Holistic Marketing

Holistic marketing helps all the pillars of the marketing strategy standing together and most importantly keeps the business going right. Marketing strategies have been evolving over time and today various channels are used to target the diverse audience, therefore it is important that there is no conflict between the content or the channels. Marketing holistically enables marketer to consider and include all perspectives. A successful marketing requires efficient relationship marketing, internal marketing, integrated, performance marketing and marketing. There has to be reason and substance in everything when marketing is considered.

HOLISTIC MARKETING AT PARACHUTE  

Products

People  in India generally believe that the health of the hair, nails and skin indicates the health of the person. Following this idea Parachute has come with many brand variants where each of them deal with a new value-add, be it a shift from non- sticky fragrant oils to diagnostic or ayurvedic variant or more of such kind. Parachute has always tried to maintain a holistic approach towards hair care products.

    

Management

The management of Marico is driven by people with a vision. this vision is not only goal oriented but the management also works with passion and pass on the same culture and feeling to all management levels. A holistic management is a pro active approach. It effectively communicates and responds quickly to any changes. Marico has such a holistic management and hence has been able to retain the brand ans title of market leader in coconut hair oil over years.  

Communication

Parachute has expanded its customer base across regions, penetrating equally in urban as well as rural areas, hence it has modified its communication methods with audience over years . Though central theme of purity and quality remained same, more connotations got added to it over time. Also in recent years parachute has started with digital marketing with changes in times. It has seen diversification in distribution channels and content both over the years.

Analyzing Business Markets

B2B Vs B2C Marketing:

Well defined strategies and tactics, well aligned marketing and excellent customer services are required in both B2B and B2C. B2C sales are often emotional, low priced on an average and the first point of contact is right before sales. B2B sales on the other hand are rather rational, expensive and are usually long term relationship based.

Parachute hair oil involves a B2C sales strategy. Customer buys the product at a lower price from the market at retail store.The first point of contact between the customer and the product occurs at the store where the purchase is being made. Such a purchase is more society and culturally influenced. It is more lifestyle based and depends on the likes and dislikes of the customer.

Branding

Branding is defined as a “name, sign, term, design or symbol, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers” by The American Marketing Association (AMA). It essentially means how the product is effectively communicated to customers such that they identify the brand . Branding is more than just a tagline and  logo. It implies to consistently driven attention grasping strategy.

To create awareness, Parachute  has employed various means of  advertisement in print, radio, TV and digital.Parachute as a brand has maintained its position as a market leader and a quality deliverer. It has always assured its customers of quality deliverance with promise of healthy nourishing long hair.
Parachute projects itself as being a ‘pure coconut oil’. So far parachute has never been involved in any defamation case regarding product hence maintains a credibility envious to others. It is non- sticky, affordable and available in difference fragrances. Parachute is reaching out to its loyal customer base more vigorously.

Segmentation - Targeting - Positioning

SEGMENTATION

Hair oil targets consumers in both urban and rural regions as it is an essential product. Parachute has its market in India as well as international markets in South-East Asia, Gulf, Bangladesh, UAE and Egypt. Among women, it primarily focuses on middle aged and young women. Income level of customer is not a problem as 1 rupee sachets and bottle of small, medium and large sizes are also available. Lifestyle and personality also influences the behaviour of the consumer, therefore parachute lately has been targeting the youth emphasizing that one can experiment as much as one wants with one’s hair till it remains protected and healthy.  

TARGETING

In the beginning the target market was females of all age groups who used coconut oil. Today with various variants available like Parachute advanced, Parachute advanced starz, Parachute Therapie, etc, target market has shifted to focus on consumers with hair fall problem, consumers who have kids of age 3-10 years, consumers who don’t want sticky hair but look for fragrance and free flow of oil in all season. One of its main target is youth who have moderate income and like experimenting with their hair, hence need good hair care product.  There are following types of market targeting:

1.      Mass Target Marketing

2.      Product Specialized Marketing

3.      Market Specialized Marketing
4.      Individual Target Marketing

5.      Differentiated Target Marketing

    6.      Niche Target Marketing 

POSITIONING

Parachute has always established itself as  a natural product which offers nutrient value to hair; Parachute hair oils have been positioned as everyday use hair care products. This played in favor of Parachute a few years back when there were hardly any competitors as it gave the brand another name to hair oil in households. This has given more flexibility and leverage to the brand from the beginning itself.

Sales Management

According to the AMA definition:

The planning, direction, and control of the personal selling activities of a business unit, including recruiting, selecting, training, equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to the sales force. Sales management involves three interrelated processes: (1) formulation of a strategic sales program; (2) implementation of the sales program; and (3) evaluation and control of sales force performance. In formulating the strategic sales program, sales management involves a number of activities including development of account management policies, demand forecasts, and quotas and budgets; sales organization; sales planning; territory design; deployment; and routing. In implementing the sales program, sales management activities include supervising, selecting, recruiting, training, and motivating the sales force. In addition, implementation requires the development of compensation systems and sales force incentive programs. The evaluation and control of sales force performance involves the development and enforcement of methods for monitoring and evaluating sales force performance. Sales management activities typically required for evaluation and control include behavioral analysis, cost analysis, and sales analysis.

Sales Management comprises:

       1. Personal Selling                                                        2. Sales Force Management

IMC and Promotions

Integrated Marketing Communications (IMC) is defined by The American Marketing Association  as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.”

Increased awareness about product, visibility and reach is brought about by promotion. With new concept of integrated Marketing communication coming into picture, it is important not only to promote through different channels but also make sure that all the communication across mediums is synchronized with one central theme. An effective communication identifies the target audience, and has clear objective as to what needs to be conveyed to target audience, designs proper and relevant message, selects appropriate medium of communication, plans a media mix optimally using the available budget, measure and test the results and finally monitor and manage everything to ensure smooth synced run.

Promotional Strategies employed for Parachute

1. Parachute Advanced Tender Coconut Hair Oil:

• Public Relations and Publicity
• Event and Experiences Promotion
• Interactive Promotion

Embarking on a journey that celebrates the moments of Tender Love and Care (TLC) , both Parachute Advanced Tender Coconut Hair Oil and Yeh Jawaani Hai Deewani came together on same stage felicitating  online contest winner as ‘TLC Queens‘ who shared their best moments of ‘Tender love & care Moments‘

2. Parachute Advansed Ayurvedic Hair Oil:

• Advertising and Interactive Promotion
• Word-of-mouth Promotion

PRINT BECOMES THE NEW FACEBOOK : Madison came up with a concept of combining print and social media. Since internet penetration was low, they tied with magazines, attached small oil bottles and a pre-addressed envelope send with every copy with message – ‘try this and if you like it recommend to friend by posting back envelope to us’ . Friends later received hard written letter, oil bottle and two envelopes.

3. Parachute Advanced Therapie Hair Vitaliser:

• Advertising (TV)

The campaign where  Deepika Padukone was the brand ambassador advised girls to massage the hair with Parachute Advanced for one hour and then use the shampoos in order to look Gorgeous Hamesha.

4.  Parachute Advanced Hair Oil:

• Advertising (TV)              
• Interactive Promotion

WORLD’D BEST HAIR : The campaign hinges on a ‘Pass the Sash’ concept where users can share the ‘World’s Best Hair’ sash with other Parachute Advanced users they know. This was brought to life through a Facebook Application. Users could select a friend, add the sash to their profile picture and pass on the Badge. They could also choose to create a video compliment by selecting a few pictures and copy from a given list of options, which then renders into a video. The application also had a Sash Map that tagged places in India where the Sash had traveled, on Facebook.

Parachute has employed many more promotional strategies for its other variants and continues to do so.

Channels Design and Distribution

Channel Design :

Various channels for Parachute Hair Oil include - wholesalers, retailers, sales agent, advertising agencies.

Parachute Hair Oil employs both pull and push strategy. A push strategy uses trade promotion money, manufacturers sales force or other means to induce intermediaries to carry, promote, and sell the product to  customers. The benefits that Parachute Hair Oil provides are well understood by the customers. Parachute uses majorly a pull strategy product which use promotion, advertising and other forms of communication to a very large extent.

Value:The company should first decide and narrow down on a target market, target group and then take into consideration the demand of the product. Designing of the supply chain backward from that target group should be done leading to a demand chain planning and thus selecting a value network.

Decision Making:

Analyzing Customer Needs and Wants:

Consumers choose the channels they prefer based on convenience,  price as well as their shopping motivates. Parachute hair oil is often used in small quantities by consumers. The waiting and delivery time is almost nothing as the product is available readily to be picked up from the shelf at any store.

Establishing Objectives and Constraints:

Channel objectives vary with product characteristics. Parachute Oil products are transported in bulks to stores and therefore channels that minimize the shipping distance and handling amount is used. This provides appropriate level of service and helps reduces the cost.

Distribution Decision:The distribution channels help businesses meet their marketing sales objectives. Marketing channels not only serve the market and but also help make markets. These channels must be in accordance to the company's strategy with respect to segmentation, targeting and positioning.

Importance of Distribution:

1)  Distribution constitutes a significant competitive advantage and is designed to save on cost, improve and increase efficiency, provide easier transactions, provide larger customer base, and allows businesses to focus on other aspects of the organization.

2) Businesses with  brand strategy, strategic promotion and convenience for customers is provided.

3) Channels  that are poorly chosen can have long term consequences and can ultimately lead to a failure in the market.

Retailing,Wholesaling and Logistics

Wholesaler: Sell at a margin of 8-10%. Sell at local Kirana stores in case the stock is left over.

Kirana Store: The product is purchased at MRP and a margin fixed by the distributor of the company is earned.

Super Markets: Buyers decide on pricing Strategies depending on the locality and nearby retailers. Products can be sold at a discount of Re1 or 50 paisa for Parachute Hair Oil.

Hyper Markets: They sell in packs of 3 and reduce the total MRP by Rs 5-8. Small SKU's are at times available for free with the product.

Distribution network for Parachute in India:

Sales territories:

Urban-135

Rural-35

Towns covered:

Urban- more than 32000

Rural- more than 11000

Distributors - 850

Super distributors - 120

Retail outlets: 

Urban - 1.65 million reach

Rural- 0.85 million reach