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SMU553

MARICO BANGLADESH: MEETING THE VALUE-ADDED HAIR


OIL (VAHO) CHALLENGE
It was November 2012, and Aditya Shome, Executive Director of Marico Bangladesh Limited
(MBL), a leading fast-moving consumer goods (FMCG) company, was devising the firm’s future
strategy at his office in Dhaka, Bangladesh. He had analysed numerous consumer reports from
market researchers to aid his decision making. Although Parachute, the company’s flagship brand of
coconut oil, was now the market leader, Shome did not want the firm to rest on its laurels.

The blue plastic Parachute bottle had become a household icon. Parachute had been named the top
overall Bangladeshi brand five months earlier at a glittering award ceremony for the Bangladesh
Brand Forum, held at the five-star Pan-Pacific Sonargaon Hotel in Dhaka. The prestigious hotel
evoked memories of a time when Sonargaon was the capital of an ancient Bengal kingdom, presently
divided into the Indian state of West Bengal and modern-day Bangladesh. After independence,
Bangladesh had struggled economically due to poverty and famine. However, the flood plains that
caused adversity were also a source of nutrient rich soil. Bangladesh gradually developed its
economy, with the rural areas focusing on agriculture to feed the country’s growing population and
the urban regions building factories to manufacture garments. As Bangladesh achieved emerging
market status, the FMCG sector also grew rapidly due to increased consumer spending.

MBL was established in 1999 by its parent company, Marico Industries (India), to handle the market
intricacies in Bangladesh. Early on, coconut oil was considered a commodity product and sold
generically from large vats to consumers who filled up their own containers. The multipurpose
commodity was an integral lifestyle product for consumers and widely used on the Indian
subcontinent in food preparation, skin care and hair care. MBL had capitalised on the popularity of
coconut oil by initially partnering with a Bangladeshi trading house in 1996 to distribute its Parachute
brand before establishing a full-scale local operation. It soon managed to build brand awareness and
convert customers accustomed to buying loose oil.

As the economy progressed, MBL had to evolve with the changing demographics. Consumers were
increasingly willing to spend on beauty and wellness products and services. They believed that hair
was an important part of beauty, and coconut oil was essential to proper hair care. MBL began to
retail Parachute in a variety of sizes and also launched an entire product line of Value- Added Hair
Oils (VAHO). The existing competition, from loose coconut oil and a major national brand Jui,
intensified, as other brands started to make a dent in the Bangladeshi market.

Shome continued to study consumer behaviour in the coconut and hair oil markets in order to promote
the MBL range of VAHO, while protecting the dominant position of the flagship Parachute brand.
While MBL secured 69% of the coconut oil market, it only managed to capture 18% of the VAHO

Originally titled Marico Bangladesh: Parachute’s Journey to #1, this case was written by Seshan Ramaswami, S N Venkat
and CW Chan at the Singapore Management University. The research assistance of Ranya Arora and Razeen Mujarrab is
gratefully acknowledged by the authors. The case was prepared solely to provide material for class discussion. The authors
do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality.

Copyright © 2019, Singapore Management University Version: 2019-09-22


SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

market. Still, Parachute’s previously insignificant brand stature had risen to become the best out of
5,000 brands across 28 product categories1 within a short time span. While the brand’s tremendous
elevation was cause for celebration, he knew he had to balance the challenge of converting loose oil
consumers while fending off competitors.

Bangladesh

Located in the tropical region of South Asia, Bangladesh was almost completely surrounded by India,
apart from a shared border with Myanmar in the South East and access to the Bay of Bengal in the
South. British rule in the region had ended with the partition of colonial India in 1947. Religious and
political differences among Indian leaders led to the carving out of the Muslim state of Pakistan,
comprising the predominately Muslim areas in the states of Punjab (which became West Pakistan)
and Bengal (East Pakistan), from the Hindu majority India. The fallout of partition made many people
relocate and instigated religious riots that caused thousands of deaths. Discord between East and
West Pakistan began to surface as East Pakistan felt subjugated politically, linguistically and
administratively by West Pakistan, which was separated by thousands of kilometres of Indian
territory. East Pakistan subsequently seceded from Pakistan after the 1971 war of independence, and
became Bangladesh.

Densely populated and largely rural, Bangladesh faced problems related to poverty, natural disasters
and low literacy rates. Its economy was dominated by agriculture, garment production and
remittances from the Bangladeshi diaspora, but continued to be dependent on foreign aid to meet
basic needs. Developmental efforts started to pay off from the 1990s as Bangladesh experienced 5%
GDP growth annually. 2 Substantial improvements, especially for women, in healthcare and
education indicators showed that its social policies were succeeding as well. Women were further
empowered by family planning efforts, a boom in the textile industry and the availability of
microcredit.3

In 2010, Bangladesh’s majority Muslim population reached 164 million,4 and mainly spoke Bengali,
followed by Urdu, Hindi and English. At the same time, the country underwent a demographic shift
as the median age of its population fell below 30. Urban residents largely congregated in Dhaka,
Chittagong and Khulna, the three major divisions in Bangladesh.5

Investments in physical infrastructure helped create a well-developed and efficient supply chain, and
made the rural sector, roughly two-thirds of the country, more accessible to firms. Higher disposable
incomes, greater availability of credit and enhanced media exposure led to increased consumerism.
The FMCG sector was one of the largest sectors of the economy because it could subcontract
manufacturing activities, and it did not have to contend with high capital requirements or complex
manufacturing processes. Sales in the sector was robust as consumers showed a willingness to spend
on effective solutions, quality services and an enhanced customer experience.

Coconut Oil

Naturally occurring oils, often of plant origin, were commonly used in Bangladesh and many other

1
The next four brands in the rankings were Nokia, Lux, Sunsilk and Grameen Phone.
2
The Economist, “The Path through the Fields”, November 3, 2012, http://www.economist.com/news/briefing/21565617-bangladesh-
has-dysfunctional-politics-and-stunted-private-sector-yet-it-has-been-surprisingly, accessed February 2016.
3
Ibid.
4
Economist Intelligence Unit, Bangladesh Country Report, January 2012, accessed January 2016.
5
A division was similar to a province or state.

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cultures. The usage of coconut oil was especially prevalent in South Asia. The coconut tree (Cocos
Nucifera) was widely cultivated in tropical areas, and coconut oil proved to be suitable for food
preparation, hair care and skin care. The method of extracting oil involved removing the coconut
kernel from its shell and drying it under the sun or in a kiln. The dried coconut flesh, or copra, would
then be processed to extract coconut oil.

The high saturated fat content made it a healthier choice for cooking as it contained lauric acid that
removed bacteria.6 Coconut oil was also used in skin care for its anti-aging properties and rich
vitamin and protein content that kept the skin hydrated and healthy.

Additionally, it was popular in hair care due to antioxidants that prevented damage to hair cells. Oils
were traditionally used to promote hair growth and add sheen. In fact, coconut oil was “the only oil
found to reduce the protein loss remarkably for both undamaged and damaged hair when used as a
pre-wash and post-wash grooming product”.7 The oil aided moisture retention, which kept the hair
soft while preventing breakage. Coconut oil also served as a conditioner, preventing hair
entanglement, keeping hair smooth and repairing hair damage.

Marico Group

In 1990, the Mariwala family decided to restructure their privately held company, Bombay Oils
Industries Limited (BOIL), to allow the divested companies to pursue autonomous strategies. Harsh
Mariwala, the future Chairman of Marico, was tasked with managing BOIL’s consumer products
division. The division was renamed Marico and focused on the beauty and wellness industry. Its
product range expanded to include hair care products (Parachute and Nihar), refined oils (Saffola)
and skin care products (Kaya).

Bangladesh Operations

In 1996, Marico expanded into Bangladesh by hiring an import house to handle distribution and
marketing-related activities. The Bangladeshi market was a natural choice for Marico’s early
international expansion due to its large customer base and cultural similarity to the Indian market. In
1999, MBL was incorporated as a separate, wholly-owned listed subsidiary and started operations by
importing Parachute coconut oil from India as its main product. That same year, the group built its
first overseas manufacturing facility in Bangladesh, and allowed the local entity the autonomy to
pursue an independent market strategy suitable to Bangladesh’s unique market characteristics. Later
on, it managed promotions, distributions, and packing through a local filling unit locally.

During its initial years in Bangladesh, coconut oil was largely a commodity product. Generic coconut
oil was stored in large barrels in small provision stores, and customers would bring their own
containers and pay based on capacity. This unbranded segment was known as loose oil. Loose oil
was also sold in small plastic packs. The main challenge Marico faced was to convert loose oil
consumers to branded oil consumers. The only branded competition came from Jui, a rival which
sold coconut oil in tins with a 12-month shelf life. Marico relied on its decades of experience in India
to make inroads into the Bangladeshi market. Initially, it focused on establishing its brand while

6
Elizabeth Walling, “Learn about the Many Benefits of Lauric Acid in Coconut Oil”, Natural News, August 11, 2009,
http://www.naturalnews.com/026819_lauric_acid_coconut_oil_infections.html, accessed May 2016.
7
Aarti S. Rele and R. B. Mohile, “Effect of Mineral Oil, Sunflower Oil, and Coconut Oil on Prevention of Hair Damage, J. Cosmet.
Sci.54(2), 2003, http://journal.scconline.org/pdf/cc2003/cc054n02/p00175-p00192.pdf, accessed May 2016.

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facing price pressure from cheaper loose oil as Parachute was sold in small 50 ml plastic packets for
10 taka (12 cents US)8 each. Marketing was important because the cost of Parachute was slightly
higher than the price of loose oil.

MBL’s success led to the opening of the Kaya skin clinic in 2002. By 2003, Parachute’s successful
branding efforts resulted in branded coconut oils capturing 20% of the industry. In 2006, it acquired
Nihar from competitor Hindustan Lever.

In 2009, the decision was made to raise capital through the capital markets to establish a full- scale
business in Bangladesh. Milind Sawate, Chief Finance, HR and Strategy, Marico, explained the
listing strategy for further expansion,

Our key objective in listing was to promote local ownership and signal a long-term commitment
to the country. We have grown from an import model to building a full-fledged business with
localised manufacturing and marketing.9

The Dhaka stock exchange listing helped build Parachute’s brand and relationship with customers.
The long-term plan was to build up in-country operations for Parachute. MBL would expand its
manufacturing facilities, handle distribution and advertising to brand its product.

In 2011, Parachute launched a body lotion for the skin care market. It continued with brand-building
efforts that involved commercials highlighting Parachute’s purity as the sealed packets were tamper-
proof compared to loose oil that could be easily diluted. The attractive packages also appeared more
sophisticated than the recycled containers people used. MBL associated Parachute with beauty in its
advertisements and reinforced the message of purity by refusing to compromise on the quality of
coconut oil. The target market was females of all ages, beginning with teenagers through to the
elderly. Road shows with videos-on-wheels were launched, demonstrating the purity of Parachute
through field re-enactments of laboratory tests.

Gradually, Marico developed a base of its own distributors, who would distribute to sub-distributors
and then on to thousands of retailers. By 2012, MBL had increased its distribution network to supply
550,000 outlets in grocery stores, supermarkets and cosmetic stores. It also leveraged technology for
better inventory management. It owned two factories that processed copra and had six subcontractors
for manufacturing, no longer importing any of the finished product from India. The company
employed 120 workers, with half of them in sales. MBL began to diversify its product range by
offering a variety of stock keeping units (SKU) for Parachute, ranging from 45 ml to 500 ml (refer
to Exhibit 1 for the SKU prices).

Value-Added Hair Oils

In 2007, MBL decided to move up the value chain and offer premium hair oils formulated to provide
extra care for hair. Other natural ingredients were added to the coconut oil during the preparation of
these various value-added hair oil (VAHO). MBL’s first VAHO was Parachute Beliphool (Jasmine).
Subsequently, the company introduced Parachute Advansed and Parachute Advansed Cooling (refer
to Exhibit 2 for product descriptions). MBL enhanced its products with perfumes, vegetable oils
such as canola, and petroleum-based emollients infused with Amla (gooseberry) extract. Unlike pure

8
US$1 = 81 takas in 2012
9
Mahesh Nayak, “Get Listed, Get Local”, Outlook Business, January 23, 2010,
http://archive.outlookbusiness.com/printarticle.aspx?263714, accessed May 2016.

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coconut oil, VAHO was unsuitable for cooking or baking. The VAHO market was segmented into
four groups; perfumed, cooling, coconut oil + and non-coconut oil.

Perfumed

By 2012, the perfumed market in Bangladesh was 2,800 kilolitres.10 Beliphool, Parachute’s top
selling VAHO, was basically perfumed coconut oil. The infused jasmine scent allowed it to be sold
at a 20% premium. The market leader in this segment was a competitor brand, Cute, which was a
perfumed coconut oil and leader in the entire VAHO category. Another competitor in this space was
Swan Gandharaj. MBL was the only active advertiser in the perfumed segment.

Cooling

The market size in the Cooling segment was 1,400 kilolitres. In 2011, Parachute Advansed Cooling
Hair Oil (PACHO) was launched with 21 Ayurvedic (Indian herbal) ingredients. PACHO was ideal
for the hot tropical weather and helped to relieve stress and fatigue. It had the third highest market
share in this subcategory after competitors Navaratna and Tibet Pumpkin.

Non-Coconut Oil

The size of the non-coconut oil market was 640 kilolitres. Dabur Amla, a competitor that had more
than 95% share of this submarket, dominated this segment and left Parachute’s Nihar and Cute Amla
trailing. MBL launched Nihar Naturals in 2012 with three variants – Nihar Amla, Nihar Almond and
Nihar Enriched. Popular Hindi movie star Vidya Balan was chosen as the brand ambassador for the
Nihar range.

Coconut Oil +

Other than the above three specific types of VAHO, there were also ‘Coconut Oil +’ brands like
Parachute Advansed, which was coconut oil enhanced with herbs. The major competitor in this
market was Dabur Vatika. The size of this market was 850 kilolitres.

The leader in the VAHO category had been Dabur, though Parachute saw a big increase in market
share from around 2% in mid-2009 to 18% by end 2012. The VAHO category had grown 38% (in
MAT terms) within a year (refer to Exhibit 3 for market share data). Consumers had been shifting
from Parachute coconut oil towards VAHOs, but Dabur and other competitors had gained market
share at the expense of Parachute’s offerings of Advansed, Cooling and Beliphool (refer to Exhibit
4 for the market structure).

The VAHO oils together made up 26.4% of the entire oil category. Of the coconut oils, branded
coconut oils accounted for 89.5% of the share, while loose oils made up the rest. Parachute coconut
oil had 77% of the share of the branded coconut oils.

Consumer Behaviour

10
The volume figures for the VAHO segments are in MAT (moving annual total) terms, which involves summing the monthly volume
sales over the last twelve months. For example, the figure 2800 is derived by adding monthly sales in the twelve months preceding
November 2012.

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Through focus groups and surveys over the years, MBL discovered that hair was considered the most
important factor used to judge a person’s beauty (refer to Exhibit 5 consumer perceptions of the
attributes of beautiful hair). Hair quality was indicative of a person’s health and could affect issues
related to self-esteem and confidence. Hair was considered the symbol of feminine beauty. Thus,
proper hair care was essential to beauty.

Consumers believed that hair oils could help maintain beautiful hair (refer to Exhibit 6 for consumer
perceptions of hair products). They were willing to pay a premium for a superior product that could
prevent dandruff, hair loss, and the greying of hair. Oil was perceived to be the most vital ingredient
for hair care, and regular usage of hair oil was part of a routine, including applying shampoo and hair
conditioner, which warded off dandruff and helped keep heads cool. It was also believed that good
hair oil could restore hair to a healthy state, and its functionality included preventing hair loss, making
hair silky and improving the overall quality of hair. Hair oil would protect hair roots so that the hair
could grow longer without breaking. Proper care ensured that hair would not become tangled and
would maintain its colour and silkiness.
MRC-Mode Research Study

In 2009, MBL commissioned a study by MRC-Mode, a leader in Market and Communication


research, to study the characteristics of the Bangladeshi hair oil market.11 The study found that 35%
of women reported having normal hair while 25% had dry hair. Among men, 55% had normal hair,
and 25% had dry hair. The main gender difference was the length of hair: 85% of women had long
hair while 75% of men had short hair.

Two-thirds of consumers washed their hair daily, and another 20% washed their hair once or twice a
week. The most common hair care product used was coconut oil, with 80% of consumers using it.
There was also a high usage rate for shampoo with 85% of men and 70% of women using it.
Additionally, 50% of women reported dandruff problems and 55% of women reported hair fall.
Consumers typically bought hair oil once a month and used half a cup roughly every other day (refer
to Exhibit 7 for consumer usage data).

Sirius Marketing Research Study

These insights were corroborated by further research sponsored by MBL. In 2012, a sample of 470
women in the 16-45 age group from the three largest Bangladeshi cities, Dhaka, Chittagong and
Khulna, were interviewed in a survey conducted by the marketing research firm Sirius. 12
Interviewees were screened to ensure that they used coconut oil and were from the top three Socio-
Economic Classification segments A, B, or C13.

The study showed that in about 60% of the households, the male head of the household (and often
the breadwinner) made the purchase, but the brand decision was made by the female head of the
household (who was often a housewife) about 80% of the time. In 55% of the households, hair oil
purchasing, brand decision making and SKU decision making were done by the same person. In 39%
of the households, purchasers only obtained hair oil and did not decide brand or SKU (refer to
Exhibit 8 for consumer decision making dynamics). Usage frequency was about the same as that

11
Internal data provided by the company
12
Ibid.
13
The SEC Classification system combines educational and occupational characteristics of the heads of households to segment consumers,
as they are easier to collect compared to household income, while serving as a proxy for the latter. The A, B and C households represented
the top 4%, 7% and 26% respectively of all households in 2011, and were projected to increase in size to 5, 10 and 35% of the Bangladeshi
population by 2021.

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discovered in the 2009 study, with about 17% of women using hair oil daily, and the most common
frequency being once or twice a week.

Advertising and Brand Perception

MBL had been successful in building its brand name and converting customers accustomed to buying
loose oil. The company had started to build brand awareness through advertising, and consistently
stressed the superior quality of its hair oil in comparison to generic coconut oil (refer to Exhibit 9
for descriptions of MBL commercials). While the advertising efforts to convert the loose oil segment
were very successful, shrinking the segment to 10% of the coconut oil market, MBL faced a greater
challenge in building up a reputation for the VAHO brands (refer to Exhibit 10 for descriptions of
competitors’ commercials).

The advertising and promotional efforts of MBL led to a strong presence in consumers’ minds for
Parachute coconut oil, with high levels of recall, and very favourable brand perceptions. However,
the VAHO offerings lagged considerably in recall and in brand perceptions, and there was a looming
threat from the competing offerings from Dabur and other VAHO (refer to Exhibits 11, 12 & 13 for
the relative standing of MBL’s offerings).

Future Strategy

Shome was proud of the journey that had propelled MBL’s Parachute brand to the top spot in
Bangladesh. As he savoured the welcomed recognition of the strong position of the Parachute brand
in the minds of Bangladeshi consumers, he also knew that the last year had seen significant loss of
share of Parachute coconut oil in the VAHO segment, with Dabur being a prominent gainer (refer to
Exhibit 14 for the relative change in market share). Shome wondered how he could maintain the
strength of Parachute coconut oil in the coming years, while increasing MBL’s 18% share of the
VAHO market in the face of strong competition.

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EXHIBIT 1: PRICE OF PARACHUTE COCONUT OIL PACKAGES

Size (ml) Price (Taka) Price (US$)


45 18 0.22
90 35 0.43
100 48 0.59
200 95 1.17
400 175 2.15
500 200 2.46
Source: Marico Internal Data

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EXHIBIT 2: THE PARACHUTE VAHO PRODUCT LINE

Parachute Advansed Beliphool

Parachute Advansed Beliphool Coconut Hair oil offers the goodness of Coconut and
Methi which nourishes hair and makes it thick and beautiful. The non-sticky nature
of the oil leaves hair light and bouncy and the delightful fragrance of beliphool gives
a refreshing feeling to the hair.

Parachute Advansed

Specially created for the modern woman, Parachute Advansed Hair Oil contains
ingredients which help penetrate the hair and provide nourishment & essential care.
When massaged into the hair for 20 minutes, the hair oil leaves your hair healthy,
nourished and with a unique rich fragrance.

Parachute Advansed Enriched Hair oil comes with the goodness of coconut oil and
other herbal ingredients like Amla, Hibiscus, Mehendi and Lemon. The oil serves
consumers who believe that their hair requires more than just the care of coconut
oil. The various herbal ingredients present in this oil address particular hair related
issues.

• Lemon keeps the scalp clean and gets rid of dandruff


• Mehendi makes hair soft and smooth
• Amla strengthens the roots of hair
• Hibiscus makes hair black

Parachute Advansed Cooling

In keeping with consumers' myriad needs, Parachute Advansed Cooling Hair Oil is a
coconut oil enriched with 21 Ayurveda herbs that impart a cooling effect along with
hair nourishment. The hair oil also provides additional benefits such as relief from
headaches, long lasting stress and ensures sound sleep.

Nihar

In 2012, the Nihar range of Amla oils was launched with three variations:

• Nihar Amla: With the benefits of Amla as well as Almond-


thus resulting in 500% more Vitamin E nutrition
• Nihar Almond: Enriched with the strength of Almond
• Nihar Enriched: A coconut based light oil having the
Jasmine fragrance

Source: Marico Internal Data

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EXHIBIT 3: MARKET SHARE OF LEADING BRANDS OF VALUE-ADDED HAIR OIL

30%

25%

20%
Market Share

15%

10%

5%

0%

MBL VAHO Cute Perfumed Dabur

Source: Marico Internal Data

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EXHIBIT 4: STRUCTURE OF THE VAHO MARKET 14

Source: Marico Internal Data

14
Growth of market segments is versus last year (LY)

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EXHIBIT 5: ATTRIBUTES OF BEAUTIFUL HAIR

Clean

Combed Silky

Important
attributes
of beautiful
Black hair Thick

Strong
Long
roots

Source: Marico Internal Data

EXHIBIT 6: PERCEIVED BENEFIT OF VARIOUS HAIR CARE PRODUCTS15

Branded Non- Loose Homemade


Herbal hair
Benefits of Hair Care Products coconut coconut coconut Shampoo
products
Hair cream hair
hair oil hair oil hair oil treatment

Very likeable aroma 96 42 21 97 28 15 28


Nourishes my hair 95 44 22 93 29 16 30
Makes my hair strong 93 40 25 90 27 16 29
Prevents hair fall 92 42 25 90 28 16 29
Suits my hair 91 40 25 90 26 18 26
Keeps me fresh all day long 91 40 24 91 26 18 28
Does not make my hair sticky 92 38 23 91 26 18 27
Has no side effects 89 38 23 86 25 17 28
Has natural ingredients 90 39 24 89 25 17 27
Attractive packaging 88 32 22 88 22 15 22
Attractive advertisements 91 33 24 90 24 18 20

Source: Marico Internal Data

15
Percentage of respondents who associated the property with the hair care product.

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EXHIBIT 7: HAIR OIL USAGE AND PURCHASE FREQUENCY IN 2009

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Amount of Oil Use


60

50
1/2 Cup

40 1/2 Cup to 1 Cup

1 Cup
30
2 Cup
20
3 Cup

10 More than 3 Cup

0
16-25 26-35 36-45 45+ Working Non-Branded All

Frequency of Oil Purchase


Once in a Week Once in 15 Days Once in a Month Once in Every 2 Months Once in More than 2 Months Others

50
45
40
35
30
25
20
15
10
5
0
M F M F M F M F
Urban Semi Urban Rural All

Amount Purchased
20 ml 45 ml 100 ml 200 ml 300 ml 400 ml 500 ml Others

45
40
35
30
25
20
15
10
5
0
M F M F M F M F
Urban Semi Urban Rural All

Source: Marico Internal Data

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EXHIBIT 8: DECISION MAKER AND USAGE OF HAIR OIL: FROM 2012 STUDY

Purchaser only purchases 39%


Purchaser also decides brand 1%
Purchaser also decides SKU 5%
Purchaser decides brand and SKU 55%
Brand decision maker only decides brand 5%
Brand decision makes also purchases 1%
Brand decision makes also decides SKU 39%
Brand decision maker purchases and decides SKU 55%
SKU decision maker only decides SKU 1%
SKU decision makes also purchases 5%
SKU decision maker also decides brand 39%
SKU decision maker purchases and decides brand 55%

 In 55% of the households, hair oil


purchase, brand decision making and SKU
decision making is done by the same
person
 In 39% of the households, purchaser only
purchases hair oil and does not decide
brand or SKU.
 In 94% (55%+39%) of the households,
Brand and SKU are decided by the same
brand.

Source: Marico Internal Data

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 9: DESCRIPTIONS OF ADVERTISEMENTS

Television commercials that focus on the benefits of Parachute coconut oil over loose oil

Anti-loose nonod bhabi


This video depicts a conversation between a woman and her older sister-in-law (Bhabi). The woman
asks why her Bhabi doesn’t use open coconut oil like she used to. Bhabi tells her that loose coconut
oil could have a lot of impurities, and that surely just like one would never buy an open coconut, one
should not buy loose coconut oil. She also assures her that Parachute is very affordable.

Tamper proof
This video again depicts a conversation between a woman and her Bhabi. The woman has a hard
time opening the Parachute bottle, so she jokingly asks if she has secured the bottle with a lock. Bhabi
says that if it was jewellery, she’d have done the same thing. Only in this case, the tamper proof seal
secures the aroma inside. Lastly, she shows how the cap doesn’t hinder usability as it is actually quite
easy to open.

No compromise milk
The video just shows a glass of milk being poured into a glass. The narration says that no one in their
right mind would buy impure milk. Then why would you buy impure (referring to unbottled) coconut
oil for your loved ones? Tagline: “Parachute: The last word in pureness.”

True Blue
This ad is about a woman whose umbrella breaks in the rain. Her face is gloomy because she knows
she’s going to get wet, when suddenly a hand carrying a blue umbrella comes to her rescue. The
narration says something along the lines of “The Blue” protecting your hair and letting it retain its
darkness and thickness. Parachute is now available in a darker blue than ever.

Ads for Parachute Advansed.

Parachute Advansed
While the video shows the daily life of women, it’s the song that’s playing which catches the
audience’s attention. It’s a melodious tune about how it doesn’t matter what the woman is doing, she
could be angry or tired, or happy or concerned, but she’s always gorgeous. The video ends with the
narrator saying, “Parachute takes care of your hair from within. Parachute Advansed keeps you
gorgeous, always”.

Advanced monsoon
This commercial begins with a girl’s important papers getting ruined in the rain. She closes the
window as her sister enters the room and tells her that the excess moisture of the monsoon rains is
ruining her hair in the same way. She advises her to use Parachute Advansed at least thrice a week.
Tagline: Protected hair… even in the rain!
Source: Marico Internal Data

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 10: DESCRIPTIONS OF TELEVISION COMMERICALS OF COMPETITORS

Jui
This video is about a couple in the early morning. The woman sits by the window enjoying the
monsoon rains, while her husband is about to leave for work. As he nears the door, she asks if he
really must go. He chides her to not waste his time, and she responds by saying, “fine!” But as she
goes, he notices her hair and is immediately attracted to her. The tagline of the ad is “Bind yourselves
in the embrace of hair” (hair is used as a metaphor for love).

Jui Narikel Tel


This advertisement starts with a woman tying her husband’s tie. She has a playful look on her face
which he ignores because he’s staring into his phone. Slightly annoyed that he isn’t paying attention
to her, she lets him go. While he’s at the office, there are a lot of scenes of her in front of the mirror.
She puts in a lot of effort into looking good for him when he comes back from work, but he comes
with hardly a glance. A few minutes later, she sits in front of her dressing table and lets her hair
down- this is what finally catches his attention. He tries to come close to her now, but this is when
she decides to play coy. Eventually she gives in, and they laugh together. The actors in this ad are
two well-loved celebrities in Bangladesh, Mithila (an actor) and Tahsan (a singer) - the two
background songs are sung by them. Tagline: Jui narikel tel (coconut oil): Romance begins here.

Dabur Amla
A makeup and costume assistant helps out a film star called Sneha, complimenting her on her choice
of black jewellery and clothes. When she starts to prepare Sneha’s hair oil, though, Sneha says that
coconut oil would ruin hair and that for perfect black hair, one has to use the best: Dabur Amla hair
oil. Tagline: Black hair is a woman’s pride.

Dabur Vatika
After a long day at work, a woman goes to a hair salon, where the celebrity hairdresser asks her how
the condition of her hair deteriorated so much. She replies that it is the long day, tough work, and
pollution that affect her hair even though she tries so hard to protect it. The hairdresser tells her to
use Dabur Vatika hair oil and the narrator details all the special ingredients in the oil (power of amla,
henna, and lemon). Ad ends with the woman asking if you really still want to use ordinary hair oil
after this.

Source: Marico Internal Data

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 11: RECALL, CONSIDERATION, EVALUATION AND USAGE OF MBL AND


COMPETING BRANDS (SEPTEMBER 2012)16

Recall Usage
Purchase Endorsed as Last three Most often
Industry Survey Top of Mind Uncued Advertising
Consideration Very Good months
Last Year
used
Parachute Coconut 60 95 57 67 53 54 71 54
Parachute Advansed 1 6 18 19 13 2 2 1
Parachute Advansed Cooling - - 12 7 5 0.5 1 0
Parachute Beliphool 1 6 10 13 13 1 2 1
Dabur Vatika 10 50 29 33 21 12 18 10
Dabur Amla 5 36 18 21 15 6 9 5
Jui Coconut 10 78 34 22 13 8 13 6
Cute Perfumed 2 18 - 15 10 1 2 1

Source: Marico Internal Data

16
All figures in percentages. The first line is to be read as: Parachute Coconut Oil had 60% top of mind recall, 95% uncued recall, 57%
advertising cued recall. 67% of respondents considered Parachute coconut oil while buying hair oil; 54% had used it in the last three
months, and 71% in the last year. 54% said Parachute coconut oil was the brand they used most often. Note that in response to the
uncued recall question (also reflected in the Top of Mind), most consumers would only respond with Parachute, rather than all its
variants (Advansed, Advansed Cooling and Beliphool).

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 12: BRAND PERCEPTIONS

Parachute
Parachute Parachute Parachute Dabur Dabur Jui Cute
Advansed
Hair Oil Survey 2012 Coconut Advansed Cooling Beliphool Vatika Amla Coconut Perfumed

A non sticky oil 76 13 1 18 36 34 29 24


Has a pleasant aroma 78 31 1 24 39 37 41 33
Reduces hair fall 56 14 8 16 33 36 31 29
Herbal/natural ingredients 47 7 2 13 72 70 26 22
Prevents from dandruff 57 12 17 12 30 32 31 29
Makes hair black 68 19 4 17 36 43 39 33
Has Attractive Packaging 62 42 10 76 44 33 30 44
Prevents hair fall 54 14 21 16 34 35 32 24
Makes hair look gorgeous 65 28 7 22 40 35 45 31
Strengthens hair 67 17 12 21 36 38 41 27
Makes hair manageable 60 12 25 15 33 33 31 30
Gives Shine to Hair 70 13 9 16 39 37 45 27
Keeps hair healthy 68 9 8 15 37 36 38 33
Makes hair longer 70 13 2 19 41 39 42 24
Is safe for regular use 74 14 3 18 37 36 35 26
Suitable for whole family 77 14 5 15 41 35 38 21
Repairs damaged hair 65 11 6 15 38 36 33 23
Makes hair easy to style 64 11 2 17 37 34 35 21
Nourish your hair 66 8 2 14 39 31 32 23
Latest in beauty & fashion 60 10 4 17 38 31 32 21
Makes you feel attractive 62 7 0 14 32 26 24 18
Wish to be seen using this brand 81 22 14 47 49 47 41 63
Miss if it is not around 83 26 14 49 58 59 43 61
Memories with this brand 36 15 30 42 49 36 44 28
Feel confident 88 39 26 71 77 68 61 64
Reminds me of good things 90 40 18 80 81 77 73 65
Feel interested to use 92 30 28 59 67 65 49 78
Feeling of respect 97 93 73 93 89 92 93 74
Feel a sense of joy 83 33 21 65 76 69 62 56
Buy even if it is costly 79 23 2 49 53 51 41 48
I would recommend to others 89 27 16 57 58 52 46 53
I feel good about using 83 32 14 68 73 61 60 54

Source: Marico Internal Data

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 13: RECALL AND USAGE OF MBL AND COMPETING BRANDS (SEPT 2012)

DHAKA Recall Usage

Uncued Total Cued Ads Last 3 mths Most Often

Parachute Coconut 95 100 50 63 59


Parachute Advansed - 100 10 1 1
Parachute Advansed Cooling - 100 5 0 0
Parachute Beliphool - 100 8 1 1
Dabur Vatika 50 100 24 13 11
Dabur Amla 30 100 12 5 5
Jui Coconut 81 100 25 6 6

CHITTAGONG Recall Usage

Uncued Total Cued Ads Last 3 mths Most Often

Parachute Coconut 94 100 56 50 47


Parachute Advansed 16 99 29 2 2
Parachute Advansed Cooling 4 98 18 - 0
Parachute Beliphool 23 99 19 2 2
Dabur Vatika 62 100 34 13 13
Dabur Amla 69 100 36 10 8
Jui Coconut 76 100 38 11 10

KHULNA Recall Usage

Uncued Total Cued Ads Last 3 mths Most Often

Parachute Coconut 95 100 99 43 36


Parachute Advansed - 69 37 - 0
Parachute Advansed Cooling - 68 29 - 0
Parachute Beliphool - 73 8 - 1
Dabur Vatika 27 100 51 3 2
Dabur Amla 16 72 16 1 1
Jui Coconut 59 100 80 3 3

Source: Marico Internal Data

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SMU-19-0039 Marico Bangladesh: Meeting the Value-Added Hair Oil (VAHO) Challenge

EXHIBIT 14: PARACHUTE’S RELATIVE CHANGE IN MARKET SHARE17

Brands Gains Loss Nett


Loose 1,275.7 568.5 707.2
Cinderella 12.8 4.1 8.7
Cute Perfumed 189.4 87.8 101.6
Dabur Amla 51.7 113.2 (61.5)
Dabur Vatika 58.2 95.3 (37.1)
Swan Gondhoraj 18.1 39.2 (21.1)
Navratna 18.4 24.1 (5.7)
Jui 315.6 246.1 69.5
Kumarika 2.8 29.9 (27.1)
Parachute Advansed 15.4 5.6 9.8
Parachute Cooling 3.2 4.7 (1.5)
Parachute Beli 96.2 68.3 27.9
Swan Coconut 1.3 12.1 (10.8)
Tibet Pumpkin 45.1 61.5 (16.4)
Others 476.1 335.1 141.0
Total 2,580.0 1,695.5 884.5
From Major VAHO 511.3 533.7 (22.4)

Source: Marico Internal Data

17
Data in kilolitres taken from October 2011 to October 2012.

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