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Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
Care&advance report
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  • 1. CORPORATE PROFILEHISTORY Pirojsha GodrejThe Company celebrated its centenary in 1997. In 1897 a young man named Ardeshir Godrejgave up law and turned to lock making. Ardeshir went on to make safes and security equipmentof the highest order, and then stunned the world by creating toilet soap from vegetable oil.His brother Pirojsha Godrej carried Ardeshirs dream forward, leading Godrej towards becominga vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling industrialgarden township (ISO 14001-certified) now called Pirojshanagar in the suburbs of Mumbai.Godrej touches the lives of millions of Indians every day. To them, it is a symbol of enduringideals in a changing world.IncorporationEstablished in 1897, the Company was incorporated with limited Liability on March 3, 1932,under the Indian Companies Act, 1913. Godrej Group is one of the largest conglomerates basedin Mumbai, 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 informationtechnology. Its products include Locks, access control systems, security systems and safes, 1|Page
  • 2. typewriters and word processors, rocket launchers, refrigerators and furniture, outsourcingservices, machine tools and process equipment, cosmetics and detergents, engineeringworkstations, medical diagnostics and aerospace equipment, edible oils and chemical, mosquitorepellents, car perfumes, chicken and agro-products, material handling equipment likeFORKLIFT trucks, stackers, tyre handlers, sweeping machines, access equipment etc. The Groupis headed by Adi Godrej and Jamshyd Godrej.Social Responsibility:Godrej has a philanthropic arm that has built schools, dispensaries and a residential complex fortheir employees. Trusts established by Godrej continue to invest in education, healthcare andupliftment of the underprivileged. It’s another branch in Ranchi at Pandra. Mr.B.Ganesh is theBranch Commercial Manager at Ranchi division.Operations:Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd. isheaded by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion infinancial year 06/07. Godrej Locks is the flagship company of the group.The Godrej group can be broadly divided into two major holding companies, workingindependently: Godrej Industries Ltd Godrej & Boyce Mfg. Co. Ltd. The Major Companies, subsidiaries and affiliates are:- Chemical & Commodities Godrej Industries Chemicals Veg Oils 2|Page
  • 3. FMCG Godrej Consumer Products Keyline Brands UK Rapidol South Africa Godrej Global Mideast FZE Godrej SCA Hygiene Limited Godrej Hershey Foods & Beverages LimitedNutrine Godrej Sara Lee AGRI Godrej Agrovet Animal Feeds Goldmohur Foods and Feeds Golden Feed Products Higashimaru Feed Products Oil Palm Agri Inputs Godrej Aadhaar Natures Basket Integrated Poultry Business Plant Biotech Services Godrej HiCare (Pest Management Services) Godrej Global Solutions (ITES) Godrej Properties 3|Page
  • 4. Corporate mission  We shall operate in existing & new businesses which capitalize on the Godrej brand & our corporate image of reliability and integrity.  Our objective is to delight our customers, both in India and Abroad.  We shall strive for excellence by nurturing, developing & empowering our employees & suppliers.  We shall encourage an open atmosphere conducive to learning & team work.  We shall achieve these objectives through continuous improvement in quality, cost & customer service.Corporate Shared Values  Commitment to quality  Dedication and commitment  Customer orientation  Honesty & integrity  Learning organization  Openness & transparency  Team work  Respect, care & concern for people  TrustCorporate Care  As we complete our first century and enter the next one, our vision shines on with brightness our founder intended- The concept of trusteeship of wealth.  Begun with a spontaneous donation of Rs.3 lac to the Tilak fund by Ardeshir Godrej, this initiation of philanthropy was strengthened by Pirojsha Godrej, who made it a corporate policy. 4|Page
  • 5.  Along with housing, schooling, medical aid & paid leave to workers, Pirojsha was also deeply concerned about environmental & social causes.  This vision continues to be the leading light in our lives/ Human ResourceWhat drives Godrej Industries Limited employees is the positive outlook towards work in anenvironment of change that encourages innovation and lateral thinking to harness new conceptsfor increasing maximum efficiency. The Godrej Industries employee is determined, ready tolearn and committed to meeting and raising the organizations standards of quality, bringing theorganisation to the very forefront of the global FMCG and beverage industry.Our employee is determined, loyal, committed and eager to learn and we provide this platformlike every other growing global entity. A complete teamwork is highly appreciated. EveryGodrej Industries employee works in harmony to reach higher goals and strive to take theorganization forward. Forming a team, whose sole purpose is to achieve its target under anycircumstances, a team that never compromises on quality and inner strength. The GodrejIndustries Limited Human Resource Department has initiated a metamorphosis within theorganization - a phase of change to compete and excel globally for future. HRD believes in thedynamics of change: if we always do what we had always done, we will always get what we 5|Page
  • 6. always got and we nurture a constant urge to achieve something beyond the expected.To implement this change, Godrej Industries Limited is working to increase efficiency whilereducing unnecessary costs and expenses. The HR has design a tailor-made HR roadmap, givinga new dimension to the HR systems and processes, leading the organization towards an effectivehuman engineering process. HRD works towards enhancing the effectiveness and the efficiencyof Godrej Industries Limited by enriching individual maps of reality, by supporting personalizedgrowth of the individuals, by improving team-spirit and inter-personal communication of theorganizations members.It not only believes in harnessing internal pools of knowledge but also provides its employees aplatform for knowledge integration with internal as well as external sources. The GodrejIndustries Limited human resources department has become an eventful place with a focustowards attraction, retention and development of talent, as it surges ahead to set higherperformance thresholds. Our HR motto states that - "We not only believe in blending Spirits intoFMCG but also blending Aspirations into Career.Selection of any employee depends on the need in any sector. For this the particular departmentof organization define the quality needed in employee and after this the HR department post thejob on different web sites, hire consultant or take placement from different colleges.Promotion of the employee depends on the capability of employees learning means if theemployee can have ability or eagerness to learn the work of other department beside his work hewill be promoted. Also after the experience and quality of work any employee is promoted.Training and Development is a part of any organization. Godrej Industries Limited believes inleveraging technology to help it gain a competitive edge in the market place. Godrej has beenone of the first companies in the FMCG / Chemical industry. So they organize training programtime to time. 6|Page
  • 7. PlanningHRP is understood as the process of forecasting an organization’s future demand for, and supplyof, the right type of people in the right number. It is only after this that the HRM department caninitiate the recruitment and selection process. HRP is a sub-system in the total organizationplanning. Organizational planning includes managerial activities that set the company’sobjectives for the future and determines the appropriate means for achieving those objectives. .anintegrated part of strategic management HRP is variously called strategic manpower planning, orfor employment planningPLANNING IN GODREJ  The costs of Human Resource planning are kept minimal as each plant/ profit centre has its own Personal Department which provides all the respective plant’s requirements. Each personal department comprises of four members.  The short term planning is conducted by each plant’s personal department with each team’s respective heads.  The Long term planning is performed by superiors of each deptt. In accordance with company’s interests and objectives. 7|Page
  • 8.  The internal detailed planning is planned by each team separately.  In this way, it is lesser time consuming, energy, economic and also effective. The decisions are agreed upon by most of the team members so they are more focused, clear, satisfied that even they have a say in the working and meeting the targets set.Godrej Consumer Products Ltd. (GCPL)The Consumer Products business was part of the erstwhile Godrej Soaps Limited (GSL) and wasdemerged into Godrej Consumer Products Limited in April 2001, pursuant to a scheme ofdemerger approved by the Hon’ble High Court of Judicature, Mumbai, dated March 14, 2001.AcquisitionsGCPL has an international presence through the acquisitions of Keyline Brands Limited (UnitedKingdom) in 2005, Rapidol (Pty) Limited in 2006, and Godrej Global Mid East FZE in 2007 andthe joint venture with SCA Hygiene Products AB, Sweden in 2007. GCPL acquired 49% stake inGodrej Sara Lee Limited (GSLL), an unlisted joint venture between the Godrej Group and SaraLee Corporation USA in early 2010. Subsequently in May 2010 it entered into an agreement toacquire the remaining 51% stake. It has acquired Megasari, a leading FMCG player in householdcare sector in Indonesia and has agreed to acquire Tura, a leading personal care player in Nigeria.Business CategoriesGCPL operates in the domestic and international markets in the ‘Personal and Household Care’segment. Some of the categories are soaps, hair colorants, toiletries and liquid detergents.Competition  In the soaps category, GCPL brands compete with ‘Lux’ and ‘Lifebuoy’- Hindustan Unilever Limited, ‘Nirma’.  In the hair colours category, its products compete for market share with ‘Black Rose’ ‘Super Vasmol’ and ‘L’Oreal’.  Competitors in shaving cream category are ‘Gillette’, ‘Palmolive’ and ‘Old Spice’.  GCPL’s talcum powder brands compete with ‘Ponds’- Hindustan Unilever and ‘Denim’.  In the liquid detergent category GCPL brands ‘Ezee’ and ‘Genteel’, compete with ‘Safewash- Wipro’ and ‘Surf Excel- Hindustan Unilever Limited’. 8|Page
  • 9. Manufacturing FacilitiesGCPL currently operates five manufacturing facilities in India at Malanpur (Madhya Pradesh),Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha (Himachal Pradesh) andSikkim. Further, its manufacturing facilities located abroad at South Africa produce a range ofpersonal care products and hair colour products.Market Mapping:Sales & Distribution networkGCPL has a widespread distribution network across India. It has a presence in both the urban andrural markets, enabling it to benefit from the opportunities in both segments. It has a sales teamwhich comprise of over 250 staff spread across the country. It has a network of 33 C&F agentsand as on February 29, 2008. It had 1,273 distributors, 142 super stockists and 3,175 substockists to support the sales team in India. Its distributors and sub stockists cover around650,000 retailers in India. GCPL has linked its major distributors in India through a systemcalled ‘Sampark’, a collaborative planning, forecasting and replenishment system with its ERPsystem leading to reduced inventory levels.Research and Product DevelopmentThe research and development activities broadly comprise of various processes for developingnew products, standardising new analytical methods and identifying substitutes for key rawmaterials. Through this research and development centre, GCPL continuously interact withconsumers to obtain feedback on its products and information obtained is leveraged tocomplement new product development activities. The Godrej Research & Development Centre isrecognised by the Department of Science and Technology, New Delhi.Size of the CompanyAs of November 30, 2007, it employed over 1,349 full-time employees.GCPL is present in 3 segments namely soaps, household insecticides & hair colours. In each ofthese segments the company is a market leader or at No. 2 position. The company has beencontinuously investing behind its brands to gain ground over competition & have created superbrands over the decade. The company’s 3x3strategy (presence in3continents and 3 categories)shows its clear focus to attend to its strengths rather than diversify into the unknown.Cross synergies from continents will enable growth across geographies & segments & helpthe company achieve its target of 20%+ top line grow for next 3-4 years. 9|Page
  • 10. 1) Growth Drivers a. Cross synergies of distribution network in standalone business with the amalgamation of Sara Lee operations. b. With a penetration of 25-30% in rural India the company has scope to increase penetration in rural India for household insecticides. c. Growth returning to hair colour segment in India by leveraging on crème based sachet technology from Latin America business. d. The structural change in demand from unorganized to organized in soaps segment in rural India to support volume growth. e. Africa, the largest contributor to consolidated revenues to see inorganic growth from full year consolidation of Darling Group, while organic business growth of is expected at 15%+. The company is expected to launch of insecticides in late FY13 early FY14 in the African continent. f. Latam business to grow on the back of increased penetration through geographical diversification, product innovation, & consolidation of Chilean acquisition. g. Asia (ex-India) (i.e. Indonesia) business to grow on the back of disruptive launch of Magic paper which is eating into the coil market. h. Cross launches across geographies to yield growth. The company plans to launch Stella (air care brand) from Indonesian operations in India and launch insecticides in Africa.2) Profitability Drivers a. Premium across hair colour segment. b. Increasing share of vaporizer & aerosols to improve pricing power. c. Conscious effort to acquire companies with better operating profit margins than standalone business to prop up profitability. d. With the acquisition of fully integrated Darling group in Africa to enable in-house sourcing for Kinky and improve margins in that geography. e. Chilean acquisition at 20%+ margins to improve margins in Latam business.3) Increased distribution, product innovation and brand investment to support growth.4) Synergistic benefits from global operations to auger well for the company.5) Temasek Investment helping to lower debt levels. Debt to net worth ratio to come down to 0.6 by FY13. 10 | P a g e
  • 11. Standalone Household Insecticides–Building MuscleGCPL’s household insecticides business is one of the fastest growing as well as profitablebusiness segment. This segment was part of erstwhile JV Godrej Sara Lee. GCPL bought outSara lee’s 51% stake in May of 2010 for`1050 crs. Following this the company became a fullyowned subsidiary of GCPL and was renamed Godrej Household Products. With affect fromApril 2010, GHPL was amalgamated with the parent company. When acquired GHPL owned 5brands – HIT, GoodKnight, Ambi Pur, Kiwi, & Brylcream. In due course Sara lee sold globalrights for Ambi Pur, Kiwi & Brylcream for which GCPL had a 2 year license right expiring in2012. Sara lee exited these business in a bid to exit is household care business globallyand concentrate on its core business of foods & beverages.The insecticide business contains of 3 main brands– Good Knight & Jet, the mosquitorepellent brand & HIT, its aerosol segment catering to all types of pest. Mosquito repellentsaccounts for ~ 56-57% of this segments revenue and is growing at a CAGR of 25%+ overthe last 2-3 years. HIT, which accounts for the remaining has been growing at 23%+. Thissegment continued its strong growth trajectory on the back of synergist benefits arising onaccount of amalgamation of distribution network as well as new launches. 11 | P a g e
  • 12. Estimated at ~` 3000 crs., the domestic household insecticide market is growing at ~12-15% p.a. Coils account for 50% of the market, liquid vaporizers and mats, aerosols,creams etc. equally account for the balance. Current penetration for insecticides in the urbanmarket is at 75% and 25% in rural India.Godrej Sara Lee, a pioneer in creating and developing the home pesticide market in India, hasstrong brands like Goodknight, Jet, Banish, and Hit which makes it the industry leader. Hit facescompetition from Baygon brand from Bayer. Baygon is not as aggressive a marketer as Hit.Most of the marketing action takes place in the repellent segment where there is warbetween brand like Good Knight , Mortien, All Out etc. HIT is the market leader in its segment. Over the years GoodKnight has evolved from mats to all main formats of repellents. It is growing market share vs. its No. 1 competitor SC Johnson’s brand All Out in the liquid vaporizer segment. This segment is growing faster than the market as people switch from coils to electrical formats. Good Knight has a 39.4% MAT market share in liquid vaporizers vs. 45% for All Out, according to AC Nielsen July 2011 data. The July 2011 monthly data showed the momentum sales for GoodKnight, with it beating the market share ofSC Johnson for the first time with a little over 43% market share vs. All Out share at42%. Since then the quarterly figures for growth are testimony to it gaining further market share. 12 | P a g e
  • 13. Regional JewelApart from GoodKnight, Godrej is present in this segment through its regional brand JET.With more than 80% Market Shares in coil in Andhra Pradesh, JET Brand has continued itsdominance in Andhra Pradesh market and shows a strong consumer choice for Mats, Refillsand Other Household Products Formats.Killers vs. RepellentsThe home pesticide market can be divided into two segments: one that is used as repellents likecream, coil, lotion, liquidator etc., which don’t kill the insects and secondly the othercategory is the Insect Killers which consists of aerosols, chalks, poison etc. Hit belongs to theinsect killer category.In the household insecticides category, the company is working towards developing a loweredpriced product to cater to the bottom of the pyramid consumer. GCPL believe this willhelp drive volumes. In the household insecticides category, the company is working towardsdeveloping a lowered priced product to cater to the bottom of the pyramid consumer.They believe this will help drive volumes.GCPL expect this segment to grow on the back of:  Switch from coils to liquid vaporizers where the company is gaining market share.  Synergistic benefits arising from merger of distribution channels of GSL & GCPL.  Cross launch of its disruptive innovation of HIT magic paper from Indonesia in India.  Rural market growth to continue as penetration is as low as 25-30%. 13 | P a g e
  • 14. International Household Insecticides Business –Growing on the back of innovationAlongside GSL’s amalgamation the company acquired PT. Megasari Makur in May 2010 inIndonesia. This is household care company with ~72% of its revenues coming from the top 3brand HIT, Stella & Mitu. GCPL found a strategic fit for its 3x3 strategy through thisacquisition. Indonesia is the 4th largest insecticide market among emerging economies. With thisacquisition GCPL has become the 2nd largest Household insecticide player in Asia (ex-Japan).Megasari is present in the fastest growing aerosols & vaporizer segments. It has 35% marketshare in the insecticide market. Baygon is No.1 competitor in Indonesia. Megasari, whenacquired had no presence in the coil segment which is still a large segment of the Indonesianmarket. Recently the company launched HIT magic paper, a disruptive innovation and hasalready taken 10% of the coil market share.GCPL expect the disruptive launch coupled with increasing penetration(currentpenetration~30-40%) to enable this segment to clock 17%+ growth for the next 2-3 years. 14 | P a g e
  • 15. CONSOLIDATED HOME CARE = Household Insecticides + Air Care +Baby wipes + Liquid detergentsHome care segment includes household insecticides, air care brand Stella, and baby wipes brandMitu & liquid detergents Ezee & Genteel. Currently home care account for ~48% of totalconsolidated revenues. Liquid detergents, is the dark horse in this segment. GCPL expect thissegment to grow at 20% CAGR over the next 2-3 years on the back of its acquisition ofGenteel brand and synergistic benefits from sharing of distribution channel. They like the nichepresence on the company in this segment with ~70% market share and expect this segment togrow in importance over the next 4-5 years. Apart from household insecticides in PT Megasari’s23% revenues come from Stella & Mitu. In both the segments the company is market leader.They expect the 51% remaining segment of PT megasari’s business model to grow at 14-15 %(currently growing at 25 %+). The management is intending to launch Stella brand in Indiacreating a new segment in standalone operations. They are skeptical of this move as they believethis segment is yet to be recognized by the Indian consumer and hence any growth coming infrom here is a positive over our projections. They expect the existing home care segment to growat 18%+ for the next 2-3 year. 15 | P a g e
  • 16. Opportunities for growth in this segment:  Megasari’s insecticide segment growth to ride on the back of launch of HIT Magic paper.  The company plans to launch household insecticides in the African continent in the end of next fiscal. The company plans to leverage on the distribution network of its latest African acquisition of Darling group which has presence in 14 sub Saharan countries for the same.  Growth in the liquid detergent segment on the back of increased distribution.  Standalone insecticide to grow on the back of increasing penetration in rural India.  Cross launch of Stella (Air Care brand from Indonesian operations) in India.Hair Care–Colouring the greys of India:GCPL is present in the hair care segment through hair colour, hair styling sprays,shampoos & hair extensions. In the standalone operations the GCPL is present in the hair coloursegment where it currently has 29% market share. The company has evolved from a hair dyeplayer to a hair colour player.The 4 main SKU’s in this segment are:  GodrejExpert– Godrej Powder Hair Dye is the flagship brand of Godrej Consumer Products. Godrej Liquid Hair Dye was launched in the 1970s. Used in those days with some degree of hesitation, it did become a category leader and laid the foundation for the market-to-come. In keeping with market developments, Godrej added to its 16 | P a g e
  • 17. portfolio in 1981 by developing and launching a hair dye in powder form. Following the extraordinary success of the sachet format Godrej moved to the next level of convenience by offering a shampoo based permanent hair dye-cum conditioner. The New Godrej Expert range is now available in three Colour + Benefits variants- Original, Care and Advanced. Godrej Expert Original trusted by over 4 crore consumers, priced at Rs.12 per sachet. Godrej Expert Care is a herbal-based formulation with heena and amla. At Rs.15 per sachet, the Godrej Expert Care range is available in three shades–Gentle Black, Natural Brown and Burgundy. Godrej Expert Advanced is a Pro-Gel formula with a gel like consistency which does not drip and is easy to spread. Priced at Rs.15 per sachet, the Godrej Expert Advanced range is available in three shades– Gentle Black, Natural Brown and Burgundy  Renew–Godrej Renew was launched in 2002-2003 as a hair colour cream. This is the first time that the hair care division of Godrej Consumer Products Ltd was coming up with a cream-based formulation for hair colours. When launched the pricing for 50ml priced at Rs.65 (after a price discount of Rs.15) and the new 20ml pack priced at Rs.35 (after a price discount of Rs.5). Current prices for the same SKU have moved up from Rs.100 & Rs.50 respectively. In Dec of 2007 the company launched powder based Godrej Renew Powder Hair Colour.  Colour Soft–This brand was launched in the June of 1998 as a premium hair colour brand against L’Oreal. Introductory price was Rs.95 per 40 ml to current price at Rs.110 for 40 ml.  Nupur- Launched in 2002-03 in the unbranded mehndi market. The company has renewed focus on this segment on an herbal platform.The share of hair care in the standalone top line has come down after the amalgamation of GHPLin May 2010. 17 | P a g e
  • 18. 50% of the hair colour industry by value is hair powder based while the rest is equallydivided between oil based (permanent) and crème based colours. In volume terms 70%+market is still powder based hair colour. The industry dynamics are changing to more ofpremiumisation of product. Also while in Tier II & Tier 111 cities penetration is growing on theback of salon platform, & in Tier I cities through the home use platform.The main concern in this segment has been the increasing competition. From 35% market sharein 2008 GCPL has lost ground to 29.4% in FY11. The company has since re-launched itsmain brand Godrej expert and launched a new advertisement campaign. The company’sstrategy to grow this business is as follows:  The company plans to leverage on its popular brand Godrej Expert to drive growth through penetration.  Secondly the company plans to bit into the unorganized hair mehndi market through its brand Nupur, which is a niche play on the herbal platform.  Focus on premiumisation through its brand Colour Soft.  Increase presence in salon distribution channel.  In Q4FY12 the company has launched an ad campaign for its flagship brand Godrej Expert. On a consolidated basis apart from hair colour in India, GCPL has presence in the international hair care market through its acquisitions in Latin America & Africa. 18 | P a g e
  • 19. Financials:Key Ratios Years Mar-11 Mar-10 Mar-09 Mar-08 Mar-07 Debt-Equity Ratio 0.1 0.1 0.3 1.0 0.6 Long Term Debt-Equity Ratio 0.1 0.0 0.3 0.9 0.5 Current Ratio 1.4 1.7 1.5 0.9 0.8 Fixed Assets 2.9 4.8 4.3 3.6 4.0 Inventory 10.4 8.8 7.8 6.5 7.8 Debtors 36.3 60.3 102.7 83.5 97.6 Interest Cover Ratio 62.2 82.7 22.1 17.3 20.0 PBIDTM (%) 22.9 24.5 18.5 21.3 20.7 PBITM (%) 22.0 23.4 17.2 19.6 19.1 PBDTM (%) 22.6 24.2 17.7 20.1 19.7 CPM (%) 18.4 20.2 15.6 17.8 18.2 APATM (%) 17.6 19.2 14.3 16.1 16.6 ROCE (%) 41.3 42.1 44.2 71.0 99.8 RONW (%) 36.8 36.4 47.0 113.3 141.3 PE 29.4 35.5 23.7 21.2 27.8 EBIDTA 567.7 316.6 209.1 195.3 164.6 Dividend Yield 1.4 1.6 3.0 2.9 2.6 PBV 7.7 9.7 6.4 18.6 30.0 EPS 12.4 7.4 5.6 5.9 5.3 Rs. croreTurnover (net) FY 2010-11 FY 2009-10 Growth (%)Soaps 795.9 828.4 (4%)Hair Colour & Toiletries 388.2 357.7 9%Repellents & Others 1102.7Liquid Detergents 64.4 53.3 21%By-products 44.0 28.5 54%Total 2395.2 1267.9 89%Interpretation: 1. The company’s current ratio is within the rule of thumb, i.e. 2:1, which means that the company’s liquidity position is quite satisfactory. The company’s current assets are sufficient to pay off its current liabilities. 2. As a convention, 1:1 liquid ratio is considered satisfactory. According to this convention, the company has satisfactory liquidity position. It was close to rule of thumb. The overall 19 | P a g e
  • 20. liquidity position is sufficient.3. Net profit ratio has increased over the years. It is due to cost savings on material consumption, which is quite satisfactory for the company.4. ROI is of great importance as it depicts how much the company has accomplished its objective of maximizing its earnings. As this ratio reveals how well the resources of a firm are being used, higher the ratio, better are the results. The company’s ROI is increasing over the years which indicate a favorable profitability position.5. As the return on the equity capital is increasing, so the EPS is increasing over the years and it shows increase in the earning capacity of the company.6. Fixed assets turnover is the relationship b/w COGS and fixed assets employed in the business. The increase in this ratio over the years shows increase in the efficiency of the company in using its capital resources.7. Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the requirements of the business, and in case of Godrej, the inventory turnover ratio holds utmost importance. Closely associated with it is the inventory conversion period, which is imperative to know the average time, taken for clearing the stocks.8. In case of Godrej, inventory conversion period is very high in all the five years, which means that the company is not able to clear its stock in time. However, after 2007, this ratio is showing a declining trend.9. EPS 14 12 10 8 6 4 2 0 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 20 | P a g e
  • 21. SWOT Analysis Market P/E P/BV EV/EBIDTA ROE ROCE D/E Cap (TTM) (TTM)Company (Rs. in (x) (x) (x) (%) (%) (x) Cr.)Godrej Consumer 19,199.73 41.7 7.61 21.17 36.8 41.3 0.12Dabur India 18,482.39 40.48 14.2 27.35 38.5 37.6 0Marico 10,875.94 32.33 6.7 20.97 37 28.5 0.64Emami 7,413.70 27.22 9.05 20.47 34.9 31.6 0.38Bajaj Corp 1,798.76 14.98 4.2 13.05 47 59.1 0Parikh Herbals 495.25 0 55.52 0 0.2 0.3 0Amar Remedies 373.7 8.31 1.74 5.43 19.3 20.3 0.82JHS Sven. Lab. 59.32 0 0.6 8.35 8.1 9.5 0.6Birla Pacific 55.62 0 0.52 0 0 0 0J L Morison(I) 55.49 0 0.78 18.18 0 1.9 0.21MFL India 34.26 63.4 1.05 4.18 2.6 9.8 0.44GKB Ophthalmic 14.79 8.65 0.81 7.9 0.2 8.3 0.55Paramount Cosmet 7.29 5 0.36 5.12 3.9 8.2 0.56Enjayes Natural 7.28 0 2.1 0 0 0 0.74Ador Multi Prod. 4.55 116.33 0.88 8.27 4.8 6.9 0.05 Strength Weakness Good corporate image Ineffective promotional tools Experience in the line Weak branding Qualitative products Inappropriate variants of products Opportunities Threat Innovation in the product line Competitors grab on the market Attractive distribution schemes Competitors expansion in the market at a faster pace 21 | P a g e
  • 22. PROJECT INTRODUCTIONIt is a thing of massive gratification for me to present This Summer Training Project Report onthe topic “Visibility & Distribution of Godrej Expert ADVANCE & CARE”. Hair Dyes are haircare products which are of daily usage and means different to different kinds of consumer. Therise and recent competition have dramatically enhanced the capabilities of the customers.Leveraging the power of these new capabilities, various distribution networks are workingtogether to improve the visibility & distribution of the above two dyes. Every distributor islooking for the next “killer application,” yet we are still learning about retailers’/people’sinformation and Daily needs.By this practical training I am able to equip the manager with the understanding, the thinking, theknowledge, and the skills for todays and also for tomorrow’s market exigency. Initially I was justhaving the bookish knowledge about all Marketing policies, practices and functions, but afterjoining this organization, I got most of the practical knowledge. I have come to know, whatactually happens in the organizations. How actually a FMCG product finally reaches all of us.Though it is not possible to have the information of all the spheres in market, in such a very shortperiod, but I tried to get more and more about all functions and practices applied in practicalworking. This project report has been painstakingly and thoroughly prepared to coverextensively various facets – both micro as well as macro. Its coverage is broad and up to date andit is balanced in terms of concept and application. Since customers are the most important assetof any organization, there is increased emphasis on the need for understanding people in amanner to satisfy them through quality of services. The language of the presentation is highlycommunicative so that it becomes interesting and comprehensible. 22 | P a g e
  • 23. Concept of marketing researchMarketing research is the systematic gathering, recording, and analysis of data about issuesrelating to marketing products and services. The term is commonly interchanged with marketresearch; however, expert practitioners may wish to draw a distinction, in that market research isconcerned specifically with markets, while marketing research is concerned specifically aboutmarketing processes.Role of marketing researchThe task of marketing research is to provide management with relevant, accurate, reliable, valid,and current information. Competitive marketing environment and the ever-increasing costsattributed to poor decision making require that marketing research provide sound information.Sound decisions are not based on gut feeling, intuition, or even pure judgment.Marketing managers make numerous strategic and tactical decisions in the process of identifyingand satisfying customer needs. They make decisions about potential opportunities, target marketselection, market segmentation, planning and implementing marketing programs, marketingperformance, and control. These decisions are complicated by interactions between thecontrollable marketing variables of product, pricing, promotion, and distribution. Furthercomplications are added by uncontrollable environmental factors such as general economicconditions, technology, public policies and laws, political environment, competition, and socialand cultural changes. Another factor in this mix is the complexity of consumers. Marketingresearch helps the marketing manager link the marketing variables with the environment and theconsumers. It helps remove some of the uncertainty by providing relevant information about themarketing variables, environment, and consumers. In the absence of relevant information,consumers response to marketing programs cannot be predicted reliably or accurately. On-goingmarketing research programs provide information on controllable and non-controllable factors 23 | P a g e
  • 24. and consumers; this information enhances the effectiveness of decisions made by marketingmanagers.The role of marketing research in managerial decision making is explained further using theframework of the "DECIDE" model:D Define the marketing problemE Enumerate the controllable and uncontrollable decision factorsC Collect relevant informationI Identify the best alternativeD Develop and implement a marketing planE Evaluate the decision and the decision process 24 | P a g e
  • 25. OBJECTIVE  Need of studyGCPL is a big brand name but the emergence of other market players (L’OREAL, Cavinkare andthe like) in the Hair Dye industry, has set a big benchmark and has also affected Godrej’s marketposition adversely. The company has launched two new dyes under its product line GodrejExpert i.e. Godrej Expert Advance and Godrej Expert Care. The company has not been able tomake a huge success in these two dyes despite its extensive promotional campaigns and vastdistribution network in the field. Customers are the lifeblood of every business and its successlargely depends on how it satisfies its customers. Customer purchase preferences are affected bya number of reasons. In addition to this, Location convenience and Retailer relationship is one ofthe most consideration followed by the Distributor’s Schemes and Variety, in building a gooddistribution and visibility strategy. Both these concepts have been taken into consideration tostudy the factors affecting the customer purchase preference and also the retailers’ perspective todeal with a particular Hair Dye brand.Thus this study is aimed to provide the management with some knowledge about its status inmarket both in terms of visibility and distribution for Godrej Expert Advance and Godrej ExpertCare. The research also aims to provide some ideas to improve the availability & distribution ofCare & Advance in the market. 25 | P a g e
  • 26.  Research objectives  To identify the factors which have a bearing on visibility of Godrej Care & Advance hair dyes towards consumers. Consumer  To understand the customers’ outlook towards Godrej Care & Advance Survey  To evaluate the retailer’s motive behind dealing in a particular brand. Dealer  To study the retailers’ views about Godrej Care & Advance. Survey (a) To identify which among them is more saleable and which is less saleable (b) To identify reasons for availability for Godrej Care & Advance. (c) To know the satisfaction level of retailers for Godrej Care & Advance. (d) To know how distribution can be improved for Godrej Care & Advance. (e) Necessary steps to improve their present position. 26 | P a g e
  • 27. METHODOLGYSources of dataThere are two main sources of data - primary and secondary.PRIMARY RESEARCH is conducted from scratch. It is original and collected to solve theproblem in hand. SECONDARY RESEARCH already exists since it has been collected forother purposes. It is conducted on data published previously and usually by someone else.Secondary research costs far less than primary research, but seldom comes in a form that exactlymeets the needs of the researcher.  This research involves both primary and secondary sources of data collection.  The primary information has been collected from Retailer/Wholesalers and consumers in the form of Schedules.  The secondary information was gathered from AC Nielsen Report and Company Website.Research DesignA research design is the arrangement of conditions for collection and analysis of data in amanner that aims to combine relevance to the research purpose with economy in procedure. Infact, the research design is the conceptual structure within which research is conducted; itconstitutes the blueprint for the collection, measurement and analysis of data. One may split theoverall research design into following parts: a) the sampling design which deals with the method of selecting items to be observed for the given study; b) the observational design which relates to the condition under which the observations are to be made; c) the statistical design which concerns with the question of how many items are to be observed and how the information and the data gathered are to be analysed 27 | P a g e
  • 28. d) The operational design which deals with the techniques by which the procedure specified in the sampling, statistical and observational design can be carried out. e) The research design for this project is descriptive.Research InstrumentThe primary data was obtained during the course of doing research in a systematic manner withthe help of SCHEDULES.This method of data collection is very much like the collection of data through questionnaire, withlittle difference which lies in the fact that schedules (proforma containing a set of questions) arebeing filled in by the enumerator. These enumerators along with schedules go to respondents, putto them the questions from the proforma in the order the questions are listed and record the repliesin the space meant for the same in the proforma. In certain situations, schedules may be handedover to respondents and enumerators may help them in recording their answers to variousquestions in the said schedules. Enumerators explain the aims and objects of the investigation andalso remove the difficulties which any respondent may feel in understanding the implications of aparticular question or the definition or concept of difficult terms. This method of data collection isvery useful in extensive enquiries and can lead to fairly reliable results.In this study, each Retailer/Wholesaler and Consumer was asked the questions written in the schedule.Everything was explained to them if in case they didn’t understand something and thus their responseswere noted down.Sampling DesignA sample design is a definite plan for obtaining a sample from a given population. It refers to thetechnique or procedure the researcher would adopt in selecting items for the sample. 28 | P a g e
  • 29. Sample design may as well lay down the items to be included in the sample i.e., the size of thesample. Sample design is designed before data are collected. There are many sample designsfrom which a researcher can choose. Some designs are relatively more precise and easier toapply than others.PopulationPopulation refers to part of universe from which the sample for conducting the research isselected. Universe and population can be same in some researches. It may be finite or infinite. Infinite universe the number of items is certain, but in case of infinite the number of item is infinitei.e., we cannot have an idea about the total number of items.The population for this study is finite i.e. all Retailers/Wholesalers/Departmental Stores andconsumers in Kolkata.Sampling UnitSampling unit refers to smallest possible individual eligible respondent. In this study thesampling unit is (a) Any FMCG Retailer/Wholesaler/Departmental Store, and (b) Any Hair Dye user in Kolkata.Sampling SizeThis refers to the total number of respondents selected from the universe to constitute a sample.The size of the sample should neither be excessively large, nor too small. It should be optimum.An optimum sample is one which fulfils the requirement of efficiency, representative ness,reliability and flexibility. The sample size for this research is 25 in case of Retailers and 50 incase of customers. 29 | P a g e
  • 30. Sampling FrameFrame is the list of respondents i.e., list of all Retailers/Wholesalers/Departmental Stores andcustomers in Kolkata.Sampling TechniquesIn this research study, non-probability convenience sampling is opted. Convenience sampling isdone purely on the basis of convenience or accessibility. This sampling method has been mainlychosen because of time, lack of retailers’ knowledge and lack of expertise. 30 | P a g e
  • 31. DATA ANALYSIS AND INTERPRETATION (A) Retailer survey 1) Brands represented by Retailers Brands Total GODREJ CONSUMER PRODS 12 LOREAL INDIA 10 BLACK ROSE 6 CAVINKARE 8 OTHERS 15 16 14 12 No. Of Retailers 10 8 6 4 2 0 GODREJ LOREAL INDIA BLACK ROSE CAVINKARE OTHERS CONSUMER Brands PRODSAnalysis & interpretation:-Out of the 25 respondents most of them were dealing with other hair care brands likeHYGIENIC RESEARCH INSTITUTES super vasmol & streax, MAYURI HERBALPRODUCTS, BABURAM OMPRAKASH etc. Now this is followed by GODREJ as highestthen LOREAL as 2nd highest. The data clearly interprets that GODREJ has a good presence inthe market as compared to other hair care brands. 2) Products represented by Retailers Products Total Shampoos 5 Conditioners 0 Hair Dyes 8 Soap 2 All 20 31 | P a g e
  • 32. 25 20 No. of Retailers 15 10 5 0 Shampoos Conditioners Hair Dyes Soap All ProductsAnalysis & interpretation:-Most of the retailers were dealing in all the four Hair Care Products, i.e. Shampoos,Conditioners, Hair Dyes and Soaps and there are very few retailers (2 or 5) who are keepingSoap and Shampoos alone. 3) Dealership with Godrej Hair Dyes Particulars No. of respondents Percentage Still dealing 18 72 Dealt in the past 5 20 Never dealt 2 8 Total 25 100 Still dealing Dealt in the past Never dealt 8% 20% 72%Analysis & interpretation:-Out of the 25 retailers, 18 retailers are dealing in Godrej Hair Dyes, whereas very few of theretailers have either quitted or have never dealt with it. Godrej is having a huge retail network(including wholesalers), which might be one of the factors for its increasing presence in the 32 | P a g e
  • 33. market. 4) Factors considered while dealing with a brand Particulars Total Customer choice 48 Brand image 70 Package 69 Schemes 122 Trade margins 172 Chemical Composition 215 Variety 130 Discount 159 Company’s incentives 140 250 200 Total Rank Awarded 150 100 50 0 FactorsAnalysis & interpretation:-The most important factor which retailers consider while dealing with a particular hair care brandis customer choice, closely followed by brand image and packaging whereas the least importantfactor is chemical composition. The data clearly interprets that customer holds great importancefor any industry or dealer. 33 | P a g e
  • 34. 5) Factors which influence retailers to do more sales Particulars Total Range of variety & color 18 Commission offered 1 Attractive schemes 8 Advertising support during new product launches 1 Timely information by retailers 3 Salesmen helping to get stock urgently 6 Settlement of distributers’ schemes in time 1 Senior manager support 0 20 18 No. of Retailers 16 14 12 10 8 6 4 2 0 Range of Commission Attractive Advertising Timely Salesmen Settlement Senior variety & offered schemes support information helping to of manager colour during new by retailers get stock distributers’ support product urgently schemes in launches time FactorsAnalysis & interpretation:-The range of variety and colour is the most important factor which influences retailers to domore sales. Attractive Schemes are also having influence, but distributers / salesmen need towork upon them to push more into the market. 34 | P a g e
  • 35. 6) Extra benefits given on bulk sales Particulars Total Commission 7 Rebate 4 Club membership 0 Family trip 1 Retailers’ promotion on company’s brochure 4 None 12 Any other 0 14 12 No. of Retailers 10 8 6 4 2 0 Commission Rebate Club Family trip Retailers’ None Any other membership promotion on company’s brochure FactorsAnalysis & interpretation:-Majority of the retailers do not get any extra benefit when they secure a large order, but a fewretailers do get commission and rebate on bulk sales.It can be interpreted that retailers do not give much importance to the extra benefits that they aregetting from a particular company. For them it is imperative that the product satisfies thecustomers or has a good demand in the market. 35 | P a g e
  • 36. 7) Godrej Products dealt by retailers Particulars No. of respondents Percentage Shampoos 0 0 Conditioners 0 0 Hair Dyes 12 26 Soap 4 9 All 30 65 Total 46 100 Shampoos Conditioners Hair Dyes Soap All 26% 9% 65%Analysis & interpretation:-65% of the retailers still dealing with Godrej are having all its hair care products. Second most isthe Hair Dye section which constitutes the major section. 8) Rank of different Godrej products according to sales.(1- max sales, 4- least) Particulars Total Rank Godrej expert pwd natural blck 6 1 Godrej exprt pwdr hr clr care 21 4 Godrej expt pwdr hr clr advncd 18 3 Godrej kali mehendi 14 2 14 6 Godrej expert pwd natural blck 21 Godrej exprt pwdr hr clr care 18 Godrej expt pwdr hr clr advncd Godrej kali mehendi 36 | P a g e
  • 37. Analysis & interpretation:-In Godrej Hair Dyes, Godrej expert pwd natural blck is the most saleable item, followed byGodrej kali mehendi and Godrej expt pwdr hr clr advanced, whereas Godrej exprt pwdr hr clrcare is the least. 9) Reasons for low sales of the least saleable item Particulars Total Poor quality 1 Unawareness 3 People prefer foreign brands 2 Poor sales services 1 Competitors 3 Other reasons 1 3.5 3 2.5 No. Of Retailers 2 1.5 1 0.5 0 Poor quality Unawareness People prefer Poor sales Competitors Other reasons foreign brands services ReasonsAnalysis & interpretation:-Extreme Competition and unawareness are the major factors for low sales of Godrej exprt pwdrhr clr care. Many retailers don’t keep Godrej exprt pwdr hr clr care because it has shown adecline in demand as compared to other hair dye products in herbal section , and because it haslimited reach and push strategy is not properly followed by the distributors, people are generallynot aware this product. Consumers are still confused with the colour of the Godrej exprt pwdr hrclr care which is actually green on application but black after application. Godrej expt pwdr hrclr advncd is still having some activities from the co. itself so it is having a good demand in themarket. 37 | P a g e
  • 38. 10) Market status of Godrej Expt Pwdr Hr Clr Advncd Movement Total Very Fast Moving 8 Average Moving 15 Less Moving 2 No Demand 0 8% 32% Very Fast Moving Average Moving 60% Less Moving No DemandAnalysis & interpretation:-Out of the 25 retailers surveyed most of them said Godrej Expt Pwdr Hr Clr Advncd to beaverage moving hair dye. Due to its Gel properties and demand from consumers it is fastmoving. Distributers also promote Godrej Expt Pwdr Hr Clr Advncd with various schemes. 11) Market status of Godrej Expt Pwdr Hr Clr Care Movement Total Very Fast Moving 1 Average Moving 2 Less Moving 17 No Demand 5 4% 8% 20% Very Fast Moving Average Moving Less Moving 68% No DemandAnalysis & interpretation:-Out of the 25 retailers surveyed most of them said Godrej Expt Pwdr Hr Clr Care to be leastmoving hair dye. Due to its herbal properties it had different set of consumers, but very soon itgot outperformed by competition from CAVINKARE INDICA. 38 | P a g e
  • 39. Distributers tried pushing Godrej Expt Pwdr Hr Clr Care with various schemes, but demand stillis almost null. 12) Display of above 2 Godrej Hair dye( Advance & Care) Particulars No. of respondents Percentage Centre 0 0 Corners 12 63 At the back of other products 7 37 Total 19 100 Centre Corners At the back of other products 37% 63%Analysis & interpretation:-63% of the retailers have displayed Godrej Hair Dyes at the corners and 33% have displayedthem at the back of other brands. Due to complexity of the new hangers retailers prefer them tobe on the corners. For centre position they have kept other GARNIER & CAVINKAREproducts. This interprets that retailers prefer other brands over Godrej. 13) Satisfaction with regard to company’s offered services Level Total Highly Satisfied 0 Satisfied 6 Neutral 3 Dissatisfied 2 Highly Dissatisfied 0 18% Highly Satisfied Satisfied 27% 55% Neutral Dissatisfied Highly Dissatisfied 39 | P a g e
  • 40. Analysis & interpretation:-The response of the retailers is close to satisfaction level with regard to Godrej’s offered services 14) Satisfaction of dealers with regard to Godrej’s promptness in launching new products Level Total Highly Satisfied 0 Satisfied 0 Neutral 4 Dissatisfied 8 Highly Dissatisfied 0 33% Highly Satisfied Satisfied Neutral 67% Dissatisfied Highly DissatisfiedAnalysis & interpretation:-The chart clearly depicts that most of the retailers do not agree that Godrej is prompt andproactive in launching new and innovative products. 15) Retailers’ satisfaction with regard to promotional tools Level Total Highly Satisfied 0 Satisfied 4 Neutral 1 Dissatisfied 1 Highly Dissatisfied 0 17% Highly Satisfied 16% Satisfied Neutral 67% Dissatisfied Highly Dissatisfied 40 | P a g e
  • 41. Analysis & interpretation:-The collected data and the bar graph denote that the company undertakes attractive promotionaltools to launch its product. 16) Retailers’ views to continue their dealings with Godrej Expt Pwdr Hr Clr Advncd Particulars No. of respondents Percentage Yes 19 86 No 3 14 Total 22 100 14% Yes No 86%Analysis & interpretation:-86% of the retailers will continue to deal with Godrej Expt Pwdr Hr Clr Advncd 17) Retailers’ views to continue their dealings with Godrej Expt Pwdr Hr Clr Care Particulars No. of respondents Percentage Yes 4 21 No 15 79 Total 19 100 21% Yes 79% NoAnalysis & interpretation:-79% of the retailers will not continue to deal with Godrej Expt Pwdr Hr Clr Care. Very fewshowed there interest for future for the product. 41 | P a g e
  • 42. Demand For Godrej Care & Advance in 20 markets for MAY-JUNE 2012Average Stock Distributed for each dye 800GODREJ CARE & ADVANCE Sachets SoldGODREJ EXPRT PWDR HR CLR CARE 239GODREJ EXPT PWDR HR CLR ADVNCD 407Grand Total 646Analysis: - Average stock left with the retailers for both the dyes in the month of May & June. (B) Consumer Survey 1) Factors influencing purchase decision Particulars No. of responses Personality 96 Brand image 260 Discounts 354 Price 140 Friends Advice 280 Availability 138 Chemicals 318 Quality 244 400 350 300 Ranks Awarded 250 200 150 100 50 0 Personality Brand Discounts Price Friends Availability Chemicals Quality image Advice FactorsAnalysis & interpretation:-As can be inferred from the no. of responses, the most important factor being considered isPersonality of the consumer, closely followed by price and availability. People want to lookgood after getting Dye, for such category in Hair Care it is utmost imperative for Co. to monitorthose factors affecting the purchase decisions. 42 | P a g e
  • 43. 2) Attributes considered before purchaseParticulars Shampoos Hair Dyes Soap ConditionersBrand image 70 70 140 70Price 75 75 75 75Quality 96 140 70 96Advertisement 138 96 138 138Fragrance 140 138 96 140Chemicals 260 280 260 260 SHAMPOO 300 250 Rank Order 200 150 100 50 0 Brand image Price Quality Advertisement Frangrance Chemicals Attributes considered before purchase Hair Dyes 300 250 Rank Order 200 150 100 50 0 Brand image Price Quality Advertisement Frangrance Chemicals Attributes considered before purchase SOAP 300 250 Rank Order 200 150 100 50 0 Brand image Price Quality Advertisement Frangrance Chemicals Attributes considered before purchase 43 | P a g e
  • 44. CONDITIONERS 300 250 Rank Order 200 150 100 50 0 Brand image Price Quality Advertisement Frangrance Chemicals Attributes considered before purchaseAnalysis & interpretation:-In almost all the four hair care products, brand image and price are the most considered factors,followed by quality, advertisement and fragrance. Chemicals had a very little impact on therespondents. 3) Purchase of Godrej Hair Dyes Particulars No. of respondents Percentage Yes 42 84 No 8 16 Total 50 100 16% Yes No 84%Analysis & interpretation:-Out of the total respondents, 42 respondents have used Godrej Hair Dyes. 44 | P a g e
  • 45. 4) Godrej Hair Dyes used Particulars No. of respondents Percentage Godrej expert pwd natural blck 21 42 Godrej exprt pwdr hr clr care 4 8 Godrej expt pwdr hr clr advncd 16 32 Godrej kali mehendi 9 18 Total 50 100 18% 42% Godrej expert pwd natural blck Godrej exprt pwdr hr clr care 32% Godrej expt pwdr hr clr advncd 8% Godrej kali mehendiAnalysis & interpretation:-42% of the respondents have used Godrej expert pwd natural blck, closely followed by Godrejexpt pwdr hr clr advncd (32%) and very few respondents have used Godrej exprt pwdr hr clr care 5) Awareness about Godrej Hair Dyes Particulars No. of responses Retailer 11 Print media 12 Internet 2 TV ads 15 Friends 10 10 11 Retailer Print media Internet 15 12 TV ads 2 Friends 45 | P a g e
  • 46. Analysis & interpretation:-The most effective medium of creating awareness is through TV ads, followed by Print mediaand Retailers. 6) Usage of Godrej Hair Care ProductsParticulars Shampoos Hair Dyes Soap ConditionersDaily 3 2 10 0Weekly 5 10 12 4Fortnight 16 15 20 11Monthly 20 25 25 20 SHAMPOO 7% 11% 46% Daily Weekly 36% Fortnight Monthly HAIR DYE 4% 19% 48% Daily Weekly 29% Fortnight Monthly Soap 15% 37% Daily 18% Weekly Fortnight 30% Monthly 46 | P a g e
  • 47. CONDITIONER 12% Daily 31% 57% Weekly Fortnight MonthlyAnalysis & interpretation:-In most of the Godrej hair care products respondents are using it for fortnight and monthly usage.Hair Dyes are still a product of daily usage for few respondents for whom personality matters alot and mainly office employees. A part from Soap and Shampoo rest all the products are mostlyused in monthly basis rather than daily. 7) Performance of Godrej Hair Dyes Level Total Highly Satisfied 0 Satisfied 10 Neutral 15 Dissatisfied 7 Highly Dissatisfied 0 16 14 No. Of Respondent 12 10 8 6 4 2 0 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Satisfaction LevelAnalysis & interpretation:-The performance for Godrej Dyes is almost neutral. Few respondents have responded towardssatisfaction level. 47 | P a g e
  • 48. 8) Purchase of Godrej Hair Dyes in future Particulars No. of respondents Percentage Yes 27 54 No 23 46 Total 50 100 46% 54% Yes NoAnalysis & interpretation:-54% of the respondents will purchase Godrej Hair Dyes in future whereas 46% will not purchasethem. 9) Recommendation of Godrej Hair Dyes Particulars No. of respondents Percentage Yes 28 56 No 22 44 Total 50 100 44% 56% Yes NoAnalysis & interpretation:-The respondents who will purchase Godrej Hair Dyes in future will also recommend it to theirfriends. 48 | P a g e
  • 49. 10) Price Paid for Godrej expt pwdr hr clr advncd Level No. Of Respondents Highly Overpriced 11 Slightly Overpriced 19 Perfectly Priced 16 Underpriced 3 6% 22% 33% Highly Overpriced Slightly Overpriced Perfectly Priced 39% UnderpricedAnalysis & interpretation:-Out of the total respondents, maximum responded Godrej expt pwdr hr clr advncd to be slightlyoverpriced followed by satisfactory price level. Few said it to be at a Highly Overpriced level. 11) Price Paid for Godrej expt pwdr hr clr care Level No. Of Respondents Highly Overpriced 23 Slightly Overpriced 17 Perfectly Priced 10 Underpriced 0 20% 46% Highly Overpriced Slightly Overpriced Perfectly Priced 34% Underpriced 49 | P a g e
  • 50. Analysis & interpretation:-Out of the total respondents, maximum responded Godrej expt pwdr hr clr care to be Highlyoverpriced followed by slightly overprice level. Very few agreed with its price to be atsatisfactory level. 12) Performance of Godrej expt pwdr hr clr advncd Level Total Highly Satisfied 0 Satisfied 19 Neutral 12 Dissatisfied 5 Highly Dissatisfied 0 20 No. Of Respondents 15 10 5 0 Highly Satisfied Neutral Dissatisfied Highly Satisfied Dissatisfied Satisfaction LevelAnalysis & interpretation:-The performance for Godrej expt pwdr hr clr advncd is very much satisfied; people areconvinced with gel formula and the after effects. Few respondents have responded towardsneutral level. 13) Performance of Godrej expt pwdr hr clr care Level Total Highly Satisfied 0 Satisfied 6 Neutral 20 Dissatisfied 15 Highly Dissatisfied 0 50 | P a g e
  • 51. 25 No. Of Respondent 20 15 10 5 0 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Satisfaction LevelAnalysis & interpretation:-The performance for Godrej expt pwdr hr clr care is very much neutral; people are using itbecause of herbal tag, but after that mostly responded towards dissatisfactory level. As it hascolour problem and conditioning is not there, means one has to apply conditioner even afterapplying Godrej expt pwdr hr clr care. 14) Alternate Hair Dye products used by respondents Particulars Total GARNIER 25 SUPER VASMOL 30 STREAX 10 BLACK ROSE 16 INDICA 20 MAYURI 7 REVLON 10 10 25 GARNIER 7 SUPER VASMOL 20 STREAX BLACK ROSE 30 16 INDICA 10 MAYURI REVLON 51 | P a g e
  • 52. Analysis & interpretation:-Compared to Godrej hair dyes, other brands also have a distinct place in the market as we canobserve from the set of those 50 respondents many have used those other brands and most ofthem used all of the brands. 15) Display of Advance & Care Godrej Hair Dyes Particulars No. of respondents Percentage Yes 18 36 No 32 64 Total 50 100 36% Yes 64% NoAnalysis & interpretation:-Most of the respondents did not get a chance to see Godrej Advance & Care Hair Dyes duringtheir purchase. It’s there awareness that they ask for the product by themself otherwise they haveto take the pain to see at the corners or at back of other products. 16) Awareness about Godrej Hair Dyes Particulars No. of responses Godrej expert pwd natural blck 19 Godrej exprt pwdr hr clr care 6 Godrej expt pwdr hr clr advncd 16 Godrej kali mehendi 15 52 | P a g e
  • 53. 20 18 16 No. Of Responses 14 12 10 8 6 4 2 0 Godrej expert pwd Godrej exprt pwdr hr Godrej expt pwdr hr clr Godrej kali mehendi natural blck clr care advncd Hair DyesAnalysis & interpretation:-The respondents were known of Godrej expert pwd natural blck, Godrej expt pwdr hr clr advncd,and Godrej kali mehendi but very few were known of Godrej exprt pwdr hr clr care. 17) Preference for future purchase of Godrej Care & Advance Particulars No. of respondents Percentage Godrej exprt pwdr hr clr care 2 11 Godrej expt pwdr hr clr advncd 16 89 Total 18 100 11% Godrej exprt pwdr hr clr care Godrej expt pwdr hr clr advncd 89%Analysis & interpretation:-89% of the respondents are ready or willing to buy Godrej expt pwdr hr clr advncd in nearfuture, while only very few were ready to go for Godrej exprt pwdr hr clr care. 53 | P a g e
  • 54. Qualitative Observations from Retailers & Consumers:Retailers:-  Visibility is very poor at the retailers/ wholesalers as the product is kept somewhere at the corner or behind the other products.  Packaging seems to be bulky and complex that is why they keep it in open form in drawers or somewhere else, not at the customer sight.  Hangers given are only hinged in few outlets rest most of them say that customer himself is going to demand.  Advance is not demanded in the form of a dye, rather people ask it as a gel formula from Godrej.  Advance stock is fast moving and has a good demand that can be observed from the SKUs (stock keeping unit) Excel sheet.  Godrej Care is in a weak position, visibility is almost none, retailers keep it in the drawers or they are returning it back to the salesmen and distributors.  Care is shadowed because of its strong competitor Cavinkares’ INDICA.  The distribution scheme for Godrej expert Advance & Care is not working i.e. the Rs.7600 scheme with some free gifts.  Pushing Godrej Nupur in the scheme is considered poor.  Pricing is done poorly; the competitor is selling fast with a low price.  No promotions from the company or even the distributors apart from the normal schemes, while local players are promoting a lot many offers.  Herbal products in Kolkata already have a big local competition so merely people go for branded Dyes if it is in herbal.  Therefore Godrej Care is not able to make a stand as a brand while on the other hand Godrej Advance is having a promotional ad backing behind.  Godrej Advance still has a demand as brand, and successfully created a niche with its Gel and triple conditioning formula.  Proper description is not given by the salesmen/distributors about the two Dyes so that it can be at least promoted by the retailers.  Few Retailers don’t want to bear the pain to explain the product to the customer. So customer himself comes and demands nothing is explained them.  Retailers show hesitation in hanging the hangers due to few reasons like: - no space, no extra emolument, no motivation etc. etc.  Competitors are paying extra bucks and giving promotional flankers or stickers to decorate the shop which is missing in case of these two Dyes. 54 | P a g e
  • 55. Consumers:-The Consumers surveyed were the regular users and the saloons.  No promotional activity from Godrej to promote the two Dyes.  No visibility in the shops, consumers have to ask for the product then only they are given.  Some shops keep them in the corner but not in the straight view where it can be easily observed.  Advance is having a very nice fragrance with gel and triple conditioning formula, so customers are recommending it again.  Care on the other hand has a very confusing herbal formula; many consumers have returned it back after 1 use only.  People think a Dye as colouring powder not something that converts green after application, even after that it doesn’t have gel formula to save itself from dripping  Another biggest disadvantage with Care is that one has to again apply conditioner or something else to observe the smooth effect.  Customers have returned back Care packet to the retailers.  Poor pricing strategy has also created customers away from the both these products but still Advance is having a competitive advantage due to its niche formula.  Competitor is selling with a 10 Min application formula while Godrej Care is not having something like that.  In saloons also the case is same, people prefer Godrej Advance over Care. Advance has still a good stand in saloons with all colours (Black, Brown and Burgundy) while Care is not having demand as compare to Advance and other competitors.  Therefore Godrej Advance is still in a position where consumers are ready to use and recommend it again while the Care is not in a position to stand in a Herbal product nor as a Dye.  Very few herbal loving people stick to Godrej Care like people at an age level of 35+, but rest of the market is not having any demand for Godrej Care. 55 | P a g e
  • 56. LIMITATIONS OF STUDY  The scope of the research was wide enough but the research was limited to Kolkata only.  Not all the Retailers and customers could be contacted due to the lack of time.  The individuals being observed might behave in a different way when they know they are being observed and thus data collected may not be a true picture of the actual self.  Generally, respondents were busy in their work and were not interested in responding correctly.  While every effort was made to get the questionnaire filled personally, even then some elements of biasness might have crept in. Some respondents themselves were not clear about their likings and choices. 56 | P a g e
  • 57. CONCLUSIONThe present study comes to the floor with the revelations having exciting and full of curiositydeterminants in relation to the specified objectives to understand and analyse the 4P aspects ofmarketing for GCPL. Further the study helped in identifying the reasons which hampers thedistribution of Godrej Expert Care & Advance over other products and to understand customerBrand knowledge and availability of those two Dyes with regard to GCPL.Following are the few key findings of the study:  For Retailers, customer choice is the most important factor.  Consumers have a preference/loyalty towards particular brand of Hair dye and are not ready to buy any other brand so easily.  Retailer relationship is one of the most considerable factors for the distributors followed by the Schemes and Variety provided by the company.  Godrej though provides good hair care products but it is not it is not in line with its competitors.  Customers’ decisions are influenced by their preference for Personality and price of the Hair dye.  The respondents can’t see Godrej Care & Advance in stores and they very little knowledge about the two dyes.  L’OREAL is presently the most preferred brand.  Most of the respondents specially the Retailers need motivation to hang Care & Advance in their respective stores.  Distributors are not well trained enough or there is an information gap between the retailers and them that is why they don’t take the pain to tell consumer about the newly launched Care & Advance. 57 | P a g e
  • 58. SUGGESTIONS & RECOMMENDATIONS: As compared to various Godrej Hair dyes, Godrej Care & Advance have a low brand image, so it should make efforts to popularize the above two dyes in market. This means creating more brand awareness amongst consumers which can be done through promotions. Since the customer demand is very low for Godrej Care & Advance, it mainly needs to improve on its promotional tools in both volume and frequency. It should offer attractive schemes similar to Rs.7600 offer to retailers. E.g. A monthly TAMBOLA can be offered as an incentive to attract bulk orders, every Hanger will be having Tambola Tickets and gifts accordingly can be given to retailers on completion of TAMBOLA GRIDS. GCPL must focus on increasing its distribution expenditure and bring more personal approach in their communication. Company can offer lucrative deals to the retailers e.g. Slab discounts, etc.so that more retailers are attracted to buy Godrej Hair dyes and hence network of Godrej Care & Advance can be enlarged. Also this will increase the availability of Care & Advance in market. By offering good deals to Wholesalers/retailers, Godrej can also increase its sales because Wholesalers/retailers will encourage volume sales of Godrej to earn more profits for themselves. Pricing is also one of the important factors; Godrej offers all the Expert dyes in Rs.15 per sachet. They should emphasize on the pricing strategy as the competitors are offering same in very low prices. High Price-market skimming is a good strategy but when there is immense competition on a product like Hair Dye, Company should adopt a low pricing per gram strategy. On the part of Hangers provided, Current hangers have only 4 sachets 4 pockets system. They can introduce the same Hanger in the 8 sachets 8 pockets format by just adding a strip column with it. More will be the visibility more number of people can look. Distributors need some training to spread brand awareness about Godrej Care & Advance among the retailers/wholesalers/departmental stores, as they just push the dyes for volume sale. But retailers don’t bother about the sale, as they depend upon demand which if not there the product hygiene is lost and dyes are returned back. 58 | P a g e
  • 59.  The company is already dealing in a program called ‘GOLDEN CLUB’. They can utilize the same program to increase the distribution in various regions of Kolkata. As Kolkata is a place where we can find a lot of small scale industries, GCPL can utilize them to promote Godrej Care & Advance through a contract. E.g. Some local FMCG chain promoting Care & Advance in their outlets with attractive consumer schemes. Instead of giving NUPUR as a free stuff with the bulk order, company can provide some other dye or can give a Discount on that same scheme. As retailers think NUPUR is already a weak brand, pushing it with Care & Advance is not a good idea. 59 | P a g e
  • 60. QUESTIONNAIRE:RetailerQ1. Mark the companies that you are representing. (You can tick more than one)(a) GODREJ CONSUMER PRODS(b) LOREAL INDIA(c) BLACK ROSE(d) CAVINKARE(e) Others, please specifyQ2. What products in Hair Care you are dealing(a) Shampoos(b) Conditioners(c) Hair Dyes(d) Soap(e) All aboveQ3. Have you dealt with Godrej hair dyes (If (i), move to next ques., if (ii) or (iii), then move to Q18.)(i) Still dealing(ii) Dealt in past(iii) Never dealtQ4. Rank the following from 1 to 9 which you consider while dealing with a particular co. (Rank 1 to the most preferred, 9 to the least)(a) Customer choice (g) Variety(b) Brand image (h) Discount(c) Services (i) Company’s incentives 60 | P a g e
  • 61. (d) Schemes (e) Trade margins(f) ColourQ5. Which factors influence you to do more sales (You can tick more than one)(a) Range of variety & colour(b) Commission offered(c) Attractiveness of consumer schemes(d) Adequacy of advertising support during new product launches or new schemes(e) Timely information by distributers(f) Salesmen helping to get stock for urgent requirement(g) Settlement of distributers’ schemes in time(h) Support by senior manager to solve problemQ6. When secured a large order, I am paid the following compensation-(a) Commission(b) Rebate(c) Club membership(d) Family trip(e) Retailer’s promotion on company’s brochure(f) None(g) Any other preference, please specifyQ7. Which products of Godrej you are dealing in(a) Shampoos(b) Conditioners(c) Hair Dyes(d) Soap 61 | P a g e
  • 62. (e) Others, please specifyQ8. Rank the following products from 1 to 4 acc. to the product that generates more sales (1 to product generating max. sales, 4 the least) (a) Godrej expert pwd natural blck (b) Godrej exprt pwdr hr clr care (c) Godrej expt pwdr hr clr advncd (d) Godrej kali mehendiQ9. Mark reasons for low sales of the product ranked “4th” in previous question. (You can tick more thanone)(a) Poor quality(b) Unawareness(c) People prefer foreign brands(d) Poor sales services(e) Less features(f) Other reasonsQ10 How fast moving is Godrej Expt Pwdr Hr Clr Advncd Very Fast Moving Average Moving Less Moving No DemandQ11 How fast moving is Godrej Exprt Pwdr Hr Clr Care Very Fast Moving Average Moving Less Moving No DemandQ12. Where have you displayed above two Godrej Hair Dyes in your shop(a) Centre(b) Corners 62 | P a g e
  • 63. (c) At the back of other productsQ13. Are you satisfied with the company offered services Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ14. Co. is prompt and proactive in launching new and innovative products Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ15. Co. undertakes attractive promotional tools to launch new products Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ16. Would you continue dealing with Godrej Expt Pwdr Hr Clr Advncd Yes/NoQ17. Would you continue dealing with Godrej Expt Pwdr Hr Clr Care Yes/NoQ18. Any problems if you faced with GodrejQ19. According to you how the Co. can improve its present position 63 | P a g e
  • 64. ConsumersQ1. Rank the following from 1 to 9 which you consider while purchasing a particular hair care product. (Rank 1 to the most preferred, 9 to the least)(a) Personality (g) Chemicals(b) Brand image (h) Discount(c) Price (i) Quality(d) Friends’ Advice(f) AvailabilityQ2. Which attributes you consider before purchase (You can tick more than one)(a) Brand Image(b) Price(c) Quality(d) Advertisement(e) Fragrance(f) ChemicalsQ3. Have you ever purchased Godrej Hair Dyes Yes/NoQ4. Mark the Godrej Hair Dyes that you have used in past(a) Godrej expert pwd natural blck(b) Godrej exprt pwdr hr clr care(c) Godrej expt pwdr hr clr advncd(d) Godrej kali mehendi 64 | P a g e
  • 65. Q5. Where do you get to know about Godrej Hair Dyes(a) Retailer(b) Print Media(c) Internet(d) TV Ads(e) FriendsQ6. How often you use Godrej Hair care products (Shampoo, Conditioners, Hair Dyes, Soap)(a) Daily(b) Weekly(c) Fortnight(d) MonthlyQ7. Are you satisfied with the usage of Godrej Hair Dyes Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ8. Would you continue using Godrej Hair Dyes in future Yes/NoQ9. Would you recommend Godrej Hair Dyes to your near friends Yes/No 65 | P a g e
  • 66. Q10. The price you pay for the Godrej expt pwdr hr clr advncd is: (a) Highly overpriced (b) Slightly overpriced (c) Perfectly priced (d) Under pricedQ11. The price you pay for the Godrej expt pwdr hr clr care is: (a) Highly overpriced (b) Slightly overpriced (c) Perfectly priced (d) Under pricedQ12. Are you satisfied with the usage of Godrej expt pwdr hr clr advncd Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ13. Are you satisfied with the usage of Godrej expt pwdr hr clr care Highly Satisfied Neutral Dissatisfied Highly Satisfied DissatisfiedQ14. Alternate products you prefer for Hair dye other than Godrej (pick from given choice) (a) Garnier (f) Mayuri (b) Super Vasmol (g) Revlon (c) Streax (d) Black Rose (e) Indica 66 | P a g e
  • 67. Q15. Are Godrej Expt Pwdr Hr Clr Advncd and Godrej Exprt Pwdr Hr Clr Care visible in the shops Yes / NoQ16. Among the following Godrej Hair Dyes you were aware of(a) Godrej expert pwd natural blck(b) Godrej exprt pwdr hr clr care(c) Godrej expt pwdr hr clr advncd(d) Godrej kali mehendiQ17. Which of the following you are ready to buy/ use in future(a) Godrej exprt pwdr hr clr advncd(b) Godrej exprt pwdr hr clr care 67 | P a g e
  • 68. BIBLIOGRAPHY:Internet:http://en-wikipedia.org/wiki/Godrej-Grouphttp://en-wikipedia.org/wiki/GCPLhttp://www.godrej.comhttp://www.way2wealth.comhttp://www.scribd.comhttp:// www.hindubusinessline.comhttp://www.google.comhttp://ex-wikipedia-org/wiki/Marketing-Researchhttp://www.nielsen.com/in/en.html 68 | P a g e

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