+ All Categories
Home > Documents > Godrej Consumer products

Godrej Consumer products

Date post: 24-Nov-2014
Category:
Upload: vikram-khodke
View: 215 times
Download: 3 times
Share this document with a friend
Popular Tags:
45
Assignment on Corporate Evaluation & Strategic Management Submitted to Prof. Ninad Dhawle Submitted by Miss. Shital P. Yelne MBA IV Sem.
Transcript
Page 1: Godrej Consumer products

Assignment

on

Corporate Evaluation & Strategic Management

Submitted to

Prof. Ninad Dhawle

Submitted by

Miss. Shital P. Yelne

MBA IV Sem.

Sec. C

Date:- 7 Feb. 2011

Page 2: Godrej Consumer products

GODREJ CONSUMER PRODUCTS

Godrej consumer products is a leading FMCG company based in India which

manufactures soaps, personal and hair care items, and other home care products like

insecticide, hand sanitizers, etc. Some of the popular brands of Godrej include Cinthol

(soap), Renew (Hair Color), Colour Soft (Hair Color), Hit (insecticide), Goodknight

(mosquito repellent - insecticide), Brylcream (hair styling gel), etc.

GCPL plans to expand its international market presence through this strategic move,

with a focus on Asia, Africa and South America

Godrej Consumer Products Ltd (GCPL) has chalked out a new plan for focusing on the international

market. It is concentrating on a ‘3x3 strategy’ to penetrate deeper into Asia, Africa and South

America, with three product segments—personal wash, hair care and insecticides. 

“It (the 3x3 strategy) is part of our globalisation strategy where we are concentrating

on three categories and three continents. We are focussing on these continents to understand

the market better. Our strategy always has been to focus on developing countries, because

they have high populations. Even consumption of our products is high in these places,” said

Hoshedar K Press, vice chairman, GCPL.

  The company spent Rs100 crore-Rs125 crore to acquire Tura, a Nigerian beauty

products company. This is the company’s third acquisition in Africa. In April 2010, GCPL

acquired Megasari—a leading consumer products company in Indonesia, which has notched

up revenues of $120 million in the past fiscal with estimated profit-after-tax margins of 11%-

12%. 

It is also the second-largest player in the insecticides market, enjoying 35% market share of

Indonesia’s household insecticides market (with a total size of $150 million, growing at

20%). It also has 45% market share (of a total $68 million market, growing at 45%) in the

air-care segment and 80% market share of the $21-million wipes market (growing at 45%).

Megasari has 15% share of the breakfast cereals market.

 Earlier in October 2005, GCPL had acquired UK-based Keyline for approximately £13

million. During the same year in September, it acquired the South African business of British

Page 3: Godrej Consumer products

company Rapidol for Rs50 crore. South Africa-based Kinky Group was bought out for

around $34 million in April 2008.

Last year, GCPL acquired a 49% stake in Godrej Sara Lee and is looking to buy out the

remaining stake. It has passed an enabling resolution to raise Rs30 billion in order to fund

inorganic growth (India and other emerging markets would be key focus areas).

All the big players in the FMCG market are now eyeing Africa. Marico Ltd acquired the

‘Fiancee’ hair care brand owned by Egypt-based Ready Group; Emami is looking at buying

an FMCG firm in Egypt. Emami is also looking at buying several other personal care firms in

the region and the company is almost certain of having its first manufacturing facility up and

running in Africa this year. Emami also has plans to set up three more manufacturing bases

in Africa over the next two-three years. 

 

Godrej 3x3 strategy and recent acquisitions

Godrej Consumer products has been talking about its 3 x 3 strategy - a strategy to spread to 3

continents (Asia, Africa, South America) in 3 areas of Home Care, Personal Care and Hair

care. Godrej has been aggressive in its expansion plans to the above mentioned continents

(frequently referred to as the emerging markets) and its recent five acquisitions include

Acquisition of the Issue group (hair color) in Latin America.

Acquisition of Tura Brand in Nigeria.

Acquisition of Megasari group in Indonesia.

Acquisition of the remaining 51% stake in Godrej Sara Lee (a joint venture)

Acquisition of Argencos (hair styling cream) in Latin America.

Page 4: Godrej Consumer products

INFOSYS

Vision

“To be a globally respected corporation that provides best-of-breed business solutions,

leveraging technology, delivered by best-in-class people."

Mission

"To achieve our objectives in an environment of fairness, honesty, and courtesy towards our

clients, employees, vendors and society at large

INTRODUCTION TO INFOSYS

Infosys Technologies Ltd. was started in 1981.

Today, it is a global leader in the "next generation" of IT and consulting.

Infosys defines, designs and delivers technology-enabled business solutions

that help Global 2000 companies win in a Flat World.

Infosys serves the client globally and is one of the pioneers in strategic

offshore outsourcing of software services

Infosys pioneered Global Delivery Model (GDM)

Strengths:-

Cost advantage – Presence of Infosys in India is key to its success

Breadth of service offering – end to end solutions including high end services like IT

consultancy and KPO

Quality and maturity of process – Infosys has quality standards such as CMM Level 5i

to differentiate from other competitors

Page 5: Godrej Consumer products

Global and 24/7 delivery capability – excellent internet backbone and

telecommunications facilities enabling companies to develop 24/7 delivery

capabilities from India itself

Weaknesss:-

Excessive dependence on USA for revenues – US Companies are cutting down IT

budget hence revenues to be hit hard for Infosys

Excessive dependence on BFSI sector for revenues

Banking sector is facing a crisis globally and is going to spend less on IT

High rates of attrition – Although slowdown in global economy has lowered attrition

rate but the industry still faces high attrition rates as compared to other sectors

Decreasing competitive advantage – rising salary expenses is taking away the cost

advantage

enjoyed by Indian companies (including Infosys)

Opportunities:-

Greater scope for product innovation

Increased focus on high end work like consulting and KPO

Domestic demand for IT services is to grow at 20 %

Greater scope to service domains other than BFSI such as Transportation, Infrastructure,

etc.

Satyam fiasco – Likely to have positive impact on business considering corporate

governance, possibility of shifting of business, getting higher incremental business from

overlapped clients, and winning new business from new clients

Threats :-

Page 6: Godrej Consumer products

Global economic slowdown may continue for several years – hence low IT spending

globally US Govt. against outsourcing

Shrinking margins due to rising wage inflation

Rupee-dollar movement affects revenue and hence margins

Increased competition from foreign firms like Accenture, IBM etc.

Increased competition from low-wage countries like China, Indonesia etc.

McKinsey’s 7 S Model

Style - LEADERSHIP

“Infosys Leadership Institute”

open door policy,

continuous sharing of information,

takes inputs from employees in decision making,

builds personal rapport with employees

Staff – HUMAN RESOURCES

“Knowledge Based Industry” (90% are

engineers)

Emphasis on academic records

Technical skills

Ability to learn

2.65 per cent of its revenues on up gradation of

employees skills

Strategy

Page 7: Godrej Consumer products

Client focused strategy (custom built soft wares)

Quality driven model

Strong Engagements with existing clients

Value added services to new clients

Geographical Expansion

Enhanced Solution Set

Consulting

Business Process Management

Systems Integration

Infrastructure Management

Deep Industry Knowledge

Brand Visibility

Pursue alliances and strategic acquisitions

Shared Values

Customer Delight

Leadership by Example

Integrity and Transparency

Fairness

Pursuit of Excellence

Organizational Structure

Free Form

Flexible Team Structure

E.g. A member, who might have been team leader in one project, may be

replaced by another member of the same team for another project.

Equality among employees

Skills

Domain specific Certifications

Page 8: Godrej Consumer products

Competency Building

Infosys has been CMM-Level 5 certified for its process capabilities.

It has entered the Balanced Scorecard Hall of Fame for Executing

Strategy for achieving breakthrough performance results using the

Balanced Scorecard (BSC)

Key Success Factors

Sound Management Skills

Nurturing Working Atmosphere

Commitment To Values, Speed ,Imagination and

Excellence

Personnel Management

Infrastructure

Infosys- Corporate Level Strategy

Global Delivery Model: Producing where it is most cost effective and selling

where it is most profitable.

Moving UP the value chain: Getting involved in a software development project at

the earliest stage of the life cycle.

PSPD Model: “Predictability of Revenues, sustainability of revenues, Profitability,

De-Risking” for Risk Management

Infosys – Corporate Level Strategy

Actions Taken

Expansion into low cost countries like Mauritius, Philippines, Thailand, Mexico

etc.

Improved Quality capabilities -> CMM Level 5i

Emphasis on delivering high value services

Currency hedging for predictability of revenues.

Investing heavily in training centers.

Page 9: Godrej Consumer products

Infosys – Generic Strategy

Low cost Global delivery 24/7 Model

Little different iat ion in low-end services of value chain; high differentiation in

high end services in value chain like software products and package solutions.

Focus on Quality, Customer relationship management, timely delivery

Market Development Strategy

New Market: India, Middle-east and Australia

Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing

and retail) and software products (financial products).

Recommendation: Since these are fast developing IT market, Infosys needs a

paradigm shift in focus from US and EU markets to these markets.

Result of strategy: Likely to yield good result.

Product Development Strategy

Current Market: USA and Europe

New Product: Consultancy and package implementation

services in relatively growing sectors esp. healthcare, life

sciences and aviation sector, and KPO services.

Recommendation: Concentrate on building expertise in these domains by strategic

acquisitions.

Result of Strategy: Likely to have good result. (better the company acquired, the

better the result)

Diversification Strategy

Page 10: Godrej Consumer products

New Market: India, Middle-east and Australia

New product: Consultancy and package implementation services in relatively

growing sectors esp. healthcare, life sciences and aviation sector, and KPO

services.

Recommendation: Changing Brand image from low value service provider to high

value service provider.

Result of Strategy: Difficult to achieve overnight (possible in long term)

Future Strategies

Global sourcing strategy is aligned with business strategy

Enhancing operational efficiency and delivering value added services

Structuring processes and services into modules thus leading to enhanced flexibility and

productivity

Aggressive focus on ERP solutions like Oracle and SAP

»Expand into high end consulting

Page 11: Godrej Consumer products

Marketing strategies of TATA motors is one of the most successful marketing

strategies in automobile industry. By looking at the SWOT analysis of Tata Motors,

you will know why Tata Motors Company is able to produce more than 4 million

different types of vehicles such as cars, trucks, commercial vehicles, 4×4…etc since

the company began in 1945. Meanwhile, Tata Motors Limited has also become the

largest automobile producer in India market.

Marketing strategies of Tata motors

What makes the marketing strategy so successful?

1. Product, Branding, and Advertising

Every business started from 0, from no one knows it until everyone know it.

Advertising is one of the most common ways to make car buyer or car enthusiast aware of

the new car with special promotion price. Another more important way of advertising is to

create an image or brand image. Take BMW Z3 for example, it was introduced in 1996 and

shortly the car has been used in the famous James Bond movie. This is similar to Nissan 350

Page 12: Godrej Consumer products

Fairlady Z in the recent 2007 Fast and the Furious 3 – Tokyo Drift. Over the years Tata

Motors have been successful in creating their brand image especially they use some famous

stars as their spokesman.

Other important marketing strategies are such as the packaging, innovations, and quality

control. Tata Motors provide many innovative features to attract car lover. One of these

innovations is the Tata Safari 4X4Dicor that has “Reverse Guide System”. A weather-proof

camera is fixed to the rear car to help the driver while reversing the car.

2. Pricing Strategy

There are various factors to determine a price of a car. These factors are such as market

condition (it can’t be too low or too high with the prices of same vehicle from competitors, it

has to be at par), cost incurred to build a car, profit by company, dealer profit.

Giving discount every month and special promotion for certain type of vehicle also one of

the strong strategy use by Tata Motors. Discount can be made from Company’s profit or

from dealer’s profit at certain range.

3. Place

Place of dealership does play an important role. The channel of distribution, physical

location, and dealership method of distribution and sales is generally adopted. The

distribution of vehicle must be in a very systematic way, from the plant to dealership and to

end user. This is not only in India itself but also to the world-wide dealership. (See also Ford

Motor Company SWOT analysis)

4. Maintenance and Support

After sales service is also another important marketing strategy for most of the car buyer to

choose for the right car. End user will not want to spend a lot of time to travel to a far place

just to service the car such as change engine oil, oil filter and some simple checking. Parts

and accessories must also easy to access when it is needed to keep the customer satisfy from

buying Tata cars until maintaining the car or even until they sell the car and change to a

newer Tata model.

Page 13: Godrej Consumer products

MARKETING STRATEGIES OF TATA MOTORS

By looking at the Marketing strategies of TATA motors, the SWOT analysis (the

Strengths, Weakness, Opportunities, Threats) can clearly tells why Tata Motors marketing

strategies is one of the successful stories in automobile industry nowadays.

TATA motors is the market leader in Indian Industry with high market share. TATA

motors began in 1945 since then it produced more than 3 million vehicles. TATA motors

employed around 23000 employees and it is expanding with pace.

Strengths

TATA motors is market leader in Automobile Industry with high market share.

TATA Motors Company have huge employee base.

TATA motors employee productivity percentage is higher.

TATA motors produce low price car with low fuel consumption.

TATA motors is the reputable brand in Indian Industry.

Tata Motors Limited is India’s largest automobile company, with revenues of Rs.

35651.48 crores (USD 8.8 billion) in 2007-08.

The company’s dealership, sales, services and spare parts network comprises over

3500 touch points.

Tata Motors has been aggressively acquiring foreign brands to increase its global

presence.

The research and development department of TATA motors is very strong.

TATA motors also play active role in corporate and social responsibility.

Weaknesses

Return on Investment on TATA motors shares in low.

TATA motors is not able to meet safety standards in their vehicles.

The domestic sales of the company are not up to the mark.

Page 14: Godrej Consumer products

TATA always followed the low cost advantage strategy although the other segment

such as luxury car are still untapped.

Opportunities

TATA motors can take the advantage of their low cost car by entering into third world

countries where people have low purchasing power.

TATA motors should focus in developing luxury cards.

TATA motors can introduce more safety features in vehicles to gain more customer

satisfaction.

Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats

The major challenge for TATA motors is the rising prices of steel, Aluminum and

plastic which is heavily used in vehicle manufacturing.

The low safety standards can impact the sales.

TATA motors has cost advantage over its competitors.If the competitors will follow

the same strategy then it may reduce the sales of TATA motors.

Low safety standards

Fluctuation in the economic condition

Rising prices of petrol, diesel and CNG

Page 15: Godrej Consumer products

MARUTI UDYOG LTD

GROUP MEMBERS

o Himanshu Ahuja

o Madhav Gulati

o V.Karthik

o Jagpreet Singh

o Kshitij Khanna

o Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of

Parliament, to meet the growing demand of a personal mode of transport caused by the

lack of an efficient public transport system.

o Today, it is the largest automobile company in India

INTRODUCTION

Market leader in the car segment, both in terms of volume of vehicles sold and revenue

earned . 18.28% of the company is owned by the Indian government, and 54.2% by Suzuki of

Japan.

Targeting

o Maruti was introduced targeting the middle class

o Its target segments are well depicted in its Product Pyramid profit model

o Targeting was based on a variety of factors such as style, color, price preference,

features etc

3 – 5 lakhs 5 – 10 lakhs 15 – 30 lakhs < 3 lakhs Maruti 800, Alto, Omni Maruti Zen, Wagon

R, Versa, Esteem, Swift Maruti Baleno, SX4 Maruti Suzuki Grand Vitara,

Page 16: Godrej Consumer products

STRATEGIES:

1) PRICING STRATEGY

caters to all segment and has a product offering at all price points

Their pricing strategy is to provide an option to every customer

looking for up gradation in his car

2) CREATING DIFFERENT REVENUE STREAMS

o Maruti Finance

o Maruti Insurance

o Maruti Driving School (MDS)

3) CORPORATE STRATEGIES: STABILITY

o Maintaining status quo due to limited environmental opportunities for gaining

competitive advantagG

o Few employees will have opportunities for advancement

o Critical that management identify key employees and develop specific HR

retention strategies to keep them

4) REPOSITIONING OF MARUTI PRODUCTS

Whenever Maruti’s brand grew old or its sales started dipping ,it

made the following efforts in the same field:

o Omni – interiors & exteriors, Omni cargo,& CNG Omni

Page 17: Godrej Consumer products

o Versa – slashed prices by decreasing engine power

o Esteem – new look to boost sales

o Baleno – price slash from 1999 (7.2lacs) to 2003 (5.46)

o WagonR – modifications in engine and sporty look

o Zen- Modified 4 times and special editions

o Maruti 800- Introduced modified accessories .

5) DIFFERENCIATION

o In order to demand a premium price from consumers

o –  By attempting to distinguish organizational products or services from other

competitors

o Organization offers employees incentives and compensation for creativity

o HR strategy focuses on external hiring of unique individuals, and on retaining

creative employees

Page 18: Godrej Consumer products

SWOT ANALYSIS OF MARUTI UDYOG

Threats

o Competition from second hand cars & TATA Nano

o Threats from Chinese manufactures

Opportunities

o Increased purchasing power of Indian middle class category

o Government subsidies

o Tax benefits.

o Prospective buyers from the two-wheeler segment.

Weaknesses

o Lack of experience with foreign market

o Comparatively new to diesel cars.

o People resistant to upper segment models.

o Heavy import tariffs on fully built imported models.

Strengths

o Established distribution & after sales network

o Understanding of the Indian market

o Ability to design products with differentiating features

o Brand image

o Experience & know how in technology

Page 19: Godrej Consumer products

McKINSEY 7s FRAMEWORK

McKINSEY 7’s

o Strategy : the plan devised to maintain and build competitive advantage over

the competition.

o Structure : the way the organization is structured and who reports to whom.

o Systems : the daily activities and procedures that staff members engage in to

get the job done.

o Shared Values : called &quot;superordinate goals&quot; when the model was

first developed, these are the core values of the company that are evidenced in the

corporate culture and the general work ethic.

o Style : the style of leadership adopted.

o Staff : the employees & their general capabilities

o Skills : the actual skills and competencies of the employees working for the

company.

Page 20: Godrej Consumer products

SWOT Analysis ITC

ITC is one of India's biggest and best-known private sector companies. In fact it is one of the

World's most high profile consumer operations. This SWOT analysis is about ITC. Its

businesses and brands are focused almost entirely on the Indian markets, and despite being

most well-known for its tobacco brands such as Gold Flake, the business is now diversifying

into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors -

including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded

apparel, personal care, greetings cards, Information Technology, safety matches, incense

sticks and stationery. Examples of its successful new FMCG products include:

Aashirvaad - India's most popular atta brand with over 50% market share. It is also

present in spices and instant mixes.

Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

Bingo! - a new introduction of finger snacks.

Kitchens of India - pre-prepared foods designed by ITC's master chefs.

Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta

products).

Strengths

ITC leveraged it traditional businesses to develop new brands for new segments. For

example, ITC used its experience of transporting and distributing tobacco products to remote

and distant parts of India to the advantage of its FMCG products. ITC master chefs from its

hotel chain are often asked to develop new food concepts for its FMCG business.

ITC is a diversified company trading in a number of business sectors including cigarettes,

hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care,

greetings cards, Information Technology, safety matches, incense sticks and stationery.

Page 21: Godrej Consumer products

Weaknesses

The company's original business was traded in tobacco. ITC stands for Imperial

Tobacco Company of India Limited. It is interesting that a business that is now so involved

in branding continues to use its original name, despite the negative connection of tobacco

with poor health and premature death.

To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco

revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is

responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast

Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake

tobacco brand is the largest FMCG brand in India - and this single brand alone hold 70% of

the tobacco market.

Opportunities

Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be

developed using strategies of market development, product development and marketing

penetration.

ITC is moving into new and emerging sectors including Information Technology, supporting

business solutions.

e-Choupal is a community of practice that links rural Indian farmers using the Internet. This

is an original and well thought of initiative that could be used in other sectors in many other

parts of the world. It is also an ambitious project that has a goal of reaching 10 million

farmers in 100,000 villages. Take a look at eChoupal here

http://www.itcportal.com/agri_exports/e-choupal_new.htm

ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in

the North, West and East of India of atta (a popular type of wheat flour), then used the

network to source and create the raw materials from farmers and then blend them for

consumers under purposeful brand names such as Aashirvaad Select in the Northern market,

Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This

concept is tremendously difficult for competitors to emulate.

Page 22: Godrej Consumer products

Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the

country's premier FMCG business.

Per capita consumption of personal care products in India is the lowest in the world offering

an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats

The obvious threat is from competition, both domestic and international. The laws of

economics dictate that if competitors see that there is a solid profit to be made in an emerging

consumer society that ultimately new products and services will be made available. Western

companies will see India as an exciting opportunity for themselves to find new market

segments for their own offerings.

ITC's opportunities are likely to be opportunities for other companies as well. Therefore the

dynamic of competition will alter in the medium-term. Then ITC will need to decide whether

being a diversified conglomerate is the most competitive strategic formation for a secure

future.

TC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of

India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata,

was the centre of the Company's existence. The Company celebrated its 16th birthday on

August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed

J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.

Page 23: Godrej Consumer products

Mission

Mission statement is to maximize shareowner value over time

PRODUCTS:

There are different brands of the Coca Cola Company, which are currently in use throughout

the world. This company not only deals in the carbonated drinks but also other drinks.While

launching its product, the marketing team considers the culture of the country.

Major brands of coca cola

• Coke

• Sprite

• Fanta

• Diet coke

• Coke classic

STRATEGIES OF QUALITY

After Micro and macro analysis Brand “coke” is primarily role

1.Enhance competition moments

2.When people watch cricket

3. Through commercialization

4. Fun time

Though these strategies there could be better understanding and better connection with the

public. These are the “key consumption”.

Page 24: Godrej Consumer products

THREATS FROM COMPETITORS

Threats are well planned. Price is the major threat. When price goes certain beyond the

exact price whether come down or go higher its effects the consumption of soft drink.

Because when the price go higher people go for the substitute of “coke” i.e. Pepsi.

And when price goes down they think that there is must be some thing wrong in it.

In short it all depends on customer’s perception.

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Coke is also looking for a

high profit margin.

There are three major ways of making money

• Over night profit

• Windfall profit

• Ethical and un-ethical ways

OPPORTUNITIES

If Coke is considered a luxury product. Then there is the tax rate system

15% - sales tax

20% - excise duty

27% - goes to government

03% - In making Budget

After paying all these taxes coke has to pay electricity charges. We have to spend

ondistributions. After paying all these expenses Coke’s margin squeezed and consumershave

to pay for increasing tariffs.

These are the opportunities through which we can increase the price and can get profits.

Threats

There are much more threats in increasing prices. Because same problem of substitute.

IfCoke increase the price lets say 1 rupee. Then people definitely won’t go for coke.

Page 25: Godrej Consumer products

Theyhave the best substitute of Coke that is Pepsi. So these are the threats in increasing

prices.Coke will lose the margin of its profit and can face loss.

MARKETING STRATEGY

local marketing strategy enables Coke to listen to all the voices around the

worldasking for beverages that span the entire spectrum of tastes and occasions. What

peoplewant in a beverage is a reflection of who they are, where they live, how they work and

play,and how they relax and recharge. Whether you're a student in the United States enjoying

arefreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a

juicedrink, or a couple in Korea buying bottled water after a run together, we're there for

you.We are determined not only to make great drinks, but also to contribute to

communitiesaround the world through our commitments to education, health, wellness, and

diversity.

Coke strives to be a good neighbor, consistently shaping our business decisions to

improvethe quality of life in the communities in which we do business. It's a special thing to

havebillions of friends around the world, and we never forget it.

PRICE STRATEGY

Trade Promotion

Coca cola company gives incentives to middle men or retailers in way a that they offerthem

free samples and free empty bottles, by this these retailers and middle man push theirproduct

in the market. And that’s why coca cola seen more in the market. And they have agood sale

in the market because according to the expert which product seen more in themarket that

sells more.

“Seen as sold”

They do agreements with a shop keepers and stores to exclusive sale in that stores. These

stores are called as KEY accounts in their local language.

Page 26: Godrej Consumer products

And coke also invest heavy budget on these stores and offers them free samples and free

bottles and some time cash incentives.

Different Price In Different Seasons

Some times Coca Cola Company change their product prices according to the season.

Summer is supposed to be a good season for beverage industry in Pakistan.

So in winter they reduce their prices to maintain their sales and profit. But normally they

reduce the prices of their pet bottles or 1 litter glass bottle

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that

shelves in that style which show their product more clear and more attractive for the

consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-

catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion

Company also do sponsorships with different college and school’s cafes and sponsors their

sports events and other extra curriculum activities for getting market share.

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and they off

every handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This

scheme is very much popular among children.

Page 27: Godrej Consumer products

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. Theyhave

almost 450 vehicles to supply their bottles. In this type of selling company have moreprofit

margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very difficult for

them to cover all area of Pakistan by their own so they have so many whole sellers and

agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these

includes:

• Vizi cooler

• Freezers

• Display racks

• Free empty bottles and shells for bottles

ADVERTISEMENT

Coca cola company use different mediums

• Print media

• Pos material

• Tv commercial

• Billboards and holdings

“ Jo chaho ho jaye coca- cola enjoy”

Page 28: Godrej Consumer products

BHARTI AIRTEL

SWOT Analysis

Strengths

Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular

provider in India, and also supplies broadband and telephone services - as well as many other

telecommunications services to both domestic and corporate customers.

Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with

whom they hold a strategic alliance. This means that the business has access to knowledge

and technology from other parts of the telecommunications world.

The company has covered the entire Indian nation with its network. This has

underpinned its large and rising customer base.

Weaknesses

An often cited original weakness is that when the business was started by Sunil Bharti

Mittal over 15 years ago, the business has little knowledge and experience of how a cellular

telephone system actually worked. So the start-up business had to outsource to industry

experts in the field.

Until recently Airtel did not own its own towers, which was a particular strength of

some of its competitors such as Hutchison Essar. Towers are important if your company

wishes to provide wide coverage nationally.

The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal

the lack of any real emerging market investment opportunity for the business once the Indian

market has become mature.

Page 29: Godrej Consumer products

Opportunities

The company possesses a customized version of the Google search engine which will

enhance broadband services to customers. The tie-up with Google can only enhance the

Airtel brand, and also provides advertising opportunities in Indian for Google.

Global telecommunications and new technology brands see Airtel as a key strategic

player in the Indian market. The new iPhone will be launched in India via an Airtel

distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

Despite being forced to outsource much of its technical operations in the early days,

this allowed Airtel to work from its own blank sheet of paper, and to question industry

approaches and practices - for example replacing the Revenue-Per-Customer model with a

Revenue-Per-Minute model which is better suited to India, as the company moved into small

and remote villages and towns.

The company is investing in its operation in 120,000 to 160,000 small villages every

year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per

call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea

Cellular to create a new independent tower company called Indus Towers. This new business

will control more than 60% of India's network towers. IPTV is another potential new service

that could underpin the company's long-term strategy.

Threats

Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned

a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival

Hutchison Essar. Knowledge and technology previously available to Airtel now moves into

the hands of one of its competitors.

The quickly changing pace of the global telecommunications industry could tempt

Airtel to go along the acquisition trail which may make it vulnerable if the world goes into

recession. Perhaps this was an impact upon the decision not to proceed with talks about the

potential purchase of South Africa's MTN in May 2008. This opened the door for talks

Page 30: Godrej Consumer products

between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan

industrialist to invest in the new emerging African telecommunications market.

Bharti Airtel could also be the target for the takeover vision of other global

telecommunications players that wish to move into the Indian market.

Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private

telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its

inception has been at the forefront of technology and has steered the course of the telecom

sector in the country with its world class products and services. The businesses at Bharti

Airtel have been structured into three individual strategic business units (SBU's) - Mobile

Services, Airtel Telemedia Services & Enterprise Services.

Page 31: Godrej Consumer products

Assignment

on

Corporate Evaluation & Strategic Management

Submitted to

Prof. Ninad Dhawle

Submitted by

Vikram Khodke

MBA IV Sem.

Sec. C

Date:- 7 Feb. 2011

Page 32: Godrej Consumer products

Recommended