Mamaearth is an Indian company that was founded in 2016 and has over 1.5 million customers. With an initial investment of about INR 90 lakh from their own funds, Varun and Ghazal started Mamaearth. Big businesses like Johnson & Johnson, Himalaya, etc. are competitors of Mamaearth.
This business model sells non-toxic skincare, hair, and infant care items. Varun Alagh and Ghazal Alagh are the company’s founders.
At first, the company sold six different products: creams, lotions, shampoos, body washes, oils, and diapers. At the moment, Mamaearth’s business model sells more than 100 goods.
Founders of Mamaearth
The CEO and co-founder of Mamaearth is Ghazal Alagh. She is in charge of the business’s strategic direction and expansion. She is well-known for serving as one of the judges on “Shark Tank India,” a business reality program that premiered in 2021.
She completed intensive courses in modern art, design, and applied arts at the New York Academy of Arts and holds a bachelor’s degree in information technology. As a corporate trainer, Ghazal started her career at NIIT. She mentored managers and engineers in SQL, J2ME, and Oracle as part of her duties at various IT companies.
The co-founder and COO of Mamaearth is Varun Alagh. He is in charge of managing the business’s everyday operations. He graduated from the Delhi College of Engineering and the Indian Institute of Management, Calcutta, respectively, with engineering degrees.
Before helping to create Mamaearth, he had a significant amount of business and marketing experience. Save the Children, a global NGO that aims to better the lives of children all over the world has a collaboration with Mamaearth.
Through this alliance, Mamaearth is able to give back to the community and further their goal of offering organic and Ayurvedic items for moms, children, and newborns.
The Evolution of Mamaearth
Mamaearth has received various honors since its founding, including “One of the Best Brands” at the 2019 ET Brand Festival. Additionally, the business has been highlighted in renowned magazines like Forbes India, YourStory, and Entrepreneur. Fireside Ventures provided Mamaearth with $1 million in Series A funding in 2018.
The company was able to broaden its product offering and attract more clients thanks to this financing. Due to its robust web presence, expanding client base, and cutting-edge product lineup, Mamaearth is well-positioned for long-term success.
The company has a competitive edge in terms of social responsibility thanks to its affiliation with Save the Children. Mamaearth is well-positioned to have a substantial influence on the natural and Ayurvedic product sectors thanks to its recent cash infusion.
The six-year-old company primarily employs influencer marketing and social media to advertise its product lines on digital marketing platforms.
Mamaearth’s Business Model: How It Operates
Mamaearth’s business plan is simple to understand. Under the permission of the Mamaearth brand, the company develops products that are later produced by contract manufacturers. Mamaearth primarily sells online through direct-to-consumer (D2C) channels like Amazon, Flipkart, etc., as well as various offline retailers. They are present across all platforms.
The uniqueness of the Mamaearth business model
1) Reaching their target audience: Gaining the trust of your target market is the most crucial thing for any brand. Mamaearth executed this to perfection. They produced commercials specifically for mothers and targeted them from the beginning.
Mamaearth’s founders themselves came up with the concept for the company while searching online for natural, toxic-free baby supplies; thus, they were aware of what parents desired for their children.
They created a website where mothers can interact and exchange stories on breastfeeding, raising children, and leading a working life. Due to this, MamaEarth was able to develop a favourable image among moms, who later became devoted consumers after utilizing the company’s products.
2) Product of Outstanding Quality: The creators of Mamaearth are committed to giving their consumers high-quality goods.
People recommend their products to others since they are of outstanding quality. Their brand has benefited greatly from word-of-mouth advertising.
Additionally, they have unveiled bamboo-based baby wipes, all-plant children’s toothpaste, and skin- and hair-care products with organic components including onion, CoCo, and charcoal. The absence of chemicals and coloring makes the baby wipes completely safe for your child’s skin.
3) Cycle of Lean Innovation: Lean innovation is based on the idea that you should continuously seek to improve efficiency by hearing what your customers have to say. Experimentation and ongoing product quality improvement should be your top priorities.
Mamaearth was able to recognize and promptly meet its customers’ demands because of lean innovation.
They used experimentation to improve the quality of their goods and come up with fresh product concepts. They used this technique to quickly satisfy their customers. Due to its robust web presence, expanding client base, cutting-edge product lineup, and dedication to sustainability, Mamaearth is in a position to succeed in the long term.
Marketing strategy of Mamaearth
In order to provide products suitable for a baby’s delicate skin, Alagh founded the Honasa Consumer brand Mamaearth.
The epidemic then broke out. When other FMCG businesses were suffering the worst effects of the lockout, Mamaearth, which now also made personal care products, managed to grow at a 400% rate.
Let’s look at the marketing strategies the company employed to build its reputation.
1) Tagline for the brand: “The company offered simple household goods that were suitable for use by both adults and kids.” Therefore, it was essential to communicate with them in order to foster trust and increase recall value.
Their straightforward slogan is “Goodness Inside.” People might better understand the kinds of products that the brand makes and supports.
2) Using actors to endorse brands: The brand selected actress Shilpa Shetty as its brand ambassador in order to promote fitness and health. Sara Ali Khan, however, was picked to represent the company in 2021, giving it a more modern feel.
The business had started the integrated marketing campaign #IssWinterGlowNaturally with actor Shilpa Shetty Kundra.
She suggests using Mamaearth honey malai as a less complicated way to provide one’s skin with the water and nutrition it requires during the winter. The film serves as a simple yet powerful example of the brand’s philosophy and its commitment to promoting goodness within each individual.
3) Blend of traditional and digital marketing: The marketing mix used by Mamaearth includes both digital and conventional marketing methods.
Google Ads and Search Engine Optimization are a couple of their digital marketing strategies. Several well-known publications and websites, including Vogue, Elle, and Forbes, have also highlighted Mamaearth. The business has also garnered a number of accolades, which aid in raising brand awareness.
Because it reaches its target demographic through a variety of media, Mamaearth’s marketing plan is successful. When potential customers are looking for the things that Mamaearth sells, they can more easily reach the website thanks to search engine optimization.
4) Digital advertisements: Mamearth uses digital marketing platforms to their full potential. The primary objectives of Mamaearth’s digital strategy are to draw in a sizable audience, create a memorable brand identity, comprehend what customers want, and keep in touch with them.
Internet advertising is the main application of Mamaearth. They have successfully utilised digital advertising to grow their consumer base. Their advertisements properly represent their brands and are quite memorable.
Mamaearth Funding and Valuation
Over the course of 8 rounds, Mamaearth has raised $126 million in total fundraising; their most recent round was an angel round in September 2022. As of September 22, Mamaearth has ten investors backing it and a post-money valuation of $1.2 billion.
Fireside Ventures provided $125 million in seed money for Mamaearth in 2016 and $1 million in venture funding in 2017.
A $4 million Series A financing from partners at Fireside and Stellaris Ventures came after that in 2018. Mamaearth raised $17 million in Series B funding in 2020 and $37.5 million in Series D funding in December 2021 from Sequoia India.
Mamaearth has attained unicorn status, which means that its current value exceeds $1 billion, with its most recent round of funding. It is now one of the select few firms in India to have accomplished this milestone. With its new capital, Mamaearth intends to broaden its product offering and attract more clients.
The source of Mamaearth’s income
Mamaearth makes money by selling products, charging for subscriptions, and running ads. Customers may easily locate what they need thanks to the company’s extensive selection of products. Digital content is the only focus of Mamaearth’s customer acquisition strategy.
Their primary goal is to make the most online goods sales possible. They generate revenue by selling goods on Flipkart, Amazon, and other comparable e-commerce platforms. Surprisingly, sales of infant products only account for 20% of the brand’s earnings. Contrarily, skincare, and haircare items account for 80% of sales.
Because Mamaearth falls under the personal care sector, they have a good gross margin profile of roughly 65%. Therefore, they are able to spend 40–50% of their income on marketing.
How Mamaearth is outperforming its rivals
Due to the availability of natural and Ayurvedic items, as well as its emphasis on quality and safety, Mamaearth has been able to outperform its rivals. The part will also discuss the organization’s effective supply chain and manufacturing process.
The Moms Co., Lotus Herbals, Johnson & Johnson, Marico, Emami Limited, and Bey Bee are some of Mamaearth’s rivals.
Additionally, Mamaearth faces increased competition in general as companies with a toxin-free attitude continue to mushroom in today’s economy. The use of natural and organic materials distinguishes Mamaearth’s offerings from those of its rivals.
Additionally, the business is concerned with quality and safety, ensuring that each of its goods complies with high standards. Additionally, Mamaearth has an effective manufacturing procedure and supply chain, which enables it to keep costs down and pass savings along to its clients.
Conclusion
Fundamentally, they were able to achieve incredible heights because of Mamaearth’s fantastic products. They have a thorough understanding of their customers’ demands and provide outstanding service in meeting those needs. Many entrepreneurs find inspiration from Mamaearth. Their income and business models are straightforward but efficient.
