CENTRE FOR MANAGEMENT
PGDBM 2013-15 BATCH:
PGDBM 2012-14 BATCH:
AnishiKhetan (Marketing Specialization)
CASE STUDY ON
GODREJ EXPERT HAIR
The Indian FMCG sector is the fourth largest in the economy and has a market size of
FMCG in India has a strong and competitive MNC presence across the entire value
predicted that the
FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003.
Middle class and the rural segments of the Indian population are the most promising
market for FMCG.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
The Indian hair care market generated total revenues of $1.4 billion in 2009.
Drivers & Challenges
Increasing disposable income.
Growth in fashion conscious consumers.
Rise in awareness.
Increase in male Grooming.
Usage of harmful chemicals.
Need to position their products.
Work on the advertisements.
Same products for urban and rural markets.
Current Trends:Usage of herbal products
Tie-up with salons
3D colour service
Brands seek to be natural
Major players:Player 1 Godrej
Player 2 L ‘Oreal
Player 3 Garnier
Player 4 Indica
Player 5 Streax
Player 6 Revlon
Solutions:Change its looks or appearance.
Tie up with Salons.
Increasing the price of the product would have a superiority value.
Provide essential features.
Established in 1897, the Godrej group has grown in India from the days of the charkha to
nights at the call centres. Their founder, Ardeshir Godrej, lawyer-turned-locksmith, was a
persistent inventor and a strong visionary who could see the spark in the future. His
inventions, manufactured by his brother Pirojsha Godrej, were the foundation of today’s
Godrej Empire. One of India’s most trusted brand, Godrej enjoys the patronage and trust of
around 500 million Indians every single day. Their customers mean the world to them.
With 7 major companies with interests in real estate, FMCG, industrial engineering,
appliances, furniture, security andagri care – to name a few – their turnover crosses 3.3
billion dollars. One ma think of Godrej as such an integral part of India – like the bhangara
or the kurta – but you may be surprised to know that 26% of their business is done overseas.
Their presence in more than 60 countries ensures that their customers are at home with
Godrej no matter where they go. With brands you can believe in, service excellence you can
count on and the promise of brighter living for every customer, Godrej knows what makes
India tick today.
ABOUT GODREJ CONSUMER PRODUCTS LTD
Godrej Consumer Products Ltd is one of the leading Fast Moving Consumer Goods (FMCG)
companies in India. The company is the market leader in personal, hair, household and fabric
care segments. They are having their manufacturing facilities at Malanpur in Madhya
Pradesh, Baddi in Himachal Pradesh, Guwahati in Assam and Namchi in Sikkim.
The company operates in two segments namely soaps and personal care. The soap segment
includes the Godrej brand and other brand toilet soaps and personal care segment includes
hair colour, shaving cream and gel, talcum powder, deodorant, fairness cream, liquid
detergent and other toiletries. They also undertake contract manufacturing of toilet soap for
The company is among the largest marketer of toilet soaps in the country with leading brands
such as Cinthol, Fairglow, and Godrej No 1. Fairglow, India's first fairness soap created
marketing history as one of the most successful innovations.
The company is also the leader in the hair colour category in India. They are having a vast
product range from Godrej Renew Colourssoft Liquid Hair Colours, Godrej Liquid & Powder
Hair Dyes to Godrej Kesh Kala Oil, Nupur based Hair Dyes. Their Liquid Detergent brand
EZEE is the market leader in that category.
Godrej Consumer Products Ltd was incorporated on November 29, 2000 as a public
company and was promoted by Godrej & Boyce Manufacturing Company. The liabilities and
assets pertaining to the consumer products business of Godrej Soaps Ltd together with the
factories situated at Malanpur and Silvassa along with the marketing, selling, distribution and
related facilities have been transferred to the company with effect form April 1, 2001. Also,
the company set up a new factory at Guwahati in Assam for manufacture of hair colour and
toiletries during the year 2001-02.
During the year 2002-03, the company launched Godrej No. 1 Ayurvedic soap and Godrej
FairGlow Saffron in the southern markets of Karnataka and Andhra Pradesh. Also, they
entered the unbranded mehendi powder market by launching 100 per cent natural mehendi
branded 'Godrej Nupur'.
In May 2003, the company acquired the rademark and copyright relating to the brand Snuggy
for a total consideration of Rs 5.9 crore and re-launched as Godrej Snuggy baby diapers in
the market. The company commenced commercial production at their manufacturing unit at
Baddi in Himachal Pradesh. During the year 2005-06, the company launched many major
products which include CintholDeo Soap, Godrej Renew Cream Hair Colour, Godrej Herbal
Powder Hair Dye, Cinthol Hand Sanitiser, Godrej Shave Gel and Godrej Snuggy baby
In October 2005, the company acquired 100% ownership in in Keyline Brands Ltd, a UK
based FMCG. This acquisition gives the company, ownership of several international strong
brands and trademarks including Cuticura, Erasmic and Aaprt in many countries.
During the year 2006-07, the company commenced commercial production at their two new
manufacturing units, one at Baddi in Himachal Pradesh for manufacture of toilet soap and the
other at Namchi in Sikkim for manufacture of Powder Hair Colours. In September 2006, the
company acquired the South African business of Rapidol, UK with their subsidiary Rapidol
International. In March 2007, they formed a 50:50 joint venture company known as Godrej
SCA Hygiene Ltd along with SCA Hygiene Products AB, Sweden which will manufacture
and market paper based absorbent hygiene products, specifically sanitary napkins and baby
diapers, in India, Nepal and Bhutan.
During the year 2007-08, the company launched Godrej No 1 soap in Papaya and Lotus
variant and Godrej Renew Powder Hair Colour. They re-launched their flagship brand
Cinthol in a new range of soaps, talc and deo sprays. Cinthol Regular and Fresh soaps were
also launched in an attractive new packaging. Their joint venture company, Godrej SCA
Hygiene Ltd launched Libero baby diapers, Tena and Libresse and also they re-launched
Snuggy brand as 'Snuggy Dry' in the states of Kerala and Tamil Nadu.
The company has been awarded the Platinum prize in the Hair Dye category by Readers
Digest in the 'Trusted Brand - Asia 2007' awards. There were ranked 6th in the 'Best
Employers Study' conducted by Hewitt Associate along with The Economic Times, 9th in the
Great Places to Work survey conducted by Great Places to Work Inc., USA in 2008 and 14th
on the Best Companies to Work For in India Survey conducted by Business Today and
Mercer TNS. Malanpur factory won the Platinum Award in the India Manufacturing
Excellence Awards (IMEA) by Frost & Sullivan, in the Chemicals Category and also
received a commendation certificate for Strong Commitment to Excel in the CII-EXIM Bank
Award for Business Excellence.
In October 2007, the company acquired Global Mid East FZE which was 100% subsidiary of
Godrej International Ltd. In April 208, the company acquired 100% stake in Kinky Group
Properties Ltd, South Africa which is one of the leaders in South African Hair Category. This
acquisition gives the company an opportunity to enter into a new line of business and
diversify their hair product portfolio. In May 2008, the company commenced commercial
production in their new Chemical and Soap Noodle Plant at Malanpur in Madhya Pradesh.
KEY CHALLENGES FOR GODREJ
Godrej needs to position their hair colour products. Unlike their other product lines
where it is not necessary to segment the market, the hair colour segment has various
different audiences and they cannot cater to all.
Consumers don’t trust Godrej hair colour products in the same manner they trust their
other products like Godrej locks, Godrej Fridge, Godrej cupboards etc.
Godrej concentrates more on their other product lines which are already doing very
well in the market. They need to focus on their other potential product like hair
Also they cater the same hair colour products both to the rural as well as the urban
Another main challenge which Godrej is facing is the fact that they are not able to
retain their customers. The case clearly states that consumers enter this segment by
using Godrej products but later shift to other products like L’Oreal.
Another challenge is that of the perception majority Indians have with regards to the
haircolouring. They still think that colouring their hair will lead to hair fall and other
In their advertisements, they concentrate more on how one looks not on how safe the
product is. Hair to any consumer is very sensitive and one will first think about how
safe is the product rather that how good they look.
Another problem in their advertisements is that it targets only the older generation.
They are missing out on one of the key main target audience, the millennial.
Godrej has still not started to cater to the Salon market. Many of the consumers who
colour their hair trust their stylist blindly.
THE CONSUMER INSIGHTS
Here we have taken into consideration the various responses of consumers both negative and
positive. We asked consumers what they think about the hair care sector and basis of that
qualitative survey we got the following consumer insights. (Age group 18-45, households,
Head got bulged & skin got rashes & skin
I like it because it is ammonia free,
Failure model / some of the chemical mixing
It leaves a nice black effect on my hair.
is not in proper
I found that the packs were not company
Godrej Expert Powder Hair Colour is Perfect
for my Hair
One packet didn’t have both the gloves and
Every company making products a bit
one had only one glove.
harmful to users in India
Consumer Relations, when called they don’t
It does not burn the scalp.
Am so disheartened that the company in
The natural colour/henna is very good and
which I have invested is so unconcerned, I
healthy for hair
feel that I have invested in wrong company
They want to mislead customers to think that
Smell of the powder is so natural and
the product is non-toxic and non-irritating.
I used this product just once in my life and
Godrej is a very good old brand and they
that too last year a day after my birthday
have a very good collection of colours and
when I saw a grey hair protruding outta my
the best part is the price for the sachet dey
have rs.10/- only
I realized was that my hair became dry by
the next day.
Neither it softens hair nor it adds shine to it
but one may have hair loss as its side-effect.
The consumer prefers salon treatments for hair colour especially in India and L’Oreal is
known for making the salon endorse their brand name. Certain salons use only L’Oreal
products and thus Godrej doesn't get a chance. The Indian consumer does not like the DIY
(do it yourself) treatments.Especially when it comes to hair and beauty.
India has a lot of people with different skin tones from fair to dark and thus a lot of different
shades of colour are required for hair colour. L’Oreal and other brands provide this and thus
people end up using these products especially in the urban sector. Godrej should follow the
same strategy in order to compete in the urban market.v some of the strategies suggested by
us are as follows:
1. Start with an entire new range of premium products.
2. Create a sub brand for this sector.
3. Providing essential features like a protective serum or a better
after care conditioning product.
4. Different products for rural and urban
5. More variety in hair colours.
6. Show consumers different uses of the product.
1. Different pricing policy for urban and rural markets.
2. Probably increasing the price of the product would have a
superiority value on the customers mind while buying the
product. Because the mindset of the customer is 'the more
expensive the better the quality, especially in this segment.
1. Tie ups with salons
2. One strategy Godrej could try is tie up with salons in different
areas to use their products.
3. Tie up with malls across cities.
1. A lot of beauty and hair training schools have a tie up with
brands like L’Oreal. Hence the hair experts’ end up using those
hair colours on their customers.
2. Different events in colleges, especially related to fashion.
3. Social media platforms like facebook, ttwitter, instagram, etc.
4. School Contests
5. Tie ups with Beauty Contests like Miss India, Miss Asia etc.
6. Training institutes of air hostess.
7. Joint / Tie up with F TV.
1. Middle age group 35-50
2. Younger generation 18-34
o Target Market
1. Youth and mid generation.
1. For better repositioning of the Godrej product it is essential to have a
better brand ambassador who the women look up to or want to look
like. This would attract more customers.
2. They could use brand ambassador like Parineeti Chopra for the youth
and Madhuri Dixit for the middle generation.
3. Godrej does well with the rural sector with the specific hair dye power
but to penetrate the urban sector major repositioning is required.
1. Price Differentiation: low price for rural market and high price for urban