Parachute Advanced Hair Oil:

Parachute Advansed oil is one of promising and most selling brands in the Value Added Hair
Oil family of Marico Bangladesh. It is one of the most demanding product in its category and
leading business since its inception. It is perfumed hair oil that is developed to give
consumers both the healthiness of coconut oil and methi or fenugreek. As named this hair oil
leaves the hair with a gentle and nice perfumed beliphool or jasmine flower as we know. The
uniqueness of this product offers a non-sticky, shiny and healthy hair for its consumers who
want to step forward and try something unique from traditional coconut hair oils. It is
designed to fulfill the demands of new generation’s female hair oil users who do not want to
give up nourishing their hair at the same time want to look and feel lively hairs.

Competitive Analysis
For the competitive analysis part I would like to compare Unilever Bangladesh and Marico
Bangladesh Limited side by side. Unilever Bangladesh is the first largest fast moving
consumer goods manufacturing multinational company of Bangladesh.
 1. Employee Number: Around 10,000 1. Employee Number: Around 2,900

2. Active Brand Numbers: 20 2. Active Brand Numbers: 12

3. Market Leader in 7 out of 8 3. Market Leader in 2 out of 4 category

category 4. Management Structure consists of 5

departments
4. Management Structure divided into
5. Brand Category includes hair care,
7 departments men grooming products and health
food
5. Brand Category includes Home
6. Ownership: 100% to Marico
care, personal care and foods. Bangladesh limited

6. Ownership: 60.75% to Unilever and

39.25% to Government

PESTEL ANALYSIS
Political Economical

1. Strong government at the center in 1. Innovative products to support the

India ensures political stability. fight against Covid-19

2. Expansion potential in countries

with good political relations and
high expatriate population.
Social Technological

1. Increase in disposable income and 1. Focus on digital consumer and

discretionary spending by the employee engagement.
Indian middle-class segment

2. Inclination towards healthy

 lifestyle products

Legal Environmental

1. Legal battles for trademark 1. Environmental protection and

infringements and advertisements sustainability initiatives.

2. Enhancing recyclability of
packaging

Political Factors
Other stakeholders such as non-government organizations, protest & pressure groups, activist
movements play critical role in policy making in Bangladesh. Marico should
closely collaborate with these organizations so that it can contribute better to the community
goals as well as with corporate goals.

Changing policies with new government

Studying the current trends it seems that there can be a transition of government in
Bangladesh
in next election. Marico has to prepare for this eventuality, as it will lead to change in
governance priorities of Consumer/Non-Cyclical sector.

Governance System

The present governance system in Bangladesh has served its purpose for the long time and I
do not think much will change in the process even though it may throw up leaders that can
lead divergent policy making from the historical norm. Marico has to keep a close eye on the
industry wide government priorities to predict trends.

Taxation policies

Over the last two decades Marico has benefitted from lower taxation policies throughout
the western hemisphere. It has resulted in high profits and increasing spending in the research
and development. The increasing inequality in Bangladesh can lead to changes in the taxation
policies. Secondly, local governments are also looking into Personal & Household Prods.
Specific taxation policies to contain the carbon footprint of the Consumer/Non-Cyclical
sector.

Government resource allocation and time scale

The Bangladesh new government policies can improve the investment sentiment in the
Consumer/Non-Cyclical sector. Given the wider acceptance of the suggested policies among
population, it is safe to assume that the time scale of these policies will be longer
the mandated term of the present India government.
Regulatory Practices

Marico has to manage diverse regulations in the various markets it is present. Over the last
few years, Bangladesh and other emerging economies have changed regulations regarding not
only market entry but also how companies in Personal & Household Prods can operate in the
local market.

Economic Factors
Government intervention in the Consumer/Non-Cyclical sector and in particular Personal &
Household Prods. industry can impact the fortunes of the Marico in the India.

Efficiency of financial markets in Bangladesh

Marico can access vibrant financial markets and easy availability of liquidity in the equity
market of Bangladesh to expand further globally.

Inflation rate

The easy liquidity in the market post the great recession of 2022 will lead to increasing
inflation in the Bangladesh economy.

Economic Cycles

The performance of Marico in Bangladesh closely correlated to the economic performance

of the Bangladesh economy.
The growth in last two decade is built upon increasing globalization and utilizing local
resources to cater to global markets.

Skill level of workforce in India market

The skill level of human resources in Bangladesh is moderate to high in the Consumer/Non-
Cyclical sector. Marico can leverage it not only to improve services in Bangladesh but also
can leverage the skilled workforce to create global opportunities.

Economic Performance of India

I believe the economic performance of Bangladesh in the near future 5-10 years will remain
stable given government expenditure, stable demand because of disposable income, and
increasing investment into new industries.
Social Factors
Access to essential services

By and large over the last decade and half the wider population in getting access to essential
services in Bangladesh. This has been a result of increasing investment in public services.

Power structure

There is an increasing trend of income inequality in Bangladesh. This has altered the power
structure that has been persistent in the society for over last 6-7 decades.

Gender roles

The gender roles are evolving in Bangladesh. Marico can test various concepts to cater to
and support these evolving gender roles in India society.

Education level

The education level is high in Bangladesh especially in the Marico sector. Marico can
leverage it to expand its presence in India.

Migration

The broader attitude towards migration is negative in Bangladesh. This can impact Marico
ability to bring international leaders and managers to manage operations in the country.

Attitude towards health and safety

With increasing liberalization the attitude towards health and safety are getting lax. Marico
needs to stay away from these attitudes, as the cost of failure is too high in Bangladesh.

Technological Factors
Maturity of technology

The technology in the Personal & Household Prods. Sector has still not reached maturity and
most players are vying for innovations that can enable them to garner higher market share in
Bangladesh.

Empowerment of supply chain partners

Technology has shortened the product life cycle and it has enabled suppliers to quickly
develop new products. This has put pressure on Marico marketing department to keep the
suppliers happy by promoting diverse range of products. It has added to the cost of
operations of the Marico.

Technological innovation is fast disrupting the supply chain as it is providing greater

access to information to not only supply chain partners but also to wider players in
the Consumer/Non-Cyclical industry.

Technology transfer and licensing issues for Marico

In the Consumer/Non-Cyclical sector there is no strong culture of technology transfer and

companies often are reluctant to transfer or license technologies for the fear of creating
competitors out of collaborators.

Latest technology based innovations implemented by competitors of Marico

Thiscan provide a good insight into what the competitors are thinking and where Personal &
Household Prods. Business model future is.

Intellectual property rights and patents protection

If Bangladesh have higher safeguards for legal PR and other intellectual property rights then
more and more players are likely to invest into research and developmen

Legal Factors
Time take for business cases in court

Some countries even though follow international norms but the time for resolution often run
in years. Marico has to consider average time of specific cases before entering an
international market.

Business Laws

The business laws procedure that Bangladesh follows. Are these norms consistent with
international institutions such as World Trading Organization, European Union etc.

Environment Laws and guides

The level of environmental laws in the India and what Marico needs to do to meet those laws
and regulations. Health and safety norms in the India and what Marico needs to do to meet
those norms and what will be the cost of meeting those norms. Legal protection of intellectual
property, patents, copyrights, and other legal rights in Bangladesh. How Marico will
influence if there are not enough protection

Data protection laws

Over the last decade data protection has emerged as critical part of not only privacy issues but
also intellectual property rights. Marico has to consider whether India have a robust
mechanism to protect against data breaches or not.