COMMERCE PROJECT

NAME: RISHIKA AGARWAL

PROJECT 1: COMPARISON OF TWO COMPANIES AND MARKETING

MIX

CLASSMATE AND FABER-CASTELL:

Classmate [Introduction]
Classmate is an Indian brand of student stationery products. ITC
Limited (formerly Indian Tobacco Company), an Indian multinational
conglomerate, launched its Classmate brand in 2003 with the notebooks
category. In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards. ITC's Paperboards business has a manufacturing
capacity of over 360,000 tons per year and is a market leader in India across all
carton-consuming segments. ITC's stationery brands "Paper Kraft" &
"Classmate" are widely distributed brands across India.

Subsequently, Classmate added pens, pencils, mechanical pencils and geometry

boxes to its portfolio. It uses eco-friendly and elemental chlorine-free paper and
its products are well-known for their durability, affordability, and user-friendly
designs, catering to the needs of students, teachers, and professionals alike . One
of Classmate's distinguishing features is its commitment to sustainability. The
brand actively incorporates eco-friendly materials into some of its products,
aligning with the growing global emphasis on environmental responsibility.
Classmate notebooks, available in various sizes, designs, and ruling patterns, are
particularly popular among students for their reliability and versatility.

Classmate also frequently collaborates with educational institutions and

sponsors initiatives aimed at supporting learning and development among
students. Through these partnerships and initiatives, the brand not only provides
essential stationery but also contributes to fostering a conducive learning
environment.
Their notebooks carries ITC's Corporate Social Responsibility message on its
back. For every four Classmate notebooks purchased, ITC contributes ₹1 to its
social development initiative that supports primary education.

It launched a program called Classmate Ideas for India challenge. This was a
part of the company's centenary initiative. The nationwide program would invite
ideas of the youth who have the potential to transform India. Classmate Ideas
for India challenge plans to reach out to 2.5 million students across 30 cities,
500 schools and 200 colleges across the country. The CII-ITC Centre of
Excellence for Sustainable Development, WWF India, the Tony Blair Faith
Foundation, Janaagraha and the Akshaya Patra Foundation among others are the
program partners for the event. The program will encourage the finalists with an
internship with relevant program partners, besides cash prizes and other
rewards.

Faber-Castell [Introduction]
Faber-Castell AG is a manufacturer of pens, pencils, other office
supplies (e.g., staplers, slide rules, erasers, rulers) and art supplies, as well as
high-end writing instruments and luxury leather goods. Headquartered in Stein,
Germany, it operates 14 factories and 20 sales units throughout the globe. The
Faber-Castell Group employs a staff of approximately 8,000 and does business
in more than 120 countries. The House of Faber-Castell is the family which
founded and continues to exercise leadership within the corporation. Faber-
Castell manufactures about 2 billion pencils in more than 120 different colours
every year.
Faber-Castell was founded in 1761 in Stein, Germany, by cabinet maker Kaspar
Faber (1730–1784) as the A.W. Faber Company. It has remained in the Faber
family for eight generations. The company expanded under Kaspar Faber's
great-grandson, Johann Lothar Freiherr von Faber (1817–1896), and his wife,
Ottilie Lothar opened branches in New York (1849), London (1851), Paris
(1855), and expanded into Vienna (1872) and St. Petersburg (1874). The
company also began offering products other than pencils, opening a factory
in Geroldsgrün, Bavaria, where slide rules were produced, a slate factory
in Geroldsgrün, and producing ink and paint in Noisy-le-Sec, near Paris.
In 1898, Lothar's granddaughter and heiress, Ottilie "Tilly" von Faber, married
Count Alexander zu Castell-Rüdenhausen, and the couple became progenitors
of the Faber-Castell family. Seven years later, the company began producing a
new line of pencils, called "Castell"; over the next few years, this line developed
recognizable branding, featuring the green colour of the pencils (chosen to
match the colour of Alexander's military regiment), a logo depicting a castle,
and the motif of two jousting knights, which was used on packaging and in
advertising. This motif originated with a painting, commissioned by Alexander,
of two knights jousting with pencils, and would eventually become the
inspiration behind the company's current logo. 1908 saw the release of the
Polychromos coloured pencils, which continue to be made and widely used
today.

MARKETING MIX
Marketing mix is defined by the use of a marketing tool that combines a number
of components in order to harden and solidify a product’s brand and to help in
selling the product or service. The marketing mix, also known as the four P's of
marketing, which refers to the four key elements of a marketing strategy:
Product, Price, Place and Promotion.

Marketing mix addresses factors such as:

• Understanding the needs or desires of consumers.

• Identifying the cause of the failure of the current product offering.
• Finding ways to solve said problems and change public perception
of the product/service.
• Creating distinguishing characteristics to increase competitive advantage.

PRODUCT

Products are commodities and services that solve problems and satisfy the needs
of consumers. A product can be tangible (clothes, vehicles, etc.) or intangible
(services like house cleaning, etc.) The type of product impacts its perceived
value, which allows companies to price it profitably.

It also affects other aspects such as product placements and advertisements. A

successful product either fills a void in the marketplace or offers a unique
experience that spikes demand.
Before developing a product, it is essential to determine the target audience and
their unique demands.

Some questions to consider when working on a product include:

. What is your product?
. What does your product do?
. How is your product different from others in the market?

PRICE
Price is the cost of a product or service. Price is the cost of the product that the
consumer pays. Price is the most critical element of a marketing plan because it
dictates a company’s survival and profit.

The price should be set up in such a way that it is affordable for the customers
and yet profitable for the business. Pricing can have a significant impact on the
overall success of a product.
For example, if you price your product too high for your targeted audience, then
very few of them will likely purchase it. Similarly, if you price your product too
low, then some might pass it up simply because they are concerned it might be
of inferior quality. To determine a profitable price for your product, it is
important to determine the target audience and the price they are willing to pay
for your product.

Some questions to determine the product’s price include:

• What is the price range of your product’s competitors?
• What is the price range of your target audience?
• What price is too high or too low for the target audience?

PLACE
Place involves choosing the place where products are to be made available for
sale. The primary motive of managing trade channels is to ensure that the
product is readily available to the customer at the right time and place. Alike
price, finding the right place to market and sell your product is a key factor in
reaching your target audience.

Digital transformation has evolved how products are sold -- online, small local
shops or global producers. If you put your product in a place that your target
customer doesn’t visit—whether online or offline— then you will likely not
meet your sales target.
To determine the best place to market and sell the product is by researching the
digital and physical places the target audience views and consumes information.

Some questions to include while determining the place:

• Where is the competition selling its products?
• What are the shopping habits of the target audience?
• What distribution channels are best to reach your target market?

PROMOTION

Promotion refers to the advertisement of the product or service. Promotion

refers to reaching the target audience with the right message at the right time.
The primary aim of promotion is to spread awareness about the product and
services offered by a company. A promotional strategy aims to show consumers
why they would need a certain product and the reasons for buying it over other
products. It helps in persuading consumers to choose a particular product over
others in the market.

The core of marketing communications, product promotions push out specific

and meaningful advertising through popular channels: word-of-mouth seeding,
social networking, Instagram campaigns, print marketing, television
commercials, email marketing campaigns, social media marketing and more.

Promotion is the main force in the marketing mix as it publicises the product
and makes it popular among the masses. Many companies incur losses due to
insufficient or bad advertising.

The questions to tackle while building a promotional strategy include:

• When is the right time to reach the target audience?
• Which channels are the most cost-effective and efficient for product
promotion?
• Which part of the target audience should be engaged?

MARKETING MIX [Classmate]

Classmate is one of the bestsellers in the stationery world producing a large
number of trusted stationery products across the country. It has clocked
revenues of Rs. 1,000 crore in terms of consumer spends. "When the company
got into the stationery business way back in 2003, there was a lot of scepticism,
but today we are market leaders in the branded notebooks category," says
Chand Das, chief executive, education and stationery products business at ITC.
The company's rise to the Rs 1,000-crore mark took a little over 10 years, which
is the fastest in the history of the stationery business in India. The organized
market for notebooks is around Rs 4,000 crore, where ITC's Classmate is the
market leader with a 20 per cent share. Almost 85 per cent of the company's
revenue comes from notebook sales, while the rest is from other stationery
products such as pens and art stationery. This ratio will change to 70:30 in
favour of notebooks in the next five years, says Das.
The financial success of this stationery brand can be attributed to the way the
4Ps of Product, Price, Place, and Promotion are properly coordinated.

PRODUCT
Classmate offers a wide variety of stationery items starting from the best quality
notebooks to pencils, pens, mathematical instruments, erasers, sharpeners and
art stationery.
Their notebooks comes in various designs and themes. Each cover has a theme
on it and information related to that particular theme on the inside. With Ozone-
treated, elemental chlorine free paper, their notebooks and environment friendly
and provides improved quality and shelf life. Classmate Pulse is a new range of
notebooks that comes with stylish, vibrant, and trendy covers suitable for youth.
From Marvel to 3D covers, you can explore a variety of cover designs that
satiates the thirst for knowledge. Catering to the Gen Z, Classmate Pulse
notebook, with all its exquisite features, is a notebook that defines a generation.
You can also customise your own cover page by going to their official website,
selecting your specifications regarding the notebook, adding the picture you
want in your cover page and making the online payment. They deliver these
notebooks to the given address as soon as possible.
Classmate’s Geometry Box is made to provide precision and perfection. With
its die-casted metal instruments and self-centering mechanism, it gives you
maximum accuracy while you draw. Available in various designs, Classmate
Geometry Box stands as your ideal choice for drawings and measurements. It is
also the only brand which provides a mechanical pencil in its geometry box
which attracts customers and increases the sales rate.

PRICE
The objective of classmate is to maximise market share and for that they sell
their products at a reasonable price. According to the Nine Price Quality
Strategies Classmate follows a High Value strategy by providing high product
quality and charging a medium price for its products. They also keep a check on
the competitor cost and provide better quality products are prices almost the
same as its competitors.
Their pencils range from INR 3-40 per unit and pens from INR 5-20 per unit.
Their Classmate Octane Gel pen that costs Rs. 10 is one of the most famous
among students for its smooth writing and its Japanese waterproof ink, it also
comes in various colours to attract customers.
Their bestseller’s is their Stationery bag which consists of 12 of their products
including their notebooks, colours, pens, pencils, etc at Rs. 500. Their
notebooks are eco-friendly and their normal 200 pages long notebook costs Rs.
65 and their Classmate Pulse Notebook for 300 pages costs Rs. 120. Their
customised notebooks are also very reasonable as they provide 6 notebooks (at
least) at Rs. 431. They also provide regular discounts for customers.
PLACE
ITC has an unmatched distribution network. Its products are available in more
than 4 million retail stores in India. A strong distribution shows its marketing
mix place strategy. ITC is constantly trying to reduce the lead time and to make
the products reach to the retailers as quickly as possible.
Classmate’s products are targeted across rural and urban areas across the
country. They started their sales by selling their products in the rural areas first
but now they cover both the rural and urban areas.
Classmate products are distributed through multiple channels to maximize
accessibility. This includes traditional retail channels such as stationery stores,
supermarkets, and convenience stores and also wholesalers who sell the
products in bulk to consumers and other retailers.
Additionally, Classmate leverages online distribution channels through e-
commerce platforms like Amazon and Flipkart to reach a broader customer base
and facilitate convenient purchases.

PROMOTION
Classmate employs various promotional tactics to raise brand awareness and
stimulate demand for its products. Promotions are undertaken with the tagline
“You are one of a kind”. They use TV Advertisements, hoardings, posters and
banners, social media and newspaper to advertise their products and have
become India’s No. 1 notebook brand.
Early in its launch, Classmate understood the importance of traders as
influencers in over 75% of consumer purchase decisions. Trade members were
made brand ambassadors and were educated about the brand’s superiority,
instilling in them a sense of pride for selling the best product in the market.
Classmate quickly expanded its distribution footprint, gaining word of mouth in
trade and increasing consumer awareness of new launches. The brand relied
only on point of sale and other below-the-line advertising media to generate
consumer awareness for the first five years. Over the years, promotional
strategy evolved including traditional media like television, print, radio, cinema
and press. The brand steadily improved its brand salience and product
perception scores, outshining its closest competitors.
The brand has invested in marquee school contact programmes including
Classmate Young Author Contest and Classmate Spell Bee contest. Finishing its
tenth season in 2017-18, Classmate Spell Bee contest is the largest of its kind in
the country, reaching over 3.25 lac students in 30 cities and more than 1,000
schools.

MARKETING MIX [FABER-CASTELL]

Faber-Castell products are sold all over the world by 22 sales companies in
over 120 countries. Faber-Castell also has production sites in nine
different countries. They produce High-quality products for writing,
drawing, creative design and decorative cosmetic products and have a
world-wide production capacity over 2000 million wooden-cased pencils
per year (world’s largest pencil manufacturer).
They do their marketing and sale their products in Europe, North America
and Asia. Their production locations are in 10 countries and around 200
million wood-cased pencils are produced every year. Their sale agents are
over 120 countries.

PRODUCT
Faber-Castell is renowned for its diverse range of high-quality writing
instruments, art supplies, and office products. The company's product portfolio
includes classic wooden pencils, premium fountain pens, markers, colored
pencils, mechanical pencils, erasers, sharpeners, and various art supplies such as
paints, pastels, and sketching tools. Faber-Castell's products are known for their
durability, performance, and innovative features, making them a preferred
choice among artists, students, professionals, and enthusiasts worldwide.
They believe that every child develops at their own unique pace, which is why
they offer age recommendations for their products. The age recommendations
for children’s range (indicated by the red packaging) are listed on the relevant
packaging. The information is based on the average requirements and demands
of children in the relevant age class.
For “3+”, they take into account habitus and motor skills: infants initially pick
up objects and pencils in the fist or cross-grip. To suit this gripping position,
they make crayons that are conducive to the first simple drawing movements.
Their products comply with the international ISO standards 12757-2 (ballpoint
pens), 14145-2 (rollerball pens) and ISO/DIS 27688-2 (GEL pens). The
standards define the behaviour of the stroke under the influence of precisely
defined chemicals or testing methods, which can be used in a counterfeiting
process. The key thing is that writing cannot be removed without visible traces.

PRICE
Faber-Castell products are excellent in quality and are available at surprisingly
affordable prices. The pricing strategy varies from product to product depending
on its type, quantity and size. The brand adopts market penetration strategy to
cater to a wide array of customers from professionals, children and artists.
Their art products are their bestsellers and their normal connector pen set which
contains 25 colours costs Rs. 150. They also sell sustainable crayons and add 2
free crayons to attract customers. Their wooden pencil set (pack of 10) costs Rs.
60 and contains a free sharpener in it as well.
Some of its products may be priced higher than those of competitors, customers
perceive the value in Faber-Castell's reliability, performance, and longevity. The
company's pricing strategy reflects its commitment to delivering exceptional
products and experiences, targeting consumers who prioritize quality over price.
To incentivize larger purchases and enhance customer loyalty, Faber-Castell
employs bundling and promotional pricing strategies. They may bundle related
products together, such as pencils, erasers, and sketchbooks, offering cost
savings compared to purchasing items individually.
They also offers various discounts to customers like seasonal discounts, cash
discounts, promotional discounts and discounts through quantity. The products
sold online are also available at a cheaper rate as compared to retail stores .

PLACE
Faber Castell being the huge brand it has its presence across the globe. It uses a
retailing and wholesaling method to penetrate different segments of a consumer
base. The product this brand offers can be found in bookstores, supermarkets,
stationery stores and mini markets. The company works with a network of retail
partners to showcase its products and provide customers with hands-on
shopping experiences. They also directly sells its items directly to its end user if
the order amount is big in quantity. The company uses a push strategy to induce
intermediaries to buy the product.
Faber Castell has its own distribution channel and hence are able to offer their
products at an unbelievably economic process. They also sell their products
online to increase market penetration. With the word moving to an online
platform all the products by this brand can be found in online websites like
Amazon, Itsy Bitsy, Flipkart, eBay, etc. which helps increase the consumer base
of the product and helps consumers globally to know about the products.
Faber-Castell also targets institutional customers such as schools, universities,
and businesses through its institutional sales division. The company offers bulk
discounts and customized solutions to meet the unique needs of institutional
buyers.
By leveraging a diverse range of distribution channels, Faber-Castell ensures
that its products are readily available to customers wherever they shop, thereby
maximizing its market reach and sales potential.

PROMOTION
Faber Castell uses traditional marketing strategies to promote its brand like
digital print, television, cinemas, newspaper, magazines, advertisement on
public transportation, billboards along the road, social networking site etc. It
also gives out free samples to people, twin packs, buy one get another item free
sort of strategies as its sale promotion means.
Faber-Castell is one of the industry’s oldest manufacturing brands and has
received several medals, awards, and exhibition certificates. Creativity and
innovation have been the company’s mantra, reflected in its products and all
its advertising strategic marketing campaigns.

It has a diversified marketing strategy and advertising policy, including

promotional activities through several available options, especially mediums
like television and radio. As children are an essential customer base,
several advertising campaigns have been telecast on kids’ channels to
increase brand visibility amongst kids.

They also collaborate with influencers, artists, designers, and creators to

promote its products and reach niche audiences. The company works with
influencers who align with its brand values and target demographic to create
authentic content and drive engagement.
COMPARISON BETWEEN CLASSMATE AND FABER-
CASTELL

PRODUCT RANGE: Classmate focuses on the basic necessities of students.

Their pencil range includes standard graphite pencils in different lead grades
suitable for writing and drawing. But they are India’s No. 1 notebook brand and
offer various variety of stationery products to consumers. On the other hand,
Faber-Castell offers a wide variety of pencils including graphite pencils for
writing and sketching, colored pencils for drawing and colouring, and specialty
pencils for artists and designers. Faber-Castell enjoys more sales in their pencil
production and their pencils are known for their durability.

QUALITY: Faber-Castell is renowned for its exceptional quality and

craftsmanship. Their pencils are known for smooth writing and consistent
performance. The brand uses high-quality materials and stringent manufacturing
processes to ensure that each pencil meets the highest standards of excellence.
On the other hand, Classmate’s qualities of pencils may not match that of Faber-
Castell but they are accessible to a wider audience, particularly students and
budget-conscious consumers. Their quality of notebooks is exceptional
compared to other brands, they use eco-friendly and elemental chlorine free
paper. Made from superior quality paper and pulp, the pages are whiter, brighter
and smoother.

PRICE: Faber-Castell’s stationery are positioned as premium products. As

such, they tend to be more expensive compared to other brands in the market.
They are still available for those who prioritize quality over price and want the
best products for their work. Classmate focuses on providing value for money
which makes it the favourite brand of budget-conscious customers. Their
products are superior in quality as compared to many other brands and are also
budget-friendly which makes it a consumer choice for everyday use.

TARGET-AUDIENCE: Classmate primarily caters to students and educational

institutions seeking cost-effective stationery solutions. The brand's products are
designed to meet the needs of students at different educational levels, from
primary school to higher education. They provide a wide variety of products at
the most reasonable price and this also helps consumers to maintain their brand
loyalty towards the brand as they do not have to compromise with the quality.
Faber-Castell targets a diverse audience, including artists, designers,
professionals, and stationery enthusiasts who value quality and performance in
their writing and drawing instruments. Their brand reputation makes consumers
buy products from them even at a price slightly higher than their competitors.
PERSONAL ANALYSIS

With all the points noted, I personally would prefer Classmate over Faber-
Castell. Firstly, Classmate has a large variety of products which are durable and
sustainable and they offer all of them at a reasonable price and with regular
discounts. I personally am a very big fan of their notebooks and stationery
because they are user and pocket-friendly. Secondly, Classmate products are
easily accessible even in the smallest of retail shops whereas if I have to buy a
Faber-Castell product, I will have to visit a departmental store or a bigger
stationery shop. Classmate products are also available in loose whereas Faber-
Castell products usually come in packs and consumers have to buy the entire
pack even if it might not be completely useful for them and they will eventually
spend more as the products are also a little expensive.

That being said, Classmate and Faber-Castell both are leading brands in the
stationery world and are able to attract customers with their own products,
quality and marketing strategies. They both offer products that a person looks
for according to their needs.
PROJECT 2: SWOT ANALYSIS

MAMAEARTH

INTRODUCTION:

Mamaearth is an Indian based start-up that offers a wide range of cosmetic

products to elevate its customers’ daily skin care routine. It was founded in
2016 by partners Varun Alagh and Ghazal Alagh.

They started the business with an initial investment of around INR 90 lakh from
their own pockets. The brand became a massive hit in the market and has gained
over 1.5 million customers so far.

The company deals with a wide range of toxin-free cosmetic products. It

includes the range for baby care, hair care and other skin care products.
Mamaearth is directly competing with big brands such as Johnson and Johnson,
Himalaya and more. The brand leverages the rising demand of adding organic
products in day to day skin and hair care routine. They are one of the first
brands which deal with non-toxic seals for cosmetic products in use. This makes
them a real game -changer and customer preferred name in the cosmetic and
skincare industry.

Mamaearth’s business model is quite straightforward. They sell their products

through various online marketplaces as well as D2C channels such as Amazon,
Flipkart etc. The products are also available for purchase in different offline
stores. The brand’s Omni channel presence has made it feasible for its
customers to purchase the products at their own comfort. The whole range of
products is produced by contract manufacturers under the permit of the
Mamaearth brand and is sold globally through offline as well as online
channels.
OWNERSHIP:

Mamaearth is under its parent entity Honasa Consumer Limited. Varun Alagh,
cofounder and CEO of Mamaearth, holds 34.30% stake in the company with a
total of 10,67,37,650 shares, as per its latest shareholding pattern. Ghazal
Alagh, the other promoter of the startup, holds 3.23% stake. Together, the
promoters and promoter group hold 37.60% stake.

The second biggest shareholder in the startup is venture capital firm Sequoia,
which holds a total of 24.01% stake. Sequoia holds 51, 60,000 equity shares or
19.48% stake in Honasa Consumer Limited through its SCI Investment VI fund.
The venture capital (VC) giant holds another 4.53% stake or 28, 50,900 shares
through its SCI Investment III fund.

On the other hand, Fireside Ventures Fund currently holds 10.39% stake or 18,
44,700 shares in the company. The other major shareholders in Honasa
Consumer Limited are Stellaris, with 9.5% stake; Sofina, with 9.49% stake;
Rishabh Harsh Mariwala, holding 2.93% stakes; and Evolvence India Fund III,
with 1.1% stake.

CAPTIAL:

They started the business with an initial investment of around INR 90 lakh from
their own pockets. 2 years back, in January 2022, while raising a $52 million
investment from Sequoia, Mamaearth was valued at $1.2 billion, exactly a year
later, the company is seeking a target market capitalization of $3 billion (about
Rs 24,000 crore) with the size of its IPO.

Honasa Consumer Ltd, the owner of the popular beauty and personal care
brand, is planning to launch Mamaearth IPO. It filed the Draft Red Herring
Prospectus (DRHP) for its IPO on December 30, 2022, with SEBI. It is planning
to raise Rs 400 crores from a fresh issue with a face value of Rs 10 each. The
company is looking to raise Rs 2,400 crore through the IPO.
Apart from this, promoters and other investors, and the brand ambassador
(Shilpa Shetty Kundra) are selling around 4.7 crore shares through an Offer for
Sale (OFS).

PROFITABILITY:
Ghazal and Varun Alagh-led D2C ecommerce unicorn Mamaearth turned
profitable in the financial year ending March 31, 2022. The startup, which
entered the unicorn club in earlier this year, posted a net profit of INR 19.8 Cr
on a standalone basis in FY22 as against a net loss of INR 1,332.2 Cr in FY21.

Mamaearth is also closing on touching the INR 1,000 Cr revenue mark. Its total
income rose 101% to INR 952.4 Cr in FY22 from INR 472.1 Cr in the previous
financial year. The Tiger Global-backed start-up’s revenue from operations rose
2X to INR 931.7 Cr from INR 459.9 Cr in FY21.

The personal-care brand closed FY23 with revenues of Rs 1,600-1,700 crore, up

from Rs 943 crore in 2022, sources estimate. Its operating income and profit in
the first half of 2023 were Rs 722 crore and Rs 3.67 crore, respectively, as per
the draft prospectus filed with Sebi.

In FY24, Mamaearth wants to focus on improving its margin from 3.7% to 10-
15%, even if it means foregoing growth, say investors. The delayed IPO may
materialise next year. Mamaearth was last valued at $1.2 billion. It’s likely to
seek a valuation of $1.5-2 billion on listing, say investors and bankers.
Investment firm Sofina, which owns 9.5% in Mamaearth and is the largest
selling shareholder highlighted in the DRHP, won’t be satisfied with a limited
upside.

SWOT ANALYSIS

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a

framework used to evaluate a company's competitive position and to develop
strategic planning. SWOT analysis assesses internal and external factors, as
well as current and future potential.

A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven

look at the strengths and weaknesses of an organization, initiatives, or within
its industry. The organization needs to keep the analysis accurate by avoiding
pre-conceived beliefs or gray areas and instead focusing on real-life contexts.
Companies should use it as a guide and not necessarily as a prescription.

Strengths: These are the internal factors that give an organization a competitive
advantage. Some examples of strengths that a company may have are a strong
brand reputation, unique product features, low production costs, or a highly
skilled workforce.
Weaknesses: These are the internal factors that can put an organization at a
disadvantage. Examples of weaknesses that a company may have are poor
management, outdated technology, lack of innovation, or high debt levels.

Opportunities: These are the external factors that a company can take
advantage of to grow and expand. Examples of opportunities are market growth,
changes in customer preferences, emerging technologies, or a shift in
regulations.

Threats: These are the external factors that can negatively affect a company's
performance. Examples of threats are competition, economic downturns,
changes in consumer behaviour, or natural disasters.

It is important to note that the strengths and weaknesses are internal factors,
while opportunities and threats are external factors. A SWOT analysis can help
a company develop strategies that leverage its strengths and opportunities while
addressing its weaknesses and threats.

SWOT ANALYSIS OF MAMAEARTH

STRENGTH:

 Natural Products: Mamaearth is focused on babies and others with an

exclusive product range that caters to baby care, hair care, skincare, and
more with over 300 natural products under its umbrella. Some of the most
innovative products developed by Mamaearth include India’s first
bamboo-based baby wipes, easy tummy roll-on with Hing and Fennel for
colic and digestion relief, and 100% natural plant-based toothpaste for
children between 0-10 years.
It also has a range of skin and hair care products around popular natural
ingredients such as onion, Ubtan, tea tree, vitamin C, argan, coco, and charcoal.
It has expanded not only to cater to babies but their mothers as well with
varied products ranging from sunscreen to stretch mark removal serum. It
focuses on all aspects of motherhood. The main strength of the brand is their
toxin-free natural products which is the demand in today’s world.

 Ad Campaigns: Mamaearth's "Goodness makes you beautiful"

campaign was successful in promoting natural and safe personal care
products. The campaign emphasized the importance of using natural
 ingredients and the benefits they provide. Mamaearth's digital marketing
strategy helped them to reach a wider audience and increase brand
awareness.

Mamaearth facilitated its customers to convey their experiences with their

natural and safe personal care products on social media using the
hashtag #GoodnessMakesYouBeautiful. The brand then featured this content on
its social media pages, which helped to build engagement and credibility .

 Strong online presence: The brand has gained a strong following

among consumers in India and abroad due to its commitment to
sustainability, social responsibility, and transparency. Mamaearth has
also received various certifications, including the Made Safe certification,
which verifies that its products are safe for use by consumers.

In addition, Mamaearth has a strong online presence, with a well-designed

website and a significant following on social media platforms. The brand has
leveraged digital marketing and e-commerce channels to reach a wide audience,
which has contributed to its rapid growth and success.

 Social Responsibility:

1) Recyclable Packaging: The use of recyclable packaging minimizes

Mamaearth’s environmental footprint, showcasing its dedication to
sustainable practices.
2) NGO Partnerships: Collaborations with NGOs for education, healthcare,
and reforestation highlight Mamaearth’s holistic approach to social
responsibility.
3) In the year 2021, Mamaearth has included an initiative to plant a tree for
every product you buy from them.

 Made safe certification: Mamaearth received the Made safe Award from
the American Non-Profit organisation and became the first Asian brand to
receive it.

WEAKNESS:
  Pricing: Mamaearth's products are priced slightly higher compared to
other brands in the market. This may make it difficult for the brand to
attract price-sensitive consumers.

 Limited product range: While Mamaearth offers a wide range of personal

care products, the brand does not offer other categories such as clothing
or accessories. This may limit the brand's ability to cater to a broader
audience.

 Heavy advertisement costs: It spends a whopping 40% of its revenues on

advertising. It also acquired an entire content platform called
“momspresso” for a massive 153 crores last year. Between March and
September 2022, the company worked with as many as 3958 influencers
and in fact this is one of the biggest criticisms of MamaEarth.

 Outsourcing: Mamaearth does not have its own production and

manufacturing facilities for its products. The company outsources almost
all of its production work to the 3rd party manufacturers. It means that the
company is heavily relied on them and that is risky for its own business.

OPPOURTUNITIES:

 Product line extension: Mamaearth has already established itself as a

brand that offers natural and organic personal care products. However,
there is an opportunity for the brand to expand its product line to include
other categories, such as baby food, supplements, or home care products.
This will help the brand to cater to a wider range of customers and
increase its market share.

 Emphasis on sustainability: As more and more consumers become

environmentally conscious, there is an opportunity for Mamaearth to
place a greater emphasis on its sustainability efforts. This can include
using eco-friendly packaging, sourcing ingredients from sustainable
sources, and reducing its carbon footprint. By doing so, Mamaearth can
attract more environmentally conscious consumers and differentiate itself
from other personal care brands.

 Digital marketing: In today's digital age, there is a huge opportunity for

Mamaearth to invest in digital marketing to reach more customers. The
 brand can leverage social media, influencers, and other digital platforms
to create brand awareness and increase its customer base.

 New trends in consumer behaviour: Changing consumer habits provide

MamaEarth with different opportunities of using cognitive
advertisements to influence the consumer.

THREAT:

 Intense competition: The personal care industry is highly competitive,

with many established players as well as new entrants. Mamaearth faces
competition from well-known international brands and local players who
may offer similar products at lower prices.

 Counterfeit products: With Mamaearth's increasing popularity, there is a

risk of counterfeit products being sold under the brand name. This can
negatively affect the brand's reputation and customer trust. Also they do
not have any patents for their products, so it is easy for anyone to copy
their formulations without them being able to do anything.

 Regulatory compliance: The personal care industry is heavily regulated,

with many rules and regulations to follow. Mamaearth must ensure that
its products comply with all applicable regulations and standards to avoid
any penalties or legal issues.

 Supply chain disruptions: Mamaearth sources its ingredients from various

suppliers, and any disruption in the supply chain due to natural disasters,
geopolitical issues, or other factors can negatively affect the brand's
production and distribution capabilities.

 Economic conditions: Changes in the economic conditions, such as

inflation, currency fluctuations, or recession, can impact Mamaearth's
business operations, pricing strategies, and customer demand.

 Negative social media attention: Social media has a significant impact on

brand reputation. Any negative attention, such as complaints from
customers about product quality, can go viral and harm Mamaearth's
reputation.
CONCLUSION

The Mamaearth business model is strong and the company is poised for
long-term success. The company has a great product line-up, a solid
customer base, and is constantly innovating. Additionally, Mamaearth is
well-funded and has a bright future ahead.
The company's efficient manufacturing process and supply chain allow it
to keep costs low and pass on savings to its customers.
Additionally, Mamaearth’s focus on quality and safety sets it apart from
its competitors. Looking to the future, Mamaearth plans to continue
expanding its product range and reach more customers.