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2019-21

Submitted by:
VISHRUTI KHANDELWAL
PGDM – 1.
2019-1705-0001-0033
Hyyh
TABLE OF CONTENTS
1. Sectoral Information

Fast Moving Consumer Goods (FMCG) is the 4th


largest sector of the Indian Economy after
FMCG sector contributes 27% in India's GDP.
Service sector, Agriculture sector and Industry
sector.

FMCG

The Urban segment of FMCG is expected to


earn a revenue growth at 8% in FY19 whereas
the rural segment is forecasted to contribute Indian FMCG sector is estimated to grow 12-
11-12 percent of total Income in FY19. 17% annuallyto USD99-135 Trillion by 2020.

GDP % Contribution to Indian Economy


FMCG sector contributes 27% to GDP of India.

India had the market size of US$353 billion in 2010which increased to US$543Billion in 2014 and is
estimated to grow till USD$99-135 Trillion by 2020.

SECTOR WISE CONTRIBUTION

Others, 23%
FMCG, 27%

Real Estate, 3%
Cons. Durables, 4%

Services, 4% Auto, 9%

Education, 5%
BFSI, 5% Ecommerce, 8%
Telecom, 6% Retail, 7%
Worldwide sectorial Contribution to World economy
India’s Contribution to global consumption is expected to get double to 5.8% by 2020.

Rom Growth Pattern


 Growing awareness, easier access and changing lifestyles are the essential growth drivers for the
consumer market.
 The Government of India has approved 100% FDI in cash and carry segment for promoting the
growth of FMCG sector.
 The FMCG sector has grown from US$ 31.6 Billion in 2011 to US$ 52.75 billion in 2017-18
 The sector is further expected to grow at a Compounded Annual Growth Rate (CAGR) OF 27.86%
to reach Rs 103.7 Billion by 2020.

GROWTH (IN BILLION)


Growth (in billion)

120
103.7
100

80

60 52.75
42.8
40 31.6

20

0
2011 2014 2017 2020

Reasons for the Growth Observed in FMCG Sector


 FMCG market has an increasing CAGR from the last 5 years because of increase in consumer’s
income which is signaling the consumer demand.
 The sales are also supported by modern inflation and increase in private consumers as well as
rural consumers.
 The Union Budget 2019-20 initiates to increase consumer spending among middle class are
expected to boost consumer confidence and improve demand generation for consumer
products.
 Increase in disposable income in rural India and low penetration levels in rural market.
 It has been expected that focus on agriculture, MSMEs, education, healthcare, infrastructure
and employment is creating the direct impact on the FMCG sector. These initiatives are
expected to increase the disposable income in the hands of the common people, especially in
the rural area, which will be beneficial for the sector.

Involvement of Rural and Urban segment in FMCG

Rural Segment Urban Segment

The rural segment is a large contributor to


the overall revenue generated by FMCG The overall revenue generated by FMCG
sector accounting to the revenue share of sector in india by urban sector market is 55%
around 45%
The urban segment of FMCG sector is
The rural segment is forecasted to expected to have a steady revenue growth
contribute 11-12% of total Income in FY19 at 8% in FY19

FY18

45% Rural
55% Urban
PORTER’S FIVE FORCES MODEL

 With more MNC’S entering, the industry is highly


Competitive High
fragmented.
Rivalry  Continuous increase in Advertisement Expenditures
 Marketing strategies are becoming aggressive.
bhjgaggressive

 High switching Costs


Bargaining  Due to long term relationships with suppliers,
FMCG companies negotiate better rates during
Power of Moderate times of high input cost inflation.
suppliers

Bargaining  Availability of same or similar alternatives


 Influence of marketing strategies
Power of Low  No threat of buying one product over the other
Buyers

 Requirement of Huge capital.


Threat of
 Spending on advertisement is aggressive.
New Moderate  Huge investment is required in setting up
Entrants distribution network and promoting brands.

 Presence of multiple Brands


Threat of High  Multiple brands are positioned with narrow
product differentiation.
Substitute
 Low price of substitute.
A. Company Information

Godrej Consumer Products is a leading emerging markets company based in Mumbai. It is a 120-year-
old legacy built on the trust, integrity and respect for others. Today, Godrej Group enjoys the patronage
of 1.1 billion consumers globally, across different businesses.

Though the growth rate of GPCL were below historical averages and long- term potential, it
outperformed the markets in its core categories. The signs of recovery have been witnessed in the
FMCG industry. The company has delivered strong and profitable growth, despite the macroeconomic
challenges.

History
Ardeshir Godrej & Pirojsha Godrej founded the GPCL in 1897. It operates in sectors
as diverse as Real Estate, Consumer products, industrial engineering, appliances,
furniture and agricultural products. The consumer products business was part of
the erstwhile Godrej soaps Limited and was demerged into Godrej Consumer
Products Limited in April 2001.

Company Snapshot

Company Name Godrej Consumer


Products limited
Type Public Company

Industry FMCG

Headquarters Mumbai, Maharashtra

Founder Ardeshir Godrej

Founded 2001

Products Cleaning agents,


personal and
healthcare products
Parent Godrej Group

Revenue USD 4.1 Billion


Promoters of the Company
A Promoter of the Company is a person who originates the scheme for the formation of the company,
has the memorandum and articles prepared, executed and registered and finds the first directors,
settles the terms of preliminary contracts and prospectus and makes arrangement for advertising and
circulating the prospectus and placing the capital.

Approximately 23 percent of the promoter holding in the Godrej Group is held in trusts that invests in
the environment, health and education.

List of people belonging to Promoter Group: -

S.No Name of Shareholder Number of shares held


1 Nadir Godrej, Rati Godrej, Hormazd 6,415,553
Godrej(Trustees of HNG family trust)
2 Burjis Nadir Godrej 5,955,975
3 Navroze Jamshyd Godrej 9,97,101
4 Nisaba Godrej 7,41,753
5 Sohrab Nadir Godrej 5,552,647
6 Pirojsha Adi Godrej 7,41,758
7 Tanya Arvind Dubash 7,41,755
8 Smita Godrej 12,740,146

Shareholding Summary for Godrej Industries Limited

SHAREHOLDING SUMMARY

Promoter FII Other Institutions Public

13%

5%

13%

69%
Market Share of the Company
 Godrej Consumer products is expecting a 25% market share in Professional hair care market in
which it entered 2 years back.
 The brand from the Godrej stable currently has miniscule market share and the space is
dominated by Loreal which has a near 70% market share in the salon space.
 In 2018 the Revenue of Godrej Consumer Product was Rs. 5354.74 crores
 At present, domestic sales contribute 53% of GPCL’s business and rest 47% towards
International Market.
 FMCG major Godrej Consumer Products Ltd (GCPL) expects overseas market to account for
more than half of its total sales.

Name of the Company Market Share


(Rs In Crores)
GODREJ 74557.10
MARICO 47403.48

COLGATE 41704.92
DABUR 82080.12

EMAMI 14916.31
HUL 469233

Market Share(in %)

10.2
6.49
5.71

11.2
64
2.04

Godrej Marico Colgate Dabur Emami HUL


COMPETITOR’S ANALYSIS

Name of The Company Market Share

Hindustan Unilever

LOREAL 25.8% in urban hair color


market
Proctor & Gamble 25%

WIPRO 68% in IT services


25% in BPO
30% in software market
KION Group 14.4%

Palmolive 51% in Toothpaste


30% in toothpowder
segment
Gillette 52.8%

Johnson-Johnson 21.3%
PRODUCT PORTFOLIO

Home Care Air Care


Hair Care
Personal Care
Product and Services offered by the Company

The products of GCPL range across home care, hair care and personal care- household
insecticides, hair color, liquid detergents, soaps and air fresheners, hair extensions, hair
care, personal wash, styling in mass and professional markets, skin care, sanitizers,
sun care and female deodorants. Godrej Consumer products is the leader in most of the
categories in the market and it is constantly innovating itself to create more superior
quality product at affordable prices.
Last 6-12 Months NEWS related to GCPL

1. GCPL Net Profit inches up at Rs. 407.6 crore

FMCG major Godrej Consumer Products reported a marginal 0.63% rise in consolidated net profit to
Rs. 407.6 crore in the first quarter ended June 30.

2. Godrej Consumer’s CEO Vivek Gambhir highest paid FMCG honcho in FY19.

Godrej Consumer Products MD and CEO Vivek Gambhir was the highest paid FMCG executive in the
previous fiscal with a total remuneration of Rs. 20.09 crore, followed by HUL,s Sanjiv Mehta at Rs. 18.88
crore, as per the information available in Annual report of the company.

3. Godrej Consumer Products ropes in Anushka Sharma as brand ambassador for hair color brand.

GCPL has roped in Bollywood Star Anushka Sharma as the new face of its popular hair color brand
Godrej Expert Rich Crème. The move is in the line with the company’s vision to make the brand more
contemporary and relevant in consonance with today’s lifestyle while fulfilling the youth demand.

4. Godrej to join ISRO’s private rocket mission.

Godrej & Boyce confirmed that it would join an industry consortium being formed by the ISRO to build
workhouse rocket Polar Satellite Launch Vehicles (PSLVs) to send local and global satellites to space.

5. New moms on office tours get an extra ticket for the nanny

GCPL introduces a policy that allows new mothers to take a caregiver and children aged up to 1 year on
necessary work related travel.

6. GCPL launches Cinthol’s all new Men’s Grooming Range with a campaign “Alive Looks for
Awesome Men”.

Cinthol, a brand that has been leading for over 66 years, announced its foray into male grooming market
by launching 8 new variants for face, body, hair and beard applications

7. GPCL increases stake in two Mauritius-based holding firms.

GCPL proclaimed that it has increased stake in two Mauritius based investment holding firms- Godrej
West Africa Holdings and Darling Trading Company- by 5% taking it to 95% each in both the companies.
Marketing Strategy

SWOT ANALYSIS of the COMPANY

Strengths Weakness Opportunities Threats


• Widespread • Limited market • Expansion in • Competition
distribution share due to Indian as well as from local and
network across presence of global markets unbranded
India other strong • Increase in the products
• Well developed FMCG brands purchasing power • Increasing
R&D capabiities • Limited of people thereby competition
• Leader among presence in increasing the amongst other
India's FMCG rural areas demand FMCG products
companies which can form • Mergers and • Popularity of
• Strong market a huge market acquisitions to the other
positions in • Use of strengthen the brands in the
multiple traditional brand. same segment
categories techniques in • Tap rural markets • Rising
rural market and Increased Competition in
• Godrej products penetration in the local
have stiff urban areas. markets and
competition pest
from big management
domestic firms.
players and
international
brands.
SWOT ANALYSIS OF THE PRODUCT

Semi-Urban
penetration is Increasing
The shine of hair limited which can competition
color is long lasting Launch of various
be a huge market from local
and the color does fashion shades
manufacturers,
not fade away. Basic hair shades Global expansion
available rather In rural India,
Built in moisture and international
than fashion Heena is
lock conditioner. presence
shades available preferred.
No irritation to with other Tie-up and start
skin and eyes. brands. of brand own hair
salons.
Available in seven
different shades
STP & Market Planning of GODREJ

• Age : 6-10,11-19,20-35,49-
65, 65+ Years
• Gender: Male, Female
• Occupation:
Demographic Professionals,retired
people,students.home-
makers, sportsperson
• Social class : Working class,
upper class, middle class

• Lifestyle: Health conscious,


Brand oriented,Cultural
Psychographic • Personality:
Ambitious,Experimental
Gregarious

Segmentation
• Region Based: Rural, Urban,
Geographic semi-urban
• Location Based: PAN India

Target  Urban Consumers


 Women
Market
 Use Hair Color Lock
Positioning 
Formulation Technology
Largest sellers of hair colors
in India
Market Planning
GCPL has discovered a new plan for focusing on the International market. It is concenterating on
a 3*3 Strategy’ to penetrate deeper into Asia, Africa, and South America, with three product
segments- personal wash, hair care and insecticides.
This strategy focuses on developing countries because they have high populations and high
consumption of Godrej products. International expansion strategy has helped the consumer
products firm to take successful products from one market to another besides getting access to
new markets and product categories. “Cross-Pollination” of product categories is an increasing
trend for GCPL’s. Similarly, the company is taking its successful mosquito repellant - Good
Knight to Africa and has already launched it in Nigeria.

Marketing Mix
Marketing mix consists of 4 Components:

PRODUCT

PRICE

PLACE

PROMOTION