Published by MBA Skool Team, Last Updated: December 02, 2017
Marketing Strategy of Parachute analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Parachute marketing mix, help the brand succeed in the market.
Parachute marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Parachute Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Parachute marketing strategy can be explained as follows:
Parachute is a leading haircare brand based out of India, from the company Marico. The blue bottle is a potent metaphor for coconut oil category which is significantly dominated by Parachute. There have been changes in the container from a tall, sleek bottle with a flick cap to a wide mouth jar bottle which ultimately has a more significant volume. But they have never compromised with the quality. For an ordinary man also they launched 1 and 2 rupee sachets which can be purchased instead of the bottle. By doing this, the company has increased its customer base. With various SKU's ranging from 20 ml to 500 ml, parachute also focussed on season based packaging which will become easy to facilitate primarily at the time of winters. Apart from coconut, jasmine, and aloe vera in hair oil category, as a part of their marketing mix product strategy, they offer baby oil, Ayurvedic oil, and scalp oil as well.
Image: company website
Parachute Price/Pricing Strategy:
Below is the pricing strategy in Parachute marketing strategy:
Being a market leader Parachute follows the price which is currently going on in the market which is then followed by their competitors.
Being an FMCG product they play with variations in quantity like offering extra 20-30 ml at the same price. This pricing strategy in its marketing mix helps Parachute to increase the sales revenue because customers are attracted toward discounts and offers. As the brand is renowned for their new variants like the advanced oil they have value pricing which is a bit higher when compared to their competitors but offers a premium quality alongside. Like every other brand, they have differential pricing for every different variant. This differential pricing strategy helps Parachute to build and position very well in the market.
Following is the distribution strategy in the Parachute marketing mix:
Parachute focusses upon creating a brand on the emotional front which stands upon nurturing the relationship between mother and daughter. The oil is sold all over India be it rural or urban. The critical strategy executed by Marico was to be present in all segments be it demographics or any other, at various points and various sizes. Parachute also placed themselves differently from their competitors by making sure the quality test which said to be 100% pure coconut oil. The parent company Marico has powerful and robust distribution channels. The distribution channels include the distribution of the products from manufacturing factories to the end customers through various retailers. Parachute has tied up with different big retailers such as Big Bazaar, Hypermarkets, More, Reliance Mart, etc. to reach out to the masses. They have a robust logistics system which deals with the distribution of the products from the factories to the various dealers and distributors. The products offered by Parachute are being sold online on amazon pantry, Grofers, Flipkart, etc.
to improve the visibility of the brand at online platform also.
Parachute Promotion & Advertising Strategy:
The promotional and advertising strategy in the Parachute marketing strategy is as follows:
Parachute identified that their customer retention was pretty high so this resulted in the launching of parachute loyalty points which had different benefits when redeemed. In seasonal offers apart from discount they gave hair brushes etc. as gifts on purchase of higher-end SKU's. They had different promotion strategy when it came to rural, which was sponsoring local fun fairs (Mela's) and giving free samples and champis along. For promotions on TV's or media, they have always focussed upon mother-daughter bond which has to be nourished by use of their product. Apart from this tagline like "pure coconut oil Matlab parachute oil" or various new bottles and their caps were their ways of attracting the majority of customers. Hence this shows the marketing mix of Parachute oil.
About Parachute Oil:
Founded in 1987, Parachute is the Flagship brand of Marico. It is also the market leader with 57% market share in the personal care category of hair oils. It was a brave step taken by Marico in late 80's to launch a product of this type, and that risk ultimately paid off. Known for its purity and quality, Parachute as a brand has diversified its portfolio by launching various variants like jasmine, aloe vera, etc.
The most significant success of parachute is innovations in packaging, sizing and tamper-proofing being in such a niche category where opportunities are not much. In the Indian market, the main competitor of this product is Nihar oil.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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