A

PROJECT REPORT

ON

MARKETING RESEARCH

OF

RECENT TRENDS OF THE CONSUMER PRODUCTS IN THE

INDIAN
MARKET

BY

DEBROOP PANDIT
PHONE NO :09953955608
E-mail ID: [email protected]
STUDENT OF I.I.P.M.( NEW DELHI)
ROLL NO:21
SECTION: FN-2

SUBMITTED

TO
MR.TEJWANCH SINGH BEDI(SIR)
MR.KALIKINKAR ROY CHAWDHARY(SIR)
MR.ARVIND MIDDHA(SIR)
RECENT TRENDS OF THE CONSUMER
PRODUCTS IN THE INDIAN
MARKET

By

Debroop Pandit
Management trainee

GODREJ CONSUMER PRODUCTS LIMITED

SECTOR-5 ,SALT LAKE CITY

2
 ACKNOWLEDGEMENT

I would like to express my gratitude to our respected seniors to give us

the privellege to do report work on consumer products. I am deeply
indebted to our MR. TEJWANCH SINGH BEDI(SIR), MR. KALIKINKAR ROY
CHAWDHARY(SIR), MR. ARVIND MIDHA(SIR) whose help, stimulating
suggestion and encouragement helped me in all time of work. I would
also like thank my seniors who has also stimulate me in finding real field
data which leads me not only to complete it but to give the project a
competitive edge.

By
Debroop
Pandit

3
 INDEX
.

• INTRODUCTION:ORGANISATION GROUP PROFILE

- COMPANY OUTLOOK………………………………………………………. 6
• BRANDS ASSOCIATED BY GODREJ………………………………………. .7
• FEW BRANDS REVIEW WITH PERFORMANCE
-RENEW………………………………………………………………………… 11
-NO.1……………………………………………………………………………. 16
-EXPERT………………………………………………………………………... 18
-CINTHOL………………………………………………………………………. 20
• PERFORMANCE HIGHLIGHTS CONSOLIDATED
-FINANCIAL HIGHLIGHTS………………………………………………….... 23
-FINANCIAL OVERVIEW…………………………………………………….. 25
• BUSINESS REVIEW……………………………………………………………. 26.
• OPERATIONS…………………………………………………………………... 32
• KEY INITIATIVESQ2……………………………………………………………33
• GCPL STANDALONE FINANCIAL & RATIOS
-FINANCIAL HIGHLIGHTS…………………………………………………… 35
-SALE MIX…………………………………………………………………….. 36
-COST STRUCTURE…………………………………………………………… 37
- FINANCIAL OVERVIEW……………………………………………………. 39
• INTERNATIONAL OPERATIONS………………………………………….. 40
• BRAND PORTFOLIO………………………………………………………… 49
• FUTURISTIC OUTLOOK……………………………………………………. 64
• QUESTIONNAIRE…………………………………………………………….. 70
• BIBLIOGRAPHY……………………………………………………………… 79

---------------------------------------

4
ORGANISATION’S
GROUP PROFILE

5
 COMPANY OUTLOOK: INTRODUCTION

Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the
most accomplished and diversified business houses in India. Godrej's success has been
driven by the company's commitment to delivering innovation and excellence. Through the
consistent application of this commitment and a century of ethical business conduct, Godrej
has earned an unparalleled reputation for trust and reliability.

In 1930, Godrej became the first company in the world to develop the technology to
manufacture soap with vegetable oils; that spirit of innovation has continued throughout the
organization's history. Today Godrej is delivering consumers exciting innovations across a
spectrum of businesses. The company's pursuit of excellence is equally well established
and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security
equipment whose contents were unharmed; an equal level of product quality continues to
be expected from every product bearing the Godrej brand name. Godrej management
understands that the company's greatest asset is the trust and faith that consumers have
reposed in it, and recognizes that the company must continue to earn this trust. This
translates to the organization delivering outstanding quality and value in everything it does.

Godrej's ethical and visionary practices have allowed the company to successfully expand
into a number of businesses. Today Godrej is a leading manufacturer of goods and provider
of services in a multitude of categories: home appliances, consumer durables, consumer
products, industrial products, and agri products to name a few. A recent estimate suggested
that 350 million people across India use Godrej products. The group has more recently
entered the real estate and information technology sectors, and management views these as
avenues for enormous growth.

The Godrej Group stands in a strong position today. With annual sales in excess of $1
billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has
proven its ability to deliver strong financial performance.

6
BRANDS ASSOCIATED
BY
GODREJ

7
 WHAT ARE THE ASSOCIATED WITH
????

Godrej Consumer Products Ltd.(GCPL) is a major player in the Indian FMCG market with
leadership in personal, hair, household and fabric care segments. The company employs
950 people and has three state-of-the-art manufacturing facilities at Malanpur (M.P.)
Guwahati (Assam) and Baddi ( H.P.).

Their focus is on providing our customers with innovative, value for money solutions for
meeting their daily needs and improving the quality of their life. This is achieved through
the brands the company markets.

They are among the largest marketer of toilet soaps in the country with leading brands such
as CINTHOL , FAIRGLOW , GODREJ NO 1 . Their FAIRGLOW brand, India's first
Fairness soap, has created marketing history as one of the most succesful innovations.

They are the leader in the hair colour category in India and have a vast product range from
GODREJ RENEW COLOURSOFT LIQUID HAIR COLOURS, GODREJ LIQUID &
POWDER HAIR DYES to GODREJ KESH KALA OIL, NUPUR based Hair Dyes.

Their Liquid Detergent brand EZEE is the market leader in its category.

They are also the preferred supplier for contract manufacturing of toilet soaps be some of
the most well-known brands in the country.

They are supported in our endeavour by a state-of-the-art Research Centre based in

Mumbai.

Their quality products have been recieved very well in the international market and they
are present in more than -- countries across the world.

They are an Equal Opportunity Employer and offer very rewarding career opportunities to
people who join them.

They have adopted the Total Quality Management system and our factories have recived
ISO certifications.

Established in 1990 by Brian Boyce and Vicki Dryden Wyatt, Keyline Brands Ltd was
acquired by the Godrej Group in October 2005. Keyline operates in the toiletries and
personal care sector, and its portfolio includes a number of important niche brands, some of
which are household names such as Cuticura, Aapri, Erasmic and Nulon.

8
Godrej Consumer Products Ltd. (GCPL) acquisition of the South African business of
Rapidol, U.K. as well as its subsidiary Rapidol International gives the company
ownership of strong ethnic hair colour brands like ‘INECTO’ and ‘SOFLENE’ in ten
countries. It also gives GCPL an opportunity to enhance its global presence through the
Modern Trade Network and the ownership of customer listings of the INECTO and
SOFLENE brands.

Godrej Consumer Products Ltd. (GCPL), one of India's leading Fast Moving Consumer
Goods (FMCG) companies acquired Godrej Global Mideast FZE on October 1, 2007.

Godrej Global Mideast FZE is a 100% subsidiary of Godrej International Limited. It was
established in Sharjah with the objective of distributing Godrej FMCG products in the
Middle East. It has a strong network of distributors and sales personnel in countries such as
Oman, Saudi Arabia, Kuwait and Bahrain.

Godrej SCA Hygiene Limited is a Joint Venture Company between SCA Hygiene
Products AB, Sweden, (SCA) and Godrej Consumer Products Limited (GCPL) It will
manufacture and market paper based absorbent hygiene products, specifically sanitary
napkins and baby diapers, in India, Nepal and Bhutan. SCA and Godrej Consumer Products
Limited will be equal partners in the Joint Venture.

9
FEW BRANDS

REVIEW

WITH

PERFORMANCE

10
Renew cream hair colour is a breakthrough formulation from the Godrej Hair Care
Institute, a centre dedicated to the art and science of hair care in India.
The renew cream hair colour is specially designed to give vivid colours on Indian hair so
that The new Renew conditions your hair, not once but twice. Thus you get twice the
shine and softness.

New Renew cream hair colour contains Aloe + Protein conditioners that protect and
revitalise your hair while you colour it. The special after colour conditioner provides
nourishment and moisture to your coloured hair, giving it a healthy shine.

Renew transforms your hair and personality effortlessly. The rich, non-drip
formulation is so easy to apply that it makes hair colouring a real pleasure. Renew
spreads evenly on your hair to give a rich attractive colour all over that lasts for a long
time.

Renew cream hair colour is available in two sizes. 50ml priced at Rs. 65 (after a price
discount of Rs. 15) and the new 20ml pack priced at a never before Rs. 35 (after a price
discount of Rs. 5).

The bigger pack is sufficient for colouring shoulder length hair and offers a range of
attractive shades viz. Natural Black, Natural Brown, Burgundy, Light Brown, Light Golden
Brown and CINNAMON RED (New shade).

Renew 20ml is specially formulated for men and women with short hair. The new Renew
20ml pack is also ideal for touch ups. This means that you use and pay only for the quantity
that you require. Now that’s a great colour at a great value. The 20ml pack is available in
popular colours – Natural Black and Burgundy.

About Godrej Hair Care Institute (GHCI)

The Godrej Hair Care Institute is dedicated to the art and science of hair care. Set up by
Godrej Consumer Products Ltd. (GCPL), the leaders in the hair colouring business in India,
GHCI’s key objectives are to; Promote the cause of hair care in India, Develop products to
meet the unique needs of Indian consumers, Bring international quality products within
easy reach of Indian consumers, Break attitude barriers, Change perceptions and create an
understanding in

11
the consumer about hair care and Provide a knowledge base and hands-on experience to
Indian professionals through world-class hair care educational programmes.

Renew Highlights:

Renew Highlights is a breakthrough formulation from the Godrej Hair

Care Institute, a centre dedicated to the art and science of hair care in
India. Renew Highlights is a specially formulated kit that can give
vivid highlights on Indian hair so that it enhances your personality. It
can also be used on previously coloured hair.

The special after colour conditioner provides nourishment and

moisture to your coloured hair, giving it a healthy shine.

You can use it at home without the hassles of going to a salon. Renew Highlights
transforms your hair and personality effortlessly. The rich, non-drip formulation is so easy
to apply that it makes hair highlighting a real pleasure.

Renew Highlights is available in 2 vibrant shades – Blonde and Red.

The product is so versatile that you can get a range of shades from a dramatic look to
a subtle look by varying the time. Thus you can easily get the look that you desire.

You can vary the timings to get a range of shades from Luminous Copper to Vivid Gold
through the Blonde Highlights kit and from Red Burgundy to Vivid Red Streaks through
the Red Highlights Kit.

Renew Highlights is available at an unbelievable price of Rs. 125.

“From just wanting to camouflage grey hair, colouring has evolved to a

fashion and grooming accessory. There is growing awareness and appeal of
different techniques of enhancing hair. The launch of Renew Highlights now
offers the convenience of highlighting one’s hair within the comforts of your
home. Its attractive price point of Rs. 125 will allow consumers all over the
country and from all socio-economic backgrounds to transform their hair
and personality in a jiffy.”

All Renew Hair color Products:

Renew Powder Hair Colour

• Uses Water as its developer.

• Easy to apply and does not drip.
• Gives natural colour to hair from root to tip.
• Ensures 100% grey coverage

12
Renew

• a unique cream hair colour.

• breakthrough formula from Godrej Hair Care Institute.
• contains Aloe and Protein conditioners that protect your hair while you colour.
• giving revitalized coloured hair that shines with health

13
14
Aloe Protein Conditioners

• a unique cream hair colour.

• breakthrough formula from Godrej Hair Care Institute.
• contains Aloe and Protein conditioners that protect your hair while
you colour.

• giving revitalized coloured hair that shines with health.

Renew Highlights : Home use Kit for Permanent Highlights

Renew Highlights gives you the perfect way to give an attractive streak to your persona.

• suitable for people of all ages

• works on coloured as well as uncoloured hair
• This specially formulated non drip product with an easy-to-use brush, gives your
hassle free application.
• Available in unique shades – Red highlights and Blonde Highlights.
• You can vary the time for which you keep the product on the hair, and get results that
you desire.
• Red pack can give you a shade result from Red Burgundy streaks to vivid Red streaks.
• Blonde pack can give you a shade result from Copper Brown streaks to Gold Blonde
streak.

15
Godrej No.1, the flagship brand of Godrej Consumer Products Ltd., is now the largest selling
Grade I Soap in India. Grade 1 is the highest quality standard laid down by the Bureau of Indian
Standards (BIS). A Grade 1 soap is a soap which has a minimum TFM (Total Fatty Matter) content
of 76% and also has the least number of additives, thus making it a pure soap. In a similar
manner, depending on the TFM content and the level of additives present in the soap, they can
be further classified as Grade 2, Grade 3 as well as Bathing Bars.

Requirement for
Requirement for Toilet soap as per IS : 2888 - 1983
bathing bar as per
(Clauses 4.4,6.3,1 &7.1)
IS : 13498 - 1997
Characteristics Grade I Grade II Grade III Bathing Bar
Total fatty matter
76.0 70.0 60.0 40
percent by mass, Min
Rosin acid, percent by
mass, of total fatty 3.0 7.0 7.0 -
matter, Max
Free caustic alkali, as
sodium hydroxide
0.05 0.05 0.05 0.05
(NaOH), percent by
mass, Max
Matter insoluble in
alcohol, percent by 2.5 5.0 6.0 -
mass, Max
Chlorides (as sodium
chloride), percent by 1.50 1.50 1.50 -
mass, Max
Free carbonate alkali,
1.0 1.0 1.0 1.0
percent by mass, Max
Lather 280 240 200 -
++ Synthetic
* Methods of sampling and test for soaps (second revision) surface active
+ Bathing bar - Specification. agent(% by mass) :
4 min

16
Consumer Feedback:

-"The name of my Godrej product is Godrej No.1 Ayurvedic soap ( healthy skin ). By using this
soap i feel my skin starts to glow and I think it also helps in cleaning my skin complexion. You
product is very good.... -- Mohsina Khan (M.P.)

-"The True Natural Beauty" Godrej No.1 soap available in six fragrances is a wonderful product by
Godrej.The soap lasts longer.Many soaps from Sunlight to Lifebouy have come in market but
Godrej No.1 Sandal is a soap with difference. Congratulations to the R&D team of Godrej !!! --
Ghanshyam Bahadur Singh (U.P.)

- Hi I have been using your Godrej No.1 Sandal soap for some time now.I came to know the
Goodness of this soap from my mother who has been using it for many years now. After constant
use I have seen that your soap makes my skin soft and smooth. Thank u very much for discovering
such a good product I will never stop using this soap. -- David Majhi (Hooghly)

-We lived in India for two years and its been a few years now since we left India. We miss India
terribly. But the strangest thing is we miss your Godrej No.1- Sandal soap the most. We feel your
product Godrej No.1- Sandal is the nicest soap we have ever tried. -- Bonne Wagenaar
(Netherlands)

-I used your Godrej No.1 Ayurvedic some for a month and felt the difference. I no more get
pimples when I use this soap. Even my marks have reduced. I dont think I will ever be able to
stop using this soap. -- Pushpa (Nagpur)

- Godrej No.1 is really No.1 in my opinion. I have been using it for a long time and I am highly
satisfied with this soap because of its good quality and reasonable price. -- Gaurav

- Hi I have been using your No.1 sandal soap for quite some time now. Its a beautiful soap and
not so costly as all the other soaps in the sandal variant. This soap is real value for money.. --
Mayura (Mumbai)

17
Godrej powder hair dye, the flagship brand of GCPL and market leader in the hair of
colourants has won the most trusted brand award, from reader’s digest in the colour
category.

About product:

Godrej powder hair dye, is the world’s largest selling hair dye, trusted and used by millions
everyday. With its decades of expertise and unparalleled understanding of Indian hair
godrej expert now brings to you 5 experts benefits to get youthful looking hair.

Experts benefits:

 Colour lock formulation: It ensures uniform

color absorbtion in each strand of hair and gives
you longer lasting 100% grey coverage.
 Shampoo based dye: It helps in convenient and
easy application of color. This dye spreads evenly
through your hair right to its root and leaves your
hair soft, young and natural.
 No ammonia: It assures gentle and safe dying of
your hair.
 Nourishing conditioner:It makes hair luxury, soft, silky and shiny.
 Perfume: It gives you pleasant fragrance.

It is available in 2 convinient sizes- a 3gm sachet for men and 6gm sachet for women
which is adequate for long hair.

Facts:

• Every second 6 experts sachet are purchased in India .

• If all sachets GCPL sold in year 2007-08 are lined up , they would more than
cover entire parameter of India .
• If all experts cartoons GCPL were to be stacked the height would 300 times of
that Mt. Everest.

18
Godrej researches spent decades in researching for hair color solutions to youthful looking
hair. Researchers experienced understanding of the unique hair colouring needs of Indian
men and women, they continuously strive to develop products and solutions that ensure
youthful looking hair. It is their appreciation and trust that has propelled godrej expert to
use by millions everyday.

The expert offers consumers 5 benefits which ensures that your hair looks young and so
that young at heart can also look young for longer. With its
unique and innovative color lock formulation the color is
absorbed uniformly in each and every strand of your hair thus
ensuring a longer lasting 100% grey coverage. So godrej expert
has unique solution to combat effectively and ensure 100% grey
coverage. It is available in super convenient powder form with
a wick presence in 22lakh outlets across the nation – so you can find right
near you. When it comes to looking younger trust the expertise of
godrej expert – expert solutions to younger looking you.

19
Godrej Consumer Products Ltd. a major player in the Indian FMCG Market with leadership
in the personal care, hair care and fabric care categories, today unleashed 24-hour
Confidence with the launch of the new, improved and expanded Cinthol range of soap, talc
and deo with Bollywood’s hottest hunk Hrithik Roshan as the new brand ambassador.

Cinthol the popular and much-loved brand of Godrej Consumer Products Limited (GCPL),
now offers a Deo range of soaps, talc and deo sprays in three exciting fragrances - Classic,
Cologne and Sport in a trendy new packaging. It also offers Cinthol fresh soap and Cinthol
Regular soap with new exciting packaging. The eye-catching and vibrant packaging
symbolizes a sense of adventure, zest and action.

Speaking at the launch, Mrs. Tanya Dubash, Executive Director

and President (Marketing) Godrej Industries, said “The new
Cinthol range is a result of research with consumers and stands for
Confidence of Achievers who constantly strive to realize their
aspirations without stopping. Cinthol give them 24-Hour
Confidence and enables them to lead a “Don’t Stop Life”.

“Hrithik Roshan with his boundless energy and passion to excel was our obvious and most
appropriate choice for Brand Ambassador. He exudes Confidence and doesn’t stop till he
meets the high benchmarks he sets for himself.”

Cinthol Brand Ambassador, Hrithik Roshan added, “It’s an honour for me to be

associated with a brand likeCintholwhich has such a strong legacy. As Cinthol is all about
24- Hour confidence, energy and a 'Don’t Stop' attitude it was very natural for me to
associate with this brand. Its in perfect sync with my lifestyle & attitude”

The new Cinthol range brings 24-Hour Confidence through Active Deo Formula, which
controls body odor, Powerful Dry Shield that absorbs sweat, Ultra Scent Technology for
long lasting fragrance and Freshness that revitalizes you 24x7.

20
The New Cinthol range will be available across the country at modern retail and other
outlets and will be supported by high-impact advertising on television, print, out-door, on-
line and radio.

In a significant move, Godrej Consumer Products Ltd is currently test-marketing ‘Cinthol

Skin Stimulating Deo Soap’ in West Bengal and Gujarat. Depending on the consumer
response, the company can going to plans a national roll-out of the new product in the near
future.

Godrej aim to provide consumers with their new technological breakthrough soap that has
skin-stimulating beads producing essential oil.

The company is also planning to beef up its distribution network by an additional 15 per
cent—includes both urban and rural markets—within a year. At present, the company has
around 2,000 distributors across the country.

Researches revealed that the company are also planning to extend our on-going customer
relationship management (CRM) initiatives called ‘Collaborative Planning,
Forecasting And Replenishments (CPFAR) to additional distributors in the near future.
Thus, they will reduce our inventory levels by 10 per cent.”

They have also released an advertising campaign with a new tagline called ‘Get Ready’ to
promote their existing product ‘Cinthol Lime Fresh’ in West Bengal and Gujarat. In the
near future, they will be nationally rolling out an advertising campaign for this product as
well.

Cinthol Lime Fresh is the largest urban lime soap brand and its psychographic research has
revealed a high correlation with the vitality segment.

For the purpose, the company’s ad budget this year will grow by an additional 10 per cent,
compared to the previous year.

According to experts, at present, Cinthol operates in three categories and its contribution to
topline is soaps 92 per cent, talcum powders 6 per cent, and deodorants two per cent. The
size of the total soap market is 4.2 lakh metric tonnes.

21
Performance Highlights
Consolidated

22
 Financial Highlights - Consolidated

7 0 8 .1 1 0 3 .6
775 9 5 .8
100
675 5 6 0 .3
575 75
475 5 1 .5
3 4 6 .5 4 2 .7
375 2 7 4 .0 50
275
25
175
75 0
Q 2 0809 Q2 0708 H 1 0809 H 1 0708 Q2 0809 Q2 0708 H 1 0809 H 1 0708

N e t S a le s ( R s . C r o r e ) P B D IT ( R s . C r o r e )

9 1 .5 8 7 .9 7 3 .8 7 5 .4
75
75

4 2 .8 4 3 .7 50 3 7 .1
50 3 4 .7

25
25

0 0
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708 Q2 0809 Q2 0708 H 1 0809 H 1 0708

P B T (R s. C ro re ) P A T (R s. C ro re )

23
 Financial Highlights - Consolidated

E V A (R s. C ro re ) E P S (A n n u a lise d R s.)
5 9 .9
60

7 .5
50 4 5 .5

40 6 .7
6 .6
6 .5
2 9 .9
30
5 .9
1 9 .6
20
5 .5 5 .4

10

0 4 .5
Q2 0809Q2 0708 H 1 0809 H1 0708 Q 2 0 8 0 9Q 2 0 7 0 8H 1 0 8 0 9H 1 0 7 0 8

Ratios - Consolidated
Consolidate
Q2 0809 Q2 0708 H1 0809 H1 0708
d
A&P / Sales 7% 8% 8% 8%
PBDIT /
12% 19% 14% 18%
Sales
PBT / Sales 12% 16% 13% 16%
PAT / Sales 10% 14% 10% 13%
Net Profit /
10% 14% 10% 13%
Sales

24
 FINANCIAL OVERVIEW (Consolidated)

Q2 FY2008-09 (July – September 2008) v/s Q2 FY2007-08 (July - September

2007)

• Sales revenue (net of excise) increased by 26% to Rs. 346 crore from Rs.
274.0 crore
• Steep depreciation of the Rupee versus USD
• Board of Directors recommended an interim dividend of 75% and resulting
in total outflow of Rs 22.6 crore including dividend distribution tax
• Profit Before Tax (PBT) at Rs. 42.8 crore as compared to Rs. 43.7 crore
• PAT decreased by 6% to Rs. 34.7 crore from Rs. 37.1 crore
• EPS at Rs. 1.3 compared to Rs. 1.6 (Both figures not annualized)

HI FY2008-09 (April- September 2008) v/s HI FY2007-08 (April-September

2007)

• Sales revenue (net of excise) increased by 26% to Rs. 708.1

crore from Rs. 560.3 crore
Profit Before Tax (PBT) up 4% at Rs.91.5 crore as compared to Rs. 87.9 crore
PAT decreased by 2% to Rs. 73.8 crore from Rs. 75.4 crore

25
 Business Review -
Domestic Q2 FY 2008-09

26
 Q2 FY 2008-09 Scenario: Domestic

• Industry Scenario
– FMCG sector growth continues to be satisfactory
– Strong GDP growth & good economic fundamentals
– Vegetable oil prices high but show declining trend
– Rupee weakened versus the USD

• The Company has one business segment in which it

operates viz. Personal & Household Care

• GCPL Performance

Industry Growth GCPL Standalone

(AC Nielsen Off Take) (Sales Growth)
Q2 ‘0809 Q2 ‘0809
Toilet Soaps 17% 26%
Hair Colours 17% (6%)

27
 Sales Growth (Standalone)

3 5 9 .6 1 0 4 .1
400 9 6 .8
350 3 0 8 .1 100
300
250 75
1 8 3 .4
200 1 4 5 .3 4 1 .9 4 4 .5
150 50
100
25
50
0
0
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708
T o ile t S o a p s ( R s . C r o r e )
H a ir C o l o u r ( R s . C r o r e )

3 4 .7
8 35 2 9 .3
7 6 .0 30
6 25
4 .4
5 3 .9 20 1 4 .7
4 2 .8 1 3 .7
15
3
2 10
1 5
0 0
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708 Q 2 0809 Q 2 0708 H 1 0809 H 1 0708

L iq u id D e t e r g e n t s ( R s . C r o r e ) T o ile t e r ie s ( R s . C r o r e )

28
 Soaps - Revenue & Market Share

Market Share is % for Q2 08-09

185 11
1 0 .2
1 0 .0
165
9 .7 10
9 .5
9 .4

183.29
9.2 9 .2 9 .1

183.37
9 .1
145
162.81

125
145.31
Revenue Rs. Crore

Market Share (%)

8
105
124

117.9

7
134.08

85
124.42
106.7

6
65

45 5
Q 2 F Y 0Q7 3 F Y 0Q74 F Y 0Q7 1 F Y 0Q82 F Y 0Q8 3 F Y 0Q84 F Y 0Q8 1 F Y 0Q92 F Y 0 9

R e v e n u e sM a r k e t S h a r e

29
 Hair Colours - Revenue & Market Share

70 Market Share is % for Q2 08-09 40

3 7 .6
38
60 38.0 35 .9
34.9 3 5 .1 36
3 4 .2
3 6 .2 33.7
50 34.9 34

32
40
Revenue (Rs. Crore)

Market Share (%)

30
57.8

30 62.2
47.7

28
52.4

26
39.7

20
47.2

50.1
44.5

24
10
41.9

22

0 20
Q 2 F Y 0 Q7 3 F Y 0 Q7 4 F Y 0 Q7 1 F Y 0 Q8 2 F Y 0 Q8 3 F Y 0 Q8 4 F Y 0 Q8 1 F Y 0 Q9 2 F Y 0 9

R e v e n ue s M k t sh a re

30
 Liquid Detergents - Revenue & Market Share

35 100
Market Share is % for Q2 08-09
8 5 .4
8 0.1 8 1 . 88 0 . 7 8 2 .0 8 1 .0 90
30 79.8 78 .5
7 5 . 67 7 . 1
80
8 0 .2 6 8 .1 7 0 .6
25 70

60
20 27 .9
Revenue (Rs. Crore)

Market Share (%)

50
31 .2
15
40
2 8 .7

10 30

4 .4 2 20
3 .1 3 .9
5 2 .8
1 1 .1 1 .5 6 10
6 .6 8
0 5.3 0
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
4.4
F Y 0 6 F Y 0 6 F Y 0 6 F Y 0 7 F Y 0 7 F Y 0 7 F Y 0 7F Y 0 8 F Y 0 8 F Y 0 8 F Y 0 8 F Y 0 9 F Y 0 9

R e v e nue s M k t sh a re

31
 OPERATIONS

DOMESTIC BUSINESS

Soaps
• Soap sales expanded by 26% to Rs. 183.4 crore from Rs. 145.3 crore during the quarter .

• GCPL continues to be the second largest toilet soaps player with a market share of 9.5% for
Q2 FY2008-09

Hair Colorants
• Launched a new range of colours, in ammonia free powder and liquids, under the ‘Godrej
Expert Hair colour’ brand

- Formulation incorporates colour balance technology which delivers a uniform

shade to every strand of hair

- Powder range is available in 4 shades –Gentle Black, Burgundy, Dark Brown

and Natural Brown each priced at Rs. 10 per sachet

- The liquid form is available in 3 shades – Gentle Black, Dark Brown and
Natural Brown.

• This offers a quality colour brand at an affordable price

• Overall market share of the Company stood at 33.7% for the quarter under review

Liquid Detergents
• Launched a new range of detergent, Ezee Bright and Soft

- Product possess a unique Colour Guard Technology which protects the colours
of the clothes

- Available in 3 sizes – 500 g pack, 200 g pack and 18 g sachet

Toiletries
• All offerings including the Cinthol range of talc and deo sprays and Godrej Deluxe shaving
cream continue to deliver strong growth

• New range of Cinthol Deo Sprays launched in compact 75ml bottles. Category endorsed by
popular Bollywood star and youth icon Hrithik Roshan

32
 Q2 Highlights

Key initiatives during Q2 FY 0809

Soaps
Market share for Q2 FY 0809 is 9.5 %.
Cinthol Deo Musk Soap Launched
Price Increase effected

Hair Colours
Market share for Q2 FY 0809 is 33.7%.
Godrej Expert Hair Powder Hair Colour launched in 4 shades - Burgundy,
Gentle black, Natural Brown & Dark Brown

Liquid Detergents
Market share for Q2 FY 0809 is 77.1%.
Ezee Bright & Soft Liquid Detergent launched with Colour Guard
Technology for non woolen clothes

33
GCPL Standalone
Financials
& Ratios

34
 Financial Highlights - Standalone

5 3 6 .7 9 1 .7
575 100
4 4 6 .1 7 4 .6
475 75
375 4 4 .9
2 5 9 .0 50 3 4 .0
275 2 1 0 .3
175 25

75 0
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708 Q 2 0809 Q 2 0708 H 1 0809 H 1 0708

N e t S a le s ( R s . C r o r e ) P B D IT ( R s . C r o r e )

6 6 .5 6 9 .5
100 75
7 7 .0 7 9 .0
75
50
3 2 .3 3 3 .7
50 3 7 .6 3 8 .7
25
25

0 0
Q 2 0809 Q 2 0708 H 1 0809 H 1 0708 Q 2 0809 Q 2 0708 H 1 0809 H 1 0708

P B T (R s. C ro re ) P A T (R s. C ro re )

35
 Sales Mix (Standalone)

B y-Pro d's
L iq. D ets 5%
T oile terie2%
s
6%

Hair C o lo ur
16%

S oaps
71%

36
 Cost Structure (Standalone)

% of % of
Amount in Q2 % of Q2 H1 H1 % of
Sale Sale
Rs. Crore 0809 Sales 0708 0809 0708 Sales
s s

Materials Cost 155.6 60% 102.8 49% 313.2 58% 225.6 51%

Staff Cost 15.1 6% 10.9 5% 30.7 6% 26.4 6%

Depreciation 3.4 1% 4.0 2% 8.0 2% 7.9 2%

Advertisement 10.7 4% 12.3 6% 32.8 6% 27.6 6%

Other
47.1 18% 40.8 19% 92.8 17% 77.8 17%
Expenses
Interest & Fin. (10.5
(7.1) (3%) 2.0 1% (2%) 4.7 1%
Charges )

Provision for
5.3 2% 5.0 2% 10.4 2% 9.5 2%
Taxation

PAT 32.3 12% 33.7 16% 66.5 12% 69.5 16%

Net Sales 259.0 100% 210.2 100% 536.6 100% 446.1 100%

Other Total
3.5 1.4 7.5 2.9
Income

37
 Ratios - Standalone

Q2 0809 Q2 0708 H1 0809 H1 0708

A&P / Sales 4% 6% 6% 6%
PBDIT / Sales 13% 21% 14% 21%

PBT / Sales 15% 18% 14% 18%

PAT / Sales 12% 16% 12% 16%

Net Profit / Sales 12% 16% 12% 16%

Fixed Asset
5.9 3.9 6.1 4.1
/Sales Ratio
ROCE 20% 59% 22% 60%

RONW 24% 84% 24% 87%

38
 FINANCIAL OVERVIEW (Standalone)

Q2 FY2008-09 (July – September 2008) v/s Q2 FY2007-08 (July - September

2007)

• Sales revenue (net of excise) increased by 23% to Rs. 259.0 crore from Rs. 210.3
crore
• Profit Before Tax (PBT) at Rs. 37.6 crore as compared to Rs. 38.7 crore
• PAT at Rs. 32.3 crore compared to Rs. 33.7 crore in Q2 FY2007-08
• EPS at Rs. 1.2 compared to Rs. 1.5

HI FY2008-09 (April- September 2008) v/s HI FY2007-08 (April-September

2007)

• Sales revenue (net of excise) increased by 20% to Rs. 536.9 crore from Rs. 446.1
crore
• Profit before Interest Depreciation and Tax (PBIDT) at Rs. 74.6 crore compared
with Rs.91.7 crore
• Profit Before Tax (PBT) at Rs. 77.0 crore as compared to Rs. 78.9 crore
• PAT at Rs. 66.5 crore from Rs. 69.5 crore

39
International Operations
Subsidiaries

Kinky Group
Proprietary Ltd.

40
 INTERNATIONAL BUSINESS

Godrej Netherlands B.V. (Consolidated) - Comprises performance of Godrej

Netherlands BV, Godrej Consumer Products (UK) Limited, Keyline Brands
Limited, Inecto Limited & Inecto Manufacturing Limited)

• Revenue for the quarter was GBP 7.7 million compared to GBP 6.4 million in
the same quarter of the previous year .
• PAT for the quarter stood at GBP 0.3 million in Q2
FY2008-09.
• The “Cuticura” Hand Hygiene range was re-launched,
featuring new products such as Hand Foamer, Kids
Foamer, Kids wipes and Crackling Mousse
• The hair color brand “Hint of Tint” was launched in
Canada.
• Bio Oil achieved a “Signature Brand Status” in Boots – one of the highest
rated qualifications for a product finding excellent consumer franchise.

Rapidol Pty Ltd.

• Sales for the quarter were ZAR 21.17 million as compared to ZAR 20.50
million in the same quarter of the previous year .
• PAT for the quarter was ZAR 2.6 million compared to ZAR 1.3 million in Q2
FY2007-08 .
• Inecto” – Super Black, the largest selling hair color
sub-brand in Rapidol portfolio launched its 30 Years
Birthday celebrations promotions achieving a record
growth in sales during the quarter.
• Launched two new colors under the “Inecto” Powder Hair Colors (PHC)
range. The new colors Natural Brown and Auburn have been extremely
successful.

41
• “Renew” Hair Colors marketed and distributed by Rapidol in South Africa for
GCPL, has found excellent support

Godrej Global Mideast FZE (GGME)

• GGME is a 100% subsidiary of Godrej International Ltd and distributes its
soaps, hair colours and toiletries in the GCC and other adjacent countries
• Sales for the quarter under review were AED 2.4 million

• New Cinthol Deo Spray launched is rolling out successfully in to new markets
of GCC and the Middle East and getting new listing in retail chains

Kinky Group (Proprietary) Ltd. (Kinky)

• This represented the second quarter of performance of the Company as a
subsidiary of GCPL. For the quarter under review the Company’s sales
amounted to ZAR 22.45 million.
• Kinky sells a variety of products which include hair braids, hair pieces, wigs
and wefted pieces along with hair accessories like styling gels, hair sprays and
oil free shampoo.
• Kinky products are manufactured at plants located in South Africa at
Johannesburg and Durban and the final products are sold through cash n carry
outlets and owned stores.
• Opened a new “Kinky” Owned store in King Williams Kinky
town, which became the 17th Owned Store for the Group
Company. This was in quick succession to the 16th Proprietary
Owned store that was opened in the previous quarter Ltd.
after GCPL’s acquisition of the “Kinky” business. Owned Store model for the
“Kinky” business is the driver for the image of the “Kinky” products, service
to the consumers, pricing power and execution of high standard of
merchandising which differentiates “Kinky” from the rest of the brands in this

42
 category. Installed new Information Technology systems, including Syspro
and upgrading hardware as well as connectivity between factories and the
H.O. and between H.O. and the Owned retail stores.Tied-up strong suppliers
for raw material from China to ensure sufficient stocks to meet the growth
plans
• The Company increased prices to match up with sharp increase in input
costs which were rising in Q 1 and Q 2 and the Rand depreciating vs. US $.

Godrej Consumer Products Limited. (GCPL) is one of the leading companies in

the Indian FMCG market with presence in the personal and household care
products. It is also one of the largest marketers of toilet soaps in the country
with leading brands such as Cinthol, Godrej Fairglow and Godrej No.1. The
Company has manufacturing facilities at Malanpur (Madhya Pradesh) Baddi-
Thana (Himachal Pradesh), Baddi- Katha (Himachal Pradesh), Sikkim and
Guwahati (Assam). With the acquisition of 100% ownership of Keyline Brands
Limited, a FMCG Company in the United Kingdom, GCPL now owns international
brands and trademarks in developed markets that include Europe, Australia and
Canada. The acquisition of Rapidol (Pty.) Ltd., South Africa has given GCPL
ownership of Inecto and other brands in several African countries. GCPL has a
50:50 joint venture with SCA Hygiene Products AB, Sweden, known as Godrej SCA
Hygiene Limited. GCPL acquired Godrej Global Mideast FZE, a 100% subsidiary
of Godrej International Limited. GCPL completed the acquisition of Kinky
Group (Proprietary) Ltd., one of the leaders in the South African hair
business. With this GCPL gains entry into a new line of business in the hair
product portfolio.

43
L'oreal Group and Godrej Consumer Products dominate
Spends on Hair Dyes in Television Advertising

L ast time, it has noted that Shampoos was not a very seasonal category in terms of
advertising on TV. Let's check out the trends for another similar category from the Personal
Care Sector-Hair Dyes. The below graph suggests that like Shampoos, Hair Dyes do not
show any seasonality in terms of advertising peaks.

Let's look at the top players in the Hair Dyes category. L'oreal Group and Godrej Consumer
Products Ltd are the two big giants in this category. Their share of expenditures on this
category on Television are close to each other with L'oreal getting the top slot with nearly
38% share of the advertising pie whereas Godrej Consumer Products gets 33% share of
advertising. At the 3rd place they have Hygienic Research (although the margin between
the 2nd and 3rd position is large) with nearly 18% share of advertising followed by Henna
Export Corporation and Cavin Care Ltd with 5.5% and 3.8% shares of advertising
respectively.

44
Moving on to the Top Brands in this category-it's once again flooded by L'oreal Group &
Godrej Consumer Products. Garnier Color Naturals (L'oreal) is in the top position whereas
its other product - Nutrisse Hair Colour Mask and Loreal Excellence Cream are at the 4th
and 5th position. Super Vasmol 33 (Hygienic Research) is at the 2nd position. At the 3rd
position, they have Godrej Powder (Godrej Consumer Products) whereas its other products
- Godrej Color Soft, Godrej Kesh Kala Tel and Godrej Herbal Hair Dye are at 6th, 7th &
9th position respectively. Black Rose Kali Mahendi at 8th while Indica Hair Dye gains the
10th position.

45
Where do godrej see ads for Hair Dyes? Hair Dyes as a product are again mainly targeted
towards the common masses. The graph proves this right. Almost 68% of the total spends
on Hair Dyes are across the two program genres most common amongst masses-
Drama/Soap & Feature Films. The other program genres, which are favored by Hair Dyes
category, are News Bulletin, Comedies, Action/Thriller, Events/concerts/awards/show,
Film Based Magazines and so on.

46
 Godrej to develop more hair colour products

Godrej Consumer Products (GCPL) is focusing on expanding its product portfolio in the
mid-priced hair colour segment as part of strategy to cement its lead in the category instead
of competiting with French cosmetic major L’Oréal’s super premium brands like Garnier
and Excellence. Godrej doesn’t plan to enter the segment for now.

The company is lining up its research and development investments towards developing
newer technologies in mid-price hair colour segment.

Hoshedar Press, executive director and president, GCPL said, “The number of consumers
using powder hair dye is still very huge as powder hair dyes are much cheaper. Hence they
will continue to develop products in the popular, sub-popular and premium categories.”

For GCPL, hair colour is the second biggest business for the company making up 23 per
cent of its net sales in the last financial year.

Also being one of the most inflation-resistant categories in the fast moving consumer goods
sector, GCPL should plan to launch more products in this space in the coming decades.

The powder hair dyes, make up 50 per cent of the Rs 580 crore hair colour market in India.
However, in terms of volumes it makes up an even greater share of 75 per cent of the total
market. The rest of the market is made up of cream based hair colourants, which are
catching up fast among the affluent consumers.

GCPL is still the market leader in the overall category with a share of 35.2 per cent.
Although its share has gone down in the last six years from 43.9 per cent in 2002 as many
players both global and local have entered the Indian market since then like Schwarzkopf
and Cavin Kare.

L’Oréal, which entered the Indian personal care market in 1994 has already garnered a
share of nearly 20 per cent from local hair dye brands with its cream based colourant
Garnier.

Whereas powder hair dye satches are available at a price as low as Rs 9 per sachet, cream
based colours are priced in the range of Rs 80 to Rs 100 and super premium brands like
L’Oréal’s Excellence cost about Rs 500 per pack.

GCPL’s focus on powder hair dyes also resulted in the relaunch of its largest selling
powder hair dye Godrej Expert. Witnessing higher growth rates in the premium colour
segment the company also launched the powder hair dye extension of its cream based
colourant Renew .

47
Matching up with competitor L’Oréal’s aggressive marketing strategy, GCPL then roped in
bollywood celebrity Katrina Kaif as the brand ambassador for Renew. GCPL’s other hair
colour brands include Anoop, Kesh Kala oil, permanent liquid hair dye, Kali Mehndi and
Colour Soft.

Researches revealed that only 20 per cent of Indian women use hair colour in India
compared to 90 per cent in developed markets.

In value terms as well, the hair colour market is just one-tenth of the soap market in India,
which is in sharp contrast to world over where hair colour market is double the size of the
soap market. This makes hair colour category much under penetrated one in the
country.

48
 BRAND
PORTFOLIO

49
No products is dramatically competetive. They are uniform in demand. But what matters
is the brand recall which strikes the customer mind repeatedly and tends them to buy the
product. It has been dealing with consumer products. Their necessity is abundance in every
aspect or every day in a life. So meer products up gradation will not going to work. Vertical
as well as horizontal segmentation is necessary. But above all is necessary is –
Advertising.

Effect on product due to Advertisement-

• Raises standard of living.

• Better effect on product of public .
• Most efficient way to stimulate mass buying.
• To hasten recovery in a recession substantially increase ads.
• Proper advertisement lowers the price and increase revenue.

It is to be noted advertisement should properly channelised to regional as well as national

channels, respectively in their respective languages and in a respective way which appeals
the customer in a big way. Others things need to be focus which are described below;

CREATING BRAND EQUITY :

BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING & GREAT DEAL OF

LONG-TERM INVESTMENT. AT THE HEART OF A SUCCESSFUL BRAND IS A GREAT
PRODUCT OR SERVICE, BACKED BY A CREATIVELY DESIGNED& EXECUTED
MARKETING.

scope of branding:

 All about creating differences

 Differences often related to attributes or benefits of product itself, or

 By understanding consumer motivations & desires & creating relevant & appealing
images round their products

 Branding can be applied virtually anywhere a consumer has a choice

A BRAND IS SAID TO HAVE A POSITIVE CUSTOMER-BASED BRAND

EQUITY WHEN CONSUMERS REACT FAVOURABLY TO A PRODUCT & THE
WAY IT IS MARKETED WHEN THE BRAND IS IDENTIFIED AS COMPARED
TO WHEN IT IS NOT:

3 main ingredients to this definition:

50
 • Brand equity arises from differences in consumer response

• Differences as a result of consumer’s knowledge about the brand

• Reflected in perceptions, preferences, & behaviour related to all aspects of the

marketing of a brand

BRAND EQUITY AS A SET OF 5 CATEGORIES OF ASSETS & LIABILITIES

LINKED TO BRAND THAT ADD OR SUBTRACT FROM THE VALUE PROVIDED
BY THE PRODUCT OR SERIVICE TO FIRM AND/OR TO THE FIRM’S
CUSTOMERS:

These categories of brand assets are:

1. Brand loyalty
2. Brand awareness
3. Perceived quality
4. Brand association
5. Other proprietary assets (patents, trademarks, channel relationships)

BRAND IDENTITY IS A UNIQUE SET OF BRAND ASSOCIATIONS THAT THE

BRAND STRATEGIST ASPIRES TO CREATE OR MAINTAIN THESE
ASSOCIATIONS REPRESENT WHAT THE BRAND STANDS FOR & IMPLY A
PROMISE TO CUSTOMERS FROM THE ORGANIZATION MEMBERS BRAND
IDENTITY SHOULD HELP ESTABLISH A RELATIONSHIP BETWEEN THE BRAND
& THE CUSTOMER BY GENERATING A VALUE PROPOSITION INVOLVING
FUNCTIONAL, EMOTIONAL, OR SELF-EXPRESSIVE BENEFITS CONSISTS OF 12
DIMENSIONS OF BRAND ORGANIZED AROUND 4 PERSPECTIVES:

 As a product: product scope, product attributes, quality/value, uses, user, country

of origin
 As an organization: organizational attributes, local vs. global
 As a person: brand personality, brand-customer relationships
 As a symbol: visual imagery/metaphors, heritage

CORE & EXTENDED IDENTITY:

 Core identity: central timeless essence of the brand – remains constant as brand
travels to new markets/products
 Extended identity: includes various brand identity elements, organised into
cohesive & meaningful groups .

51
 STRATEGIC BRAND ANALYSIS
Customer analysis Competitor analysis Self-analysis
Trends Brand image/identity Existing brand image
Motivation Strengths, strategies Brand heritage
Unmet needs Vulnerabilities Strengths, capabilities
Segmentation Organization values

BRAND IDENTITY SYSTEMS

BRAND IDENTITY

Extended
Core

Brand as Brand as Brand as Brand as

Product organization person symbol
1.Product scope 7.Organization attributes 9.Personality 11.Visual
2.Product attributes 8.Local vs. global 10.Brand- imagery &
3.Quality/value customer metaphors
4.Uses relationships 12.Brand
5.Users heritage
6.Country of origin

VALUE PROPOSITION CREDIBILITY

*Functional *Emotional *Self-expressive *Support other brands

BRAND-CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION

BRAND POSITION
*Subset of the brand identity& value proposition *To be actively communicated
*At a target audience *Providing competitive advantage

EXECUTION
*Generate alternatives *Symbols & metaphors *Testing

TRACKING

52
 BRAND BUILDING MODEL

4. Relationship
What about you
& me?
Resonance
3. Response
What about you?
Judgement Feelings
2. Meaning
What are you?
Performance Imagery
Identity
Who are you?
Salience

Building brands, according to CBBE model, can be thought of as a sequence of steps, in

which each step is contingent on successfully achieving the previous step:

1. Ensure identification of the brand with customers & an association of the brand in
customers’ mind with a specific product class or customer need
2. Firmly establish the totality of brand meaning in the minds of customers by
strategically linking a host of tangible & intangible brand associations with certain
properties
3. Elicit the proper customer responses to this brand identification & brand meaning
4. Convert brand responses to create an intense, active loyalty relationship between
customers & the brand

These 4 steps constitute fundamental questions customers ask about brands:

1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel about you? (brand responses)
4. What about you and me? What kind of association & how much of a connection
would I like to have with you? (brand relationship)

53
THERE IS AN OBVIOUS ORDERING OF THE STEPS IN THIS “Branding Ladder”

BRAND BUILDING BLOCKS

PRODUCT ITSELF IS AT THE HEART OF BRAND EQUITY, BECAUSE IT IS THE

PRIMARY INFLUENCE ON WHAT CONSUMERS EXPERIENCE WITH A BRAND,
WHAT THEY HEAR ABOUT A BRAND FROM OTHERS, & WHAT THE FIRM CAN
TELL CUSTOMERS ABOUT THE BRAND IN THEIR COMMUNICATIONS:

• Designing & delivering a product that fully satisfies consumer needs & wants is a
prerequisite for successful marketing
• To create brand loyalty & resonance, consumers’ experiences with the product must
at least meet, if not actually surpass, their expectations

Brand performance:
Brand performance relates to way in which the product/service attempts to meet customers’
more functional needs:
• How well does the brand rate on objective assessment of quality?
• To what extent does the brand satisfy utilitarian, aesthetic, & economic customer
needs & wants in the product or service category?

There are 5 important types of attributes & benefits that often underlie brand performance:
1. Primary ingredients & supplementary features
2. Product reliability, durability, & serviceability
3. Service effectiveness, efficiency, & empathy
4. Style & design

54
 5. Price

Brand imagery:
Brand imagery is how people think about a brand abstractly, rather than what they think
brand actually does.Imagery associations can be formed:
• Directly: from consumers own experiences & contact with product, brand, target
market, or usage situation
• Indirectly: depiction of these same considerations as communicated in brand
advertising or by some other source of information, such as W.O.M.
• 4 categories can be highlighted:
1. User profiles
2. Purchase & usage situations
3. Personality & values
4. History, heritage & experiences

Brand judgement:
How customers put together all the different performance & imagery associations of the
brand to form different kinds of opinions .4 types of summary judgments particularly
important:
1. Brand quality
2. Brand credibility
3. Brand consideration
4. Brand superiority

Brand quality:

• There are a host of attitudes customers hold towards a brand, but the most important
relate in various ways to perceived quality of the brand
• Other notable attitudes related to quality pertain to perception of value &
satisfaction

Brand credibility:

• Perceived expertise: competent, innovative, & market leader

• Trustworthiness: dependable & keeping consumer interests in mind
• Likability: fun, interesting, & worth spending time with

Brand consideration:

• How personally relevant is the brand

• Depends on extent to which strong, & favourable association created as a part of
brand image

Brand superiority:

55
 • Uniqueness
• Absolutely critical to building intense & active relationship with customers

Brand feelings:

EMOTIONS EVOKED BY A BRAND CAN BECOME SO STRONGLY

ASSOCIATED THAT THEY ARE ACESSIBLE DURING PRODUCT CONSUMPTION
OR USE:
• Researchers have defined transformational advertising as advertising designed to
change consumers’ perception of the actual usage experience with the product
Following are 6 important types of brand-building feelings:
1. Warmth
2. Fun
3. Excitement
4. Security
5. Social approval
6. Self-respect

• First 3 types of feelings are experiential & immediate, increasing in level of

intensity
• Later 3 are private & enduring, increasing in level of gravity

Brand resonance:

RESONANCE IS CHARACTERISED IN TERMS OF INTENSITY, OR DEPTH OF THE

PSYCHOLOGICAL BOND THAT THE CUSTOMERS HAVE WITH THE BRAND, AS
WELL AS THE LEVEL OF ACTIVITY ENGENDERED BY THIS LOYALTY:

1. Behavioural loyalty
2. Attitudinal attachment
3. Sense of community
4. Active engagement

Finally, perhaps the strongest affirmation of brand loyalty is when customers are willing to
invest time, energy, money, or other resources in the brand beyond those expended during
purchase or consumption of the brand Strong attitudinal attachment or social identity or
both are typically necessary, however, for active engagement with the brand to occur.

THE IMPORTANCE OF CBBE MODEL IS IN THE ROAD MAP & GUIDANCE IT

PROVIDES FOR BRAND BUILDING:

56
 • It provides a yardstick by which brands can assess their progress in their brand-
building efforts as well as guide for marketing research initiatives.

Customers own brands:

THE BASIC PREMISE OF THE CBBE MODEL IS THAT THE TRUE MEASURE OF
THE STRENGTH OF A BRAND DEPENDS ON HOW CONSUMERS THINK, FEEL, &
ACT WITH RESPECT TO THE BRAND:

• Though marketers responsible for designing & implementing most effective &
efficient brand building programmes, success depends on how consumers respond

A GREAT BRAND IS NOT BUILT BY ACCIDENT BUT IS THE PRODUCT OF

CAREFULLY ACCOMPLISHING – EITHER EXPLICITLY OR IMPLICITLY – A
SERIES OF LOGICALLY LINKED STEPS WITH CONSUMERS:

The length of time to build a strong brand will, therefore, be directly proportional
to the amount of time it takes to create sufficient awareness & understanding so that firmly
held & felt beliefs & attitudes about the brand are formed that can serve as the foundation
for brand equity.

STRONG BRANDS BLEND PRODUCT PERFORMANCE & IMAGERY TO CREATE A

RICH, VARIED, BUT COMPLEMENTARY SET OF CONSUMER RESPONSES TO THE
BRAND. BY APPEALING TO BOTH RATIONAL & EMOTIONAL CONCERNS, A
STRONG BRAND PROVIDES CONSUMERS WITH MULTIPLE ACCESS POINTS TO
THE BRAND WHILE REDUCING COMPETITIVE VULNERABILITY. THE
VARIOUS ASSOCIATIONS MAKING UP THE BRAND IMAGE MAY BE
REINFORCING, HELPING TO STRENGTHEN OR INCREASE THE
FAVOURABILITY OF OTHER BRAND ASSOCIATIONS, OR MAY BE UNIQUE,
HELPING TO ADD DISTINCTIVENESS OR OFFSET SOME POTENTIAL
DEFICIENCIES:

• Strong brands thus have both breadth & depth

• At the same time brands should not necessarily be expected to score high on all the
various dimensions & categories making up each core brand value

Building blocks can have hierarchies

57
 • Brand awareness: It is typically important to first establish category identification
in some way before considering strategies to expand breadth via needs satisfied or
benefits offered

• Brand performance: Often necessary to first link primary characteristics & related
features before attempting to link additional, more peripheral associations

• Brand imagery: Often begins with fairly concrete initial articulation of user & user
imagery that, over time, leads to broader, more abstract brand associations of
personality, value, history, heritage, & experience

• Brand judgment: Usually begin with positive quality & credibility perceptions that
can lead to brand consideration & then perhaps assessment of brand superiority

• Brand feelings: Usually start with either experiential ones (i.e, warmth, fun,
excitement) or inward ones (i.e., security, social approval, self-respect)

• Brand resonance: Behavioural loyalty is a starting point but attitudinal attachment

or a sense of community is almost always needed for active engagement to occur

BRAND RESONANCE IS THE PINACLE OF CBBE MODEL & PROVIDES

IMPORTANT FOCUS & PRIORITY FOR DECISION MAKING- REGARDING
MARKETING:

• To what extent is marketing activity affecting the key dimensions of brand

resonance?
• Is marketing activity creating brand performance & imagery associations &
consumer judgments & feelings that will support these brand resonance
dimensions?
In a application of CBBE model, the M.R. firm, Knowledge Network, found that brands
that scored highest on loyalty & attachment were not necessarily same that scored high on
community & engagement (see Chart in next slide) However, by defining the proper role
for the brand, higher levels of brand resonance should be obtainable.

FOR THE CONSUMER…

BRANDS HELP THE CONSUMERS TO CUT THROUGH THE PROLIFERATION

OF CHOICES AVAILABLE IN EVERY PRODUCT & SERVICE CATEGORY

58
 BEST IDENTITIES ADVANCE A BRAND

COHERENCE

MEANING SUSTAINABILITY

VISION DIFFERENTIATION VALUE

AUTHENTCITY COMMITMENT

FLEXIBILITY

THE TARGET & COMPETITVE FRAME OF REFERENCE CHOSEN WILL DICTATE

THE BREADTH OF BRAND AWARENESS & THE SITUATIONS & TYPES OF
CUES THAT SHOULD BECOME CLOSELY RELATED TO THE BRAND:
• Recognising the nature of competition has important implications for the desired
brand association
• Arriving at the proper positioning requires establishing the correct P.O.D. & P.O.P.
associations

P.O.D:

PODs are strong, favourable, & unique brand associations:

• According to CBBE model, brand associations can be broadly classified on

following consideration:
- functional, or performance related
- abstract, or image related

• POD may involve:

59
 - performance attributes/benefits
- imagery associations
- “Overall superior quality”
- “low cost provider”

P.O.P:

2 basic forms:

1. Category POP:
– Legitimate & credible offering within a certain product/service category
– Specially critical for launches of brand extension into a new category:
POD may be clear from brand name, but what about POP

2. Competitive POP:
– Designed to negate competitors POD

Choosing POP & POD

IN TERMS OF CHOSING POD, BROADLY, THE TWO MOST IMPORTANT

CONSIDERATIONS ARE THAT CONSUMERS FIND THE P.O.D. DESIRABLE &
BELIEVE THAT THE FIRM HAS THE CAPABILITIES TO DELIVER ON IT

Desirability:

• Relevance:
- Target consumers must find POD personally relevant & important
- relevant considerations can easily be overlooked Eg “Clear”cola from
Pepsi

• Distinctiveness:
- Target consumers must find POD believable & credible
- Challenge is to find a viable basis for differentiation, when entering
category with established brands

60
 • Believability:
- Target consumers must find POD believable & credible
- must offer compelling reason for choosing over other brands

Deliverability:

• Feasibility:
- Ability of the product to perform at the level stated?
- Easier to convince consumers some facts about the brand they are unaware
of
rather than make changes in the product & convince consumers of these
changes.

• Communicability:
- can a consumer be given a compelling enough reason to believe that
the brand will deliver the desired benefits.

• Sustainability:
- sustainability of the actual & communicated performance over time:
# is positioning pre-emptive, defensible, & difficult to attack?
# is positioning likely to last for years?

Establishing POP & POD

Creating a strong, competitive brand positioning requires establishing the right POP &
POD. The difficulty in doing so, however, is that many of the attributes that make up the
POPs or PODs are negatively correlated.

Following 3 approaches are listed in increasing level of effectiveness – but also increasing
level of difficulty:
• Separate the attributes:
- launch 2 different ad campaigns for POP & POD: run concurrently or
separately; expenses high
- flip side, consumers may not develop as positive an associations as desired
• Leverage equity of another entity:

61
 - used “borrowed” equity to leverage equity of celebrities or ingredients for
establishing POD or POP
• Redefine relationship:
- powerful but difficult way is to convince consumers that the relationship is
positive: develop a credible story consumer will agree.

Updating positioning over time

Updating positioning involves 2 main issues:

1. Laddering: How to deepen brand meaning to tap into or brand values or other
more abstract considerations:
- involves a progression from attributes to benefits to more abstract values &
motivations, i.e., moving up the Maslow’s Hierarchy

2. Reacting: How to respond to competitive challenges that threaten an existing

positioning:
- When competitor challenges an existing POD or attempts to overcome a
POP, 3 main options:

(i) Do nothing: continue brand building

(ii) Go on defensive: if it has potential to disrupt market, add some reassurance in

product or advertising to strengthen POPs & PODs

(iii) Go on the offensive: if it seems potentially quite damaging may be necessary

to reposition brand - one approach is to launch product extension or ad campaign
changing meaning of the brand

62
U N D E R S T A N D IN G-T ET RH ME LE OF FN EGC T S O F M A R K E T IN
B R A N D E Q U IT Y

C o nsu m er res po nse

T o P A S T m a rk e tin g
a c ti v it y

B ra n d a w a re n e ss & b r a n d im a g e

C o nsu m er res po nse

T o C U R R E N T m a rk e ti n g
a c ti v it y

C H A N G E D b ra n d aw a re n e ss & b r an d im a g

C o nsu m er res po nse

T o 63F U T U R E m a r k e t i n g
a c ti v it y
FUTURISTIC
OUTLOOK

64
 SCOPE FOR THE FUTURE

Godrej hopes to take Cinthol to its place among the stars. Confidence, adventure,
machoism…. You would associate all these attributes with bike advertisements or with
films starring Bollywood hunks like Hrithik Roshan. But, jumping off cliffs or rafting over
raging water-bodies for a toilet soap? As the country’s second largest toilet soap maker,
Godrej Consumer decided to relaunch its flagship brand Cinthol, it decided to let Hindi
film star Roshan do what he’s best at. Accompanying the new action-packed television
commercial that’s currently on air, is an entirely repackaged offering from the Cinthol
franchise. The company has relaunched its entire range of soaps, deodorants, and talcs in
three fragrances — Classic, Cologne and Sport. To send one cohesive brand message
across price points and variants a “24-hour confidence” stamp is also affixed on all
products carrying the Cinthol nameplate.

Revamp Rationale:

Last year, Godrej Group unveiled the results of a brand valuation exercise undertaken by
international brand valuation consultants, Brand Finance for the group. The report card
showed that there was immense scope for improvement. While the potential value of its top
five brands — Cinthol, Fairglow, Godrej No 1, Ezee and Godrej Powder Hair Dye — was
Rs 3,900 crore, their realized value was at only Rs 2,600 crore. What explained the Rs
1,300-crore gap? Brands like Cinthol. The brand had a huge equity, but that was hardly
being reflected in sales. For instance, in 2007, retail audits pegged the market share of
Cinthol at less than 3 per cent in the Rs 6,000-crore toilet soap category. Then, toilet soaps
were growing slower than hair colours in the Godrej portfolio.

There was also a lot of gap to close with the market leader, Hindustan Unilever. With a
combined market share of 9.4 per cent (a bulk of it coming from the volume soap, Godrej
No 1), Godrej’s far behind Hindustan Unilever’s 54 per cent share of toilet soaps. Brand
Cinthol is also a shadow of its former self. In the 1980s to a better part of the 1990s,
Bollywood superstar Vinod Khanna and Pakistani cricketer Imran Khan, both of them at
the peak of their careers, pitched for Cinthol. By 1993, the soap boasted of an 18 per cent
share of the premium segment of toilet soaps. Then, Cinthol’s fortunes took a turn for the
worse. Between 1993 and 1996, it got in-and-out-of a joint venture with Procter & Gamble
(P&G), the aftermath of which saw Godrej’s overall market share in soaps slip to a measly
5 per cent. Post the P&G partition, Godrej relaunched its Cinthol International variant. But
the results were negligible, says market observers with the brand being perceived by many
as old-fashioned and male centric. In March 1999, the Rs 15-crore Cinthol advertising
account shifted from Madison to Ambience D’Arcy. The campaign made a conscious effort

65
to move away from its masculine perception and took a more unisex approach. But these
efforts did little to push up market share. Godrej is now taking another shot at
reinvigorating the brand. Cinthol is the flagship brand of Godrej. But they haven’t given it
due attention. They stretched it too much without a unified platform. They
now intend to bring it under one umbrella while making it more relevant to the young male
audience. I will say a brand needs to be specific and every soap must have a niche appeal.

Competitive Challenge:

The company conducted a poll on 27 groups consisting of eight consumers in each group
across eight cities. The focus group participants included both users of the soap as well as
buyers of competing brands. The objective of the study was to understand the values
associated with each brand, their strengths and weaknesses and finally the contribution of
the different brands to the overall brand equity. The brief given to creative agency Orchard
Advertising was to understand the equity of the Cinthol brand vis-à-vis its competition and
translate what the brand stood for in the consumers’ mind into effective packaging and
marketing communication. The communication had to be relevant to the target audience —
the confident achiever who wants to live an active lifestyle. Yet because of the varying
price points, the company needed to ensure that it delivered a single message to consumers
of brand Cinthol, rather than design variant specific communication, he adds. “Cinthol has
always stood for confidence”. Therefore,it is needed to decode what confidence meant to
youngsters, which helped them develop a clearer position. This position needs to be
attitudinal, therefore, the new 24-hour confidence and the ‘don’t stop’ concept,’ . The new
ad represents just that. The racy campaign features Roshan pulling off dare-devil stunts.
The ad starts off with the actor running through the wilderness and across roof tops. This is
followed by the actor indulging in incredible feats of bungee jumping, rafting, and horse
riding. The campaign ends with Hrithik playing football. He looks into the camera and says
“Don’t stop.” Current researches revealed that it has been seen a complete fit between what
Cinthol stands for and Hrithik’s values. He exemplifies energy, passion, and the ‘don’t
stop’ attitude to achieve what he wants to. That is exactly what brand represents.

Apart from the conventional TV, print, and cinema promotions, the company’s 360-degree
campaign includes outdoor visibility, modern retail activation, digital marketing initiatives
and communication through short messaging service (SMS). It also plans to beef up its
rural distribution. The competition is unlikely to sit back and watch. Years ago, when
Godrej relaunched the Cinthol International variant, its rival swooped in and relaunched
Liril. Likewise, in 2004, HLL launched Fair & Lovely soap in response to Godrej’s
successful FairGlow brand. If history is anything to go by, the action will not be restricted
to just Cinthol’s TV commercial this summer.

66
Godrej to expand product portfolio:

The Godrej Group should expands its product portfolio with new offerings and re-
launching existing products across personal grooming, properties, furniture and appliance
segments, as part of its new marketing and branding strategy.

The new strategy, uncorked by the Godrej Group at its Mumbai headquarters, involves a
roadmap to invest in a renewed Godrej Master Brand and corporateidentity. The group
unveiled a new Godrej logo, with green, blue and ruby colours. This is intended to support
its targeted revenue growth of 25-30 per cent, compounded annually for the entire group.

It is also expected to leverage cross-business synergies in its FMCG portfolio with a view
to tripling revenues in this segment by 2012. In essence, it is intended to bring out a closer
coordination between the group companies at the branding level. It will be an informal
coordination. The new strategy is an upshot of Godrej’s working with Interbrand, a global
leading branding consultancy, which studied the Godrej brand across employees,
consumers, investors and business partners over a period of 18 months.

The key initiative in the new strategy will be the group’s focus on ‘hero businesses’ across
four segments. In the personal grooming segment, the group should invest in hair colours
as a marquee category, through specific projects. This will see the group coming out with
new offerings and re-launching existing brands, apart from leveraging strong brands like
CintholThe other ‘hero business’ identified by the group is properties, where it intends to
build its presence in the real estate market as a brand across a portfolio of residential and
commercial projects. The other two ‘hero business’ identified were furniture and appliance
businesses.

The idea is to revitalise the Master Brand to also appeal to a younger mindset. The group
should make significant investments in the Godrej Master Brand as part of a systematic
plan for creating a strong Godrej brand franchise through retail channel strategy. The initial
phase of the initiative will build the Godrej Master Brand in tandem with the four hero
businesses.

67
Godrej Consumer Products gets A1 plus :

ICRA has assigned A1 plus rating to the Rs. 10 crore commercial paper programme of
Godrej Consumer Products (GCPL), indicating highest safety. The prospect of timely
payment of debt/obligation is the best.

Effective from April 1, 2001, Godrej Soaps (GSL) has been de- merged into two
companies. The branded consumer product businesses of GSL have been spun off into a
new company called Godrej Consumer Products (GCPL). The remaining businesses, that
is, the chemicals business, the investment portfolio held by GSL and all other divisions
such as medical diagnostics, real estate and the like have been retained in the existing
company which has been renamed as Godrej Industries (GIL).

GCPL commenced business as a separate entity with effect from April 1, 2001 with a share
capital of Rs. 23.93 crores and a total balance sheet size of Rs. 185 crores. The main
products of GCPL are toilet soaps, cosmetics including hair colour, shaving products,
talcum powder, fairness creams and liquid detergents.

The overall sales of the consumer products division increased by 22 per cent from Rs.
382.48 crores in 1999-2000 to Rs. 468.43 crores in 2000-01. Toilet soaps accounted for
around 66 per cent of total sales while cosmetics and detergents accounted for 28 per cent
and 6 per cent respectively during 2000-01. Toilet soaps witnessed a growth of 15 per cent,
cosmetics 44 per cent and detergents 28 per cent during this period. The growth in toilet
soaps was spearheaded by the good performance of the Fair Glow brand launched by the
company during December 1999.

The cosmetics division also witnessed high growth as the company expanded its range of
hair colours and launched a fairness cream under the Fair Glow brand. Most of the other
products introduced by GCPL also received good response. As a result, in spite of a sharp
increase in advertising and selling expenses from Rs. 44 crores during 1999-2000 to Rs. 86
crores during 2000-01, the PBDIT improved from Rs. 64 crores to Rs. 78 crores during this
period. The operating margins have been maintained at around 17 per cent while the return
on capital employed has improved to 53 per cent during 2000-01 from 38 per cent during
1999-2000. The gearing and the coverage ratios of GCPL are comfortable.

GCPL has strong brands such as Cinthol, Fair Glow and Godrej No.1 in its portfolio. The
company is the market leader in hair colours and liquid detergents. Given these strong
brands and a good management, ICRA expects GCPL's operating performance to improve
over the medium term. The rating takes into account GCPL's position in the consumer
product industry and its strong brand image.

----------------------------------

68
-‘While demand across all our product offerings continued to be
healthy, profitability was impacted by higher raw material cost.
During the quarter they introduced several new products,
including a range of hair colours which show a lot of promise.
Their international operations both in Africa and Europe
continue to do well. Despite a challenging macro environment I
remain confident of GCPL’s strong growth and continued good
performance’-

--------------------

69
QUESTIONNAIRE

70
 CONSUMER
QUESTIONNAIRE

NAME –
OCCUPATION –
DATE -
MEMBERS OF FAMILY –
PLACE –

(1) Which brand of soap and shampoo you consume ?

(2) Approximately how much money do you expect to spent on consumer products ?

<20

20-40

40-60

60-80

80>

(3)If I talk about fragrance which soap you recall at the top of the mind ?

LUX
PONDS
CINTHOL
GODREJ NO.1
PALMOLIVE
LIFEBUOY

(4)About how often you use GPCL in your home ?

71
 MOST USE >ONCE ONCE ONCE ONCE ONC < ONCE
BRAND USED OCCA. AWEEK AWEEK IN 2 IN EA A
WEEK 3WEEK MO MONT
NTH H

RENEW

EXPERT

CINTHOL

NO.1

(5)Do you colour your hair- occasionally or weekendly ? Which brand you consider most
suitable for colouring the hair ?

(6) Do you think GCPL is doing well with its product ?

(7)Are you aware of the grade 1 soap ?

(8) Are you aware of the brand ambassador of RENEW & CINTHOL?

(9)Do you know expert hair dye is the largest selling color in sachet in world?

72
(10)Rank the following soaps in order of preference :

CINTHOL –

NO.1 –

LUX –

LIFEBUOY –

DETTOL –

(12) Why you use LUX & BREEZE / CINTHOL & NO.1

SMELL –

IMAGE –

COLOR –

PACKAGING –

PRICE –

(13) Advertising is more important to you or quality of the product.

STATEMENT AGREE CAN’T SAY DISAGREE

Effect on standard
of living-
-raises it
-lowers it

Effect on product
on public-
-better ones
-poorer ones

73
 Most efficient way
to stimulate mass
buying-
-advertisement
- other methods

To hasten recovery
in a recession-

- substantially
increase
ads.
- substantially
decrease
ads.

Advertisement
effects on price-
- lowers price
- higher price

(14) Rank the following in order of importance to improve godrej soap & color renew sale-

SOAP RENEW

-MORE ADVERTISEMENT-

-BETTER PACKAGING-

- BETTER IMAGERY-

- BETTER QUALITY-

-BETTER AVAILIBITY IN STORES-

(15)Do you feel Godrej gives “ value for money” product , if not, which company you
feel giving so ?

74
 OUTLET
Questionnaire

INTERVIEWER:
DATE :
TIME STARTED:
TIME ENDED :
PLACE :

(1) What is the great thing you like in the GCPL as compared to other brand ?

Easy available

Cheaper rate

Huge demand

(2) Do you want the availability of its product on your store ?

(3) Weekly or Monthly turnover as compare to other to other product

GCPL HUL P&G

SALE(Rs)
Renew Expert Cinthol No.1

<10000

10000-30000

30000-50000

>50000
(4) As compare to godrej soap there are many fragrance soap are there. Do you think godrej
soap has create a good edge in the market ? …….. RANK THEM (1-5)

LUX

CINTHOL

NO.1

PONDS

PALMOLIVE

MARGO

LIFEBUOY

(5) Since you have a better understanding about the demand of a product – do you think that
godrej renew & expert are in a heavy competition in colours category with respect to
Garnier and others ?

BRAND OPINION

Strongly Disagree Nutral Agree Strongly

Disagree Agree

RENEW

EXPERT

GARNIER

OTHERS

76
(6) Does the company is doing well with its product ?

(7) Is there is a sufficient supply for which quantity is demanded.

YES-----------------------------------------

NO------------------------------------------

(8) Rate the service quality and visit frequency :

PRODUCT SERVICE QUALITY VISIT FREQUENCY

GCPL

HUL

COLORMATE

VOZMOL

RECKITT

(9) How do you rank GCPL in giving margin to retailer compared to HUL ?

77
(10) Are you aware of grade 1 & that GCPL manufactures only grade1 soap.

(11) Give your opinion what need to be done for better cometetion and penetration.

FOCUS
ON RATING

ADVERTISING

QUALITY

PACKAGING

CHANEL
PARTNERS

PRICING

PROMOTION

PLACE

CONSUMERS

78
 BIBLIOGRAPHY

• GOOGLE

• MAGAZINES/JOURNALS

• PAST RECORDS

• EXTENSIVE FIELD RESEARCH

• PRIMARY DATA ANALYSIS

• SECONDARY DATA ANALYSIS

79
Thank You

80