Godrej Marketing Plan

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!!!