Transcript
INTRODUCTIONINTRODUCTION
Economic growth for 2007-08 is 8.7% as per the Economic Survey 2007-08.
The FMCG sector continues to be the fourth largest sector in the economy
Key growth drivers for FMCG sectorKey growth drivers for FMCG sector::
1.rising disposable incomes
2.higher consumer spending
3.low penetration levels
ABOUT GODREJ
1897- Started as a locks manufacturing company
1930- Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils
Godrej is a leading manufacturer of goods and provider of services in a multitude ofcategories: home appliances consumer durables consumer products industrial products agricultural products
It recently entered the real estate and information technology sectors
Godrej CP Vision
“We are dedicated to DELIVER SUPERIOR STAKEHOLDER VALUE
by providing solutions to existing and emerging consumer needs in the Household & Personal Care business.
We will achieve this through ENDURING TRUST & RELENTLESS INNOVATION
delivered with PASSION & ENTERPRENEURIAL SPIRIT
• Sampark
• Sahayog
• Sampoorna
QUALITY MEASURES
•GCPL has earned CMMI LEVEL 5 of QUALITY ASSURANCEGCPL has earned CMMI LEVEL 5 of QUALITY ASSURANCE
• Almost every QA department contains elements of all CMM levels, Almost every QA department contains elements of all CMM levels, but the payoffs for using CMM development only come when level 3 but the payoffs for using CMM development only come when level 3 is fully reached.is fully reached.
QUALITY MEASURES
Recognitions
• Recognized as India’s ‘Best Managed Medium Cap Corporate of the Year’ by Asia Money
• The Malanpur factory won the Platinum Award in India Manufacturing Excellence Awards (IMEA) by Frost & Sullivan in the Chemicals Category.
• Godrej has been awarded the Platinum prize in the Hair Dye category by Readers Digest in the ‘Trusted Brand – Asia 2007’ awards
INDUSTRY ANALYSIS:
India’s FMCG sector is the fourth largest sector in the economy
Principal constituents:1. Household care 2. Personal care3. Food & Beverages
The total FMCG market is in excess of INR 85,000 Crores
According to CRISIL anticipation, FMCG sector could touch around INR 1,40,000 Crores by 2015.
Key players in FMCG industry are HUL,P&G,Dabur India Ltd,Nirma Ltd,Emami Ltd,etc.
Industry Analysis
Product details and their Market share:
Category Key Brands MarketShare
Soap Cinthol, Godrej no.1, Evita, 9.7% Fair Glow
Hair Colourants Godrej Kali Mehndi, Liquid Hair Dye, Nupur, Godrej Kesh Kala, Renew Hair Color, 35.2% Godrej Expert Hair Color. Liquid Detergents
Ezee 81%
COMPETITION ANALYSIS:
Strengths:
1. Low Operational cost & Mass production
2. Superior technology3. Brand building and marketing4. Established distribution
network5. Godrej as a brand
Weakness:
1. Low exports levels
2. "Me-too" products, which illegally mimic the labels of the established brands.
Opportunities:
1 Untapped rural market2 Rising income levels 3 Large domestic market4. Export potential5. High consumer goods spending
Threats:
1. Slowdown in rural demand2. Removal of import restrictions resulting in replacing of domestic brands3. Tax and regulatory structure
Operations and Technical plan
Supply chain management:
• The new distribution & supply chain system based on a replenishment philosophy
• Move from being a traditional “Push” operation to becoming a “Pull” Operation.
Well-established IT systems support:
• It has in place a robust IT infrastructure
• The implementation of the SAP package from January 2007
•Sampark, the Supply chain management initiative
MARKETING MIX
•Product1.Customer needs and wants
2.Survey and Market Research
3.Competitve Products
•Promotion 1.Print Media
2.Will invest Rs.100 cr on brand communications
3.Refreshed its 111 year old brand
MARKETING MIX
•Place1. Presence all over India
2.Focus on rural market
3.Acquired Keyline in UK
4.Widen Geographical presence and access trade
channels
•Price1.Demand Backward Pricing Strategy
2.Priced Competitively
MARKETING GOAL
Triple FMCG sales by 2012
Aggressive profit growth of 25-30% annually
Rs100 cr / year on Brand Communication
GCPL to invest Rs.360 cr more in FMCG arm
GCPL FMCG arm scouts for global buyouts
Financial PlanFinancial Plan
Soaps60%
By-Prod's2%
Hair Colour21%
Toileteries5%
Liq. Dets12%
Q3 FY 08-09 Sales Mix (Standalone)
Conclusion
GCPL will continue to expand and derive synergies from their international acquisitions. They have entered several new categories during the year and believe that these will add significant value for them going forward.
THANK YOU!!!
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