Marico Limited SWOT & PESTLE

  • Report

  • ID: 534460
  • 20 Pages
  • July 2022
  • Region: Asia
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About Marico Limited

Marico Limited, started by Harsh Mariwala in 1990 targeting the coconut oil and refined edible oils market, is now one of India’s leading consumer products companies which primarily operates in the nourishment and beauty space. It is headquartered in Mumbai, India. Marico has a presence in over 25 Asian and African countries. It owns brands such as Parachute, Saffola, Hair & Care, Parachute Advanced, Nihar Naturals, and Mediker in the hair care, skin care, edible oils, health foods, male grooming, and fabric care categories. Marico was named the Pitch Top 50 Brands 2018 Globetrotters winner. Saffolalife received four EFFIE India 2019 awards for its World Heart Day campaign. Marico won two awards at Goafest 2019: one for Saffolalife and one for Nihar Shanti Badam Amla. It also received the Innovation for India Award 2020. Marico Limited, an FMCG major, announced a strategic investment in the healthy breakfast and snacks brand True Elements on May 2022, with a 54% stake in the company acquired through primary infusion and secondary buy-outs.

The USP of Marico is that it is one of India’s leading FMCG company. Marico’s mission statement reads, “The Marico Innovation Foundation's mission is to provide the nation with first: a belief that Innovation is possible and is the way to leapfrog India into the center stage of global business leadership, and second: a framework to leverage innovation for quantum growth.”

Business Sector

Fast Moving Consumer Goods (FMCG)

Operating Geography

India, Asia, Global

Revenue

INR 8,048 crores - FY ending 31st March 2021

INR 7,315 crores - FY ending 31st March 2020

SWOT

SWOT Matrix for Marico

Strength

Weakness

  1. Massive distribution network equipped with latest technologies
  2. Strong presence in emerging markets in Asia and Africa
  3. Consistently strong financial performance
  4. Advanced quality check systems
  5. Strong R&D facilities focusing on innovation
  6. Responsible and successful marketing campaigns
  1. Limited global presence

Opportunity

Threat

  1. Increased demand in the economy to drive consumption
  2. Promising growth in rural markets
  3. Investments in health, fitness and next-gen consumer businesses
  1. Disruption in the FMCG sector
  2. Increasing political Risk in African markets
  3. Increase in commodity prices
  4. Foreign currency exposure risk

Detailed SWOT Analysis of Marico

The detailed SWOT analysis for Marico Limited is presented below:

Strength

  1. Massive distribution network equipped with latest technologies: Marico has a strong distribution network with a coverage of over 126 million households through 5.3 million outlets as of 2022. The company’s Go-To-Market strategy has focused on improving the width and depth of its distribution by enhancing and strengthening its supply chain. The company is employing various distribution expansion measures to tap into rural markets. Marico’s RETINA (Retailer Intelligence & Analytics), a recommendation engine, started in 2015 has been deployed across 13 cities and helps Distributor Sales Representative focus on the best Stock Keeping Units (SKU). Marico has also implemented automated order management systems using Order Management, Midas Pro and General Trade Personal Device Assistants (PDAs) in the local language in India and Bangladesh markets.
  2. Strong presence in Asia and Africa: Marico operates across 25+ countries spanning North, South and Sub-Saharan Africa, Middle East, India, Bangladesh and South East Asia with a whopping 39% employees of non-Indian nationalities. With a nominal GDP close to $3 trillion, India has the world's fastest-growing trillion-dollar economy and the fifth-largest overall. Despite COVID-19, Vietnam's economy has remained resilient, growing by 2.9 percent in calendar year 2020—one of the world's fastest rates. This strong growth has contributed to increase in revenue from these regions. Marico has also expanded its presence in Indo-China region as well as new export markets of South Asia.

The remaining points in this section are available in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

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Threat

This section is available only in the 'Complete Report' on purchase.

PESTLE

PESTLE Matrix for Marico

Political

Economic

  1. Strong government at the centre in India ensures political stability
  2. Expansion potential in countries with good political relations and high expatriate population
  1. Innovative products to support the fight against Covid-19

Social

Technological

  1. Increase in disposable income and discretionary spending by the Indian middle-class segment
  2. Inclination towards healthy lifestyle products
  1. Focus on digital consumer and employee engagement

Legal

ENVIRONMENTAL

  1. Legal battles for trademark infringements and advertisements
  1. Environmental protection and sustainability initiatives
  2. Enhancing recyclability of packaging

Detailed PESTLE Analysis of Marico

The detailed PESTLE analysis for Marico Limited is presented below:

POLITICAL

  1. Strong government at the center in India ensures political stability: India currently enjoys political stability with strong National Democratic Alliance (NDA) government in the center with a complete majority. This has ensured smooth passage of economic policies and reforms which were long due. The government is also pro-industry and has favored initiatives such as ‘Make in India’ which bodes well for companies like Marico. Political stability ensures business certainty and the current government is set to retain power in the general elections scheduled in 2019, though with reduced majority. However, an adverse outcome in the general elections for the present government may result in instability which may result in hindered economic growth.

The remaining points in this section are available in the 'Complete Report' on purchase.

ECONOMIC

This section is available only in the 'Complete Report' on purchase.

SOCIAL

This section is available only in the 'Complete Report' on purchase.

TECHNOLOGICAL

This section is available only in the 'Complete Report' on purchase.

LEGAL

This section is available only in the 'Complete Report' on purchase.

ENVIRONMENTAL

This section is available only in the 'Complete Report' on purchase.

More Info

Major Competitors

  • Dabur
  • HUL
  • P&G
  • Godrej Consumer
  • Colgate
  • Emami

Major Brands

  • Parachute,
  • Saffola,
  • Hair&Care,
  • Nihar,
  • Mediker,
  • Revive,
  • Manjal,
  • Livon,
  • Set Wet,
  • Zatak,
  • Fiancee,
  • HairCode,
  • Eclipse,
  • X-Men,
  • Hercules,
  • Caivil,
  • Code 10,
  • Black Chic,
  • Kaya

Table of Contents

  • Company Overview
    • 1.1 About the Company
    • 1.2 Business Sector
    • 1.3 Operating Geography
    • 1.4 Revenue
  • SWOT Analysis
    • 2.1 SWOT Table/ SWOT Matrix
    • 2.2 SWOT Overview
    • 2.3 Detailed SWOT Analysis
    • 2.4 Strength, Weakness, Opportunity and Threat
  • PESTLE Analysis
    • 3.1 PESTLE Table/ PESTLE Matrix
    • 3.2 PESTLE Overview
    • 3.3 Detailed PESTLE Analysis
    • 3.4 Political, Economic, Social, Technological, Legal and Environmental
  • Appendix
    • 4.1 Major Competitors
    • 4.2 Business Sectors / Diversification
    • 4.3 References used to prepare this reports
  • Conclusion
    • 5.1 Closing thoughts
    • 5.2 Methodology used to prepare this report
    • 5.3 Copyrights and Disclaimer

    References and Copyright

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