Marketing Warfare to

destroy Mosquitoes -The Godrej

C h a lle n g e
 A b h in it-6 1
 A n a n d -6 5
 B ria n - 7 2
 D e va sh e e sh -7 6
 G o u ra v - 7 8
 K a lp a k - 8 5
 K a u sta v - 8 7
 K ish a n -8 9
 S o m a ia h -1 1 3
 

 Household Insecticides: Indian Scenario

Household Insecticides Industry
Overview
Fig u re s in p e rce n ta g e o f to ta l p e n e tra tio n

S o u rce : IM R B H o u se h o ld Pa n e l
( 2010 )
Rural and Urban penetrations of each product
category in India

•M o sq u ito e s R e p e lle n t M a rke t S ize a s o f 2 0 1 0 is ~ R s 2 , 1 0 0 cro re

•5 ye a r C A G R ( 2 0 1 0 to 2 0 1 3 ) ~ 1 2 %
•To ta ln u m b e r o f p la ye rs in th e H I m a rke t: 3 2 in d u stry p la ye rs.
Growth Trends and Component Distribution
from Godrej’s balance sheet

Aerosols have seen the major growth of 24.2% over the 3 years
though the volume as a total of the whole is still small.
The usage of Coils has seen a gradual decreasing trend but also
accounts for the maximum sales revenue.
The Others segment Includes Creams, Sprays and Gels.
 Background of both
companies
Godrej Group
Consists of two corporate entities :
Godrej Consumer Products and
Godrej Industries .
Godrej Industries Ltd. (GIL) is India's
leading manufacturer of oleo-chemicals.
A major presence in food products such
as refined oil and tetra pack fruit
beverages.
Operates businesses
in medical diagnostics and real estate.
GCPL
GCPL now the largest ‘ Indian ’ home
and personal care ( HPC ) company in
India
Mosquito Repellents: No. 1 in Coils, Mats
and Aerosols Format. Overall Category
leader
Air Fresheners (Ambipur): No. 1 in Car
Air care
Hair Gels (Brylcreem): No. 1 in the
segment
Shoe Polish (Kiwi): No. 2 in the segment
Scourers (Kiwi Kleen): No. 1 in the
segment
The Good Knight brand was launched by Transelektra
Domestic Products Limited (TDPL) in 1984.

In a very short span of time the product had gained
huge success in towns, cities and metros, all of which
had a high incidence of mosquitoes and happily,
rapidly growing per capita incomes, Good Knight was
the right product at the right time.

The Good Knight strategy to manufacture and market
products that offered great value worked wonders till
a competitor launched a coil.

But as markets grew and evolved Good Knight
discovered another need gap and ushered in the era
of the liquid vaporiser.
 This addressed three key consumer needs: greater
convenience, enhanced safety and improved efficacy.

 Today, these are available in solutions for 45 nights, 60 nights
and 90 nights.

 Good Knight has been synonymous with innovation and
product superiority.

 Identifying a need gap at the extreme top end, Good Knight
entered the aerosol format with the launch of Good Knight
Advanced Mosquito Spray.

 Good Knight extended the Good Knight brand as a
moisturizing mosquito repellent cream under Good Knight
Naturals.
 Continuous improvement on existing products among the
success factors for the company. Some examples are :-

 Good Knight mats re-launched as silver power mats. This new
technology plugged the need to change mats every day.

 It helped the brand to increase the share in mat market to 60%.

 Good Knight Turbo refill was launched with the latest technology of
a turbo pump wick enabling better active release, led to a faster
and better effect .

 Good Knight announcing the arrival of Maha Jumbo – the biggest coil
in the world. The coil provided the most value for money and
came in an attractive consumer pack.

 The coil stand was also modified to suit the larger size of the
Strategy - Model
Vision

P L - MIS SION
GC
e
To m a k g h t a
ni
G o o d k c ro re
0
R s. 1 0 0 2 013.
b y
b ra n d
 Situation Analysis
Current market share of Rs.500 crores as of FY
2010
Current market potential as of FY 2010 is
Rs.2100 crores
Current CAGR as of 2010 over last three years is
12 %
Assuming same rate of growth for next three
consecutive years the expected market potential
is at Rs.2950 crores
Task at hand


The task is to have a lion’s share of Rs.500

crores in a possible growth area of Rs.850
crores. Since this is difficult to achieve in
domestic market alone, it is important to
have strategies for international markets also.


Bottom line: Strategies must be construed for

both Indian and international market to
achieve the mission
 Strategies in the Indian
Market
Resource Allocation ( BCG
matrix ) according to Product
Category
Data
 Results of Market Research on
prices of mosquito repellent
market segment
  Coil 10 no. Vapouriser   Cream 100  Gel  gms Spray ml Mats 30  
ml gms

Good  Minijumbo- Silver 45  -na- 125 gms-75 250 ml  Silver power-50  

knight 25(Rs) ml-49 Goodknight 
Advanced- advanced- 75
64

All out -na- 45 ml-60 -na- -na- -na- -na-  

Mortein Power 25 35 ml-45 na na 425 ml-155 Deep reach   
Deep reach 22 action-45

Tortoise 20 na na na na na  

odomos     58 80 gms-50      
B C G M a trix
A sse ssin g G ro w th O p p o rtu n itie s
( Ansoff's Grid ) according to Product
C a te g o ry

C o il V a p o rize
r
A n so ff’ s G rid ( C o n td ..)
Aerosol

M a ts

T h is se g m e n t is d w in d lin g , so m in im u m a m o u n t o f e ffo rt a n d
re so u rce s m u st b e u se d in th is se g m e n t e ve n a s a stra te g ic m o ve th e
sa m e u n it ca n b e d ive ste d .
 Strategies for
International Market
 GCPL - Need for
Globalization
 HI globally is a $8 billion dollar industry
 Huge untapped markets in third world nations
and developing nations
 To meet objective of doubling revenues by
2013, expansion is necessary
 Untapped market potential. Only 10% revenues
come from foreign markets
Acquisitions and External Presence
 Rest of Asia
 Includes operations in Indonesia and Middle East
 Megasari continues to enjoy its number two position in household insecticides
 markets and leadership positions in air care and wipes markets in Indonesia
 Megasari’s sales stood at ` 182
 Africa
 Includes operations of Rapidol, Kinky and Tura
 Africa business continues strong growth with revenues at ` 44 crores
 Legal merger of Rapidol and Kinky has been initiated
 Latin America
 Completed the acquisition of 100% stake in Argencos, a mid-sized Argentine
hair care company on 8th July 2010
 Sales stood at ` 59 crore
 Other Geographies
 UK business revenues stood at 48 crore
 Sales (ex. cuticura, which had a high base effect due to H1N1 last year)
recorded
 good performance, despite tough environment in European markets
GCPL – Globalization
Strategy Objectives
Business Focus:
 Primary focus – India
 Tap growth opportunities available in attractive
emerging markets – largely through acquiring
strong local brand
Investment thesis:
 Leverage fundamental proposition in markets with
significant middle and bottom of the pyramid
population
Goal for International business:
 Not more than 30-40% of GCPL’s revenues and
profits in long term
 Look at strong regional brands with a relative
market share > than 0.5
3 X 3 Strategy
 Markets and Categories
 Asia, Africa and South America are the world’s fastest growing
continents
 Focus on three core categories in scanning the 3 identified
continents - household care, hair care and personal wash
 Based on the development of these categories in the countries in
these 3 continents, further shortlist countries – China,
Indonesia, South Africa, Nigeria, Argentina and the SAARC
countries
 Values based Partnering approach
 Strength of management teams
 Taking local businesses to full potential
 Ensure that autonomy is maintained
 Disciplined M & A
 Rigorous screening of opportunities
 Strong understanding of each market
 Robust investment thesis
 Detailed due diligence

Global Markets
Benefits of focus
Categories of focus
 Home care built around Household insecticides
 Hair care built around hair colour and hair extensions
 Personal wash
Benefits of focus & scale
 Leverage a common innovation pipeline
 Compete effectively against global competitors
 Leverage scale and scope synergies in sourcing and
operations
 Launch other GCPL categories in these geographies
over time
Cross pollination between geographies
 Operational efficiency strengths in Indian insecticide
operations transferred to Indonesia, Bangladesh, etc.
 Common purchase of active ingredients and perfumes
in both household insecticides and hair colours across
global portfolio
Success story of
acquisitions
 Expansion in
Indonesia
 Acquisition of MEGASARI Group.
 11 branches, 619 salesman, 90000 outlets and 74
regional distributors.
 This acquisition helps in using the strong distribution network
of Megasari.
 Key brands :
 Hit
 Stella
 Mitu

 Main mosquito repellents in Indonesia include scented
vaporizers and repellent creams.
 Ideal positioning of Good knight Naturals as a moisturizing
mosquito repellent cream and vaporizers as perfumed
repellents.
 Main competitors in Indonesia are Mortien, Dabur Odomas




Expansion in Nigeria
 Acquisition of Tura-local bar soap brand business.
 30% market share in medicated soaps category.
 Distribution reach is above 69% in its key grocery and open
market channels, and has grown significantly across all
distribution channels over the past two years.
Main competitors are Dabur Odomos, Bugbam
(mosquito repellent wrist bands), All Out, Insecticide
Treated Nets, mosquito repellent candles.
Ideal positioning of Good knight Naturals as a non-sticky
moisturizing mosquito repellent cream on-the-go.
Coils should be positioned as easy to use economical
mosquito repellent for the house.



Expansion in South Africa
Acquisition of Rapidol International
Market share of Rapidol -70% in ethnic hair color
market.
 COMPETITORS
Target Mortien-outdoor protection, insect repellent with
a combination of germ protection (+Dettol)
TOUBA, JUZHONGWANG, LION - Chinese brands of
mosquito repellent liquid, incense, mat and mosquito
coils.
Tabard-world class mosquito and insect repellent.
Available in a 70g Aerosol and a 50ml Lotion.
Doom-Insect repellent available in the form of spray.
 MARKET PENETRATION
Introduction of entire range of Good Knight products in
RSA. Campaigns and education about mosquito
related diseases. Positioning similar to that in India.

T h a n k Yo u