When it comes to the cosmetic industry, people are more concerned with the manufacturing method used to create the product. The cosmetics business is currently entering a new era of organic and natural cosmetic products. The emphasis is on creating natural beauty products that are devoid of chemicals and pollutants.
The popularity of organically manufactured products is apparent since they have little or no adverse effects on the skin, hair, or any other area of the body. Taking advantage of this desire for organic goods, Mamaearth has grown into an exceptional business in the cosmetics market, with products that have earned the American Made Safe Certification. This is the first nontoxic cosmetic seal in use today.
Mamaearth is a 2016 Indian brand that has garnered over 1.5 million clients in a few years. Mamaearth competes with large corporations such as Johnson & Johnson, Himalaya, and others. Toxin-free infant care, hair care, and skincare items are some of the products that come from the house of Mamaearth. Varun Alagh and Ghazal Alagh are the company’s founders.
Target audience
Mamaearth began by offering pregnancy, infant care, and hair care items to moms and their newborns. They also offered toys, accessories, and clothing. When the startup first began to grow, it focused on the millennial demographic by providing chemical-free cosmetic items such as creams and serums, face wash, hair oils, and lotion. They also catered to the males by selling lotions, aftershave, and hair oils.
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Business model of Mamaearth
Mamaearth operates on a direct-to-consumer (DTC) model. This implies that they offer their items to clients directly through their website and retail outlets.
They do not employ any middlemen, such as distributors or wholesalers. This allows companies to keep their costs down and provide competitive prices on their products.
Here are the key factors that make the Mamaearth business model unique:
Ability to connect with the target audience
There are many successful businesses across the world, but not all of them have a distinct business model. In reality, the majority of them follow a similar business plan and rely on their brands to grow. But what distinguishes Mamaearth’s business plan from others is its ability to connect with and acquire the trust of its product’s target audience.
When the founders were seeking for toxin-free and natural baby items online, they came up with the idea for Mamaearth. They recognized what most parents wanted for their children, so they created an eco-friendly product line to meet that need. Baby wipes, diaper creams, shampoo, body wash, and bath soap are all available. The products are gentle on infant skin and devoid of dangerous chemicals such as parabens, which are commonly found in cosmetics.
Mamaearth is a “mum-powered” firm that involves many moms in the process, from inspiration and conceptualization through product launch. They created an online platform where mothers can interact and exchange nursing, parenting, and working mom experiences. This contributed to the brand’s reputation among moms, who became devoted consumers after utilizing Mamaearth goods.
Superior high-quality products
Mamaearth is a company that strives to make products that are both safe to use and safe for the environment. They believe in offering high-quality products at reasonable pricing.
Mamaearth has a strong business plan because they have paid attention to the specifics.
Natural components are used in their goods, making them safe for the environment and children. In addition, they solely employ organic components in the manufacture of their products. This allows them to decrease waste while also saving money on raw supplies. They’ve also introduced bamboo-based baby wipes, 100% natural plant-based toothpaste for kids, and skin and hair care products with natural components like onion, CoCo, and charcoal. Because the baby wipes include no chemicals or color, they are completely safe for your child’s skin.
Mamaearth’s creators believe in giving high-quality items to its customers. Individuals suggest Mamaearth items to others. Word-of-mouth marketing has worked wonders for their business.
To attract new clients and keep existing ones, the corporation gives product discounts. They also offer a loyalty program where customers may earn points for purchasing their items. Earned points can be exchanged for cash back or gift cards.
Lean innovation cycle
Mamaearth began as a firm with the goal of producing nutritious meals. The founders intended to develop a nutritious product to assist individuals in changing their eating habits and living better lives.
The entrepreneur had the concept of developing a product that would meet the demands of those who required high-quality meals at a reasonable price. He was a firm believer in experimenting and listening to his customers’ input to ensure he supplied exactly what they want.
Lean innovation enabled them to quickly recognize and meet their clients’ demands. It is a fresh method of approaching business. It is a strategy that enables businesses to constantly enhance their goods and services while minimizing waste and enhancing consumer happiness.
Mamaearth used lean innovation to better understand and meet its customers’ requirements. Experimentation assisted them in improving the quality of their products and developing new product concepts. Using this strategy, they quickly fulfilled their consumers.
Mamaearth marketing strategies
Mamaearth is a well-known brand for its products and services that has been operating for many years. Through its marketing techniques, the corporation also assists individuals in promoting its products.
Influencer marketing
Influencers are those who have a huge following on social media. They can heighten brand recognition and have a favorable impact on your company’s overall success. Influencers are so valuable that many businesses would pay them to promote their products or services.
Mamaearth has collaborated with several online influencers.
Influencers have helped the brand reach a larger market audience. Influencers promote the advantages and applications of these items on various social media channels.
Also Read: Who Are Influencers And How Do Influencers Make Money?
Brand endorsement
When an influencer endorses your products or services on their social media page or blog post, this is known as brand endorsement. This is a frequent technique for firms to employ influencers for marketing reasons since it allows them to reach out to a new audience. It also contributes to customer trust and credibility since they see someone who looks like them supporting something they use or wear every day.
Working with Bollywood actress Shilpa Shetty Kundra as a brand ambassador for Mamaearth has to be their most effective marketing technique. Shilpa is a well-known celebrity, and her endorsement boosts the worth of their business. She has appeared in a number of television episodes, films, commercials, and music videos. Shilpa Shetty’s commercial prominence soared when she became the face of the Tata Nano automobile marketing campaign in India. This was one of the most expensive advertisements in India and it had over 8 million views on YouTube in three days!
Digital ads
Online advertisements are another option for firms for marketing reasons because they are simple to set up, cost-effective, and allow you to reach a large number of people at once. You may also select the type of ad you wish to run based on your budget and campaign objectives.
Mamaearth largely advertises on the internet. They have effectively used digital advertising to expand their consumer base. Their commercials are incredibly catchy and successfully represent their companies.
How Mamaearth earns money?
Mamaearth had around $1.5 billion in revenue and a net profit of $255 million in fiscal year 2016-17. For the past five years, the brand has grown at a healthy rate, as seen by its continually increasing EBITDA margin from 10% to 15%. In financial year 2022, the operating revenue of Mamaearth amounted to 9.4 billion Indian rupees. This was an increase as compared to the previous financial year.
Baby items account for just 20% of brand sales. Skincare and haircare items provide 80% of revenue. In the personal care area, Mamaearth has a good gross margin profile of over 65%. As a result, companies devotes 40-50% of their earnings on marketing.
Mamaearth competes with firms such as Marico, Emami Limited, Johnson & Johnson, Bey Bee, and others. While each of these companies has advantages and disadvantages, Mamaearth’s advantage is its broad product line, which includes personal care items such as shampoos, soaps, lotions, and body washes, as well as household items such as detergents, cleaning agents, laundry detergents, and kitchenware items such as utensils.
Mamaearth competitors
Marico, which sells exclusively natural components free of synthetic chemicals and preservatives, is Mamaearth’s major rival. This makes it difficult for Mamaearth to compete with Marico in this area because most consumers choose to buy natural products over those containing chemicals. However, the brand does offer some unique goods, such as their “Made in India” soap line, which utilizes solely natural ingredients like shea butter or mango butter rather than chemical-based chemicals like Palm oil.
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