As an MBA graduate, I have developed a keen interest in solving case studies. Why? With Case studies, companies make us solve real life business problems which we don't get to experience otherwise in classrooms.
I recently completed the book 'Harsh Realities: The making of Marico'. And Oh! Boy, every chapter in it was a case study in itself.
By giving out the story, it would not only be a crime to take away your chance to learn directly from the founder but also I wouldn't be able to do justice to the prolific storytelling. However, I'll share 4 takeaways from the journey of Marico and its founder, Mr. Harsh Mariwala.
- The importance of travel: While we romanticize travelling for leisure. 2 books have re-instated my belief about the importance of travel for us, even professionally- Shoe Dog (Nike
) and Harsh Realities (Marico Limited
). This article is about the latter. Post his bachelors from Sydenham college, when denied MBA from a foreign university by his father, Mr. Harsh, travelled to USA for a trip. At a grocery store there, he was amazed by the number of brands available for each consumer product. He realized the scope of it in the Indian market where the choices were limited back then. With right marketing, seductive advertising and eye-catching packaging, consumers could be influenced for good. These 3 concepts became the heart of 2 biggest products in the history of Indian consumerism: Parachute coconut Oil and Saffola. How is Parachute still managing to dominate the India market? It is another travel story in itself.
- The family conundrum: My father and his 2 elder brothers have been successfully (financially and together) running the business for 25 years. We, the second generation comprising 6 brothers and 1 sister, have a unique understanding and the drive to do things differently. Which sometimes lead to a hostile conversation. As Prof. Ram Charan, the co-author of the book, says more than 70% of the world's business are family businesses and majority of them dissolve owing to such disputes. However, Mr. Harsh was able to steer away from this possible dead-end. By brining together his cousins and uncles for a convincing that lasted 2 years, he was able to carve out Marico from the parent company. I learnt that with patience and respect for everyone's interest in the family, a mutual decision can be arrived upon.
- Taking on Competition: When Hindustan Lever was trying to enter the coconut oil market, it went full throttle to topple young Marico by cutting down prices, acquiring small brands, heavy marketing (with twice the budget as Marico) and spreading rumors about Marico's acquisition. So much so that Keki Dadiseth, then Chairman of Hindustan Lever even made a threatening call to Mr. Harsh for acquisition. How did Marico and the team prevent this? a. By knowing their product was superior in terms of quality and fragrance. b. Communicating the quality to consumers through high-decibel promotions. c. Believing that Unilever did not have the consumer insights that they developed over decades of research. d. Realizing that Lever appointed a finance guy to wage the war, who had no understanding of the market.
- Having a mentor: Time and again, the book shows you the power of having trustworthy people and mentors around you. People who not only show you the right direction but also support you for the decisions you make.
The story of Marico and Mr. Harsh Mariwala is inspirational. The journey is worth living, if not myself then through the words of the founder. I hope when you read this book, it creates value for you too.
