Marketing Management 1

Assignment 3

Parachute Coconut Hair Oil

And
Dabur Vatika Hair Oil

-by Group 3
About Marico-Parachute
Marico Limited is one of India's leading consumer products companies operating in the beauty and
wellness space. Empowered with freedom and opportunity, they 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, skin care, edible oils, health foods, male grooming,
and fabric care.
Parachute- Parachute is the flagship brand of Marico. Before 1992 economic liberalization in India,
the government classified vegetable oils as an essential commodity and as being in short supply,
and thus intangible for export. That meant Parachute products could not be exported to foreign
markets. In the late 1990s, Marico made its serious entry into foreign markets by setting up a
manufacturing plant in Bangladesh. Parachute’s market share rose to 70% within 10 years and it
had become one of the most recognized and trusted brand in that country.
Parachute is now considered a premium edible grade coconut oil, a market leader in its category.
From a loosely available commodity to a path-breaking brand, Parachute pioneered the switch
from coconut oil sold in tins to plastic. Parachute is also available in pouch packs, to service the
rural sectors, increasing penetration.
The quality of the product has contributed to its lasting success. The consistency, with which
Parachute has delivered, ensures consumer loyalty and trust in the brand. Parachute has thus
ensured that it enjoys tremendous equity and trust with every passing generation. The brand has a
huge loyalty, not only in the urban sections of India but also in the rural sector.

About Dabur-Vatika
Dabur India Ltd. is one of India’s leading FMCG Companies with Revenues of over Rs 7,680
Crore & Market Capitalization of over Rs 48,800 Crore. Building on a legacy of quality and
experience of over 133 years, Dabur is today India’s most trusted name and the world’s largest
Ayurvedic and Natural Health Care Company.
Dabur's products also have huge presence in the overseas markets and are today available in over
120 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries,
Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over 30% of the total
turnover.
Dabur Vatika is one of the leading brand in the coconut oil segment in India. It has a market share
of 13%. Vatika is a close competitor of Parachute in the coconut oil segment
Segmentation:
Demographic: The primary target audience of Parachute and Dabur Vatika is woman of all ages.
However, since the last few years, even men have become the primary consumers. Earlier they
used to use the hair oil that the female in the household used to purchase. Now, they have been
deciding what hair oil they want to use.
Socio-economic classification for Parachute and Vatika could be B1, B2, C, D, E1 segments based
on the market selling price of the products.
Geographic segmentation of Parachute: Since hair oil is an essential commodity, Parachute is
present in every region of the country, in both rural and urban areas. However, it is present in only
a few international markets.
Geographic segmentation of Vatika: Since hair oil is an essential commodity, Dabur Vatika is
present in every region of the country, in both rural and urban areas. Even Dabur Vatika is present
in a few International markets.
Psychographic segmentation: The present generation believes more in looking good as compared
to the previous generation which believed in strengthening the hair with pure coconut oil. So, it
seems like the usage rate of the product is gradually going down and many consumers are
switching to the herbal and inputted hair oil category.

Targeting
Parachute

Age Gender Income

2%
0%
11%

30% 15%
47%
46%

54%
68% 27%

<30000 30000-50000
<20 20-35 35-50 >50 Male Female 50000-100000 >100000
Age: Here 68% of the respondents were between the age group 20-35. The reason being- the survey
was sent to people via the internet and the most responses we got were from the youth. However,
from our experience, even the age group above 50 will be considered as potential target audience.
Gender: There is just an 8% gap between male respondents and female respondents. In this case,
both are equally important. However, all coconut oil advertisements are addressed to females
Income: The product is clearly used by people with all income groups. Lower class, middle class
and upper-middle class all are the potential target audience here. However, as per our
understanding, as the customer tends to move from upper-middle class to upper class, his/her trend
seems to go to premium oil types like Olive Oil and Argan oil.
Target as per the usage type of the product: In southern part of India, Parachute coconut hair
oil is used mostly used as edible oil and in western part of India, it is used as regular hair oil.

Dabur Vatika
Age: We just had 2 respondents in who use Vatika. They were between the age group 20-35. But
people with age above 35 can also be the possible target audience.
Gender: Both males and females can be targeted for Vatika. But all the advertisements till now
have been addressed to females.
Income: Dabur Vatika is a little not a premium product in the category. However, the target
audience will be the same as above.
Target as per the usage type of the product: Like Parachute coconut hair oil, Dabur Vatika is
not used as edible oil in southern part of India.
Positioning

Radar Analysis
Parachute Vatika

Features
5.00
4.00
3.00
Sizes Aroma
2.00
1.00
0.00

Availability Price

Packaging

Notes to graph
 0 means the brand has not scored well, and 5 means it is very good for that point.
 The data is from 59 consumers of Parachute and 2 consumers of Vatika coconut hair oil.

Marico has positioned itself as a well-known trusted brand in the eyes of Indian consumers. And
its flagship brand Parachute is loved and most used brand in the hair oil category.
The radar map shows that the positioning of both the brands is very similar, and they have a cut
throat competition among them. However, as per the survey that we collected, 59 out of 100
respondents used Parachute hair oil and just 2 out of 100 used Dabur Vatika hair oil. One of the
reason is that, Amla hair oil and herbal oil of Dabur is more used than the Vatika, 4 out of 100
people used Dabur Amla.
The survey results suggests that Parachute has been positioned very well in the coconut oil
segment. However, a very few people knew that Parachute coconut hair oil stands for ‘purity’.
Also only a few people knew that the hair oil is edible as well. This could be because, most of the
respondents are from Western India where the coconut oil is used only as hair oil, whereas in
Southern India it is also used as edible oil.
Dabur Vatika, although the radar map shows that it is positioned in a very similar way as Parachute
is, but the usage for it seems to be very low. So, we believe it needs to be repositioned in a different
manner as merely coping the market leader does not always work. So, we suggest it should focus
on some points of differentiation and communicate them to its target group.