How could a five-year-old startup knock off large names like Dabur, Johnson&Johnson, and HUL? What makes Mamaearth so unique? And, most importantly, what are some of the most effective business principles we can learn and apply in our own company. Who would have guessed that a woman from a tiny village in Chandigarh, who had never heard of B of Business, would be evaluating several organizations on the Indian entrepreneurship show Shark Tank? We are talking about – Ghazal Alagh, The founder of Mamaearth.
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Hence the story began in 2016, when 28-year-old Ghazal Alagh became a mother for the first time. Almost all of the moment, when a woman becomes a mother for the first time, she is concerned of taking care of the child. Due to a lack of experience. Ghazal Alagh’s kid, Agastya, was born with a rare skin condition. When she put anything on his skin, he became irritated and began crying. Ghazal tried every firm product, but nothing worked for him. And, with no other option, she switched to international brands. And, surprisingly, all foreign brands used to fit Agastya. It was a pleasant thing, but there was also a major issue.
Many international baby care brands were not available in India, which was an issue. And they had to import these things from abroad, which was incredibly expensive. And how does a middle-class family afford something that is too expensive? And this truth drove Ghazal. Ghazal addresses the situation with her husband. Her spouse would only suggest one thing to her: “Try it yourself and hope things change.” Mamaearth takes it from there.
Beginning of Mamaearth
A product that began with only six goods today has over 200 products on the market. The question is, how did Mamaearth do this? Do you know what the largest difference was between international and Indian infant care products? International brand items were toxin-free, which implies they did not include any chemical or component that generated toxicities on baby’s skin.
Surprisingly, over 1500 components are prohibited in overseas infant care products. Regrettably, such norms and restrictions do not exist in India. Ghazal Alagh discovered that 95 percent of the customers who brought baby items were mothers while conducting consumer profiling. However, most mothers are unaware of which cosmetics are safe to put on their children’s skin. They had no idea which products were safe for their baby’s skin and which were detrimental. To address this issue, Ghazal Alagh began speaking with other makers of infant care products. And asked them whether we could produce baby goods out of non-toxic materials.
Mamaearth’s experience escalated from there. First, they tried to develop and commercialize six infant care items. Initially, they distributed them to friends and family and solicited feedback. “Use these items and tell us what you don’t like about them and how we might enhance them.Are these goods appropriate for your children?”
Regardless the reaction, Ghazal Alagh focused on it and made adjustments. Throughout all of this, the same question was posed repeatedly. Why should we trust you, was the query. What is it about you that makes us want to buy your products? We will not purchase. Because Dabur, HUL, and Johnson&Johnson ruled the market at the time. People have naive faith in the brands. Then why should they believe Mamaearth?
Competing with Biggies with Words of Mouth
Mamaearth collaborated with MadeSafe, a non-profit organisation in the United States, to develop this solution. MadeSafe tests the safety of health and beauty products. You’ll be surprised to learn that Mamaearth is Asia’s first and only MadeSafe Certified brand. Mamaearth’s task was made easier by ‘Made Safe’. However, there was still a major issue in the Indian market. They received MadeSafe certification, but many mothers were unaware that the items they were putting on their children were dangerous.
People often ask Ghazal, “What’s free with your product?” when she informed them my items were Sulphate free. To address this issue, Ghazal began teaching its existing clients. The majority of Mamaearth’s previous clients were females, and you know how ladies are. If a woman knows something that no one else in her acquaintance circle knows, she gladly shares that knowledge. Many females were unaware of what Mamaearth was teaching them in the market about what’s healthy for kids and what’s not.
Once one lady discovered this, she gladly shared it with her group. This trend grew day by day, and Mamaearth became quite popular among women. Mamaearth then obtained additional cash and began to capture market share through digital and influencer marketing. However the question remains: How did Ghazal Alagh do this without any business expertise or background? Those who have utilized Mamaearth products are aware that their products are more expensive than standard ones. The majority of Mamaearth’s items are in the luxury category.
Advertising Strategy that works
The issue is, how can this brand succeed in a price-sensitive country? Consumer Insights and Preferences is the answers. Now consider this carefully. One thing is common in all cosmetic product advertisement. The point is, it’s all about you. Any beauty care advertisement will never mention the product; instead, it will always mention you. Do you know why? Because beauty care products are so individual. As a result, the majority of advertisements are designed to appeal to your low self-esteem or anxieties.
The issue is, how does this relate to infant care products? As a result, the solution is concealed in Mom’s Psychology. Indian mothers’ mentality is structured in such a manner that they prioritise family and children before oneself. As a result, Kid’s Horlicks succeed whereas Woman’s Horlicks fail. Ghazal gathered over 700 female customer insights, solicited comments, made changes, and continued going. They developed items on the market that Moms may blindly trust.
Because when Mamaearth created goods based on these consumer insights, it conveyed a message to potential customers that said, “We are also a part of this product, and we have a say in it.” Then Mamaearth’s popularity increased greatly. And the ladies were unconcerned about the price, whether they were more costly than traditional items or not.