ACADMIUM WHITEBOOK 2020-21

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PREFACE:
With great delight, Team Acadmium presents "Placements Whitebook for Marico” for the
year 2020-21. The idea is to help the students sitting for final placements to have an aerial
perspective of the company and the sector they are interviewing for. It consists of essential
information about Marico.

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 ABOUT THE COMPANY
OVERVIEW:
Marico Limited is one of India's leading consumer products companies operating in the
beauty and wellness space. Empowered with freedom and opportunity, we work to make a
difference to the lives of all our stakeholders - members, associates, consumers, investors, and
the society at large. Currently present in 25 countries across emerging markets of Asia and
Africa, Marico has nurtured multiple brands in the categories of hair care, skincare, edible
oils, health foods, male grooming, and fabric care. Marico's India business markets household
brands such as Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals,
Livon, Set Wet, Mediker and Revive among others that add value to the life of 1 in every 3
Indians. The International business offers unique brands such as Parachute, HairCode,
Fiancée, Civil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men, and Thuan Phat that
are localized to fulfill the lifestyle needs of our international consumers. Charting an annual
turnover of INR 63 billion (Financial Year 2017 - 2018) across our portfolio, Marico's
sustainable growth story rests on an empowering work culture that encourages our members
to take complete ownership and make a difference to the entire business ecosystem.

Type: Public Company

Industry: Consumer Goods

Founded: Mumbai, India

Founder: Harsh Mariwala, Chairman

Key People: Saugata Gupta (MD &CEO)

Products: Edible Oil, Hair Nourishment,

Skin Care, Healthy Foods, Male Grooming
Products.

Turnover: 1,146 Crs (FY 2020)

Profit: 1,085 Crs (FY 2020)

HARSH MARIWALA (CHAIRMAN)

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4
Values:
Our values guide our actions and how we behave in our everyday business. They have
enabled us to create a unique culture at Marico. Our values are the DNA of our organization,
immersed in every member across hierarchies and geographies.

Excellence
Continuous improvement of performance standards and capability building for sustained long
term success.

Transparency & Openness

Allowing diversity of opinion by listening without bias, giving & receiving critique, with
mutual respect and trust for the other.

Global Outlook
Sensitivity and adaptability to cultural diversity and learning from different cultures.

Bias for Action

Preference for quick thoughtful action as opposed to delayed action through analysis.

Opportunity Seeking
Identifying early opportunity signals in the environment to generate growth options.

Innovation
Experimentation and calculated risk-taking to increase the success probability of
radical/pioneering ideas to get quantum results.

Boundarylessness
Seeking support & influencing others beyond the function & organization to achieve a better
outcome/decision without diluting one's accountability.

Consumer-Centric
Keeping the consumer as the focus and a partner in creating and delivering solutions.

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Brands:

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PRODUCTS OFFERED:

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 COMPETITORS:

Company Products Brands Financials

Hindustan Soaps, detergents, Lux, Lifebuoy, Surf Excel, Rin, Revenue

Unilever shampoos, skin Wheel, Fair & Lovely, Pond’s, Rs. 39518 crores
care, toothpaste, Vaseline, Lakmé, Dove, Clinic
deodorants, Plus, Sunsilk, Pepsodent, Profit
cosmetics, tea, Closeup, Axe, Brooke Bond, Bru, Rs. 6935 crores
coffee, packaged Knorr, Kissan, Kwality Wall’s
foods, ice cream, and Pureit
and water purifiers
Procter & Baby care, fabric Pampers, Tide, Ariel, Downey, Revenue
Gamble care, feminine care, Head & Shoulders. Pantene, $70.95B
hair care, home Gillette, Oral-B, Olay, and
care, grooming SafeGuard Net Income
products. $12.764B

Dabur India Hair Care, Oral Chyawanprash, Vatika, Odonil, Revenue

Care, Health Care, Odomas, Hajmola, Dabur Rs 7,806.4 crores
Skin Care, Home Meswak, Real fruit juices, Fem
Care, and Foods. Profit
Rs. 1170.35 crores

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TAGLINE - “MAKE A DIFFERENCE”

1) SOCIETY – by applying innovation as a key

tool, the Marico Innovation Foundation enables
social organizations to significantly scale up
operations, increasing their social impact.

2) MEMBERS – At Marico, we encourage our

members to lead businesses instead of simply
working for them by creating roles that foster
responsibility, independent decision making, and
eventually their growth in the business.

3) INVESTORS – By continuously searching

for growth opportunities and investing in
portfolios of the future, we deliver sustainable
growth for our investors. In addition, our strict
adherence to our high standards of corporate
governance and open and transparent relations
come together to form lasting relationships.

4) ASSOCIATES – By maximizing our

associates’ potential across the supply chain-
from farmers, suppliers, distributors to retailers
we create win-win partnerships that increase the
growth and sustainability of our business.

5) CONSUMER – Whether it’s giving our

consumers the confidence to present their best to
the world, empowering them to look well-
groomed, or helping them lead a healthy life, our
brands make a big difference.

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 SWOT ANALYSIS:

• Excellent distribution network and product availability.

• Variety in product portfolio (including hair oil, edible oil, skincare, haircare, etc.)
•Popular brands, good brand visibility, and excellent advertising have led to
brand loyalty.
• Experience management and good R and D.
• Wide reach (Marico is present in 25 countries across Asia and Africa)
STRENGTHS
• Marico reaches about 2.5 million outlets and around 130 million customers.

• Limited market share due to strong competition from other

FMCG's
• Marico products have stiff competition from both
WEAKNESSES domestic and international brands.

• Tap rural markets and increase penetration in urban areas.

• Powerful mergers and acquisitions to strengthen the brand
• GST implementation benefits.
OPPORTUNITIES

• Intense and increasing competition from other powerful FMCG's

• FDI in retail thereby allowing entry of other international brands
• Reduction in demand for non-essential due to the current
pandemic.
THREATS

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 PESTEL ANALYSIS:

The strong government in the center of India

ensures political stability.
POLITICAL FACTORS Political differences with China might be a scope
of growth for Marico because more stress has
been added to becoming self-sufficient in times
of COVID.

Implementation of GST in India to drive

growth for the organized sector.
ECONOMIC FACTORS The falling per capita income and GDP of
India can be a cause of concern for Marico due
to a reduction in demand.

The decrease in discretionary income and

standard of living for the common middle-class
SOCIAL FACTORS man due to the current pandemic.

Focus on digital consumer and employee

TECHNOLOGICAL engagement.
FACTORS

Environmental protection and sustainability

ENVIRONMENTAL initiatives.
FACTORS

The legal battle for trademark infringements and

advertisements.
LEGAL FACTORS New laws regarding “aatmanirbharta” and
privatization of PSU’s can be both a boon and a
curse for Marico in terms of scope and
competition.

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PERFORMANCE AT A GLANCE:

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Quarterly Update: Q1 FY21 (Post Pandemic)
This update seeks to provide an overall summary of the operating performance and demand
trends witnessed in the quarter ended 30th June 2020. This will be followed by a detailed
Information Update once the Board approves the financial results for Q1 FY21.

The year started on an uncharacteristic note as the country remained under a state of
lockdown all through the quarter amidst the ongoing COVID pandemic. The Company
witnessed significant disruptions during the first fortnight of April, but since then has been
able to steadily scale up operations to near-normal levels in June. In adherence to
Government Orders/Advisories, the Edible Oils and Foods businesses resumed operations in
early April, however, the Hair Oils & Personal Care businesses could only commence in late
April/early May. The distribution network also improved progressively during the quarter
with the Government gradually easing the movement of food and grocery items of daily use.
During the quarter, General Trade and E-commerce channels gained over Modern Trade due
to heightened social distancing concerns. Moreover, the CSD business for the quarter was
also reduced to half. To supplement consumer reach in these circumstances, the Company
adopted a variety of new-age delivery models which included tying up with food-service
aggregators and other logistics partners, direct billing to retailers, launching a direct to
consumer e-commerce portal ([Link] tele-caller facility for direct reach to
the top retail outlets and introducing a retailer and consumer-ordering app, among others.

While the India business clocked sales above the annual average monthly run rate of FY20
during the quarter, the reported volume decline on a year-on-year basis will be in the low
teens, given the very significant skew of revenues (c.31% of annual sales) and high base in
the first quarter of the last year. With the Q1 top-line translating into a single-digit growth
over the annual run rate of FY20, the Company expects to bounce back to posting volume
and value growth during the rest of the year. Parachute Coconut Oil delivered sales at higher
than the annual average monthly run rate of FY20, despite a very slow start in April. The
Value Added Hair Oils had a significantly low throughput during the quarter, sharply
impacted by the much-delayed resumption of billing in April. The franchise saw visibly
healthier trends in May and June, especially at the bottom of the pyramid segment, ending up
at more than 90% of the annual average run rate of FY20 during the quarter. However, there
would be a pronounced effect on the reported year-on-year volume growth of both these
portfolios due to the very high skew in the first quarter revenues of the last year. In contrast,
Saffola Edible Oils posted healthy volume growth, partly attributable to increased in-home
cooking and consumption. Similarly, the Foods business also continued its good run, backed
by its twin proposition of health and taste. The Premium Personal Care categories (Serums,
Skin Care, and Male Grooming), owing to their discretionary nature, remained under
significant stress.

In response to the heightened consumer need for hygiene, the Company had launched
Mediker Hand Sanitizers and Veggie Clean in April. This was followed by the introduction of
indoor and outdoor surface disinfectants under the aegis of new brands, House Protect and
Travel Protect respectively.

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The Company also expanded its play within Healthy Foods with the launch of Saffola Honey,
addressing the need for pure honey in India that meets global quality standards for export,
which is also free from added sugar and any impurities. Every batch of Saffola Honey
undergoes the strict Nuclear Magnetic Resonance (NMR) test, which is one of the most
advanced tests in the world, developed in Germany, to check for purity and origin of food
items.

While overall revenues have declined in double digits, a combination of benign input costs,
aggressive cost control, and rationalization of A&P spends in few discretionary portfolios on
a lower topline, will lead to expansion of operating margins compared to the corresponding
quarter last year. However, for the balance of FY21, the Company expects operating margins
to hold to a minimum of the previous year's levels.

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 JOB DESCRIPTION

Territory Sales Executive

“Territory Sales Managers oversee the daily sales operations of Sales Representatives that are
assigned to a particular geographical area. They train sales employees, develop effective sales
strategies, and ensure that sales quotas for an assigned territory are met.”

The Territory Sales Manager’s responsibilities include recruiting and dismissing Sales
Representatives as needed, identifying unmet customer needs, and regularly submitting sales
reports to the Sales Director. You should also be able to keep abreast of the latest industry
trends and determine the potential impact it may have on company products and services.

What is merchandising?

A retailer uses various techniques to boost the sales of products. Out of those tactics,
merchandising is also an effective technique to boost the sales of products in-store.
Merchandising consists of various activities such as special offers, display techniques, on-spot
demonstration, free samples, shelf-talkers, and other point-of-sale methods.
It can be defined as planning of displaying the right merchandise at the right place, at the right
time, in the right quantity, and at the right price to attract more and more customers.
The merchandising techniques are highly influenced by the season, culture, and climate. A
merchandising technique in the summer season can’t be the same as a merchandising
technique in the winter season.
Merchandising can be of different types, and it depends on the choice of retailer, space
available, and the type of merchandise to be sold to select a suitable merchandising type.

Following are the different types of Merchandising

Product Merchandising:
This consists of all promotional activities related to boosting the sales of a product. The
definition of product merchandising will remain the same, whether you are selling something
online or in-store.
in-store promotional activities such as product display and online activities such as website
design are examples of product merchandising.

Visual Merchandising:
A visual merchandising can be defined as all activities used to display the product to highlight
its features. The activities used in visual merchandising can be created by making the use of
space available, lighting in the store, and using different designing.
This can be used for selling products both online as well as in physical stores. In digital
space, vibrant colors, web design, etc. used for visual merchandising.

Retail Merchandising:
Retail merchandising strictly refers to selling merchandise in a physical store or brick and
mortar store. Retailing merchandising includes all marketing and promotional activities which
are somehow used to sell products to consumers in brick and mortar store.
However, in digital space, retail merchandising is referred to as digital merchandising. 16
Omnichannel merchandising:
Omnichannel merchandising or omnichannel retailing refers to creating unified customers'
experience at all the platforms where a retailer sells his products and can reach his customers.

Digital merchandising:
Digital merchandising is a term used at the place of retail merchandising for selling products
at digital platforms. This includes all types of activities used to promote products on the
internet. It is also referred to as online merchandising or e-commerce.
It includes all activities like website promotions, digital product display, email marketing,
social media marketing, digital marketing, etc.

What is Marketing KPIs?

“Marketing Key Performance Indicators, or KPIs, are the metrics that determine whether
or not a marketing strategy is helping you achieve your business goals.”
Although there are thousands of numbers related to various campaigns you could monitor,
KPIs are the ones deemed most important.

The 10 Most Important Marketing KPIs

1. Sales Revenue

What amount of income has your inbound advertising effort brought your organization?

Understanding your business income is imperative to know how viable your inbound
promoting effort is. No organization needs to burn through cash on something that isn't creating
cash.

No doubt you would move that cash to other advertising exercises. To decide your business
income from inbound promoting you should initially have an intensive comprehension of
what you mean by inbound and outbound showcasing.
You can calculate your sales revenue from inbound marketing by utilizing the following
calculation.

(Total sales for the year) - (Total revenue from customers acquired through
inbound marketing)

2. Cost Per Lead

In addition to the fact that you want to compute your client procurement costs for inbound
promoting, yet outbound advertising also. What amount is it costing you to gain a client
through inbound versus outbound marketing?

Figuring your client procurement expenses requires the mix of your promoting computerization
and CRM stages just as representing every single important expense related to ERP
integration.

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 Calculating CAC for inbound marketing, relevant costs include:
[Link] (creative and technical)
[Link] and software
[Link] overhead

Calculating CAC for outbound marketing, relevant costs include:

[Link]
[Link] distribution
[Link]
[Link] overhead

Once calculating the costs associated with your inbound and outbound marketing campaigns,
you can directly account for new sales, as well as allocate particular budgets for each campaign.
If your company is utilizing mostly inbound marketing, you can break down that component
further by campaign types then assess how successful and profitable each activity is. When you
know that, you can start implementing activities to improve over time.

3. Customer Lifetime Value

With inbound marketing, there is no better method to quantify client esteem than connect with
your present clients. Not exclusively can doing this assist you with staying in touch with leads,
however, it can likewise help in reducing churn, keep your clients upbeat, and extend your
clients' lifetime esteem. You can calculate the lifetime value of your customers by using the
following calculation:
(Average sale per customer) x (Average number of times a customer buys per
year) x (Average retention time in months or years for a typical customer)

A great way to increase the lifetime value of your customers is by developing lead nurturing
campaigns that reach out to existing customers.
Providing you and your sales team the opportunity to inform existing customers about new
services, products, and resources.

4. Inbound Marketing ROI

Every company wants to see its return on investment!
Figuring your inbound marketing quantifiable profit is tremendous to help survey your month
to month and yearly execution. Similarly, significant is the capacity to begin arranging
methodologies and spending plans for the next year or even months.
You would prefer not to keep including cash or expanding your financial limit for an
advertising movement that is costing your organization cash. Thus, regardless of what
advertising movement your organization is utilizing, your arrival on the venture will decide
the future with that action.
Use the formula below to calculate your inbound marketing ROI:
(Sales Growth – Marketing Investment) / Marketing Investment = ROI

5. Traffic-to-Lead Ratio (New Contact Rate)

Understanding your site traffic, particularly knowing where it is coming from, regardless of
whether it's natural, immediate, web-based life or referrals is critical.
On the off chance that your traffic is enduring or expanding, however, your traffic-to-lead
proportion is low or diminishing, that is a surefire sign that something is missing on-page.
In the soul of transformation rate advancement, track this number to assist you with deciding
whether and when an adjustment in your site's content, structure, structure, and so forth might
be required.
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6. Lead-to-Customer Ratio
After all of your marketing efforts, it's important to know how many leads your sales team
can close. You will want to calculate both your sales qualified lead conversion rate and sales
accepted lead conversion rate.
What's the difference between the two?
Sales Qualified Leads are leads considered to be sales-ready based on their lead score or
specific activities/triggers they completed. Most companies would consider a lead who filled
out a form, such as "contact a rep" a leader who is ready to buy your service or product. For
example, a waste management company with a lead who filled out the form "rent a dumpster,"
would be considered a sales qualified lead.
Sales Accepted Leads are simply leading your sales team considers opportunities, and have
either contacted the lead directly or a scheduled call.

7. Landing Page Conversion Rates

So, your landing page is up; it's beautiful, it follows all the best practices, but is it converting?
A landing page that doesn't generate leads is useless, no matter how much traffic it gets or how
beautifully designed it is, so monitor your conversion rate.
Like your traffic to lead ratio, if your landing page is getting a lot of traffic, but has a low
conversion rate, then it is a red flag that you need to change something on the page.
For example, try A/B testing some of the changes below to see which delivers the highest
conversion rate:
1. Change your CTA color
2. Convey more value in your CTA text
[Link] your written content more persuasive
[Link] your form
[Link] social proof (i.e. reviews, social counts, awards, etc.)

8. Organic Traffic
The goal of any business using inbound marketing is to have most of their traffic come from
organic search.
High organic traffic means that people are finding your website on their own, minimizing not
only your effort for your cost of attracting them to your site.
It should come as no surprise that organic traffic is directly correlated to your SEO strategy, so
make sure to monitor this number (along with your keywords) and refine your SEO strategy
accordingly.

9. Social Media Traffic (and Conversion Rates)

Many clients are often wary about the importance of social media in their inbound marketing,
but over the years it has proven invaluable to every campaign's success.
Metrics you can utilize to show the importance and impact of social media on your marketing
efforts include:
[Link] of lead conversions generated via each social media channel
[Link] of customer conversions generated through the social media
channel
[Link] of traffic associated with social media channels
With social media sites like Twitter, Facebook, LinkedIn, Google+, Pinterest, and Instagram
you might not have all the time in the world to effectively utilize every platform, but breaking
them down by the number of leads, customers, and percentage of traffic coming from each will
help you determine where to focus your efforts.
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 10. Mobile Traffic, Leads, and Conversion Rates
Is your website effectively optimized for mobile? With so many people browsing the web
exclusively from their smartphones and devices and Google showing a preference for sites
optimized for mobile, you need to know how your visitors are using it.
1. Pay close attention to:
2. Mobile traffic
3. Number of lead conversions from mobile devices
[Link] rates from mobile devices
[Link] rates from mobile-optimized landing pages
6. Popular mobile devices
Understanding how and what your visitors are doing on your website on mobile will help you
improve the experience, and optimize it to increase mobile conversions.

What is the distribution?

Distribution in its general meaning is the physical movement of stock from the
place of manufacture to the retailer and then in consumer possession.
Distribution is divided into two phases:
 Distribution on the client store;
 Distribution as a trade marketing element.

Distribution is vital to the success of FMCG companies. Ensuring that they deliver to
customers their brands in the correct amount, the place and right time, in good
condition and at a competitive price, is still a challenge for the trade marketing and
distribution companies department. Also, the distribution is important for business
partners, including independent distributors, the relationship with them based on the
principle of mutual profit.

FMCG companies have three objectives in terms of distribution:

 Brands’ availability – final consumers can buy the products only if those are on
the shelves. The right brands should be in the right outlet at the right time.
 Product quality – companies must ensure that consumers have the best products
in terms of freshness, appearance package, and quality.
 Effective distribution of price viewpoint - making the availability and quality of
products in the most effective, has an important role in efficient distribution.

A better distribution helps reduce costs, bad investments in too many stocks of
products, increase profits, and improves communication for each person involved in
the distribution.

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 1. Direct Distribution: or direct delivery to outlets – in this case, the companies
control goods distribution directly to retailers or through exclusive distributors.

FMCG COMPANY

Exclusive distributor

Retailers

The direct distribution offers the following mutual benefits:

 A simple and direct distribution line;
 Constant bilateral communication to and from retailers.
Being simple, it reduces the number of goods that pass through several links and
maintains product appearance. Making direct distribution to retailers allow to all those
in the supply chain to interact directly.

2. Indirect distribution – it involves an intermediary that delivers the products

to the retailer. FMCG companies don't control all aspects of brand distribution.
Indirect distribution occurs when it exists the control of the entire supply
chain; the control passes to Cash & Carry wholesaler or retailer so that
products are available at the retailer.

FMCG COMPANY

Distributors

Wholesaler
Cash & Carry

Retailers

In certain markets, these intermediaries are more specialized. They are focusing their
efforts on one particular type of trade channel. A trading channel groups its clients
that have similar characteristics, such as:
 The outlet type;
 The range of products;
 The pricing policy;
 The Consumers type;
 The objectives and strategies.
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What is MIDAS?

Midas Platform is an open-source toolkit that enables the rapid creation of tailored, web-
enabled data storage and provides a cohesive system for data management, visualization, and
processing. At its core, the Midas Platform is implemented as a PHP modular framework
with a backend database (MySQL, PostgreSQL, and SQLite). While the Midas Platform
system can be installed and deployed without any customization, the framework has been
designed with customization in mind. We recognize that building one system to fit all is not
optimal, thus we have extended the framework to support plugins and layouts.

Midas Platform employs Kitware's Quality Software Process (CTest and CDash) to test the
system and ensure a high-quality, well-tested, robust application. While CTest and CDash have
been written to support C/C++ source code development, we have extended the framework to
provide continuous integration for PHP/HTML.

Midas Platform is adaptable and has a broad scope, with the flexibility to address a variety of
needs for scientific data management. Through integration with a range of other open-source
toolkits, applications, or internal proprietary workflows, the Midas Platform offers a solid
foundation to meet the needs of data-centric computing.

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Competitive Benchmarking Procedure:

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How do sales take place via digital marketing?

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Frequently Asked Questions:
Q1 - When was Marico formed and who is the Promoter?
A - Marico was incorporated in the year 1988 and listed on the NSE and BSE in the year
1996. The Chairman of the Board is Mr. Harsh Mariwala and a majority of the shareholding
is held by the Mariwala family.

Marico is a professionally managed organization.

Q2 - What is Marico's Business?

A - Marico operates in the Beauty and Wellness segment in the Hair Care, Skincare,
Healthcare, and Male Grooming categories across India and outside India. More than 90% of
the Group's turnover comes from categories in which Marico enjoys the No.1 or No.2
position.

Q3 - What is the Marico Group Structure? And in which countries does Marico have
subsidiaries?

A-

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Q -How is Marico contributing to sustainability?
A - Marico's value system in 3 simple words is "MAKE A DIFFERENCE". Please find
details on Marico Sustainability initiatives, including the Annual Sustainability. Refer to page
9.

Q -What is the product reach of Marico?

A - Marico today touches the lives of 1 out of every 3 Indians. Marico sells over 1.5 billion
packs every year through 51 lakh retail outlets serviced by its nationwide distribution
network comprising 4 Regional Offices, 25 carrying & forwarding agents (CFAs), and about
7000 distributors and stockists. Marico's distribution network covers almost every Indian
town with a population of over 5,000.

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News & Recent Activity Timeline:
[Link]

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TEAM ACADMIUM

WISHES YOU

ALL THE BEST!

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