A CASE STUDY: GODREJ

International Marketing
Paridhi Jain
JSLH
20165066
The Godrej Group:

‘Vision for 2020 : To be 10 times the size they were in 2010’

The Godrej Group was established in 1897 and it lays its roots in the time of India's

Independence and the Swadeshi movement. Ardeshir Godrej, lawyer-turned-serial

entrepreneur, is the founder of The Godrej Group. Although he faced failure with a few of his

ventures, he struck gold with his business. Their geographical outreach has not only been

limited to across the globe but also beyond it. They now have engines that power a lot of

space missions. Further, they now have a patronage of about 1.1 billion consumers across the

globe for consumer goods, real estate, agriculture, appliances, etc. The Godrej group is

growing rapidly acquiring a revenue of over 4.1 billion dollars. Being financially strong and

innovative are two goals for any company in order to be successful. (Godrejcp.com, n.d.)

The following is the timeline that describes the majority of the businesses that Godrej has

started over the years, ever since its launch in 1987:

1897 – After a few failed attempts, Ardeshir Godrej set up the company that produced locks.

1918 – They launched ‘Chavi’, the first soap in the world to be without animal fat.

1922 – Their Products were endorsed by Annie Besant and Rabindranath Tagore.

1923 – After locks and soaps, they started making furniture (especially steel cupboards).

1943 – The government of Bombay auctioned Vikhroli village to Pirojsha Godrej.

1951 – They made 1.7 million ballot boxes during the time of the first elections in India.

1952 – Cinthol was launched and was the second largest soap player in India.

1958 – They made a strong entry in the world of appliances with their first refrigerator.

1974 – They launched their first hair color product which was a liquid dye.

1990 – They established Godrej Properties.

1991 – They started the Research & Development backed agri-business company.

1994 – They launched products like ‘Good Night’ and ‘Hit’.

2005 – They launched ‘Godrej’s Nature Basket’ and entered the world of gourmet retail.

2008 – They helped in launching the vehicle and lunar orbiter for India’s first unmanned

mission to the moon.

2013 – They launched the ‘Good Night Fast-Card’ to fight against Malaria.

2017 – Godrej Agrovet Limited is listed on the Bombay Stock Exchange and National Stock

Exchange. (Godrej.com, n.d.)

The Godrej Group shadows various companies that are working under it. These include –

Godrej & Boyce, Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej

Agrovet and Godrej Nature’s Basket. Other companies include – Godrej Infotech, Godrej

Consoveyo Logistics Automation Ltd. and Geometric. (Godrej.com, n.d.) This paper will

only focus on one company i.e. Godrej Consumer Products.

GODREJ CONSUMER PRODUCTS

Godrej Consumer Products is one of the leading emerging companies. They are a part of

the over 122-year old – The Godrej Group. They are not growing fast but are also very

fortunate to have a legacy that is purely built on the strong values of trust, integrity and

respect for others. Currently, they proudly hold the patronage of about 1.15 billion consumers

internationally, across various businesses. To be in sync and up to date with their 3 by 3

approach to global expansion at Godrej Consumer Products, they are focusing on expanding

in 3 emerging markets (i.e. Asia, Africa and Latin America) across 3 categories of products

(home care, personal care and hair care). (Godrejcp.com, n.d.)

 They rank among the largest household insecticide and largest company for hair care

products in the emerging markets. For the category of household insecticides, they lead the

charts in both India and Indonesia, expanding their footprint further in Africa. They lead the

charts in serving the hair care needs of women in Africa descent. They are on the number one

position for their hair colour in India and Sub-Saharan Africa. They are among the leading

players in Latin America. Out of all their products, they have the second rank in soaps in

India, second rank in air fresheners in India and Indonesia, and first rank in wet tissues in

Indonesia. They goals and aspirations resemble the ones of The Godrej Group. Similarly, like

The Godrej Group, even they ensure that they foster an inspiring workplace and encourage a

high performance culture. (Godrejcp.com, n.d.)

PURPOSE: Make products that make people feel beautiful and confident. Make things that

make the world healthier. Make products that prevent Malaria. Make their products more

affordable and accessible for millions of consumers every day. Make women more

independent. Make the world greener. Most of all, building a business that puts people and

the planet alongside profit. (Godrejcp.com, n.d.)

VALUES: “Godrej Way” – The foundation on which the legacy of the Godrej Group has

grown and built.

Trust: They hold themselves to the highest standards of personal and business integrity. They

put people and the planet alongside profits.

Be Bold: They have bold ambitions and they set the bar high. They adapt and they

continuously innovate. They outperform expectations and take risks.

Create Delight: They prioritize their consumers and offer amazing quality products at a great

value.

Own it: They take complete accountability with no excuses.

Be Humble: They ask for feedback and improve upon it.

Show Respect: They treat people the way they’d like to be treated. They embrace diversity.

(Godrej Consumer Products Limited, n.d.)

Because of the Godrej Way, Godrej Consumer Products have accomplished a lot and

their growth has been leg by strong financial performance. As of 31 st March’18, the value of

Godrej Consumer Products’ market capitalisation is 74,400 crore rupees. They now have over

12,000 employees. They operate in 15 countries and have a market presence in over 90

countries. They’re located in their 3 priority markets – Asia (India, Indonesia and U.A.E.) ,

Africa (South Africa and Nigeria) and Latin America (Argentina and Chile). Their

headquarters are in India. (Godrej Consumer Products Limited, n.d.)

The Godrej Group has been successfully fulfilling its corporate social responsibility.

However, The Godrej Group, along with these two goals, has always prioritised being a

‘good company’. Roughly 23 per cent of their money is held in trusts that invest in improving

the conditions of the environment, health and education. Further, they have come up with a

strategy of shared value called the “Good and Green Strategy”. They are looking forward to

making India more inclusive and green. More than anything else, The Godrej Group holds

pride in its people. They ensure that they foster an inspiring workplace and encourage a high

performance culture. (Godrejcp.com, n.d.) Moreover, they have trained over 3,00,000 people

enhancing their employability skills. They have reduced energy consumption by 30 per cent
and increase their renewable energy consumption by 25 per cent. (Godrej Consumer Products

Limited, n.d.)

Their stakeholder prioritisation is done in four steps.

1) Collaborate/empower – collaborate with stakeholders to find solutions to issues.

2) Inform/engage – address stakeholders’ concerns through constant communication.
3) Consult/evolve - consult stakeholders about various the policies and practices.
4) Keep informed – regularly keep stakeholders informed.

(Godrej Consumer Products Limited, n.d.)

The pie charts below show the geographic and category distributions of Godrej Consumer

Products Limited.

(Godrej Consumer Products Limited, n.d.)

Godrej Consumer Products have the following product brands under them :

(Godrejcp.com, n.d.)
The following are the countries that a part of Godrej’s marketing strategy. There is a list of all

the products that are offered in those respective countries.

India:

1) Cinthol is one of the best soaps available in the market. It is built on a high-energy

proposition. It is said to inspire people to step out of the staleness and feel fresh.

Cinthol’s premium international fragrances and innovative designs make it one of the

most refreshing soaps available in the market. Cinthol Deostick lasts 3 times longer

than ordinary deodorant sprays. This product is driven through a digital strategy and

an online campaign which is called #TestedForAwesome. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

2) Godrej No. 1 is also one of the leading soap brands. It has very carefully chosen

ingredients to make the skin naturally beautiful. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

3) Godrej Protekt is considered to be under a delightful, differentiated and efficacious

range of skincare products across the ‘health, wellness and personal protection

platform’. The range of the products under this brand comprises of hand sanitiser,

three different types of hand washes and a mosquito repellent spray for personal use.

India’s first foam hand wash and an alcohol-free sanitizer with an eight hours long

germ protection was introduced under this brand. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

4) Godrej Expert is the largest selling hair colour which is used by over 40 million

people. Innovative solutions of this brand include ‘crème hair colour’ in a sachet and

‘powder hair colour’ with a very unique gel technology. These are available at

unbelievably affordable prices. (GODREJ CONSUMER PRODUCTS LIMITED,

n.d.)
 5) B-Blunt (Salons, Products and Expertise) includes a range of shampoos, conditioners,

hair styling and hair colour products for both men and women. (GODREJ

CONSUMER PRODUCTS LIMITED, n.d.)

6) Goodknight is one of the most highly penetrated brand under the category of

household insecticides in India. It has reached over 78 million households. It has

come up with an innovative personal range — fabric roll-on, cool gel and patches.

This brand also launched the ‘Goodknight Power Chip which is said to be ‘a

revolutionary electric solution’ which is a unique gel technology that works as well as

100 coils. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

7) HIT is the leading player amongst the aerosols and is used for killing pests. It is a safe

and easily affordable product to help every household. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

8) Godrej AER offers a range of home, bathroom and car air fresheners. ‘AER pocket’

which is a so called ‘innovative bathroom air freshener’ has a clutter breaking design.

(GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

9) Godrej Ezee offers a range of liquid detergents that are used for a specialised care for

woollens. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

Bangladesh, Sri Lanka and Nepal

1) In Nepal, Goodknight and HIT are leading the markets for household insecticides.

(GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

2) Expert and Abha are the leading players in their respective hair care product segments

in Bangladesh and Sri Lanka. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

3) Brands like AER are popular across the whole of SAARC. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

Indonesia
 1) HIT is the leader among the household insecticides. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

2) Stella is the leader among the air fresheners. (GODREJ CONSUMER PRODUCTS

LIMITED, n.d.)
3) Mitu is a leading brand which has a range of wet wipes and baby toiletries. (GODREJ

CONSUMER PRODUCTS LIMITED, n.d.)

4) NYU lies among the top 3 brands of hair colour. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

Africa

1) Darling is the leader amongst the hair extensions across Sub Saharan Africa.

(GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

2) TCB continues to grow across East Africa. (GODREJ CONSUMER PRODUCTS

LIMITED, n.d.)
3) MegaGrowth is a market leader for relaxers across West Africa. (GODREJ

CONSUMER PRODUCTS LIMITED, n.d.)

4) Renew is a leading player in the market for hair colour products in South Africa.

(GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

5) Inecto is a market leader amongst the ethnic hair care products. (GODREJ

CONSUMER PRODUCTS LIMITED, n.d.)

Argentina

1) Issue is amongst the leading hair colour brands. It offers a stylish range of hair care

treatments. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

2) Roby is a market leader for hair styling products. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

Chile
 1) Ilicit is the leader for hair colour products. (GODREJ CONSUMER PRODUCTS

LIMITED, n.d.)
2) Millefiori is one of the leaders for depilatory products. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

3) Pamela Grant is their range of intense and long-lasting hair colours. (GODREJ

CONSUMER PRODUCTS LIMITED, n.d.)

United States of America

1) The African Pride range of hair products make the hair softer and more beautifully

straight with a radiant shine. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

United Kingdom

1) Pro:Voke Touch of Silver is a unique range of hair care products for platinum, white

and silver hair. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

2) Pro:Voke Liquid Blonde is a unique range of hair care products for warm, caramel

and honey blonde. (GODREJ CONSUMER PRODUCTS LIMITED, n.d.)

3) Cuticura is a leading the market for anti-bacterial products. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

4) Soft & Gentle is an upcoming range for female deodorants. (GODREJ CONSUMER

PRODUCTS LIMITED, n.d.)

To build an efficient and successful sales system for the future, the Godrej Group has

come up with a few strategies. First is “Build a go-to-market”. This was thought of in order

to make the procedure of sales and taxes more smooth. This would also drive availability and

accessibility of their products. Second was to improve their technology in order to build

cutting-edge sale capabilities. Third was to enhance their e-commerce sector in order to

establish and strengthen the availability and accessibility of their products and driving the

growth of their premium brands.

 Godrej Consumer Products Limited has been growing rapidly while maintaining its

leadership across product categories and regions. The graphs below show their economic

performance across various parameters along with their five-year growth trends. (Godrej

Consumer Products Limited, n.d.)

(Godrej Consumer Products Limited, n.d.)

(Godrej Consumer Products Limited, n.d.)

The data below shows the overall international performce of the Godrej Consumer Products

Limited.
 (Godrej Consumer Products Limited, 2019)

ANALYSIS

 SEGMENTATION, TARGETING AND POSITIONING

Godrej Consumer Products Limited has segmented the market on the basis of

demographic (age and social class), psychographic (lifestyle and personality), behavioural

(benefits and occasions) and geographic (region, country, state, etc) factors. There are

segments that include home care products, personal care products and hair care products.

Godrej Consumer Products Limited has targeted a large distribution across India and

globally. The sales are made in both rural and urban areas. They have targeted customers who
are looking for the products that they are selling. Both men and women use their products.

Social status has also been kept in mind as their prices are quite affordable.

Godrej Consumer Products Limited uses a two factor positioning strategy - value-based

and user-benefit-based to emphasise on the intrinsic value of the product and on the

attachment that the consumers have with the products because of their benefits.

 SWOT ANALYSIS

STRENGTHS WEAKNESSES

1) Strong brand image.

2) Popular brand name. 1) Limited overall market share.
3) Sufficient resources. 2) High domestic and international
4) Strong market position.
5) Increasing presence in the global presence.

market.
6) Presence in over 90 countries.
7) Management is strong.
8) Cross-implementation strategies.
9) Variety of products available.

OPPOTUNITIES THREATS

1) Growing competition both domestic

1) Growing personal care and hair care
and international.
trends. 2) The increasing demand for FDI.
2) Growing rural and urban markets.
3) Increasing purchasing power of
buyers.

 PORTER’S FIVE FORCES ANALYSIS

Threat of new entrants

Some factors that may reduce the threat of new entrants for Godrej Consumer Products

Limited are:

1) Entry in the industry for consumer products requires a huge amount of capital and

resources.

2) If the existing regulatory system imposes restrictions on the new firms which are

interested in entering the market. If this happens, new firms will have to fulfil the

regulatory requirements and tackle these restrictions alongside, leading to a slower

growth.

3) New entrants will be discouraged to enter this industry if the access to the distribution

channels is restricted and regulated heavily.

Some factors that may increase the threat of new entrants for Godrej Consumer Products

Limited are:

1) If the existing regulations support the entry of new firms and don’t impose

restrictions.
2) Initial investment for capital and resources is not very high.

Godrej Consumer Products Limited can develop a higher brand loyalty of the consumers by

working on building stronger relations with their consumers. They can do so by encouraging

the purchase of their products by offering timely discounts and providing cards or vouchers to

regular consumers to give further discounts and offers. Godrej Consumer Products Limited

can also make investments in Research & Development and take regular customer feedback

and work upon their weak areas.

Threat of Substitutes

The threat of substitute may increase if:

1) A substitute product/service is available at cheaper prices.

2) A substitute product is available at a superior quality.

The threat of substitute may be low if:

1) The switching cost to use the substitute product is high as that increases the overall

cost of buying the product.

2) Customers cannot derive the same utility as they do from consuming the products of

Godrej Consumer Products Limited.

Godrej Consumer Products Limited can overcome this threat by emphasising and promoting

their products in a way that their products look better and more superior in front of the

substitutes. They should work on improving the quality of their products, maximising value

for money and setting strong differentiation in order to discourage the consumers to buy the

substitute product.

Rivalry among existing firms

The Rivalry among existing firms will be low because:

1) There are a small number of such large firms in the market.

2) The industry for consumer product is growing at a fast pace.

 3) The consumer products are highly differentiated and each firm targets different

segments.

4) The switching costs for consumers are high.

Bargaining power of suppliers

Bargaining power of suppliers may be high if:

1) The concentration of suppliers is higher than that of the buyers.

2) The cost to switch from one supplier to another is high for buyers.

3) The number of suppliers are less and the demand for their products is high.

The bargaining power of suppliers may be low if:

1) Suppliers are not concentrated in an area.

2) Switching costs from one supplier to another are low.

3) Substitute products are available in the market.

Bargaining Power of Buyers

There are some factors that may increase the bargaining power of buyers:

 There is a more concentrated customer base.

  The number of buyers is less and the number of sellers is more.

 Low switching costs to move from one product to another.

 Consumers have a high price sensitivity and high market knowledge.

FURTHER SUGGESTIONS

1. Focus on the 4P’s – Product, Price, Promotion, Packaging.

2. Extend leadership in their core categories and geographies.
3. Increase innovation and encourage renovation.
4. Building a more efficient ready sales system.
5. Improving their sales system.
6. Encouraging a high-performance culture.
7. Prioritise their employees and customers.
8. Build on their marketing strategies and expand their global outreach.
References

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[Accessed 5 May 2019].

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