Marico: Launching Kaya Skin Clinic|Business Strategy|Case Study|Case Studies

Marico: Launching Kaya Skin Clinic

            
 
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Case Details:

Case Code : BSTA141
Case Length : 09 Pages
Period : 1988-2005
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : FMCG

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"Marico's diversification into skincare services in the form of Kaya clinics was an entrepreneurial leap of faith. This was driven by a belief that our deep product-led consumer insight can be leveraged into consumer insight for services. The Marico Incubation Cell was conceived to prototype new business models. We perfected the model through this cell and Kaya was launched. Kaya provides holistic and customized result-oriented skincare solutions/ treatments to its clients."

- Harsh Mariwala, Chairman and Managing Director, Marico Industries1.

Introduction

In 2005, Kaya Skin Clinic, a skin care venture from Marico Industries, one of India's leading FMCG companies, was on an expansion spree. Having strengthened its presence across tier I cities and the metros in the country, it was in the process of establishing itself in tier II cities and towns. The first such launch was made in Coimbatore on August 1, 2005. Marico had plans to open Kaya clinics at Thiruvananthapuram and Kochi by the end of 2005. Since its inception in December 2002, Marico had established a network of 39 Kaya clinics including two in Dubai. The company planned to add another 50 clinics by the end of 2006. Kaya also had plans to expand abroad.

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Background Note

About Marico
Marico, one of the top ten FMCG companies in India with interests in both personal care and healthcare, generated a turnover of about Rs.10 billion during 2004 - 05. Marico's brands and their extensions occupied leadership positions with significant market shares in most categories (Exhibit1).

Marico had come a long way since its inception in 1988, as a spin-off of Bombay Oils with two oil brands (Parachute and Saffola) in its portfolio and net sales worth Rs 100 crore. Marico offered more than 14 products in hair care, edible oil, fabric care and functional food categories, while its subsidiary Kaya Aesthetics was into high-end skin care services and products...

Excerpts >>



1] "Good look, great margins,"www.economictimes.indiatimes.com, 3rd November 2004.

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