Godrej Consumer Products

A Term Paper Presentation

SUBMITTED TO: PROF. BAISAKHI M.M

SUBMITTED BY: ROSH REJENDRAN (1PT12MBA76)

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STUDY OBJECTIVE

To study the marketing strategies of GODREJ INDUSTRIES and how they

implemented it for their Consumer Products.

To know about the different Consumer product varients and to study the

segmentation, targeting and positioning.

To know about the recent trends that Godrej has been using to promote their

Consumer Products in market.

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COMPANY PROFILE

The Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India, managed and largely owned by the Godrej family. It was founded by Ardeshir Godrej and Pirojsha Godrej in 1897, and operates in sectors as diverse as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products.[3] Subsidiaries and affiliated companies include Godrej Industries and its subsidiaries Godrej Consumer Products, Godrej Agrovet, and Godrej Properties, as well as the private holding company Godrej & Boyce.

Established in 1897 : Founders - Ardeshir Godrej, Pirojsha Godrej.

One of India’s most trusted brand, Godrej enjoys the patronage and trust of over

470 million Indians every single day for over 100 years.

7 major companies with interests in real estate, FMCG, industrial engineering,

appliances, furniture, security and agri care .

Turnover crosses 2.6 billion dollars.

Presence in more than 60 countries

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Godrej Group

Type Public

Industry Conglomerate

Founded 1897[1]

Founder(s) Ardeshir Godrej

Pirojsha Godrej

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Adi Godrej (Chairman)

Jamshyd Godrej

Nadir Godrej

Products Real estate, FMCG, industrial

engineering, Appliances,Furniture, Security, Agri care,

and others

Revenue 21600 crore(US$3.3 billion)(2013) [2]

Employees 26,000 (2013)

Subsidiaries GCPL, Godrej Infotech Ltd,Godrej Industries

Ltd, Godrej Properties, Godrej Agrovet

Website www.godrej.com

INTRODUCTION ABOUT GODREJ INDUSTRIES

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The Godrej Group was founded in 1897, and has since evolved into one of the largest and the oldest conglomerates based in Mumbai, India, with a presence in varied industries, including appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, food-processing, security, materials handling and industrial storage solutions, construction and information technology. The Group is headed by Adi Godrej and his brother in law and cousin, Nadir Godrej and Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the group has moved significant production facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres (14 km2) of land on both sides of the Vikhroli section of the LBS marg. That makes the Godrej group the biggest private land owner in Mumbai by far[citation needed]. Such vast land can, in theory, be used to create at least 1,500 acres (6.1 km2) of residential floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion. Thus, the Godrej group is sitting on an invisible cashpile that is an envy of other Indian conglomerates[citation needed].and were the biggest company and we call them go.

Timeline

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1897 - Godrej is established in 1897

1902 - Godrej makes its first Indian Safe

1918 - Godrej Soaps Limited incorporated

1961- Godrej Started Manufacturing Forklift Trucks in India

1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps

1974 - Veg oils division in Wadala, Mumbai acquired

1990 - Godrej Properties Limited, another subsidiary, established

1991 - Foods business started

1994 - Transelektra Domestic Products acquired

1995 - Transelektra forged a strategic alliance with Sara Lee USA

1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej Infotech

Ltd.

2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej

Soaps Limited. Godrej Soaps renamed Godrej Industries Limited

2002 - Godrej Tea Limited set up

2003 - Entered the BPO solutions and services space with Godrej Global Solutions

Limited

2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to

customers by providing professional pest management services

2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej

Beverages & Foods Limited

2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of

North America and the company was renamed Godrej Hershey Foods & Beverages

Limited

2008 - Godrej relaunched itself with new colourful logo and a fresh identity music

2010 - Godrej launched GoJiyo a free, browser based 3D virtual world

2011 - Godrej & Boyce shuts down its typewriter manufacturing plant, the last in the

world.

Godrej Group Products

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GODREJ CONSUMER PRODUCTS LIMITED

Godrej Consumer Products Limited (GCPL) is an Indian consumer

goods company based in Mumbai, India. GCPL’s products include soap, hair colourants,

toiletries and liquid detergents. Its brands include ‘Cinthol’, ‘Godrej Fair Glow’, ‘Godrej

No.1’ and ‘Godrej Shikakai’ in soaps, ‘Godrej Powder Hair Dye’, ‘Renew’, ‘ColourSoft’ in

hair colourants and ‘Ezee’ liquid detergent. GCPL has five manufacturing facilities in India at

Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi-

Katha (Himachal Pradesh) and Sikkim.

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Godrej Consumer Products Limited

Type Public

Traded as NSE: GODREJCP

BSE: 532424

Industry Consumer goods

Founded 2001

Headquarters Mumbai, Maharashtra, India[1]

Area served India

Key people Adi Godrej, Chairman

A Mahendran, Managing Director

Products Toilet soaps, hair colour, household insecticides,

liquiddetergents, toiletries and others

Revenue 3793 crore (US$580 million)(2010-11)[2]

Net income 481 crore (US$74 million)(2010-11)[2]

Employees 1,200 (2012)

Parent Godrej Group

Subsidiaries Essence Consumer Care Products Pvt. Ltd.

Naturesse Consumer Care Products Pvt. Ltd.

Godrej Hygiene Products Ltd.

Godrej Netherlands B.V.

Website godrej.com

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SEGMENTATION, TARGETING & POSITIONING

of Godrej Consumer Products

SEGMENTATION

• GCPL has segmented the market on the basis of the following variables: Demographic (age and social class), Psychographic (lifestyle and personality), Behavioral (benefits and occasions), Geographical (region)

• The first consisted of the home care segment where consumers were buying well established brands such as Good Knight, HIT & JET in basket.

• The next segment consisted of Personal Wash, one of Godrej's oldest business

divisions, consumers who preferred sanity, fairness.

• The third segment consisted of Hair care spread. Here consumers look for hair colour, hair dye, mehendi & hair oil products.

• The next segment consisted of Air care, one of Godrej's latest business divisions, consumers who preferred designer car and home fragrances.

• DEMOGRAPHIC

Age: 6-11, 12-19, 20-34, 35-49, 50-64, 65+

Gender: Male, Female

Occupation: Professionals, Retired, Students, Homemakers, Sportsmen

Social Class: Working Class, Middle Class, Upper Middle Class, Lower Upper, Upper Uppers

• PSYCHOGRAPHIC

Lifestyle: Culture- Oriented, Safety- Oriented, Outdoor- Oriented

Personality: Gregarious, Ambitious

GEOGRAPHIC

Location based : different states, cities.

Region based : Rural, Urban, semi-urban.

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SEGMENTATION

• Home care (Psychographic)

– Good knight (Safety oriented)

– Hit (Safety oriented)

– Jet - Geographic (Andhra Pradesh & Madhya Pradesh)

– Ezee (Lifestyle:culture oriented)

– Genteel (Lifestyle:culture oriented)

– Godrej Dish wash (Safety oriented)

• Personal wash (Psychographic)

– Cinthol (Lifestyle:culture oriented)

– Protekt (Safety oriented)

– Godrej No.1 (Lifestyle culture oriented)

– Fairglow (Lifestyle culture oriented)

– Vigil (Lifestyle culture oriented)

– Crowning Glory (Lifestyle culture oriented)

– Shikhakai (Lifestyle culture oriented)

– Swastik (Lifestyle culture oriented)

– Godrej Shaving Cream (Lifestyle outdoor oriented)

Hair care (Psychographic)

– Godrej Expert (Lifestyle:outdoor oriented)

– Renew (Lifestyle:outdoor oriented)

– Colour soft (Lifestyle:outdoor oriented)

– Nupur (Lifestyle:culture oriented)

– Kesh Kala (Lifestyle:culture oriented)

– Kali Mehandi (Lifestyle:culture oriented)

– Anoop Hair oil (Lifestyle:culture oriented)

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• Air care

– Godrej Aer Twist (Lifestyle:outdoor oriented)

– Godrej Aer Spray (Lifestyle:outdoor oriented)

– Godrej Aer Click (Lifestyle:outdoor oriented)

TARGETING

GCPL has a widespread distribution network across India. It makes sales in both urban and rural markets, enabling it to benefit from the opportunities in both segments. It has a sales team of over 250 staff spread across the country. It has a network of 33 C&F agents. It had 1,273 distributors, 142 super stockists and 3,175 sub stockists to support the sales team in India. Its distributors and sub stockists cover around 650,000 retailers in India. GCPL has linked its major distributors in India through a system called ‘Sampark’, a collaborative planning, forecasting and replenishment system with its ERP system leading to reduced inventory levels.

Present target : e-commerce

‘e-commerce expected to generate sales worth Rs 200 crore in the next two years’.

POSITIONING

ATTRIBUTE POSITIONING ( special cloth wash )

- Godrej Ezee

for special clothes and delicate garments like woolens, silks, baby clothes,

wool blends, premium cottons, lingerie etc

USER POSITIONING ( Godrej aer, designer car fragrances )

- Godrej aer – Twist

for elite cars, flows in smooth sea like breeze and fragrance

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BENEFIT POSITIONING ( Good Knight, mosquito killer )

- Good Knight Advanced

double power “Activ+ System” for Refill, Advanced “Low Smoke” alternative

in coils and a “pleasant experience” aerosol.

- Good Knight Naturals

blend of active and exotic natural ingredients that lends reassurance of safety.

COMPETITOR POSITIONING ( Edge, slimmest collection of watches )

- Cinthol

“Alive is awesome!”, brings in the ultimate freshness, positioned against LUX

and NIRMA.

QUALITY OR PRICE POSITIONING ( Sonata, ‘quality in woolen fabric wash’ )

- Genteel

specialises in woollen fabric care washing.

• Genteel Liquid detergent (mild wash)

• Genteel Washomatic (machine wash)

Competition

• In soaps, LUX & LIFEBUOY - HUL and NIRMA – NIRMA.

• In hair colours, BLACK ROSE, SUPER VASMOL & L’Oreal.

• In shaving creams, GILLETTE, PALMOLIVE & OLD SPICE.

• In talcum powders, PONDS – HUL and DENIM.

• In liquid detergents, Ezee & Genteel of GCPL competes with SAFEWASH – WIPRO

and SURF EXCEL- HUL.

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RECENT TRENDS

• GCPL's 'Research and Product Development' departments focus on developing new

products, standardising new analytical methods and finding cheaper and more

abundant alternatives to key raw materials.

• Through this research and development centre, GCPL continuously interact with

consumers to obtain feedback on its products and information obtained is leveraged to

complement new product development activities.