Table of Contents
ToggleMamaearth success story began as an unknown start-up firm in 2016, and today, it is ranked #7 in Indian food and personal care market. The brand is known for its commitment to only use organic, natural ingredients.
This article illustrates the Mamaearth marketing strategy in light of marketing mix framework. The analysis covers every aspect of marketing including, Mamaearth’s product, pricing, distribution and promotional strategies.
1. Company overview
Name | Mamaearth |
Founding year | 2016 |
Parent company | Honasa consumers ltd. |
Headquarters | Haryana, India |
CEO | Varun Alagh |
Number of countries | Only India |
Number of employees | 739 |
Mamaearth equity structure | Founders |
Sequoia capital | 17.7% |
Fireside ventures | 16.51% |
Stellaris venture | 12% |
Angel investors | 9.8% |
Mamaearth brand value | ₹98.19 billion |
Mamaearth revenue 2022 | ₹943 crore |
Mamaearth profit 2022 | ₹14 crore |
With zero chemicals, as the brand claims, is Mamaearth a good brand?
A recent study on Mamaearth brand revealed around 33.5% customers consider Mamaearth a good brand and fully trust on it, 24.3% consider some Mamaearth products good, 24% are indifferent, and 9% do not consider Mamaearth a good brand.
2. Mamaearth marketing strategy
2.1. Mamaearth product strategy
2.1.1. Mamaearth product strategy
Mamaearth adopts differentiated product strategy. Instead of focusing on prices, the brand focuses on superior product quality, innovation and excellence. Key product offerings include-baby care, skin care, hair care, body care, fragrances and color cosmetic products- all made of natural ingredients and toxin-free chemicals.
2.1.2. Mamaearth target market
Mamaearth’s products primarily target mothers of young babies. Brand also targets teenage girls and women (middle class) by offering a range of makeup, skin and haircare products.
Here is Mamaearth segmentation-targeting-positioning analysis:
Segmentation | Targeting | Positioning |
Segmentation based on age, sex, marital status and income | Teenage and middle aged women, mainly married with infants and young children from middle and upper middle class | A caring, organic, all-natural, and friendly brand |
2.1.3. Mamaearth unique selling point
Superior quality, all natural ingredients and use of toxin free chemicals.
2.1.4. Mamaearth products 2023
In 2023, Mamaearth plans to launch new product categories in color cosmetics and fragrance segments. The portfolio expansion across a full spectrum of personal and beauty categories will help brand penetrate further into the vast Indian market.Mamaearth will also target men by launching a new product line for them.
2.1.5. Key success points
Broad portfolio with clear differentiation strategy,and strong positioning as an organic brand that uses natural ingredients. Emphasis on product innovation, and winning customers’ trust on the product quality.
Mamaearth products are good or bad?
A survey with 120 Indian beauty customers revealed that majority of the customers trust the brand, and frequently purchase from Mamaearth.
2.2. Mamaearth pricing strategy
Mamaearth uses hybrid pricing strategy that mainly comprises premium pricing, bundle pricing and competitive pricing:
2.2.1. Premium pricing
Mamaearth primarily employspremium pricing strategy. The strategy is well-aligned with its premium image, and superior product quality. To maintain brand uniqueness, Mamaearth restricts the production and sales by charging premium prices.
2.2.2. Bundle pricing
Other than premium pricing, Mamaearth also uses bundle pricing strategy that encourages customers to try its new products. For instance, it bundles the face and body products, and offers 20% discount on purchasing the bundle.
2.2.3. Competitive pricing
Mamaearth also considers what competitors are charging while setting the prices, and its prices are almost similar to its closest competitor- WOW. Despite charging similar prices, Mamaearth is experiencing much faster growth than WOW, as depicted in following graph:
Source: 5Paisa
2.2.4. Mamaearth price range
All Mamaearth products are available within price range of ₹200 to ₹800.
2.2.5. Expense breakdown
Despite charging premium prices and growing revenue, Mamaearth struggles to increase the profit due to high operating expenses. Here is a glimpse of Mamaearth’s financials 2022:
Source: ENTRACKR
Mamaearth’s total expenses have raised more than the operating revenue, resulting into a decline in profit by 50.3% from 2021 to 2022.
2.2.6. Key success points
Mamaearth’s premium pricing strategy is well-aligned with the organic, all-natural brand positioning, premium brand image, and product strategy that focuses on superior quality.
2.3. Mamaearth place strategy
2.3.1. Mamaearth distribution strategy
Mamaearth mainly relies on the online distribution channels by employing Direct-to-customer approach, but brand has recently announced to expand offline presence in 2023 through exclusive brand outlets.
2.3.2. Aggressive offline expansion
Currently, 90% of company’s revenue comes from online channels. The brand aims at making at least 25% revenue through offline distribution in upcoming years by pursuing aggressive offline expansion.
In 2021, Mamaearth expanded its offline presence in 15 cities through 35 exclusive outlets, and eyes at further expansion through EBOs all over the India.
2.3.3. Mamaearth business model
Mamaearth business model is simple and straightforward. Company designs the products, contract manufacturers then produce the product under permit of brand. The business model mainly relies on online selling, but includes offline channels as well.
2.3.4. Key distribution channels
• Online D2C channels- mainly Flipkart and Amazon
• Offline distribution channels- Exclusive outlets, retailers, supermarket
2.3.5. Omni channel retailing
Mamaearth employs Omni-channel retailing strategy by ensuring strong online and offline presence through social media, general trade and modern trade outlets. Recently, brand announced adding exclusive brand outlets as an extension to the Omni-channel strategy. The purpose is to strengthen the visual connection with customers, and bring brand experience into physical world.
2.3.6. AI as go-to-distribution tool for Mamaearth
Mamaearth uses artificial intelligence to make well-informed manufacturing, inventory and distribution decisions. The tech-driven approach enhances effectiveness of Omni-Channel retailing, helps brand in seamless order placement, and improves its tracking capabilities. It ensures the timely delivery, and drives the customer satisfaction.
2.3.7. Key success points
Careful selection of the distribution channels to ensure easy access, yet maintains the exclusive brand image, considers customers’ preferences, and makes an innovative use of technology while distributing products to end customers.
2.4. Mamaearth promotion strategy
One of the key reasons behind Mamaearth success story is its innovative marketing and promotional strategy. Mamaearth marketing head– Anuja Mishra says the rising inflation is forcing marketers to be creative, decisive and analytical.
An example of this creativity is how Mamaearth uses celebrities and influencers for promotion.
2.4.1. Mamaearth influencer marketing
Although, other brands also hire celebrities and influencers, but what makes Mamaearth different?
Brand narrows down the focus on particular celebrities whose image and personal values associate to the Mamaearth’s brand image and values. Like, Shilpa Shetty- the face of Mamaearth is a big supporter of all-natural organic food in her personal life as well.
2.4.2. Word-of-mouth marketing
Mamaearth pitches the mom bloggers who spread word of mouth. When brand suggestions come from customers, then conveyed message seems more trustworthy and authentic.
2.4.3. Digital platforms
Mamaearth uses digital platforms like Flipkart and Amazon- not only for distribution, but also to raise the brand awareness, and establish strong digital footprint.
2.4.4. Digital marketing campaigns
The focus of Mamaearth’s digital campaigns is to spread awareness among millennials.
Famous digital and integrated marketing campaigns:
Source: Brand Equity
Campaign film (2022) highlights the brand ideology of bringing goodness and wisdom of household Do-It-Yourself recipes
Source: Mama Earth
Plant goodness- establish a caring and responsible brand image. Plan is to plant 1 million trees by 2025.
Source: Mama Earth
Plastic positive- the campaign reassures brand purpose of ‘Goodness inside’- no animal testing, no toxic chemicals, and no plastic impact.
2.4.5. Social networking sites
Mamaearth does not merely post advertisements on social media; rather, it uses social networking sites like Instagram, Facebook and Twitter to actively engage with customers. It hires famous online influencers to raise brand awareness and expand reach to the target market.
Mamaearth also regularly posts videos on YouTube to raise awareness, and engage and interact with the target market.
2.4.6. Traditional marketing
Other than social media, Mamaearth casts famous celebrities in TV ads. The digital marketing focuses on the Millennials, and traditional TV ads extend brand’s reach beyond metro cities.
Mamaearth advertisement cast 2022 includes Sara Ali Khan and Vihaan Samat. Both actors appear in the brand’s national television advertisement.
Source: Media News
Three celebrities on which the brand particularly relies for TV ads include- Shilpa Shetty, Sara Ali Khan and Samantha Prabhu. Mamaearth has also partnered with Viacom18 to sponsor popular shows.
2.4.7. Well-integrated communication
Mamaearth conveys consistent brand message through multiple communication platforms. Like, Mamaearth tagline- ‘Goodness Inside’communicates the core brand message consistently through TV ads, celebrities and social media.
2.4.8. Key success points
Well-integrated communication, high congruence between brand and celebrity image, focus on digital platforms, using social media for brand engagement and awareness, tailoring marketing messages according to customer psychology, and using traditional channels to extend the reach.
3. Recommendations
• Expand portfolio by introducing new brands with specific on particular age groups
• Introduce more products under existing categories
• Consider mergers and acquisition options to further penetrate in Indian market
• Reduce the operating expenses by taking cost cutting measures (like deploying automation and other technologies that enable businesses drive down the costs)
• Introduce products targeting price sensitive customers (considering the rising inflation)
• Keep marketing strategy primarily focused on the digital communication channels
• Ensure that consistent brand message is communicated through multiple platforms
4. Concluding remarks
Analysis of Mamaearth marketing strategy teaches us various lessons. The brand teaches us the importance of innovation, creativity and relevance. Mamaearth knows how to survive and grow even in tough times. Its all-organic, premium priced products, available through online and offline channels, and creatively promoted through a range of online and offline communication channels lays foundation for the brand success.
5. References
mamaearth.in revenue | ecommerceDB.com. (n.d.).
Mint, S. (2022, April 8). Mamaearth’s Success Journey from an Unknown Startup to a Top Organic Brand. Suger Mint.
Redirect Notice. (n.d.-b).
Manchanda, H. U. &. K. (2022, November 3). Mamaearth’s [lt1] scale surges 2X in FY22, stays profitable. Entrackr.
Jain, V., & Retail, E. (2021, February 24). Honasa Consumer, maker of Mamaearth eyes 25% revenues from offline channel. ETRetail.com.
Staff, B., & BrandEquity, E. (2022, November 16). Mamaearth brings honey and malai this winter through new ad with Shilpa Shetty Kundra. ETBrandEquity.com.
Log in or sign up to view. (n.d.).
Log in or sign up to view. (n.d.-b).
Uplift Medianews4u Digital Private Limited. (2022, June 10). Mamaearth launches national TVC for its Onion range featuring Sara Ali Khan. MediaNews4U.