How MamaEarth Destroyed competitors ? | Mamaearth Billion-DollarStrategy | Business Case Study of mamaearth business model of mamaearth Without business experience, ITM degree and crores of funding can you build a 10,000 Crs company? Seeing her child in pain, a helpless mother takes a decision Who knew that decision would make 10,000 Cr company? Who thought that this lady from small town of Chandigarh, who didn’t knew B of Business Would analyze many businesses on Indian Entrepreneurship show – Shark Tank. Mamaearth How a company started 5 years ago is beating big brands like Dabur, Johnson&Johnson, HUL ? What is so special about Mamaearth? And most importantly what are those powerful business lessons we can learn from mamaearth and implement in our business?
What is mamaearth?
Mamaearth is one of the biggest D2C brands in India. mamaearth startup is currently valued at 1.2 billion dollars making it one of the most valued startups in India. Mamaearth was started by Ghazal alagh and Varun Alagh in 2015 when ghazal noticed that her son Agastya was facing issues while using skin care products. Mamaearth was started as a D2c babycare brand with just 6 products and today the brand is catering more than 200 products in the marketplace. The Journey off Mamaearth has been very exciting from facing trust issues to collaborating with made safe.Ghazal alagh proved to become an entrepreneur without any prior business experience, Ilt-IIM Degree, or funding. Today Ghazal alagh sits as a judge in the Indian entrepreneurship show Shark Tank judging more than 100’s of business. This video is a complete business case study on Mamaearth, the video covers various business strategies used by Ghazal alagh to turn Mamaearth into a billion-dollar D2C brand in India. This Article is a complete business case study on Mamaearth covering various business lessons from Mamaearth’s business model which one can implement in their business.
How Mamaearth was Started?
So the story starts in 2016, when 28 year old Ghazal Alagh became mom for the very first time. Most of the time when a lady becomes mother for the first time, they are fear taking care of the child. B’coz of no experience. Ghazal Alagh’s son – Agastya was born with a special kind of skin condition. When she applied anything on his skin, he used to feel irritation and he used to start crying. Ghazal tried every company product, nothing suited him. And seeing no escape, she shifted to foreign brands. And interestingly all foreign brands used to suit Agastya. It was a happy thing but there was also a very big problem. The problem was many foreign baby care brands were not available in India. And they had to import these products from foreign and it was very costly. And when something is too costly how can a middle class family afford it? And this thing pinched Ghazal. Ghazal talks and discusses this problem with her husband. Her husband used to say only one single thing – Try it yourself, hope things change. And from here Mamaearth started. A product which started with only 6 products have now more than 200 products in market. The question is how Mamaearth did this?
how Mamaearth did this all ?
So the answer is hidden in this list. Consumer profile looks something like this.
- 1) Age and Gender
- 2) Consumer Education – How much consumer know about product?
- 3) Spending Capacity – How much consumer can spend on product? And
- 4) Availability- Is the product available where consumer lives or not?
what was the biggest difference between foreign baby care products and Indian products which mamaearth captured?
Foreign brand products were toxin free products Which means they didn’t include any chemical or ingredient in their product which produced toxins on baby’s skin. Interestingly there are more than 1500 ingredients banned to use in baby care products in foreign. Unfortunately there are no such rules and regulations in India. While customer profiling, Ghazal Alagh found that 95% of the people who brought baby products were Moms. But Moms don’t have any proper education about which products to use on baby’s skin and which not. They didn’t knew which product is good for their baby’s skin and which is harmful. So to solve this problem Ghazal Alagh started talking to many baby care product manufacturers. And asked them than Can we make baby product using toxin free products? And everyone gave the same response – “Yes Ma’am, we can make but no one is making it in India currently” And from here Mamaearth’s journey accelerated.
First Product of Mamaearth
Firstly, they worked and made 6 baby care products and launched in market. During initial days, they distributed them to their friends and relatives and asked for reviews. “Use these products and tell us what’s lacking in them, what things we can improve. ” “Are these products suitable to your kids or not? ” Use them and tell us Whatever may the response be, Ghazal Alagh took the feedback and made improvements. When all this was going, same question was asked many times.
Challanges Faced by mamaearth
The question was- Why should we trust you ? What’s special about you so that we we buy your products? We won’t buy. B’coz at that time Dabur, HUL, Johnson and johnson – these brands were ruling the market.
These brands were ruling the market. People blindly trusted the brands. Then why should they trust Mamaearth ? For this solution Mamaearth colloborated with MadeSafe – a US non – profitable company. MadeSafe does safety testing of health care and beauty products. You will get shocked to know that – Mamaearth is Asia’s first and one and only brand who has MadeSafe Certification. MadeSafe made work of Mamaearth more easy. But still there was a big problem in Indian market. They got MadeSafe Certification but many Moms didn’t knew that the products they are using on their children are harmful. The situation was such that when Ghazal told people that my products are Sulphate free.
People used to ask her – ‘What’s free with your mamaearth product?
To tackle this problem, Ghazal started educating their old customers. Most of the Mamaearth’s old customers were ladies and you know how ladies are. If a lady knows about a thing which no one knows in her friend circle, She proudly shares that information. The things Mamaearth was telling in market that what’s good for kids and what not, Many ladies didn’t knew about it. When one lady used to knew this, she happily shared in her group. This thing kept increasing day-by-day and Mamaearth became very popular among ladies. Then Mamaearth raised some funding and then by digital and influencer marketing started capturing market. But still the question is –
Without any business experience or business background, How Ghazal Alagh did this things ?
See those people who has used Mamaearth products would be knowing that – Mamaearth’s products are expensive compared to normal products. Most of the Mamaearth’s products come in premium category.
How Mamaearth is successful in a country (India) which is price sensitive ?
The answer is Consumer Insights and Personalism. Now understand this carefully. If you see any beauty product ad, you would find one thing comman. The comman thing is – It’s all about you. In any beauty care ad any brand will not talk much about the product, they will always talk about you. You know why ? B’coz Beauty care products are damm personal. And so most of the ads are made to target your self esteem or your insecurities. The question is ..
How this thing applies to baby care products ?
So the answer is hidden in Mom’s Psychology. The psychology of Indian Moms are set such that they would always think about family and kids first then themselves. And due to this reason Kid’s Horlicks is hit and Woman’s Horlicks is fail. Ghazal collected more than 700 ladies consumer insights, took feedback, made improvements and kept going. They introduced such products in market which Moms can trust blindly. And when Mamaearth made products based on these consumer insights a message was sent in market that We are also a part of this product, our say is there in this product. And then sales of Mamaearth sky rocketed. And ladies didn’t cared about cost – they are expensive than normal products or not.And most importantly,
What are those powerful business lessons we can learn from Mamaearth and implement in our business ?
1) Be Everywhere and make Profits Go as far as you can go for profits. Mamaearth is a premium brand whose profit margin varies between 60 – 65% and so its a profitable startup. Mamaearth is a D2C brand. They started it by selling online but today they have done partnerships with more than 3000 retailers. So they are online as well as make their presence offline, so they don’t miss any customer. When one thing becomes successful we get stuck only in it. And this is our biggest mistake. In 2007, Steve Jobs changed Apples Computers Incorporations name to Apple. B’coz now Apple was going to enter in many different products. And then iPhone, iPad, iWatch – Apple launched this products. And at todays date Apple’s 50% of revenue comes from iPhone and only 11% from computers. Mamaearth started with 6 baby care products and today Mamaearth sell more than 200 products. And shockingly there 20% sale is from baby care products. There 80% sales comes from personal care products not baby care. Mamaearth launched beauty care products for not only kids but for Mom, Dad and teenager. And due to this reason Mamaearth become a 10,000 Crs company.
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FAQs Related to Mamaearth..
What is so special about Mamaearth products?
According to Mamaearth, Mamaearth products are made from natural ingredients only and 0% toxins.
Is Mamaearth harmful?
Mamaearth’s products are all non-toxic and completely safe for your children. Chemical-free, natural, and dermatologically tested, all of the items are available.