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Beardo’s strategic partnership with Marico

Meetali Saxena (MBA at the L J Institute of Management Studies, Ahmedabad, India)
Harleen Mahajan (Department of Management, L J Institute of Management Studies, Ahmedabad, India)

Publication date: 15 December 2022

Abstract

Learning outcomes

• The students will be able to compare various perspectives and concepts of strategic alliance as a tool of corporate expansion.

• The students will be able to identify the trade-offs between financial and non-financial gains and losses for corporate expansion.

• The students will be able to identify strategic partnership as a better alternative in comparison to acquisition and vice versa according to the different situations being faced by the companies.

• The students will be able to identify different approaches for brand building.

Case overview/synopsis

Shah and Valani, owners of Zed Lifestyle Pvt Ltd which owned Beardo, had to decide whether they should accept the offer of a strategic partnership with Marico Industries, a fast-moving consumer goods company (FMCG) in the global beauty and wellness space. Marico nurtured leading brands across categories of hair care, skin care, edible oils, healthy foods, hygiene, male grooming and fabric care. The decision was not easy as Marico was a leader in the FMCG segment in India and had a strong brand presence in both online and offline distribution channels. Beardo, on the other hand, had its presence marked mostly on the online channel with a hundred offline salon outlets. Partnering with Marico would ensure access to the massive distribution channel owned by Marico but, on the other hand, would lead to possible loss of independence and an early exit from their business. They were not prepared to let go of their ownership as there was no clarity on what would happen if the projected growth figures were not met. There were many other questions too that crossed their minds which had to be answered before they decided on a yes or a no.

The case highlighted the decision dilemma faced by the brand owners, the market scenario, competitive landscape and the situational facts so as to help the students critically analyse the decision situation and develop decision-making competencies by evaluating the possible course of actions and their possible outcomes.

Complexity academic level

Corporate-level strategies.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

Keywords

Acknowledgements

The authors are extremely grateful to Mr Priyank Shah for sharing their journey and business insights to help us write this case. The authors are also greatly indebted to Professor Mukund Dixit, Retired Faculty, IIM Ahmedabad for critically reviewing our case and providing his critical insights and expert guidance to help us enhance the quality of the case.

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.

Citation

Saxena, M. and Mahajan, H. (2022), "Beardo’s strategic partnership with Marico", , Vol. 12 No. 4. https://doi.org/10.1108/EEMCS-06-2022-0201

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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