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CENTRAL
UNIVERSITY OF
JHARKHAND

ASSIGNMENT ON

“UNDERSTANDING THE
MARKETING MIX OF EMAMI
LIMITED”

SUBMITTED TO:-

Mr. NAGAPAVAN CHINTALAPATHI

SUBMITTED BY:-

RAJSHREE
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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.

Emami, a culture… a world… a bursting potential, transforming


green field site into the basis of affluence, which has changed the
very face of India.

The project will also serve as a basis knowledge in respect of


analysing the strengths, weaknesses, opportunities and threats.

The project report covers the various activities of pricing,

distribution, sales, promotion, the production etc.


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Contents

Sl.No TOPICS Page No.


.
1. Executive Summary 4

2. Objective of the Study 5

3. Emami Limited – Company Profile 6

4. History, Formation and Growth of the 7


Company

5. Departmental Overview 10

6. Market Summary 11

7. Marketing Mix - (1) The Product Concept 13

(2) Price 28

(3) Place 31

(4) Promotion 35

8. SWOT Analysis 38

9. Conclusion 40

10. Abbreviations & Bibliography 42


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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

The overview (diagrammatical representation):-

Objective of the Study


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The purpose of this assignment on “Understanding the


Marketing Mix Of Emami Limited”, undertaken was to:

(a) To get insights upon how Emami Group of Industries


came into establishment.

(b) To understand the 4 P’s of marketing.

(c) To gather knowledge about how these 4 P’s are handled.

(d) Studying the key businesses of Emami ltd., and


understanding the product diversification.

(e) Market study.

(f) To know the pricing strategy, the sales and


distribution and the various promotional techniques used by
Emami.

(g) Conducting a SWOT Analysis to understand the


strengths, weaknesses, opportunities and threats.

(h) In totality, the assignment is done to know the very


basics and even minute tactics used by Emami to
manufacture, price, locate, promote and sell its products.
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Emami Limited - Company


Profile

Emami Ltd. is the flagship company of Kolkata based Emami Group,


which is engaged in the business of manufacturing of the personal care and
health care products from past 3 decades and has diversified in the other
SBUs like real estate, paper, biofuel, cement etc. Emami Limited is a fast
moving consumer goods company. The Company is engaged in providing
Ayurvedic Medicinal Products, and Cosmetic and Toiletries. Therefore, the
flagship company of the eponymous group, Emami focuses on consumer
products in the health, beauty and personal care sub segments. The Emami
Group is one of the largest business groups in eastern part of India, with
interests in different business verticals. Some of the major brands of the
company are Fair and Handsome Fairness Cream for men, Boroplus
Antiseptic, Boroplus Prickly Heat Powder, Navratna Oil, Mentho Plus
balm, Himani Fast Relief, Sona Chandi Chyawanprash and others.
Therefore, in a brief context the profile can be described as:-
Established in early 70's, Emami group has grown in India with presence
diversified sectors. Founded by two friends, Mr RS Agarwal and Mr RS
Goenka, Emami today is a trusted and loved brand of the nation with over
25,000 employees and a group turnover of about Rs.12,000 cr with a
market valuation of around Rs. 50,000 cr.

At Last;
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VISION – The consumer is reflected through this statement of Emami


“Making people healthy and beautiful, naturally”.
MISSION – To contribute whole heartedly towards the environment and
society. To drive growth through quality and innovation. To uphold the
principles of corporate governance. Etc.

History, Formation & Growth


of the Company (Year after
year)……….

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.

(c) Manufacturing – The Company, Emami limited meets the customer


requirements with continuous search for better product quality and aiming at zero
defects.

(d) Marketing – Allocate efforts to build long-run profit potential from the
targeted segments.

(e) Sales – Specialized knowledge of customer’s industry, making promises they


can keep etc.
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(f) Logistics - The activity of organizing the movement of goods and services.

(g) Accounting – Preparation of periodic profitability records.

(h) Finance – Analysing the overall expenditures and balancing the financial
package.

(i) Public Relations – Triggers the public image of the company.

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.

KEY BUSINESSES / TARGET MARKETS are:-


 FMCG - Emami Limited is one of the leading and fastest growing personal and
healthcare businesses in India, with an enviable portfolio of household brand names
such as BoroPlus, Navratna, Fair and Handsome, Zandu balm, Mentho Plus balm and
Kesh King.
W - www.emamiltd.in

 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 Stationery- Starmark, retailing books, stationeries and gift items. It is


one of the largest leisure retail store in India with 5 stores in Kolkata and 2 in Chennai
and has plans for further expansion. Recently launched in Kolkata, ‘Studio by
Starmark’ is a new format store, featuring an eclectic collection of lifestyle products
& stylish home accessories.
W - www.starmark.in

 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

 Infrastructure and development - Emami has large presence in real estate in


West Bengal. It has successfully executed more than 24 prestigious residential and
commercial construction projects, mainly in Kolkata. The existing projects span across
the states of West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and
Maharashtra and Sri Lanka.
W - www.emamirealty.com W - www.southcityprojects.com W - www.urbana.co.in

 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

 Healthcare - AMRI Hospitals, a multi-specialty healthcare facility in Eastern


India with specialization in Oncology, Neuro Sciences, Cardiac Sciences,
Orthopaedics, Emergency &Trauma care, Gynaecology& Childcare. It is the largest
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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

 Bio diesel - Emami Agrotech Ltd. is the largest manufacturer of Biodiesel in


Eastern India and a key exporter of biodiesel to Europe and other South East Asian
Countries.
W - www.emamiagrotech.in

Marketing Mix / Tactics

A conceptual framework, which highlights the principal decisions that the


marketing managers of Emami are taking to configure their offerings to suit
the customer’s needs. Where, marketing mix is a combination of factors
that can be controlled by a company to influence consumers to purchase its
products. And the tools which are going to be discussed ahead are
developed both for long-term strategies and short-term tactical
programmes.
McCarthy, a renowned philosopher 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
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The objective of the marketing program is to position Emami as the major


player in every product category they venture into, to be the most respected
marketer in the country, and to be recognized as a global brand, serving the
domestic as well as the international market.
Therefore, the marketing program firstly seeks to create customer the best
of all to suit customers’ needs and wants.

(1)THE PRODUCT CONCEPT


The offerings that Emami makes to a market to satisfy a want or need,
including physical goods, services, experiences, events etc. The elements
included under the product concept which a marketer can control are
brands, product variety, quality, sizes, features, services, warranties, returns
etc.
THE PRODUCT MIX – Emami has its deep roots in various businesses
and therefore it fosters to offer varied degree of products and services for
sale, and all these product the company has got to offer to customers are
called the product mix.

THE PRODUCT LINE – Emami Group of Industries carries a total number


of 12 businesses and among which it has got variety of brands and products
being offered in each, which continues to become the product line of the
company.

CHARACTERISTIC FEATURE OF THE PRODUCT MIX – Constitutes


the width, length, depth and consistency of the product mix.
Width being the total number of different product lines the company is
carrying. For Emami Group of Industries it is 12, as described earlier.
Length of the product mix is the total number of brands/items in the mix.
For Emami Ltd it varies in each sector.
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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.

The detailed information on the Products list of Emami Group of Industries


has been given a leaf ahead in the manner of diagrammatical representation.

FMCG – Emami Ltd.

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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(d) i-Cool Talc


III. ZANDU :

(a) (b)
IV. FAIR and HANDSOME : (a) Fairness Cream For Men

(b) Instant Fairness Face Wash

(c) Complete Winter Solution

V. MENTHO PLUS : Balm


VI. FAST RELIEF : Pain Relief Ointment
VII. ZANDU SONA CHANDI : Chawanprash Plus

“kijiye apne bacho ke sapne sakar”


VIII. KESARI JIVAN : Chawanprash
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IX. VASOCARE : Herbal Petroleum Jell

The light green jelly restores the

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.

XI. KESH KING : Ayurvedic Medicinal Oil


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Available in different pacakaging.


XII. DIAMOND SHINE CRÈME HAIR COLOUR :

(a)1.0 Natural Black (b) 3.0 Dark Brown

(c) 3.66 Cherry Red (d) 4.0 Natural Brown (e) 4.16 Burgandy

XIII. HE : (a) Deodrants (b) On the go Waterless Face Wash


XIV. EMAMI GOLDEN BEAUTY Talcum Powder
XV. EMAMI NATURALLY FAIR Herbal Fairness Cream

Let real pearls and active herbs transform

your skin.

Emami Agrotech Ltd.

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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diesel. The company is also involved in cultivation of crops that are


commercially viable through contract farming.
Emami Agrotech Ltd. (formerly Emami Biotech Ltd.) has its brands
'Healthy & Tasty' and 'Himani Best Choice'. It is also one of the largest
manufacturers of Biodiesel (Palm Methyl Ester) in Eastern India and a key
exporter of biodiesel to Europe and other South East Asian Countries.
Emami Agrotech is backed by sound infrastructure that includes state-of-
the-art refineries in Haldia, West Bengal and Krishnapatnam, Andhra
Pradesh with a total manufacturing capacity of 3,600 TPD. The factories
also house well-equipped R&D centres with advanced testing facilities to
ensure the products are compliant with FSSAI, EN and BIS quality
standards.
Research & Development
The Company has its R&D centre for bio-diesel at Haldia, West Bengal.
The Centre is equipped with latest infrastructure to test and ensure the
products with highest EN and BIS standards. Emami Agrotech also has a
Pilot Plant to carry out various R&D projects on different feed stocks to
produce bio-diesel as well as to conduct experiments on Bio Lubricants.
Quality Assurance
Emami Agrotech Ltd. conforms to the highest ethical standards and
stringent legal and statutory compliances. Being in the business of food
product manufacture, Emami Agrotech Ltd. lays a visible thrust on meeting
rigorous in-house specifications across its portfolio. This, the Company
believes will enhance the bond of trust with the customers.

BRANDS (Edible oils)


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I. Emami Healthy & Tasty –

'Emami Healthy & Tasty' was launched in February


2010. It is specially prepared to suit health conscious consumers who
believe in preparing their meals using the best ingredients. Emami Healthy
& Tasty edible oil range caters to discerning consumers with a promise that
healthy food need not compromise with taste.
Varieties available (depth of the product mix): Available in size packs of
1ltr pouch, 1 ltr bottle, 5 ltr can .
(a) Refined Soyabean Oil
(b) Refined Sunflower Oil
(c) Refined Vegetable Oil
(d) Kachhi Ghani Mustard Oil
(e) Refined Rice Bran Oil

II. Himani Best Choice Edible Oil:


Emami Agrotech Limited strives to deliver the best quality products to its customers..

India being a diverse nation demands variety even in cuisine. Variety in


taste and palate led to the rising need of a wider choice of edible oils that
are also affordable. Himani Best Choice, from Emami Agrotech Limited is
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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 .

III. Rasoi Vanaspati


The trusted Vanaspati brand for more than 60 yearsVitamin enriched hydrogenated vegetable oil for a
healthy family.

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.
P a g e | 22

It is available in all size packs - (Yellow) - 1 L Pouch, 500 ml Pouch, 200


ml pouch, 100 ml LUP, 50 ml LUP, 15 ltr jar, 15 Kg Jar, (Gold) - 1 L
Pouch, 500 ml Pouch, 200 ml pouch, 100 ml LUP, 50 ml LUP; (Blue) - 15
Kg Jar.

IV. Himani BakeMagic


Make a perfect bake with the right mediumOffering specialised products for a wide range of bakery needs,
from cakes to savouries.

In 2014, Emami Agrotech introduced a


range of specialised products suitable to make a variety of products - Puffs,
Kharis, Biscuits, Cookies, Cakes, Creams, etc. After the success of
BakeMagic we launched BakeMagic Gold in 2015 enabling our customers
to make better quality products. Our products are of great value and are
well accepted by bakers. All our products are manufactured using the best
quality ingredients in our state of the art plant in Krishnapatnam.

BIODIESEL

Biodiesel is a highly efficient and environment-friendly substitute of


regular diesel. The fuel is essentially a long chain mono alkyl ester of fatty
acid produced from by product and waste product of vegetable oil origin or
animal fats which is called FAME (Fatty acid methyl ester). Since biodiesel
is produced from organic sources, it is 100% renewable. It not only ensures
perfect power output but also guarantees excellent engine performance.
Additionally, the use of biodiesel leads to a decrease in harmful emissions
by a significant 80%.
Storage, Delivery and Blending Systems
P a g e | 23

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 Agrotech is diversified into commercial farming of cash crops.


Division is involved in cultivation activities for last 10 years in different
parts of the country. Emami Agrotech has also diversified into commercial
farming of other cash crops like millets, oil seeds, paddy, wheat and fruit
orchards.
The company has initiated cultivation of herbal and medicinal plants
through 100% Bio organic method under organic certification from SGS
(India).
The primary locations are Tamil Nadu, Orissa and Uttar Pradesh.
P a g e | 24

Real Estate – Emami


Infrastructure Ltd.

Emami Realty - building with trust for a better tomorrow.


The company was incorporated in 2006, as a private limited
company, to undertake real estate projects in residential,
commercial and retail sectors.
The Emami Group has successfully executed more than 24 prestigious
residential and commercial construction projects, mainly in Kolkata. Some
of their renowned constructions include: Orbit Heights (residential) and the
South City project (commercial cum residential) at Kolkata.
The existing projects span across the states of West Bengal, Uttar Pradesh,
Tamil Nadu, Andhra Pradesh and Maharashtra. The company has almost 8
million Sq. ft of area encompassing residential and commercial offerings –
which are being developed. These projects are being executed under
various Special purpose Vehicles (SPVs) and joint ventures (JVs).

The major projects are :

 Emami City – Jessore Road, Kolkata


 Emami Swan Lake – Kulkatpally, Hyderabad
 Emami Tejomaya – Navalur on OMR, Chennai (a perfect combination
of global expertise with Indian sensibilities)
 Emami Nature - Jhansi
P a g e | 25

Newsprint and Paperboard –


emami Paper Mills Ltd.
Emami Paper enjoys the position being the largest manufacturer of
newsprint in India and the only manufacturer in Eastern India. They have
successfully met the quality standards of brightness, opacity, strength,
printability and appearance being environment friendly hand in hand. They
have adopted cleaner technology processes and minimized the unsafe acts
and unsafe working conditions.
Customer Oriented Business Policy: Ensuring timely delivery day after
day to all customers.
Length and Depth of Product Mix:
White Cream
Maplitho
Move
Writing &
Printing Paper
Ledger Paper

Business of providing the


leading NewsPaper
Newsprint establishments with good
quality paper for newspaper
printing.

Emami Paper Emami


Mills Ltd. Maxofold

Emami Glamkot
Multilayer
Coated Board
Emami Ecostrong

Grey Board
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Cement – Emami Cement Ltd.

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

(c) PPC Procem Cement (d) Portland Slag Cement


(e) Ordinary Portland Cement
P a g e | 27

Retail Pharmacy – Emami Frank


Ross Ltd.
Frank Ross was established in 1906 as a Proprietorship Firm by an English
man called Mr. Frank Ross
It was converted to a Limited Company in 1919
Earlier it imported medicines of multinational companies in India & also
sold its own patent and proprietary medicines
In 1993, Frank Ross was taken over by the Emami Group.
Acquired reputed Homoeopathy companies like M. Bhattacharyya & Co.
Pvt. Ltd. and King & Company (Homoeo Chemist) Pvt. Ltd., for
manufacturing and sale of homoeopath medicines through clinics and retail
outlets. Entered into a Joint Venture in 2014 with a German Homeopathy
Company Hevert- Arzneimittel GmbH & Co. KG.
The two visionary leaders Sri R. S. Agarwal and Sri R. S. Goenka of
Emami Group laid stress on retail trade and the focus was shifted to
opening a chain of modern medicine pharmacies.
Emami Frank Ross Ltd is the largest pharmacy retail chain in Eastern India.
P a g e | 28

Contemporary Art - Emami


Chisel Art

Emami Chisel Art (ECA) is a part of the reputed Emami Group of


Companies. It idealized as a full-fledged art organization from 2008
onwards, encompassing within its infrastructure two large gallery spaces, a
library, archive, an art-shop and a publication section engaged in producing
some of the most versatile literary and visual productions. It organizes
photography, art and craft fairs where craftsmen share space with
contemporary artists under one roof.

These fairs give a unique opportunity to the mass as well as art


connoisseurs to collect artworks at reasonable prices. Besides this, ECA
also organized significant curated shows reflecting the contributions made
by eminent masters and upcoming talent.

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.

Art Works are available in the form of Mugs, Prints, Books and Diaries
and etc.
P a g e | 29

(2)PRICE – the 2nd ‘P’ of the


Marketing Mix
Price is not only a number tag but the only revenue generating
element among the 4P’s i.e., Product, Price, Place, promotion.
Being an essential element of profitability, any company has to
decide as to on which aspect are they going to focus on pricing, i.e.
whether the company is longing for covering more and more
market share or they are happy with a lesser portion of market and
want to make greater profits.
So, Emami keeping this as a key note has focused on both the
aspects –
(a) They have kept the prices of FMCG products in
accordance with the prices of competitors. Same is the
case with the 2 brands of edible oil and even for the
business of chisel art and that of cement to grow and
cover more of the market they are still continuing with
an equivalent or rather a low price range.
Price Comparisons – Edible Oil (a/c to Amazon )
Saffola Gold, 1 ltr pouch is sold at Rs.145.
On the other hand , Emami sells its Healthy and Tasty brand
of edible oil of 1 ltr pouch at a much low range. As Kachchi
Ghani Mustard Oil is sold for Rs.101, Rice Bran Oil and
P a g e | 30

Refined Sunflower Oil for Rs.90, Soyabean Oil for Rs.85.


And similar is the case for 5 ltr cans also.
Emami Cement Ltd (a/c to www.indiamart.com)
Emami PPC Cement is sold for Rs.250/bag
Slag Emami Cement for Rs.260/bag
Whereas other brands cement ranges from Rs.210 to 360 .
(b) Further, as they have their wide range of businesses in
many sectors which gives them the best of the benefit of
making out profits from one and generating larger ratios
of revenue. So on this part, Emami Infrastructure Ltd
and Emami Frank Ross Ltd has its price ranges high
and make profits.
Working this way, Emami is able to make profits from some businesses and
then use the profits to invest into other so as to cover the maximum market
share.
DISCOUNTS: Emami in its pricing strategies has an option kept for the
discounts and allowances, in order to receive volume purchases. Discount
pricing has become the modus operandi for offering both products and
services around the 365 days of year in names of seasonal discount, off-
season discount, festival discount, quantity discount and many more. But
these are to be done carefully. All most all the online sites are a day or the
other giving around 10-15 % discounts on list price, even big bazar all over
India goes providing discounts every Wednesday Bazar.

Marketing Insight On Pricing

Pricing In A Digital World (An opportunity to grow)


Traditionally, price has operated as a major determinant of buyer choice.
Companies are in a way or the other compelled to set such a price the
P a g e | 31

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.
P a g e | 32

1 ltr bottle of Rice Bran Oil is priced at Rs.95 etc.


 Price-Quality Inferences – Many consumers use the price as a quality
definition of the product. Emami on this ground seems well known as
neither of its product’s prices are too high nor too low.

(3)PLACE – the 3rd ‘P’ of the


Marketing Mix

Decision concerning place in reality comprises two related areas of


decisions. Companies usually, make their goods and services in places that
are convenient for production, but the customers prefers it to buy where the
purchase process is easy for them. So place decisions involve determining
how easy a company wants to make it for customers to gain access to its
goods and services.
Firstly, the place marketing mix involves decision which intermediaries to
use in the process of transferring the product from the manufacture to the
final customers. These transactions are usually called the “channels of
distribution”.
Secondly, place marketing mix involves deciding how physically to move
and handle the product as it is transported from manufacture to final
customer, offered as “logistics”.

Emami Sales & Distribution


Emami has an international presence which includes 60 countries in the
GCC, CIS and SAARC regions. EL has an extensive distribution network
of more than 2700 distributors in the country, about 1200 sub distributors,
60 super stockiest and 4,00,000 direct retail outlets, covering almost every
nook & corner of the country.
P a g e | 33

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.
P a g e | 34

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 .

Highlights - Automated the primary transportation vendor selection


process for the movement of products from factories and regional
warehouses.
Engaged a software and information technology services company, to
provide an integrated platform for strategic vendor sourcing and
optimising freight costs.
The primary aim will be on reducing transit times by more than 50%. In
order to make this happen, the Company has already joined hands with an
agency to ensure that trucks carrying the Company’s merchandise run for
longer hours on a daily basis. Finally, the Company plans to
operationalize a just-in-time delivery model in a full-fledged manner.

Marketing Insight On Pricing


P a g e | 35

Emami ramps up direct distribution channel

According to Madan M Pandey, President Sales CCD, Emami began to


explore options for increasing its direct distribution presence over the last
one year. It began with metros and tier-I cities and is now expanding the
direct distribution network to smaller towns and rural areas which have a
population of over 5,000 people.

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
P a g e | 36

distribution model. The impact on (our) bottom-line is also expected to be


positive in the long run,” he told Business Line during an interview.

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.

In terms of accessing smaller towns, it will cover 25,000 to 27,000 such


towns (with population of over 5,000) by FY-18. It has also made
investments - to take care of logistics and delivery issues - necessary to
reach out here.

(4) Promotion – the 4th ‘P’ of the


Marketing Mix

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.

The view of those advertisements are:-


P a g e | 37

Advertisements are shown on television channels like Star Plus, Zee


Cinema, Sony TV, colours along with sports channel for maximum
coverage.

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.

Another way in promotional activities includes discounts (in collaboration


with another company and with its product or even the same), free samples
with the advertisements. And Emami leaves no opportunities to catch hold
of as much crowd as possible. Therefore, Emami Agrotech Ltd had
undergone this method of promotion:

Emami - Rural Promotional Strategy

As a part of Corporate Social Responsibility (CSR) initiative to remove


rural poverty Emami started two schemes - Emami Mobile Traders, Emami
Small Village Shops. These schemes enable the rural youth an opportunity
to earn sustainable and regular income. To help rural people Emami has
partnered with several rural agencies like Self Help Groups (SHG), Farmers
Club, District rural development cells, gram panchayat and Regional Rural
banks.
These schemes will not only enable and help rural people but also help the
company to enhance its reach in rural areas, providing social benefits and
making products available to rural population. The scheme was initially
P a g e | 39

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.
P a g e | 40

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.
P a g e | 41

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

to international markets and is making inroads and acquisitions that will a


strategic fit to the organization and can help the company to achieve their
future goals.
The best on which Emami is focusing which has helped them a lot to grow
are:-
(a) Chasing the Long Tail – Emami has diversified so much and in a
well-planned manner that it is sure that their vision of future years
would lead them to the top FMCG company. Similarly in other
businesses also they are growing tremendously, though facing Ia
glycerine soap which could not make its presence in the market
because of the brand leaders Pears and Santoor in this segment.
Emami follows the long-tail theory based on three premises to
achieve greater heights which are: (1) Lower cost of distribution,
which is making it economically easier to sell products without
precise and accurate prediction of demand; (2) The more key
businesses you are into, the greater the likelihood of tapping into
latent demand of every sector; (3) If enough niche tastes are
aggregated, a big new market can result.

(b) Less is More – With thousands of new products introduced each


year, consumers find it even harder to navigate through store aisles.
One study found that, the average shopper spents 40 seconds or
more in the supermarket, compared to 25 seconds six or seven
years ago.As it has been seen in Big bazar and shopping malls that
when customers get a large assortment of products to select one
from it, they get totally confused as which to choose and which to
not. Although consumers may think greater product variety
increases their likelihood of finding the right product for them, the
reality is often different, as stated above. And, hence Emami goes
solving this problem of customers’ choice. By keeping limited
P a g e | 43

variants in each of their brands under the FMCG business, Emami


has a different position in customers’ viewpoint.

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
P a g e | 44

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..

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