Name of the faculty member: Dr.

Mohd Farhan
Course Code: MGN 301
Academic Task No: 03
Date of Allotment: 08.11.2021
Student Roll No: RQ1905A12
Term: 05
Max. Marks: 30
Course Title: INTRODUCTION TO INTERNATIONAL
BUSINESS
Student name: Md Ali Khan
Date of Submission: 23.11.2021
Student Reg. No: 11911585
Section: Q1905
Marks. Obtained:

LEARNING OUTCOME:

DECLARATION- I declare that this Assignment is my individual work. I have not copied it
from any other students’ work or from any other source except where due acknowledgement
is made explicitly in the text, nor has any part been written for me by any other person.

STUDENT’S SIGNATURE- MD ALI KHAN

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

GLOBAL STRATEGY
GODREJ HAIR DYES
 Fast-Moving 2017: Market size: $10.0 trillion
Key growth factors :
Consumer 2025: Market size projection: $15.3
Increased online shopping and
improved logistics support in
trillion
Goods(FMCG) small cities and rural areas

INDUSTRY
Major FMCG companies based on Revenue(in
Million USD, 2019)
Product Categories : Product Characteristics:
• Food & Beverages, • Short shelf-life and non-
• Healthcare, durable products
• Household & Personal Care.

Challenges: Key Players:

• P&G
• Similar products – high price • Unilever Group
competition • Coco-Cola company
• Pepsi Co
Source: https://www.statista.com/statistics/260963/leading- • Nestle
fmcg-companies-worldwide-based-on-sales/ • Revlon
• Johnson & Johnson
Company GODREJ HAIR DYES
Selected
 GODREJ CONSUMER PRODUCT LTD

Product
Portfolio:
GODREJ

Sources:
http://avianceunileverb
iz.blogspot.com/p/abou
t-unilever-
malaysia.html
https://www.unilever.c
om/Images/annual-
report-and-accounts-
2020_tcm244-
559824_en.pdf
https://godrejcp.com/p
ublic/uploads/reports/2
018-
19/10_Our_Strategic_P
illars_201819.pdf
 • Adopt inorganic route for growth in Go-to Market Strategy:
international markets.
• Focus on expansion through acquisitions or • Sub-distributor, wholesale-assist, and van
partnerships with subsidiaries. sales models distribution expansion in
Kenya.
• At present Follows 3X3 strategy:
• grow mostly in emerging markets • Focus shift from primary to secondary
regions: Asia, Africa, and Latin America sales, increase in distributor partnership,
GLOBAL • Focus on 3 sectors : Home care, Personal an efficient skilled workforce with
BUSINESS care, and Hair care product knowledge for frontline sales.
STRATEGY FOR • Multi-local approach (Multi domestic strategy)
• Product customisation based on local • Strengthening Supply chain agility in
GODREJ preferences global market.
DYES • Economies of scale, providing expertise
• Follows a localized brand portfolio model.
local agility in return
maintains product exclusivity of the local
region and does not introduce products
from one trading region to the other.

• Focuses on creating local brands.

• Presence is limited to Asia, Africa and

Latin America.

Source: https://www.statista.com/statistics/1065544/india-godrej-consumer-products-turnover/
 • 2005: Buys Keyline, UK
• 2006: Buys Rapidol, South Africa, Hair colour business
• 2008: Buys Kinky, South Africa, Hair Extension market
GODREJ HAIR DYE • 2010: Buys Tura, Nigeria
Buys Megasari Makmur, Indonesia, Enters insecticide, personal wash and
-Global expansion baby wipes segment
- At a glance Buys Issue, Argentina
Buys Argencos, Latin American, Hair colour company
• 2011: Buys 51% Darling Holdings, Nigeria, Hair extension company
• 2015: Buys Frika, South Africa, Hair extension company

In 2010, International revenue was 23% of the

total revenue, whereas in 2020 it has increase
to 46%, this shows the increased focused on
global strategy of Godrej
Also, Godrej divested its UK business in order
increase its focus on emerging market

Source: GCPL Annual Report

 • Godrej has created a strong market presence in different emerging
markets including Latin America (Argentina, Chile) Africa (Southern
Region, Western Region), Asia (Indonesia, Malaysia)

• Further expansion in the surrounding countries can be explored

following a strategy that is in line with their current global strategy

• Using RISK framework analysis(Next slide) I have tried to decide

various country that could be considered for entry through
acquisition.
Next 5 Year Strategy
• Expansions can be explored in the following regions: (Shortlisted
for Godrej Hair Dye based on the growth rate and market size)

• Brazil
• Egypt
• Thailand
• Singapore
• Malaysia
 • Stars, which produce high salary additionally devours a lot of
organization money. In the end turns into cash cows when the market’s
general development rate decays. Comparing the different services that
are offered by the Godrej, the one which falls in the category of stars are
Godrej consumers products (GCPL). GCPL’s items incorporate cleanser,
hair colorants, toiletries and fluid cleansers. Its brands incorporate
‘Cinthol’, ‘Godrej No.1’ and ‘Godrej Shikakai’ in cleansers, ‘Godrej
Powder Hair Dye’, ‘Recharge’, “ColourSoft” in hair colorants and “Ezee”
fluid cleanser. Cash cows are commonly driving items in business sectors
that are develop. By and large, these items create gives back that are
higher than the market’s development rate and maintain themselves from
GODREJ BCG MATRIX an income point of view. This category is occupied by Godrej & Boyce
and Godrej Chemicals. Godrej and Boyce is both the holding organization
of the Godrej Group to a working organization with nearness crosswise
over 14 different organizations.Question marks are the products in the
organization that regularly develop quickly yet devour a lot of
organization assets. These product groups need to be broken down every
now and again and nearly to check whether they merit keeping up. The
question marks of Godrej are Godrej Nature Basket and Godrej A grovet.
Dogs don’t produce much money for the organization since they have low
piece of the overall industry and low or no development. Due to this, they
can end up being money traps, which tie up organization reserves for
drawn out stretches of time. Hence, they are prime possibility for
divestiture. Godrej InfoTech is grouped in the dogs quadrant of Godrej
organization.
Expansion FRAMEWORK for GODREJ HAIR DYES
 Supply chain risks are related to the following:
• Potential disruption of operations due to geo-medical risks
• Labour-intensive product portfolios in some geographies
• Inadequate planning in procuring raw material
Risks
• Inability to deliver material to the customer as per agreed
delivery dates
 • Manufacturing and supply chain focus is on becoming future-
ready. They have initiated projects on Industry 4.0 and are
making future-ready investments to ramp up different
processes. We have seen encouraging results in improved
productivity, greater accuracy, safety, and efficiency. We will
continue to introduce best practices across geographies and are
trying to become more agile in responding to constantly
changing consumer needs. The core to our approach is how we
build win-win relationships with all our partners. They partner
Opportunities closely to ensure capability development and alignment with
our core values. Our ongoing engagement with partners has
helped us identify emerging issues and adequately respond to
them in a timely manner. We have also adopted a sustainable
procurement policy that helps us work more closely with our
partners to make their operations more sustainable, and build a
robust supply chain.
 • Based on the implemented framework, Thailand is the most
preferred country for future expansion out of the given options.

• In alignment with the current strategy of Godrej we suggest that

Recommendation the company acquires a company in Thailand that has a product
portfolio similar to that of Godrej.

• As the company has experience in similar product portfolio in other

geographies, no extra expertise would be needed.
References

• https://www.businesstoday.in/latest/deals/story/godrej-gcpl-buy-additional-stake-chilean-firm-
53314-2015-07-29
• https://www.businesstoday.in/latest/corporate/story/godrej-consumer-to-buy-100-per-cent-
stake-in-frika-hair-144507-2015-01-06
• https://www.businesstoday.in/latest/corporate/story/gcpl-subsidiary-acquires-colgate-
palmolive-brand-in-uk-39429-2013-01-02
• https://globalization.stern.nyu.edu/cage?country=DEU&indicator=mx
• https://godrejcp.com/public/uploads/reports/2018-19/10_Our_Strategic_Pillars_201819.pdf
• https://www.businesstoday.in/latest/corporate/story/godrej-consumer-products-buys-
51percent-stake-in-africas-darling-group-23272-2011-06-02