Emami limited examination of product diversification

The Indian FMCG (FAST PACED Consumer Goods) sector is the fourth largest throughout the market with the total market size over US$ 13. 1 billion. It has a strong Global presence and is also characterized by a more developed distribution network; there can be an intense competition between the planned and unorganized sections and low functional cost. Option of raw materials, cheaper labor costs and availableness across the entire value chain provides India a good competitive benefit.

The FMCG market is expected to treble from US$ 11. 6 bn in 2003 to US$ 33. 4 bn in 2015. Penetration levels as well according to capita income and ingestion in most product categories like jams, oral care, skincare, hair clean etc. in India is quite low indicating the untapped market probable. Growing Indian society, particularly the middle class & the rural sections, presents an chance to the makers of branded products to convert consumers products to top quality products.

Growth is also expected to come from consumer upgrading in the matured product categories. With 200 million people likely to shift to prepared and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

India is one between the largest appearing markets in the world, with a human population of extra one billion. India is also one of the largest economies in the world in terms of purchasing power & has a strong middle class bottom of over 300 million. An average Indian spends about 40 % of his income on groceries and 8 per cent on personal care products. The large talk about of fast moving consumer goods (FMCG) in the total individual expenditure along with the large population base is another factor that makes India among the largest FMCG markets on the planet.

Objective

To achieve development companies choose different ways of differentiate and sustain expansion in the ever before changing market circumstance. Diversification is one of the four strategies described in the Ansoff Matrix.

The objective of this study is to review Product Diversification strategy followed by Emami. Product diversification differs as it involves expanding the marketplace probable by using existing product which is mostly done by creating brand extension or introducing new brands in the market. To have success in this plan company needs to target effectively and distinguish its product to increase both its top line and bottom line.

Emami Limited - Company profile

Emami Ltd. (EL) is the flagship company of Kolkata established Emami Group, which is engaged in the business of creation of the personal care and health care products from earlier 3 decades and has diversified in the other SBUs like real house, paper, biofuel, cement etc. A number of the major brands of the company are Good and Handsome Fairness Cream for men, Boroplus Antiseptic, Boroplus Prickly Heat Powder, Navratna Engine oil, Mentho Plus balm, Himani Fast Alleviation, Sona Chandi Chyawanprash and Amritprash, among others. The flagship company of the eponymous group, Emami focuses on consumer products in the health, beauty and personal health care sub segments. The Emami Group is one of the most significant business categories in eastern part of India, with hobbies in various business verticals.

Emami as an FMCG company that offers its products based on ayurvedic concept. The company works in the sections wherein there is minimum amount competition & hence ensuring a more substantial market share. The business mainly focuses on the products offering high margins, thus preserving a superior success. Emami has brands like Navratna Engine oil and Boroplus Antiseptic Cream that are undisputed market leaders in market in their respected categories. Even Other brands like Fair & good-looking Fairness Cream, Sona Chandi Chyawanprash, Himani Fast Alleviation, MenthoPlus Balms etc. are growing at rate better than the industry as a whole.

Emami comes with an international presence which includes 60 countries in the GCC, CIS and SAARC areas. The company's exports grew by about 60% in 2008-09, contributing 13. 6% to the very best collection. This contribution will probably expand in future. 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 nearly every nook & spot of the united states.

Emami has also collaborated with ITC Ltd. to spread its products through the e-Choupal outlets, thus promising increased rural reach. EL is likely to extend both its top lines and important thing in future by virtue of its increased market share & advanced realizations and lower interest outgo.

History and Formation of Company

The development of Emami Group took place in middle seventies when two childhood friends, Mr. R. S. Agarwal and Mr. R. S. Goenka quit their careers with the Birla Teams and they set up Kemco Chemicals an Ayurvedic medication & cosmetics manufacturing facility located in Kolkata in 1974. It had been an extremely courageous part of the early seventies when Indian FMCG industry was dominated by MNCs. But against all the odds and with a perspective of combining the traditional understanding of Ayurveda with modern processing techniques for creating glorious brands company was started out with a capital of Rs 20, 000 only.

The company started out manufacturing aesthetic products as well as Ayurvedic drugs under the brand name of Emami from a small manufacturer in Kolkata. The first-rate quality of the merchandise soon created a consumer need and little by little few individuals were hired to work. A chain of distributors was founded and the sales of Emami products come to from Western Bengal to Skillet India.

In 1978, Himani Ltd almost a 100 year old company with good brand equity in Eastern India creating a well set manufacturer in Kolkata experienced become sick unit and was up for sale Mr. Agarwal became aware the chance soon and received Himani & made a decision to produce in the Himani manufacturer different kinds of health care items based on Ayurveda.

The next flagship brand of the business Navratna Cool Engine oil came up in the ten years of nineties under the brand Himani.

In 2005 Company created a brief history in marketing in India by launching Fair and Attractive, fairness cream for men the very first time ever.

In 2006 the Emami created a Health Care Division and a number of new brands of Ayurvedic over the counter medicines.

From its beginning till today, the Emami has grown into an enormous Rs. 1000 crore Emami Ltd under the flagship company of the Rs. 3000 crore Emami Group.

Emami Sales & Distribution

Emami restructured its sales & distribution model, the consulting partner for the project is Ernst & Young and the job is named "Navodaya". Consumers were targeted in Stores and lifestyle outlets. Emami also distributes its products through rural e-Choupal through its link up with ITC; it has enhanced the business's reach to Rajasthan, Madhya Pradesh and Maharashtra. The business has also appointed 11, 000 individuals in rural areas to act as direct distributors to consumers who will make products open to rural households and will get some incentives predicated on performance.

Emami's strong occurrence is because of its strong distribution systems and key highlights are pointed out below.

Pan-India presence with 400, 000 retail outlets, nationwide syndication making products available in 2. 6 million outlets

30 warehouses and depots across country

Rural penetration through link ups with ITC, Emami mobile traders and Emami small village shops in seven states

In cities deals are done stores, kirana retailers and professional distributors

Emami also supplies to Indian Military through Defense Depots which are multiply across 18 says across country.

Emami - Rural Marketing Strategy

As an integral part of Corporate Sociable Responsibility (CSR) effort to eliminate rural poverty Emami started out two strategies - Emami Mobile Traders, Emami Small Community Shops. These plans allow the rural children an opportunity to earn lasting and regular income. To help rural people Emami has partnered with several rural agencies like Self Help Categories (SHG), Farmers Membership, District rural development skin cells, gram panchayat and Regional Rural banking institutions.

These schemes will not only allow and help rural people but also help the company to enhance its reach in rural areas, providing public benefits and making products open to rural populace. The scheme was initially launched in Cooch Behar area of West Bengal and has now been lengthened to seven expresses in India.

There are 200+ Emami small town outlets and 2000+ Emami mobile traders who conduct direct marketing of Emami products in the rural areas. These projects enable rural visitors to earn assured income of Rs 1000 on every Rs. 4000 of goods sold. Folks who are part of EMT's and ESVS are provided with monsoon and winter equipment and personal information cards by the business.

Above pointed out benefits have helped Emami boost its reach throughout the united states and deliver its products to the finish consumer regularly. Its acquisitions abroad will also help Emami to cater to International market segments.

Source: Company Investor PresentationEmami has different channels for its Urban and Rural marketplaces. Their sales route is depicted below

Emami has also launched Job Swadesh - a rural effort that focuses on rural markets that contain high rural probable. The main purpose is to increase coverage through van operations, reduce dependency on indirect syndication and wholesale distributors.

SWOT Analysis

Strengths

Weaknesses

Supply String Management: Emami products are allocated across India through the next

Super stockist network in Andhra Pradesh, Uttar Pradesh, Maharashtra, Punjab and Rajasthan.

The Company invests closely in sales and distribution IT applications systems.

Tie-up with petrol retail chains like IOC through its Kisan Seva Kendras to increase rural syndication.

Raw Materials Management: Raw materials costs managed appropriate in its overall cost composition with following initiatives

Hedging: Company strengthened their hedging coverage to mitigate the chance of volatile product prices.

Cost management: EL substituted select inputs, increasing product produce and quality.

Purchasing coverage: 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 firm built around pioneering products, features and conveniences.

Quality: Emami invests in quality standards, infrastructure, operations and materials, producing a high quality from product conceptualization to effectiveness.

Company offers FMCG products based on Ayurveda only and therefore limits its scope of product mix.

Emami focuses only on products with higher margin.

Company depends upon ITC e-Choupal to send out its product and does not have its system established.

Opportunities

Threats

The Rs 86, 000-crore Indian FMCG industry is expected to sign-up a 15% progress in 2010 2010 as compared to the previous time.

The expansion 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 firms engaged in the business of creation of personal attention and beauty maintenance systems.

Further, rural India's demand for personal maintenance systems keeps growing faster than in urban areas.

Outsourcing the produce of select products to lessen costs and give attention to branding. This will likely lead to low operational costs and higher versatility.

Industry hazard: Indian FMCG industry may fail to sustain the development, which may in turn, have an impact on the sustainability of the Company.

Counterfeit hazard: Emami's products and packaging can be copied and counterfeited.

Innovation risk: Emami might not exactly have the ability to react to the growing needs and the changing aspirations of consumers.

Quality menace: Emami's brand can be impacted by inconsistent quality resulting in lower success.

Brand menace: Emami's brand could be affected by growing competition.

Consumer threat: An inefficient source chain could lead to product unavailability and loss in market show.

Threat from mergers: A merger creates integration troubles, which, if not competently addressed, can result in a sub-optimal come back on used capital, negating the reason for which the merger was conducted.

Sales Performance

The sales performance viz-a-viz the PAT and advertising expenses is really as listed below

Source: Company Total annual Report

Also, the web Sales of Emami keeps growing at CAGR of 27% over the last 5 years as shown below

Source: Company Buyer Presentation

The high sales of Emami are justified therefore of continuous Advertising and advertising work as shown below

Source: Company Entrepreneur Presentation

Emami - Products Overview

Emami Limited companies natural and ayurvedic products in personal, cosmetic and healthcare segments and markets the same under the brand names 'Emami' (for cosmetic products) and 'Himani' (for ayurvedic products). The company has over 30 generally accepted products, such as Boroplus Antiseptic Cream, Fair and Handsome cream, Boroplus Prickly Temperature Powder, Navratna Petrol, Sona Chandi Chyawanprash, Amritprash, Himani Fast Pain relief, Menthoplus balm, etc. , and has a substantial market show in many of these products.

It has six developing facilities, all are having ISO 9001-2000 accreditations and Good Management Methods certification from the respective State Governments. The business also outsources a significant part of its products from third-party manufacturers, in order to have better closeness to various regional markets.

After the acquisition of Zandu, Emami now has the power of century old Zandu Ayurveda products like Zandu Balm, Zandu Chyawanprash, Kesri Jeeven, Panchristha, Nityam Churna, etc, which help the business in bolstering the brand image.

Zandu Pharmaceutical Works Small, a a century old company, makes an array of products, focusing on rheumatology, gynecology and CNS (Central anxious system). The company manufactures around 300 products by means of pills (tablets), churnas, ointments, syrups and rasas.

Therefore, the products overview and hence the business overview of Emami Small can be shown as below

Source: FirstSource Research

Sub-Segmentation

The sub segmentation strategy of the two major brands held by Emami Limited, Navratna and Boroplus can be shown as listed below

Source: Anand Rathi Research

In the last 18 months, the company has launched various new products. The major ones are "winter" products, such as Malai Kesar cool cream, Malai Kesar moisturizing soap, Pure-skin glycerin cleaning soap, Boroplus creams, baby-care range and various hair-care products.

Major Brands

The major brands of Emami Small with their earnings and market stocks are as listed below

Brand

Picture

Market Share (%)

Revenue CAGR FY'07 - FY'10 (%)

Key Features

Boroplus

74

15. 1

No. 1 in antiseptic creams

No MNC has created antiseptic cream

Introduced lotions and prickly heating powder

Major raw materials: boric powder, wax

Navratna

49

7. 5

No. 1 in cooling down oils

Hair petrol majors Dabur and Marico have failed to gain market share

Introduced variations: Extra Thanda and Lite. Launched Cool Talc

Major raw materials: teel oil, menthol

Zandu Balm

48

20. 8

No. 1 in the frustration balm sub-segment

Maintained command despite limited marketing work and insufficient small SKUs

Well-established in western India

Major recycleables: wax, various herbs

Fair & Handsome

56

29. 3

No. 1 in men's fairness cream segment

Strong investment in the brand with ShahRukh Khan as brand ambassador since the launch

Despite entrance of MNCs, sustains market leadership

Well-established in southern India

Source: Anand Rathi Research

Other major brands under Emami Limited are

Baby-Massage-Oil

Boroplus-Anti-Septic-Cream

Boroplus-Prickly-Heat-Powder

Fair-&-Handsome

Hair-life

Himani-Fast-Relief

Malai-Kesar-Cold-Cream

Mentho-Plus

Navratna-Cool-Talc

Navratna-Extra-Thanda

Navratna-Lite

Navratna-Oil

Sonachandi-Amritprash

Sonachandi-Chyawanprash

Brand attributes

A comparative table as shown below provides summary of the popular brands of Emami Limited

Product

Brand Promise

Major Competitors

Differentiator

Market share

Line Extension

Communication

Navratna Oil

Relief from stress and its symptoms like headaches, tension, exhaustion and insomnia

Himgange and Rahat Rooh

Unique 'feel-good' tingling and cooling down effect

50% (mkt size of over Rs. 500 cr)

Navratna Extra Thanda Petrol and Navratna Lite Oil

Amitabh Bachan & ShahRukh Khan as brand ambassadors

Boroplus Antiseptic Cream

preventive, curative and restorative healing ointment with an ayurvedic base

Boroline

medicinal as well as antiseptic benefits

73% (mkt size around Rs. 224 cr)

Boroplus Prickly Warmth Powder, Boroplus Winter Lotion and Boroplus Summer Lotion

Amitabh Bachchan and Kareena

Kapoor thought as brand ambassadors

Fair & Handsome

fairness cream personalized for men's skin

Nivea Whitening, Menz Dynamic, Rational One Man and Garnier Men

Contains

five unique power that improve fairness in just

four weeks

63% (mkt size of Rs. 1, 500-cr)

-

ShahRukh Khan as brand ambassador

Navratna Cool Talc

counters warmth and humidity

through its chilling property

Pond's and DermiCool

Unique 'cooling' benefit

10% (mkt size of Rs. 240-cr)

Navratna Cool Talc - Effective Deo and Navratna Cool Talc - 24hour Fresh

ShahRukh Khan as brand ambassador

Sona Chandi Chyawanprash

Builds immunity, strengthens body, sharpens mind

Dabur and Baidyanath

strengthened by gold and silver

15% (mkt size of Rs. 210-cr)

Sona Chandi Kesar Chyawanprash, Zandu

Chyawanprash and Zandu Kesari Jivan

ShahRukh Khan as brand ambassador

Zandu Balm

Effective headache reliever, effective solution for cough, cold, fatigue, backache, sprain and muscular pain

Amrutanjan balm, Tiger balm and

Monison's balm

Natural substances like Gaultheria ka Tel and Menthol

46%

-

Sachin, Harbhajan and Zaheer Khan as brand ambassadors

Himani Fast Relief

instant comfort against muscular,

joint, arthritic and shoulder pain

Moov, Iodex and Volini

comprises ten active ingredients, a lot more than rivalling products

13% (mkt size Rs. 1000 cr)

-

Amitabh Bachan as brand ambassador

Emami Healthy & Fair

naturally derived

ingredients for babies

Johnson & Johnson

ayurvedic character of

the product

-NA-

Emami Healthy & Rational Herbal Baby Rub Oil,

Emami Healthy & Fair Herbal Baby Cleaning soap and

Emami Healthy & Good Organic Baby Powder

Madhuri Dixit as brand ambassador

Emami Malai Kesar Freezing Cream

non-greasy frigid cream

with the '5 Vitality Winter Formula'

Pond's and Ayur

contains the goodness of malai

-NA-

-NA-

TV and local advertising

Source: Adopted from Company Total annual Report

New Launches

Emami Pure Epidermis Glycerine Bar

The product was test sold with the support of Tv set advertising and below-the-line activities. The brand is targeted at younger consumers, offering three spectacular variants (Swiss apple and almonds, olive and aloe vera, turmeric and saffron) and anew trendy condition. The 'Do the Gliss' campaign communicated contemporariness. Obtainable in 75 gm pubs, it will set you back par with Pears and is also well received

Emami Vasocare Petroleum Jelly

The product premiered with nationwide and regional Television set channels. The distinctive natural inexperienced color of the product, designed with aloe vera, chamomile and tulsi, differentiates it from other brands. It is five times far better in healing, and the nice fragrance enhances use experience. The brand comes in 10 gm and 25 gm SKUs.

Strategy for SERVICES and new markets

The business strategy of Emami to operate a vehicle revenue and world wide web profit can be discussed with the diagram below

Source: Company Buyer PresentationEmami has constantly centered on providing innovative products which are capable of achieving desired needs. The primary strategy lies on the ground of enhancing quality of day-to-day life giving quality abundant products. Emami group has a Himani Ayurveda Technology Basis (HASF) which is dedicated to complex research and product development and has led to the generation best of the ayurvedic formulations. Emami's quality products are not only present across pan India but also within the pan locations of 60 countries. To create its presence into the OTC drugs Emami strategically purchased Zandu Pharmaceuticals and added products into its categories such as Zandu Balm, Zandu Kesari Jeevan, etc. This tactical acquisition of Zandu has helped loan consolidation of FMCG business and addition of power packs of products into its basket. Emami has setup a healthcare division to build up a group of products under OTC category ranging from laxatives to frosty and cough. Emami is also likely to enter into the market of ready to eat products and breakfast time cereals that it has strategically roped in pros from company such as Britannia.

Emami makes an enormous investment in brand endorsement; it is the only corporate which includes both leading stardom for its brand endorsements viz. Amitabh Bachchan and Shah Rukh Khan for the brand Navratna Engine oil. Exploitation of concept of brand endorsement by superstars and selection of right movie star for brand launch has worked efficiently. Besides leading male stardoms from bollywood other endorser's of Emami include Madhuri Dixit, Kareena Kapoor, Preity Zinta, Virender Sehwag, Sachin Tendulkar, Surya, Mahesh Babu, Dinesh Karthik, Harbhajan Singh, Zaheer Khan, Govinda, MS Dhoni, Amit Mishra, Sourav Ganguly, Chiranjeevi, Surya and Upendra.

Merger and Acquisitions

Emami - Zandu Deal

Zandu is a century old pharmaceutical company making a variety of ayurvedic products. Popular products from Zandu stable are Zandu Balm, Zandu Chyawanprash, and Zandu Kesari Jivan etc.

The Ayurvedic section in India is vast and growing quickly. Emami's acquisition of Zandu was tactical fit since the company's product experienced ayurvedic emphasis and Zandu was market innovator in ayurvedic section across western and southern India. In this particular offer Zandu's real estate was merged with Emami's group company Emami Infrastructure Ltd and consolidation of the FMCG business. Consolidation of the FMCG business will ensure operational synergies like business, cost & margins, research & development. It will also assist in effective utilization of the creation facilities, sales & circulation channels of both companies, which will help in widening the reach of the business.

Acquisition of Zandu increased Emami's portfolio of products and created a varied product range across different product categories. Categories now Emami and Zandu serve are brought up below.

Toiletries

Skin Care

Oral Care

Hair Care

OTC Products

Ayurvedic Medicines

Ayurvedic Products

Cosmetics

After the acquisition of Zandu, Emami has undergone a whole lot of restructuring. Below stated is the figure that depicts the restructuring exercise carried out by Emami group.

Source: Outlook Profit, National Model, Dated: 30/10/2009

Apart from domestic acquisitions Emami is also eyeing for assets overseas where it can setup manufacturing basic and cater to international marketplaces. Countries that Emami is targeting under its development plan are United States of America, UK, CIS (countries part of previous Soviet Union). Emami happens to be present in around 60 countries, which collectively contribute around 15-16 % of the revenues. Emami plans to take this physique to more than 50 percent.

Emami acquisition of Lakshmi Bilas Locks Oil

Emami aims to be always a Rs. 5000 crore company by 2013 from Rs. 2500 crore currently. To do this company has appointed experts who will help Emami identify potential companies that will assist Emami achieve the desired target. To attain its goal company has arranged its concentrate on skin care and hair care and attention. In line with this plan company has attained Lakshmi Bilas Wild hair engine oil brand a One Hundred season old brand based in Calcutta from M. L. Bose. This deal has helped Emami develop its stock portfolio to personal treatment range. Emami says it will be easy for the company to revive the brand since it has been in existence for many years and it is straightforward to regenerate the brand that were already there rather than creating new brands. Emami says it blueprints to obtain smaller brands that fit the entire strategy of the business.

Emami will buy Egyptian creation unit

Emami is bought out manufacturing unit in Egypt and plans to manufacture most of its brand. This manufacturing facility will help distribute its product in Africa and Midsection East countries. This deal is not really a brand dominate but an organization takeover. Acquisition of the Egyptian company makes a great deal of business sense since Africa contributes to 33 percent of the international profits and gulf countries add around 30 percent and CIS countries contribute approximately about 18-19 percent.

Emami acquires M Bhattacharyya & Co Private

Emami a FMCG company made its entrance in homeopathy segment by acquiring M Bhattacharyya one of the oldest homeopathy companies. M Bhattacharyya is principally known in metropolis and its electric outlet is always jam-packed to its capacity. Emami blueprints to consider this brand outside city and also internationally. They plan to give this traditional practice today's touch by establishing a modern stock so that effectiveness, purity and quality is taken care of at highest levels which is of international standard. They are also tying up with French and German homeopathy businesses for technical collaboration and establishing green field jobs. The primary idea is to be amongst top five homeopathy players in the world.

Summary of acquisitions by Emami and their potential benefits

Acquisition

Potential Benefits

Emami - Zandu Deal

Strong R&D, Brand Collateral, Distribution Network, Diversifying product range into Health care

Lakshmi Bilas Mane Oil

Access to new market - Bangladesh where this brand experienced presence, Little effort to revive the brand, Increase in Personal Health care(Hair Care) Portfolio

Egyptian acquisition

Easy access to Africa and Midsection East, New Markets

Emami - M Bhattacharya

Entry into homeopathy segment

Key Success Factors of Emami

Emami Group has near 30 brands in its profile. The business has blockbuster brand such as Fair and Handsome, Boroplus, Navratna olive oil, etc. gives a turnover of over Rs 500 crore and classify them as Power Brands, others brands such as Malai Kesar, Sona Chandi Chyawanprash etc. each plays a part in Emami in a variety of Rs. 18 to 22 crores are the other brands.

The vitality brands has been growing at CAGR of 25-30% during the last few years because of its innovative marketing and advertising initiatives. Emami's initiatives to penetrate deeper in to the Indian market has used techniques apart from direct marketing through initiatives such as in-shop deals and door-to-door, BTL activities at key locations, Out of home advertising on teach, schools and colleges. This all was recognized by substantial marketing with usage of regional newspaper publishers and digital platforms.

Emami's spend in the advertising and marketing efforts are relatively greater than that of competition. Superstar endorsement is the key marketing effort of the business and it did wonders for the company. The advertising spends about 17-18%; however EBITDA is near 24-25 %. The inventories are managed well and have been production is performed at tax-free locations and so creating a clear control on suggestions costs and keep maintaining EBITDA margins at lasting levels. The business has market talk about in the category in the balms and natural oils as compared to other brands or local players. Zandu Balm makes up about a market show of about 65-67 % and Navratna engine oil makes up about a show of 70-73 %.

The success of Emami is directly attributed to the promise that brand delivers. Below the series activities such as In-film branding, campaign in Television set Serials and Mela's are some of the techniques which brand has implemented for creation of its occurrence. This old form of rural play has made brand to attain the places which no other press like via radio or television could provide. It's only few villages who've cinemas many of them don't have cinemas because almost all of the time these villages have a electric power cut. In such a situation Jatra is best source to advertise the product because each Jatra promises an audience of at least 6, 000. The business came to the realization this opportunity and has already reached to maximum of its customers. The company is has regularly delivered whatever it includes promised.

Sales and distribution

Introduction of a super stockiest network making it possible to reach hitherto inaccessible marketplaces, in that way widening reach

Initiation of any job called Navodaya with Ernst & Young to revisit all sales and distribution

IT applications systems to monitor sales and distribution

Availability of Emami goods at Indian military depots

Participation in mela's

Wholesale loyalty program for key wholesalers across major places to improve trade relationship

Raw materials management

The Company :-

Imports LLP, micro crystal polish, stearic acid, methyl salicylate and hard paraffin;

Hedged commodities like sugar, menthe (menthol), silver and silver

Introduced a bio-fuel for development, a fiscal saving

The Company procured recycleables from distributors in non-excisable area

Engagement in plantation forestry to meet raw material requirements

Operational excellence

Automated the processes like filling, capping, labeling and cartooning

More than 80% of the production was derived from tax-exempt areas.

Outsourcing produce of select products to reduce costs and give attention to branding.

monitored all incoming raw materials, which were accepted only after sampling and compliance with established specifications

Information technology

SAP ECC 5. 0 implementation task Udaan was ranked among the most notable 10 innovative studies by IBM

High-speed LAN and WAN communication systems

Integration of SAP ECC 5. 0 with club rules or Radio Frequency Identification (RFID)

Research and development

Continuous research-led development because of its philosophy, people, purpose, prospects and R& D Infrastructure

Corporate sociable responsibility

Recycling of used drinking water through distillation plant

Installation of distress and sound absorbers to reduce noise air pollution to minimal decibel level

Self employment plans for the unemployed rural youth

Emami Mobile Stock traders system- door-to-door selling of Emami products in interior villages

Sponsored subsidized treatment for the needy in hospitals like AMRI Hospitals limited and Shree Vishudhanand Medical center and Research Institute of Kolkata

Promoting one-teacher schools with the help of NGOs.

Failed Products of Emami

Emami given birth to in Bengal now has a skillet India presence because of its series and list of brands. Since its inception in 1974, the group has business passions in FMCG, real estate, real estate, newspaper and news printing, cement, coal, electricity and cultivation, retail and contemporary art. Emami's strength is based on its abundant value system, dedicated 20, 000 excited towards brand advancement and knowledge showing.

Emami has seen the success but it has seen failures during its development stage. Emami has launched a glycerine soap that could not make its occurrence in the market as a result of brand leaders Pears and Santoor in this segment.

Emami has a brand called as 'Beauty secrets by Madhuri' comprising of makeup and personal care products did not prosper in spite of having a big star. The brand got back fired as Madhuri decided to get wedded and move overseas. Now, Emami is wanting to diversify into various business of FMCG and increasing its profile to create a more powerful brand.

Emami's International Business

Source: Company Buyer ReportAs per Director Agarwal, localization of the merchandise according to the desired need of the spot is the key factor for international business. Emami has presence practically in 60 countries in CIS, European countries, North America; Midsection East, and Indian subcontinent offering skincare, Locks care, personal attention and Ayurvedic medical care products. The International business plays a part in top line growth rate more than 40%, where Africa is the major contributor with almost 33% share accompanied by Gulf countries contributing 33% show, while Indian subcontinent and CIs countries contribute 18-19% each. Emami Internationally market its product under four brands specifically- Emami, Himani, Ayurcare and Emita catering to the categorical needs such as skincare, personal health care, haircare and health care. The products under brand Emita is targeted towards masses in growing countries and products in Ayurcare range are directed at premium market and highly evolved markets.

Source: Company Investor Report

Growth from international business for financial time 2010 is given below

Emami has a variety of over 40 products made from herbs, natural ingredients and essential natural oils. Emami is has started out subsidiary procedures in Bangladesh. Its holistic strategy comprises progressive branding clubbed with extreme sales advertising (ATL and BTL activities). This approach has helped to expand market talk about in northern and eastern parts of Africa. Emami also packages to introduce collection extensions for some of its major brands - Good & Handsome, Boroplus, Navratna, Effortlessly Fair and Himani Fast Relief to penetrate markets and drive international development.

Conclusion

The Indian local markets have grown to be very competitive numerous international brands and products making inroads into the market. In that competitive circumstance, Emami Ltd has the advantage of offering a diverse country like India, with their diverse product range, wherein consumers belonging to different regions display different buying actions. This experience should help Emami to focus on growing countries like Africa, south-east Asia, Latin America. Emami has identified the need to increase to international market segments and is also making inroads and acquisitions that will a strategic fit to the business and can help the business to accomplish their future goals.

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