Mamaearth a company that started 5 years ago is beating big brands like Dabur, and Johnson&Johnson. What is so special about Mamaearth? How Did Mamaearth Become Successful? And most importantly what are those powerful business lessons we can learn and implement in our business?
How Mamaearth Was Started?
This story starts in 2016 when 28-year-old Ghazal Alagh became a mom for the very first time. Most of the time when a lady becomes a mother for the first time, they are fear taking care of the child. Because of no experience.
Ghazal Alagh’s son – Agastya was born with a special kind of skin condition. When she applied anything to his skin, he used to feel irritated and he used to start crying. Ghazal tried every company product, nothing suited him. And seeing no escape, she shifted to foreign brands. And interestingly all foreign brands used to suit Agastya.
It was a happy thing but there was also a very big problem. The problem was many foreign baby care brands were not available in India. And they had to import these products from foreign and it was very costly.
Ghazal talks and discusses this problem with her husband. Her husband used to say only one single thing -Try it yourself, hope things change. And from here Mamaearth started. A product that started with only 6 products now has more than 200 products in the market.
How Mamaearth did do this?
The consumer profile looks something like this.
- Age and Gender
- Consumer Education – How much do consumers know about the product?
- Spending Capacity – How many consumers can spend on products?
- Availability- Is the product available where the consumer lives or not?
How Did Mamaearth Become Successful?
Do you know what was the biggest difference between foreign baby care products and Indian products? Foreign brand products were toxin-free products Which means they didn’t include any chemical or ingredient in their product that produced toxins on the baby’s skin.
Interestingly there are more than 1500 ingredients banned to use in baby care products in foreign. Unfortunately, there are no such rules and regulations in India. While customer profiling, Ghazal Alagh found that 95% of the people who brought baby products were Moms.
But Moms don’t have any proper education about which products to use on their baby’s skin and which not. They didn’t know which product is good for their baby’s skin and which is harmful. So to solve this problem Ghazal Alagh started talking to many baby care product manufacturers.
And asked them Can we make baby products using toxin-free products? And everyone gave the same response -“Yes Ma’am, we can make but no one is making it in India currently”And from here Mamaearth’s journey accelerated.
Mamaearth Business Strategy
Firstly, they worked and made 6 baby care products and launched them in the market. During initial days, they distributed them to their friends and relatives and asked for reviews.”Use these products and tell us what’s lacking in them, and what things we can improve. “Are these products suitable for your kids or not? “Use them and tell us Whatever may the response be, Ghazal Alagh took the feedback and made improvements.
When all this was going on, the same question was asked many times. The question was- Why should we trust you? What’s special about you so that we buy your products? We won’t buy it. Because at that time Dabur, HUL, and Johnson&Johnson – these brands were ruling the market.
Difference Between Mamaearth And Others
People blindly trusted the brands. Then why should they trust Mamaearth? For this solution, Mamaearth collaborated with MadeSafe – a US non – profitable company. MadeSafe does safety testing of health care and beauty products.
You will get shocked to know that – Mamaearth is Asia’s first and only brand that has MadeSafe Certification. MadeSafe made the work of Mamaearth easier. But still, there was a big problem in the Indian market. They got MadeSafe Certification but many Moms didn’t know that the products they are using on their children are harmful. This is one of the reasons Mamaearth become successful.
Mamaearth Marketing Strategy
The things Mamaearth was telling in the market that what’s good for kids and what’s not, Many ladies didn’t know about it. When one lady used to know this, she happily shared it with her group. This thing kept increasing day by day and Mamaearth became very popular among ladies.
Then Mamaearth raised some funding and then digital and influencer marketing started capturing the market. But still, the question is – Without any business experience or business background, How did Ghazal Alagh do this thing?
See those people who have used Mamaearth products would be knowing that -Mamaearth’s products are expensive compared to normal products. Most of Mamaearth’s products come in the premium category.
The question is How Did Mamaearth Become Successful? The answer is Consumer Insights and Personalism. Now understand this carefully.
If you see any beauty product ad, you would find one thing in common. The common thing is – It’s all about you. In any beauty care ad, any brand will not talk much about the product, they will always talk about you.
And so most of the ads are made to target your self-esteem or your insecurities. Now The question is How this thing applies to baby care products? So the answer is hidden in Mom’s Psychology.
The psychology of Indian Moms is set such that they would always think about family and kids first than themselves. And due to this reason, Kid’s Horlicks is a hit, and Woman’s Horlicks is a fail. Ghazal collected more than 700 ladies’ consumer insights, took feedback, made improvements, and kept going.
They introduced such products in the market that Moms can trust blindly. And when Mamaearth made products based on these consumer insights a message was sent in the market that We are also a part of this product, our say is there in this product.
Hence, sales of Mamaearth skyrocketed. And ladies didn’t care about cost – they are more expensive than normal products or not.
When one thing becomes successful we get stuck only in it. And this is our biggest mistake. In 2007, Steve Jobs changed Apple’s Computers Incorporations name to Apple. Because now Apple was going to enter in many different products. And the iPhone, iPad, and iWatch – Apple launched this product.
Today’s date, Apple’s 50% of revenue comes from iPhones and only 11% from computers. Mamaearth started with 6 baby care products and today Mamaearth sells more than 200 products.
And shockingly 20% of the sale is from baby care products. There 80% of sales come from personal care products, not baby care. Mamaearth launched beauty care products for not only kids but for Moms, dads, and teenagers.
And due to this reason, Mamaearth become a 10,000 Crs company
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