Case Study: Marico's Money Madness: Into the Men's Grooming Market
Marico Bangladesh, the Indian-based multinational company, has grown from a single to 29 brands in personal care and food categories. If you have never heard of Marico, you may be familiar with the company's most popular brand, Parachute coconut hair oil.
In its financial year of 2019-20, Marico Bangladesh reported an 11.7% growth in revenue (to BDT 979.59 crores) & a 30% increase in net profit (BDT 264 crores). Even in the pandemic, the company's sales increased by 14% in the first three quarters of the fiscal year 2020-21. Surprisingly, the secret to this success was a product diversification strategy.
It's surprising because, after 20 years of building up the Parachute hair oil brand, Marico Bangladesh extended the Parachute name to hair care (Parachute Naturale shampoo), skincare (Parachute Advansed Body Lotion) & baby care products. While diversifying the brand portfolio helped the company report strong revenue growth, it also assured the shareholders of Marico's versatility & fierceness to take on any challenges.
Now, it should be obvious that Marico spent a lot to make a lot of money. One of the significant investments made last year was into the men's grooming market, around BDT 30 crores. Though its ideal target group has always been women, Marico launched a wide range of men's grooming products under the brand Set Wet back in 2013. The product line featured different variants of deodorants, hair gels, and pocket perfumes. At the time, Set Wet pocket perfumes were a fashionable necessity for men, and it was very trendy to have. Over the years, Set Wet has lost its edge & appeal, and there isn't much buzz about it on social media either.
However, thanks to the recent investment, Marico Bangladesh has made a comeback into the men's grooming market with Studio-X, a subsidiary brand under Set Wet. The premium product line includes men's shampoo, face wash, body soap, and hair gel, all made in Bangladesh. In its launching week, the stock market was so excited by the brand's arrival that the share price advanced 2.51 percent to close at BDT 1,713.
Marico Bangladesh was clever in sticking to its diversification strategy, first launching Set Wet (similar to Parachute coconut oil) and then Studio-X. (like Parachute Naturale, Parachute Advansed Body lotion, and so on). But just because it worked for Parachute doesn't mean it will work for Studio-X, especially when the target group now is different. Nevertheless, do you think Studio-X can become a household name for men? You're more than welcome to share your opinion. Thank you for taking the time to read & if you loved this case study, feel free to show your support.
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