Introduction
Mamaearth is a unique brand in the beauty industry because it doesn’t just sell products but also creates them. It’s not just a business selling cosmetics but an entire ecosystem around the brand and its products. The Business model of Mamaearth involves its business plan, revenue model, its competitors, SWOT Analysis and many more.
Mamaearth focuses primarily on baby-related products, including clothing and accessories, toys, pregnancy care products, skin and hair care products. This company provides toxin-free baby care, hair care, and skincare products.
Business Plan
The business design of Mamaearth is established according to the Cost efficient store model. Mamaearth operates on a direct-to-consumer (DTC) model. The Mamaearth business model has been successful because it allows the company to offer a wide range of products at different price points without losing its identity or compromising on quality. This implies that they offer their items to clients directly through their website and retail outlets. Thus, their business design includes all the operations which are kept in previous 50 years which includes incomes, costs, supply chain and operations, incomes, techniques and functions.
Mamaearth initially targeted mothers and their babies by selling pregnancy, baby care, and hair care products. They also sold toys, accessories, and apparel. When the company started to expand, it targeted the millennial generation by selling chemical-free cosmetic products like creams and serums, face wash, hair oils, and lotion.
Revenue model
The main aim of Mamaearth is to sell as many products as possible online. They earn money by selling products on Flipkart, Amazon, and other similar E-commerce websites.
- Only 20% of the brand revenue comes from baby products.
- The rest of 80% of the revenue comes from skincare and haircare products.
Competitors
There is a lot of competitors in this industry. Here is the list of companies:
- WOW skin science
- Khadi Naturals
- Biotique
- Forest Essentials
- Plum Essentials
- Patanjali Ayurveda
- The Body Shop
SWOT Analysis
Strengths
- Quality Meals & Product Innovation: Mamaearth is a fast-growing company and has actually always valued their consumers by offering them quality meals.
- Reliable Suppliers: The providers of Mamaearth are reliable and dependable. Moreover, they provide the raw products and active ingredients to them on time which attaches the supply chain management procedure.
- Strong Captured Marketing& Promotional Advertisement: They have actually recorded the minds of its consumers through their emotional and strong message advertisements.
- Quick & Fast Delivery System: Mamaearth is popular for its fast shipment. Also, they offer shipment in 30 minutes exactly, if the customer will not get it within 30 minutes then they will provide “complimentary company”. They never get late.
- Pricing Range: All of Mamaearth products are offered to customers in sensible and budget-friendly rates. The clients can get various sizes and offers of the venture of different flavors.
- Customer Services: Social media supervisors of Mamaearth supply 24/7 help on their sites and social networks platforms through which they connect with consumers.
- Strong Brand Equity: Every consumer of Mamaearth recognized it through its valuable services which is making strong brand name equity. This is the factors that the company has many devoted clients.
- Strong Distribution Network: Mamaearth have maintained its circulation network which is the most important strength, now they have expand their distributions in every corner of the world to keep its prospective market worldwide.
- Investment In Technology & Innovation: Innovation and innovations also impacts the organization dining establishments. Mamaearth have combined with other technological companies.
- Goods Return On Capital Expenditure: The more investments Mamaearth has actually made on their services and products, creating incredible franchisees/stores and spending for its worker trainings has return high profits streams in previous years.
Weaknesses
- Low Number Of Outlets: Mamaearth have high number of franchisees for order taking however there are no correct dine-in restaurants of Mamaearth everywhere.
- Franchise Related Issue: Mamaearth is dealing with problems because of dis-loyalty of its franchise employees. As there are variety of franchise and it ends up being difficult to control each worker who cheats.
- Operational Difficulties: As the franchisees are located in every corner of the city, it becomes extremely difficult for Mamaearth to handle its operations.
- Need Of High Technology: The business visions not meet with the innovation they are using now. For this reason, they require to invest more in their innovations to standout in competitive market.
- Net Income: Mamaearth have evaluated that their net incomes are not matching to its really monetary estimations and forecasts. The business has to deal with its sales to increase its net efficiency and earnings.
Opportunities
- New Environment Policies: The brand-new environment policies can develop fantastic the startup. With the smooth environment policies they can gain more take advantage of innovation.
- Demographic Changes: The middle class consumers can also manage Mamaearth. They have segmented their market according to demographical segmentation.
- Population Of Asian Countries: Nations like India, Pakistan and China have high demands for Mamaearth. They admired the quality of their tastes and spices they utilized.
- New Preferences: The stratup can add more flavors in their company, they can include flat corporation in addition to there are many fans of those type of slices.
- Lower Inflation Rate: In some nations the inflation rates are low. This helps the business to manage their expenditures and rates.
Threats
- Direct And Indirect Competition: Its instructions competitors there consists of just venture manufacturing sectors where as in-direct competition consists of numerous fast-food chains.
- Regulated Pressures: Each year the federal government implements brand-new laws and guidelines.
- High Cost: Mamaearth’s current operations and productions involves numerous functions which are expensive. They can work on cost-minimizing techniques to prevent this threat.
- Lack Of Long Term Contracts With Suppliers: The Mamaearth suppliers provide basic materials like veggies and meats.
- Health Awareness And Consciousness Trends: Now a days, people prefer healthy and homemade food rather than junk-food. The health consciousness among the customers can direct impact the sales of the company.
Conclusion
Mamaearth is a successful startup in the field of natural products. It sees itself as business which has grown with good and healthy health care products. The company has developed excellent products with high-quality ingredients that have helped it to reach great heights.
