+ All Categories
Transcript
Page 1: Godrej Branding strategies

Module Name: Brand Design

Module code: BEMM 128

Assignment: Branding Strategies of Godrej

Name of Tutor: Dr Sotiris T Lalaounis

Date of submission: 2nd May’ 2014

Number of words: 2600

Submitted By: Ayush Agrawal

Student Number: 630058475

Candidate Number: 002330

Page 2: Godrej Branding strategies

1

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Table of Contents

1 Introduction ......................................................................................................... 1

2 Brand Audit ......................................................................................................... 1

2.1 Customer Based Brand Equity (CBBE) Model .............................................. 4

Brand Equity Pyramid ......................................................................................... 4

2.1.1 Brand Salience ....................................................................................... 4

2.1.2 Brand Performance & Brand Imagery ..................................................... 4

2.1.3 Judgement and Feeling .......................................................................... 5

2.1.4 Brand Resonance ................................................................................... 5

3 Brand Development & Strategy ........................................................................... 6

3.1 Brand Product Matrix .................................................................................... 6

3.2 Global branding ............................................................................................. 7

4 Bibliography ......................................................................................................... i

5 Annexure 1 ...........................................................................................................ii

Table of Contents Figure I Value pillars of 'Godrej'.................................................................................. 1

Figure II Godrej's current performance outcomes by consumers ............................... 3

Figure III Brand Equity Pyramid ................................................................................. 4

Figure IV Feeling and emotion for Godrej .................................................................. 5

List of Tables Table 1 Brand Product Matrix ..................................................................................... 6

Table 2 Brand relationship factors for Godrej ............................................................. 8

Table 3 Future Market performance for 'Godrej' ......................................................... 9

Page 3: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

1

1 Introduction

Established in 1897, ‘Godrej’ is still young even after 116 years of existence. The brand has come

a long way from manufacturing its first safe in 1902 till creating Gojiyo, a free browser-based 3D

virtual world in 2010.

The brand has 7 major companies with significance in real estate, FMCG (Fast Moving

Consumer Goods), industrial engineering, appliances, furniture, security and agriculture with

turnover crossing 4.1 billion dollars. The brand is present in 60 countries and overall overseas

business is around 26%. (The Godrej Group, 2013)

2 Brand Audit

This helps in measuring the health of the brand and revealing the sources of brand equity.

It is conducted in two parts, first the brand inventory, which is company’s perspective to

understand how their products and services are sold and marketed.

‘Godrej’ rebranded them with the theme called ‘brighter living’ for the strength to dazzle

consumer with their wide range of products and unparalleled services. Through brighter living

the company is targeting to bring their brand to life. In past lustrum ‘Godrej’ focuses on building

value pillars of progression, expression, empathy and experience, which results in creating more

contemporary entity from their perspective. (Issuu, 2014).

Figure I Value pillars of 'Godrej'

By Progression they mean taking steps forward with customers. It means challenging prejudice

and confronting convention. The company projects themselves as constant innovator to race for

the future, with the tagline “tomorrow is ours, own it today”. (Issuu, 2014).

Expression is giving customers the products and services to express themselves. An

initiative called ‘Bedhadak bolo’ was implemented where the thoughts (expressions) from the

customers and the employees from the company are welcomed. This enables internal marketing

by word of mouth which they believe is more reliable than any TV commercial. The company

thinks that in open speaking of the mind lays the power of all transformation. (Issuu, 2014).

Empathy means taking time to connect with their customers and thanking them. The

agenda is to know the customers thought and understanding how their product is part of the

world.

Page 4: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

2

And finally experience denotes looking at the bigger picture by going beyond the basic

needs. ‘Godrej’ tries to deliver excellent products and services that customers can’t forget and

they believe this will make them hunger for more and they will come back. (Issuu, 2014).

The value pillars mentioned above has forged a stronger connect with the 500 million Indians

whose lives are touched by ‘Godrej’ group of companies every day. (Issuu, 2014).

To market the master brand ‘Godrej’ took the initiatives like ‘Khelo Jito Jiyo’- an exclusive TV

game show where contestants comprising 3 family pairs contend to be the one worthy pair who

can win a home and everything in it,;

‘Godrej Power play’- a consumer connect initiative which allows its consumers to

participate in the very reputed cricket league called IPL (Indian premier league) by making their

teams and win prizes while creating a lifestyle of their own using the products in the process.

And finally ‘Gojiyo’- an online 3 dimensional world. (The Economic Times, 2014).

‘Godrej’ is well aware that they have a strong and unique association in consumer’s mind.

People prefer their products because they are convinced of the advantages over other brands.

The PODs is created due to functionality of their products and services which delivers good

performance. Further Brand ‘Godrej’ is difficult to attack; their marketing strategy is defensible

hence competitive POPs are established due to eliminated disadvantages.

Page 5: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

3

The second part is brand exploratory, which is consumer’s perspective to understand their

perceptions and beliefs to discover the true meaning of ‘Godrej’ and its products to them.

The consumers respect the brand ‘Godrej’ and prefer buying its products. In order to understand

the reasoning behind the influence, 20 primary surveys were carried out using certain brand

related questionnaires with diverse respondents. (Ref. Annexure 1). Also to gather more inside

information, 2 interviews were also carried out with existing employees of the company. Data

was analysed by comparing responses in percentage basis.

The outcome of the survey helped in getting a coherent picture of the brand as the collected

information relate very well to the outcomes of brand inventory. Some of the analysed data is

shown below.

Figure II Godrej's current performance outcomes by consumers

Because of the century long history and still on, ‘Godrej’ has strong association with its

consumers. In words of ‘Keller’, “Customer-based brand equity occurs when the consumer has a

high level of awareness and familiarity with the brand and holds strong, favourable, and unique

brand associations in memory.” (Lupisella, April 2014) Hence CBBE is used to further understand

the customer’s actual perspective for the brand ‘Godrej’.

NOTE: Only Indian market is taken into consideration for the survey.

Page 6: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

4

2.1 Customer Based Brand Equity (CBBE) Model

The pyramid (shown in Fig1) is segregated into four levels: Salience, Performance and Imagery,

Judgment and Feeling, and Resonance. It helps in understanding how the foundation involves

achieving brand salience with the ultimate goal to reach at the summit of accomplishing brand

resonance.

Brand Equity Pyramid

Figure III Brand Equity Pyramid

2.1.1 Brand Salience

People are well aware and relate sincerely with the brand ‘Godrej’ as its products are considered to be iconic. Their products are the first that comes to the consumers mind when considering a commodity in that category. E.g. ‘Godrej’ locks and safes are considered as first option. (Insights Godrej, 2014)(Survey data- Fig II,)

2.1.2 Brand Performance & Brand Imagery

The company is in operation since past a century certainly because it is performing and satisfying

customer needs through the products offered. Their products are Reliable due to the consistency

maintained till date; and durable which was proved when only ‘Godrej’ safes survived the

devastating blast at SS Fort Stikine in 1944. (The Godrej Group, 2013), but the shortcomings lies

with effectiveness of the serviceability as company do not provide delivery and installation

option in all the places. (Insights Godrej, 2014)(Survey data- Fig II)

The consumers have a robust love and passion for the brand ‘Godrej’ due to its quality,

and hence they buy its products despite of knowing the fact that its prices are higher compared

to its competitors. They also have nostalgic attachment with the brand as it its products

generates a symbolic connection with the preceding generations.

Based on the above mentioned facts the consumers have formed positive judgements

and feelings about ‘Godrej’ which is the subsequent level up on the pyramid.

Page 7: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

5

2.1.3 Judgement and Feeling

They consider it to be more superior to its rivals. Brand credibility is extremely high. At present

‘Godrej’ is the market leader in almost all the sectors they operate.

Trustworthiness of the brand is reflected as the company prioritise the old suppliers

more than the new, despite of the fact that they give less business to the company but yet

former were there when company was working on its foundations. (Insights Godrej, 2014)

Finally the likeability is due to the new wash of colours in the iconic logo. The change-

hungry, tech reliant youths are now able to recollect brand easily. (Business line, 2013)

Brand feeling and emotion

From the survey and the interviews conducted (Insights Godrej, 2014), it was concluded that

‘Godrej’ generates a positively outward feeling in the hearts of their consumers. Positive feeling

is due to the sentimental attachment, warm heartedness and love with the brand. This is

because the brand was used by consumer’s parent which makes them nostalgic. This builds the

right emotion. Godrej commodities were used as gifts and was considered as a token of love

Further Outward feeling is due to the excitement generated by the ‘brighter living’ that

has pervaded the brand identity with high energy level.

Figure IV Feeling and emotion for Godrej

2.1.4 Brand Resonance

To an extent ‘Godrej’ have achieved brand nirvana in customers mind. This is because of the

strong relationship that results in loyalty by the users and stronger ability to defy competitive

actions taken by rivals.

‘Godrej’ fulfil almost all the categories for brand resonance. For instance, the behavioural

loyalty is extremely high in FMCG sector. E.g. four of company’s brands (GoodKnight, Cinthol,

Godrej No.1 and Godrej Expert Hair Colour) were ranked among the ‘100 Most Trusted Brands’ in

India. (Times, 2012); the attitudinal attachment is high for Godrej properties; the active

engagement with the Godrej Industries is high because of growing share value which promises

good returns to the investors.

The current position still not makes them complacent as they keep on innovating and upgrading

themselves because constant vigilance is indispensable to sustain the present position in the

minds of the users.

Page 8: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

6

Hence from the CBBE model, it is concluded that ‘Godrej’ has two shortcomings which they need

to tackle through their branding strategy. First is serviceability in brand performance and the

second is creating sense of community through brand resonance. Further the strategy should

also target to cater different market segments and also to explore the possible opportunities

such as penetrating market of different countries. (Survey data)

3 Brand Development & Strategy

Brand development is a determined endeavour entrenched with the combination of strategic

thinking and tangential creativity which drives the business ahead. Out of the seven main

companies of ‘Godrej’ group FMCG sector has most number of brands and maximum potential,

hence for brand development focus is done on this sector only. Also as mentioned above godrej’s

FMCG products were ranked among Top 100 brands of India.

The shortcomings observed from the CBBE model has to be targeted while developing strategy

for the company. Considering FMCG, serviceability doesn’t play any role and not even require for

creating brand community. But do have a immense scope for extension and going global.

3.1 Brand Product Matrix

Table 1 Brand Product Matrix

Page 9: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

7

The branding strategy adopted by the company has both breadth and depth as they have many

brands across different product categories.

‘Godrej’ has a huge brand line and brand mix in various categories. They leveraged on their

existing brand equity by using ‘Brand Extension Strategy’. The company launched brand Cinthol

(Ref Tab 1) through just soaps but then ventured into powder, deo spray, gel etc. The outcomes

were very fruitful and now the company excels in the all the fields they operate. The company

keeps on extending the range of varied products in their list but capping them under the same

brand name.

Further the company extended their product line by launching a sub-brand called Godrej No.1

(Ref Tab 1) in the soap category. The product mix was increased by soaps Jasmine, Lavender,

Lime, aloevera & sandal. This was done to pursue numerous market segments who desired for a

cheaper alternative. (Aperia, Keller, & Georgson, 2012) Similarly in the hair dye category Colour

soft brand was launched in a cheaper segment of Godrej expert. Both of these steps were taken

because the company wants to increase their shelf presence. The retailers can be persuaded

easily to stock and promote the products because of parent brand’s image. The strategy behind

this is that they don’t want consumers to shift to other brands and hence provide variety. This

also helps them in achieving economies of scale in brand development, advertisement,

merchandising and obviously sales.

The company is sagacious about market conditions and there brand extension strategies doesn’t

cannibalises their sales.

Recommendation

Presently the company has adopted the brand extension strategy and is following it safely but

they can also opt for product flanking for certain brands. This may cover many market segments

by offering same product in different size and prices to tap the infinite market opportunities. E.g.

launching Cinthol shower gel or Colour soft hair colour in small sachets. This will make the

product more affordable to lower segment of consumers. Further the regular customer can use

them as a trial or for travel which might build more market in long run.

3.2 Global branding

As mentioned above presently, ‘Godrej’ operates in 60 countries but yet generates only 26% of

the revenue overseas. (The Godrej Group, 2013) The group must try to cater international

opportunities by expanding their global reach.

One of the reasons to go global is the increased competitors in the domestic market. Companies

such as Emami, Marico Ltd, Dabur India ltd, Hindustan Unilever ltd, and ITC ltd. etc have

restricted the market size and hence push to explore new market overseas. Further due to

globalisation MNCs like P&G, Nestle, Colgate Palmolive etc have also ventured in India and are

giving them tough competition. Although ‘Godrej’ is still at No. 4 (Top 10 FMCG Companies in

India 2013, 2014). The company can diversify their risk by targeting the less developed and

developing nations because of their affordable prices compared to their rivals, on which they can

compete.

Page 10: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

8

Another reason for ‘Godrej’ to go global is that their products are advanced, useful, reliable and

most important low priced which is the requirement of the target nations. To venture into such

market, ‘godrej’ needs to adapt the locally followed requirements for optimizing their brand

effectiveness. E.g. Amendments in the packing and names to fit local populace and market

needs. ‘Godrej’ should specifically notice that the product with an Indian name doesn’t imply

some bizarre meaning in the local market of different country.

The company should understand the similarity and differences between Indian and foreign

market. They should retain their thematic consistency but upgrade their presentation for

developing countries and alter them for other less developed countries. To go global, ‘Godrej’

needs to build strong brand equity. It involves a lot of considerations and risks. Customised

marketing campaigns are required to satisfy the local market segment. These marketing

campaigns involve identification of consumer’s behaviour and making corresponding

adjustments to the brand which can be different even in neighbouring countries.

Creating a marketing infrastructure in a new country is time consuming and involves lots of

complications. ‘Godrej’ can do geographic extension as their existing brand is competent for less

developed nations. They can cultivate further brand relationship by creating alliance with

companies in developed nations as their product might require up gradation for these markets.

The company should adapt to capitalise on existing marketing infrastructure which can be done

by joint ventures or acquiring certain stakes in others holdings. In fact the ‘Godrej’ already

approached this global branding but in a developed country by acquiring keyline brands of UK.

(The Godrej Group, 2013). This was a poor decision as huge investment was involved and is not

successful (Insights Godrej, 2014) hence not a recommended option for global branding.

STRATEGY NATION FACTORS Speed Control Investment

Geographic extension Developing Slow High Medium

Brand Acquisition Not recommended

Brand Alliance Developed Moderate Low Low Table 2 Brand relationship factors for Godrej

The above table shows impact of recommended branding strategy for ‘Godrej’ on speed, control

and investment when done in different types of nations.

Page 11: Godrej Branding strategies

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

Efforts by: Ayush Agrawal (Student No. 630058475) (Candidate no. 002330)

9

BRAND PERFORMANCE & METRICS

These brand development strategies are evaluated on the basis of market performance. The

brand value will be created by building profitable sales. To identify the brand’s future

performance through brand flanking and global branding is as under:

OUTCOMES CHARACTERISTICS

Price Premium

It will be more, due to product flanking, people will prefer buying 'Godrej' products even when the prices would be on a higher side

DIR

ECT

REV

EN

UE

STR

EAM

Price Elasticity

It will be more because of competition. Customers might shift to other brand due to price increase but on the contrary sales would be augmented on decreasing price

Market Share It will increase in developing nations due to the geographic extension strategy

Brand Expansion Presently 'Godrej' follows line and Category extension and is very successful. This adds revenue to the company.

Cost Structure Initially this would be high because of advertising. Once 'Godrej' establishes itself in target customers mind, cost can be cut due to economies of scale.

Profitability Initially it will be low but once the brand awareness and its products are established in the target global market, profits would start flowing.

Table 3 Future Market performance for 'Godrej'

CONCLUSION:

‘Godrej’ is currently following brand extension strategy with huge brand line and brand mix in

various categories. They have also increased the product line but for further development they

should opt for product flanking for Indian market by offering their product in small sachets/

packs in order to cater lower segment of consumers.

Another recommended strategy for ‘Godrej’ is to target the opportunities of their

international market using global branding. This is due to the shrinking domestic market because

of competition and competency of their products to compete globally. Building global brand

equity and understanding consumer behaviour is important before venturing into a different

country. The returns from the global branding strategy would be low initially but would be

beneficial for the company in long run.

Page 12: Godrej Branding strategies

i

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

4 Bibliography

Aperia, T., Keller, K. L., & Georgson, M. (2012). Strategic Brand Management- a Europen

Perspective. Edinburgh: Pearson Education.

Business line, T. H. (2013, May 30). Godrej goes for rebranding to connect with youth.

Retrieved from http://www.thehindubusinessline.com/:

http://www.thehindubusinessline.com/companies/godrej-goes-for-rebranding-to-

connect-with-youth/article4766480.ece

(2014, April 20). Insights Godrej. (A. Agrawal, Interviewer)

Issuu, I. (2014, April 18). A short and Splendid guide to a brighter Godrej. Retrieved from

Godrej Brand Book:

http://issuu.com/godrej/docs/godrejbrandbook/2?e=1800038/5294440

Lupisella, J. A. (April 2014). The Branding Pyramid. Glimpse, Vizual. Inc.

The Economic Times. (2014, April 17). Best Indian Brands 2013: Who made it to the list of

top 10. Retrieved from Brand Equity:

http://articles.economictimes.indiatimes.com/2013-07-31/news/40915578_1_tata-

sons-tata-brand-tata-business-excellence/4

The Godrej Group. (2013, March 31). Retrieved from www.godrej.com:

http://www.godrej.com/godrej/godrej/aboutgodrejgroup.aspx?id=1&menuid=1163

Times, E. (2012). Brand Equity.

Top 10 FMCG Companies in India 2013. (2014, April 30). Retrieved from mbaschool.com:

http://www.mbaskool.com/fun-corner/top-brand-lists/7764-top-10-fmcg-

companies-in-india-2013.html?start=9

Page 13: Godrej Branding strategies

ii

BEMM 128 BRAND DESIGN

Branding Strategies of Godrej

5 Annexure 1

CONSUMER SURVEY

QUESTIONARE TO DETERMINE THE BRAND PERFORMANCE

1 Age of the Respondent 10 to 17 18 to 25 26 to 40 40 to 65

2 Please select the brand that you would most likely purchase when considering buying soaps

Cinthol (Godrej)

Santoor Lux Hamam

3 Please select the brand that you would most likely purchase when considering buying locks and safes

Godrej Harrison keylocks (pride)

Locally made

3a For the brand identified in the previous questions, please rank the values of the product that is most important to you?

Safety Price Stylishness Durability

4 Please select the brand that you would most likely purchase when considering buying hair colours?

Godrej Expert

Revlon Garnier Loreal

5 Please select the real estate brand that you would like to invest considering furture returns

Godrej Properties

Unitech group

DLF group Parsvnath developers

limited

6 Who influences the majority of purchasing decisions in your household?

Yourself Your spouse

Parents Joint decision

COMPANY SPECIFIC QUESTIONS

7 How is the after sale services for 'Godrej' Appliances

Outstanding Satisfactory Average Unsatisfactory

8 When you think about 'Godrej', what product category immediately comes to mind

9 What aspects of this brand would you suggest improving in the near future? (i.e. quality, price, location of shops or others)

DATE SIGN


Top Related