The Marketing mix of Parachute analyses the 4Ps of Parachute, including the Product, Price, Place, and Promotions. Parachute is the leading coconut oil brand in India. Parachute is premium edible-grade coconut oil, a market leader. It is synonymous with pure coconut oil in the market & is positioned on the platform of purity. Parachute thus enjoys tremendous equity, trust with every passing generation & loyalty in the urban as well as rural sectors of India. Innovations in the packaging, whether from user-friendliness or aesthetics, have and continue to help Parachute grow.
- Type: Hair oil
- Industry: Personal care
- Founded: 1933
- Founder: A.C. Burman
- Headquarters: Kolkata, India
- Area served: India
- Key people: D. K. Burman (Chairman) and (Mayank Burman)
- Number of employees: 1,000
Table of Contents
Parachute Product Strategy
Parachute, a brand primarily known for its coconut oil, offers a variety of products centered around hair and skin care.
- Coconut Oil: Parachute’s flagship product is pure coconut oil, widely used for hair care, skin care, and cooking. This product is available in various sizes and packaging options.
- Advanced Hair Oils: Parachute has expanded its range to include a variety of advanced hair oils infused with additional ingredients such as aloe vera, jasmine, almond, and other herbal extracts, catering to specific hair care needs like hair growth, nourishment, and conditioning.
- Hair Creams and Lotions: The brand also offers hair creams and lotions designed for daily grooming and nourishment, providing non-greasy formulations for manageable and healthy hair.
- Ayurvedic Hair Oils: Parachute’s product line includes Ayurvedic hair oils, a blend of coconut oil and traditional Ayurvedic ingredients. These aim to address specific hair problems like hair fall, dandruff, and scalp health.
- Edible Oils: In some markets, Parachute has extended its product range to include edible cooking oils, leveraging its expertise in coconut oil processing to offer healthy cooking oil options.
- Skin Care Products: Building on its coconut oil heritage, Parachute has ventured into skin care products that utilize the natural benefits of coconut. These may include moisturizers, lotions, and other skincare items.
- Men’s Grooming Products: Recognizing the growing market in men’s care, Parachute offers a range of grooming products specifically designed for men, including hair gels and creams.
- Hair Gel and Serums: Expanding into hair styling, Parachute also offers hair gels and serums, catering to consumers looking for styling products that nourish their hair.
Parachute Place Strategy
Parachute sells coconut hair oil all over India, both in urban and rural areas. Parachute Hair Oil is sold through retailers like supermarkets, kiranas, baniyas, and general stores. It is also sold in Bangladesh and the Middle East.
Here’s the place strategy of Parachute.
- Wide Distribution Network: Parachute has established a vast distribution network that spans urban and rural markets, ensuring their products are widely available in supermarkets, grocery stores, convenience stores, and beauty shops, making them accessible to a broad customer base.
- Online Retail Channels: Recognizing the shift towards online shopping, Parachute has expanded its presence on e-commerce platforms, partnering with major online retailers to make their products readily available to the digital-savvy consumer.
- Global Market Penetration: Beyond its strong presence in the Indian market, Parachute has extended its reach to international markets, particularly in the Middle East, Southeast Asia, and African countries, catering to the Indian diaspora and local consumers.
- Strategic Placement in Retail Stores: Parachute products are strategically placed in retail outlets, often positioned at eye level and near related products (like shampoos and hair care products) to increase visibility and impulse buying.
- Localized Manufacturing and Supply Chain: Parachute adapts its supply chain and manufacturing strategies to cater to different regional markets effectively, sometimes localizing production to meet regional demands and reduce logistics costs.
Parachute Pricing Strategy
Parachute’s pricing strategy is a well-crafted blend of market penetration and competitive pricing, focusing on delivering value to the company and its diverse consumer base. Here’s an expert perspective on their pricing approach:
- Penetration Pricing for Market Entry: Parachute often employs penetration pricing when entering new markets or launching new products. Setting initial lower prices attracts customers and quickly establishes a market presence, crucial for building brand recognition and loyalty in competitive segments.
- Value-Based Pricing: Parachute’s core philosophy revolves around offering high-quality products at reasonable prices. Their pricing reflects the intrinsic value of their natural ingredients and their benefits, ensuring customers perceive their products as affordable and of high quality.
- Competitive Pricing Strategy: In the highly competitive personal care market, Parachute sets its prices in line with or slightly lower than its competitors, ensuring it remains a preferred choice among cost-conscious consumers without compromising its brand value.
- Product Line Pricing: Parachute employs product line pricing, with different price points for various products based on their features, sizes, and specific benefits. This approach caters to multiple customers with varying needs and purchasing power.
- Psychological Pricing: Utilizing psychological pricing tactics, Parachute often prices products slightly below a round number (e.g., pricing an item at ?99 instead of ?100) to make the cost appear more attractive and enhance sales through psychological appeal.
- Dynamic and Regional Pricing: Understanding the diverse economic landscapes of its global market, Parachute adopts dynamic and regional pricing strategies. Prices are adjusted based on local economic conditions, competition, and purchasing power, ensuring accessibility and competitiveness in different regions.
- Promotional and Seasonal Discounts: Parachute periodically offers promotional and seasonal discounts to boost sales and maintain customer interest. These are strategically timed to coincide with local festivals, holidays, or shopping seasons, driving increased sales and brand engagement.
Through this multifaceted pricing and marketing strategy, Parachute balances affordability with perceived value, ensuring it caters to a broad spectrum of consumers while maintaining a solid market position in the personal care industry.
Parachute Promotion Strategy
It advertises through television, print, outdoor, and digital media. The brand has been endorsed by celebrities like Deepika Padukone, Diya Mirza, Yuvraj, and Sreesanth. Advertising is heavy before Holi & during winter. Popular & effective campaigns like ‘1-hour champi kiya’ (have you done an oil head massage 1 hour before shampooing) help remind people about essential oils & the benefits of oiling before hair washing. Parachute also uses van campaigns and hacks in rural areas to promote the brand. Sales Promotions like “20% extra” were made on the 200ml pack.
Some Recent Video ads and Print ads for Parachute are:
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