MANAGEMENT EDUCATION & RESEARCH INSTITUTE
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER V (Batch 2023-2026)
Assignment 1
Mamaearth: Crafting Strategy in the Age of Conscious Consumers
Company Overview
In 2016, Mamaearth was developed out of a personal concern regarding the availability of safe,
healthy, and chemical-free baby care products in the Indian market. Varun Alagh, a former
executive at Hindustan Unilever, and Ghazal Alagh, a corporate trainer who turned to
entrepreneurship, co-founded Mamaearth under Honasa Consumer Pvt. Ltd. Their objective was
to develop a brand that parents could rely on, offering toxin-free, dermatologically tested products
composed of natural ingredients.
The brand rapidly diversified from its initial focus on infant care to include skincare, haircare,
men's grooming, and wellness. It adopted the Direct-to-Consumer (D2C) model early, utilizing
social media marketing, influencer collaborations, and e-commerce platforms like as Amazon,
Nykaa, and Flipkart.
In 2021, Mamaearth emerged as India's initial unicorn in the personal care sector, with a valuation
of over $1.2 billion. In 2023, it executed a successful Initial Public Offering (IPO) on the Indian
stock exchange.
Key Strategic Decisions
1. D2C First Approach: Skipped traditional retail initially, built a loyal online customer base
through direct channels.
2. Rapid Product Expansion: Within five years, Mamaearth launched over 100 SKUs across
multiple categories.
3. Celebrity Endorsements: Alia Bhatt became a brand ambassador and investor in 2021.
4. Content + Commerce: Emphasized storytelling via influencers and YouTube to build
trust.
5. Offline for Scale: Post-2022, the brand entered physical retail stores, countering the
limits of online-only sales.
Challenges in the Strategic Landscape
Despite its remarkable trajectory, Mamaearth's swift rise has presented numerous strategic
challenges.
1. Risk of Brand Dilution
Critics contend that the brand's extensive product line, which includes infant cream, charcoal face
cleanser, and vitamin gummies, attempts to cater to "too many consumers." The implied benefit of
being a focused, purpose-driven brand may be diminishing.
2. Intense Rivalry
Legacy corporations such as Hindustan Unilever (Simple, Love Beauty & Planet), Procter &
Gamble, with emerging brands like WOW Skin Science and The Moms Co., are crowding the
"natural" and "organic" market.
3. Profitability Constraints After the Initial Public Offering
Despite substantial investments in marketing and innovation, analysts are questioning the
company's capacity to generate sustained profitability. With increasing CAC (Customer
Acquisition Cost), the IPO brings pressure for quarterly performance, possibly at odds with long-
term innovation.
4. Supply Chain Complexities
As Mamaearth scales, it now needs consistent, large-volume sourcing of natural ingredients, fast
fulfillment infrastructure, and compliance with international regulations, especially as it eyes
Middle East and Southeast Asian markets.
Assignment Tasks
1) As a student of strategic management, you’ve been appointed as a junior strategy
consultant to Mamaearth’s core team. Your task is to assess the company’s strategic
journey so far and propose a well-grounded strategic roadmap.
2) Explain the significance of business policy in the context of Mamaearth’s growth. How can
a formalized business policy help align its diverse product categories?
3) Based on your research:
• State Mamaearth’s actual or proposed Vision and Mission
• Draft 2 SMART strategic objectives for the next 3 years
• Recommend one generic strategy (cost leadership, differentiation, focus) best suited to
the brand
4) Suggest:
a) Three key strategic activities Mamaearth should prioritize in the implementation phase.
b) A basic strategic control framework to evaluate performance post-IPO.
Assignment Instructions
1. The assignment must be prepared on A4-size sheets.
2. It should be a minimum of 10 pages, excluding the cover page.
3. A proper cover page must be included, clearly mentioning:
• Assignment Title
• Student’s Name
• Enrollment Number
• Course and Section
• Subject Name and Paper Code
• Faculty Name
4. The assignment should be neatly handwritten and submitted in a proper file.
5. A printout of the case study should be attached along with the assignment.
6. Ensure the work is well-structured and clear.
7. A viva based on the assignment will be conducted, and students must be prepared to
answer questions.
