Market

Not so long ago, the fast

moving consumer goods
(FMCG) category was
actually a slow moving
one. The range of products
in the basket was limited
and brands with the power
to move were few and far
between. It seemed that
this status quo would be
maintained for a long time to
come. But when liberalisation
was introduced it literally
opened the floodgates. Incomes climbed steeply
and with that the needs, dormant for so
long, came to the surface. The exposure to
international television programming and the
advent of glitzy magazines created the urge to
travel. In truth, the FMCG industry was re-born.
It cannot come as a surprise to discover that
the FMCG market is, today, a Rs. 130,000 crore
(US$ 28.90 billion) business that has grown at
an incredible average of 11% each year over the
last decade. This segment now also accounts for
about 2.20% of Indias gross domestic product
(GDP). Despite this breathless development,
industry pundits believe that FMCG is nowhere
close to reaching a plateau. It is
expected to continue its
steep rise till at least 2020
and has the potential to
touch sales of Rs. 370,000
crore (US$ 82.20 billion)
making it the third largest
industry in India after
finance and food.
Many reasons for
this explosive
growth
are being advanced.
But the two most
apparent are the
penetration of
branded goods
in Indias vast
hinterland and
the increasing
sophistication of
the urban Indian
consumer.
Sitting atop a high
pedestal in
this market of
opportunities is Godrej
Consumer Products Limited (GCPL). Already
a leading player and the custodian of some of
the countrys most respected brands, GCPL has
set in motion a series of initiatives that will see
it grab a very substantial part of this
progression.
Achievements
Godrej Consumer Products is a company with
a fine track record and an even finer history.
The company is recognised for its consumer-
centricity and for understanding the developing
needs of a huge market. Perhaps, it is
this that accounts for the brand
being always at theright
place at the right time.
It has under its belt
several achievements
of distinction. The
one, however, that
must rank very high
up in honour is the
fact that four of its
brands were
ranked in Brand
Equitys 100
Most Trusted
Brands Survey
of 2010.
Good Knight, its iconic
across-all-socio-economic-
categories brand, jumped to
a historic high rank of twelve
and was once again voted
the most trusted household
care brand in the country.
Godrej No. 1 and Cinthol,
its two highly visible soap
brands were ranked 13th
and 14th respectively
in the personal care
category while Godrej
Expert Powder Hair
Dye made its debut listing.
Close on the heels of this tribute was the
recognition that GCPL continues to be
recognised amongst some of the best
employers to work for in India and amongst
the top 25 employers in Asia.
History
Established in 1897, the Godrej Group has
grown in India from the days of the charkha to
nights at call centres. The companys founder,
Ardeshir Godrej, a lawyer-turned-locksmith,
was an unrelenting inventor and a visionary
who saw a future littered with opportunities.
His inventions, manufactured by his brother
Pirojsha Godrej, are the foundation of todays
Godrej empire.
Today, one of Indias most trusted brands,
Godrej enjoys the patronage and confidence of
over 470 million Indians who come face-to-face
with it every single day. With seven major
companies and interests in several high-growth
verticals real estate, industrial engineering,
appliances, furniture, security and agri care, to
name a few the group is marking annual
turnover at approximately Rs. 13,500 crore
(US$ 3 billion). With its vast spread of brands
and services, the group is such an integral
part of India that it may not be a commonly
known fact that 20% of the groups business
is conducted overseas. The groups presence
in more than 60 countries ensures that its
customers feel a sense of comfort even when
travelling abroad.
With brands people believe in, service
excellence they can count on and the promise
of brighter living, it is apparent that Godrej
knows what makes India tick.
Today, the group is at a point in its history
where its extraordinary past is meeting up with
its spectacular future. Godrej is learning and
relishing being young again.
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Product
Brand GCPL is a beehive of activity. In its
portfolio are a host of brands that cater to
the home care, personal wash and hair care
segments.
The home care bracket includes Good
Knight, one of Indias most powerful brands.
Riding on the proposition of protecting happy
moments, Good Knight leads the household
insecticides category in India. Its extension,
Good Knight Naturals, is the next step in the
brands evolution. In this market, Hit, a key
brand in its segment, completes the triangle.
Ezee, the companys liquid detergent brand
has been strengthened by the acquisition of
Genteel. Between them, they present a
formidable challenge to competitors and help
extend the companys complete dominance
of the specialty liquid detergent market.
Godrej No. 1, built on the proposition of
natural beauty, is the companys leading soap
brand. Re-launched in April 2010, it has nine
variants each offering a unique beauty
ingredient and each fulfilling a special need.
The market for soaps, however, is a complex
mix of differing mindsets. In this basket,
Cinthol bridges the gap in the freshness sub-
segment. Promoted by legendary Bollywood
icons such as Vinod Khanna and Hrithik
Roshan, Cinthol leads
the pack with
its promise of
vibrant energy.
Another
need is in
the fairness
subset. Here
FairGlow has a
commanding
presence,
outselling
every other brand.
For the health- and hygiene- conscious
Godrej Protekt marks the companys entry into
this growing market. Its range of hand sanitisers,
hand wash and hand wipes, through the promise
of freedom to touch are rapidly gaining
ascendancy.
The hair care segment is led by Godrej
Expert Powder Hair Dye, Indias biggest name in
hair colour, even today. Nupur, GCPLs mehendi
brand completes the portfolio with this natural
offering. While both these brands have mass
appeal, the countrys premium market is served
through Renew and Coloursoft.
Recent Developments
The recent merger of Godrej Household
Products Limited with GCPL has paved the way
for the company to have a single focal point and
thus drive expansion and growth. The
results are already apparent. GCPL
is now the largest home-grown
household and personal care company
in India and, outside Japan, the second
largest household insecticides
company in Asia.
Driven by what the company calls
its global 3 by 3 strategy presence in
three continents Asia, Africa and Latin
America through
three core categories
home care, personal
wash and hair care,
GCPL is on a global
acquisition spree. It
bought out Keyline
Brands in the United Kingdom, the Rapidol and
Kinky Group in South Africa and through
Godrej Global Mideast FZE, it owns
international brands and trademarks in Europe,
Australia, Canada, Africa and the Middle East. As
part of its plan to increase its global footprint,
GCPL has acquired Tura, a leading beauty brand
in West Africa, the Megasari Group, a leading
household care company in Indonesia and
Argencos and the Issue Group, two leading hair
colourant companies in Argentina.
Promotion
With a bag full of brands catering to a cross-
section of people, the promotional vehicles
GCPL uses are both varied and unique. Broadly,
the company uses mass media to reach mass
audiences, speciality publications and selected
television programmes to reach more
evolved markets and
the internet
to straddle both
segments. The
companys websites
host useful
information,
important tips,
provide online
games and allow
fun downloads.
Using Hit as its
arrowhead, GCPL
launched a nation-wide
Kill Malaria movement. It
encouraged the formation
of Hit Squads in residential societies and office
complexes, spreading through this initiative,
awareness about this disease and the ways to
control it. Around Diwali it launched the Hit
Swatch Tyohar Abhiyaan by kick-starting a
cleanup drive for slum dwellers across Mumbai.
Focusing on local audiences, GCPL launched
the first edition of Godrej Expert Sahyadari
Cine Awards in association with Doordarshan.
The aim was to recognise excellence in Marathi
films and encourage their development.
In another initiative designed to reach the
poor in colder regions of India, Ezee developed
the Godrej Ezee Raahat Ek Abhiyaan. This
project champions the donation of winter
clothing in Delhi and is supported by several
NGOs and Rotary International.
Brand Values
Godrej Consumer Products Limited is the story
scripted by consumers and supported by the
companys Brighter Living pledge. Brighter
Living is the
manifestation
of GCPLs
determination to
dazzle people
with original
products and
outstanding service.
It is quite simply the fuel
that propels the companys drive
into tomorrow.
Four values, led by the hallmark trust and
integrity define the companys vision:
Progression, Expression, Empathy and
Experience.
Progression comprises the small steps and
giant leaps that the company takes to constantly
move forward.
Expression is the cumulative of all thoughts,
feelings, hopes and dreams. These allow the
company to convert fantasies into reality.
Empathy embraces the deep understanding of
people, their lives, motivations and what makes
them tick. It helps build relationships that stand
the test of time.
Experience is the net residue of all learning
and, in turn, determines the ultimate customer
delight.
www.godrejcp.com
The name Godrej is derived from Guderz
the name of an important tribe in Iran
The first vegetable oil soap marketed by
Ardeshir Godrej was named No. 2. When
No. 1 was launched many years later, Ardeshir
Godrej explained the reason for launching
No. 2 first: If people find No. 2 so good, they
will believe No.1 to be even better!
Rabindranath Tagore, Dr. Annie Besant,
Dr. M A Ansari and C Rajagopalachari were
among the earliest loyal users of GCPL soaps
Godrej launched the shaving stick in 1932 and
the shaving round in 1938. Both are still in
production
FairGlow is Indias first and continues to be its
largest selling fairness soap
45 BUSINESS SUPERBRANDS
Things you didnt know about
Godrej Consumer Products
Third BUSINES Superbrands-2010-final 6/1/11 12:24 PM Page 45