Saturday, April 20, 2024
HomeBusinessThe Success Story Of "Mamaearth" From An IP Perspective

The Success Story Of “Mamaearth” From An IP Perspective

The Remarkable Journey of Mamaearth

Mamaearth, a name that resonates with quality, safety, and a commitment to providing organic alternatives, has grown leaps and bounds since its inception. What began as a visionary endeavor by the dynamic duo of Varun Alagh and Ghazal Alagh has now positioned itself firmly among India’s leading corporate conglomerates, with its headquarters situated in Gurugram, Haryana. This remarkable transformation has not only revolutionized the organic product market but also solidified Mamaearth’s place as a trusted brand for conscious consumers.

The Remarkable Journey of Mamaearth

1. The Birth of a Vision

Mamaearth’s story began in 2016, a pivotal year in the realm of organic products. Co-founded by the formidable team of Varun Alagh and Ghazal Alagh, the company embarked on a journey with a clear purpose – to provide an unwavering Indian alternative for discerning customers who sought non-toxic, chemical-free products. It aimed to cater not just to the needs of individuals but particularly to those of parents who wished for safe, natural options for their children.

2. The Power Couple Behind the Brand

Varun Alagh brought invaluable expertise to the table, stemming from his extensive background in the FMCG industry. His professional journey included notable positions at industry giants such as Coca-Cola and Hindustan Lever. This wealth of experience equipped him with a deep understanding of consumer needs, market dynamics, and the drive to innovate.

Meanwhile, Ghazal Alagh, with her remarkable career as a corporate coach in the IT sector, added a different dimension to the venture. Her insights into leadership, team building, and organizational excellence became pivotal in shaping Mamaearth’s internal culture and external success.

3. The Rise to Prominence

Today, Mamaearth stands tall as a symbol of reliability and safety, particularly in the domain of cosmetics. The company’s commitment to producing high-quality, chemical-free products has gained it a devoted following. Its specialization in baby care products has been a game-changer, reassuring parents about the well-being of their little ones.

The journey to prominence wasn’t without challenges. Mamaearth’s consistent dedication to producing safe and reliable cosmetics, combined with a clear vision for growth, paved the way for its remarkable ascent in the Indian market.

4. A Leader in the Organic Product Market

Mamaearth’s rise hasn’t just been about business success; it’s about setting new standards for the industry. The company’s dedication to organic products has elevated it to a leadership position. It has inspired other brands to focus on safer alternatives, thereby fostering a positive change in the consumer goods landscape.

5. The Trusted Choice for Baby Care

Mamaearth’s focus on baby care products has been particularly significant. Parents across the nation have come to rely on Mamaearth’s offerings, knowing that they provide the best for their little ones. This trust is the result of the company’s unwavering commitment to quality and safety, and it’s a testament to Mamaearth’s unique value proposition.

In a relatively short span of time, Mamaearth has transformed from a promising Indian brand to a corporate powerhouse, redefining the way we view organic products. Its founders, Varun Alagh and Ghazal Alagh, have championed a vision that has not only led to business success but also contributed positively to the well-being of consumers. Mamaearth’s journey is a testament to the power of commitment, innovation, and a deep understanding of customer needs.

Recognizing The Need of The Market – Targeted Customer Acquisition

In India, ‘cost-friendly’ generally equals to ‘consumer-friendly’. But without compromising on their tagline, i.e. ‘Goodness Inside’, this company has climbed up the profit ladder. How was this possible? The answer is that there has been a noticeable paradigm shift in the customer attitude especially in the well-informed millennials.

They generally have an inkling of changing their preferences from artificial or chemical to natural commodities, especially ones that come under the ambit of body care ointments, or skincare masks, pastes or creams, like non-chemical moisturizers, face washes, hair care lotions, essential herbal oils, etc. This is why, notwithstanding the aforementioned change in attitude, consumers cannot get the much-needed guarantee that they are utilizing the best quality products.

Profit in Pandemic – A Blitzkrieg Online Sale Strategy 

Mamaearth has had its own record-breaking sales in the middle of the pandemic where other businesses were dropping out of the corporate sky like feeble flies. This is mainly because of Mamaearth’s excellent and strategic use of online platforms like Amazon, Flipkart, etc.

Generally, these e-commerce moguls design their contracts in such ways that do not let the companies availing their services turn into bigwigs. There is always some ceiling to your profits and these bigwigs ensure that the embryonic companies remain dependable on their services for delivering their own products.

But Mamaearth circumvented this ceiling and surpassed it by developing its own SEO efficiency and customer acquisition techniques. Not only did this bolster their sales, but it also made them independent of these corporate giants. 

An Established Online Brand – Branching Out From The Shadow of The Big Trees

When one develops such a strong and firm online presence, the customers are bound to feel associated with your products. It is the age-old, ‘use honey if you want to catch more flies’ strategy, but this company has implemented it very efficiently and its results can be seen in Mamaearth’s annual turnover.

Starting with an income base of Rs. 17 crore in the financial year of 2019, today this company currently boasts an annual yearly revenue which is upwards of Rs. 710 crore ($100 million). Cultivating and promoting their personal brand has allowed Mamaearth to expand their customer acquisition horizons even beyond Amazon, Flipkart or Snapdeal’s reach.

Today their business model has become a hybrid illustration of a standard commodity-selling start-up and now Mamaearth offers their natural products to online customers either via direct-to-consumer platforms but it has also branched out to more conventional and disconnected stores.

Due to all these steps, not only has the Mamaearth brand flourished throughout the country, but a copyrighted version of search algorithms and other digital coding programs has opened up a new revenue stream for Mamaearth, since now companies have to line-up to get their permission to use those programs and algorithms. 

Simplicity And Range in Copyrights – The Widespread IP Policy of Mamaearth

As mentioned earlier, the algorithms of Mamaearth are copyrighted whereby they receive royalty checks at the end of each fiscal quarter from various users who wish to engage and avail the services of their search algorithms. Mamaearth licenses its SEO targeting algorithms to other wishful entrepreneurs and via legally binding agreements, assigns to them a portion of its own IP rights over its algorithms, which is limited to their use for a certain stipulated period of time. 

The brand has also protected its brand name by trademarking it, copyrighting it and it has also received a word mark and device mark for the same. Moreover, since Mamaearth creates so many varied and unique lists of health care or hygiene products, it has patented each of the unique blends of ingredients that are used in such products.

The company has also achieved protection for the unique design and packaging of its product. The designs carry a registered copyright and also have a design patent except for when the accessories of their products are involved in the functionality of the product, such as their face wash bottle with an in-built scrubber.

Such all-around protection for its brand name has secured the company from any frivolous or malicious litigation attempts to usurp its brand. It also protects the company if any other competitor tries to replicate its one-of-a-kind products.

External Funding And Influencer-Oriented Brand Endorsement – A Marketing Masterstroke

The finance reports of Mamaearth are no less than a fable. Start at the beginning and then go on enjoying, because it’s a really good read. Investors like Rohit Bansal or Kunal Bahl have contributed in giving Mamaearth their capital. Other hedge funds and investment firms like Sequoia India, Fireside Ventures, Sequoia India, etc have also poured in a lot of dough in Mamaearth’s war chest.

Rishabh Mariwala and Shilpa Shetty Kundra are some other notable ones among so many other investors who have confidently lent their capital to Mamaearth. As per the reports of Crunchbase, this company has raised a total funding of more than $23.3 Million. Back in September 2017, Mamaearth attained the million-dollar mark, and following this, the company bagged a four-million-dollar influx in its Series A funding round in September 2018. Further in January 2020, Mamaearth raised eighteen million dollars on their next go at the funding series. 

In the trendy world of social media marketing, reels, photos, and Instagram live sessions are all the buzz nowadays and social media influencers have a firm grasp on perfecting this art. So hiring them to endorse one’s product is again a good strategy. Shilpa Shetty Kundra is a glaring example of such a celebrity who has invested substantial capital in the direction of the company’s growth.

Not only social media influencers but Mamaearth works with almost five hundred more bloggers to spread its content. Blogs and short write-ups are catchier to a general customer than research papers. This helps the company maintain and sustain a powerful online presence. 

When an influencer endorses a brand like Mamaearth, the content travels throughout the individuals in their local area and it is portrayed in an overhyped tone since the main intention of such influencers is to impact people around them. They explain and educate their followers about the lab-tested products and clinically proven results of companies such as of Mamaearth.

Shilpa Shetty Kundra has become a brand ambassador and investor of the brand and this has accelerated and expedited the growth and progress of this company to an astronomical scale. Shilpa herself has an amazing media outreach and a strong online presence on all social media and she has used, engaged, and implemented all the recourses that were at her disposal to promote the brand that she believes in.

Also read:

Aayushi Chopra
Aayushi Chopra
Aayushi Chopra is a law student who is interested in creating content on education, lifestyle, law, health, and environment. She enjoys researching different topics and then expressing her views on them.
RELATED ARTICLES

Leave a Reply

Most Popular