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Faculty: Ishrat Jahan Synthia (IJS)

Course: Mkt344

Section: 05

‘Parachute Advansed Coconut Hair Oil’

Date of submission: 18thDecember, 2018

Labiba Hasan 1712106030


Syed Tazwar Hussain 1631362630
Sheikh Era Tobaishi 1512943030
Md. Kowshik Ahmed 1531528030
Khaldun Shahran 1620592030

ACKNOWLEDGEMENT

First of all, we would like to thank Almighty Allah for guiding me through this report.
We would like to convey my sincere and deepest gratitude to Ishrat Jahan Synthia Miss for
helping us, advising us and guiding us at every step in this term paper.

I would like to thank my group mates for cooperating with me and helping me throughout the
entire term paper.
Letter of Transmittal

Date:18th December, 2018

Israt Jahan Synthia

Lecturer, Department of Marketing & International Business

School of Business & Economics (SBE)

North South University Plot#15, Block #B Bashundhara,

Dhaka – 1229, Bangladesh.

Subject: Submission of the term paper.

Dear Ma’am,

With all due respect, we would like to submit our Marketing-344 final term paper on the brand
‘Parachute Hair Oil’ which is due on December 18th, 2018. We put all our heart and soul while
preparing this report and it would be of great help to us in the future in the practical world.

Hope all our hard work not go in vain and we covered up all the requirements you look forward
to in a good report. If you have any queries regarding any part of the report, please do ask us. All
in all, thank you for all your support throughout this course and we look forward to doing more
courses with you again.

Sincerely,

Labiba Hasan

MD. Kowshik Ahmed

Tazwar Hussain

Sheikh Era Tobaishi

Khaidun Sharan

Mahtub Jamil Chowdhury


Executive Summary

In this report it is largely explained about Parachute Advanced Hair oil, about how their product
is segmented, targeted and positioned to meet maximum consumers. The report also states about
the marketing mix’s 4P’s. The Product, the Price of the product, the Place where the product is
launched and the entire Promotional process that parachute went through. The report explains
about the brand personality of Parachute and also the current Integrated Marketing
Communication of parachute through advertising and tag lines such as “Gorgeous Sharadin” to
promotion online to sales promotions. The report also explains about the Strengths, Weaknesses,
Opportunities and Threats. Then there is a competitive analysis between other competitors like,
Jui, Emami, Dabur Vatika. The report also covers the campaign theme where it explains about
the different Ideas, Media Strategies and Campaign on universities. Finally this report Concludes
that parachute is one of the market leaders of Bangladesh in Hair oil and Parachute is covering
more then 82% of the total market share available.
Introduction

The history of Marico traded the way back 1857. He was young man Kanji Mooraji he also set
up a new export worthy commodities. The Bombay oil Industries in 1948 set up a new traditional
concept valued added manufactured products.

Bombay oil was involved in copra trading moreover crushing and refining of vegetable oil. The
company established branded vegetable oil. In 1983 Bombay oil operation to create three
businesses a customers products. Those are fatty acids and chemical division, an oleoresins a
spice extracts divisions. In April 1990 the consumer products division became Marico.

Today parachute is premium oil. Synonymous with pure coconut oil in market industry. The
positioned parachute is vital nourishment today. Parachute oil switch from coconut oil solid in
tins to plastic. The tins container was also very popular in that time. It is also availed in pouch
packs services the rural sectors. The standard of purity to that of charity to the “Coconut Dream”
logo is a great opportunity to transform parachute the largest coconut oil brand. Several value
adds the “ Coconut Goodness” umbrella. Parachute hair oil maintained the ‘purity’ and ‘quality’
made fro the good quality coconut in automated machines. Years and years they leads the
branded coconut oil market industry.
SEGMENTATION

Market segmentation is a process of dividing a product’s potential customer into several groups
or segments. Parachute hair oil is a frequently used product for thousands of millions of people
around the world. So it is obvious for them to segment their market into several groups and target
them wisely to maximize profit.

Geographic
Marico’s Parachute targets mass consumers from all over Bangladesh. In addition to the beauty
conscious people of the city, rural area women have also started to take care of their hair and
parachute plans to take this advantage and capture the market all over Bangladesh. Parachute
also segments their product based on different country like Saudi Arabia, India, Bangladesh,
Gulf countries, south east Asia, Egypt, UAE, etc.

Demographic
Parachute has targeted to choose women from the middle-aged group but in the recent times they
have also seemed interested in the age group of 10 to 60 years. Parachute does not want to focus
on the higher class or the lower class; rather they choose to make the product for all income
source earners. Parachute hair oil like 200 ml is for 120 TK, 350 ml is for 200 TK, 500 ml is for
280 TK.

Physiographic
Lately Parachute hair oil gave emphasis on lifestyle like they added different attributes based in
different customer’s needs. Some people want extra care for their hair because they might be
work out side or most of the time the remain busy, they get so less time to take care of their hair
that’s why parachute produce Parachute Therapy hair oil for extra care. Some people have
problem of hair falling and they want oil which will reduce their hair fall and make their hair
thick in that case parachute recommending parachute advance. Parachute hair oil is very old in
the market and they understand people needs batter.
TARGETING

No matter what type of hair one has like curly, straight, long, short, blond whatever it is
everybody want healthy hair. People want trust worthy product which will help their hair to grow
healthy. Hair is one of the most important part of female’s beauty and identity. Since people
desired for long and healthy hair and were willing to pay higher for best quality product, there
was an unmet demand and parachute brand took that opportunity to dominate the market. From
2000 parachute began its journey in Bangladesh. Prior 2009 Parachute hair oil operated with one
brand “Parachute coconut hair oil” in Bangladesh. It’s a female based product, back then they
targeted female of all age. They followed “undifferentiated /mass marketing” strategy. They
used to go for all female in a particular geographic area like Bangladesh.

After 2009 they enlarged their brand line with adding different types of variety in turn of
different types of customer’s demand. Parachute divided their target market into different types
of customer based on different needs, lifestyle, and demography. They started to follow
“differentiated marketing”. Now a day they produce oil specially for children age 3 to 10
(Parachute Starz). They produce (Parachute Advanced) for adult women, (Parachute Advanced
Jasmine) for people who love fragrance, (parachute therapy) for the people who want extra care
for their hair fall etc.

POSITIONING

Parachute has positioned themselves by “quality and attributes”. From the very beginning of
their journey they continuously try to prove them as 100% natural coconut oil brand, which
offers nutrients to customer’s hair. They claim that their product has different types of attributes
which is very essential for healthy, long, and shiny hair. Parachute is a very old hair oil brand in
Bangladesh that’s why they were able to place them as a trust worthy hair oil brand in the mind
of their customer.
Marketing Mix

Product

Parachute is premium edible grade coconut oil, it is currently the leading hair manufacturing
brand recommended all over Bangladesh and India. Synonymous with pure coconut oil in the
market & is positioned on the platform for its purity. Parachute enjoys massive support and
loyalty from its from the passing generations of the rural and urban sectors, all over Bangladesh.

Parachute Advanced:

Parachute hair oil contains essential elements of ylang-ylang to give it a deep and strong
fragrance. Ylang ylang oils penetrate deep into the hair roots and leave your hair looking healthy
and lustrous. It is for the all-aware Bangladeshi women who are well aware of the benefits of
using hair oil and how parachute helps maintain the strength of their hair. Parachute Advanced
hair oil is lighter then other coconut hair oil and with regular use of Parachute Advanced the
strength of the hair can increase up to 16%.

Price

The pricing is mostly affected by the following factors:

 Copra and oil seed: the cost of purchasing copra and oil seeds from different rural areas
in bangladesh and india’s kerela.
 Packaging costs: Most of parachutes promotion is passed on its bright blue bottled
packaging, and which varies from variety sizes.
 Competitors: Competitors pricing is also a very important factor in the market, parachute
cannot just charge a high price and expect to sale. Competitors such as Jui, Dabur Vatika,
Emami’s prices have to also be kept into mind, if they offer a sale, parachute has to as
well.
Pricing Methods: Parachute usually runs in two specific pricing methods only, the competitive
pricing method and the other is promotional pricing which is the “extra 20%” meaning within the
same price, its loyal customers can now get 20% extra in quantity.

Pricing Strategy: Parachute chooses to follow a Economy/ Value pricing where, the main focus
is to set a price that is well economy and can be purchased by all.

Product Price

Parachute Advanced 200ml 120 taka

Parachute Advanced 350ml 200 taka

Parachute Advanced 500ml 280 taka

*All Prices are as on the date 16th December 2018

Place

Marico has over 2000 Distributers all over Bangladesh for parachute; they have their main head
office in The Glass House, Gulshan Avenue. Marico distributes Parachute Advanced hair oil all
over Bangladesh, and has gone to remote rural areas where yet electricity is to be discovered but
Marico has managed to take the “every ones” hair oil there.

 Channels-
 Distributors- Retailers- Consumers
 Retailers include- Small stores, Super Markets, Medical stores, Etc
 Coverage
 All over Bangladesh
 Urban
 Semi Urban areas
 Rural
 Remote areas
Distribution Chain:

Promotions

Marico has a very precise promotional mechanism for parachute. They want to maintain a valued
pricing policy for parachute, and make their consumers feel that they are purchasing a very
valued hair oil, at the same time they also want it to be available for all and for every class of
people, thus when ever Parachute has to go into a promotional campaign they usually choose to
either go for a 20% extra or discounted amount.
Other then that there is one more thing that helps with Parachute Advances Promotion, the blue
color and the coconut tree that represents the fresh and 100% purity of the coconut oil. The
coconut leaf, and the blue bottle has evolved over the year and thus its users have become used
to the blue and green combination, this combo means Parachute.
Brand Personality

Consumers can connect on a different level with a brand by associating traits with that particular
brand. Brand personality helps buyers relate more with a brand. Parachute hair oil developed a
personality that a huge consumer number can relate to thus it successfully positioned its image in
the minds of the consumers by the two following traits.

1. Competence- In most of the advertisements of parachute hair oil, it portrays that the use
of the hair oil has positive results as it nourishes the hair and strengthens the hair growth.
Therefore, it is reliable. Its advertisements also conveyed that people who used the hair
oil are more confident at what they do therefore the use of the hair oil has led to people
being successful.
2. Sincerity- Parachute hair oil also portrays the feeling of wholesomeness due to the
application of the hair oil and its desired results on hair growth has helped it to be
labelled as honest. The advertisements usually shows that people are happier after the
application of the product when rough hair transforms into smooth, silky and nourished
hair.
Current IMCs of Parachute Hair Oil

IMC stands for Integrated Marketing Communications are the approaches to achieving the
objectives of a marketing campaign, through well-coordinated use of different promotional
methods that are intended to reinforce each other. There are seven basic tools of IMC but several
sub-tools which are now growing up for their versatility and creativity. Parachute hair oil focuses
on the following IMC tools to increase its sales and create a positive brand image. Parachute hair
oil focuses on the following IMC tools.

1. Advertising
This advertisement was uploaded on June 13, 2013 on the official YouTube channel. The
theme of this ad ‘Gorgeous Sharadin’. It conveys the message that whatever situation the
girl is in, with the application of the hair oil, she looks gorgeous the entire day.
Throughout the advertisement it shows that she gets a lot of attention from other people
and is loved by others as well.
Complaint personality is one of the segmentation of CAD theory. People who have
complaint personality tend to be loved and appreciated by people surrounding them or
want to be loved and appreciated by other people. This advertisement ‘Gorgeous
sharadin’ appeals to people of compliant personality.

https://www.youtube.com/watch?v=5OTOC0BUn5Q
2. Personal Selling and Social Media Marketing
The official facebook page of Parachute Bangladesh is constantly uploading videos and
posting about the pros of using the parachute hair oil. They are continuously interacting
with their consumers by providing them insights and answering to any queries regarding
the hair oil. A sales representative is continuously replying to the queries of the
consumers and then selling the product to them afterwards. Therefore, the social media
platform not only helps to create brand image but also helps the employees to personally
sell the products as well.

3. Sales Promotion-
Parachute hair oil gives short term incentives to boost the sales of their products. They
have loyalty programs where after gaining certain points after purchase, consumers can
get free hair brush or 100ml of hair oil. At the booths of the malls, they provide 5%
discount for on-spot purchase.
SWOT Analysis
Strengths

1. Parachute tops in the hair care category with a market share of 82% and it has
gained a huge amount of customer loyalty in both rural and urban areas of
Bangladesh.
2. The ‘weight test’ in its packaging proves that pure coconut oil is far better than
impure or mixed oil.
3. The promotion and advertisements on television and other medias helped it
create brand recognition.
4. Successful positioning has led the product being used by people from all walks
of life.
5. A strong distribution network has led the product being readily available in
almost every supermarkets and grocery stores.
6. Leading actresses who are the brand ambassadors helped connect the product
with the general public in an emotional level.

Weaknesses

1. Parachute being a renowned brand is only restricted on hair oil and not any
other hair care products like shampoos or conditioners
2. Parachute lacks seasonal products in Bangladesh. Despite having a lot of
varieties of hair oils, it does not have any hair oil that is season specific. Its
products are generalized for all seasons.
3. People position parachute as coconut hair oil only.
Opportunities

1. Parachute can go for brand extension and bring out new products like
shampoos, conditioners and hair creams.
2. It can go for line extension as well and bring out hair oils of different
ingredients like badam, amla and mustard.
3. Besides hair oils, it can also bring out skin care products for all skin types.

Threats

1. High competition in the marketplace, both with the direct and indirect
competitors. For example Jui hair oil is more affordable than parachute hair
oil. Garnier Fructis fortifying shampoo+oil 2 in 1 eliminates the hassle of
separate applications of oil and shampoo.
Competitor Analysis

Competition is one of the main factors that cause companies to strive to do better. However,
competition in the marketplace soon transforms into threat if it is not given much emphasis.
Although Parachute Advanced Coconut Hair Oil has the largest market share, it faces a lot of
competition in the marketplace. It competes with both its direct and indirect competitors to
maintain its position and market share.

Direct competitors

1. Jui (by Square)- it was once the market leader before Parachute Hair Oil. The cost of
100ml bottle is 85tk only. Since Jui hair oil is established by Square it has a good
distribution of network. The TVC and print media advertisements have led to a good
brand visibility. It is popular in both rural and urban areas due to its affordable price.
Apart from its affordability, healthy black and shiny hair is its unique selling point.
Besides its strengths, it has a lot of weaknesses as well. Unlike other hair oils, Jui hair oil
does not have any variety and it does not have products for men as well. Its only product
is its coconut hair oil. Its poor marketing strategies have led to ineffective
communication. The packaging is not very attractive either. Jui currently owns
approximately 2% of Bangladesh’s current market share.

2. Emami- the quality of the hair oil is really good. Its attractive packaging helped it boost
its sales. It has a lot of diversified products which includes Navaratna oil, Almond cool
oil and Kesh King. The hair oil comes in 100ml and costs 105tk. only. It has products for
men as well. However, due to strategic issues, sales of Emami hair oil has drastically
decreased in the year 2017-18. Another reason that contributed in the decline of sales was
its advertisements that appeared less frequently compared to its competitors. Besides its
strengths and weaknesses, all healthy ingredients in one bottle is its unique selling point.
Emami currently owns approximately 5% of Bangladesh’s current market share.

3. Dabur Vatika Hair Oil- it is a bit more expensive compared to other competitors but the
quantity is more as well. The product price is 300ml bottle for 250tk. only. It has a
market share of 17%. It uses the strong distribution channel of ACI Limited. It also has a
lot of diversified products such as Amla hair oil, Almond hair oil and Enriched hair oil.
Its advertisements in Indian channel has not only boosted the sales in India but in
Bangladesh as well. Dabur Vatika hair oil has a few weaknesses as well. It has limited
differentiation amongst hair oils. Since it uses natural elements in its hair oil, this concept
is not very popular in Bangladesh. But the use of completely natural elements is its
unique selling point. Dabur Vatika currently owns approximately 3% of Bangladesh’s
current market share.
Indirect competitors

1. Garnier Fructis Shampoo+Oil 2 in 1- The parent company of Garnier Fructis is Loreal.


The price of 250ml bottle is 350tk only. Unlike any other brands, it has a strong research
and development capability. It has a lot of variants for different hair types. It has an
excellent distribution network. Due to its heavy advertising and marketing, it is a very
popular brand. However, it has higher price compared to other brands and due to its late
entry, it has lesser market share. Elimination of the need to two separate hair care routine
and long and strong hair is its unique selling point.

2. Dove Nourishing Oil Care Shampoo- it has international brand recognition and its parent
company is HUL (unilever). It is very popular in its therapy for hair. They engage
customers on an emotional level with their advertisements as portray women
empowerment and use regular women rather than celebrities. However, there is no
consistency in their product message. The concept of leave on oil care shampoo is not yet
that popular in Bangladesh. Also, the higher price of the product contributes to its
weakness. Deep nourishment of hair from root to tips is its unique selling point.
Campaign Theme
“ ঘঘ ঘঘঘ ঘঘঘঘ ঘঘঘঘঘ শশশশ ঘঘঘঘঘঘ ঘঘঘঘ ” – This is the tagline for our IMC
campaign which translates to ‘You can rely on us for a strong and thick hair’. We wanted to
communicate a straight and simple message to our consumers keeping in mind what Parachute
has been providing for years and how they are more reliable than any other hair oil producers to
provide their promise of a healthy hair.

Idea
The idea of this campaign is to remind people that Parachute is indeed the best hair oil in the
market that can be trusted as well. It resonates with the idea that Parachute has been satisfying its
consumers for a long time being the market leader of this industry and they are now promising a
strong healthy and thick hair which can only be assured by a trustworthy brand like Parachute.
The market has several new entrants with different promises and this campaign will help
reestablish Parachute as the best brand and will help in fighting competitors. This will not only
increase the existing brand value of the company but will also have a positive impact in the sales
revenue, both of which are helpful for the future of the business. For the campaign to be
successful, we have decided to do a television commercial, Event activation and Social Media
advertising.

Media Strategy
1. Advertising on Television and Pop-up ads at YouTube
The main aim of this Above the Line marketing is to let the public become aware of the
campaign and remind them about the trustworthiness of Parachute. Our main focus will
be to highlight the hair fall problem which most of the people suffer from nowadays
making it easier for them to relate. Since our campaign will take place inside
universities, our advertisement will first show a university going girl who suffers from
hair fall problems has low confidence in herself because of hair fall and is mocked by her
peers. After the application of parachute hair oil, her hair will be stronger and better than
before which will give her confidence and she will be loved and appreciated by others.
This type of advertisement is projected to appeal the people of compliant personality and
people who score low on dogmatic scale.
This advertisement will stream in television as well as in the middle of YouTube videos
as pop-up advertisement.

2. Social Media (Facebook)


This medium immensely helps in gaining popularity from the younger age segment of
our consumer base. We will heavily boost pictures, hairstyle advice and other contents
from our page to be in constant touch with our consumers. We have also planned to
organize contests from our official Facebook page asking the contestants to upload a
picture of them with a unique hairstyle and give a caption about how parachute hair oil
has influenced their daily life. The first three contestants with the most number of likes
will win a gift hamper from parachute.

Campaign at universities
Universities are important places for our target market as young women tend to be more
concerned about the healthiness of their hair. Thus, we will organize campaigns at different
universities like North South University, Brac University, IUB, and AIUB where at the center of
the university we will place a biased mirror that can change the hair texture of their image. When
students will pass by the mirror, it will show a reflection of them with rough hair. Then we will
have our representative handing them our leaflet which will have a free sachet attached to it. Just
after taking the sachet, another biased mirror will be placed which will again show a reflection of
them but this time with stronger, better and nourished hair. Through this, we want to remind
them the importance of hair care in their daily hectic life and how Parachute is helping them to
have a thick, strong and healthy hair.

We will also have booths at the universities and offer a 5% discount for on-spot purchase.

Conclusion

Parachute brand has been an ideal study to learn how the basics of marketing are applied in real
life. Parachute has been the market leader for more than a decade now and it is because of their
effective marketing strategies with proper segmentation, targeting and positioning that aided
them in restraining their competitors and hold that position. However, there are still various
limitations of the organization where they can improve and other opportunities that can be
exploited in order to perform even better.
Reference

https://www.scribd.com/doc/139196157/Parachute-Hair-Oil
https://www.marketing91.com/swot-parachute/
http://m.marico.com/bangladesh/brands/parachute-coconut-oil
https://www.parachuteadvansed.com/complete-care/coconut-hair-oil