Emami Limited.docx

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CENTRAL UNIVERSITY OF JHARKHAND

ASSIGNMENT ON

“UNDERSTANDING THE MARKETING MIX OF EMAMI LIMITED” SUBMITTED TO:Mr. NAGAPAVAN CHINTALAPATHI SUBMITTED BY:RAJSHREE

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CUJ/I/2016/IMBA/24 Semester - 03

Preface Theoretical knowledge gives us the basic idea about how to approach for certain things, but it does not tell us what practical things are involved while we are in the field. Therefore, in order to get the practical knowledge that how a company manages to deal with their toughest of all, the marketing department and its various facilities, I had undergone studying the marketing mix of the Emami Limited. Emami, a culture… a world… a bursting potential, transforming green field site into the basis of affluence, which has changed the very face of India. The project will also serve as a basis knowledge in respect of analysing the strengths, weaknesses, opportunities and threats. The project report covers the various activities of pricing, distribution, sales, promotion, the production etc.

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Contents Sl.No .

TOPICS

Page No.

1.

Executive Summary

4

2.

Objective of the Study

5

3.

Emami Limited – Company Profile

6

4.

History, Formation and Growth of the Company

7

5.

Departmental Overview

10

6.

Market Summary

11

7.

Marketing Mix - (1) The Product Concept

13

(2) Price

28

(3) Place

31

(4) Promotion

35

8.

SWOT Analysis

38

9.

Conclusion

40

10.

Abbreviations & Bibliography

42

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Executive Summary The study was executed on the basis of McCarthy, a renowned philosopher, who classified various marketing activities into marketing mix tools of 4 broad kinds, which he called “the 4 P’s of marketing”, namely    

Product Price Place Promotion

The overview (diagrammatical representation):-

Objective of the Study

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The purpose of this assignment on “Understanding the Marketing Mix Of Emami Limited”, undertaken was to: (a)

To get insights upon how Emami Group of Industries

came into establishment. (b)

To understand the 4 P’s of marketing.

(c)

To gather knowledge about how these 4 P’s are handled.

(d)

Studying the key businesses of Emami ltd., and

understanding the product diversification. (e)

Market study.

(f)

To know the pricing strategy, the sales and distribution and the various promotional techniques used by Emami.

(g)

Conducting a SWOT Analysis to understand the

strengths, weaknesses, opportunities and threats. (h)

In totality, the assignment is done to know the very

basics and even minute tactics used by Emami to manufacture, price, locate, promote and sell its products.

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Emami Limited - Company Profile Emami Ltd. is the flagship company of Kolkata based Emami Group, which is engaged in the business of manufacturing of the personal care and health care products from past 3 decades and has diversified in the other SBUs like real estate, paper, biofuel, cement etc. Emami Limited is a fast moving consumer goods company. The Company is engaged in providing Ayurvedic Medicinal Products, and Cosmetic and Toiletries. Therefore, the flagship company of the eponymous group, Emami focuses on consumer products in the health, beauty and personal care sub segments. The Emami Group is one of the largest business groups in eastern part of India, with interests in different business verticals. Some of the major brands of the company are Fair and Handsome Fairness Cream for men, Boroplus Antiseptic, Boroplus Prickly Heat Powder, Navratna Oil, Mentho Plus balm, Himani Fast Relief, Sona Chandi Chyawanprash and others. Therefore, in a brief context the profile can be described as:Established in early 70's, Emami group has grown in India with presence diversified sectors. Founded by two friends, Mr RS Agarwal and Mr RS Goenka, Emami today is a trusted and loved brand of the nation with over 25,000 employees and a group turnover of about Rs.12,000 cr with a market valuation of around Rs. 50,000 cr. At Last;

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VISION – The consumer is reflected through this statement of Emami “Making people healthy and beautiful, naturally”. MISSION – To contribute whole heartedly towards the environment and society. To drive growth through quality and innovation. To uphold the principles of corporate governance. Etc.

History, Formation & Growth of the Company (Year after year)………. A tale of two families, from the days of hand pulled rickshaws to a network of over 3500 distributors.  From 1974, The formation of Emami Group took place in this year when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka quit their jobs with the Birla Groups and they set up Kemco Chemicals, an Ayurvedic medicine & cosmetics manufacturing unit situated in Kolkata. It was an extremely courageous step in the early seventies when Indian FMCG industry was dominated by MNCs. But, then also against all the odds and with a vision of combining the traditional knowledge of Ayurveda with modern manufacturing techniques they started the company with a capital of Rs 20,000 only. The company started manufacturing cosmetic products as well as Ayurvedic medicines under the brand name of Emami from that small factory in Kolkata. The first-rate quality of the products soon created a consumer need and gradually few people were hired to work. A chain of distributors was established and the sale of Emami products reached from West Bengal to all over India.

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 In 1978, Himani Ltd almost a 100 year old company with good brand equity in Eastern India having a well set factory in Kolkata had become sick unit and was up for sale. Mr. Agarwal realized the opportunity soon and acquired Himani & decided to produce in the Himani factory different types of health care items based on Ayurveda.  In 1984, Boroplus Antiseptic Cream was launched under the banner of Himani.  In 1989, The next flagship brand of the company was Navratna Cool Oil, which came in the decade of nineties under the brand Himani. And in this year only, Emami managed to set up second factory in Pondicherry.  In 1998, Emami continued to expand the distribution network of the company to South India.  In 1999, Sona Chandi Chawanprash was launched.  In 2005, Company created a history in the market of India by launching Fair and Handsome, fairness cream for men the first time ever. Emami publically issued 50 lakh shares which was listed with NSE.  In 2006, Emami introduced a Health Care Division and a number of new brands of Ayurvedic medicines.  In 2010,

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This year was one of the best one for the company, as they crossed net sales of 1000 cr., they also exceeded market cap of 5000cr.  In 2011, This year they set up its first overseas manufacturing unit in Bangladesh.  In 2012, For a greater publicity Emami signed 4 Olympians and 1 cricketer as brand endorsers for a single brand, Fast Relief.  In 2013, Year of bonus issue – as they exceeded the market capitalisation of 10,000 cr. They launched Boroplus Face Wash with Sonakshi Sinha for the endorsements.  In 2014, Emami declared Interim Divedend of Rs 3/share. They entered the male deodorants space with HE, with brand ambassador Hirthik Roshan. They launched Zandu Balm Ultra Power and Instant Fairness Face Wash under the brand of Fair & Handsome.  In 2015, Emami exceeded the market cap of Rs 23,000 cr. Launched Zandu Baln Junior.

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In totality, from its beginning till today, the Emami has grown into a huge Rs. 1000 crore Emami Ltd under the flagship company of the Rs.3000 crore Emami Group. Over these years of ups and downs Emami has also undergone a number of Mergers and Acquisitions also, for eg. Acquisition of Zandu Pharmaceuticals at 730 cr. Acquired Kesh King business at 1684 cr. Etc. Emami is still hungry for more acquisitions in health and personal care, and we know that by We can acquire companies which has a Rs 50 crore to Rs 500 crore turnover," Emami director Harsh V Agarwal said at the company annual general meeting here.

Departmental Overview The various departments that are held responsible for the growth and success of the Emami Group are as follows(a) Research & Development - Continuous research-led innovation because of its philosophy, people, purpose, prospects and R& D Infrastructure. Activities like benchmarking competitors’ products and seeking “best of class” solutions. Solicit customer reactions and suggestions and refine the product on the basis of market feedback.

(b) Purchasing – Proactively search for suppliers and build long-term and reliable relationships with them.

(c) Manufacturing – The Company, Emami limited meets the customer requirements with continuous search for better product quality and aiming at zero defects.

(d) Marketing – Allocate efforts to build long-run profit potential from the targeted segments.

(e) Sales – Specialized knowledge of customer’s industry, making promises they can keep etc.

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(f) Logistics - The activity of organizing the movement of goods and services. (g) Accounting – Preparation of periodic profitability records. (h) Finance – Analysing the overall expenditures and balancing the financial package.

(i) Public Relations – Triggers the public image of the company.

Market Summary Emami possesses good amount of information about the market and knows a great deal about the common attributes of the most of their prized customers. This information leverages the company to better understand who is served, what their specific needs are, and how Emami can better communicate with them, and even who are still deprived of these facilities. KEY BUSINESSES / TARGET MARKETS are:

FMCG - Emami Limited is one of the leading and fastest growing personal and healthcare businesses in India, with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu balm, Mentho Plus balm and Kesh King. W - www.emamiltd.in



Newsprint - Emami Paper holds the position of being the largest manufacturer of newsprint in India, and the yes it is the only manufacturer in eastern India with units situated in Kolkata and Balasore. The Company has shifted its focus into paperboard manufacturing and enjoys the monopoly. W - www.emamipaper.in



Ball pen tips manufacturing - CRI is a specialized company that creates and designs pen tips for the leading writing instrument brands of the world. CRI today stands as the first and only pen tip manufacturing company in India to be awarded the

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highly prized ISO 9001-2000 Certification. It operates from two states, Ahmedabad and Kolkata. W - www.critips.com 

Retail Stationery- Starmark, retailing books, stationeries and gift items. It is one of the largest leisure retail store in India with 5 stores in Kolkata and 2 in Chennai and has plans for further expansion. Recently launched in Kolkata, ‘Studio by Starmark’ is a new format store, featuring an eclectic collection of lifestyle products & stylish home accessories. W - www.starmark.in



Retail Pharmacy - Emami Frank Ross Ltd. is the oldest and largest pharmacy chain in Eastern India. The first Frank Ross store was set up in 1906 with ambition of having a network of over 300 outlets all over India has been taken up by the Group. W - www.frankrosspharmacy.com



Infrastructure and development - Emami has large presence in real estate in West Bengal. It has successfully executed more than 24 prestigious residential and commercial construction projects, mainly in Kolkata. The existing projects span across the states of West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Maharashtra and Sri Lanka. W - www.emamirealty.com W - www.southcityprojects.com W - www.urbana.co.in



Contemporary Art - Emami Chisel Art Gallery since formation has been promoting Indian art and young artists through numerous exhibitions, retrospectives, art catalogues and publications. It has established itself as one of the finest venues in East India, dealing in works of both modern and contemporary art. Spread across 15000 sq ft. the gallery collection includes paintings, sculptures, prints and drawings sourced from the artists themselves, or from reputed art galleries and private collectors. W - www.emamichisel.com



Edible oil - The brand Healthy and Tasty is one of the most admired edible oil brand in the country manufactured and marketed by Emami Agrotech Ltd. The Company vision’s to pursue aggressive growth to become the prominent edible oil player offering healthy and high quality consumer products. W - www.emamiagrotech.in



Healthcare - AMRI Hospitals, a multi-specialty healthcare facility in Eastern India with specialization in Oncology, Neuro Sciences, Cardiac Sciences, Orthopaedics, Emergency &Trauma care, Gynaecology& Childcare. It is the largest

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player in private sector with its existing strength of around 1000 beds. It has 4 units in Kolkata and one in Bhubaneswar. W - www.amrihospitals.in 

Cement - The Group has set up a Cement Plant in Chhattisgarh and a grinding unit in West Bengal. Another grinding unit is being set up in Odisha. Emami Cement Limited (ECL) has commenced operations of its cement business under the 'Emami Double Bull' brand in the markets of Chhattisgarh, West Bengal, Odisha, Madhya Pradesh, Maharashtra, Jharkhand & Bihar. W-www.emamicement.com



Bio diesel - Emami Agrotech Ltd. is the largest manufacturer of Biodiesel in Eastern India and a key exporter of biodiesel to Europe and other South East Asian Countries. W - www.emamiagrotech.in

Marketing Mix / Tactics A conceptual framework, which highlights the principal decisions that the marketing managers of Emami are taking to configure their offerings to suit the customer’s needs. Where, marketing mix is a combination of factors that can be controlled by a company to influence consumers to purchase its products. And the tools which are going to be discussed ahead are developed both for long-term strategies and short-term tactical programmes. McCarthy, a renowned philosopher classified various marketing activities into marketing mix tools of 4 broad kinds, which he called “the 4 P’s of marketing”, namely    

Product Price Place Promotion

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The objective of the marketing program is to position Emami as the major player in every product category they venture into, to be the most respected marketer in the country, and to be recognized as a global brand, serving the domestic as well as the international market. Therefore, the marketing program firstly seeks to create customer the best of all to suit customers’ needs and wants.

(1)THE PRODUCT CONCEPT The offerings that Emami makes to a market to satisfy a want or need, including physical goods, services, experiences, events etc. The elements included under the product concept which a marketer can control are brands, product variety, quality, sizes, features, services, warranties, returns etc. THE PRODUCT MIX – Emami has its deep roots in various businesses and therefore it fosters to offer varied degree of products and services for sale, and all these product the company has got to offer to customers are called the product mix. THE PRODUCT LINE – Emami Group of Industries carries a total number of 12 businesses and among which it has got variety of brands and products being offered in each, which continues to become the product line of the company. CHARACTERISTIC FEATURE OF THE PRODUCT MIX – Constitutes the width, length, depth and consistency of the product mix. Width being the total number of different product lines the company is carrying. For Emami Group of Industries it is 12, as described earlier. Length of the product mix is the total number of brands/items in the mix. For Emami Ltd it varies in each sector.

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Depth of the product mix refers to the variants of each product in the respective brand / line. Consistency of the product mix describes how closely related the various product lines are in end use, production requirements, distribution channels etc. The detailed information on the Products list of Emami Group of Industries has been given a leaf ahead in the manner of diagrammatical representation.

FMCG – Emami Ltd. Emami in its fast moving consumer goods section has very passionately innovating and launching brands since its formation. They have been successful in launching brands which meet multiple consumer needs for people with different income classes, for both the genders, for young and old and everyone in between. Therefore the various brands and its varieties (the Product Line and the Depth) under this business of Emami are as follows: I.

II.

BORO PLUS : (a) Antiseptic Cream – Ayurvedic Medicine Ointment (b) Prickly Heat Powder (c) Total Results Moisturizing Lotion (d) Zero Oil Zero Pimple Face Wash NAVRATNA : (a) Cool Oil (b) Extra Thanda (c) Cool Talc

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(d) i-Cool Talc III.

ZANDU :

IV.

(a) (b) FAIR and HANDSOME : (a) Fairness Cream For Men (b) Instant Fairness Face Wash (c) Complete Winter Solution

V. VI. VII.

VIII.

MENTHO PLUS : Balm FAST RELIEF : Pain Relief Ointment ZANDU SONA CHANDI : Chawanprash Plus

“kijiye apne bacho ke sapne sakar” KESARI JIVAN : Chawanprash

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IX.

VASOCARE : Herbal Petroleum Jell

The light green jelly restores the

skin's natural glow and offers a pleasant usage experience with it's mild fragrance.

X.

7 OILS IN ONE : Damage Control Hair Oil

Emami after years of research has brought to you a breakthrough in hair oils – a unique combination of 7 oils- that will repair hair damage. This extra ordinary oil, co - created by Indian and International Hair Experts, provides incredible nourishment to hair without weighing it down. This oil with a pleasant fragrance can be used on hair types. It has been proven at leading Indian and International Research Institute that this oil Claims Made : Reduces Hair Fall Upto 96% * Makes Hair Upto 20x Stronger * The depth of product mix : The product is available in 200 ml, 100 ml, 50 ml and 3 ml packs, priced at Rs. 110, Rs 60, Rs 30 and Re 1 respectively.

XI.

KESH KING : Ayurvedic Medicinal Oil

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XII.

XIII. XIV. XV.

Available in different pacakaging. DIAMOND SHINE CRÈME HAIR COLOUR : (a)1.0 Natural Black

(b) 3.0 Dark Brown

(c) 3.66 Cherry Red

(d) 4.0 Natural Brown (e) 4.16 Burgandy

HE : (a) Deodrants (b) On the go Waterless Face Wash EMAMI GOLDEN BEAUTY Talcum Powder EMAMI NATURALLY FAIR Herbal Fairness Cream

Let real pearls and active herbs transform

your skin.

Emami Agrotech Ltd. Emami Agrotech Limited is the edible oil and bio-diesel arm of Emami Group of Companies, the Rs. 10,000 crore, business conglomerate based in Kolkata. Emami Agrotech Ltd has diverse business interests in segments such as production and distribution of Edible Oil, Specialty Fats and Bio-

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diesel. The company is also involved in cultivation of crops that are commercially viable through contract farming. Emami Agrotech Ltd. (formerly Emami Biotech Ltd.) has its brands 'Healthy & Tasty' and 'Himani Best Choice'. It is also one of the largest manufacturers of Biodiesel (Palm Methyl Ester) in Eastern India and a key exporter of biodiesel to Europe and other South East Asian Countries. Emami Agrotech is backed by sound infrastructure that includes state-ofthe-art refineries in Haldia, West Bengal and Krishnapatnam, Andhra Pradesh with a total manufacturing capacity of 3,600 TPD. The factories also house well-equipped R&D centres with advanced testing facilities to ensure the products are compliant with FSSAI, EN and BIS quality standards. Research & Development The Company has its R&D centre for bio-diesel at Haldia, West Bengal. The Centre is equipped with latest infrastructure to test and ensure the products with highest EN and BIS standards. Emami Agrotech also has a Pilot Plant to carry out various R&D projects on different feed stocks to produce bio-diesel as well as to conduct experiments on Bio Lubricants. Quality Assurance Emami Agrotech Ltd. conforms to the highest ethical standards and stringent legal and statutory compliances. Being in the business of food product manufacture, Emami Agrotech Ltd. lays a visible thrust on meeting rigorous in-house specifications across its portfolio. This, the Company believes will enhance the bond of trust with the customers.

BRANDS (Edible oils)

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I.

Emami Healthy & Tasty –

'Emami Healthy & Tasty' was launched in February 2010. It is specially prepared to suit health conscious consumers who believe in preparing their meals using the best ingredients. Emami Healthy & Tasty edible oil range caters to discerning consumers with a promise that healthy food need not compromise with taste. Varieties available (depth of the product mix): Available in size packs of 1ltr pouch, 1 ltr bottle, 5 ltr can . (a) Refined Soyabean Oil (b) Refined Sunflower Oil (c) Refined Vegetable Oil (d) Kachhi Ghani Mustard Oil (e) Refined Rice Bran Oil II.

Himani Best Choice Edible Oil:

Emami Agrotech Limited strives to deliver the best quality products to its customers..

India being a diverse nation demands variety even in cuisine. Variety in taste and palate led to the rising need of a wider choice of edible oils that are also affordable. Himani Best Choice, from Emami Agrotech Limited is

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a brand known for purity and offers good quality, great taste at an affordable price through a wide range of oils for every Indian kitchen. Himani Best Choice is widely accepted across urban and rural habitants. Portfolio of Himani Best Choice includes (a) Refined Soyabean Oil (b) Refined Palmolein Oil (c) Refined Sunflower Oil (d) Kachchi Ghani Oil. Himani Best Choice is amongst the highest growing brand in eastern and southern India. True to its name, Himani Best Choice is literally becoming the choice of every Indian housewife. It is available in size packs of 1ltr pouch, 1 ltr bottle, 5 ltr can . III.

Rasoi Vanaspati

The trusted Vanaspati brand for more than 60 yearsVitamin enriched hydrogenated vegetable oil for a healthy family.

Emami Agrotech entered into the Vanaspati market by acquiring the 60year-old, Rasoi brand in 2014. Rasoi Vanaspati provides great taste and aroma in mouglai dishes and fried items. Rasoi Vanaspati is a popular brand in Hotel and Restaurant segment in West Bengal and has an ambition to enter into the national arena soon. Health Facts:   

Vanaspati is completely made from plant source. It contains various kinds of fatty acids. It is an ideal medium for deep frying.

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It is available in all size packs - (Yellow) - 1 L Pouch, 500 ml Pouch, 200 ml pouch, 100 ml LUP, 50 ml LUP, 15 ltr jar, 15 Kg Jar, (Gold) - 1 L Pouch, 500 ml Pouch, 200 ml pouch, 100 ml LUP, 50 ml LUP; (Blue) - 15 Kg Jar. IV.

Himani BakeMagic

Make a perfect bake with the right mediumOffering specialised products for a wide range of bakery needs, from cakes to savouries.

In 2014, Emami Agrotech introduced a range of specialised products suitable to make a variety of products - Puffs, Kharis, Biscuits, Cookies, Cakes, Creams, etc. After the success of BakeMagic we launched BakeMagic Gold in 2015 enabling our customers to make better quality products. Our products are of great value and are well accepted by bakers. All our products are manufactured using the best quality ingredients in our state of the art plant in Krishnapatnam.

BIODIESEL Biodiesel is a highly efficient and environment-friendly substitute of regular diesel. The fuel is essentially a long chain mono alkyl ester of fatty acid produced from by product and waste product of vegetable oil origin or animal fats which is called FAME (Fatty acid methyl ester). Since biodiesel is produced from organic sources, it is 100% renewable. It not only ensures perfect power output but also guarantees excellent engine performance. Additionally, the use of biodiesel leads to a decrease in harmful emissions by a significant 80%. Storage, Delivery and Blending Systems

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Emami Agrotech stores its biodiesel in tanks on the ground in a clean, dry and dark environment. Acceptable storage tank materials include aluminium, steel, fluorinated polyethylene, fluorinated polypropylene and Teflon. Copper, brass, lead, tin, and zinc are generally avoided. The Company delivers biodiesel from its state-of-the-art factory in 16 or 20 KL tankers. Other methods of supply are also being explored. Simple mixing, splash blending and inline blending are the three methods adopted by Emami Agrotech to blend its biodiesel with petro-diesel.

CULTIVATION Emami Agrotech is diversified into commercial farming of cash crops. Division is involved in cultivation activities for last 10 years in different parts of the country. Emami Agrotech has also diversified into commercial farming of other cash crops like millets, oil seeds, paddy, wheat and fruit orchards. The company has initiated cultivation of herbal and medicinal plants through 100% Bio organic method under organic certification from SGS (India). The primary locations are Tamil Nadu, Orissa and Uttar Pradesh.

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Real Estate – Emami Infrastructure Ltd. Emami Realty - building with trust for a better tomorrow. The company was incorporated in 2006, as a private limited company, to undertake real estate projects in residential, commercial and retail sectors. The Emami Group has successfully executed more than 24 prestigious residential and commercial construction projects, mainly in Kolkata. Some of their renowned constructions include: Orbit Heights (residential) and the South City project (commercial cum residential) at Kolkata. The existing projects span across the states of West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Maharashtra. The company has almost 8 million Sq. ft of area encompassing residential and commercial offerings – which are being developed. These projects are being executed under various Special purpose Vehicles (SPVs) and joint ventures (JVs). The major projects are :  Emami City – Jessore Road, Kolkata  Emami Swan Lake – Kulkatpally, Hyderabad  Emami Tejomaya – Navalur on OMR, Chennai (a perfect combination of global expertise with Indian sensibilities)  Emami Nature - Jhansi

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Newsprint and Paperboard – emami Paper Mills Ltd. Emami Paper enjoys the position being the largest manufacturer of newsprint in India and the only manufacturer in Eastern India. They have successfully met the quality standards of brightness, opacity, strength, printability and appearance being environment friendly hand in hand. They have adopted cleaner technology processes and minimized the unsafe acts and unsafe working conditions. Customer Oriented Business Policy: Ensuring timely delivery day after day to all customers. Length and Depth of Product Mix: Writing & Printing Paper

Newsprint

Emami Paper Mills Ltd.

White Cream Maplitho Move Ledger Paper

Business of providing the leading NewsPaper establishments with good quality paper for newspaper printing.

Emami Maxofold Multilayer Coated Board

Emami Glamkot Emami Ecostrong Grey Board

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Cement – Emami Cement Ltd. Using state of the art technology for manufacturing cement, Emami Cement Limited provides various services for its consumers, channel partners and influencers. Consumers or IHB (Individual Home Builders) are educated and empowered with both online and offline support services through optimal home building guides, how to videos, material calculator and useful construction practices. Our technical van service branded as TECH EXPRESS could be called to a site for other value added services. It's a one-stop shop for influencers as well who are in the field of construction and architecture. We conduct regular meets to inform our influencers about latest technologies in construction. Products Offered: (a) Subh Premium Slag Cement

(b) Portland Pozzolana Cement

(c) PPC Procem Cement

(d) Portland Slag Cement

(e) Ordinary Portland Cement

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Retail Pharmacy – Emami Frank Ross Ltd. Frank Ross was established in 1906 as a Proprietorship Firm by an English man called Mr. Frank Ross It was converted to a Limited Company in 1919 Earlier it imported medicines of multinational companies in India & also sold its own patent and proprietary medicines In 1993, Frank Ross was taken over by the Emami Group. Acquired reputed Homoeopathy companies like M. Bhattacharyya & Co. Pvt. Ltd. and King & Company (Homoeo Chemist) Pvt. Ltd., for manufacturing and sale of homoeopath medicines through clinics and retail outlets. Entered into a Joint Venture in 2014 with a German Homeopathy Company Hevert- Arzneimittel GmbH & Co. KG. The two visionary leaders Sri R. S. Agarwal and Sri R. S. Goenka of Emami Group laid stress on retail trade and the focus was shifted to opening a chain of modern medicine pharmacies. Emami Frank Ross Ltd is the largest pharmacy retail chain in Eastern India.

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Contemporary Art - Emami Chisel Art Emami Chisel Art (ECA) is a part of the reputed Emami Group of Companies. It idealized as a full-fledged art organization from 2008 onwards, encompassing within its infrastructure two large gallery spaces, a library, archive, an art-shop and a publication section engaged in producing some of the most versatile literary and visual productions. It organizes photography, art and craft fairs where craftsmen share space with contemporary artists under one roof. These fairs give a unique opportunity to the mass as well as art connoisseurs to collect artworks at reasonable prices. Besides this, ECA also organized significant curated shows reflecting the contributions made by eminent masters and upcoming talent. Established itself as one of the finest venues in East India, dealing in works of both modern and contemporary art Spread across 15000 sq ft. the gallery collection includes paintings, sculptures, prints and drawings sourced from the artists themselves, or from reputed art galleries and private collectors. Art Works are available in the form of Mugs, Prints, Books and Diaries and etc.

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(2)PRICE – the 2nd ‘P’ of the Marketing Mix Price is not only a number tag but the only revenue generating element among the 4P’s i.e., Product, Price, Place, promotion. Being an essential element of profitability, any company has to decide as to on which aspect are they going to focus on pricing, i.e. whether the company is longing for covering more and more market share or they are happy with a lesser portion of market and want to make greater profits. So, Emami keeping this as a key note has focused on both the aspects – (a) They have kept the prices of FMCG products in accordance with the prices of competitors. Same is the case with the 2 brands of edible oil and even for the business of chisel art and that of cement to grow and cover more of the market they are still continuing with an equivalent or rather a low price range. Price Comparisons – Edible Oil (a/c to Amazon ) Saffola Gold, 1 ltr pouch is sold at Rs.145. On the other hand , Emami sells its Healthy and Tasty brand of edible oil of 1 ltr pouch at a much low range. As Kachchi Ghani Mustard Oil is sold for Rs.101, Rice Bran Oil and

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Refined Sunflower Oil for Rs.90, Soyabean Oil for Rs.85. And similar is the case for 5 ltr cans also. Emami Cement Ltd (a/c to www.indiamart.com) Emami PPC Cement is sold for Rs.250/bag Slag Emami Cement for Rs.260/bag Whereas other brands cement ranges from Rs.210 to 360 . (b)

Further, as they have their wide range of businesses in many sectors which gives them the best of the benefit of making out profits from one and generating larger ratios of revenue. So on this part, Emami Infrastructure Ltd and Emami Frank Ross Ltd has its price ranges high and make profits.

Working this way, Emami is able to make profits from some businesses and then use the profits to invest into other so as to cover the maximum market share. DISCOUNTS: Emami in its pricing strategies has an option kept for the discounts and allowances, in order to receive volume purchases. Discount pricing has become the modus operandi for offering both products and services around the 365 days of year in names of seasonal discount, offseason discount, festival discount, quantity discount and many more. But these are to be done carefully. All most all the online sites are a day or the other giving around 10-15 % discounts on list price, even big bazar all over India goes providing discounts every Wednesday Bazar.

Marketing Insight On Pricing Pricing In A Digital World (An opportunity to grow) Traditionally, price has operated as a major determinant of buyer choice. Companies are in a way or the other compelled to set such a price the

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customers accept and are able and willing to pay. The vice versa would be that the price should not be kept so low that customer’s perception regarding the product only changes, and they think of the product as a lowquality one. So, in this era of being digital, Internet allows both sellers to discriminate buyers and buyers to discriminate between sellers, on following grounds – Buyers can: Get instant price comparisons from thousands of vendors. Check prices at the time of purchase using their smartphones. Buyers want: Free products, Discounts, Free samples and many more such offering on the basis of which they have an ease in differentiating between products. Sellers can: Monitor customer behaviour while purchase actions.

Pricing Strategies Emami through its course of pricing its products is been seen as successfully overcoming the challenges put through them. Because the toughest part is to understand the consumers arriving at their price perceptions. The major concerns are the:  Reference Prices – Emami is seen to not abruptly change the prices of any product and has a good deal of similarity with competitor’s product’s price ranges. Therefore, it seems that they undergo a good amount of research and survey work in the 4th step of pricing, so that every segment of market gets benefited and do not feel deprived of.  Price Endings – Many sellers believe prices should end in an odd number, for then customers perception gets affected for once. For eg, if you keep Rs.299, the price of a commodity. At once it is perceived to be in 200’s and not of a 300. But the Emami is not seen adopting this as any method, rather its pricing of products are mostly found ending 5’s. As, for 30 gm of Fair and Handsome, Emami asks Rs.75.

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1 ltr bottle of Rice Bran Oil is priced at Rs.95 etc.  Price-Quality Inferences – Many consumers use the price as a quality definition of the product. Emami on this ground seems well known as neither of its product’s prices are too high nor too low.

(3)PLACE – the 3rd ‘P’ of the Marketing Mix Decision concerning place in reality comprises two related areas of decisions. Companies usually, make their goods and services in places that are convenient for production, but the customers prefers it to buy where the purchase process is easy for them. So place decisions involve determining how easy a company wants to make it for customers to gain access to its goods and services. Firstly, the place marketing mix involves decision which intermediaries to use in the process of transferring the product from the manufacture to the final customers. These transactions are usually called the “channels of distribution”. Secondly, place marketing mix involves deciding how physically to move and handle the product as it is transported from manufacture to final customer, offered as “logistics”.

Emami Sales & Distribution Emami has an international presence which includes 60 countries in the GCC, CIS and SAARC regions. EL has an extensive distribution network of more than 2700 distributors in the country, about 1200 sub distributors, 60 super stockiest and 4,00,000 direct retail outlets, covering almost every nook & corner of the country.

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Emami has also a wide network of sales done through online portals suvh as snapdeal, bigbasket, amazon, indiamart, natural cart etc. Emami then restructured its sales & distribution model for rural areas, the consulting partner for the project is Ernst & Young and the project is named "Navodaya". Consumers were targeted in Shopping malls and lifestyle outlets. Emami also distributes its products through rural e-Choupal through its tie up with ITC; this has enhanced the company's reach to Rajasthan, Madhya Pradesh and Maharashtra. The company has also appointed 11,000 individuals in rural areas to act as direct distributors to consumers who will make products available to rural households and will get some incentives based on performance. EL is expected to expand both its top line and bottom line in future by virtue of its increased market share & improved realizations and lower interest outgo. Emami's strong presence is due to its strong distribution networks and key highlights are mentioned below:  Pan-India presence with 400,000 retail outlets, nationwide distribution making products available in 2.6 million outlets  30 warehouses and depots across country which are as follows – Agartala (Tripura), Ahmedabad (Gujrat), Ambala (Haryana), Banglore (Karnataka), Bhagalpur (Bihar), Chennai (Tamil Nadu), Coimbatore (Tamil Nadu), Cuttack (Orissa), Dehradun (Uttaranchal), Delhi, Ghaziaba (UP), Guwahati (Assam), Hubli, Hyderabad, Indore, Jabalpur, Jaipur, Jammu, Kanpur, Kolkata, Nagpur (Maharastra), Pabhat, Parwanoo (HP), Patna (Bihar), Pune (Maharastra), Raipur (Chattisgarh), Ranchi (Jharkhand), Siliguri (West Bengal), Varanasi (UP), Vijaywada (AP).  They have also gone under rural penetration through tie ups with ITC, Emami mobile traders and Emami small village shops in seven states.  Emami also supplies to Indian Army through Defense Depots which are spread across 18 states across country.

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Logistics Management In a business where timely availability of the finished product is of utmost, recognition as a dependable manufacturer is the biggest brand. A customer returning empty- handed is a sales opportunity lost. The logistics team at Emami attempts to gauge demand- supply patterns in advance. It works in unison with the marketing and production teams and accordingly draws out plans to make sure that Emami’s products fill up shelves as quickly as they fly off. Further, Emami established a forum where demand and supply scenarios were discussed at the beginning of the month and reviewed each fortnight making it possible for concerned function to track demand and supply dynamics on a real-time basis leading to proactive planning . Highlights - Automated the primary transportation vendor selection process for the movement of products from factories and regional warehouses. Engaged a software and information technology services company, to provide an integrated platform for strategic vendor sourcing and optimising freight costs. The primary aim will be on reducing transit times by more than 50%. In order to make this happen, the Company has already joined hands with an agency to ensure that trucks carrying the Company’s merchandise run for longer hours on a daily basis. Finally, the Company plans to operationalize a just-in-time delivery model in a full-fledged manner.

Marketing Insight On Pricing

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Emami ramps up direct distribution channel According to Madan M Pandey, President Sales CCD, Emami began to explore options for increasing its direct distribution presence over the last one year. It began with metros and tier-I cities and is now expanding the direct distribution network to smaller towns and rural areas which have a population of over 5,000 people. Trade sources point out that the shift in strategy came primarily on account of the company increasing its non-seasonal portfolio. The recovery time for the wholesale trade from demonetisation and GST roll-out has only made Emami increase focus on direct distribution. In a recent analyst call, the company’s top-brass had expressed their desire to bring down contribution of wholesale trade to between 40 and 45 per cent by March 2018. Wholesale channels contribute around 35-40 per cent for the FMCG industry, while in case of Emami, it was as high as 50 per cent. Better control: Pandey pointed out that direct distribution would enable Emami to push for higher value products or larger SKUs in specific areas (in metros mostly), while in the rural areas, it will focus on having the lower unit price offerings and “aspiration” brands like ‘He’, ‘Fair & Handsome’, ‘Kesh King’ and ‘Emami 7 Oils In One’. Brands like Kesh King – which account for nearly 15 per cent of Emami’s turnover and rely heavily on the wholesale channels — are expected to benefit from the move. Typically, the wholesale trade is known to prefer and push for faster moving and in-demand products. Premium products often go amiss in many cases. “From the long term perspective it makes more sense to have a direct

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distribution model. The impact on (our) bottom-line is also expected to be positive in the long run,” he told Business Line during an interview. Emami is expected to reach out to 8.5 lakh outlets directly by the year-end; up from the 7.3 lakh outlets it reached out to by FY-17. In terms of accessing smaller towns, it will cover 25,000 to 27,000 such towns (with population of over 5,000) by FY-18. It has also made investments - to take care of logistics and delivery issues - necessary to reach out here.

(4) Promotion – the 4th ‘P’ of the Marketing Mix Emami is one of the most popular brands and has created a marketing strategy that is heavily dependent on celebrities and good commercials. Shahrukh Khan has been roped in to take part in Fair and Handsome commercials, Amitabh Bachchan, Kangana Ranaut and Sonakshi Sinha for Boroplus products, Hrithik Roshan for products of brand He, Juhi Chawla for Kesh King products. Emami has both superstars Amitabh Bachchan and Shahrukh Khan endorsing same brand Navratna, too. Kareena Kapoor and Kangana Ranaut have also been part of brand Emami at one time or other. The view of those advertisements are:-

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Advertisements are shown on television channels like Star Plus, Zee Cinema, Sony TV, colours along with sports channel for maximum coverage. Even for the endorsements of Fast Relief Emami has signed many sports personalities as their tool for the 4th marketing mix namely promotion. A view of the same is:-

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Radio, newspapers, magazines and hoardings are also used extensively for marketing of Emami products. Another way in promotional activities includes discounts (in collaboration with another company and with its product or even the same), free samples with the advertisements. And Emami leaves no opportunities to catch hold of as much crowd as possible. Therefore, Emami Agrotech Ltd had undergone this method of promotion:

Emami - Rural Promotional Strategy As a part of Corporate Social Responsibility (CSR) initiative to remove rural poverty Emami started two schemes - Emami Mobile Traders, Emami Small Village Shops. These schemes enable the rural youth an opportunity to earn sustainable and regular income. To help rural people Emami has partnered with several rural agencies like Self Help Groups (SHG), Farmers Club, District rural development cells, gram panchayat and Regional Rural banks. These schemes will not only enable and help rural people but also help the company to enhance its reach in rural areas, providing social benefits and making products available to rural population. The scheme was initially

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launched in Cooch Behar district of West Bengal and has now been extended to seven states in India. There are 200+ Emami small village shops and 2000+ Emami mobile traders who conduct direct marketing of Emami products in the rural areas. These ventures enable rural people to earn guaranteed income of Rs 1000 on every Rs. 4000 of goods sold. Above mentioned benefits have helped Emami enhance its reach throughout the country and deliver its products to the end consumer in a timely manner. Its acquisitions abroad will also help Emami to cater to International markets. In urban areas promotions are done shopping malls, kirana shops and specialized distributors.

SWOT Analysis StrengthsSupply Chain Management: Emami products are distributed across India through the following: Super stockist network in Andhra Pradesh, Uttar Pradesh, Maharashtra, Punjab and Rajasthan. The Company invests heavily in sales and distribution IT applications systems.

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Tie-up with fuel retail chains like IOC through its Kisan Seva Kendras to increase rural distribution. Raw Material Management: Raw material costs maintained appropriate in its overall cost structure with following initiatives: Hedging: Company strengthened their hedging policy to mitigate the risk of volatile commodity prices. Cost management: EL substituted select inputs, improving product yield and quality. Purchasing policy: Company procured raw materials from vendors from no excisable areas like Assam, Uttaranchal and Himachal Pradesh etc at affordable costs. Research & Development: Emami is recognized as a company built around pioneering products, features and conveniences. Quality: Emami invests in quality standards, infrastructure, processes and materials, resulting in a high quality from product conceptualization to efficacy.

WeaknessesCompany offers FMCG products based on Ayurveda only and hence limits its scope of product mix. Emami focuses only on products with higher margin. Company depends on ITC e-Choupal to distribute its product and does not have its own system established.

OpportunitiesThe Rs 86,000-crore Indian FMCG industry is expected to register a 15% growth in 2010 as compared to the previous year. The growth in FMCG industry has also been fuelled by the reduction in the excise duties, de-reservation from the small-scale sector and the concerted efforts of the companies engaged in the business of manufacturing of personal care and beauty care products.

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Further, rural India's demand for personal care products is growing faster than in urban areas. Outsourcing the manufacture of select products to reduce costs and focus on branding. This will result in low operational costs and higher flexibility. Also, demographic trends like increasing population and purchasing power favor the consumer healthcare market, thus opportunities for growth.

ThreatsIndustry threat: Indian FMCG industry may fail to sustain the growth, which may in turn, affect the sustainability of the Company. Counterfeit threat: Emami's products and packaging can be copied and counterfeited. Innovation threat: Emami may not be able to respond to the growing needs and the changing aspirations of consumers. Quality threat: Emami's brand can be impacted by inconsistent quality leading to lower profitability. Brand threat: Emami's brand could be affected by growing competition. Consumer threat: An inefficient supply chain could result in product unavailability and loss in market share. Threat from mergers: A merger creates integration challenges, which, if not competently addressed, can lead to a sub-optimal return on employed capital, negating the reason for which the merger was conducted.

CONCLUSION The Indian domestic markets have become very competitive with many international brands and products making inroads into the market. In such a competitive scenario, Emami Ltd has the advantage of serving a diverse country like India, with their diverse product range, wherein consumers belonging to different regions exhibit different buying behaviors. This experience should help Emami to cater to emerging countries like Africa, south-east Asia, Latin America. Emami has recognized the need to expand

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to international markets and is making inroads and acquisitions that will a strategic fit to the organization and can help the company to achieve their future goals. The best on which Emami is focusing which has helped them a lot to grow are:(a)

Chasing the Long Tail – Emami has diversified so much and in a well-planned manner that it is sure that their vision of future years would lead them to the top FMCG company. Similarly in other businesses also they are growing tremendously, though facing Ia glycerine soap which could not make its presence in the market because of the brand leaders Pears and Santoor in this segment. Emami follows the long-tail theory based on three premises to achieve greater heights which are: (1) Lower cost of distribution, which is making it economically easier to sell products without precise and accurate prediction of demand; (2) The more key businesses you are into, the greater the likelihood of tapping into latent demand of every sector; (3) If enough niche tastes are aggregated, a big new market can result.

(b)

Less is More – With thousands of new products introduced each year, consumers find it even harder to navigate through store aisles. One study found that, the average shopper spents 40 seconds or more in the supermarket, compared to 25 seconds six or seven years ago.As it has been seen in Big bazar and shopping malls that when customers get a large assortment of products to select one from it, they get totally confused as which to choose and which to not. Although consumers may think greater product variety increases their likelihood of finding the right product for them, the reality is often different, as stated above. And, hence Emami goes solving this problem of customers’ choice. By keeping limited

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variants in each of their brands under the FMCG business, Emami has a different position in customers’ viewpoint.

In all, “Giving it all away” for customers, with the tag line of “Making people healthy and beautifully naturally”, Emami is going all well with better profit ratios increasing, though it came down in around 2010.

ABBREVIATIONS FMCG: Fast Moving Consumer Goods, MNC: Multi-National Companies NSE: National Stock Exchange, SBU: Strategic Business Unit FSSAI: Food Safety and Standards Authority of India BIS: Bureau of Indian Standards, EN: European Standard’s

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BIBLIOGRAPHY REFERENCE BOOKS  Philip Kotler, Marketing Management, 15th edition, published by Pearson Education Limited. WEBSITES www.emamailtd.in  www.emamirealty.com  http://www.emamiagrotech.in/  www.indiamart.com  http://www.thehindu.com (for distribution channel)  https://en.wikipedia.org/wiki/Emami  www.bigbasket.com  www.snapdeal.com  http://www.naturalcart.in/brands/emani.html  https://www.medplusmart.com/manufacturer/EMAMI (for pharmaceutical products)  http://www.emamiltd.in/about-us/13/distribution-centres.php 

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