Lessons for Startups
The journey of Marico Industries, particularly its flagship brand Parachute, holds profound lessons for entrepreneurs and startups alike. Harsh Mariwala, the chairman and founder of Marico, shared a pivotal story during his acceptance of the Lifetime Achievement Award at the 6th Injection, Blow, Roto & PET Moulding International Summit 2018 in Mumbai. This Parachute Packing Story for startups, which illustrates the transformation of the packaging industry, is not just about a shift in material; it’s a lesson in persistence, adaptability, and innovation—key qualities for any startup navigating its own journey.
The Parachute Packaging Revolution
In the early 1980s, the idea of replacing traditional tin containers with plastic packaging for edible-grade coconut oil seemed revolutionary. However, when Marico attempted to introduce this shift in packaging, the idea was met with resistance. Retailers were wary because a competitor’s earlier attempt with plastic packaging had failed—rats had damaged the containers, causing oil spills and destruction in their shops. This failure had left a lasting negative impression, making the transition to plastic difficult for Marico.
Rather than abandoning the idea, Mariwala and his team went back to the drawing board. They researched the problem, engaged with retailers, and uncovered key insights. The design of the previous containers was flawed, allowing rats to easily damage them. Armed with this knowledge, Marico designed a round-shaped container that had no edges for rats to cling on and minimized the smell of oil, thus preventing rodent damage.
Image Credits: Linkedin/Eashan Trehan
What truly set Marico apart, however, was their approach to building trust. They tested the new packaging by putting it in a cage full of rats, took photographs of the untouched containers, and used this visual evidence to reassure retailers that the problem had been solved. Additionally, they provided a guarantee to compensate for any damages if they occurred. This combination of innovation, research, and customer assurance helped Parachute make the transition from tin to plastic, revolutionizing the market and securing Marico’s position as a leader in the FMCG sector.
Lessons for Startups: The Parachute Packing Story as a Metaphor
Startups often face their own “Parachute packing” moments when trying to introduce an innovative idea or product into the market. Here are a few takeaways from Marico’s journey that are relevant for entrepreneurs embarking on their startup travel:
1. Understand Your Market
Just like Marico took the time to understand why retailers were hesitant about plastic packaging, startups need to actively listen to their customers and stakeholders. A brilliant product can still fail if it doesn’t address the concerns of its target audience. Market research is essential, not just at the beginning, but at every stage of the startup journey.
2. Adaptability and Iteration
Innovation often involves trial and error. The initial resistance faced by Parachute packaging wasn’t a failure, but an opportunity for improvement. Startups, too, need to iterate on their product or service. Feedback is not a setback, but a stepping stone toward refinement and success.
3. Building Trust
Mariwala didn’t just introduce a new container; he built trust by offering a guarantee and presenting evidence that the new packaging was superior. Similarly, startups need to demonstrate value and reliability to their customers. Whether through offering trial periods, guarantees, or transparent communication, building customer confidence is crucial for growth.
4. Persistence
The Parachute story is one of persistence. Startups often face setbacks, whether in product development, market entry, or scaling. However, persistence and a willingness to solve problems can turn obstacles into opportunities. Mariwala’s determination to find the right solution to the packaging problem mirrors the resilience that every startup needs to survive and thrive.
5. Scalability
Marico didn’t stop with success in India—it scaled its operations to Bangladesh, implementing the same strategies and finding even greater success abroad. For startups, scalability should be part of the long-term vision. Once you’ve found a solution that works, it’s essential to think about how that can be replicated or expanded to new markets or customer segments.
Correlating to the Startup Journey
Every startup begins its journey with an idea, just as Marico did when it sought to replace tin packaging with plastic. Along the way, obstacles arise—be they market resistance, operational challenges, or product flaws. The key is in how the startup reacts to these challenges. Does it abandon the idea, or does it go back, refine the solution, and persist? In this sense, the Parachute packing story is a perfect metaphor for the startup journey.
Just as Marico had to prove its new containers’ value to the retailers, startups must continually prove the worth of their product or service to their market. Trust is earned through consistency, transparency, and delivering on promises. And just like Marico expanded into new territories once its model proved successful, startups too should look for opportunities to scale and grow beyond their initial scope.
Image credits: Indian Retailer
The Parachute packing story reminds us that success in business is not about avoiding challenges but confronting and overcoming them.
For startups, the journey from idea to success is full of twists, turns, and resistance. But with persistence, innovation, and an unwavering focus on customer needs, the path to success can be paved—just like it was for Parachute and Marico.
In the end, the startup journey, much like Marico’s, is about finding the right solutions, building trust, and seizing opportunities for growth.
IS360 Can be Reached at
Sharing is caring!