Marico - Managing 'Saffola'
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Case Details:
Case Code : MKTA005
Case Length : 14 Pages
Period : 1990-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Marico Industries
Industry : FMCG, Fast Moving Consumer Goods
Countries : India
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Brand Building
In April 2003, Marico reorganized its business and brought Nature Care, Health Care and the International Business Group under a single division - Consumer Products.
This profit center comprised the operations of Marico Industries and Marico Bangladesh Ltd. (MBL), a 100% subsidiary of Marico.
It manufactured and marketed ten brands-'Parachute', 'Saffola', 'Hair & Care', 'Shanti', 'Sweekar', 'Sil', 'Mealmaker', 'Oil Of Malabar', 'Mediker' and 'Revive'...
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Saffola Edible Oil
Edible oils could broadly be categorized into vegetable refined oil, hydrogenated oil (vanaspati) and bakery fats. The major edible oils produced and consumed in India were groundnut, sunflower, safflower, soya, castor seed, cottonseed, mustard and sesame seed. While pure groundnut oil could be directly consumed or refined to have higher purity, oils such as soya had to be refined to make them edible grade. Groundnut oil was the most widely consumed oil in India. But groundnut was a monsoon crop (Kharif), vulnerable to the vagaries of monsoon.
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In 1986, the Government of India set up a Technology Mission for Oil, to increase production of oil seeds and oil and reduce dependence on imports.
Oil seed production witnessed a sharp increase from around six million tonnes in the 1980s to around 22 million tonnes in the early 2000s.
The late 1980s marked a period of intensifying competition in the refined edible oil category.
ITC - the Indian offspring of British American Tobacco Company and National Dairy development Board (NDDB) began extensive cultivation of oil seed crops... |
Excerpts Contd...>>
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