business plan of mamaearth

Mamaearth Business Model: Details, Marketing Strategy, and Asset Valuation

By Akansha Wednesday April 26, 2023

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.

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.

• Mamaearth Business Model

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Case Study: Mamaearth Business Model, Revenue Model, and Startup Journey

Mamaearth business model & case study – Learn about how a little creative thinking and a lot of hard work helped Mamaearth carve their niche in the ever-growing natural beauty industry. Dhandho Karo

When it comes to the cosmetic industry, consumers are more concerned about the production process followed when creating the product. The industry is now a new era of cosmetic products that are produced organically and in a natural way. The focus is on making natural beauty products free of chemicals and toxins.

The craze for organically produced products is palpable due to their minimal or no side effects on the skin, hair, or any part of the body. Leveraging on this demand for organic products, Mamaearth catapulted itself into an incredible startup in the beauty industry whose products have the American Made Safe Certification. This is the first nontoxic seal for cosmetic products in use today.

Mamaearth is an Indian brand registered in 2016 and gained over 1.5 million customers in a few years. Varun and Ghazal initially funded Mamaearth with an investment of approximately INR 90 lakh from their own pockets. Mamaearth competes against big companies such as Johnson and Johnson, Himalaya, etc. This company provides toxin-free baby care, hair care, and skincare products. The founders of the company are Varun Alagh and Ghazal Alagh.

Target audience

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. The company also targeted THE MALE by offering products like lotions, aftershave, and hair oils.

Mamaearth case study: why is it unique and successful

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. This is why Mamaearth has been able to grow so fast within such a short period of time.

The first thing you should know about Mamaearth is that it’s one of the fastest-growing beauty brands in the world today. The company has been able to achieve this incredible growth by creating innovative products and services for its customers, who are primarily millennials.

Mamaearth’s case study indicates that it has been able to achieve its impressive growth through creating unique products and services for its customers, who are predominantly millennials. The company has been able to achieve this incredible growth thanks to its innovative approach to product development and marketing strategies .

Business model of Mamaearth

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. It also allows the company to launch new products without committing too much capital upfront. The company’s unique value proposition: a one-stop shop for all your holistic needs. The company sells organic food, skincare, and household items, and services such as yoga classes, massage therapy, and acupuncture.

Mamaearth business model is unique because it combines health and wellness with other product lines. Through its partnerships with other brands, Mamaearth can offer more than just organic food; it can also provide services like yoga classes or massages. 

This allows Mamaearth to sell more products than if just selling organic food alone, which is typically much more expensive than conventional food. Mamaearth also benefits from having a strong brand image and loyal customer base, which many other retailers do not have today due to shifting consumer preferences and brands’ inability to keep up with new trends in the marketplace. 

Here are the key factors that make the Mamaearth business model unique:

Ability to connect with the target audience

There are many successful companies worldwide, but not all have a unique business model. In fact, most of them use a similar business model and rely on their brands to build their business. But what differentiates Mamaearth business model from other companies is its ability to connect with its product target audience and gain their trust.

The founders got the idea of Mamaearth when looking for toxin-free and natural baby products online. They knew what most parents wanted for their babies, so they decided to make an eco-friendly product line based on that need. The product range includes baby wipes, diaper creams, shampoo, body wash, and bath soap. The products are safe for baby skin and free from harmful chemicals like parabens used in most personal care products.

Mamaearth is a “mum-powered” company that works with many mothers involved in the process, from ideation and conceptualization to the actual product launch. They built an online platform where mothers can connect and share experiences related to breastfeeding, and parenting or working moms. This helped make the brand’s reputation among mothers, who became loyal customers once they started using the products from Mamaearth.

Superior high-quality products

Mamaearth is a brand that aims to create products that are safe to use and safe for the environment. They believe in providing superior quality products at affordable prices.

Mamaearth has created such a successful business model because they have taken care of the essential details.

They provide natural ingredients in their products, which makes them safe for the environment and children. They also only use organic materials in manufacturing their products. This helps them reduce waste and also save money on raw materials. They have also launched a new range of baby wipes that are made from bamboo, 100% natural plant-based toothpaste for children, and skin and hair care products with natural ingredients like onion, CoCo, and charcoal. The baby wipes do not contain any chemicals or dye, so they are highly safe for your child’s skin.

The founders of Mamaearth believe in providing superior quality products to their clients. People themselves recommend Mamaearth products to other people. Word-of-mouth marketing has done miracles for their brand.

The company offers discounts on its products to attract new customers and retain old ones. They also have a loyalty program in which people can earn points by purchasing their products. Points earned can be redeemed for cash back or gift vouchers.

Lean innovation cycle

As a company, Mamaearth started with the idea of making healthy food products. The company founder wanted to create a healthy product to help people change their eating habits and live healthier lives.

The founder had an idea of creating a product that would satisfy the needs of people who needed a good quality food product at an affordable price. He believed in experimenting and listening to his customer’s feedback to ensure he delivered what they wanted.

Lean innovation helped them understand their customers’ needs and fulfill them immediately. It is a new way of thinking about business. It’s a practice that allows companies to continuously improve their products and services while reducing waste and increasing customer satisfaction.

Lean innovation follows a principle where businesses focus on increasing efficiency by continuously listening to customer feedback. Your main priority is experimentation and constantly improving your product quality.

Lean innovation helped Mamaearth understand its customer needs and fulfill them immediately. Experimentation helped them increase the quality of their products and generate new product ideas. In a short time, they satisfied their customers using this method.

Mamaearth marketing strategies

Mamaearth is a brand that has been around for years and is known for its products and services. The company also helps people to promote its products through its marketing strategies.

Influencer marketing

Influencers are people who have a large following in a specific niche. They can increase brand awareness and have a positive influence on the overall performance of your business. Influencers are so important that many companies are willing to pay them to promote their products or services.

Mamaearth has worked with a lot of internet Influencers. Influencers have assisted the company in reaching a wider market audience . Influencers share the benefits and uses of these products on various social media platforms.

Brand endorsement

Brand endorsement is when an influencer promotes your products or services on their social media page or blog post . This is a common way for businesses to use influencers for marketing purposes because it allows them to reach out to an audience that might not be familiar with their brand yet. It also helps with building trust and credibility in the eyes of consumers because they see someone who looks like them endorsing something they use or wear every day.

Working with Bollywood Actress Shilpa Shetty Kundra as a Mamaearth brand ambassador has to be their best marketing strategy. Shilpa is an influential personality in today’s time, and her endorsement adds value to their brand name. She has appeared in several television shows, films, advertisements, and music videos. The popularity of Shilpa Shetty grew in the business world when she became the face of the Tata Nano car ad campaign in India. This was one of the highest-paid ads in India because it got more than 8 million views on YouTube within three days of launch!

Digital ads

Online ads are another way businesses use influencers for marketing purposes because they’re easy to set up, cost-effective, and you can reach a broad audience at once. You can also choose what kind of ad you want to run based on your budget and goals for each campaign.

Mamaearth primarily promotes itself through digital ads. They have incredibly utilized digital ads and increased their customer base. Their ads are very catchy and effectively symbolize their brands.

How Mamaearth earns money?

Mamaearth is one of the top personal care industry brands, with total revenue of INR 920 crore and a net profit of INR 24.6 crore in FY 21-22. The brand has been growing at a healthy rate for the past few years, which is reflected by its consistently increasing EBITDA margin from 10% to 15%.

The customer acquisition strategy of Mamaearth is wholly focused on digital content. Their main goal is to sell as many products as possible online. They earn money by selling their products on Flipkart, Amazon, and other similar E-commerce websites.

Only 20% of the brand revenue is generated from baby products. 80% of the income comes from skincare and haircare products. Mamaearth enjoys a healthy gross margin profile of about 65% in the personal care category. So, they can invest 40-50% of their revenue in marketing.

Mamaearth competes with companies like Marico, Emami Limited, Johnson & Johnson, Bey Bee, etc. While these companies have their strengths and weaknesses, Mamaearth’s advantage is its wide product range that covers all types of products, including personal care items such as shampoos, soaps, lotions, and body washes, as well as household items like detergents, cleaning agents, laundry detergents and kitchenware items like utensils.

Mamaearth competitors

Mamaearth’s main competitor is Marico which sells only natural ingredients without any synthetic chemicals or artificial preservatives. This makes it difficult for Mamaearth to compete with Marico in this aspect because most people prefer buying natural products over chemical-based ones. However, the company offers some unique products, such as its “Made In India” range of soaps, which uses only natural ingredients like shea butter or mango butter instead of using chemical-based chemicals such as Palm oil.

Mamaearth is a successful startup in the field of natural products. It has established itself as a business that can be trusted and relied upon by its customers.

The company has developed excellent products with high-quality ingredients that have helped it to reach great heights. The products are practical but also affordable and safe for everyone to use.

Mamaearth’s unique products helped them to reach great heights. They have understood their customer’s needs excellently and adequately served those needs. Mamaearth’s business and revenue model is simple, yet extremely powerful.

Frequently Asked Questions

What are mamaearth products.

Mamaearth focuses primarily on baby-related products, including clothing and accessories, toys, pregnancy care products, skin and hair care products.

Is Mamaearth an Indian company?

Yes, Mamaearth is an Indian company that was founded by Ghazal Alagh and Varun Alagh. It was launched in 2006, with headquarters in Gurugram, Haryana.

How does Mamaearth sell its products in the market?

Mamaearth sells its products through their website, e-commerce marketplaces such as Flipkart and Amazon, and also via offline stores.

Who is the Target Audience of Mamaearth

Mamaearth mainly targets mothers and their lovely babies. The second target audience is grandparents who want to spoil their grandchildren with as many gifts as possible. The third target audience is parents’ friends who often visit children’s rooms for some time during holidays or any other occasion when children need some help decorating their rooms.

What was the initial investment of Mamaearth?

Varun and Ghazal initially funded Mamaearth with an investment of approximately Rs 90 lakh from their own pockets

Suraj Shrivastava

Suraj Shrivastava at ForgeFusion shares simple, effective ways to grow your business using SEO, content marketing, and AI, learned from helping over 50 companies. When he’s not working, he loves teaching others or watching documentaries.

4 thoughts on “Case Study: Mamaearth Business Model, Revenue Model, and Startup Journey”

What was the initial investment done by Mama Earth in 2016

The amount was not exact, but some sources indicated that it was around 90 lakhs INR.

Revenue of 1.5bn$ in 2016-17.?? you may want to relook at same.! Profit number is also wrong.

Thank you for pointing out, it has now been corrected.

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MamaEarth Business Model – How Does It Make Money?

Supti Nandi

Updated on: February 22, 2024

MamaEarth stole the spotlight of the cosmetic & skincare industry by creating natural, vegan, organic, and toxin-free beauty products. Launched in 2016 by Ghazal Alagh , it acquired over 1.5 million consumers within 7 years with revenues touching Rs.952.4 crores. How did it achieve the heights of success within a stipulated time? Because of its unique and strategically effective business model. So, in this article, we will shed light on the “ MamaEarth Business Model .”

Stay tuned!

A Brief Overview of MamaEarth

Before diving into the MamaEarth business model, let’s have a quick look at the company.

MamaEarth is an Indian personal care brand registered under Honasa Consumer Pvt Ltd. Its prime objective is to provide toxin-free cosmetics and skin-care products made from natural ingredients. MamaEarth business model is primarily based on its-

• Working Strategy
• Revenue Sources
• Marketing Strategies

Working Strategy: How Does it Work?

Beginning with the first part of the MamaEarth Business Model. The working strategy! MamaEarth is one of the most promising D2C brands in India . This means, it not only sells beauty products but also manufactures them. Its working strategies involve the following key points-

Formulation & Production of high-quality products

This is the first step for the successful MamaEarth Business Model. MamaEarth conducts extensive research and development to create formulations that are free from harmful chemicals and toxins, ensuring the safety of their customers.

The founders believe that the quality of the products is the chief factor that can do miracles for their brand. Do you know it is the first company in Asia that was certified by Made Safe? It puts heavy efforts into innovation, experimentation, trials & testing, and feedback. 

As per the founders, it is a mum-powered company that works with many mothers and other individuals. These individuals are part of clinical trials. Only after getting positive feedback and results, it finally launches the products in the market. It regularly launches new products to keep its product offering fresh and relevant. Also, all of its products are approved by the FDA .

Lean Innovation Cycle for Customer-Centric Approach

MamaEarth prioritizes customer satisfaction and loyalty. This leads to a lean innovation cycle . In lean innovation, you follow the principle of increasing the efficiency of products based on your consumer’s feedback. Here, you continuously experiment to improve the quality of products to satisfy the customer. Thus, MamaEarth actively seeks and incorporates customer feedback to improve its products and services.

Apart from that, it provides the following features to connect with the target audience and gain customer loyalty-

• Provide a seamless online shopping experience
• Offer detailed information about the product
• Provide responsive customer service
• Free shipping
• Easy returns

MamaEarth utilizes data and analytics to drive decision-making across its operations. It thoroughly analyzes customer feedback, sales data, and market trends to gain insights and make informed business decisions.

D2C Sales (Distribution Channels) 

MamaEarth formulates its beauty products that are later produced by contract manufacturers. Thereafter, it sells the products through D2C distribution channels. Do you know what is the best thing about the D2C (Direct-to-Consumer) distribution channel? You won’t have to depend on the middlemen! 

Therefore, MamaEarth primarily sells its products directly to consumers through its e-commerce website and mobile app, as well as through online marketplaces such as Amazon, Flipkart, and Nykaa . This eliminates the need for middlemen and allows them to have a direct relationship with their customers.

Range of Products

As you know, MamaEarth focuses on developing and selling personal and baby care products that are formulated with natural ingredients. As per their claim, the products are free from harmful chemicals such as sulfates, parabens, and artificial fragrances. It includes a wide variety of products such as shampoos, body washes, lotions, oils, diapers, and more, catering to the needs of both babies and adults. Also, it includes baby-related clothing, accessories, toys, pregnancy care products, etc.

Initially, it produced products only for babies and mothers. Later on, it expanded its customer base by targeting the millennial generation. It included both men and women. Apart from serums and creams, it also offers aftershave lotions and beard oils.

Sustainability and Social Responsibility

MamaEarth’s business model also includes a focus on sustainability and social responsibility. It uses environmentally friendly packaging, promotes recycling and waste reduction, and is actively involved in various social causes such as child welfare, environmental conservation, and women empowerment. We will discuss it later in the section on campaigns of marketing strategies.

Partnerships & Collaborations

Do you remember when you saw or heard the name of MamaEarth for the first time? Probably in some vlogging channel, right? Because partnerships and collaborations are one of the chief working strategies of this company. MamaEarth collaborates with influencers, mommy bloggers, pediatricians, and dermatologists to endorse and promote their products. It also establishes strategic partnerships with online marketplaces, retail stores, and other brands to expand its reach and customer base.

Offline Presence

Do you know, an ample number of D2C brands are going offline? Why? You may wonder! Well, we have explained why D2C brands are going offline mode . That’s why, in addition to its online sales channels, MamaEarth has also established a presence in offline retail stores. For example- pharmacies, baby stores, and supermarkets. Here, the aim is to expand their reach and accessibility to customers. 

Revenue Sources: How does it make money?

You may think that MamaEarth would have been earning by simply selling its products on e-commerce. Well, that’s true because that is their primary source of income. But the revenue sources are not confined to product sales. The various revenue sources of MamaEarth are-

Direct-to-consumer (D2C) sales

MamaEarth operates its own online store where customers can browse and purchase their products. D2C sales are a key revenue source for MamaEarth, as customers can buy products directly from their website or mobile app, and MamaEarth earns revenue from the sales of its products at a markup over production costs. However, baby products generate only 20% of brand revenue. Whereas, the majority of revenue is generated by personal care products (nearly 80%). 

Since MamaEarth manufactures the products on its own, it enjoys a healthy gross margin profile i.e. about 65% in the personal care products category. This factor enables MamaEarth to make a healthy investment in marketing.

Subscription-based services

Have you heard about the subscription-based service called “MamaEarth Club”? Here, you can subscribe to receive regular deliveries of your favorite products at discounted prices. The subscription model generates recurring revenue for MamaEarth, as you need to pay a subscription fee for the convenience of receiving products on a regular basis. This acts as a revenue source for MamaEarth.

Retail partnerships

As you have read above, like other D2C brands, MamaEarth is also going offline. To sell its products through physical retail locations, it collaborates with various retail partners, such as supermarkets, pharmacies, and specialty stores. These partnerships provide MamaEarth with additional distribution channels and revenue streams, as they earn a percentage of the sales made through these partnerships.

MamaEarth has a strong offline footprint of over 40 cities in India. It has more than 2000 multi-brand brick & mortar stores.

Brand collaborations

MamaEarth collaborates with other brands or influencers for co-branded products or promotions. This allows MamaEarth to leverage the reach and influence of other brands or influencers, expand its customer base, and generate additional revenue through joint marketing efforts.

One such example is the collaboration of MamaEarth with Anita Hassandani for haircare, skincare, and baby care categories to tap millennials.

Marketing Strategies: Ability to connect with the target audience

Apart from the organic products, another chief reason that made MamaEarth a popular beauty brand is its attention-grabbing marketing strategies. The objective of MamaEarth’s marketing is to connect with the target audience. MamaEarth primarily employs digital marketing strategies to promote its brand and products. They create engaging content, share product updates, run promotional campaigns, and engage with customers through social media platforms like Facebook, Instagram, YouTube, and Twitter.

Some of the significant marketing strategies of MamaEarth are-

Influencer marketing

Influencers have the capability to execute a positive effect on their influencers belonging to a specific niche. So, the influencers especially those belonging to the beauty & skincare categories play a crucial role in MamaEarth’s product marketing. Therefore, it collaborates with influencers, bloggers, and content creators who align with its brand values and target audience. These influencers create content around MamaEarth products, share their experiences, and promote the brand to their followers. This helps MamaEarth to expand its reach and credibility among its target audience and to increase its customer base.

Content marketing

If you visit the official website of MamaEarth you will find numerous blogs related to beauty, skincare, and hair care. The prime objective of these blogs is to create informative and educational content on topics related to organic and natural products, sustainability, parenting, and health. For example- the best serum for Acne prone skin in India , Skincare tips for healthy & clear skin , etc.

This content helps to establish MamaEarth as a thought leader in their industry and provides value to their target audience.

Recognition through Product Packaging

If you carefully observe the packaging of MamaEarth’s products, you will notice how visually appealing they are! MamaEarth places a strong emphasis on attractive and eco-friendly product packaging that is informative, and environmentally conscious too. It helps to create brand recognition and generate word-of-mouth marketing.

Word-of-Mouth marketing

MamaEarth encourages customers to leave reviews and testimonials on their website and social media platforms. Positive customer reviews and testimonials serve as social proof and help to build trust among potential customers, influencing their purchase decisions. Thus, it is a potential way for word-of-mouth marketing.

Loyalty and referral programs

MamaEarth has numerous loyalty programs like “MamaEarth Reward Points” and “ Goodness Insider ” that encourage repeat purchases and customer loyalty. They also have a referral program where customers can refer MamaEarth to their friends and family in exchange for discounts or other incentives, which helps to generate word-of-mouth marketing and increase customer acquisition.

Marketing through Brand Ambassadors

Brand endorsements are highly effective when it comes to marketing. As of now, MamaEarth’s brand ambassador is Shilpa Shetty Kundra. The popularity of celebrities has immensely benefitted MamaEarth in brand endorsement and marketing.

By now, you must have realized that MamaEarth is not just a brand that sells cosmetics. But an entire ecosystem around the manufacturing and selling of organic vegan personal care products. The mum-powered company is one of the fastest-growing beauty brands. It gives tough competition to well-established brands like Himalaya, Johnson & Johnson, Wow Skin Science , Plum, etc. The innovative approaches in MamaEarth business model are the underlying secret with which it achieved this incredible growth and success!

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Business model of Mamaearth ~ Business Plan, Revenue Model, SWOT Analysis

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
• Forest Essentials
• Plum Essentials
• Patanjali Ayurveda
• The Body Shop

SWOT Analysis

• 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.
• 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.
• 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.

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.

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What marketing strategy is helping Mamaearth grow exponentially?

The outbreak of novel coronavirus had a detrimental impact on many industries worldwide, including the Fast Moving Consumer Goods(FMCG) sector. With the supply chains getting disrupted due to lockdowns and other measures, FMCG firms faced logistics challenges resulting in sluggish growth. When most of the big FMCG players were struggling to revive the business, a personal care product brand Mamaearth, which Honasa Consumer Pvt Ltd runs, clocked a 400% growth.

From a base revenue of Rs.17 crore in the financial year 2019, Mamaearth has seen exponential growth in the financial year 2020 with a revenue of Rs. 500 crore. Currently, the annual revenue run rate of Mamaearth is Rs. 700 crores ($100 million), according to analysts at Jefferies India Pvt Ltd. With this revenue rate, the company is expected to gain revenues of around Rs. 2000 crore in the coming three years.

From parents to entrepreneurs     

In the year 2014, Ghazal and Varun Alagh were blessed with a baby boy. As a parent, they were concerned about using baby care products as most of them contain chemicals that can be harmful to a child. After thorough research, they found that almost no baby care product brand in India provides 100% toxin-free baby care products, and hence they have to order products from the US and UK in order to get what they want.

During their research, they also started surveying new parents and found that most parents are concerned about the presence of chemicals in baby care products that they use. Varun, having a 10-year of experience in the FMCG sector, saw a potential market and a demand and supply gap that the husband-wife duo can fill. 

Varun left his corporate job, and along with his wife Ghazal, founded Honasa Consumer Pvt Ltd in 2016 to provide toxin-free baby care products. By the year-end, the company launched its brand as Mamaearth, which claims to provide toxin-free international standard products.

The company quickly realized the market potential of toxin-free products and started expanding its product range from baby care to include personal care products for adults. Today 80% of Mamaearth’s revenue is from skincare and haircare products. The direct-to-customer company has completely evolved today from a baby care product brand to personal care product brand.

View this post on Instagram A post shared by Mamaearth (@mamaearth.in)

Mamaearth’s marketing strategy : Rule the Digital

From the very beginning, Mamaearth knew the importance of brand awareness and hence worked towards it aggressively. Of the total marketing expenditure Mamaearth claims to have spent 90% on digital platforms and 10% on traditional media such as television.

Through digital campaigns, Mamaearth reached out to social media influencers for brand awareness and worked heavily to target millennials. To target the market beyond metro cities, the company focussed on television advertisements as well. They partnered with the Viacom18 network of channels to become sponsors of popular shows. 

To strengthen the brand image of a toxin-free product brand, Mamaearth started investing in sustainability. The brand started a ‘Plant Goodness’ initiative to plant a tree for every order received. To augment that, they also started a ‘Plastic Positivity’ initiative which aims to recycle plastic. These campaigns helped Mamaearth in gaining the customers’ interest by making them realize that while buying a product from Mamaearth, they are also contributing towards the well-being of the environment. 

Pandemic acted as a catalyst to Mamaearth’s marketing strategy

The lockdowns to curb the impact of COVID-19 resulted in a shutdown of offline stores and resulted in pushing a large segment of buyers to resort to an online mode of purchasing. Mamaearth, already having an online presence and a strong digital marketing strategy, got a head-start when offline rivals were still struggling to establish a digital presence. Mamaearth soon started expanding its e-commerce strategy, which resulted in a massive surge of new buyers.

To retain this new customer segment even after the lockdown, Mamaearth also started investing in offline strategies. From an offline presence in around 3000-odd stores, the brand ramped up its stores to 10,000. When some companies saw layoffs due to the pandemic, Mamaearth started increasing its headcount by starting a hiring spree which will help them scale up massively after the lockdowns. The move turned out to be visionary and as a result, when the COVID-19 related restrictions were eased off, Mamaearth made a fifth of its sales from offline stores resulting in a 15% increased contribution from offline sales.

Mamaearth continued doing experiments with different products resulting in many hits and misses. However, during COVID-19, they strike a right shot by launching Vitamin-C and turmeric laced face washes, face serum, and skincare products. It turned out to be a game-changer. They were sold like hotcakes and topped the selling charts. This turned out to be a booster dose for the brand.

The way forward

Mamaearth is backed by investors including Sequoia India, Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala, Snapdeal founders Kunal Bahl and Rohit Bansal, and actor Shilpa Shetty Kundra. It is all set to raise $80-100 million from existing investors who might value the company at $350-400 million . This is due to the raised confidence among the investors seeing Mamaearth’s exponential growth.

Mamaearth’s solid marketing strategy has helped them create a strong brand image among different market segments, from millennials to adults. Their unique selling point is the absence of toxins and harmful chemicals in their products. This has helped them in building a loyal customer base. To further solidify their market positioning, they must maintain that image and continuously expand the customer base by experimenting with new products. 

Another thing that the company should look into is the stiff competition in the FMCG sector. Considering the exponential growth in this segment, the big players will try to dominate the market again using their strong supply chains as soon as the pandemic situation is eased further. As Mamaearth is already focussing on expanding offline stores and headcount, they have to build efficient supply chains and strong logistics to retain the growth and tackle the competition.

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I am a software engineer by profession and a product enthusiast who loves to analyze products and the strategies that they incorporate. I am a passionate reader and enjoy writing as leisure. I also like exploring and experimenting with new things and skills to become a better version of myself.

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Mamaearth – Startup Story, Business Model And Marketing Strategy

Mamaearth – Startup Story, Business Model And Marketing Strategy 8 min read

When it comes to the cosmetic industry, people are more concerned with the manufacturing method used to create the product. The cosmetics business is currently entering a new era of organic and natural cosmetic products. The emphasis is on creating natural beauty products that are devoid of chemicals and pollutants.

The popularity of organically manufactured products is apparent since they have little or no adverse effects on the skin, hair, or any other area of the body. Taking advantage of this desire for organic goods, Mamaearth has grown into an exceptional business in the cosmetics market, with products that have earned the American Made Safe Certification. This is the first nontoxic cosmetic seal in use today .

Mamaearth is a 2016 Indian brand that has garnered over 1.5 million clients in a few years. Mamaearth competes with large corporations such as Johnson & Johnson, Himalaya, and others. Toxin-free infant care, hair care, and skincare items are some of the products that come from the house of Mamaearth. Varun Alagh and Ghazal Alagh are the company’s founders.

Table of Contents

Target audience

Mamaearth began by offering pregnancy, infant care, and hair care items to moms and their newborns. They also offered toys, accessories, and clothing. When the startup first began to grow, it focused on the millennial demographic by providing chemical-free cosmetic items such as creams and serums, face wash, hair oils, and lotion. They also catered to the males by selling lotions, aftershave, and hair oils.

Also Read : Zoom – The App That Revolutionized The Way The World Works

Business model of Mamaearth

Mamaearth operates on a direct-to-consumer (DTC) model. This implies that they offer their items to clients directly through their website and retail outlets.

They do not employ any middlemen, such as distributors or wholesalers. This allows companies to keep their costs down and provide competitive prices on their products.

Here are the key factors that make the Mamaearth business model unique:

Ability to connect with the target audience

There are many successful businesses across the world, but not all of them have a distinct business model. In reality, the majority of them follow a similar business plan and rely on their brands to grow. But what distinguishes Mamaearth’s business plan from others is its ability to connect with and acquire the trust of its product’s target audience.

When the founders were seeking for toxin-free and natural baby items online, they came up with the idea for Mamaearth. They recognized what most parents wanted for their children, so they created an eco-friendly product line to meet that need. Baby wipes, diaper creams, shampoo, body wash, and bath soap are all available. The products are gentle on infant skin and devoid of dangerous chemicals such as parabens, which are commonly found in cosmetics.

Mamaearth is a “mum-powered” firm that involves many moms in the process, from inspiration and conceptualization through product launch. They created an online platform where mothers can interact and exchange nursing, parenting, and working mom experiences. This contributed to the brand’s reputation among moms, who became devoted consumers after utilizing Mamaearth goods.

Superior high-quality products

Mamaearth is a company that strives to make products that are both safe to use and safe for the environment. They believe in offering high-quality products at reasonable pricing.

Mamaearth has a strong business plan because they have paid attention to the specifics.

Natural components are used in their goods, making them safe for the environment and children. In addition, they solely employ organic components in the manufacture of their products. This allows them to decrease waste while also saving money on raw supplies. They’ve also introduced bamboo-based baby wipes, 100% natural plant-based toothpaste for kids, and skin and hair care products with natural components like onion, CoCo, and charcoal. Because the baby wipes include no chemicals or color, they are completely safe for your child’s skin.

Mamaearth’s creators believe in giving high-quality items to its customers. Individuals suggest Mamaearth items to others. Word-of-mouth marketing has worked wonders for their business.

To attract new clients and keep existing ones, the corporation gives product discounts. They also offer a loyalty program where customers may earn points for purchasing their items. Earned points can be exchanged for cash back or gift cards.

Lean innovation cycle

Mamaearth began as a firm with the goal of producing nutritious meals. The founders intended to develop a nutritious product to assist individuals in changing their eating habits and living better lives.

The entrepreneur had the concept of developing a product that would meet the demands of those who required high-quality meals at a reasonable price. He was a firm believer in experimenting and listening to his customers’ input to ensure he supplied exactly what they want.

Lean innovation enabled them to quickly recognize and meet their clients’ demands. It is a fresh method of approaching business. It is a strategy that enables businesses to constantly enhance their goods and services while minimizing waste and enhancing consumer happiness.

Mamaearth used lean innovation to better understand and meet its customers’ requirements. Experimentation assisted them in improving the quality of their products and developing new product concepts. Using this strategy, they quickly fulfilled their consumers.

Mamaearth marketing strategies

Mamaearth is a well-known brand for its products and services that has been operating for many years. Through its marketing techniques, the corporation also assists individuals in promoting its products.

Influencer marketing

Influencers are those who have a huge following on social media. They can heighten brand recognition and have a favorable impact on your company’s overall success. Influencers are so valuable that many businesses would pay them to promote their products or services.

Mamaearth has collaborated with several online influencers.

Influencers have helped the brand reach a larger market audience. Influencers promote the advantages and applications of these items on various social media channels.

Also Read : Who Are Influencers And How Do Influencers Make Money?

Brand endorsement

When an influencer endorses your products or services on their social media page or blog post, this is known as brand endorsement. This is a frequent technique for firms to employ influencers for marketing reasons since it allows them to reach out to a new audience. It also contributes to customer trust and credibility since they see someone who looks like them supporting something they use or wear every day.

Working with Bollywood actress Shilpa Shetty Kundra as a brand ambassador for Mamaearth has to be their most effective marketing technique. Shilpa is a well-known celebrity, and her endorsement boosts the worth of their business. She has appeared in a number of television episodes, films, commercials, and music videos. Shilpa Shetty’s commercial prominence soared when she became the face of the Tata Nano automobile marketing campaign in India. This was one of the most expensive advertisements in India and it had over 8 million views on YouTube in three days!

Digital ads

Online advertisements are another option for firms for marketing reasons because they are simple to set up, cost-effective, and allow you to reach a large number of people at once. You may also select the type of ad you wish to run based on your budget and campaign objectives.

Mamaearth largely advertises on the internet. They have effectively used digital advertising to expand their consumer base. Their commercials are incredibly catchy and successfully represent their companies.

How Mamaearth earns money?

Mamaearth had around $1.5 billion in revenue and a net profit of $255 million in fiscal year 2016-17. For the past five years, the brand has grown at a healthy rate, as seen by its continually increasing EBITDA margin from 10% to 15%. In financial year 2022, the operating revenue of Mamaearth amounted to 9.4 billion Indian rupees . This was an increase as compared to the previous financial year.

Baby items account for just 20% of brand sales. Skincare and haircare items provide 80% of revenue. In the personal care area, Mamaearth has a good gross margin profile of over 65%. As a result, companies devotes 40-50% of their earnings on marketing.

Mamaearth competes with firms such as Marico, Emami Limited, Johnson & Johnson, Bey Bee, and others. While each of these companies has advantages and disadvantages, Mamaearth’s advantage is its broad product line, which includes personal care items such as shampoos, soaps, lotions, and body washes, as well as household items such as detergents, cleaning agents, laundry detergents, and kitchenware items such as utensils.

Mamaearth competitors

Marico, which sells exclusively natural components free of synthetic chemicals and preservatives, is Mamaearth’s major rival. This makes it difficult for Mamaearth to compete with Marico in this area because most consumers choose to buy natural products over those containing chemicals. However, the brand does offer some unique goods, such as their “Made in India” soap line, which utilizes solely natural ingredients like shea butter or mango butter rather than chemical-based chemicals like Palm oil.

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How organic skincare brand Mamaearth built a successful digital-first business using robust performance marketing and brand-building solutions from Facebook

Indian organic skincare brand, mamaearth, accelerated business growth by partnering with facebook. a “full-funnel” marketing effort that relies on creative best practices, constant optimization and a test-and-learn approach to drive marketing returns has helped the brand achieve the desired business outcomes and explosive growth..

With more people choosing to shop online, businesses have pursued robust digital strategies that bring them closer to their target customers. In India, where the online retail industry is growing exponentially, more brands are waking up to the immense opportunities that the booming e-commerce industry can deliver on the back of the burgeoning population of internet-savvy Indian customers.

One such direct-to-consumer company is the organic skincare brand Mamaearth. This primarily digital business relies on Facebook apps and services to connect with new customers and boost sales and revenue.

Founded in 2016 by Ghazal and Varun Alagh, the brand started as a baby-care label but has since expanded its business to sell personal care products. It has come to be known for its natural, toxin-free products such as lotions, body washes, shampoos, hand creams, and face masks for men, women, and infants. While it primarily sells via online channels, it has a limited retail presence in some cities such as Delhi, Chennai, Kolkata, and Pune.

Here’s how they grew their business with Facebook:

Using the strength of the Discovery Commerce solutions to drive business growth

As a digital-first brand, Mamaearth initially focused its efforts on customer acquisition. Within the first two years of operation, it saw its business grow to 5 million customers, with Facebook playing a vital role in this growth.

Mamaearth relied on Facebook Discovery Commerce solutions to increase brand discoverability and business growth, which offer personalized communication, dynamic advertising tools, real-time optimization and measurement, and functionality across several mobile-first surfaces.

Mamaearth used dynamic ads, which automatically serves relevant ads to people based on their interests and actions. With this, the organic skincare brand delivered a personalized experience to customers by showing them products they had previously browsed.

The brand also adopted a test-and-learn approach with Facebook to perfect the creative for its campaigns, experimenting with the inclusion and exclusion of copy, call-to-action statements and different campaign optimizations to drive efficient conversions.

Mamaearth heavily leveraged dynamic product ads (DPA), a solution that automatically serves relevant ads to people based on their interests and actions. The brand also launched and scaled their app utilizing our app solutions along with recently launched Automated App Ads(AAA).The campaigns delivered a 2X y-o-y growth in purchases (Q2-21 vs Q2-20); and 80% Growth in App Purchases in last 3 months vs previous quarter.

Mamaearth builds a digital-first brand with Facebook apps and services.

During the early days of its business, Mamaearth grew the brand using a primarily digital-first strategy. With Facebook’s creative solutions, Mamaearth brought its story of an all-natural, toxin-free skincare brand to life.

To reach mothers, the brand worked with celebrities and popular online content creators to generate appealing content that shared first-hand experiences with Mamaearth’s products. The content was curated specifically to fit Mamaearth’s identity and to lend credibility to the brand story.

Finding mobile-first customers with app marketing strategies, special sales days, and value optimization strategies

To continue acquiring new customers and growing brand awareness, Mamearth expanded its digital campaign strategies. These included promoting its mobile app, creating weekly flash sales that customers could look forward to, and reaching and retaining high-value customers.

To do this, Mamaearth diversified its campaign strategies, using specialized Facebook ad formats such as a series of app event campaigns to reach mobile-first customers, encourage more downloads, drive in-app purchases, and establish weekly online sales events on Wednesdays.

As a result, people now look forward to the flash sales every Wednesday, and the promotions have helped the brand court new customers and improve the lifetime value of existing customers. With value optimization solutions, Mamaearth optimized campaigns that targeted high-value customers and, as a result, earned a higher return on ad spend.

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Mamaearth: All you need to know about the brand and founder!

Mamaearth is an Indian startup in the beauty care industry. It has become highly successful in a short time and has created a dynamic presence in the industry. It is known for introducing toxic-free skin care routines to its customers. 

Here is a detailed analysis about the Mamaearth business model along with its revenue and marketing components. Let’s get started!

Mamaearth Business: A sneak peek 

Mamaearth is an Indian based startup that offers a wide range of cosmetic products to elevate its customers’ daily skin care routine. It was founded in 2016 by partners Varun Alagh and Ghazal Alagh.

They started the business with an initial investment of around INR 90 lakh from their own pockets. The brand became a massive hit in the market and has gained over 1.5 million customers so far. 

The company deals with a wide range of toxin-free cosmetic products. It includes the range for baby care, hair care and other skin care products. Mamaearth is directly competing with big brands such as Johnson and Johnson, Himalaya and more. 

The brand leverages the rising demand of adding organic products in day to day skin and hair care routine. They are one of the first brands which deal with non-toxic seals for cosmetic products in use.

This makes them a real game -changer and customer preferred name in the cosmetic and skincare industry. 

Funding timeline and Investors list 

The  recent firm evaluation was done on  Sep 2022 and the net worth of the company is evaluated to be around $1.2 b.

Funding Timeline

Sept 2018- Fireside Ventures ($4m)

Jan 2020-Stellaris Venture Partners,Fireside Ventures

July 2021-Sequoia Capital, Stellaris Venture Partners, Fireside Ventures,Sofina Ventures

Dec 2021,Sequoia Capital

Jan 2022, Sequoia Capital, Sofina Ventures, Evolvence Capital

Sep 2022, Shilpa Shetty

Also Read How beauty brand Sephora has become so successful?

MamaEarth Business Model

Mamaearth’s business model is quite straightforward. They sell their products through various online marketplaces as well as D2C channels such as Amazon, Flipkart etc. The products are also available for purchase in different offline stores.

The brand’s omni channel presence has made it feasible for its customers to purchase the products at their own comfort. The whole range of products is produced by contract manufacturers under the permit of the Mamaearth brand and are sold globally through offline as well as online channels. 

Ideal customer personas for the brand

Since the brand deals with baby care as well as skin care routine products; they have expanded their audience’s reach from mothers and their babies to the millennial generation. The availability of chemical-free skin care products such as serums, creams, face wash, lotions as well as hair oils had created a significant place in the mind of millennial buyers. People are preferring these chemical-free products and are willing to become a repetitive customer to the brand. 

Image credit: entrackr.com

How does Mamaearth make money?

As per the reports, the brand has generated a total revenue of INR 920 crore with a net profit of INR 24.6 crore for the year of 2021-22. Since its inception, the brand is growing and generating revenue at a healthy rate. An upward trajectory towards the increasing EBITDA margin from 10 to 15% directly indicates the growth and success. 

Staying available on all of the popular ecommerce channels such as Amazon, Flipkart makes it convenient for the brand to acquire more potential customers to its channel.

Here is a detailed analysis of the revenue growth and generation of Mamaearth. 

• 20% of the brand revenue comes from the baby care range. 
• 80% of total income comes from skincare as well as haircare products. 
• 65% of total sales is from the personal care category range.
• 50 % of revenue is invested in marketing the brand on online and offline channels. 

Hence, Mamaearth is generating high revenue and is utilizing the profit on marketing and expanding its outreach to the potential and ideal customers. 

Value Propositions of Mamaearth- Pointers that makes the brand unique 

Mamaearth competes with well established brand names such asMarico, Emami Limited, Johnson & Johnson, Bey Bee, Himalaya etc.  Mamaearth leverages the advantage of owning a wide range of products that covers all types of products such as shampoos, soaps, lotions, and body washes.

It also includes household items like detergents, cleaning agents, laundry detergents and kitchenware items like utensils. A dynamic marketing approach and in-demand product ranges together, play a significant role in allowing the brand to become one of the leading and game changing players in the competition.

Here are a few of value propositions that make the brand unique and stand tall among other well established players of the industry. 

Pitching the right message to right audiences 

The brand has gained trust. Their brand messaging has always connected with its targeted audiences. Initially they started targeting the mothers and made several advertisements that resonates with them.

Superior Quality product 

Undoubtedly the quality of products offered by Mamaearth brand are unmatched. The brand has earned many customers through word of mouth marketing. 

Lean Innovation cycle  

The brand relies on the Lean innovation principle. It allows the beans to keep its focus on  increasing the products and operations  efficiency. This is achieved  by continuously listening to the customers feedback and suggestions. 

Lean innovation has helped Mamaearth to stay closer to its customers and understand and fulfill the customer needs in a quick turnaround time. 

Futuristic Perspective of the brand 

The brand has future plans to take the business to the next level. Mamaearth looks to have a $3 billion valuation for IPO in 2023. This will be further a step ahead in expanding and growing the business. We wish better luck to the brand for its future growth. 

Also Read Selling your beauty products online? Make sure your ordering platform has this. 

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Are you feeling motivated with the success of a home grown brand? Do you plan to own a success story of your own in the coming years? If yes, talk to our team at Jungleworks . 

If you dream to own a business and need guidance and support to establish it, feel free to check and connect with us on that.

Let’s make the best of 2023, by bringing out your best version in the market!

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Mamaearth’s Business Model: Secrets of their Rapid Growth

• Rahul Malodia
• May 14, 2023

Table of Contents

A mother always cares the most about using a product for her child. But in 2016, a husband-wife duo, Ghazal Alagh and Varun Alagh founded Mamaearth—an Indian personal care brand specializing in toxin-free products for new mothers and babies. 

Mamaearth creates products with all-natural ingredients free from harmful chemicals like parabens, silicones, mineral oils, and SLS. They even use plant-based preservatives and essential oils to ensure gentle formulations on a baby’s skin. 

Mamaearth’s business model follows a DTC (direct-to-consumer), selling their products directly to consumers through their website and online platforms like Amazon, Flipkart, and Nykaa. This enables them to cut out middlemen and offer affordable yet high-quality products.

Mamaearth owners started this company with just 3 products- a face wash, a shampoo, and a body lotion. Today, it has over 100 toxin-free products across categories like skincare, haircare, babycare and bath & body, with a net worth of Rs 148 crore.

Mamaearth’s Business Model: Overview

In this blog, we will learn everything about Mamaearth’s strategy and how their safe, natural, and budget-friendly products are now the favorite of all moms. Not just this, but you will also know how this successful company is doing the funding and marketing to become the best. 

All About Mamaearth :

Mamaearth is an Indian startup making natural and toxin-free skincare products for moms and children using ingredients like plant-based squalane, organic aloe vera, and shea butter. The founders Varun Alagh and Ghazal Alagh started this in 2016 with an investment of around INR 90 lakh. 

What sets them apart is their commitment to using organic products in everyday skincare routines. They were one of the first brands to use non-toxic seals for their cosmetics, making them a game-changer for all cosmetic and skincare needs.

They have a range of products for new mothers, like body lotions, face serums, shampoos and conditioners. They also have a baby care range with products like baby massage oil, shampoos, wipes and diapers. 

क्या आप भी अपने Business में Employee, Sales और Finance से जुड़ी समस्या से परेशान है?

All products are manufactured in India at Mamaearth’s factories, ensuring end-to-end quality control. At the same time, the website allows them to interact with customers and get feedback for product improvements directly.

Competing directly with big old brands like Johnson and Johnson and Himalaya, Mamaearth now has over 1.5 million customers devoted to its product and brand. 

Target Audience of Mamaearth :

This brand is about caring for babies and their skin, so they’ve broadened their appeal from just new moms to millennials. With their chemical-free products like lotions, serums, creams, and face wash, they’ve caught the attention of buyers who care about what they put on their skin and hair. That’s why folks keep returning for more – they love the feel and quality of the brand’s products.

At first, Mamaearth focused on products for new moms and their little ones by offering a wide range of products such as baby care, pregnancy care, and skin and hair care products. Additionally, Mamaearth also sold accessories, toys, and apparel. But recently, they’ve broadened their appeal by reaching the millennial generation with chemical-free products like hair oils, lotions, creams, serums, and face wash. 

Mamaearth Marketing Strategy :

From digital campaigns to influencer marketing, Mamaearth’s owners successfully created brand recognition and drove sales growth. This effective marketing strategy has helped position Mamaearth as a trusted brand for natural baby and mom care products.

Brand Endorsement :

The big boost to the brand’s success was after signing Bollywood celebrities like Shilpa Shetty, Sara Ali Khan, And Samantha Prabhu as brand ambassadors. Their endorsements have helped raise credibility and visibility by emotionally connecting Mamaearth products with customers. Anushka Sharma promotes Mamaearth’s baby care range, while Shilpa endorses skin and hair care products. 

Digital Ads :

Mamaearth relies heavily on digital advertising to reach its target audience of millennial parents. The company frequently runs ad campaigns on social media platforms like Facebook, Instagram and YouTube. They create customized video ads highlighting their products’ natural and toxin-free ingredients by targeting new parents and pregnant women. 

How Does Mamaearth Earn Money?

From ads on their website to social pages, Mamaearth reaches their ideal clients using digital marketing. With a diverse range of goods, Mamaearth makes it simple for customers to find exactly what they want.

Customers who repeatedly use Mamaearth’s products benefit from the subscription model, which offers access to everything for a fixed monthly price. Plus, Mamaearth can rely on consistent income with this pricing setup, ensuring they continue thriving down the line. 

In 2022, their operating revenue was 9.4 billion Indian rupees, up from the previous year. Skincare and haircare items are responsible for 80% of their revenue, while baby products only contribute 20%. Besides, Mamaearth has a great gross margin profile of over 65% when it comes to personal care, because of which they offer around 40-50% of their earnings into marketing efforts. The brand also has received funding from investors like Sequoia India, Fireside Ventures and Switzerland-based private investment group Artha Venture Fund.

It competes against companies like Emami Limited, Johnson & Johnson, and Bey Bee, with a diverse line of personal care items (like shampoo, soap, lotion, and body wash). You may need to learn that they also offer household items like cleaning supplies, laundry detergent, and kitchenware! 

Rahul Malodia – A top business coach from India, has assisted many small and medium-sized enterprises manage their finances. With his plans to make a budget, track expenses, and identify the best marketing techniques, he has already helped over 500 businesses achieve financial freedom and succeed. If you want your business to know its unique identity, grow, and find new markets all around the globe, you should connect with Rahul Malodia. He and his team work on every small and big aspect of your business to tell you the best plan for success and growth. 

Mamaearth Funding And Valuation :

Mamaearth has obtained $111.6 million through eight funding rounds. Their most recent investment was obtained from a Venture – Series Unknown round on September 15, 2022, attracting the attention of 10 investors, notably including Shilpa Shetty, Sequoia Capital India, Evolvence India Fund, and many more. 

The funding rounds of Mamaearth have been led by notable investors such as Sequoia Capital India, Sofina, Fireside Ventures, and Stellaris Venture Partners. The company has also acquired four organizations, including Dr Sheth’s for Indian Skin, for a sum of ₹280 million. Mamaearth plans to utilize the raised funds to bolster its product offerings, strengthen its presence in the Indian market, and explore international markets.

Mamaearth will use the new funds to expand its product range, strengthen its technology and data science capabilities, increase brand awareness and accelerate growth. Mamaearth aims to become a complete lifestyle brand for mothers and babies in India. 

They see a large potential market for toxin-free products in India and want Mamaearth to be the most trusted brand. 

How Is Mamaearth Dominating Its Competitors?

1. natural and toxin-free ingredients:.

Their products are made with natural ingredients like aloe vera, coconut oil, tea tree oil etc. They are free from parabens, silicones, SLS, and other harmful chemicals, making their products safer and more effective for consumers who prefer natural ingredients.

आप भी चाहते हो कि आपका Business भी TATA, BIRLA और AMBANI की तरह बढ़े?

2. variety of products:.

They offer over 100 products for newborns, babies, kids, and adults, including shampoos, body lotions, face washes, oils, diapers, wipes, and more. This large product portfolio helps them cater to all age groups and needs.  

3. Strong Branding and Marketing:

Through TV ads done by Bollywood actresses and emotional mother-baby ads, they have created an emotional connection with their consumers. Their marketing campaigns, social media presence and celebrity endorsements have quickly helped them build a strong brand identity. 

4. Affordable Prices:

Despite using premium natural ingredients, they keep their product prices reasonable and competitive compared to other natural brands. This makes their products accessible to a wider set of customers. 

5. New and Innovative Products:

They constantly upgrade their existing products and introduce new variants to meet the changing needs of consumers. This helps them stay relevant and ahead of the competition. 

What is Unique About the Business Model of Mamaearth?

By now, we know how Mamaearth owners, with their top business model, were able to reach a wide number of customers in one go. Here are some of the key things that make Mamaearth stand out. 

Superior Quality Product:

Mamaearth relentlessly focuses on providing 100% natural, safe, high-quality products for babies and moms. They strictly avoid using harmful chemicals like parabens, silicones, SLS, mineral oil, and more in their products. All products undergo rigorous testing at multiple stages to meet high-quality standards. Focusing on superior natural ingredients and formulations has helped Mamaearth build customer trust. 

Lean Innovation Cycle:

Mamaearth follows a very lean innovation cycle where they quickly identify gaps in the market, develop a prototype, test it with customers, and then scale up and launch the product. This allows them to constantly innovate and launch new, unique products that meet their target customers’ evolving needs.

They have launched over 200 natural products in just 6 years of operation, which shows the speed of their product innovation. This lean innovation model also helps them respond quickly to customer feedback and make changes to existing products. 

This unique combination of 100% natural and high-quality products and a rapid innovation cycle has helped them scale and grow quickly, establishing them as a leader in India’s natural baby and mom care segment. Their focus on quality, innovation and customer-centricity sets them apart from other e-commerce companies.

Conclusion:

Are you feeling inspired by the triumph of a locally-made brand? Thinking of creating your own success tale in the foreseeable future? After knowing everything about Mamaearth’s business model and current net worth mamaearth, we are sure about these points.

• Their strong brand strategy of providing toxin and chemical-free skincare products made the brand stand out from some big and old skin care product companies like Himalayas.
• Consistency and marketing are key to connecting with your present and potential customers. Mamaearth’s hardcore marketing strategy made them successful in very less time.

Not just this, but Mamaearth has big plans for the future and aims to take its business to the next level by planning to have a $3 billion valuation for its IPO in 2023.

So, if you want to grow your brand with such secret and successful tips, contact Rahul Malodia one of best coach in india. He and his team are passionate about helping purpose-driven brands succeed and make an impact. Their data-driven and research-oriented approach helps uncover the core of your brand that resonates most with your target audience.

Yes, Mamaearth is an India-originated company. It was started by Ghazal Alagh and Varun Alagh in 2016.

What is the Market Value of Mamaearth?

CA Rahul Malodia is the founder and CEO of Malodia Business Coaching Pvt. Ltd. He is a Business Coach, Mentor & Investor. He has trained over 25,000+ Businessmen across India.

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Digital Marketing Strategies

Digital marketing has played a crucial role in propelling Mamaearth to success. Now, let’s delve into the innovative digital marketing tactics employed by Mamaearth.

Enhancing Website Visibility: The Power of Search Engine Optimization

In the contemporary business landscape, having a website isn’t enough – it needs to be optimized for search engines to truly thrive. Mamaearth has taken this aspect seriously, elevating their SEO game to new heights. A dedicated MBA in Digital Marketing student from BIBS has uncovered the intricate web of on-page and off-page strategies employed by Mamaearth.

Mamaearth’s website boasts an impressive authority score of 51. This online hub attracts a staggering 2 million organic search visitors, while an additional 219.2K visitors arrive through paid search efforts. The website’s content is meticulously fine-tuned to align with search engine algorithms, incorporating a substantial array of strategically chosen keywords.

We as a cosmetic marketing agency found that the journey of Mamaearth’s website doesn’t end with its inception. Since September 2021, the brand has consistently garnered an increasing number of valuable backlinks. This upward trajectory in backlink acquisition has demonstrated remarkable persistence, cementing Mamaearth’s position as a digital marketing trailblazer.

Acquiring audience across diverse social media channels

Word Of Mouth

I know this might sound a bit strange at first, but trust me, it works! You know how news spreads quickly? Well, Mamaearth took advantage of that. They reached out to popular Mom bloggers and customers who have lots of followers. They asked them to share their thoughts about Mamaearth’s products. Why did they do this? Because they believe that moms have a big influence. They wanted moms to tell others about their products, especially how great they are for kids. It’s like getting advice from a friend you trust. So, Mamaearth used this approach to let moms spread the word and build trust. We as a beauty marketing agency london feel this is the best strategy.

Influence Of Celebrities & Online Presence

Mamaearth enlisted actress Shilpa Shetty, known for her focus on fitness and health, as a brand advocate. However, to infuse a more contemporary touch, they appointed Sara Ali Khan as their brand ambassador in 2021.

Furthermore, collaborations with mom bloggers and influencers added an allure to the brand’s image. The brand’s overall value experienced a surge thanks to these influencer partnerships.

Mamaearth employs the full potential of digital marketing platforms. Their digital strategy revolves around utilizing online channels extensively to connect with a broad audience, shape an appealing brand identity, understand consumer preferences, and maintain strong customer relationships.

Harnessing Youtube's Marketing Potential

Undoubtedly, YouTube has emerged as a formidable avenue for amplifying brand recognition. Nearly fifty percent of the populace opts to consume review videos on YouTube as opposed to textual content. This very trend is the driving force behind brands’ eagerness to leverage the platform to the fullest. Within the YouTube sphere, a multitude of influential content creators command substantial subscriber bases, facilitating the dissemination of product awareness. Mamaearth has astutely adapted its marketing approach by engaging with YouTube influencers. What’s more, in contrast to conventional advertising, the costs associated with this marketing approach remain economical.

Executing digital exceutives

The proprietors of the brand emphasize that upon recognizing the efficacy of digital marketing, they allocated a substantial 90% of their marketing budget to this avenue, reserving the remaining 10% for more traditional platforms such as television.

Positioning themselves as a chemical-free and toxin-free entity, they crafted digital campaigns like “Plant Goodness,” wherein a tree is planted for every order, and “Plastic Positivity,” which spotlights plastic recycling. These endeavors played a pivotal role in establishing their identity as an environmentally conscious brand.

Unlike numerous other enterprises grappling with the repercussions of shuttering physical outlets during the lockdown, Mamaearth had already solidified a robust online presence. This set them apart as they navigated the challenges brought forth by the lockdown, leaving many competitors struggling to establish a credible digital footprint.

Why Mamaearth Dominates its Rivals

Is Mamaearth the Unrivaled Baby Care Champion? Not quite. Competitors like Himalaya, Pigeons, and Moms also share the stage. But what makes Mamaearth shine amidst this competition? Let’s delve into the details.

Mamaearth isn’t just standing; it’s leading the pack, all thanks to its unwavering focus on customers’ needs. Their product range taps into age-old recipes to resonate with consumers. Moreover, the brand’s commitment to all-natural, side-effect-free products is a clear advantage. And let’s not forget the company name – it speaks volumes to those who genuinely care about our precious Mother Earth.

Wrapping Up

And that’s the scoop! We’ve covered Mamaearth’s marketing strategy from top to bottom. The core principle of using only the best of nature in their products guides their consumer approach and marketing messages. By teaming up with influencer marketing, they’ve not only spread the word about their unique offerings but also gained trust among health-conscious shoppers. Their robust marketing team and strategies are certainly making waves.

We as a  beauty marketing agency  feel their marketing strategies have an effective approach and hence a good outcome!

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MAMAEARTH CASE STUDY: SUCCESSFUL DIGITAL MARKETING STRATEGIES

By  Sreeresh |  Date  :  02-December-2022

    Home > Blog > Mamaearth case study

Day by day, consumers are getting educated about the harmful chemicals used in different products, and thereby are concerned about the ingredients used in the products they use. 

The brands are very well aware of this and are trying to come up with more such products for their consumers. In this blog, you will read the Mamaearth Case study. It is one such brand that is known for its organic and chemical-free products, Mamaearth . 

About Mamaearth

Mamaearth was founded by the Indian couple Ghazal Alagh and Varun Alagh in the year 2016. It was at a time that the couple was in India and had their first baby. 

But when they decided to look for the baby products available in the market, they realized that the baby products available in the market were not safe for babies, and it was challenging to find a toxin-free brand.

And for a very long time, the couple imported toxin-free products for their baby from other countries. But eventually, they realised that it would be difficult for them to always use those products as they were very expensive. 

Also, they knew that it was not only them, but other parents in India too faced the same issue.

That is when Ghazal Alagh decided to develop toxin-free products for infants. The couple then started working towards creating a new brand, picked the R&D team, and got the necessary certificates. Thus, Asia’s first brand to market organic and toxin-free baby products, Mamaearth, was born. 

Target Audience of Mamaearth

The target audience of Mamaearth initially was mothers of newborn babies. The brand had products just for babies and mothers. Slowly they started expanding their business by manufacturing products like creams, body lotions, sunscreens, etc. for men and women.

Products of Mamaearth

The brand initially started with just six products, that were exclusively for babies. Eventually, they started introducing more products for babies and adults as well under the categories of skin care, hair care, baby care and more. 

Some of their products are unique and innovative, is India’s first baby wipes based on bamboo, tummy roll for easy digestion and 100% organic and natural toothpaste for babies. 

Mamaearth, which initially started as a brand for babies, later on started introducing products for mothers too.

Apart from skincare and hair care products, this brand also has many beauty products like foundations, lipsticks, etc. 

The main aim of this brand is to provide quality and natural products to its consumers at affordable rates so that Indian consumers do not have to spend huge amounts on organic brands. 

The brand has a dedicated team to research about the ingredients used in their products and makesure that the products are toxin-free. 

Detailed Analysis of Mamaearth Case Study

Digital marketing strategies of mamaearth, website strategies of mamaearth.

For any brand to survive in today’s world, it is essential to have a good website that is informative, engaging and user-friendly.

 Without that, the brand cannot rank itself on Google SERP. So, you will now see how Mamaearth performs and the result they get for their search engine performance.

And the user exprience on their website is also great. 

On-page SEO Strategies of Mamaearth

As of October 2022, the last blog posted on the blog page of Mamaearth was on October 21. They post blog content on topics like skin care, hair care, beauty tips, etc.  

Instagram Strategies of Mamaearth

The brand has collaborations with many beauty influencers to promote its products and they post videos of such influencers reviewing their products on its page. 

The brand also introduces many contests to keep its audience engaged and bring in more traffic to its website. All these are part of the brand’s Instagram content strategy .

For any brand to succeed in social media marketing, it is very important to first do a social media competitor analysis .

Only then, the brand can get a better idea about the current trends and what they need to do that their competitor is not doing. 

Google Ads Strategies of Mamaearth 

Below are some paid keywords used by the brand Mamaearth, their search volume and cost per click.

Mamaearth Competitors

Wow skin science.

This brand was also founded in the year 2016. As I mentioned in the beginning, customers are now looking for brands that provide chemical-free products, and WOW is such a brand that has a range of products that are chemical-free. 

The main USP of the brand is that its products are made with bio-active and toxin-free ingredients. WOW skin science also has a great online presence, and they collaborate with many beauty influencers to promote their brand. They are one of the top Mamaearth competitors .

Biotique , founded in the year 1992 by Vinita Jain, is a brand that produces ayurvedic skincare, body care, haircare and makeup products. 

Their products are dermatologist tested and also 100% organic and sustainable. The brand is getting back to the roots by incorporating ayurvedic ingredients like herbs, plant extracts, roots, leaves and flowers. 

And Ayurveda is the most organic and environmentally friendly option. The brand used exactly that and started making products that are absolutely skin friendly. 

Unlike Mamaearth and WOW skin, Boutique is more inclined towards offline marketing. They have collaborated with many hotels, and the hotels will place the shampoos, lotions, handwash, body wash, etc.

 Thus, people coming to these hotels will get to use their products, and if they like them, they will start buying the products. 

Khadi Naturals

             Khadi Naturals is an Indian brand founded in the year 1963. The brand also claims to use all-natural ingredients in its products. Compared to Mamaearth, Khadi Naturals is an ancient brand that is present in the Indian markets for a very long time. 

All their products are manufactured under the direct supervision of Ayurvedic doctors who are experts in the field. Now, the brand distributes its products to over 25 countries and is a very successful brand in India.

Plum Goodness

Nowadays, another trend in the consumer community is vegan products. Many consumers have turned vegan, and they prefer vegan products for their daily use. 

Founded in the year 2013 by Mr Shankar Prasad, Plum Goodness is one such brand that produces only vegan products for its consumers.

Plum has a range of products under skin care, body care, hair care, etc. All their products are 100% chemical free and vegan. 

Just like Mamaearth, Plum too has collaborations with many influencers to promote their products. Both the brands offer natural and environment friendly products. 

Patanjali Ayurved

Patanjali , founded in the year 2006 by Swami Ramdev and Balkrishna, is a brand that promote ayurvedic based products. 

The main products of Patanjali that are in close competition with Mamaearth products are their aloe vera gel, sunscreens and facewash. 

The main marketing strategy of Patanjali lies in how they promote their products as being related to the culture and heritage of India and Ayurveda. 

Forest Essentials

Forest essentials is an Indian brand that was established by Mira Kulkarni in the year 2000. Currently, the brand can be sound in the international markets too in countries like Australia, the UK, UAE and US. 

The brand is known for its Ayurvedic skincare products and the brand promotes itself as a luxury brand that sells Ayurveda-based products. 

Forest Essentials is a blend of Ayurveda and modern beauty, and all their products are cruelty-free, meaning the brand does not hurt animals by testing their products on animals. 

Just like Biotique, Forest essentials also has partnered with many star hotels in India to promote their brand. 

Thus, the consumers get a feeling of using a luxurious brand that is also natural, and this increases their chances of them. 

The Body Shop

The brand was established in the year 1976 by Anita Roddick. The brand’s main aim was to make products with organic and natural ingredients. Soon, the brand became very popular among young consumers.

Just like forest essentials, the body shop too is a cruelty-free brand. And this brand is a major competitor of Mamaearth as they also sell toxin-free products.

As I mentioned in the beginning, it is very important in today’s time to maintain a strong digital presence to promote your business and to get maximum reach.

The concept of Mamaearth is very good, but if their marketing strategy were not good enough, they wouldn’t have become this successful. 

So, it is important for any business to have strong digital marketing strategies, even if the idea is unique and the best. If you want to learn how to build a strong marketing strategy for your business, join the advanced digital marketing course of Nexxa digital academy and grow your business. 

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Mamaearth Marketing Strategy: Making Indian Brand Stand Out From Its Competitors

Poonam Chauhan , Akshat Hawelia

Unless you are living under a rock, you might have heard about the company name Mamaearth.

Not only this, you must have heard about the marketing strategy of Mamaearth when you have been in marketing for a while. And it is a brand that is well-known among its customers. We are certain that people have tried its product at a certain level, so the question to the discussion here is what they did to get the attention of buyers or why they are ruling the market. Well, if that is the question that pops into your head, then you are definitely in the correct place.

When a brand does something that helps them achieve what they are looking for, then the mind behind this is their marketing team. They work around the clock on ideas that can represent their product in a perfect way. But more than this, the product should be top-notch. When Steve Jobs said, don’t sell products, sell dreams, half of the businessmen and young entrepreneurs relate to it. And this is exactly why, after so many years, Apple stands tall in the market.

One such company is Mamaearth, whose marketing strategy is something that forces us to compile this guide. So, without any more time, let’s focus on Mamaearth's marketing strategy.

The Story Behind Mamaearth 4P's of Marketing - Mamaearth Marketing Strategy of Mamaearth STP of Mamaearth Why Mamaearth rules over its competitors Conclusion

The Story Behind Mamaearth

Varun and Ghazal Alagh battled as new parents to find healthy and non-toxic items for their son. With most young parents, it can be a time-consuming and overwhelming experience, and the Alagh's were no exception.

After their son was born in 2016, they discovered that almost all baby care items in India featured dangerous chemicals, like parabens, sulfates, phthalates, and bleach, that can cause side effects in the skin of a baby. When exposed to delicate parts of the face, these chemicals can cause rashes, inflammation, and skin allergies. The Alagh's started ordering goods from the United States in search of better options, but this proved to be more costly and uncomfortable.

This is not just it; soon, they came to know many young parents struggle with this, which is exactly how the idea to start Mamaearth occurs. Mamaearth's tagline is "Goodness Inside." People may gain a better understanding of the products that the brand manufactures and promotes.

Varun Alagh and Ghazal Alagh created Honasa Consumer, which runs the Mamaearth company, in an effort to provide goods that are clean, non-toxic, and organic by global standards.

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4P's of Marketing - Mamaearth

Product - The natural and toxin-free ingredients of Mamaearth's products set them apart from other personal care products on the market. In its products, the company uses a variety of plant-based components and avoids the use of harsh chemicals and artificial smells. Mamaearth's products have also been dermatologically tested and found to be hypoallergenic, making them suitable for even the most sensitive skin.

Price - Mamaearth's pricing strategy is a premium pricing strategy. This is due to the high quality of its ingredients and the fact that its products are natural and devoid of toxins. Mamaearth, on the other hand, offers a number of discounts and promotions throughout the year, making its products more cheap to customers.

Place - Mamaearth's distribution channel is spread across various sources like, including its own website, online marketplaces, and retail stores. This makes it easy for consumers to purchase Mamaearth products, regardless of where they live or how they prefer to shop.

Promotion - Mamaearth uses a variety of promotional channels to reach its target audience and generate awareness and interest in its products. The company is very active on social media, and it uses influencers to promote its products to its followers. Mamaearth also runs television commercials and print ads. The company uses a variety of channels to reach its target audience and make its products easily accessible.

Overall, the 4Ps of Mamaearth is focused on highlighting the quality of its products and their natural and toxin-free ingredients. The company uses a variety of channels to reach its target audience and make its products easily accessible. The marketing mix of Mamaearth sets a benchmark for its competitiors. As a result, Mamaearth has become a popular choice for consumers who are looking for safe and effective personal care products.

Marketing Strategy of Mamaearth

Marketing strategy is something that plays an important role in conveying the message. Below, we are going to talk about the marketing strategy of Mamaearth.

Enhancing Customer Base

It is critical to learn that by the time you have to enhance your customer base. You can’t be limited, and the world is your oyster. If we follow the pattern, Apple started with the CPU, then personal computers, then iPhones, iPods, and much more. All this time, they tried to grow. The same goes with Mamaearth; initially, it started out to be the company of mothers and babies. However, it gradually began to grow its client base. The company has now branched out into skincare. It offers bathing ingredients, skincare serums and ointments, face wash, moisturizers, hair oils, and a variety of other items. The greatest thing is that none of these items contain any chemicals.

Search Engine Optimization

Mamaearth's website is well-optimized for on-page SEO. The company uses relevant keywords throughout its website, including in its product titles, descriptions, and blog posts. Mamaearth also has a strong internal linking structure, which helps search engines crawl and index its website more efficiently. Mamaearth's website has an authority score of 51, 2 million organic visitors, and 219.2K visitors from paid search. The company also has a strong off-page SEO strategy. The company has built a large number of high-quality backlinks from other websites. Backlinks are among the most important factors in Google's ranking algorithm, so Mamaearth's strong backlink profile helps it rank higher in SERPs. Each month, millions of people visit the company's website, which prioritizes 91.5K terms.

Concentrate on Digital Platforms

All brands and companies know the value of digital platforms. We are in the digitalization era , so we can’t overlook this factor; Mamaearth knows it very well. Digital tools are used in Mamaearth's ad campaigns. The internet is growing, and most people rely on these digital channels for all of their knowledge base. As a result, the brand management approach utilizes these new outlets to raise brand awareness and attract a broader audience. Mamaearth's official website, Amazon , Flipkart , and other digital outlets sell the product. As a result, the company is establishing a robust digital footprint. Most of its sales come from online channels.

Brand Message

The brand message is a very important thing; it presents your brand in a nutshell. So, it should be precise, clear, and engaging. It should commence with the customers and proffer the feeling of home. Mamaearth's tagline and mission are "Goodness Inside." It ensures that the brand does not jeopardize the consumers' well-being. It offers goods that are free from contaminants and dangerous chemicals. The brand's goods are somewhat more expensive, but they are of the highest quality available.

Social Media and Influencer Marketing

Do you know how many people spend their time on social media? The answer is every second individual. We are actually living in the social media era where things can become memes, and people can become stars overnight. It can make and break people. But more than this, people believe what they see on social media. It is the platform for ordinary people to voice their opinions, and Mamaearth knows that. Because of this, Mamaearth has established robust social media marketing strategies . The crowd they seek is available on social media, so they approach various influencers to spread the word about Mamaearth. The company is engaged on several social media sites, including Twitter , Facebook , and Instagram . Mamaearth's Influencer Marketing is the most influential approach, which includes hashtags on platforms.

Brand Endorsement

It is one of the strongest pillars of Mamaearth's advertising strategy. It gradually increases the overall value of the brand. The thing is, when a celebrity talks about the product, people will fall for it no matter what. The same goes for if the brand is endorsing our favorite show; we will definitely pay attention to it. Mamaearth's growth accelerated after Shilpa Shetty , a well-known star, became a shareholder and product ambassador. She is involved in the creation of new technologies and marketing strategies. The actress used social media to promote the business. Not just this, Big Boss, a popular reality television program , is also sponsored by the company. The company has also roped in celebreties like Sara Ali Khan , Samantha Ruth Prabhu and Sharmila Tagore to advertise their products.

Word of Mouth

Now, this technique might seem vague, odd, and shameful to some of you, but it literally has benefits. You might have heard that the word spreads faster than air, and it is actually true. When you hear something from someone you know, you believe what they say with zero doubts, and this is exactly what Mamaearth planned. They start approaching the Mom bloggers and the customers who have a huge fan base and ask them to write their experience about the product.  Since the company trusts in the influence of mothers, it opted for a word-of-mouth approach in which mothers can inform people about the company and how it provides the best product for their children.

TV Commercials

The TV commercials method is considered the traditional method and somewhat old-schooled. Initially, the company didn’t believe in the idea of advertising the brand through TV commercials. They want to do something out of the box, but the thing is, TV has an influence on people, and this is exactly why they decided to dip their toes in the TV commercials, too. They did launch their first advertisement on the big screen about the onion hair oil. The good part was they focused on the benefits of using onion hair oil and how the person came to know about this brand through one of its colleagues. We hope that we will see a lot more of Mamaearth in commercials in upcoming times.

YouTube Marketing

There is no doubt that YouTube has become one of the strongest channels for spreading brand awareness. Almost half of the population prefers to watch review videos on YouTube rather than reading about them. This is exactly why brands want to take full advantage of the platform. There are many influencers on YouTube with a high number of subscribers that can spread awareness about the product. This is one of the most used marketing strategy of Mamaearth. The company has improvised its marketing strategy by reaching out to influencers on YouTube. Not only this, in comparison to traditional advertising, the marketing cost is modest.

Marketing Campaigns

The company has run a number of successful marketing campaigns over the years, which have helped it build a strong brand image and reach a wider audience.

#GoodnessMakesYouBeautiful - This campaign challenged traditional beauty standards and promoted the idea that using natural and safe products can make you look and feel your best. The campaign featured a number of popular influencers and celebrities, and it was widely shared on social media.

#IssWinterGlowNaturally - This commercial emphasized the advantages of utilizing Mamaearth's natural winter skincare products. The campaign included a video ad starring actress Shilpa Shetty Kundra, which was marketed on social media and on television.

Mamaearth for Babies - This campaign promoted Mamaearth's baby care products, which are made with safe and gentle ingredients. The campaign featured a video ad of a baby and its mother, and it was promoted across social media.

Mamaearth Plastic Positivity - This campaign promoted Mamaearth's efforts to reduce plastic waste. The campaign pledged to recycle one plastic bottle for every order placed, and it was promoted across social media and TV.

Mamaearth Plant Goodness - This campaign highlighted Mamaearth's commitment to sustainability. The campaign pledged to plant a tree for every order placed, and it was promoted across social media.

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STP of Mamaearth

Segmentation - Mamaearth segments it's market based on several factors:

• Demographic - Mamaearth primarily targets parents, with a predominant focus on mothers, aged between 25 and 45 years, from middle to high-income families, typically with young children and infants in their households.
• Psychographic - Mamaearth's target audience consists of health-conscious and environmentally-conscious parents who prioritize natural and organic products, place a strong emphasis on safety and toxin-free options for their families, and hold eco-friendly and socially responsible attitudes.
• Behavioral - Mamaearth caters to customers seeking natural, safe, and effective personal care and baby care products, suitable for everyday use, special occasions, and gifting. They engage both new and loyal customers through loyalty programs and incentives.

Targeting - Mamaearth's primary target market is parents who are concerned about the well-being of their families and seek natural, toxin-free products. They also target parents who are environmentally conscious and value sustainability. Mamaearth focuses on reaching middle to high-income families who are willing to pay a premium for safer and eco-friendly options.

Mamaearth also targets a secondary market of individuals looking for eco-friendly and natural personal care products, even if they don't have children, as their product range extends beyond baby care.

Postinioing - The postioning of Mamaearth is like brand that offers safe, natural, and toxin-free personal care and baby care products. The key elements of Mamaearth's positioning include:

• Natural and Organic - Mamaearth emphasizes the use of natural and organic ingredients, avoiding harmful chemicals, parabens, sulfates, and synthetic fragrances.
• Safety and Trust - The brand builds trust by emphasizing the safety and efficacy of its products through rigorous testing and certifications.
• Eco-friendly and Sustainability - Mamaearth promotes its environmentally-friendly practices and packaging to appeal to eco-conscious consumers.
• Parent-Centric - The brand positions itself as a partner to parents, catering to their needs and concerns about their children's well-being.
• Innovation and Quality - Mamaearth invests in research and development to offer innovative, high-quality products.
• Transparency - The company is transparent about its product ingredients and manufacturing processes.

Why Mamaearth rules over its competitors

Now comes the question that Mamearth is the sole ruler in baby care, and the answer is no. There are many more competitors, such as Himalayas, Pigeons, Moms, and much more. So, how come it is standing out in the crowd? This is something we should pay more attention to. The reason why Mamaearth is leading the race is that it focuses on customer’s needs. Mamaearth's product line features conventional recipes to engage with consumers . Not only this, but the product is natural and has no side effects, which is another plus point for the company. Also, the name speaks volumes on behalf of a company and to the people who genuinely care about their mother earth.

There you have it! This is our full take on the marketing strategy of Mamaearth. The intention of only using the finest of nature in Mamaearth's products is fundamental to the company's consumer strategies and marketing communications. The brand has been collaborating with influencer marketing to raise awareness of the brands and their exclusive selling propositions, as well as to establish credibility amongst health-conscious consumers. So, no doubt they have a strong marketing team and strategies.

Is Mamaearth an Indian brand?

The Mamaearth company is an Indian brand based out of Gurugram, Haryana.

Who founded Mamaearth company?

Mamaearth company was founded by Varun and Ghazal Alagh in 2016 .

Which type of differentiation does Mamaearth brand appeal of all the natural ingredients?

Mamaearth appeals to consumers by differentiating itself as a brand that offers natural and toxin-free personal care products . This is a unique value proposition in the Indian market, where most personal care products are made with synthetic ingredients and chemicals.

What is the Marketing Strategy of Mamaearth?

The most prominent strategy that Mamaearth uses in marketing is through social media . The Company collaborates with influencers and uses Influencer Marketing and hashtags on social media platforms.

Who is the brand ambassador of Mamaearth?

Sara Ali Khan is the brand ambassador of Mamaearth since April 2021.

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How Mamaearth achieved a one million customer base by introducing toxin-free personal care products

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We all probably have a plethora of healthcare and beauty products from various brands stacked up in our possession. Have you ever wondered how many of them contain toxic chemicals that can be extremely harmful to your body? Many products promise amazing results in the shortest possible time. But are they truly worth it? The biggest risk is when you buy body care products for your newborn or infant. Even the smallest traces of toxins and chemicals in it can cause serious health problems to their delicate body. It is always recommended to stick to products that use natural ingredients. Mamaearth is one such brand that you can blindly trust for the quality of their products.

Mamaearth ( 1 ) was founded in 2016 by Varun Alagh and Ghazal Alagh when they were expecting their first child. Launched as a company providing baby care products, Mamaearth has now grown into one of the most trusted personal care products brands in the country. They started with just six products and now have a wide range of more than 80 skin and hair care merchandise for both men and women. They also have products manufactured specifically for pregnant women. The commodities of Mamaearth are available in more than 500 cities across India. Mamaearth is the fastest growing personal care brand in India. As of now, they have a group of 1.5 million loyal and satisfied customers.

What makes Mamaearth stand apart from the rest of the brands in the industry is the emphasis given to health. It is the first MadeSafe certified personal care range in Asia which provides 100 percent healthy products. Mamaearth uses only natural ingredients that have been tested multiple times for their safety and side effects. You may remain on the safe side and be assured about the well-being of you and your loved ones. Their genuineness and authenticity have made them the favorite of customers from all over the country.

The birth of Mamaearth

The founders of Mamaearth, Ghazal Alagh, and Varun Alagh, came up with the idea of Mamaearth while they were preparing themselves for the arrival of their first baby. Just like any other parents, they wanted to ensure that they bought only healthy chemical-free products for their child. They gave up all adventures of life and decided to fully commit themselves to be wonderful parents. Ghazal and Varun taught themselves about every aspect of looking after a baby. The couple started researching online to find harmless baby care commodities but were alarmed by the results. All of them contained one or the other toxic substance that might pose a threat to the baby’s safety.

As soon as their little one was born, Ghazal and Varun knew they had to find the most suitable products for their bundle of joy. When they could not find any healthy baby care commodities in the market, they started ordering from the United States. Even though it turned out to be expensive and inconvenient, they could not give up on their child’s health. They felt the same concern for the newborns of their friends and family members. After much research about baby care, the couple decided to set up an R&D and start working on the certification of their products.

Finally, in 2016, Mamaearth was inaugurated under the parent company Honasa Consumer Pvt Ltd. They started their business from Gurugram, Haryana, and sent their products to various parts of the country. In the beginning, the products of Mamaearth were available from their website. Later on, they made their range of merchandise available on online shopping platforms like Amazon, Flipkart, Nykaa , etc. Currently, the fantastic products of Mamaearth can be bought from more than 2000 stores spread across 40 towns in India.

The vision behind Mamaearth

Being a product made by a pair of parents for others just like them, Mamaearth guarantees trust and reliance. When launching the company, Varun Alagh and Ghazal Alagh wanted to serve every little one they knew. Mamaearth offers products that take care of everything from a baby’s head to toe. By using ingredients that meet international standards, Mamaearth hopes to make personal care, a lovely time for all. This honest dream is what has brought them great success within just four years.

The team behind Mamaearth continuously strives to learn about the issues that people face and find solutions for it. For example, they have created unique products such as bye-bye dark circles under eye cream, union hair oil, etc., which works wonders for all. All these are made using human-made or plant-based components that are entirely safe for our bodies. They always uphold the vision of helping all mothers to provide the best care for their babies. Mamaearth hopes to reduce the rate of parental stress by serving all needs of their newborns.

Tremendous achievements within four years

Ever since Mamaearth was launched in Gurugram back in 2016, the company has witnessed exponential growth. In the ET Brand Festival of 2019, Mamaearth was declared as “One of the Best Brands” in India. They have also stayed true to their commitment to Mother Earth. The company reduces the use of plastics and recycles as much plastic as possible. Mamaearth had also initiated a campaign called ‘ Let’s Recycle ‘ which spreads awareness about environmental issues by allowing the consumers to be a part of the movement.

The famous actress Shilpa Shetty had also made an investment in Mamaearth after she was highly fulfilled with their range of products. The growth of the company through these years has been incredible. Very few companies in India have been able to cross the 100 crore mark within just four years. By 2025, Mamaearth hopes to expand its client strength from one million to ten million. The founders, Varun Alagh and Ghazal Alagh also hope that the company will one day become a 500 crore brand.

Mamaearth funding and investments

The most prominent investors in Mamaearth are Sequoia Capital India, Stellaris Venture Partners, Shilpa Shetty, Fireside Ventures, etc. The seed round of investment for Mamaearth was conducted in December 2016 led by Fireside Ventures. Later, they led a venture round of funding in 2017, which raised one million dollars. The series A round of funding was carried out in September 2018, which generated four million dollars. The latest round of investment in January 2020, was led by Sequoia Capital and it boosted the total funding amount of Mamaearth to 23.3 million dollars.

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