Branded for value Marico is banking on a diversified and premium portfolio of hair oil brands PHOTO: BS FILE MAPPING THE MARKET ARICO JOURNEY TOTAL t8,76A crore MARKET SHARE
COCONUT BASED
T O O LIN G OTHERS (ln%> Source: Nielsen, CY-201A
says, “Hair fall is one need (that we are focusing on). We are prototyping mustard oil. You will see a significant amount of innovation in this category.” Marico’s strategy so far has been to reach out to a broad base of customers, through brand extensions and to keep Saugata Gupta, MD and CEO, is targeting 15 per cent growth in the value-added hair oil segment its risk low with a range of brands within one category. SHEETALAGARWAL Marico’s VAHO portfolio is risked revenue model. The Others have taken a different Mumbai, 2k May worth ?1,000 crore today. VAHO portfolio is expected to route; Bajaj Corp, for instance, However, its flagship brand, grow faster in the future. is largely dependent on Bajaj emember this popular Parachute, is still the biggest Abneesh Roy, associate direc Almond Drop bringing in 90 Bollywood song from tire revenue earner and has 57 per tor, institutional equities- per cent of its total revenues. Rlate 1950s that recom cent share of the coconut hair research, Edelweiss Securities, But Dabur and Emami have a mended a quick hair oil mas oil market while VAHO con says, “Marico’s VAHO portfo host of new launches lined up: sage as the cure for all troubles tributes 22 per cent. In terms of lio has delivered double digit Dabur Keratex Hair Oil was (‘Sarjo tera chalcraye’)? Well, volumes, Marico’s VAHO volume growth for the past launched in the therapeutic guess what, more than 50 years accounts for 29 per cent of the four quarters in a row. Their segment in the last quarter. later, its message has become a category sales, (see table). It pricing is aggressive in most Emami has the 7-in-l hair oil hit marketing ploy for oil major comprises four major brands: products and it continues to and plans to ramp up advertis Marico. In an age where hair Parachute Advansed, Nihar gain market share from com ing expenditure for the brand. care is largely associated with Naturals, Hair & Care and petitors. We believe VAHO’s Marico’s marketing strate salons and shampoos, the com Advansed Jasmine. The annu volume growth at 10-12 per gy has been different from the pany is keen to establish the al revenue from each brand is cent will be higher than the rest. It builds prototypes of its many benefits that hair oils between ?250 to ?300 crore. copra rigid pack which will products and launches them offer: Stress relief, a cool head The company is focusing on grow 5-7 per cent.” However, within a small segment of cus and a head full of hair, every a portfolio of differentiated Parachute is still the main rev tomers before going for a thing that the urban Indian brands to reach out to the entire enue earner. The company has nation-wide launch. For exam consumer wants to buy into. spectrum of consumers within managed to wean away a large ple, its Parachute Advansed Marico wants a slice of the one category. For instance, chunk of the loose coconut oil Aromatherapy oil was first test ?5,800-crore value-added hair Parachute hair oil caters to the customer base over by reduc ed in Mumbai in the last quar oil market. This is a market budget segment while the val ing the pack sizes and pricing ter. It has recently launched that is categorised differently ue added portfolio caters to a some for as low as ?10 a pack. Parachute Advansed Ayurvedic by different players. Market largely urban, premium con Marico has launched multi Oil in the southern states. Nihar researchers break it down as sumer segment seeking specif ingredient hair oils that prom Naturals Shanti Sarson Kesh perfumed hair oils and ic benefits from hair oil. ise nourishment and non- Tel, too, was prototyped in coconut-based hair oils. The According to analysts, the sticky hair care to consumers Rajasthan and will now reach perfumed hair oil (often con company is adopting a de- and is targeted at young school the rest of the country. As per sidered as value added) seg and college going consumers. Nielsen data, in FY-15, Marico’s ment is further broken into VOLUME MARKET SHARE Saugata Gupta, the MD and VAHO portfolio’s volume mar light hair oils, cooling hair oils, CEO, says, “We are extremely ket share increased 88 basis amla-based hair oils and others Emami confident of delivering 15-20 points to 29 per cent and value by competing players such as Navratna per cent growth in our value market share expanded 210 Bajaj Corp, Dabur, Emami, (Cooling oil) | added hair oils segment. All basis points to 22 per cent. depending on the brands they other players in this segment Marico is looking at cornering have. While Dabur is strong in Bajaj Almond operate in only one space and 30 per cent of the value and 40 Drops 60 arnla hair oil with its Dabur (Light hair oil) one ingredient. While we oper per cent of the volumes over Arnla and Bajaj Corp leads in ate, not on an ingredient base, the next three years. light hair oils with its Almond Marico but on a consumer needs For that it would need to Drops, Emami’s Navratna Cool (Value added hair oil) 29* base.” Marico is also targeting invest heavily in market (ln%) hair oil is the leader in the rin °/J older customers with products building as well as brand cooling segment. Source: Market estimates,L FY15; *Nielsen, FY15 that tackle hair fall. As Gupta building exercises.