapdeal, bigbasket, amazon, indiamart, natural cart etc.
Emami then restructured its sales & distribution model for rural areas, the
consulting partner for the project is Ernst & Young and the project is named
"Navodaya". Consumers were targeted in Shopping malls and lifestyle
outlets. Emami also distributes its products through rural e-Choupal
through its tie up with ITC; this has enhanced the company's reach to
Rajasthan, Madhya Pradesh and Maharashtra. The company has also
appointed 11,000 individuals in rural areas to act as direct distributors to
consumers who will make products available to rural households and will
get some incentives based on performance. EL is expected to expand both
its top line and bottom line in future by virtue of its increased market share
& improved realizations and lower interest outgo.
Emami's strong presence is due to its strong distribution networks and key
highlights are mentioned below:
Pan-India presence with 400,000 retail outlets, nationwide distribution
making products available in 2.6 million outlets
30 warehouses and depots across country which are as follows –
Agartala (Tripura), Ahmedabad (Gujrat), Ambala (Haryana), Banglore
(Karnataka), Bhagalpur (Bihar), Chennai (Tamil Nadu), Coimbatore (Tamil
Nadu), Cuttack (Orissa), Dehradun (Uttaranchal), Delhi, Ghaziaba (UP),
Guwahati (Assam), Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jammu,
Kanpur, Kolkata, Nagpur (Maharastra), Pabhat, Parwanoo (HP), Patna
(Bihar), Pune (Maharastra), Raipur (Chattisgarh), Ranchi (Jharkhand),
Siliguri (West Bengal), Varanasi (UP), Vijaywada (AP).
They have also gone under rural penetration through tie ups with ITC,
Emami mobile traders and Emami small village shops in seven states.
Emami also supplies to Indian Army through Defense Depots which
are spread across 18 states across country.
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Logistics Management
In a business where timely availability of the finished product is of utmost,
recognition as a dependable manufacturer is the biggest brand.
A customer returning empty- handed is a sales opportunity lost. The
logistics team at Emami attempts to gauge demand- supply patterns in
advance.
It works in unison with the marketing and production teams and
accordingly draws out plans to make sure that Emami’s products fill up
shelves as quickly as they fly off. Further, Emami established a forum
where demand and supply scenarios were discussed at the beginning of
the month and reviewed each fortnight making it possible for concerned
function to track demand and supply dynamics on a real-time basis
leading to proactive planning .
Trade sources point out that the shift in strategy came primarily on account
of the company increasing its non-seasonal portfolio. The recovery time for
the wholesale trade from demonetisation and GST roll-out has only made
Emami increase focus on direct distribution.
In a recent analyst call, the company’s top-brass had expressed their desire
to bring down contribution of wholesale trade to between 40 and 45 per
cent by March 2018.
Wholesale channels contribute around 35-40 per cent for the FMCG
industry, while in case of Emami, it was as high as 50 per cent.
Better control: Pandey pointed out that direct distribution would enable
Emami to push for higher value products or larger SKUs in specific areas
(in metros mostly), while in the rural areas, it will focus on having the
lower unit price offerings and “aspiration” brands like ‘He’, ‘Fair &
Handsome’, ‘Kesh King’ and ‘Emami 7 Oils In One’.
Brands like Kesh King – which account for nearly 15 per cent of Emami’s
turnover and rely heavily on the wholesale channels — are expected to
benefit from the move.
Typically, the wholesale trade is known to prefer and push for faster
moving and in-demand products. Premium products often go amiss in many
cases. “From the long term perspective it makes more sense to have a direct
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Emami is expected to reach out to 8.5 lakh outlets directly by the year-end;
up from the 7.3 lakh outlets it reached out to by FY-17.
Emami is one of the most popular brands and has created a marketing
strategy that is heavily dependent on celebrities and good commercials.
Shahrukh Khan has been roped in to take part in Fair and Handsome
commercials, Amitabh Bachchan, Kangana Ranaut and Sonakshi Sinha for
Boroplus products, Hrithik Roshan for products of brand He, Juhi Chawla
for Kesh King products. Emami has both superstars Amitabh Bachchan and
Shahrukh Khan endorsing same brand Navratna, too. Kareena Kapoor and
Kangana Ranaut have also been part of brand Emami at one time or other.
Even for the endorsements of Fast Relief Emami has signed many sports
personalities as their tool for the 4th marketing mix namely promotion. A
view of the same is:-
P a g e | 38
Radio, newspapers, magazines and hoardings are also used extensively for
marketing of Emami products.
launched in Cooch Behar district of West Bengal and has now been
extended to seven states in India.
There are 200+ Emami small village shops and 2000+ Emami mobile
traders who conduct direct marketing of Emami products in the rural areas.
These ventures enable rural people to earn guaranteed income of Rs 1000
on every Rs. 4000 of goods sold.
Above mentioned benefits have helped Emami enhance its reach
throughout the country and deliver its products to the end consumer in a
timely manner. Its acquisitions abroad will also help Emami to cater to
International markets. In urban areas promotions are done shopping malls,
kirana shops and specialized distributors.
SWOT Analysis
Strengths-
Supply Chain Management: Emami products are distributed across India
through the following:
Super stockist network in Andhra Pradesh, Uttar Pradesh, Maharashtra,
Punjab and Rajasthan.
The Company invests heavily in sales and distribution IT applications
systems.
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Tie-up with fuel retail chains like IOC through its Kisan Seva Kendras to
increase rural distribution.
Raw Material Management: Raw material costs maintained appropriate in
its overall cost structure with following initiatives:
Hedging: Company strengthened their hedging policy to mitigate the risk of
volatile commodity prices.
Cost management: EL substituted select inputs, improving product yield
and quality.
Purchasing policy: Company procured raw materials from vendors from no
excisable areas like Assam, Uttaranchal and Himachal Pradesh etc at
affordable costs.
Research & Development: Emami is recognized as a company built around
pioneering products, features and conveniences.
Quality: Emami invests in quality standards, infrastructure, processes and
materials, resulting in a high quality from product conceptualization to
efficacy.
Weaknesses-
Company offers FMCG products based on Ayurveda only and hence limits
its scope of product mix.
Emami focuses only on products with higher margin.
Company depends on ITC e-Choupal to distribute its product and does not
have its own system established.
Opportunities-
The Rs 86,000-crore Indian FMCG industry is expected to register a 15%
growth in 2010 as compared to the previous year.
The growth in FMCG industry has also been fuelled by the reduction in the
excise duties, de-reservation from the small-scale sector and the concerted
efforts of the companies engaged in the business of manufacturing of
personal care and beauty care products.
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Further, rural India's demand for personal care products is growing faster
than in urban areas.
Outsourcing the manufacture of select products to reduce costs and focus
on branding. This will result in low operational costs and higher flexibility.
Also, demographic trends like increasing population and purchasing power
favor the consumer healthcare market, thus opportunities for growth.
Threats-
Industry threat: Indian FMCG industry may fail to sustain the growth,
which may in turn, affect the sustainability of the Company.
Counterfeit threat: Emami's products and packaging can be copied and
counterfeited.
Innovation threat: Emami may not be able to respond to the growing needs
and the changing aspirations of consumers.
Quality threat: Emami's brand can be impacted by inconsistent quality
leading to lower profitability.
Brand threat: Emami's brand could be affected by growing competition.
Consumer threat: An inefficient supply chain could result in product
unavailability and loss in market share.
Threat from mergers: A merger creates integration challenges, which, if not
competently addressed, can lead to a sub-optimal return on employed
capital, negating the reason for which the merger was conducted.
CONCLUSION
The Indian domestic markets have become very competitive with many
international brands and products making inroads into the market. In such a
competitive scenario, Emami Ltd has the advantage of serving a diverse
country like India, with their diverse product range, wherein consumers
belonging to different regions exhibit different buying behaviors. This
experience should help Emami to cater to emerging countries like Africa,
south-east Asia, Latin America. Emami has recognized the need to expand
P a g e | 42
In all, “Giving it all away” for customers, with the tag line of “Making
people healthy and beautifully naturally”, Emami is going all well with
better profit ratios increasing, though it came down in around 2010.
ABBREVIATIONS
FMCG: Fast Moving Consumer Goods, MNC: Multi-National Companies
NSE: National Stock Exchange, SBU: Strategic Business Unit
FSSAI: Food Safety and Standards Authority of India
BIS: Bureau of Indian Standards, EN: European Standard’s
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BIBLIOGRAPHY
REFERENCE BOOKS
Philip Kotler, Marketing Management, 15th edition, published by
Pearson Education Limited.
WEBSITES
www.emamailtd.in
www.emamirealty.com
http://www.emamiagrotech.in/
www.indiamart.com
http://www.thehindu.com (for distribution channel)
https://en.wikipedia.org/wiki/Emami
www.bigbasket.com
www.snapdeal.com
http://www.naturalcart.in/brands/emani.html
https://www.medplusmart.com/manufacturer/EMAMI (for
pharmaceutical products)
http://www.emamiltd.in/about-us/13/distribution-centres.php
THANK
YOU..