Marketing Project Aditi
Transcript of Marketing Project Aditi
From high tech engineering solutions to world-class consumer products, Godrej is an integral part of the lives of millions of Indians. Setting quality benchmarks and redefining customer satisfaction, it enriches lives across boundaries. It is today one of the largest engineering and consumer products company in the country having varied interests from engineering to personal care products. It is also one of the most respected corporate houses known for its philanthropy and initiation of labour reforms besides being recognized for their values of fair, transparent and ethical dealings.
GODREJ Group Profile
Godrej group of companies :
The spirit of entrepreneurship, the vision of a dynamic tomorrow, and the capacity to build and realize dreams! This is the essence of the Godrej group. No wonder then, Godrej has become the symbol of a vibrant multi-business enterprise touching the lives of millions and at the same time an icon of enduring ideals in a changing world.
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Godrej Group Profile
Started in 1897 as locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej's success has been driven by the company's commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability. In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization's history. Today Godrej is delivering consumers exciting innovations across a spectrum of businesses. The company's pursuit of excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents were unharmed; an equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej management understands that the company's greatest asset is the trust and faith that consumers have reposed in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does.
Godrej's ethical and visionary practices have allowed the company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agri products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth.The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.
Godrej Consumer
Products Limited
Godrej consumer product Vision
“We are dedicated to DELIVER SUPERIOR STAKEHOLDER VALUE
by providing solutions to existing and emerging consumer needs in the Household & Personal Care business.
We will achieve this through ENDURING TRUST & RELENTLESS INNOVATION delivered with PASSION & ENTREPRENEURIAL SPIRIT.”
About GCPL:
Godrej Consumer Products Ltd. (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The company employs 950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.) Guwahati (Assam) and Baddi (H.P.).
Focus is on providing the customers with innovative, value for money solutions for meeting their daily needs and improving the quality of their life. This is achieved through the brands the company markets.
It is among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, and GODREJ NO 1. The FAIRGLOW brand, India's first Fairness soap, has created marketing history as one of the most successful innovations.
Godrej is the leader in the hair color category in India and have a vast product range from GODREJ RENEW COLOURSOFT LIQUID HAIR COLOURS, GODREJ LIQUID & POWDER HAIR DYES to GODREJ KESH KALA OIL, NUPUR based Hair Dyes.
Their Liquid Detergent brand EZEE is the market leader in its category.
Godrej is also the preferred supplier for contract manufacturing of toilet soaps be some of the most well-known brands in the country. It is supported in its Endeavour by a state-of-the-art Research Centre based in Mumbai. Its quality products have been received very well in the international market and it is present in many countries across the world.
Board of Directors Mr Adi B Godrej------ Chairman and Managing
Director Mr Jamshyd N Godrej Mr Nadir B Godrej
Mr Bharat Doshi Dr. Omkar Goswami Mr. A Mahendran Mr Aman Mehta Mr Hoshedar K Press, Executive Director and
President.
Godrej Brands
Godrej Consumer Products Limited
A 7 year journey 2001-2002 to 2007-08
GCPL in 2001-02 …
Three manufacturing facilities Guwahati (Assam) Malanpur (M.P.) Silvassa
5 soap brands – No. 1, Cinthol, Godrej Fairglow, Crowning Glory & Godrej Shikakai
5 hair color products – ColourSoft, Powder Hair Dye, Godrej Liquid Hair Dye, Godrej Kesh Kala, Anoop
Toiletries business comprised shaving cream, talcum powder,
Deodorant and fairness cream Ezee available in the fabric care segment
Contract manufacturing undertaken by the Company for other’s soaps
Sourcing from Godrej Industries Limited Implemented an ERP software known as MFG/PRO Integration of manufacturing, financial and
distribution Activities across all locations
Low inventory, improved customer service, online tracking of
Costs Distribution and supply chain consists of 1100
distributors Presence predominantly in India
GCPL today…
Five Indian manufacturing facilities – Malanpur, Guwahati, Baddi, Katha and Sikkim
Strong international manufacturing and marketing presence
Completed highly accretive international acquisitions in the UK and Africa
Keyline Brands – one of UK’s most admired FMCG companies
Owning major brands Rapidol – a leader in the ethnic hair colour segment
in Africa Present across the continent
Partnered with leading global player SCA Hygiene Products to enter nascent but high potential baby, feminine hygiene and adult incontinence business
Second largest toilet soap player in India
7 soap brands – Godrej No. 1, Cinthol, Godrej Fairglow, Evita,
Crowning Glory, Shikakai, Vigil - several new variants Launched
Leader in hair colour category 9 hair colour brands – ColourSoft, Powder Hair Dye,
Godrej Liquid Hair Dye, Godrej Kesh Kala, Fashion hair colour powder, Godrej Nupur Mehendi, Godrej Kali Mehendi, Anoop and Godrej Renew - 25 new variants
Contract manufacturing for others discontinued by the Company on the back of increased demand for own products
Successful implementation of SAP Comprehensive range of software applications New processes and strategies introduced in the
distribution and supply chain which consists of 4,400 stockists
Discontinued sourcing from Godrej Industries Limited
Operations Manufacturing facilities both in India and abroad Malanpur (M.P.) – 45,000 tonnes of soap Guwahati (Assam) – range of hair colorants and
toiletries Baddi (H.P.)– 30,000 tonnes of soap Katha (H.P.)– 45,000 tonnes of soap Sikkim – range of hair colorants and toiletries
UK – range of personal care offerings Rs 110 crore being invested towards capacity
expansions over FY07 and FY08 New Katha plant operational from December 2006 New Sikkim plant operational from March 2007 Capacity expansion of the Malanpur plant under
process
Distribution and Supply
Well established distribution and supply network
Focus on consolidation in bigger townsImproved availability in smaller townsA stockist present in every town4,400 stockistsIncreasing presence in larger number of outletsRegular Company distributor connectivityImproved acceptance for new offerings
GCPL product portfolio
HAIR COLOURANTS TOILETRIES LIQUID DETERGENTS
GCPL Product Portfolio• Soap
o Cintholo evitao Godrej no. 1o fair glow
SOAPSPERSONAL CARE
GODREJ CONSUMER PRODUCT LIMITED (GCPL)
• Toiletries o Cinthol Talco Godrej No. 1 Talc o Fair Glow creamo Godrej shaving cream o Cinthol perfumes
• Hair care
o Godrej hair color dye o Renew woman hair dye o Nupur hair dye o Color soft hair color
• Household care o Godrej Dish wash liquido Godrej Glossy
• Fabric care
o Godrej Ezee
Soaps
All sub categories continue to drive growth
Sales growth at 21% in FY 2006-07 Market share increases to 9.4% in Q4 FY07 from
8.6% in Q4 FY06 GCPL brands grew 20% in value terms during Q4
FY07 High vegetable oil prices result in price increases
Strong and innovative products and efficient operations
Introduced a new variant in Godrej No. 1 - Papaya and Lotus
During April 2007 Expanding modern retail presence, intensifying
brand building Support
Various innovative product schemes introduced Innovation and VFM products continue to drive
growth Capacity expansion in tax free zones
Variety of brands that cater to entire gamut of consumers
Largest selling Grade 1 soap in the country, third
largest brand in toilet soaps. Available in 7 variants. Sales cross Rs 300 crore p.a.
Flagship brand of the Company, continues to receive strong response from consumers , 3 sub brands available
Performance has been stable, attractive pricing offers
Introduced
India’s first and largest selling fairness soap, is a quality Grade 1 product
Introduced during the year, only Grade 1 health soap in
India. Has an advanced Triple Control System formula To remove germs and is faster acting and longer lasting
Godrej No.1 Soap
Godrej No.1 soap was launched in 1922. This 86-year-old brand enjoys a volume market
share of 6 per cent. It is the 5th largest selling soap in the country and
tops in Punjab/Haryana with a 20 per cent market share.
Godrej No. 1 soap relies on below-the-line promotions, and for the past 5 years it has been selling at a 3+1 free offer in the market.
In 86 years, the brand has spent less than what a major soap brand would spend in a month of heavy promotions (Rs 12-13 crore), according to the company.
Godrej Marketing Strategy (Godrej No. 1 Soap)
Godrej introduced Godrej No.1 soap enriched with natural ingredients trusted by millions, the flagship brand of Godrej Consumer Products Ltd, is now the largest selling Grade 1 Soap.
Grade 1 is the highest standard laid down by the Bureau of Indian Standards (BIS). Godrej introduced it in competition with the Santoor, Breeze. Godrej in the initial stage introduced it as a mid segment soap but after sometime it’s price was reduced and targeted to the rural area.
Variation strategy: Godrej introduced many variants to extend the product line of soap. It introduced 6 variants in the soap category. It also introduced different product category like talc, shampoo under the name of Godrej No. 1.
Consumer behavior Of customers
Price conscious people.People looking value for money
product. Indulge in less Pre-purchase analysis.
Value for Money product
Godrej No.1, the flagship brand of Godrej Consumer Products Ltd, is the largest selling Grade 1 soap.
Grade 1 is the highest category laid down by the Bureau of Indian Standards (BIS).
Standard minimum of 76 per cent with the least number of additives, making it a pure soap and a quality product.
They want to create awareness among consumers of the importance of using Grade 1 soap and the benefits attached to it so that people get value for their money.
Godrej No. 1 Soap Godrej No.1 soap is available in the following variants;
Sandal, Jasmine, Natural, Rose, Ayurvedic and Lavender.
Godrej No. 1 Talc
It is available in two variants:
•Jasmine
•Sandal
Godrej No. 1 Shampoo Godrej No.1 presents, for the first time in India, Aloe- Almond combination in a Shampoo.
Pricing Differentiation StrategySoap variety
Price 75 gms
Price 125 gms
sandal 2745
Jasmine27 42
Natural 27 45
rose 27 45
ayurvedic 27 42
lavender 27 42
Papaya lotus 27 45
*Quantity 4 piece (buy one get 1 free offer)
Distribution Strategy Godrej distribution strategy:
Godrej Soaps has set up a committee to improve and leverage distribution in the rural markets of less than 5,000 population strata. The company has put in place three experiments which will enable it to draw up a
plan to tap this relatively new market which holds a high growth potential for the future.
Based on the success of these experiments, they will roll it out within the next 12 months. The company had also carried out certain experiments in the below 10,000 population strata rural markets to leverage distribution.
They are planning to improve their distribution in small towns before they take on the new experiments in the rural market of less than 5,000 populations.
At present, rural sales contribute one-third to the company's sales with the balance coming from the urban market. Godrej Soaps' total income was Rs 787 Crore in the fiscal 1999-2000.
Competitors
There main competitors are Breeze (HLL product), Santoor (Wipro Product). Godrej
differentiated from these on the base of the following factors:
They differentiated themselves on the base of the low price soap but having the good quality. They created the flagship of the no. 1 quality and they are able to succeed in it.
They have a very vast network of distributions in the rural area. So, they are able to reach to the customer in the rural area.
They also have the bond with the rural people as they are producing many agricultural and household products.
Competitive Edge
Quality policy
Value for money product
Distribution network
Brand image
Promotional edge
Innovation strategy
Strong product line
How did they beat the competition?
They introduced many variant under Godrej No. 1 so they are able to catch the mass market keeping in mind the different need of them.
They have the retail network of the Godrej Aadhar which is their retail chain for the rural market. They availed its benefit to the maximum to promote their products.
They rely heavily on the mass advertising and they conducted some special events in which rural people have the interest.
Their pricing was bang on. They priced the shampoo at the minimum price which is 50 Paisa.
Promotional tools used by GCPL
Events.
Advertising.
Billboard
Hoarding
Wall painting
Electronic media.
Print media
Sales promotion.
Promotional Strategy
They relied heavily on the mass advertising like on the TV, radio, and newspaper
They also in the rural areas used the wall painting, hoardings etc.
GODREJ Consumer Products Ltd (GCPL), has roped in Mona Singh of Jassi Jaissi Koi Nahin (a popular serial on the Sony channel) to be the brand ambassador for Godrej No.1 soaps.
The new Godrej No. 1 ad takes a typical situation inside any Indian home. The theme of the campaign revolves around the proverbial statement, \"All that Glitters is not Gold... All soaps are not Grade I quality soaps.\"
The campaign educates people the advantages of using Grade I quality soaps that produce more lather, last longer and thus is a great value-for-money proposition. (75 gm bar of Grade III toilet soap would last for 28 baths compared to Grade I soap which lasts much longer .)
.
Recognitions
Ezee recognized as a Super brand in FY07 Ranked 6th in the ‘Best Employers Study’
conducted by Hewitt Associate along with The Economic Times
Ranked 15th in the Great Places to Work survey conducted by Grow Talent in partnership with Great Places to Work Inc., USA along with Business World
Received a commendation certificate for Strong Commitment to Excel in the CII-EXIM Bank Award for Business Excellence
Malanpur factory won the Platinum Award in the India
Manufacturing Excellence Awards (IMEA)
Malanpur factory presented by JIPM - Solutions, Japan with Award for TPM Excellence, 1st Category for improvement in operational efficiencies with TPM initiatives
GCPL’s sales mix
Turnover (Rs. crore)
GTurnover
FYFY 2007-08 FY 2006-07 Growth(%)
Toilet soaps 566.6 475.1 19.3 %
Hair Colour 204.7 181.9 12.5 %Liquid detergents
38.5 38.8 (0.8) %
Toiletries 57.5 47.4 21.3 %
By products 20.3 15.3 32.7 %Total 887.6 758.5 17.0%