Godrej ST Report.pdf

8/18/2019 Godrej ST Report.pdf

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Research Reportof

Strategic Task

University of Ruhuna

Department of Marketing Management


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Table of Contents

ABSTRACT ...................................................................................................................................................... 201. INTRODUCTION ................................................................................................................................. 2

1.1. RESEARCH PROBLEM ................................................................................................................... 2

01.2 OBJECTIVES OF THE STUDY ............................................................................................................... 3

02. LITERATURE REVIEW ............................................................................................................................... 3

2.1. Brand Equity ........................................................................................................................................... 3

2.2. Brand Awareness ............................................................................................................................... 4

2.3. Brand Association .............................................................................................................................. 4

2.4. Brand Positioning ............................................................................................................................... 5

2.5. Marketing Mix .................................................................................................................................... 5

2.6. Impact of brand strategy on a brand ................................................................................................... 6

03. METHODOLOGY ...................................................................................................................................... 7

3.1. Exploratory and Conclusive Research Design .................................................................................... 7

3.2. Determination of Population and Sample ......................................................................................... 7

3.2.1. Population .................................................................................................................................. 7

3.2.2. Sample ......................................................................................................................................... 73.3. Data Collection .............................................................................................................................. 8

3.4. Measurements ................................................................................................................................... 8

3.5. Data analysis ...................................................................................................................................... 9

04. DATA FINDINGS AND ANALYSIS .............................................................................................................. 9

4.1. Demographic Analysis ....................................................................................................................... 9

4.2. Mean and standard deviation ........................................................................................................ 10

4.3. Frequency distribution ..................................................................................................................... 12

05. CONCLUSION ......................................................................................................................................... 18

5.1. Limitations............................................................................................................................................ 19

REFERENCE .................................................................................................................................................. 20


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ABSTRACT

This study was conducted to explore the overall perception of the consumers towards Godrej.

The perception was evaluated with the constructs of brand equity, brand awareness and the

marketing mix elements with intention to develop a reposition strategy eludes from the main

problem of the Godrej and to position as an innovative, caring and safe enabler to the home

environment. Research has been undertaken based on the hypothesis that Godrej is perceived as

a Hair Dye product, and done a survey to examine the perception of consumers about Godrej.

Through the findings it was revealed that customers perceived Godrej as a Dye product.

Key Words: Brand Awareness, Brand Association, Positioning and Marketing Mix

01.INTRODUCTION

Godrej Consumer Products Company has been originated in India and in the present context they

have established their presence over sixty countries including the nations in Asia, Africa and

Latin America. They serve to the Sri Lankan market since mid 1990s, and now have extended in

a broader range of consumer goods.

1.1. RESEARCH PROBLEM

Although Godrej is a well stable conglomerate in India with innovative product solutions, the Sri

Lankan market is not being perceived as so, because they have offered the Hair Dye product at

the initial stage where the product brand name and the corporate brand name were identical to

each other. Therefore the customers have perceived it as a Hair Dye product brand rather than an

Innovative and Caring supplier of consumer goods.

Godrej Sri Lanka is just about to launch new categories to the market and the pre mentioned

perception of consumers is the challenge when they come up with these product categories into

the market. Customers are bit reluctant to accept these new products specially, the baby products

with their mind associations with this brand.


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Prior to initiate with a strategic move, it is significant to review the brand awareness of the

Godrej. As to our background studies about Godrej it has been grasped as a Hair Dye product in

the customers’ mind sets and that was the platform to our research task. Based on that perception

the following hypothesis was developed.

Ha : Godrej is perceived as a Hair Dye brand

01.2 OBJECTIVES OF THE STUDY

To evaluate the brand awareness of Godrej and propose the necessary strategic

implications

To evaluate the concurrent marketing mix strategies (4Ps) and recommend the further

improvements to be done by the Godrej.

To provide the platform to an effective strategic approach to strengthen the cooperate

brand and to develop an Integrated Communication Plan with the appropriate channel

mix.

02. LITERATURE REVIEW

2.1. Brand Equity

According to Aaker (1991; 1996), brand equity is a Multi dimensional concept. It is composed of

brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary

brand assets. Other researchers identify similar dimensions. Shocker and Weitz (1988) propose

brand loyalty and brand associations, and Keller (1993) suggests brand knowledge, comprising

brand awareness and brand image. Considering the various suggestions, we recognize perceived

quality, brand loyalty, and brand awareness with strong brand associations as common

dimensions of brand equity. In summary, high brand equity implies that customers have a lot of

positive and strong associations related to the brand, perceive the brand is of high quality, and

are loyal to the brand. The dimensions of brand equity increase brand equity because each of

them is positively related to brand equity.


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2.2. Brand Awareness

Aaker, 1991, has defined brand awareness as “The ability of the potential buyer to recognize and

to recall that a brand is a member of certain product category”. According to Keller in 2003,

brand awareness plays an important role in consumer decision making by bringing three

advantages, these are learning advantages, consideration advantages and choice advantages.

Customer Based Brand Equity occurs when the consumer has a high level of awareness and

familiarity with the brand and holds some strong favorable and unique brand association in

memory.

Brand awareness consists of brand recognition and brand recall performance:

• Brand recognition is consumers’ ability to confirm prior exposure to the brand when

given the brand as a cue. In other words, when they go to the store, will they be able to

recognize the brand as one to which they have already been exposed?

• Brand recall is consumers’ ability to retrieve the brand from memory when given the

product category, the needs fulfilled by the category, or a purchase or usage situation as a

cue.

2.3. Brand Association

Brand awareness with strong associations forms a specific brand image. Aaker (1991) defines

brand associations as “anything linked in memory to a brand” and brand image as “a set of

[brand] associations, usually in some meaningful way” (p. 109). Brand associations are

complicated and connected to one another, and consist of multiple ideas, episodes, instances, and

facts that establish a solid network of brand knowledge. The associations are stronger when they

are based on many experiences or exposures to communications, rather than a few (Aaker 1991;

Alba and Hutchinson 1987). Brand associations, which result in high brand awareness, are

positively related to brand equity because they can be a signal of quality and commitment and

they help a buyer consider the brand at the point of purchase, which leads to a favorable behavior

for the brand.


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2.4. Brand Positioning

Positioning “refers to how customers think about proposed and or present brand in a market

(Perrealt and McCarthy, 1992)”. Through a brand’s positioning, a company tries to build a

sustainable competitive advantage on products attributes – tangible or intangible – in the minds

of the consumer. Brand positioning is important in deciding where you want to position your

brand within its category and relative to the competition. Brand positioning permeates virtually

everything we do. It is the foundation to all communication and brand strategy.

By developing a strong brand image helps to more effectively establish the company position in

the market place. It is the disciplined thinking that guides the basis for building relationships

between brands and customers. Once you determine the way in which you can reach your

market, the next thing to look at is how you are going to lure your customer to try your brand.

When a company sees a decrease in sales over time and/or major changes coming down the line,

they know it is time to implement changes within the company. Brand repositioning is when a

company changes a brand's status in the marketplace. This typically includes changes to the

marketing mix (product, place, price and promotion). Repositioning is done to keep up with

consumer wants and needs.

Two world popular examples that have done superior repositioning strategy are the McDonalds

and the WalMart. Based on the customer requirement of healthy foods the McDonald have

reposition them self by providing variety of salads and other healthy meal options. And also

WalMart has reposition with their slogan to save their reputation as a prestige brand. Therefor

they change their slogan as “Save Money, Live Better” instead of “Always Low Prices”.

2.5. Marketing Mix

Marketing is the art and science of selling. Ingredients for a good marketing (according toKotler)

are the 4P’s: product, price, promotion and placement. An effective marketing program

combines harmoniously all elements of the marketing mix. Marketing mix is the main instrument

of the company for obtaining strong positioning on the concerned markets.


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Marketing mix modeling has increased in popularity with industry and academics (Gatignon

1993; Hanssens et al. 1998). Considerable research has examined the effectiveness of different

elements of the marketing mix. For an example, numerous studies have examined the short-term

and long-term effects of advertising and promotion (e.g., Ailawadi et al., 2001; Anderson &

Simester 2004; Dekimpe and Hanssens 1999; Mela et al., 1997). This research often looks at

different outcomes and indicators of marketing effectiveness. For an example, Pauwels et al.

(2002) found that price promotions has a strong effect on category purchase incidence for a

storable product but a correspondingly larger impact on brand choice for perishable products. In

particular, it is rare that measures of customer mindset are introduced as possible mediating or

moderating variables in analyzing marketing effectiveness.

2.6. Impact of brand strategy on a brand

Much attention over the years has been paid to the development of effective brand strategies for

acquiring and retaining customers (Knox and Freeman, 2006). Customer retention and

acquisition will depend on how brand is projected through marketing strategies as consumers

tend to engage for partnership with a brand (Marianne, 2007). Winning strategy will lead to

better understanding of brand and developing a robust personality.

At the same time, in order to enhance brand benefit compared to others, a comparative

advertising according to Jain et al. (2004) has led to lower brand attitude score. No doubt, a right

strategy has helped to make a successful brand due to building up the positive brand image.

Strategy forms the basis for the firms and, hence, contributes to the firm’s br and equity. The

brand strategies can ensure a more synergistic and effective communication (Sreedhar et al.,

2005). Therefore, companies that manage a successful brand can enjoy higher sales, repeat

purchase and help to meet consumer expectation (Gibson, 2003). A good strategy not only helps

in building brand equity and image but also helps in improving brand score for measuring

effectiveness of any strategy.


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03. METHODOLOGY

3.1. Exploratory and Conclusive Research Design

Basic research designs namely exploratory research design and conclusive research design can

be identified. Exploratory research is designed which is used to explore or find new things, the

phenomenon conclusive research is used to test specific hypotheses examine specific relationship

and or make prediction for decision making. (Malhotra, 2010)

Conclusive research design is further divide into two categories, namely descriptive and causal

research designs. Descriptive research design is used to describe market characteristics or

functions and causal research used to obtain evidence regarding the cause and effect

relationships.

This study has been conducted under the research design of descriptive research to prove the

hypothesis.

3.2. Determination of Population and Sample

3.2.1. PopulationPopulation refers to the entire group of people, events, or things of interest that the researcher

wishes to investigate (Sekaran 2004 ). Based on this research requirement, the population of the

research is entire Sri Lankan consumer population.

3.2.2. Sample

According to Cooper and Schindler (2003), “The basic idea of sampling is by selecting some

elements in a population, we may draw conclusion about entire population.” A sample is a

subject of the population. It comprises some members selected from it. In other words, some, but

not all, elements of the population would form the sample (Sekaran, 2004).

Convenience sampling method which comes under the non – probability sampling was used. The

sample size consists of 150 respondents drawn from the population.


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3.3. Data Collection

The questionnaire developed to gather primary data, mainly consists of three parts. Part one was

based on the various aspects of brand equity and its determinants such as brand awareness and

brand association about the Godrej products. Part two was based on evaluating the effectiveness

of the marketing mix. Part three mainly focuses on consumer demographics. The questionnaire

was prepared in English and Sinhala. The questionnaire was pre-tested to clarify

misunderstandings and necessary changes were made to upgrade the questionnaire.

The secondary data were collected from the previous research papers, organizational

information, news paper articles, magazines, and from websites.

3.4. Measurements

Construct Item Reference

Brand Awareness Brand Recognition

Brand Recall

Keller. K. L. (1993)

Conceptualizing, Measuring

and managing customer based

brand equity.pg 14

Brand Association Brand logo

Innovativeness

Keller. K. L. (1993)

Conceptualizing, Measuring

and managing customer based

brand equity.pg 14

Marketing Mix Elements • Product

• Price

• Place

• Promotion

O’Connor, J. & Galvin, E.

(1997).

Allen & Fjermestad (2001)

Peattie, K. (1997). The

Marketing Mix in the ThirdAge of Computing.


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3.5. Data analysis

Collected data were analyzed by using the SPSS (Statistical Package for the Social Sciences)

Software. SPSS – is a computer application that provides statistical analysis of data. It allows for in

depth data access and presentation, analytical reporting, graphs and modeling. In descriptive

statistical have been used indices such as frequency, percentage, mean and standard deviation. All

other relevant data will be presented by using MS Excel Package.

04. DATA FINDINGS AND ANALYSIS

4.1. Demographic Analysis

In order to evaluate the awareness, consumption and perception about Godrej, demographic data

is essential. There with the sample size of 150, 58% representing male and extend 42% is female.

Majority of the sample represent the 16 – 25 years old category. Most of the respondents are

representing the graduate education level category and representing the sub urban areas.

Variable Categories Frequency Percentage

Gender

Male 63 42

Female 87 58

Age

16 -25 55 36.7

26 -35 32 21.336 - 45 35 23.3

46 – 55 19 12.7

55< 9 6.0


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4.2. Mean and standard deviation

Based on the findings of the part II of the questionnaire it depicts about the how the marketing

mix elements (4Ps) are affecting to the brand perception Godrej occupies in consumers mind set.

Product strategy has been developed mainly based on the product innovativeness, offered benefits, presence of verities of products, reliability and safety and convenience of the Godrej

products and their mean values were 2.83, 2.79, 2.74, 3.15, and 2.96 respectively. According to

the findings from the customers, they are having moderate perception about the Godrej products

in terms of their attributes and benefits. Considering the mean values of the product strategy

dimensions it couldn’t explicitly convey that the customers are satisfying with the Godrej

product strategy especially as an innovative brand name.

Under the pricing strategy the perception has been comprehended by the dimensions of value for

money, ability to buy a package of Godrej products for a reasonable price, Comparative prices

and the mean was 3.17, 3.30 and 2.93 respectively.

Placing strategy has been evaluated by taking the dimensions of convenience, availability,

intention to buy online and the mean values for these dimensions were respectively 3.25, 3.09,

2.67.

Advertising, Packaging, Publicity, Frequency of advertising in different medias, sponsorships

were the dimensions selected to apprehend the Promotional strategy and their mean values were

founded respectively 3.34, 3.11, 2.85, 3.05, 2.51 and 2.95

As per the above findings, it reflects that the customer perception about the entire marketing mix

is in a moderate level which depicts there is no significant level of satisfaction as expressed in

the questionnaire for the Godrej. The figures are mentioned on the Table 01.


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N Mean Std. Deviation

Godrej always offer something new for me 150 2.83 .870

Godrej products offer more benefits for me

than the other competitive products150 2.79 .738

I buy Godrej because they offer variety of

products that required to my day today

activities

150 2.74 .831

I trust Godrej products 150 3.15 .809

Godrej products make my life secure and

easier150 2.96 .732

Godrej products provide value for my money 150 3.17 .757

I like to buy a pack of the Godrej products for

a reasonable price150 3.30 .849

Godrej provides the products for the cheapest

price when compare with the competitive

brands

150 2.93 .820

I can buy the Godrej products from the

nearest retail outlet to me150 3.25 .935

I can buy the Godrej products whenever I

seek it150 3.09 .882

It is convenience me to purchase Godrej

products by online150 2.67 .959

I can easily identify the Godrej brand products

in the shop or in the supermarket150 3.34 .933

Packaging of the Godrej products are

attractive for me

150 3.11 .868

I am motivated by Godrej publicities to

purchase their products150 2.85 .789

I can see at least one Godrej advertisement

per week via television/ radio150 3.05 .982


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I buy Godrej products because solely of their

advertisements150 2.51 .833

Godrej contribute for substantial sponsorship

to the events Sri Lanka

149 2.95 .795

Valid N (listwise) 149

4.3. Frequency distribution

Based on the fact to reveal out the top of the mind recall product category, question number 2

was presented in the questionnaire. It reveals that the highest percentage of sample (80%) has

held the Godrej as a dye product producer and only 10% consider Godrej as a Mosquito and

insecticides producer. Figure 01 represents the data about the consumer Top of the Mind recall

on Godrej.

Thereby the alternative hypothesis (Ha) couldn’t be rejected. It means in the Sri Lankan market

context the brand Godrej is perceived as a Hair Dye product.

Figure 01

5%

80%

10%

4%

1%

Top of the Mind recall

Air Freshener

Products

Dye products

producer

Mosquito

product provider

Soap

Manufacturer

Other


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Identifying the awareness to Godrej brand is very essential. It was built out, based on which

media, how the people have known this presence of this brand, and it depicts that. Majority of

(64%) approximately has known these brands from the television advertisement, 12% from

newspapers and 11% by word of mouth.

Figure 02 represent the media usage of the Sri Lankan consumers.

Figure 02

To find out the awareness to the product category in general, whether the research sample have

heard about the product categories presented by Godrej and the sample is not necessarily to

know that they are a product category of Godrej, but an awareness in general. The well-known

brands are the Aba Black Henna (26%) Godrej Expert dye (24%), and Goodnight mosquito coils

(23%) and it has shown by the Figure 03. Other media (2%) has represent was mostly represent

the consumers who have get aware about the Godrej with they have seen the products in the

Supermarket or in the retail outlets.

64%

8%12%

11%3% 2%

TV channels From Radio From newspapers By Word of Mouth Internet & Social

Media

Other media

Media Usage


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Figure 03

To exploring the usage of the products, the highest usage is reported from the Good night

mosquito coils. As mosquito coils are basic safety needs demanded by the households. 88

consumers have used Good Knight mosquito coil and 45 have used Black Henna Dye in their

regular consumption. Those factors have been described from the following Figure 04.

Figure 04

110

7

119

39

104

19

17

17

5

6

10None

0 20 40 60 80 100 120 140

GODREJ EXPERT DYE

RENEW DYE

BLACK HENA DYE

CINTHOL SOAP

GOOD KNIGHT

HIT INSECTICIDES

AER

STELLA AIR FRESHENER

EZEE

SHOCK

PROTECKT HAND WASHNONE

Awarness of the products

33

3

45

16

88

5

13

7

5

4

16

16

0 20 40 60 80 100

GODREJ EXPERT DYE

RENEW DYE

BLACK HENA DYE

CINTHOL SOAP

GOOD KNIGHT

HIT INSECTICIDES

AER


EZEE

SHOCK

PROTECKT HAND WASH

NONE

Usage of the products


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The questionnaire has checked the awareness of product range presented by Godrej to determine

the strength of Godrej as a family brand. The founded results are depicts as below. 18% of the

research sample knows that Goodnight is offered under a brand of Godrej, 25% Abba Black

henna and 32% Godrej expert hair dye products. These findings are representing by Figure 05.

Figure 05

They know that product category is offered under Godrej and they are one step ahead because

they used the product too. These customers are the set that brings the customer based brand

equity to the Godrej. The highest usage is reported under Good night mosquito coils and Abba

Black henna products illustrates that the most profitable products of the portfolio of Godrej Sri

Lanka. But it has to be highlighted that 28% have not used any products as knowing them as

come under the Godrej brand. So it is very important to develop brand loyalty customers to the

Godrej. Figure 06 represent those findings.

101

10

80

19

56

5

8

8

6

5

9

16

0 20 40 60 80 100 120

GODREJ EXPERT DYE

RENEW DYE

BLACK HENA DYE

CINTHOL SOAP

GOOD KNIGHT

HIT INSECTICIDES

AER


EZEE

SHOCK

PROTECKT HAND WASH

NONE

Awarness to the Brand


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Figure 06

Brand logo is a significant element of brand equity, and it is a sort of mental association when

we recall to the brand and the graphical print in the consumers mind set about the brand.

Maintaining a unified brand is essential in giving the sense of consistency. Below are the results

of preference for the logo of Godrej. Appreciation of the corporate logo is representing by the

Figure 07. Most of the customers have identified the Godrej real corporate logo (B) as it is. But

based on the findings it shows that there is some problem in the identification of the brand logo

as for the other logos have also score a reasonable level identity by the consumers.

Figure 07

If the products

offered

through a certain

33

2

49

12

49

4

2

3

4

2

8

42

0 10 20 30 40 50 60

GODREJ EXPERT DYE

RENEW DYE

BLACK HENA DYE

CINTHOL SOAP

GOOD KNIGHT

HIT INSECTICIDES

AER


EZEE

SHOCK

PROTECKT HAND WASH

NONE

Usage of the Brand by knowing as

13%

33%

12%

18%

24%

Brand Logo Preference

A

B

C

D

E

A

B

C

D

E


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innovativeness, that could be a brand association which could help the brand in a positive way.

Research has revealed out that, to what extend the consumer perceived that the innovative

solutions are being providing by Godrej. Godrej is an innovative brand indeed in its origin

country, but as a matter of fact it is important to check that again in the Sri Lankan context. 45%

of the sample presumes that Godrej is an innovative brand while majority (54%) believes it as a

brand not coming up with innovative solutions. It seems that there is some difference in the

consumer perception about the Godrej as an innovator in the Sri Lankan market. These facts

have been shown in the following Figure 08

Figure 08

Godrej Sri Lanka is planning to enter into the markets of baby products and air care products in

recent future. Therefore it is important to see the feasibility of these potential markets. Based on

that organizational move, research have identified that there is a favorable customer likeness for

an Air freshness products if come to the market under the Godrej brand. Also there can be seen a

emerging potential market for the Liquid Detergents as approximately 32% customers are like

to purchase a Liquid Detergent under Godrej. These analyzed data have been displayed by the

Figure 09.

54%

46%

Innovativeness


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Figure 09

4.4 Inferential statistics

Factor Mean Mean difference T test Sig. difference

Male 2.94 0.178 1.238 0.144

Female 2.76 0.178 1.272 0.140

Based on the findings most of the factors have not shown a significant different between the

gender difference and their perception on the Gogrej. Therefore when planning strategies

company have to concern on both parties.

05. CONCLUSIONBased upon the findings it was revealed out that the majority of the sample has perceived the

Godrej as a Hair Dye product. Hence the hypothesis gets proved by the research findings.

Therefore the Godrej brand should undergo with an effective repositioning strategy as a remedy

to this problem.

Most of the customers are using the TV as a media and there is a trend in the word of mouth

communication also. The most using and aware products under the Godrej brand are Godrej

Expert, Good Knight and Black Henna. There can be seen a less awareness for their corporate

logo when the customers identifying it. Godrej have some potential to position as an innovative

brand. But their company have to done advertising for both the male and female in the same

manner.

16%

34%

32%

14%

4%

Baby Soap Air

Freshners

Liquid

Detergent

Bathing

Soap

None

Potential Market


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5.1. LimitationsSample size (150 respondents) is not adequate when it is compared with the Sri Lankan

population and draw conclusions about it.

Research have selected the convenience sampling method. So when gathering information from

the respondents there can be happen some biasness.


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REFERENCE

Aaker, D. A (1991), Managing Brand Equity, The free press, New York.NY.

Allen, E. & Fjermestad, J. (2001). E-Commerce Marketing Strategies: An Integrated Framework

and Case Analysis.Logistics Information Management, 14(1/2), 14-23.

Gibson, D. (2003)., Service Industries Journal, Vol. 23, pp. 166-182.

Jain, S.P., Steven, S. (2004)., Journal of Marketing Research, Feb., No. 1, Vol. 3, pp. 37-52.

Keller. K.L. (2003) Marketing Managemnet Building, Measuring & Managing Brand Equity, 2nd

de., Prentice – Hall, Engle- wood cliffs. NJ

Kevin Lane Keller., Conceptualizing, Measuring and Managing Consumer Based Brand Equity

(1993), Pg 14

Knox, S. and Freeman, C. (2006)., Measuring and Managing Employer brand image in the

service industry, Journal of Marketing Management, Vol. 22, pp. 695-716.

Malhothra, N.K. (1991) Marketing Research, An applied Orientation, rd ed, Prenticehall,

Englewood Cliffs, NJ

Marianne, W. (2007)., Understand your target, Management Science, October, Vol. 53, No. 10,

pp. 1634-1644

O’Connor, J. & Galvin, E. (1997).Marketing and Information Technology – The strategy,

Application and Implementation of IT in Marketing. London: Pitman Publishing.

Peattie, K. (1997). The Marketing Mix in the Third Age of Computing.Marketing Intelligence &

Planning, 15(3), 142-150.


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Sekaran,U. (2004), research method for business ,4th edition, John Wiley & sons INC

Sreedhar, M., Vishag, B. and McDonald R.E. (2005)., IMC and brand identity as critical

components of the brand equity strategy, Journal of Advertising , Vol. 34, No. 4, pp. 69-

80.

Yudelson, J. (1999). Adapting McCarthy’s Four P’s for the Twenty-First Century. Journal of

Marketing Education, 21(1), 60.

Appendix

I. Questioner - English

II. Questioner - Sinhala

Godrej ST Report.pdf

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