Mamaearth was an Indian start-up founded by Ghazal Alagh & Varun Alagh. The company was started in September 2016, and its head office was in Gurugram. Honasa Consumer Pvt owns the company. Limited.
The article is written about the success story of
mamaearth which create toxic-free cosmetic products and Natural care & Baby
Product.
Mamaearth
was awarded by 1st “MADE SAFE” Certification & It is the 1st
Asian Brand for this Award.
Mamaearth
Founders
Ghazal Alagh
Ghazal Alagh was a Co-founder of Mamaearth, also known as the
Chief Innovation Officer of Mamaearth. She was born in Gurgaon, Haryana India.
She had completed her education in BCA (Bachelor of Computer Application) from
Punjab University.
Varun Alagh & Ghazal Alagh Biography, Lifestyle, Net worth, Achievement,
and their Family Members.
Varun Alagh
Varun Alagh is the Co-Founder & CEO of the company. He
comes from the FMCG industry. Having completed his DCA & MBA from XLRI
Jamshedpur, Varun Alagh worked for Hindustan Unilever, Smirnoff, and The
Coca-Cola Company before founding Mamaearth. He later founded Honasa Consumer
Private Limited. the parent company of Mamaearth.
Let’s Begin The Success Story Of Mamaearth which become a
Well-Known Established Brand in the Asian organic Skincare Industry and currently
working on Expansion For competition with Foreign Brands.
Throughout this story, we will describe the
challenges they faced to build the company and compete with top skincare
brands. We will also describe their business strategies and present their
current business model.
They got the idea when their first
child Agastya Alagh was suffering from
skin problems as a small child, and his mother Ghazal Alagh was trying to use
Indian baby care products, and her child was crying because of irritation and
pain, so she started using foreign skincare product, and after that Agastya
felt comfortable using foreign products.
Ghazal wondered why Indian Baby skincare products
were not suitable for Agastya, and she began researching skincare products.
Varun and Ghazal were not business-oriented families, so they struggled a lot
to make their brand name known.
Studying what types of materials are used to make
skincare products and analyzing what harmful products are mixed with Indian
skincare products.
Based on their analysis of the market problem and
solutions in skincare products, they have launched two categories of products:
Body Lotion and Skin Care.
Now, It’s time to Come into the market and Shows what is Unique in Mamaearth
Products?
Varun
and Ghazal analyze the marketplace to understand what types of harmful skincare
products are in the market, so they can determine which strategies they can
employ to conquer the market and compete with Dabur & Johnson &
Johnson.
Now Here Comes the strategies Used By Mamaearth.
The Non-Toxic and Non-Harmful Product:
- Basically, Varun and
Ghazal knew that they needed to focus on Non-Toxic and Non-Harmful products and
that is why the products they produce will be more expensive than other
products on the market. Nevertheless, they understand that India was
developing, and all they need to do is prove that their product was non-harmful
and natural.
The Second Step is To Get
Feedback From Customers: - They were focused on getting feedback from
customers and letting them know what makes their product different from the
rest on the market.
But here also they start facing Many problems, that why
should they use their product which was more costly from the market product.
So, Firstly they collaborated with MADE SAFE which
was Non- A profit organization in the US that tests whether the Product is Safe for human
skin and health care or not (MAMA EARTH was the Only Brand that was certified by MADE
SAFE).
But this certificate was not recognized by Indian customers.
Therefore, they started showing what type of harmful products were contained in
Indian Skincare Products available on the market at that time. They presented
how their product benefits females & women because if they capture the
female customer then it will be easier to dominate the market.
The third strategy is to target people: -
Mamaearth is constantly improving its product and then targeting women for
sales by explaining the benefits of its products to Small Baby and Skin Glow. When the customer understands and tries Mamaearth's
product, he is satisfied with it.
The fourth Strategy was Advertisement: - When Mamaearth was slowly dominating the
marketplace, they began advertising the product with Shilpa Shetty and Actress
Samantha Ruth Prabhu. They also use social media for huge
promotion of their products, such as Instagram Influencers, YouTube Content
Creators, and Facebook Advertising.
Mama Earth Business Model.
Mamaearth works on a Direct-to-Consumer model
(Direct-to-Consumer, or D2C). In this business model, initially, the product
was available on e-commerce sites like Amazon & Flipkart and then they
built their own website to market their product and also influence their
product with social media influencers. Now the company is also launching in
Retail chain business model.
Mamaearth Ownership
The majority stake in Mamaearth is held by Varun
Alagh, which is around 38.72%. The next is Sequoia Capital, which holds up to
15.22% of the next company is fireside ventures, which holds 12.04 %, followed
by Stellaris venture, which holds 10.24 %, and other shares were divided into
different ventures.
Mamaearth – Future planes
In the future, the company hopes to
expand its business into different segments of skincare and beauty products
and also to expand into other countries with the products they manufacture.
The company will also launch an IPO in the next 12-15 months, according to company sources. It will be launched in FY24.
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