MARKETING MANAGEMENT PROJECT

ACKNOWLEDGE MENT
We take opportunity to express our deep sense of obligation and gratitude of tireless help given by our guide MRS. MONICA MORR who gave valuable guidance of this project GODREJ. In this very real sense, this work would not have been possible without his shaping ideas. Through count down of this list which have been constant source of inspiration is an undertaking one. Keeping them anonymous, we offer our sincere thanks to her.

ANKITA KUMAR MOLSHREE SETHI GEETIKA KASTURI

ROHIT SHARMA AVIJIT DAS PRASHANT

INTRODUCTION

The Godrej Group was by Ardeshir and Pirojsha Godrej in 1897.

founded

Background

Godrej Group is one of the largest conglomerates in India, involved in various industries that include appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, food-processing, security, materials handling and industrial storage solutions, construction and information technology. Its products include security Systems and Safes, Typewriters and Word processors, Rocket Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents, Car perfumes, Chicken and Agriproducts, Material Handling Equipments Like FORKLIFT Trucks,Stackers,Tyre handlers, Sweeping machines, access equipments etc.The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej. Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the group have moved significant production facilities inland in search of cheaper pastures.

Timeline

1897 - Godrej & Boyce Mfg. Co. Ltd established 1918 - Godrej Soaps Limited incorporated 1961- Godrej Started Manufacturing Forklift Trucks in India 1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps 1974 - Veg oils division in Wadala, Mumbai acquired 1990 - Godrej Properties Limited, another subsidiary, established 1991 - Foods business started 1991 - Godrej Agrovet Limited incorporated 1994 - Transelektra Domestic Products acquired 1995 - Transelektra forged a strategic alliance with Sara Lee USA

1999 - Transelektra renamed Godrej Sara Lee Limited 2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps Limited. Godrej Soaps renamed Godrej Industries Limited 2002 - Godrej Tea Limited set up 2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited 2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by providing professional pest management services 2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages & Foods Limited 2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North America and the company was renamed Godrej Hershey Foods & Beverages Limited 2008 - Godrej relaunched itself with new colourful logo and a fresh identity music

Social Responsibility
Godrej has a philanthropic arm that has built schools, dispensaries and a residential complex for their employees. Trusts established by Godrej continue to invest in education, healthcare and upliftment of the underprivileged.

THE CONCEPT OF MARKETING

Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others. Marketing is defined by the American Marketing Association as

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. The Chartered Institute of Marketing, which is the world's largest marketing body, defines marketing as "The management process responsible for identifying, anticipating and satisfying customer requirements profitably." Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized a science, allowing numerous universities to offer Master-of-Science (MSc) programmers. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture. Seen from a systems point of view, sales process engineering views marketing as a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches.

The marketing concept The term marketing concept pertains to the fundamental premise of modern marketing. This can be laid out as recognising consumer needs/wants, and making products that correlate with consumer desires. Marketing orientations An orientation, in the marketing context, relates to a perception or attitude a firm holds towards its product or service, essentially concerning consumers and end-users. There exist several common orientations: Product orientation A firm employing a product orientation is chiefly concerned with the quality of its own product, and not in necessarily ascertaining consumer desires. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product. However, utilizing a product orientation has a prime disadvantage of making a firm lose out to competitors, who may produce technologically superior goods that engender higher consumer demand and thus market share. A product orientation may perhaps work best in a monopolistic market form, due to the inherent high barriers to entry within a monopoly.

MARKETING IN GODREJ
Godrej aims to relaunch products across categories to revive demand and enhance consumer recall. In some cases, the products will only be repackaged

and relaunched with a new marketing strategy; in others, the brands will be extended to some new product categories. New pitch: The consumer goods major has hired Bollywood actor Hrithik Roshan to endorse its flagship soap brand Cinthol The company has lined up major initiatives for its soap business. With 11% market share in value terms, Godrej is the second largest soap maker after Hindustan Unilever. Godrej plans a complete makeover of its flagship soap brand Cinthol and has hired Bollywood actor Hrithik Roshan as a pitchman. The brand, which was launched in 1952 as the first deodorant soap in the country, has been through several changes since then. It was initially positioned as a malecentric product but later it was repositiioned as family soap but now, the company plans to pitch it as a youth-centric brand, along with launching new products under the same brand name. We will also introduce hand wash and shower gels under the (Cinthol) brand, said Hoshedar K. Press, executive director and president.

In the 1980s, Cinthol was a leading brand with market share in double digits and was endorsed by popular celebrities such as Vinod Khanna and former Pakistani cricketer Imran Khan. According to AC Nielsen, in August, Cinthol had a 2.5% share in the Rs6,000 crore annual soap segment. Cinthol enjoys a good brand equity among consumers, which doesnt reflect in its market share. The repositioning will positively boost growth, says Sameer Deshmukh, an analyst at IL&FS Investsmart Securities Ltd. Godrej is relaunching another soap brand, FairGlow, with a new look and the initiative will be supported by significant advertising. Godrej is, however, withdrawing the Vigil brand that was relaunched recently. We tested the soap in the market after its relaunch but it didnt do well, so we decided to withdraw it, said Press. The soap segment contributed around 64% of Godrejs revenues of Rs758 crore in 2006-07. Godrej is revamping its hair colour business as well. It plans to introduce a powder version of Renew, its premium hair colour cream. Several consumers find powder hair colour more convenient and the move is aimed at providing consumers more convenience, said R.K. Sinha, the companys COO, marketing and operations.

While Godrej has an overall share of 36% in the Rs780 crore annual hair colour market, Renew only has a 1.1% share. While its Godrej hair dye powder is the leading product in the hair colourant market with a 27% share,the premium segment is still dominated by multinational brands, such as LOreal. Despite its multiple product plans, Godrej says overall advertising spending for the year will be comparable with last years. It had spent Rs53 crore in advertising and promotion in 2006-07.

Achievements

In 1897, Godrej Introduced the first lock with lever technology in India. In 1902, Godrej made the first Indian safe. In 1920, Godrej made soap using vegetable oil, which was a huge hit with the vegetarian community in India

In 1955, Godrej produced India's first indigenous typewriter In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam) Introduced India's first and only 100% CFC, HCFC, HFC free refrigerators

Awards

GCPL, the Highest Ranked Indian FMCG in Asia's Hot Growth Companies' List by Business Week Godrej Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For study. This study was jointly conducted by Business Today, Mercer and Taylor Nelson Sofres (TNS) Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey GCPL ranked 15th in Great Places to Work 2006 survey The Corporate Citizen of the Year Award given by Economic Times. Flagship brands Goodknight, Cinthol and Ezee selected Superbrands by the Superbrands Council

Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is acknowledged the World's largest mat manufacturers and South Asia's largest manufacturers of Coils.

Godrej Consumer Products Limited, adjudged as a Business Superbrand by the Super Brands Council.

The Return on Capital Employed and Return on Net Worth ratios of Godrej Consumer Products - the highest in corporate India.

Godrej Consumer Products was awarded the "Best Managed Workforce" award given by Hewitt Associates and CNBC TV18.

Godrej Consumer Products features in the Top 25 list of Great Places to Work (survey conducted by GrowTalent in

association with Business World) for four years in a row.

Lifetime Achievement Award for Godrej Industries from CHEMEXCIL, the Basic Chemicals Pharmaceuticals and Cosmetics Exports Promotion Council.

THE FOUR PS OF MARKETING

The Four Ps
In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a Marketing Mix. Professor E. Jerome McCarthy, at the Michigan State University in the early 1960s, suggested that the Marketing Mix contained 4 elements: product, price, place and promotion.
Product:

The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
Pricing:

This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention. Methods of setting prices optimally are in the domain of pricing science.
Placement

(or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This third P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults,

families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.
Promotion:

This includes advertising, sales promotion, including promotional education, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company. These four elements are often referred to as the marketing mix,which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. As a counter to this, Morgan, in Riding the Waves of Change (JosseyBass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the insideout view (looking from the company outwards), whereas the essence of marketing should be the outsidein approach".

PRODUCT DIVISION OF GODREJ

Godrej is a part and parcel of every Indians life. From locks to personal care. From appliances to air care. From furniture to construction. There are innumerable ways we enrich quality of life - everyday, everywhere. We offer an entire spectrum of industrial solutions from storage to material handling to process equipment and many, many more. Whether clients are looking for standard equipment or custom engineering solutions, the first name is Godrej.

Appliances Locks Furniture Security Equipment Audio Visual Solutions Typewriters Vending Soaps & Personal Care Foods Air Care Household Insecticides Housing

Storage Solutions Automated Warehousing Material Handling Equipment Process Equipment Precision Components & Systems Machine Tool Service Electrical & Electronics Tooling IT Solutions PLM Solutions Medical Diagnostics Agro Products

Pest Services

Management

Chemical Construction Material & Services Lawkim Motors Group

Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd. is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion in financial year 06/07. Godrej Interio is the flagship company of the group.

The Godrej group can be broadly divided into two major holding companies, working independently: Godrej Industries Ltd.

Godrej & Boyce Mfg. Co. Ltd. The Major Companies, subsidiaries and affiliates are

Chemical & Commodities

Godrej Industries Chemicals Veg Oils

FMCG

Godrej Consumer Products Keyline Brands UK Rapidol South Africa

Godrej Global Mideast FZE Godrej SCA Hygiene Limited

Godrej Hershey Limited

Foods

&

Beverages

Nutrine

Godrej Sara Lee

AGRI
Godrej Agrovet Animal Feeds Goldmohur Foods and Feeds

Golden Feed Products Higashimaru Feed Products

Oil Palm Agri Inputs Godrej Aadhaar Nature's Basket Integrated Poultry Business Plant Biotech

Services

Godrej HiCare (Pest Management Services) Godrej Global Solutions (ITES) Godrej Properties

CINTHOL-THE GODREJ PRODUCT

Cinthols web address can be clearly seen in the new TVC. Cinthol has revamped its new website to make it more interactive and youth focused. This is a shift form the earlier which had a static website, basically for the informative purposes. Godrej Consumer Products Ltd (GCPL), aiming to expand and double sales of its flagship brand Cinthol, has recently roped in actor Hrithik Roshan as brand ambassador. Our research has shown that Cinthol is entrenched in the mind of the Indian consumer. In retail outlets, Cinthol is second only to Lux. We will leverage this consumer connect by increasing our total advertising and promotion spends from 4 per cent to 15 per cent this year, said

Tanya Dubash, Executive Director (Marketing), Godrej Industries.

and

President

Cinthol has a market share of 2 per cent while mass market brand Godrej No 1 has a 7 per cent share. Cinthol soap recorded sales of Rs 80 crore last year, which the company plans to double by year-end. Cinthol is viewed as a masculine brand and we intend to expand it to adjacent categories. We are hoping that our association with Hrithik will make a connect with consumers in both rural areas and urban areas, said Rakesh Kumar Sinha, COO, (Marketing and Operations), GCPL. With a market share of 10.2 per cent, GCPL is the second largest player in the soap market in India. However, market leader Hindustan Unilever has a 54.3 per cent market share. According to research firm AC Nielsen, GCPL enjoys an off-take of 22.29 per cent in toilet soaps, which is higher than the industry average of 10.3 per cent.

Soaps contribute 70 per cent to Godrejs total turnover. Despite the regular price increases made by Godrej, the company has registered a volume growth of 23 per cent in the toilet soaps category with sales of Rs 308.1 crore in the first half of this financial year. The company will remain open to acquisitions in India. Cinthol interestingly is the only masculine soap brand available in the Indian market. Ever after Lifebuoy repositioned itself targeting family, there has been no soap except Cinthol targeting male. The reason may be that marketers felt that soaps are usually bought for the family and used by multiple members . The decision of the soap brand usually is taken by the lady in the house. And moreover, soaps were never considered to be a part of the male grooming product category. But things are different now. There is a marked shift in the consumer interest towards male grooming products. The category has expanded from shaving products, deo etc to face wash , hair care , face creams etc. The shift is also a result of the emergence of Metrosexual male and also of the Urban Nuclear Family where every individual members have the freedom to use individual products. So typically a modern household may see husband and wife

using

two

different

brand

of

soaps.

In this context , the relevance of Cinthol as a masculine brand achieves paramount importance for Godrej. Even without much promotion, Cinthol has a share of over 2 %. While Business Standards pegs the brand size to be around Rs 80 crore, Businessline puts the brand's size to be Rs 200 crore. More than the new users, Cinthol's strength has been a strong brand loyal customers. This is both a strength and weakness. The prime challenge for Cinthol is to be relevant to the new Male. The new campaign features a new look for Cinthol and a new slogan. The last ad of Cinthol featured the slogan " Get Ready Get Close " . The new slogan for Cinthol is " Don't Stop" . The brand promise is 24 hour confidence & Long lasting freshness. Although the slogan has been changed, the positioning has been in a consistent line. Cinthol has long been positioned on the basis of the properties of Deo, freshness and confidence. The new slogan tells the audience to have confidence to do what ever he likes. The execution of the concept is little out

of

the

world

but

interesting

to

watch.

Regarding the choice of the celebrity , Cinthol has pulled off a coup by roping in Hrithik. But what I have seen is that Hrithik has not been exploited as a brand ambassador. Brands like Acer and even Coke was not able to fully exploit this celebrity. My first impression about the ad is positive but the ad is not enough to raise the brand to a level of an icon. Having said that the slogan " Don't Stop " with core brand values of Freshness and Confidence give the brand lot of power to move ahead.

As it launches major advertisement campaign to mark the re-launch of Cinthol on Wednesday, to have a bigger cake of the Rs 6,000-crore soap market in the country, Godrej Consumer Products (GCPL) is expecting a 30 per cent growth on this soap brand this financial year. The Cinthol brand (which also has other products such as talcum powder and deodorants) contributed Rs 200 crore or 20 per cent to GCPL sales. The soap brand alone chipped in Rs 160-170 crore. The company has

roped in Hindi film actor Hrithik Roshan to promote the re-launched Cinthol soaps. Addressing a press conference here on Tuesday, Dr Rakesh Kumar Sinha, Chief Operating Officer (Marketing and Operations), said the company would re-launch not more than one in one quarter, beginning with Cinthol. He, however, evaded a question on what other products were slated for relaunch.

CONCLUSION
With the above project on Godrej specifically on its product division our entire group has got a great deal of knowledge about the company Godrej and its consumer related products chain. Godrej is one of the leading company of our country and one of the forward moving MNCs of the business world and we as a team enjoyed making the project report with full of information and pictorial representation of its products. CINTHOL, as a brand has being doing well in the market due to the marketing strategy used by the Godrej. Cinthol has pulled off a coup by roping in Hrithik Roshan.

Cinthol interestingly is the only masculine soap brand available in the Indian market. But Godrej can think of coming with the products which will be focusing on many other segments of the market. A change in segmentation and targeting of a different genre of consumers apart from its traditional market can open up new avenues of customer base.