INTERNATIONAL MARKETING

lovekesh

New member
Acknowledgement




I am grateful to my faculty, Prof KATEN.VIRA, who gave us such an exciting project on INDIAN MULTINATIONAL COMPANIES. This project has helped me to clear my concept which is otherwise not possible inside the classroom. It has enabled me to relate the classroom knowledge to the real world and further gain insight into the actual application.

I express my deepest regards to my faculty and friends whose guidance, support and timely advice has helped me bring this project report in its final shape.








DEFINATION
According to Jacques Maison-rouge, president of IBM WORLD TRADE CORPORATION, a firm should fulfill the following five criteria to quality to be an MNC.
• It operates in many countries at different level of economics development.
• Its local subsidiaries are managed by nationals.
• It maintains complete industrial organizations, including R&D and manufacturing facilities in several countries.
• It has a multinational central management.
• It has multinational stock owenership.











List of Indian Multinationals


Amtek Auto Limited
Arvind Mills Limited
Ashok Leyland Limited

Asian Paints Limited
Aurobindo Pharma Limited
Bharat Forge Limited

Dabur India Limited
Dr Reddy's Laboratories Limited
Glenmark Pharmaceuticals Limited

Gokaldas Exports Limited
Infosys Technologies Limited
ITC Limited

Larsen & Toubro Limited
Mahindra & Mahindra Limited
Marico Industries Limited

Moser Baer India Limited
Motherson Sumi Systems Limited
Nicholas Piramal India Limited

Ranbaxy Laboratories Limited
Rico Auto Industries Limited
Satyam Computer Services Limited

Sterlite Industries India Limited
Sundram Fasteners Limited
Tata Consultancy Services Limited

Tata Motors Limited
Tata Steel Limited
Tata Tea Limited

The Indian Hotels Company Limited
Thermax Limited
Titan Industries Limited

United Phosphorus Limited
Voltas Limited
Videsh Sanchar Nigam Limited

Wipro Limited
Wockhardt Limited
Zee Telefilms Limited
















• Indian industry has grown wings. There has been a rapid upsurge in the Indian corporate world as a result of globalization. Globalization has given a new meaning and dimension to corporate India. Many Indian firms have slowly and surely embarked on the global path, leading to the emergence of the Indian multinational companies.

• Indian industry has crossed domestic boundaries and established a remarkable presence in foreign markets in a very short time.

• The evolution of the Indian multinational spans diverse sectors from pharmaceuticals to automotive to hotels to textiles to engineering goods and entertainment. With each passing day, Indian businesses are acquiring companies abroad, becoming world-popular suppliers and are recruiting talent cutting across national boundaries.

• This trend truly signifies the global aspirations of Indian companies, but more importantly, represents the ability of Indian businesses to achieve global standards of competitiveness.

• It indeed gives me much pleasure in presenting to you - ‘Indian Multinationals’ - a bouquet of global corporate India.


Kamal Nath
Minister of Commerce & Industry
Government of India



ABOUT THE COMPANY

Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated during 2005-06 a Turnover of about Rs.11.5 billion (USD 250 Million). Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Kaya, Sundari, Aromatic Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Anti-lice Treatment, Premium Refined Edible Oils, Fabric Care etc. Marico is present in the Skin Care Services segment through Kaya Skin Clinics (47 in India and the UAE), the Sundari range of Spa skin care products (in the USA & other countries) and also through a recently acquired nascent soap franchise (in India and Bangladesh).
Marico's branded products are also present in Bangladesh, other SAARC countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services.
Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.
Marico’s focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 13 % in Turnover and 15% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 29 for Profits and 25 for Sales, and distributing dividends for 24 consecutive quarters.

Marico's Values

Marico has a set of articulated values that were created at the inception of the organization, revisited and modified once in the year 1997 and lately in 2005, through the collective wisdom of Mariconians. The values since then have been an integral part of the working of all Mariconians.Our values are preferred practices that are employed in pursuit of our Business Direction. They sum up the philosophy that will build the culture to drive business growth.
OPPORTUNITY SEEKING : Opportunities lie all around us in the form of unstated needs of consumers, changes trends, attitudes & habits of people. Very often they are first visible, as weak signals and those who read them early on will gain an advantage over the rest. These signals need to be identified and converted to possibilities for business growth. Higher the number of opportunities converted, higher will be the growth options for our people.
BIAS FOR ACTION :Bias for action is a preference for action over deep analysis. When action is the identity, much more is likely to get done in an organisation. In times where change happens at a rapid pace, an agility of mind is extremely important to keep winning. It is about the ability to move ahead inspite of doubt, of moving ahead even when 100% data is not available by using gut. It is however, not about rash actions without investing any time to think through or doing reasonable inquiry.
CONSUMER CENTRIC :The wealth of the company is created by the trust of its consumers. In the final analysis it is this trust that compensates us materially and intellectually. The consumer must therefore be the primary focus of all the efforts. Members and associates must design their output in ways that add value to the consumer.
EXCELLENCE : Only organisations that set world-class standards, will survive in the future. We will focus on practices that encourage and sustain rising standards of performance and builds on the pool of our talented members. Members will be encouraged to continuously benchmark against the best and continuously strive to be better than the best.
INNOVATION :The future of the organisation rests on the willingness to experiment, push in new and untested directions, and think in uncommon ways to take calculated risks. We innovate when we do something in ways that are distinctive/ pioneering and gives dramatic results. Fear of failure should not be the reason to avoid trying something different or new. More often than not, we fear change because of the unpredictability of the outcome. Experimentation helps build predictability of results. It helps us stimulate an idea on a small scale, and learn about possiblepitfalls before going the whole way.
OPENNESS & TRANSPARENCY: Openness is a value that helps build a culture of trust and synergy. It is only when there is trust that the culture can be apolitical, ideas can be exchanged freely without any fear and
experimentation can flourish. It is also in this environment that people will feel free to build on each other and collectively we will achieve more than individual effort.
GLOBAL OUTLOOK :Becoming a global player requires a deep understanding of the global markets, ability to deal with people of diverse cultures and ability to compete effectively in those markets.

BOUNDARYLESSNESS :Boundarylessness, like openness helps build a culture where we can leverage the collective wisdom to get synergies. This is assuming higher degree of criticality in the world where it is difficult for one person to know all and the interdependency amongst functions is increasing.




How is Marico Structured


A Flat Structure : At Marico, we are an organisation, which is flat with only five levels of reporting between the Managing Director and an operator on the shop floor. We believe that a flat structure helps us in being more responsive to the environment while providing enriched roles for our members. Our structure defines clear roles and supporting relationships but is by no means rigid. Keeping in mind the fast and ever changing business environs, Marico's structure is dynamic and constantly evolving.

Profit Centers : In order to provide focus to its business operations, Marico has organised its businesses into the following business segments or profit centers:
Consumer Products, comprising the operations of Marico Limited and Marico Bangladesh Limited. This division manufactures & markets Marico's 10 leading consumer product brands like Parachute, Saffola, etc. Aesthetics Services, comprising operations of Kaya Skin Clinics under the banner of Kaya Skin Care Ltd. Kaya Skin Clinics offer US FDA approved scientific dermatological procedures that are customised to suit the Indian skin. Global Ayurvedics, comprising the operation of Sundari LLC in the US. Sundari markets the Sundari range of Ayurvedic skin care products in the US & other parts of the world.
All the above profit centers have their dedicated marketing teams, distribution channels, sales force and backroom facilities.

What it has done for us: The creation of Profit Centers has led to higher business orientation, improved inter-functional coordination and has ensured that our organisation structure supports our overall Company Strategy and Business Direction. Each Business Unit has a Business Head supported by a team of professionals.

Finance: The company is strongly supported by the Finance Division, which handles the legal, treasury, tax, control systems and management information support. Additionally, every profit center has its own dedicated finance cell.

HR : Equal support comes from our HRD team, which expends its energies, formulating and building strategies to build a stable and high - talent organisation.The innovations and the quest for excellence at Marico continue unabated. Even as the success stories continue, the focus from the consumer never shifts.










































MARICO'S BUSINESS DIRECTION - 2010:





We commit ourselves to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services in Personal and Health Care sectors. We shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances and the underlying science of hair care and skin care.

We shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services.

We shall develop, in parts of the world beyond the Indian Subcontinent, a franchise for our branded products and services.

We shall aim to be a leader in each of our businesses through heightened sensitivity to consumer needs, setting up of new standards in the delivery and quality of products and services and processes of continuous learning and improvement.

We shall share our prosperity amongst members, shareholders and associates, who contribute in improving our equity and market value. We shall acquire the stature of a friendly corporate citizen, contributing to the betterment of neighbourhood communities, where we are significantly present.






Information Technology

Information Technology - Bringing Competitive Advantage to Marico's Business Evolution:
Information Technology (IT) is becoming increasingly relevant for the Fast Moving Consumer Goods (FMCG) industry of which Marico is a constituent. A widespread supply chain network of manufacturing locations on one hand and dealers and retailers on the other makes timely availability of real time information very crucial for planning & decision making.

With a proactive realization of how IT can add value to business, Marico has been continuously upgrading its IT infrastructure. From distributed and unconnected IT systems, Marico has migrated to a centralized and integrated IT architecture, riding a successful change management process.

IT infrastructure:

Marico's IT infrastructure comprises:
SAP suite of R/3, Business Warehouse and APO - a Supply Chain solution.
Intel Itanium 2 servers hosting the SAP Suite of products.
Mi-Net, an internet enabled B2B platform for the sales force.
MIDAS, a transaction processing software for Marico's distributors.
A state of the art connectivity network comprising VSATs, VPNs, Leased Circuits and Internet VPNs connecting all the factories, regional offices, depots and some subcontractors of Marico to the centralized data center in Mumbai
Citrix solutions that help Marico in reduce traffic on the network.
Storage technologies like SAN and NAS that help Marico reduce the storage costs.
Firewall, Anti Virus Software & Intrusion Detection Systems to ensure comprehensive security of the Information Systems.
Aventail Smart SSL VPN to enable secure remote access from anywhere in the world.
Marico was the first in India to go live on SAP R/3 suite of products comprising SAP R/3, APO and BIW with a big bang approach completing the implementation within a record 9-month period. Marico won the SAP Star award for this implementation.

Marico has since extended the SAP R/3 system to its overseas operations in Bangladesh & Kaya, the skin care services venture of Marico.

In FY 2004-05, Marico upgraded its SAP suite to the latest release to improve performance & leverage the new features of the latest release. Marico also was one of the early adopters of the Intel Itanium 2 platform, harnessing the power of 64-bit computing to deliver improved performance and benefits to the business.

Sales Force productivity is the key to any FMCG company's ability to service its customers better and Marico is no exception. Marico has therefore implemented MIDAS and Mi-Net for the following business benefits:
• Improvement in forecast accuracy
• Reduction in sales Skew
• Reduction in planning cycle time
• Reduction in late deliveries
• Reactivation of lapsed outlets
• Improvement in return on investment for the distributor
• Reduction in the working capital requirement
• Reduction in claim pilferage
Besides cost savings, these benefits have enhanced Marico's ability to service its consumers - making its brands available at the right time, at the right places in right quantities and for the right value add to its stake holders.

Accolades:
Intelligent Enterprise Award (Retail & Consumer Products) by Network Magazine and Ernst & Young in 2004.
Finalist in the Wharton - Infosys Business Transformation Award in the Asia Pacific region in 2004.
STAR installation award by SAP for successful implementation of SAP in 2001.
Lakshya award from NITIE for Mi-Net in 2002.

Going Forward:
Going forward, Marico has identified various areas to be impacted by IT. These include:
• Connecting Marico's supplier base and enabling information collaboration with them.
• Automating the processes related to Human Capital Management.
• Automating the Product Lifecycle Management processes.
Enhancing employee productivity through collaboration & conferencing tools.








Sales & Distribution

Marico's Distribution Network: Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverageable strength. Every month, 56 million consumer packs are sold to about 1.8 million households through 1.6 million retail outlets spread across the country. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 10 Indians is a Marico consumer.

Distribution Alliance: Our distribution strength has been recognised by Indo Nissin Foods Ltd. through their association with us for the distribution of Top Ramen products on a national basis.

Rural Sales & Distribution:
• Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline.
• Our infrastructure comprises 882 direct distributors, 153 super distributors, catering to 2393 small stockists and 4523 van markets.
• A dedicated team of Territory Sales Executives and Pilot Sales Representatives distribute Marico's as well as alliance brands through this vibrant network.
Sales Capacity:
We have made significant progress in the areas that enhance sales capacity.
• Quality of our distributors
• Quality and number of the distributor field force
• Upgradation in the role of the company's front-line sales force.



Training:
Marico believes in investing in the training and development of its field force for:
• Regularly upgrading skill sets.
• Providing an understanding for leadership enhancement
Information Technology (IT) in Sales:
Marico has been making investments in IT to ensure:
• Supply Chain efficiencies
• Availability of the SKU at the right distributor point, at the right time in right quantities
• Timely availability and reliability of Sales MIS, which help in taking prudent decisions on a real time basis.
In order to reap maximum benefits from its sales and distribution network, Marico embarked on an internet-enabled application - MI-Net - to establish a network between Marico and its distributors through a web interface. This project is aimed at providing real time information on the status of various business operations between Marico and its distributors. This initiative is expected to provide business benefits in the form of increased penetration by the sales force, reduced communication costs, reduced working capital requirements, etc. The project went live on April 1, 2002 with connectivity to 330 urban distributors, who together account for about 3/4th of Marico's domestic turnover. The business benefits are expected to accrue over a period of time.





At The End of The Day: We believe that all our efforts and strengths MUST mean a better quality of life for our consumers as the maxim "Consumer is the King" is sacrosanct in our organisation. We strive towards this goal by constantly evolving new methods and practices that enhance the quality of our service. The entire sales organisation strives to be the BEST in CLASS at all times in all respects. These initiatives have been rewarded with increase in sales, greater penetration and happier consumers. Our ability to gather path-breaking insight has led us to untapped rural areas and the results have been great.
 
Acknowledgement




I am grateful to my faculty, Prof KATEN.VIRA, who gave us such an exciting project on INDIAN MULTINATIONAL COMPANIES. This project has helped me to clear my concept which is otherwise not possible inside the classroom. It has enabled me to relate the classroom knowledge to the real world and further gain insight into the actual application.

I express my deepest regards to my faculty and friends whose guidance, support and timely advice has helped me bring this project report in its final shape.








DEFINATION
According to Jacques Maison-rouge, president of IBM WORLD TRADE CORPORATION, a firm should fulfill the following five criteria to quality to be an MNC.
• It operates in many countries at different level of economics development.
• Its local subsidiaries are managed by nationals.
• It maintains complete industrial organizations, including R&D and manufacturing facilities in several countries.
• It has a multinational central management.
• It has multinational stock owenership.











List of Indian Multinationals


Amtek Auto Limited
Arvind Mills Limited
Ashok Leyland Limited

Asian Paints Limited
Aurobindo Pharma Limited
Bharat Forge Limited

Dabur India Limited
Dr Reddy's Laboratories Limited
Glenmark Pharmaceuticals Limited

Gokaldas Exports Limited
Infosys Technologies Limited
ITC Limited

Larsen & Toubro Limited
Mahindra & Mahindra Limited
Marico Industries Limited

Moser Baer India Limited
Motherson Sumi Systems Limited
Nicholas Piramal India Limited

Ranbaxy Laboratories Limited
Rico Auto Industries Limited
Satyam Computer Services Limited

Sterlite Industries India Limited
Sundram Fasteners Limited
Tata Consultancy Services Limited

Tata Motors Limited
Tata Steel Limited
Tata Tea Limited

The Indian Hotels Company Limited
Thermax Limited
Titan Industries Limited

United Phosphorus Limited
Voltas Limited
Videsh Sanchar Nigam Limited

Wipro Limited
Wockhardt Limited
Zee Telefilms Limited
















• Indian industry has grown wings. There has been a rapid upsurge in the Indian corporate world as a result of globalization. Globalization has given a new meaning and dimension to corporate India. Many Indian firms have slowly and surely embarked on the global path, leading to the emergence of the Indian multinational companies.

• Indian industry has crossed domestic boundaries and established a remarkable presence in foreign markets in a very short time.

• The evolution of the Indian multinational spans diverse sectors from pharmaceuticals to automotive to hotels to textiles to engineering goods and entertainment. With each passing day, Indian businesses are acquiring companies abroad, becoming world-popular suppliers and are recruiting talent cutting across national boundaries.

• This trend truly signifies the global aspirations of Indian companies, but more importantly, represents the ability of Indian businesses to achieve global standards of competitiveness.

• It indeed gives me much pleasure in presenting to you - ‘Indian Multinationals’ - a bouquet of global corporate India.


Kamal Nath
Minister of Commerce & Industry
Government of India



ABOUT THE COMPANY

Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated during 2005-06 a Turnover of about Rs.11.5 billion (USD 250 Million). Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Kaya, Sundari, Aromatic Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Anti-lice Treatment, Premium Refined Edible Oils, Fabric Care etc. Marico is present in the Skin Care Services segment through Kaya Skin Clinics (47 in India and the UAE), the Sundari range of Spa skin care products (in the USA & other countries) and also through a recently acquired nascent soap franchise (in India and Bangladesh).
Marico's branded products are also present in Bangladesh, other SAARC countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services.
Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.
Marico’s focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 13 % in Turnover and 15% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 29 for Profits and 25 for Sales, and distributing dividends for 24 consecutive quarters.

Marico's Values

Marico has a set of articulated values that were created at the inception of the organization, revisited and modified once in the year 1997 and lately in 2005, through the collective wisdom of Mariconians. The values since then have been an integral part of the working of all Mariconians.Our values are preferred practices that are employed in pursuit of our Business Direction. They sum up the philosophy that will build the culture to drive business growth.
OPPORTUNITY SEEKING : Opportunities lie all around us in the form of unstated needs of consumers, changes trends, attitudes & habits of people. Very often they are first visible, as weak signals and those who read them early on will gain an advantage over the rest. These signals need to be identified and converted to possibilities for business growth. Higher the number of opportunities converted, higher will be the growth options for our people.
BIAS FOR ACTION :Bias for action is a preference for action over deep analysis. When action is the identity, much more is likely to get done in an organisation. In times where change happens at a rapid pace, an agility of mind is extremely important to keep winning. It is about the ability to move ahead inspite of doubt, of moving ahead even when 100% data is not available by using gut. It is however, not about rash actions without investing any time to think through or doing reasonable inquiry.
CONSUMER CENTRIC :The wealth of the company is created by the trust of its consumers. In the final analysis it is this trust that compensates us materially and intellectually. The consumer must therefore be the primary focus of all the efforts. Members and associates must design their output in ways that add value to the consumer.
EXCELLENCE : Only organisations that set world-class standards, will survive in the future. We will focus on practices that encourage and sustain rising standards of performance and builds on the pool of our talented members. Members will be encouraged to continuously benchmark against the best and continuously strive to be better than the best.
INNOVATION :The future of the organisation rests on the willingness to experiment, push in new and untested directions, and think in uncommon ways to take calculated risks. We innovate when we do something in ways that are distinctive/ pioneering and gives dramatic results. Fear of failure should not be the reason to avoid trying something different or new. More often than not, we fear change because of the unpredictability of the outcome. Experimentation helps build predictability of results. It helps us stimulate an idea on a small scale, and learn about possiblepitfalls before going the whole way.
OPENNESS & TRANSPARENCY: Openness is a value that helps build a culture of trust and synergy. It is only when there is trust that the culture can be apolitical, ideas can be exchanged freely without any fear and
experimentation can flourish. It is also in this environment that people will feel free to build on each other and collectively we will achieve more than individual effort.
GLOBAL OUTLOOK :Becoming a global player requires a deep understanding of the global markets, ability to deal with people of diverse cultures and ability to compete effectively in those markets.

BOUNDARYLESSNESS :Boundarylessness, like openness helps build a culture where we can leverage the collective wisdom to get synergies. This is assuming higher degree of criticality in the world where it is difficult for one person to know all and the interdependency amongst functions is increasing.




How is Marico Structured


A Flat Structure : At Marico, we are an organisation, which is flat with only five levels of reporting between the Managing Director and an operator on the shop floor. We believe that a flat structure helps us in being more responsive to the environment while providing enriched roles for our members. Our structure defines clear roles and supporting relationships but is by no means rigid. Keeping in mind the fast and ever changing business environs, Marico's structure is dynamic and constantly evolving.

Profit Centers : In order to provide focus to its business operations, Marico has organised its businesses into the following business segments or profit centers:
Consumer Products, comprising the operations of Marico Limited and Marico Bangladesh Limited. This division manufactures & markets Marico's 10 leading consumer product brands like Parachute, Saffola, etc. Aesthetics Services, comprising operations of Kaya Skin Clinics under the banner of Kaya Skin Care Ltd. Kaya Skin Clinics offer US FDA approved scientific dermatological procedures that are customised to suit the Indian skin. Global Ayurvedics, comprising the operation of Sundari LLC in the US. Sundari markets the Sundari range of Ayurvedic skin care products in the US & other parts of the world.
All the above profit centers have their dedicated marketing teams, distribution channels, sales force and backroom facilities.

What it has done for us: The creation of Profit Centers has led to higher business orientation, improved inter-functional coordination and has ensured that our organisation structure supports our overall Company Strategy and Business Direction. Each Business Unit has a Business Head supported by a team of professionals.

Finance: The company is strongly supported by the Finance Division, which handles the legal, treasury, tax, control systems and management information support. Additionally, every profit center has its own dedicated finance cell.

HR : Equal support comes from our HRD team, which expends its energies, formulating and building strategies to build a stable and high - talent organisation.The innovations and the quest for excellence at Marico continue unabated. Even as the success stories continue, the focus from the consumer never shifts.










































MARICO'S BUSINESS DIRECTION - 2010:





We commit ourselves to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services in Personal and Health Care sectors. We shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances and the underlying science of hair care and skin care.

We shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services.

We shall develop, in parts of the world beyond the Indian Subcontinent, a franchise for our branded products and services.

We shall aim to be a leader in each of our businesses through heightened sensitivity to consumer needs, setting up of new standards in the delivery and quality of products and services and processes of continuous learning and improvement.

We shall share our prosperity amongst members, shareholders and associates, who contribute in improving our equity and market value. We shall acquire the stature of a friendly corporate citizen, contributing to the betterment of neighbourhood communities, where we are significantly present.






Information Technology

Information Technology - Bringing Competitive Advantage to Marico's Business Evolution:
Information Technology (IT) is becoming increasingly relevant for the Fast Moving Consumer Goods (FMCG) industry of which Marico is a constituent. A widespread supply chain network of manufacturing locations on one hand and dealers and retailers on the other makes timely availability of real time information very crucial for planning & decision making.

With a proactive realization of how IT can add value to business, Marico has been continuously upgrading its IT infrastructure. From distributed and unconnected IT systems, Marico has migrated to a centralized and integrated IT architecture, riding a successful change management process.

IT infrastructure:

Marico's IT infrastructure comprises:
SAP suite of R/3, Business Warehouse and APO - a Supply Chain solution.
Intel Itanium 2 servers hosting the SAP Suite of products.
Mi-Net, an internet enabled B2B platform for the sales force.
MIDAS, a transaction processing software for Marico's distributors.
A state of the art connectivity network comprising VSATs, VPNs, Leased Circuits and Internet VPNs connecting all the factories, regional offices, depots and some subcontractors of Marico to the centralized data center in Mumbai
Citrix solutions that help Marico in reduce traffic on the network.
Storage technologies like SAN and NAS that help Marico reduce the storage costs.
Firewall, Anti Virus Software & Intrusion Detection Systems to ensure comprehensive security of the Information Systems.
Aventail Smart SSL VPN to enable secure remote access from anywhere in the world.
Marico was the first in India to go live on SAP R/3 suite of products comprising SAP R/3, APO and BIW with a big bang approach completing the implementation within a record 9-month period. Marico won the SAP Star award for this implementation.

Marico has since extended the SAP R/3 system to its overseas operations in Bangladesh & Kaya, the skin care services venture of Marico.

In FY 2004-05, Marico upgraded its SAP suite to the latest release to improve performance & leverage the new features of the latest release. Marico also was one of the early adopters of the Intel Itanium 2 platform, harnessing the power of 64-bit computing to deliver improved performance and benefits to the business.

Sales Force productivity is the key to any FMCG company's ability to service its customers better and Marico is no exception. Marico has therefore implemented MIDAS and Mi-Net for the following business benefits:
• Improvement in forecast accuracy
• Reduction in sales Skew
• Reduction in planning cycle time
• Reduction in late deliveries
• Reactivation of lapsed outlets
• Improvement in return on investment for the distributor
• Reduction in the working capital requirement
• Reduction in claim pilferage
Besides cost savings, these benefits have enhanced Marico's ability to service its consumers - making its brands available at the right time, at the right places in right quantities and for the right value add to its stake holders.

Accolades:
Intelligent Enterprise Award (Retail & Consumer Products) by Network Magazine and Ernst & Young in 2004.
Finalist in the Wharton - Infosys Business Transformation Award in the Asia Pacific region in 2004.
STAR installation award by SAP for successful implementation of SAP in 2001.
Lakshya award from NITIE for Mi-Net in 2002.

Going Forward:
Going forward, Marico has identified various areas to be impacted by IT. These include:
• Connecting Marico's supplier base and enabling information collaboration with them.
• Automating the processes related to Human Capital Management.
• Automating the Product Lifecycle Management processes.
Enhancing employee productivity through collaboration & conferencing tools.








Sales & Distribution

Marico's Distribution Network: Marico's distribution width and penetration is acknowledged as one of the best in the industry and is a leverageable strength. Every month, 56 million consumer packs are sold to about 1.8 million households through 1.6 million retail outlets spread across the country. Marico's distribution network covers almost every Indian town with a population of over 20,000. The chart below depicts Marico's distribution network in the urban & rural markets: Thus, 1 out of every 10 Indians is a Marico consumer.

Distribution Alliance: Our distribution strength has been recognised by Indo Nissin Foods Ltd. through their association with us for the distribution of Top Ramen products on a national basis.

Rural Sales & Distribution:
• Marico's parallel rural sales and distribution network ranks among the top three in the industry and contributes 24% to the company's topline.
• Our infrastructure comprises 882 direct distributors, 153 super distributors, catering to 2393 small stockists and 4523 van markets.
• A dedicated team of Territory Sales Executives and Pilot Sales Representatives distribute Marico's as well as alliance brands through this vibrant network.
Sales Capacity:
We have made significant progress in the areas that enhance sales capacity.
• Quality of our distributors
• Quality and number of the distributor field force
• Upgradation in the role of the company's front-line sales force.



Training:
Marico believes in investing in the training and development of its field force for:
• Regularly upgrading skill sets.
• Providing an understanding for leadership enhancement
Information Technology (IT) in Sales:
Marico has been making investments in IT to ensure:
• Supply Chain efficiencies
• Availability of the SKU at the right distributor point, at the right time in right quantities
• Timely availability and reliability of Sales MIS, which help in taking prudent decisions on a real time basis.
In order to reap maximum benefits from its sales and distribution network, Marico embarked on an internet-enabled application - MI-Net - to establish a network between Marico and its distributors through a web interface. This project is aimed at providing real time information on the status of various business operations between Marico and its distributors. This initiative is expected to provide business benefits in the form of increased penetration by the sales force, reduced communication costs, reduced working capital requirements, etc. The project went live on April 1, 2002 with connectivity to 330 urban distributors, who together account for about 3/4th of Marico's domestic turnover. The business benefits are expected to accrue over a period of time.





At The End of The Day: We believe that all our efforts and strengths MUST mean a better quality of life for our consumers as the maxim "Consumer is the King" is sacrosanct in our organisation. We strive towards this goal by constantly evolving new methods and practices that enhance the quality of our service. The entire sales organisation strives to be the BEST in CLASS at all times in all respects. These initiatives have been rewarded with increase in sales, greater penetration and happier consumers. Our ability to gather path-breaking insight has led us to untapped rural areas and the results have been great.

Hey lovekesh, you did share a very nice article on international marketing and it is going to help many people. I am also uploading a document which can give some more detailed information. Actually, international marketing is basically the use of marketing concepts to more than one nation.
 

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