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PIGGY BACK

MARKETING

Piggyback marketing

Definition
Low cost market entry strategy in which two
or more firms represent one another's
complementary (but non-competing)
products in their respective markets.
Eg: Marico and Kaya

Piggy back exporting

Piggyback exporting describes a situation in which one company


markets its products through the distribution channels of a
second company.
Two major reasons for piggyback marketing are:

(1) a local company desires to enter multinational markets but lacks the
money, experience, or possibly the inclination to learn what is
necessary to be successful in the international marketplace;
(2) an existing multinational company is seeking to fill out its product
lines to stay competitive overseas.

Piggybacking involves products which complement one another


instead of competing.
This method of exporting is one of the least problematic of all of
the methods of entering foreign markets.
Of course, success is dependent upon who the partners are and
the commitment to making the partnership function effectively.

Piggy back marketing is an innovation in


international distribution whereby one
manufacturer obtains distribution of products
through others distribution channels.
Both parties can benefit:

The active distributor makes fuller use of its


distribution capacity and increases revenue
The manufacturer using the piggy back
arrangement does so at a cost much lower than
direct arrangement

Example

Kauai Kookie company in Japan sells


Hawaiian cookies through travel agents
to Japanese tourists after they have
returned home from Hawaii, thus saving
on their baggage.

India-based international companyexample

In local scenario, one prominent example of piggyback marketing


is Kaya piggybacking Marico.
Marico is a leading Indian Group in Consumer Products& Services
in the Global Beauty and Wellness space and reaches out to more
than 20 countries across the world.
In Bangladesh, Marico Bangladesh Limited (MBL) holds a leadership
position in the FMCG space.
In 2011, the Rs480-crore Marico Bangladesh has been ranked by
Bangladesh Brand Forum as the second most vibrant brand in the
country after Nokia.
In 2010, Marico set to expand its horizon by opening its premium
skin care salon, Kaya Skin Clinic.
Kaya, has piggybacked on the 14-year success ofMarico to open
its 101st skin clinic in Dhaka a market it claims to be its second
skin.

Marico Bangladesh Ltd.


(MBL)

Marico Bangladesh Limited (MBL) holds a


leadership position in the FMCG space.
MBL recorded a turnover of Tk. 5,358 Million
( USD 73.4 Million) in 12 months ended on 30th
September, 2010 and Tk. 2,846 Million
( USD 39 Million) in 6 months ended on 31st
March, 2011.
MBL is the subsidiary of Marico Limited,
India (Marico).

MBL

MBLs Products in Pure Coconut oil, Edible Oil,


Hair care and Skin Care reach out to more
than 500,000 outlets in Bangladesh.
MBL touches the lives of 1 out of every 3
Bangladeshi through its portfolio of brands
such as Parachute, Saffola, Hair Code,
Aromatic, Camelia and Beliphool to name a
few, most of which enjoy leadership positions
(No. 1 in coconut oil segment), with significant
market shares in respective categories.

MBL

Maricos focus on sustainable profitable growth is


manifest through its consistent financial
performance a CAGR of 51% in Turnover and 34%
in Profits over the past 5 years.
In 2010, Bangladesh Brand Forum along with
Nielsen Bangladesh evaluated 2005 brands across
all categories nationwide (previous year was 1796)
and among this Parachute was awarded as the 5th
Most Trusted Brand.
In addition to this Parachute also received the Best
Brand Award in the Coconut Oil category.

MBLs product range

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