INTRODUCTION
The topic of our project is to study the washing machine industry. Here we have to gather information about different manufacturers of washing machine and which company covers more market share.
Ø History of Washing Machines
Ancient peoples cleaned their clothes by pounding them on rocks or rubbing them with abrasive sands; and washing the dirt away in local streams. Evidence of ancient washing soap was found at Sapo Hill in Rome, where the ashes containing the fat of sacrificial animals was used as soap.
The earliest washing "machine" was the scrub board invented in 1797. In 1858, Hamilton Smith patented the rotary washing machine.
In 1874, William Blackstone of Indiana built a birthday present for his wife. It was a machine which removed and washed away dirt from clothes. The first washing machines designed for convenient use in the home.
The Thor was the first electric-powered washing machine. Introduced in 1908 by the Hurley Machine Company of Chicago, Illinois, the Thor washing machine was invented Alva J. Fisher. The Thor was a drum type washing machine with a galvanized tub and an electric motor. The Whirlpool Corporation started in 1911 as the Upton Machine Co., founded in St. Joseph, Michigan, to produce electric motor-driven wringer washers. In 1949, the Schulthess Group backed the invention of punched card control for washing machines. In 1951, production of Europe's first automatic washing machines started. In 1978, the first microchip-controlled automatic washing machines were produced.
Ø Features of washing machine
1) Load Type
There are two types of washing machines, top-loading and front-loading. Top-loading washers are the conventional type washing machines where the tub is filled with water, and an agitator is used to clean the clothes. These generally work very well, and are great for their value. Front-loading washing machines, though a little pricier, perform better. Front loaders do not have agitators, but instead use tumbling as a method of cleaning clothes. Because an agitator is not used, front-loaders are gentler on fabrics and use less water.
2) Washing Method
Generally most front load machines will have a drum, where as many top load machines use activator. Drum machines will tend to use less water per wash as the tub will not need to be full in order to wash.
3) Control Features
Washing machine controls are becoming more sophisticated with the introduction of digital displays and one-touch selection. These controls help you clearly program or preset your washing needs. Simpler machines will have dial and/or push-button controls.
PROJECT PROFILE
1. Name of project: -
Study and analyze washing industry.
2. Project Definition: -
The project helps to study which all brands of washing machine are available in India and what are the factors which affect the demand of particular brand in our country.
3. Project member & Enrollment No: -
a) Vibha Hinduja [08OSB058]
b) Sandhya Choudhary [08OSB046]
c) Bhoomi Suthar [08OSB007]
d) Astha Patel [08OSB006]
e) Dipika Patel [08OSB013]
f) Umesh Yadav [08OSB056]
4. Requirements for project: -
Data related to project is collected from secondary data available from internet. We have also visited various showrooms of washing machine and collected data from several employees working there. We even gathered data from pamphlets which we collected from showrooms.
5. Project Guide: -
Respected mam Mrs. Pinky Christian.
SIGNIFICANCE OF PROJECT
1. Project helped us to study washing machine industry.
2. Project gave us the opportunity to visit various showrooms of washing machine.
3. It was a good exposure for us to learn about various brands of washing machine sold in our country.
4. Project even helped us to relate the theoretical concept with the practical ones like Regression and ordinal scale.
5. We even got chance to meet different employees of the showroom and interview them.
6. Through this project we were able to enhance our knowledge on various business research methods like Regression and ordinal scaling used today for analysis of business.
NEED OF PRESENT STUDY
1) The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized.
2) Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors.
3) The latent demand for washing machines and washer-dryers in India is not actual or historic sales.
4) Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors.
5) Thus analyzing the factors which affect the sales of particular item is very important today.
6) Thus if we clearly know about the factors, designing strategies for increasing sales become easier.
7) Because of large competition today, good planning to increase the demand is necessary.
COMPANY PROFILE
Here is the list of the companies selling washing machine in the India and it is as follows:
1. Electrolux:-
· It includes 7 products in washing machine.
· They are Electrolux-Fabriguard Turbo to Electrolux-Ultra care.
· MRP Rs. 6,990(min) to Rs. 14,490(max).
· Washing capacity ranges from 5 Kg to 7 Kg.
2. Godrej:-
· It includes 26 products in washing machine.
· They are Godrej-GDS 400 to Godrej-GFT 700.
· MRP Rs. 4,820(min) to Rs. 19,490(max).
· Washing capacity ranges from 6 Kg to 7.5 Kg.
3. Haier:-
· It includes 13 products in washing machine.
· They are Haier-XPB60-235 to Haier-XQ5860JN.
· MRP Rs. 6,990(min) to Rs. 34,990(max).
4. Hitachi:-
· It includes 3 products in washing machine.
· They are Hitachi-SF-70FJ to Hitachi-SF-95FJ.
· MRP Rs. 22,500(min) to Rs. 29,500(max).
· Washing capacity ranges from 8 Kg to 12 Kg
5. IFB:-
· It includes 20 products in washing machine.
· They are IFB-Diva (cold) to IFB-Digital 7 kg.
· MRP Rs. 11,999(min) to Rs. 30,900(max) with consumer price index Rs. 11,700 to Rs. 28,400.
6. kenstar:-
· It includes 5 products in washing machine.
· They are Kenstar-LS 55 to Kenstar-Tumble Top LF 2008E (e-wash).
· MRP Rs. 6,490(min) to Rs. 19,990(max).
7. LG:-
· It includes 39 products in washing machine.
· They are LG-WP-9220 to LG-WD-1457ERD.
· MRP Rs. 6,750(min) to Rs. 72,990(max).
· Washing capacity ranges from 6 kg to 11 kg.
8. videocon:-
· It includes 18 products in washing machine.
· They are Videocon-SA 63RF to Videocon-K 5001FL.
· MRP Rs. 6,190(min) to Rs. 19,990(max).
9. whirlpool:-
· It includes 27 products in washing machine.
· They are Whirlpool-Superwash SI60, Whirlpool-Superwash E65 to Whirlpool-FSAH801.
· Consumer price Index Rs. 6,900 to Rs. 18,000
· MRP Rs. 7,440(min) to Rs. 22,390(max).
· Washing capacity ranges from 6 Kg to 7 Kg.
10. ONIDA:-
· It includes 11 products in washing machine.
· They are Onida-Liliput to Onida-Tumble 55.
· MRP Rs. 3,490(min) to Rs. 19,990(max).
11. PANASONIC:-
· It includes 5 products in washing machine.
· They are Panasonic-NA-F70G5LRQ to Panasonic-NA-F120E2HPQ.
· MRP Rs. 16,790(min) to Rs. 32,990(max).
12. SAMSUNG:-
· It includes 33 products in washing machine.
· They are Samsung-WT8202 to Samsung-WD7652C8.
· Consumer price Index Rs. 6,990 to Rs. 37,900
· MRP Rs. 6,190(min) to Rs. 32,900(max).
· Washing capacity ranges from 5 Kg to 7.5 Kg.
13. SANYO:-
· It includes 11 products in washing machine.
· They are Sanyo-ASW-80SRT, Aanyo-ASW-1150T to Sanyo-ASW-V1100T.
· MRP Rs. 12,990(min) to Rs. 23,990(max).
14. SHARP:-
· It includes 2 products in washing machine.
· They are Sharp-ES-S950F to Sharp-ES-S1000F.
· MRP Rs. 21,990(min) to Rs. 23,990(max).
15. SIEMEMS:-
· It includes 3 products in washing machine.
· They are Siemens-WM A0716 to Siemens-WM-2002XL.
· MRP Rs. 22,490(min) to Rs. 30,990(max).
16. TOSHIBA:-
· It includes 7 products in washing machine.
· They are Toshiba-VH-7201EKC (IU) to Toshiba-AW-D950SKC (WI).
· MRP Rs. 9,990(min) to Rs. 34,000(max).
· Washing capacity ranges from 6.5 Kg to 9.5 Kg
METHODOLOGY
1) Product Definition and Data Collection
Any study of demand requires that some standard be established to define “efficiently served”. Having implemented various alternatives and matched these with market outcomes, we have found that the optimal approach is to assume that certain key indicators are more likely to reflect efficiency than others. These indicators are given greater weight than others in the estimation of demand compared to others for which no known data are available.
2) Filtering and Smoothing
Based on the aggregate view of washing machines and washer-dryers as defined above, data were then collected for as many geographic locations as possible for that same definition, at the same level of the value chain. This generates a convenience sample of indicators from which comparable figures are available.
3) Filling in Missing Values
In some cases, data are available on a sporadic basis. In other cases, data may be available for only one year. Assuming that other factors are held constant, the missing years are extrapolated using changes and growth in aggregate national, state or union territory and city-level income.
4) Varying Parameter, Non-linear Estimation
Given the data available from the first three steps, the demand is estimated using a “varying-parameter”. Here the effect of income on demand is assumed to be constant unless there is empirical evidence to suggest that this effect varies. Another way of looking at this is to say that demand for washing machines and washer-dryers is more likely to be similar across states or union territories or cities that have similar characteristics in terms of economic development.
5) Fixed-Parameter Linear Estimation
Nonlinearities are assumed in cases where filtered data exist along the aggregate consumption function. Because India has more than 5,000 cities, there will always be those cities, especially toward the bottom of the consumption function, where non-linear estimation is simply not possible. For these cities, equilibrium demand is assumed to be perfectly parametric and not a function of wealth, but a function of current income.
6) Aggregation and Benchmarking
Demand figures are estimated for all major cities in India. These are then aggregated to get state or union territory totals. The purpose is to understand the density of demand within a state or union territory and the extent to which a city might be used as a point of distribution within its state or union territory.
FACTS & OBSERVATION
Ø Washing Machine Brands in the world:
AEG
Ariston
Bauknecht
Beko
Bosch
CDA
Creda
Dyson
GE
Hoover
Hotpoint
Indesit Electrolux
Kenmore
LG
Maytag
Miele
Philips
Samsung
Servis
Siemens
Smeg
Tecnik
Whirlpool
Zanussi
Some of the companies in the world who produces washing machines are as follow
Ø Demanded washing machines in the world
Some of the washing machine companies which are demanded more in the different countries of the world are as follows.
Company
Country
Whirlpool
United States
Electrolux
Sweden
GE Appliances
United States
Matsushita
Japan
Bosch-Siemens Hausgeräte
Germany
Merloni/Indesit
Italy
Maytag
United States
LG
Korea, India
Haier
China
Arçelik
Turkey
Fagor
Spain
Ø Evaluating growth rate of washing machines in different countries
Washing machines
Unit sales,
2004
Unit
sales,
2009
%
growth
US
8,274
9,773
18.1
China
12,245
20,977
71.3
Brazil
1,151
1,465
27.3
Japan
3,954
4,311
9.0
Germany
2,550
2,866
12.4
India
1,662
2,705
62.8
UK
2,122
2,384
12.4
France
2,323
2,638
13.6
Russia
1,725
2,308
33.8
Turkey
1,536
2,143
39.5
Ø Reference for purchase
Naturally, it may be a little overwhelming when you look at a list of all the washing machine manufacturers and need to pick one out, but there are several ways to single out the machine that will be best for your home
1) Consult friends and relatives: find out what brands they use and see what they have to say about them. Ask them about maintenance and repairs, local dealers and technical assistance. Getting their opinions may help you avoid machines that you won't be able to find serviceable parts for in your town.
2) Check out the warranties on machines in local stores: Find out which brands offer longer warranties and what types of damages are covered.
3) Do not rely solely on advice from sales clerks: Sales clerks typically recommend you buy things that they are trying to get off their hands or that might grant them a larger commission.
4) Decide exactly what it is you need in a machine before buying one: Once you have decided on the features you want, shop around, and compare prices and brands on machines offering the characteristics you desire.
Ø Main players of washing machine in India
· LG
· Whirlpool
· Samsung
· Videocon
· Hitachi
· Electrolux
Ø Factors affecting the purchase of washing machines
· Price
· Brand
· Features
· Volume
· Service
· Marital status
· Income levels
Ø India’s No. 1 choice for washing machines
CONCEPT RELEVANCE
Conceptual and practical are much related to each other. We had compared all practical and conceptual concepts. We studied about the following relevant concepts:
1) Here we have chosen ordinal measurement scaling to assign ranks to different brands on the basis of more demanded brand.
2) We have learnt theoretically how to use ordinal scaling, but know by applying this scaling technique on several variables in our project helps us to determine the relevance of theoretically concept with the practically.
3) Hence theoretical and practical concepts are more or less same.
4) We have even use factor analysis research method to determine which factors affect more in demand of the washing machines in particular country.
5) In this analysis also practical working is highly relevant to the theoretical concept.
Future Opportunities & Potentialities
Ø Rising rate of growth of GDP
Ø Preference for sophisticated brands
Ø Penetration in rural market
Ø Improving lifestyles
Ø Power availability
Ø Easy availability of consumer loans, expansion of hire purchase schemes
Ø Moreover Rural India
70 % of number of households has a penetration of 0.5 % for washing machines from 2005.
CONCLUSION
As explained earlier, washing machine industry is getting vast and highly competitive market in India. In earlier years the market of washing machine was not good. But now entrepreneur entering in this field have good scope. However the washing machine industry has vast market from several years in several countries of the world. The prices have been continuously declining and new models have been entering market and replacing old ones every day. The new models entering in the market have several new features to attract customers. We can predict that in the near future the washing machine industry will grow very high.
BIBLIOGRAPHY
· http://knowledge2.wharton.com.cn//index.cfm?fa=viewArticle&Articleid=1111.
· www.google.com
· www.rediffmail.com
· Business Research Methods book from ICFAI center for management research.
ACKNOWLEDGEMENT
We sincere attempt has been made to include everything regarding the subject that was within reach. We will consider our effort rewarded if this shot piece of work being better under standing of the subject.
We are highly thankful to our Prof. Japan Shah Sir (Lecturer in OSB, Ahmedabad) for guided us in understanding different of their organization as a part of our study required at MBA level. The detailed information of various functional and operation department has helped us a lot in submitting the export.
This report is fruit of many people’s effort and thoughts, directors indirect each has contributed inside facts, experience and personal support during its preparation.
PURPOSE OF MAKING REPORT
The student of MBA have to make a group report for the purpose of our live-project so our group has selected to make a report on the
This has helped the students to enrich their theoretical knowledge about the working and functioning of all departments in the particular area of the management and we have achieved the opportunities to do a work group report.
In this report we are very thankful to our professor Japan Shah Sir who gave us important guidance to fulfill the need of the report.
Indian FMCG industry
INTRODUCTION TO FMCG SECTOR FMCG refers to Fast Moving Consumer Goods it constitutes all the non-durable goods required for daily or frequently uses. Typically a consumer buys FMCG goods at least ones in a month.
FMCG sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population.
Broadly, FMCG industry can be divided in to following categories.
Household products Tobacco products
Household care Tobacco/ Pan Products
Healthcare Cigarette
Personal care products
Branded Foods FMCG INDUSTRY Agro products
Health beverages Dairy
Soft drinks Poultry
Bottled water Sugar
Edible oils Tea
EVOLUTION OF FMCG INDUSTRY IN INDIA The Ice Ages Dabur was one of the first players in the Indian FMCG scene. That was about 115 years ago when the term FMCG had not yet gained currency. The focus then was on providing consumer goods on a large scale. Since then the industry has come a long way what with catchphrases, buzzwords, marketing strategies, advertising all thrown in for good measure.
The Middle Ages (The 50's)
At the time of India's independence there were many multinationals like Godrej , Colgate and Nestle. Out of these companies only GODREJ had a domestic production base. For other MNCs, the domestic market was too small and the purchasing power of people was too low to entail any serious investment decisions.
The Swinging Sixties (60's)
The sixties were not too exciting in the Indian context particularly the FMCG sector Inspite of the fact that many more MNC's set up shop in India with a local manufacturing base the scene wasn’t too bright. This was due to the fact that the government accorded a misplaced emphasis on the concept of self-sufficiency and due to the heavy influence of socialist philosophy the natural inclination of the government was to frown upon the capitalist multinationals.
The Dark Ages (70's)
With a socialist government at the helm and the exploits of a rabble-rousing firebrand by the name of George Fernandes the MNC's didn't stand a chance. A statute was promoted to restrict the equity stake of foreign investment to 40%. That was the straw that broke the camel's back. Coke and IBM decided that they had enough and they left India .The only major FMCG MNC (that's quite a mouthful) that stayed put was Unilever .It somehow managed to retain a 51% stake by complying with certain government regulations. There weren't too many players in the FMCG scene which was dominated by a few big players. Which meant that there wasn’t enough choice for the consumers? With a socialist government at the helm which still thought that privatisation was a dirty word, and a fundamentalist opposition which opposed anything videshi on the grounds that it was videshi, things never looked more bleak for this segment.
Liberalization (The 90's)
After the introduction of reforms by the Narasimha Rao - Manmohan Singh duo the MNC's returned in droves. This period was marked by the creation of new categories and also new sub categories within existing categories. Demand was created where there was none by innovative sales and marketing strategies. With a burgeoning middle class that had the required purchasing power the MNC's were faced with the enviable prospect of a growing market that was not yet completely explored. There was a renewed emphasis on the distribution network.
More than anything else the nineties will be remembered for the acquisitions of brands. The acquirers were usually multinationals or those with huge resources. The following were the more publicized cases:
· The acquisition by GODREJ of Tomco, Kwality and Kissan and Lakme
· Colgate- Palmolive acquired Cibaca Flouride toothpaste brand, and Supreme, Standard Angular and Deluxe Transparent toothbrush brands.
· Coke acquired thums- up thus having a substantial market share even before setting up a domestic production capability.
Even though by conventional financial wisdom these acquisitions did not make much sense, the main reasons for these costly acquisitions were
· Market share- In this industry the profit margins are not very large so profits are determined by sales volume. These acquisitions did certainly push up sales volume. Pre-emptive move - Many companies were acquired simply to prevent rivals from taking over the company.
Product Characteristics
Products belonging to the FMCG segment generally have the following characteristics:
They are used at least once a month
They are used directly by the end-consumer
They are non-durable
They are sold in packaged form
They are branded
INDUSTRY CHARACTERISTICS
1 Branding:
Creating strong brands is important for FMCG companies and they devote considerable money and effort in developing bands. With differentiation on functional attributes being difficult to achieve in this competitive market, branding results in consumer loyalty and sales growth.
2 Distribution Network:
Given the fragmented nature of the Indian retailing industry and the problems of infrastructure, FMCG companies need to develop extensive distribution networks to achieve a high level of penetration in both the urban and rural markets. Once they are able to create a strong distribution network, it gives them significant advantages over their competitors.
3 Capital Intensity: Most product categories in FMCG require relatively minor investment in plant and machinery and other fixed assets. Therefore shortage of product for want of capacity would be a rare phenomenon. The turnover is typically five to eight times the investment made in a green field plant at full capacity. This is also due to the fact that the business being marketing driven, players do not integrate backward. Also, the business has low working capital intensity as bulk of sales from manufacturers takes place on a cash basis.
4 High Initial Launch Cost:
Nonetheless, there is a large front-ended investment made in new products including cost of product development, market research, test marketing and most importantly its launch. To create awareness and develop franchise for a new brand requires enormous initial expenditure is required on launch advertisements, free samples and product promotions. Launch costs are as high as 50-100% of revenue in the first year and these costs progressively reduce as the brand matures, gains consumer acceptance and turnover rises. For established brands, advertisement expenditure varies from 5 - 12% depending on the categories. It is common to give occasional push by re-launches, which involves repositioning of brands with sizable marketing support.
5 Technology:
Basic technology for manufacturing is easily available. Also, technology for most products has been fairly stable. Modifications/ improvement rarely change the basic process. Nonetheless, major global players spend enormous sums on R&D due to their ability to spread cost over the wider base of their global operations. Their R&D efforts are towards
Cost effective manufacturing process without compromising on quality and functional performance.
Research driven formulations which give cutting edge.
High standards of hygiene/ purity for personal care and food products.
Standardized formulation, which can be used across countries.
6 Marketing Drive:
In relative terms, marketing function has greater importance in FMCG companies. The players have to reach out to mass population and compete with several other brands which essentially offer similar products. The perceived differences are greater than the real differences in the product.
7 Market Research:
Consumers' purchase decisions are based on perceptions about brands. They also keep on changing with fashion, income and changes in lifestyle. Unlike industrial products, it is difficult to differentiate products on technical or functional grounds. With increasing competition, companies spend enormous sums on product launches. Market research and test marketing become inevitable.
9 Third-party Manufacturing
Manufacturing of products by third party vendors is quite common. Third party manufacturing used to give fiscal advantages particularly of excise duties. These have been considerably diluted in the past 7 years of reforms. In the 1997-98 budget the government proposed to change the basis of excise levy to MRP basis. A total of 43 product categories have been brought under the MRP net in the subsequent budgets.
Besides excise benefit, third party manufacturing also provides other benefits viz.
1. Flexibility in production and inventory planning as the marketing company's decision-making is liberated to a large extent from taking manufacturing overheads into account.
2. Flexibility in controlling labor costs. Most small-scale third-party manufacturers have benefits of direct control of the owner and greater ability to manage local environment. The large organization also runs the risk of unionization.
3. It is beneficial (in terms of logistics) and sometimes essential to get certain products manufactured near the market. A company can tie up with several 3P manufacturers in separate locations, rather than set up own manufacturing facilities.
4. The marketing company gives technology, lays down quality standards and typically exercises supervision on manufacturing, cost and quality standards. The marketing company may also co-ordinate raw material procurement to optimize on bulk discounts. While in most cases, manufacturing process is fairly simple, certain products require supply of some critical ingredients by the marketing company (which in turn may be imported from the parent company). It is common to find support in working capital finance also.
10 Significant Presence of Unorganized Sector
There is a significant presence of unorganized sector in India. In the past, several factors led to mushrooming of small unorganized players with local presence viz.
Basic technology for most products is fairly simple and easily available.
· Fiscal advantages:
In India, small-scale sector enjoys (the concessions however have been diluted considerably in the past few years) exemption/ lower rates of excise duty, sales tax etc. This makes them more price competitive vis-à-vis the organized sector.
· Remote rural markets:
Due to highly scattered market and poor transport infrastructure, very few MNC companies/ organized players have been able to reach out to remote rural areas and even small towns.
· Low brand awareness:
Low brand awareness enables local players to market their spurious look-alike brands.
· Cost advantage:
Lower overheads due to limited geography, family management, focused product lines and minimal expenditure on marketing.
Industry Segments
The main segments of the FMCG sector are:
Ø Personal Care:
Oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care.
Ø Household Care:
Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish).
Ø Branded and Packaged Food and Beverages:
Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc.
MAJOR PLAYERS
There is a strong MNC presence in the Indian FMCG market and out of the top 10 FMCG companies; four are multinationals while two others have significant MNC shareholdings. Unlike several other sectors where multinationals have entered after 1991, MNCs have been active in India for a long time. The top 10 listed FMCG companies on the basis of their sales turnover are:
Company Name
1. HUL
2. ITC
3. NESTLE
4. GCMMF AMUL
5. DABUR
6. ASIAN PAINTS
7. CADBURY INDUSTRIES
8. BRITANNIA
9. PROCTER AND GAMBLE
10. MARICO INDUSTRIES
Among the major companies, Hindustan Unilever has a strong presence in the food, personal care and household care (detergents) sectors; ITC is the market leader in cigarettes; Nestle, Cadbury and Britannia are active in the food sector. P&G and Marico Indus are active in personal care.
Exports
India is one of the world’s largest producers for a number of FMCG products but its FMCG exports are languishing at around Rs 1,000 crore only. There is significant potential for increasing exports but there are certain factors inhibiting this. Small-scale sector reservations limit ability to invest in technology and quality up gradation to achieve economies of scale. Moreover, lower volume of higher value added products reduce scope for export to developing countries.
SALIENT FEATURES OF FMCG INDUSTRY:
The FMCG sector is a key component of India’s GDP and is a significant direct and indirect employer. It is the fourth largest sector in the economy and is responsible for five per cent of total factory employment in the country. The sector also creates employment for three million people in downstream activities, much of which is disbursed in small towns and rural India.
Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality the sector meets the every day needs of the masses, across the country. Low-priced products contribute the majority of the sales volume and lower income and lower middle income groups account for over 60 per cent of the sector’s sales. Moreover, rural markets account for 56 per cent of total domestic FMCG demand and FMCG outlets reach more villages than any other basic facility such as primary schools or bus facilities.
The FMCG sector has several other salient features. It has strong links with agriculture and 71 per cent of sales come from agro-based products; it is a significant value creator with a market capitalization second only to the IT sector and it is a key contributor to the exchequer. In 1998-99, it accounted for eight per cent of total corporate tax; six per cent of central excise revenue and seven per cent of state tax revenues.
The FMCG sector has traditionally grown at a very fast rate and has generally out performed the rest of the industry. Over the last one year, however the rate of growth has slowed down and the sector has recorded sales growth of just five per cent in the last four quarters.
The outlook in the short term does not appear to be very positive for the sector. Rural demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has already downscaled its projection for agriculture growth in the current fiscal. Poor monsoon in some states, too, is unlikely to help matters. Moreover, the general slowdown in the economy is also likely to have an adverse impact on disposable income and purchasing power as a whole. The growth of imports constitutes another problem area and while so far imports in this sector have been confined to the premium segment, FMCG companies estimate they have already cornered a four to six per cent market share. The high burden of local taxes is another reason attributed for the slowdown in the industry
At the same time, the long term outlook for revenue growth is positive. Give the large market and the requirement for continuous repurchase of these products, FMCG companies should continue to do well in the long run. Moreover, most of the companies are concentrating on cost reduction and supply chain management. This should yield positive results for them.
PEST ANALYSIS OF INDIAN FMCG INDUSTRY:
POLITICAL / LEGAL FACTORS
Tax reforms
The government has gradually removed the restriction on imports of consumer goods in the country and also significantly reduced excise duties. The domestic tax structure of these products, however, has not been rationalized to provide level playing field for competition this is adversely affecting the FMCG industry and could have far reaching adverse impact. The following taxation issues need urgent attention of the government:
1. Irrational domestic tax structure encouraging imports
Significant reduction in custom duty rates of the consumer goods has made imported products cheaper as compared to indigenously manufactured products, due to irrational domestic tax structure. For instant, goods manufacturing in India suffered for cascading effects of taxes on inputs as additional cost compared to imports.
The cascading effects of sales tax and local levies on inputs used in domestic manufactured should be eliminated by providing national VALUE ADDED TAX. Covering both central and state taxes on an urgent basis.
Moreover, maximum retail price – based excise duties levies on a large number of FMCG products. Countervailing duty in the same product when imported is charged on CIF value. The MRP base assessable for excise does not allow abatement for cost manufacturing costs such as advertising and selling expenses whereas CIF value considered for the purpose of import duty does not include costs of these elements incurred subsequently by imports.
2. Inverted duty structured for selected inputs
Duty on certain raw material higher or the same as compared to finished products in which these materials are used. In addition custom duty, raw materials are also subject to sales tax and octroi and therefore total tax incidence and cost of indigenous goes up. The import duty on raw materials needs to be rationale so that it does not exceed 60 to 70 percent of the duty on finished goods.
3. Contract manufacturing:
As FMCG companies concentrate on brand building, product development and creating distribution networks, they are at the same time outsourcing their production requirements to third party manufacturers. Moreover, with several items reserve for the small-scale industries and with these SSI units enjoying tax incentives, the contract manufacturing route has grown in importance and popularity.
ECONOMIC FACTORS:
FMCG growth is directly linked to growth of Indian economy. The sector will be the biggest beneficiary when the economy turns around and rural demand picks up. This indicates immense potential for FMCG in India over the long term. Duty stagnant market in Urban India, rural market can be developed. This depends on the monsoon, as rural economy is heavily dependent on agriculture.
SOCIOCULTURAL FACTORS:
1. Life style:
A considered part of rural population now has access to television and cable television and aspiration about life style are changing fast. Rural India accounts for over 70 percent of the country’s population.
2. Income level:
Income levels are low and consumers are highly price sensitive. Lower income and lower middle groups accounts for over 60 percent of the sector’s sales. Local / unorganized players operating at low overheads will continue to give stiff competition.
TECHNOLOGICAL:
Basic technology for manufacturing is easily available. Also, technology for most products has been fairly stable. Modification / improvements rarely change the basic process. Nonetheless, major global players enormous sums on R&D due their ability to spread cost over the wider base of their global operations. Their R&D efforts are towards
· Cost effective manufacturing process without compromising on quality and functional performance.
· Research driven formulations, which give cutting edge.
· Standardize formulation, which can be used across countries.
SWOT ANALYSIS OF FMCG INDUSTRY
STRENGTHS
Well-established distribution network extending to rural areas.
Strong brands in the FMCG sector.
Low cost operations
2. WEAKNESSES
Low export levels.
Small scale sector reservations limit ability to invest in technology and achieve economies of scale.
Several "me-too’’ products.
3. OPPORTUNITIES
Large domestic market.
Export potential
Increasing income levels will result in faster revenue growth.
4. THREATS
Imports
Tax and regulatory structure
Slowdown in rural demand
Rural marketing has become the latest marketing mantra of most FMCG majors
AN INTRODUCTON Rural marketing has become the latest marketing mantra of most FMCG majors. True, rural India is vast with unlimited opportunities. All waiting to be tapped by FMCGs. Not surprising that the Indian FMCG sector is busy putting in places a parallel rural marketing strategy. Among the FMCG majors, Hindustan Lever, Marico Industries, Colgate-Palmolive and Britannia Industries are only a few of the FMCG majors who have been gung-ho about rural marketing.
Sure, there is a lot of money in rural India. But, there are obstacles. The biggest obstacle is that the rural consumer is still evolving. Only FMCGs with deeper pockets, unflinching rural commitment and staying power can play this rural game. CHALLENGES IN RURAL MARKETING
1. Literacy:
There are not enough opportunities for education and literacy level is low (36%) compared to all India average of 52%.
2. Seasonal demand:
Demand for goods in rural markets depends upon agricultural situation, as agriculture is main source of income.
3. Transportation:
Many rural areas not connected by rail transport. Kacha road become unserviceable during monsoon and interior villages gets isolated.
4. Distribution: High cost of distribution.
5. Communication problems:
Facilities such as telephone, Fax, telegramis rather poor in rural areas.
6. Buying decisions:
Rural consumers are cautious in buying and decisions are slow and delayed. They like to give a trial and only after getting personal satisfaction, they adapt the practice.
7. Sales promotion media and methods:
Television has made a great impact and large audience has been exposed to this medium. Radio reaches large population in rural areas at a relatively low cost. However reach of formal media e.g. Print, TV, Cinema and Radio is low in rural households therefore the marketer has to undertake rural specific sales promotion activities such as participation in melas/fairs, haats conducting group meeting of potential users of products, van publicity, village film shows and demonstration.
FEATURES OF RURAL MARKETING
1. Large and Scattered market:
The rural market of India is large and scattered in the sense that it consists of over 63 crore consumer from 5, 70,000 villages spread throughout the country.
2. Major income from agriculture:
Nearly 60 % of the rural income is from agriculture. Hence rural prosperity is tied with agricultural prosperity.
3. Low standard of living:
The consumer in the village area do have a low standard of living because of low literacy, low per capita income, social backwardness, low savings, etc.
4. Traditional Outlook:
The rural consumer values old customs and tradition. They do not prefer changes.
5. Diverse socio-economic backwardness:
Rural consumers have diverse socio-economic backwardness. This is different in different parts of the country.
6. Infrastructure Facilities:
The Infrastructure Facilities like roads, warehouses, communication system, financial facilities are inadequate in rural areas. Hence physical distribution becomes costly due to inadequate Infrastructure Facilities.
RURAL MARKETING-CHALLENGES AND OPPORTUNITIES
The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two-thirds of countries consumers live in rural areas and almost half of the national income is generated here. It is only natural that rural markets form an important part of the total market of India. Our nation is classified in around 450 districts, and approximately 630000 villages, which can be sorted in different parameters such as literacy levels, accessibility, income levels, penetration, distances from nearest towns, etc.
The success of a brand in the Indian rural market is as unpredictable as rain. It has always been difficult to gauge the rural market. Many brands, which should have been successful, have failed miserably. More often than not, people attribute rural market success to luck. Therefore, marketers need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent pattern.
One major problem for rural market is a huge urban-rural consumption mismatch. According to estimates, penetration of toothpaste is a healthy 75-80% in urban India, whereas it is only 15-20% in rural India. As a result, urban India contributes 65% to the total volumes in the oral care business. The per capita consumption of toothpaste in urban India is 153 grams per annum, almost 4 times of rural India. With urban India already highly penetrated incremental growth becomes difficult.
In order to reduce this mismatch, both Colgate and GODREJ have taken to the rural market with gusto. GODREJ already is the trendsetter in recognising rural potential. Colgate too has initiated operation ‘Jagruti’ to improve its rural penetration. The aim is to educate the masses about oral care and its benefits vis-à-vis traditional teeth cleaning methods like ‘datoon’ (neem plant).
The focus has also shifted to children. Corporates realise that oral care is a lifelong habit and once developed in a child, generates lifelong customers. So, oral care companies are tying up with schools to educate children on oral care. The focus of advertising in print and television has also shifted to children. Also, the focus is on brushing twice a day, in a bid to expand per capita volume growth.
Though market expansion has hit a roadblock in recent times, with improvement in rural economy and the measures taken by the industry to improve usage of products, the oral care market is likely to show an improvement in the long term.
While the rural market certainly offers a big attraction to marketers, it would be naive to think that any company can easily enter the market and walk away with sizable share. Actually the market bristles with variety of problems. The main problems in rural marketing are:
· Physical Distribution
· Channel Management
PROMOTION AND MARKETING COMMUNICATION
The problems of physical distribution and channel management adversely affect the service as well as the cost aspect. The existent market structure consists of primary rural market and retail sales outlet. The structure involves stock points in feeder towns to service these retail outlets at the village levels. But it becomes difficult maintaining the required service level in the delivery of the product at retail level.
One of the ways could be using company delivery vans, which can serve two purposes- it can take the products to the customers in every nook and corner of the market and it also enables the firm to establish direct contact with them and thereby facilitate sales promotion. However, only the bigwigs can adopt this channel. The companies with relatively fewer resources can go in for syndicated distribution where a tie-up between non-competitive marketers can be established to facilitate distribution.
As a general rule, rural marketing involves more intensive personal selling efforts compared to urban marketing. Marketers need to understand the psyche of the rural consumers and then act accordingly. To effectively tap the rural market a brand must associate it with the same things the rural folks do. Utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, melas and other activities where they assemble, can do this.
Effective Communication Media and Methods for Rural Audience
There are three major factors to be kept in mind while selecting the media:
· The market to be reached
· The pros and cons of a particular medium
· The most appropriate media to reach the particular market.
Any medium chosen must be able to attain at least two aims:
· It is to reach the maximum number of prospects
· It must attract the attention of such prospects
The promotion media and methods could be broadly classified into formal media and informal/rural specific media.
1. Formal media
Formal media includes Press and Print, TV, Cinema, Radio , and Point of Purchase and Outdoor advertisement. Reach of formal media is low in rural households (Print: 18%, TV: 27% , Cinema: 30% and Radio: 37%) and therefore the marketer has to consider the following points:
2. Newspapers and Magazines
English newspapers and magazines have negligible circulation in rural areas. However, local language newspapers and magazines are becoming popular among educated families in rural areas. Eg. Of newspapers such as Eenadu in A.P., Dina Thanthi in Tamil Nadu , Punjab Kesari in the north, Loksatta in Maharashtra and Tamil Magazine Kumudam. They are very popular in rural areas.
3. Television
Television has made a great impact and large audience has been exposed to this medium. GODREJ has been using television to communicate with the rural masses. Lifebuoy, Lux , Nihar oil,etc. are some of the products advertised via television. Regional TV channels have become very popular especially in southern states. Eg. Like Sun TV is very popular even in rural areas in Tamil Nadu and Asianet is a preferred regional channel in Kerala. Many consumer goods companies and fertilizer companies are using these TV channels to reach the rural consumer.
4. Radio
Radio reaches large population in rural areas at a relatively low cost. Colgate, Jyoti Labs, Zandu Balm, Zuari Industries are some of the companies using Radio communication programme. There are specific programmes for farmers like Farm and Home / Krisha Darshan in Regional languages. The farmers have a habit of listening to regional news / agricultural news in the morning and late evening. The advertisement has to be released during this time to get maximum coverage in rural areas. Another advantage is that the radio commercial can be prepared at short notice to meet the changing needs of the rural folk . Consider the effectiveness of releasing a pesticide ad at the time of outbreak of a pest or disease in crops.
5. Cinema
About 65% of the earnings from cinema are from rural markets. Film viewing habit is high in certain states like Tamil Nadu, Karnataka and Andhra Pradesh. Village theatres do roaring business during festivals by having four shows per day. The monthly charge for showing an ad Film is within Rs. 500. Local distributor or dealer who has good contacts with cimema houses in villages can easily monitor this activity. Films on products like Vicks, Lifebuoy, and SPIC fertilizers are shown in rural cinema halls. Apart from films, Ad slides can also be screened in village theatres.
6. Outdoor Advertisements
This form of media, which includes signboards, wall painting , hoarding , tree boards , bus boards , dealer boards , product display boards, etc is cost effective in rural areas. Symbols. Pictures and colours should be used in POPs meant for rural markets so that they can easily identify the products. Generally rural people prefer bright colours and the marketer should utilize such cues.
7. Point of Purchase
Display of hangings, festoons and product packs in the shops will catch the attention of prospective buyers. However, a clutter of such POP materials of competing companies will not have the desired effect and is to be avoided.
8. Wall painting
Wall painting is an effective and economical medium for communication in rural areas, since it stays there for a longtime depending upon the weather conditions. The cost of painting one square foot area is just Rs. 10. Retailers welcome painting of their shops so that the shop will look better. Walls of farm houses, shops and schools are ideal places for painting and the company need not have to pay any rent for the same. The walls have to be painted at least one or two feet from ground level. It is better to take permission of the owner. Very often the owner takes responsibility for taking care of the wall painting. Painting to be avoided during election time rainy season. The matter should be in the form of pictures , slogan for catching the attention of people. A wall painting of 100 square feet is quite adequate to convey the message about a product or service. The local distributor / dealer who knows the market and people could be involved in selection of spots and for arranging wall painting. Companies marketing TV, Fans, branded coffee / tea, toothpaste , pesticides, fertilizers, etc use wall painting as a promotion medium in rural areas.
Tree boards are painted boards of about two square feet in dimension having the picture or name or slogan of the product painted on it. The cost of such a painted board is about Rs. 80. These boards are fixed to the trees on both sides of the village road at a height of about 10 feet from ground level. These boards attract the attention of slow moving vehicles like cycles, bullock carts and tractors and people walking on the road. Considering the poor condition of roads , even the buses move at slow speed through village road. Tree boards are extensively used by fertilizer and pesticide companies in rural areas. Tree boards are low priced promotion items and can be used by consumer goods companies also.
9. Informal / Rural Specific media
Informal / Rural Specific media with effective reach and personalized communication will help in realizing the promotional objectives. A variety are used by companies , some of them are as below.
a. Farm-to-Farm / House-to-House visit
This approach has been found to be very effective for agricultural machinery, animal health products and agricultural inputs. Rural people prefer face-to-face communication and farm visits facilitate two-way communication. The advantage is that the sales person can understand the needs and wants of the rural customer by directly discussing with him and answer his queries on products and services. Potential customers in the village are identified and the company’s / distributor’s representative makes farm-to-farm visits and highlight the benefits of the products. The person carries with him literature in local language and also the samples of products. The person does not sell the product but only promotes the use of the product. Very often the local dealer also joins the representative in making farm-to-farm visits. The dealer clarifies the terms and conditions of sale and also makes independent follow up visits for securing orders. Many LIC agents and companies dealing with high value consumer durables have tried this approach with success in rich rural areas.
b. Opinion leaders
Villagers place more emphasis on the experience of others who have used a product / brand to make purchase decision. Opinion leader is a person who is considered to be knowledge and is consulted by others and his advice is normally followed. Such opinion leaders could be big landlords , bank official , panchayat president , teachers , extension workers,etc. Asian paints promoted its Utsav brand of paint by painting the Village Sarpanch’s house a few months prior to the launch to demonstrate that the paint does not peel off. Mahindra tractors use bankers as opinion leaders for their product.
c. The Melas
Melas are of different types i.e. commodity fairs , cattle fairs and religious fairs and may be held only for a day or may extend over a week. Many companies have come out with creative ideas for participating in such melas.
Paint companies supporting Pola fair in Maharashtra by paninting the horns of bulls, screening of popular films along with ad films by fertilizer / pesticides companies in south. A few points to be considered are: Preparation of a list of Melas where the company wants to participate based on the prospects for the company’s products , involve local distributor for local help and guidance , arrange for generators since electricity supply is erratic , give through training for the sales person to answer queries , decorate the stall with posters, cut outs, banners, arrange for display of the products and organize luck draws / scratch cards to attract the people to the stall. It is better to plan for a follow up the visits to see the impact of such an activity.
d. The Haats\
Traditionally on certain days of the week , both the sellers and buyers meet in the village to buy and sell goods and services. These are the Haats that are being held regularly in all rural areas. The sellers arrive in the morning in the haat and remain till late in the evening. Next day they move to another haat. The reason being that in villages the wages are paid on weekly basis and haat is conducted on the day when the villagers get their wages. For the marketer, the haat can be an ideal platform for advertising and selling of goods. Display of posters, banners and products, conducting film shows and mike publicity could be carried out in the haats. By participating in the haats and melas, the company can not only promote their products but also understand the shared values, beliefs and perceptions of rural customers that influence his buying behaviour.
Folk dances are well appreciated form of entertainment available to the village people. The folk dance “Kuravan Kurathi” is popular in Tamil Nadu. The troupe consists dancers, drummers and musicians and they move in a well decorated van from one village to another village singing and dancing. In a day the troupe covers about 8-10 villages. As soon as the van reaches a village, film songs are played to attract the attention of the villages. This is followed by folk dances.
Mike announcement is made about the company’s products and leaflets are distributed. After the dance programme, queries, if any , about the products are answered by the sales person. Folk dance programme costs about Rs. 5000 per day and therefore these programmes are conducted during the peak season in selected markets. Thums Up has sponsored Lavnis , the folk dance programme of Maharashtra and over 30 programmes have been arranged in selected rural markets.
e. Audio Visual Publicity Vans
Audio Video unit is one of the effective tools for rural communication. The van is a mobile promotion station having facilities for screening films slides and mike publicity. Portable exhibition kit can be carried in the van and an exhibition of the products could be put up as and when required. Agricultural input companies regularly use AVP vans for promoting their products. Companies such as GODREJ , Colgate, Phillips have made effective use of AVP vans for popularizing their products in rural areas.
A few points to be considered for effective AVP unit operations are : Preparation of a route plan covering key villages / markets, giving advance information regarding film shows in the selected villages, involvement of local distributors / dealers in publicity campaign , through training to the mechanic to take care of the instruments, availability of generator in the van, experienced sales person who is fluent in the local language and can answer queries of customers. During day time , the unit is used for mike publicity , pasting of posters and distribution of literature. In the evening , with the help of local dealer / distributor and opinion leaders, film shows are organized in two / three different villages. As per the plan , the van reaches the first village in the evening. A suitable place such as village ground , school , and panchayat hall is selected for the meeting as well as film screening. A few film songs are played to attract the attention to the villagers. The sales person makes a brief talk about situation in the village, the products and the benefits. The ad film is screened along with some popular film shots and this continues for about 30 minutes. At the end of the film show, he distributes handbills and answers queries of the customers. The whole operation takes about 1-2 hours depending upon the products under promotion , number of participants in the meeting and time taken for question and answers. The van moves to next village for the second film show. The company representative visits the villages at random meeting dealers and key customers to know the impact of the AVP operation. The cost of running a fully equipped AVP unit is about Rs. 4000 per day and AVP van operation has to be considered as an investment for business development in rural areas.
f. Product display contests
Package is an integral part of the product. Its main purpose is to protect the product during transit , to preserve the quality and to avoid any loss in quality and quantity. Now-a-days, companies are making lot of efforts to produce good quality packages as the package is the face of the brand and carry advertising value. The introduction of sachet packing ,created a revolution in the shampoo industry. Velvette and Chik shampoo by beauty cosmetics , now known as Cavinkare in south. Sachets eater to the first time shampoo users who are price conscious. Similarly, Mediker (anti-lice product) is being made available in 5ml sachet to school going children and young women in rural areas.
The main purpose of display contest is to remind the customer to buy the product as soon as he enters the shop. Another objective is to influence the dealer to stock the product and support the company in increasing the sales. The display contest has to be announced well as in advance and promotional materials to be distributed to all selected dealers in a geographical area. Prizes for best displays are announced to motivate the dealers. The contest lasts for about a month. Dealer incentives based on the counter sales of the products to be announced to increase counters sales. A well planned Product display contest not only increases the involvement of dealers in the company’s products but also increases the sales during the contest period. Product display contests could be organized successfully in prosperous rural markets for promoting consumer goods such as shampoos, soaps and toothpaste.
g. Field demonstration
Field demonstration is based on the extension principle “seeing believes” and is one of the most effective methods to show the superiority of the company’s products to the customers. Spraying a particular brand of insecticide against insect pests and showing the farmer how effectively the insects are controlled , application of Urea fertilizer in Paddy fields to show the luxurious growth of the crop and demonstrating the use of tractor / implements for different agricultural operations. A progressive farmer who is an opinion leader is selected and the demonstration is conducted in his field in the presence of a group of farmers in the village. The farmers observe the results in the field and local dealer calls on them in their farms and persuades them to buy the particular brand of pesticide or fertilizer. Similarly effectiveness of detergents , vacuum cleaners, mosquito coils could be promoted by demonstrations in selected markets.
Field days are extension of field demonstrations. One of the main objectives of following modern agricultural practices is to increase the yield. The company organizes demonstrations in a piece of land belonging to progressive farmers. All the fertilizers, pesticides, Nutrients, etc are applied after making field observations. Just before harvest. All important farmers are invited to see demonstration plot and see for themselves how the yields are better in the plot compared to other fields. Field demonstrations / field days consume lot of time and efforts and therefore have to be planned well.
Buying rural media
More often than not , sometimes even in case of brands getting significant volumes from rural markets , the resources allocated for rural advertising are ad hoc or residual remnants of the overall budget.
Step 1
Familiarity with the markets one is buying media for is imperative.
It is imperative that one should have visited rural markets, spent time living with the rural families and perhaps, ploughing the fields before one attempts to buy any media.
Step 2
Gather data about rural areas, not only data like media habits or readership, etc. but also data about the market. How many villages are there in the district one is covering ; How many of these have primary schools or primary health centers; do they have roads ,electricity ,post offices, telephone facility , weekly markets,etc; What is the male/female split by village, literacy levels by sex,etc.
Step 3
You never buy media, you either tailor-make media or create media.
Options: Tile the village well and brand it.
Wall paintings may be effective or perhaps primary health centre or panchayat office is the best place to catch the residents’ attention.
Step 4
Choosing the media partner is important and should be done with care.
Step 5
Monitoring is the single most important factor for the success or failure of a rural media buying operation.
Strategy for distribution
Housewife – they need to be approached through ladies selling accessories on a day-to-day basis.
Salary earner & Professionals – Direct through Distributor or through traditional retail channel on a twice a week basis for the former case.
Cultivator & Wage Earner – they need to be approached through Local Traders on a daily evening basis.
Family – they can be approached through participation in Melas and Haats on a weekly basis. Stalls can be maintained either by the distributor or the company representative.
Thus, the strategy is to target the middle, upper middle and high class in the rural areas which around 10% of the total rural population zone wise. Targeting this segment can also be used at the same time for selling to lower and lower middle class in the urban areas which forms around 70% of the total urban population zone wise. The aim is to obtain synergies among income groups and education levels apart from their lifestyles and standard of living.
HISTORY- GODREJ
A young man gave up law and took up lock making. Events in the Godrej Story are only the small visible pieces of a larger continuously emerging picture - a picture alive and palpable in the mind of one man: the young lawyer-turned-lock maker - Ardeshir Godrej. He was the first Indian manufacturer to displace well entrenched foreign brands from the market.
The word Godrej, etched into the metal of his locks, became a symbol of self reliance for the generations that followed. With each new product Ardeshir changed perceptions about industry in India. He produced the finest security equipment, and then stunned the world by creating soap from vegetable oils. What started as a dream had become a movement .But it was left to another man to carry it forward, Ardeshir's brother, Pirojsha Godrej.
Pirojsha Godrej laid the foundations for a throbbing enterprise at a sprawling industrial garden township outside Mumbai.
It was here that the Godrej vision took concrete shape. In later years, its extent and scope was expanded greatly by his sons - Burjorji and Naoroji, Sohrabji. To this day, products that compete with the best in the world continue to come from the gates of Pirojshanagar. Godrej touches the lives of millions of Indians everyday. To them, it is a symbol of enduring ideals in a changing world. Every product, every new concept gives shape to their visions of tomorrow.
VISION: Godrej in every home and work place.
MISSION: Enriching quality of life everyday everywhere.We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
Board of Directors Qualifications
Ø Adi Godrej- Chairman & Managing Director M.S. (MIT)
Ø Jamshyd Godrej- B.S. (Illinois Institute of Technology)
Ø Nadir Godrej- B.S. (MIT), M.S.(Stanford), M.B.A. (Harvard)
Ø Bala Balachandran- Distinguished Professor at Kellogg
Ø Rama Bijapurkar- Faculty at IIMA, Marketing Strategist
Ø Bharat Doshi- FCA, FCS, LLM, PMD (Harvard)
Ø Anupam Puri- Ex-partner, McKinsey
Ø Hoshedar Press -Exec.Director & President B.Tech (IIT), PGDBM (IIM)
VALUES: Integrity, Trust, To serve respect, Environment.
Company Overview
Godrej Industries Limited, formally Godrej Soaps, is India's large manufacturer of oleochemicals. As well as the chemicals industry, Godrej also operates in the food and medical diagnostics markets. The company is part of the Godrej Group conglomerate. Godrej Industries is headquartered in Mumbai, India
Godrej Soaps Ltd. GCPL has emerged as a focused FMCG company. Its main product lines now consist of toilet soaps, liquid detergent, cosmetics such as hair care, fairness creams, etc and men’s toiletries. The company also undertakes contract manufacturing of toilet soap for third parties. All interests of the erstwhile Godrej Soaps in other businesses such as industrial chemicals, medical diagnostics and financial investments continued to remain in the existing entity, post demerger and the company has been renamed Godrej Industries Ltd (GIL)`
Godrej has the distinction of being the first company in the world to develop technology to make soap with vegetable oils, way back in 1930. In the early 90’s Godrej had created strong brand equities for its leading brands Cinthol, Ganga, Marvel, Evita etc. In 1994, Godrej entered into a strategic alliance with P&G for inter alia toilet soap business, under which Godrej used to manufacture soaps, which were marketed by a joint venture company. However post marketing alliance with P&G, the company lost significant part of its market share and subsequently the arrangement was discontinued. Godrej’s entire distribution network was then taken over by P&G. Godrej reestablished a distribution network by utilizing the network of group company Godrej Hicare for marketing of its brands and took over the entire distribution network from them.
Toilet soaps – Godrej brands
The company has been very aggressive during the year in the toilet soap business and has launched a number of new products in the market in the last two years. It pioneered the concept of a fairness soap through launch of Fairglow soap. New variants like Sandal and Natural in the Godrej No.1 brand also aided high growth. The company also launched new brands like Godrej Nikhar during the year.. The company’s oldest and well know brand Cinthol is proposed to be repositioned and relaunched
Segment
Brands
Toilet Soap
Cinthol, Fair Glow, Nikhar, Ganga, Goderj No 1
Cinthol
Cinthol is the flagship brand of Godrej Consumer Products Limited. The brand was launched in 1952 as the first Deodorant Soap in the country.
In 1960 Cinthol Deodorant Talc was launched. It continued to sell as a freshness talc thereafter. The brand, over the first three decades of its existence, took the platform of protection from body odor.
In 1986 , in an attempt to modernize the image "New Cinthol " soap was launched with new look packaging , shape and advertising using celebrities like Vinod Khanna and Imran Khan . This communication campaign developed strong "confident" , "active" associations with Cinthol which became a part of the essence of the brand
Godrej FairGlow
The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural Oxy-G ', which makes you fairer by reducing the dark melanin without changing the skin's natural balance. In addition, it also removes blemishes to give you a clear, glowing complexion.
Godrej FairGlow Soap was India's first and is the largest selling fairness soap. It helps you become fairer in a convenient way, simply through a daily bath. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter). It has a pleasant fragrance and is white in colour.
Godrej no1
Godrej no.1 is another popular soap from godrej product line , it is proved popular in the rural market due to the affordable price and the quality offered.it comes in three colours and flavour, it is giving good fight to the leading brands too.
Godrej Shikakai soap
This is also one of the popular soap of the godrej product line. This soap is used to wash hairs. Many people believes shikakai as a best thing to wash the hair . black ,long and silki hairs are result of utilization of the soap. This soap is giving fight to all the shampoo for washing the hairs. It is proved very popular among women.
All of these soaps can be further classify in to three basic segments
Price Segments of Bath Soaps
Segment
Price
Weight
Premium
> Rs.15
75 gm.
Popular
Rs.8-15
75 gm.
Economy
< Rs.8
75 gm.
Godrej refreshes itself
Godrej Consumer Products has beaten the stagnation in the FMCG segment through a host of initiatives that saw it introducing new price points, enter new territory and strengthen its brands.
FORTIFYING its soap brands, introducing new price points, entering new categories such as babycare and hand sanitisers ... it has been a busy year at Godrej Consumer Products Ltd (GCPL). While FMCG categories such as toiletries, hair care and soaps have been under pressure, the company has outperformed the still sluggish FMCG industry primarily because it has been operating on a relatively smaller base compared to the biggies, and also because of the urban-centric nature of its brands.
Focusing on its stronger and faster growing brands, the Rs 550-crore Godrej Consumer Products began the year by extending Godrej No.1 ayurvedic soap to more markets and at an attractive price. At the same time it also decided to capitalise on the success of its FairGlow soap, instead of trying to push the languishing cream, to take on Hindustan Lever Ltd (HLL) in the fairness segment.
In fact, Godrej is almost consciously targeting the fairness cream users through its newly relaunched fairness soap. `The cool way to fairness and freedom from oily skin' is the message the company wants to convey to all its prospective users. Launching the All New FairGlow soap, Hoshedar K. Press, Executive Director & President, Godrej Consumer Products, said, "There is an increasing demand among Indian women for convenient and inexpensive solutions to skincare and a need to look good naturally. The soap keeps this need in mind."FairGlow soap, a pioneer in its category which managed to find a niche in the fairness market in spite of the looming presence of HLL's mega brand Fair & Lovely, has intentions of doubling its turnover from Rs 60 crore to Rs 120 crore within the first year of the relaunch. The brand was relaunched last month.
According to industry observers, HLL is not in a position to push its Fair & Lovely soap for fear of losing its share in the fairness cream market.
This situation gives Godrej an opportunity to strengthen its position in the fairness soaps category while phasing out its cream, which in any case did not manage to register any significant volumes.
In fact, the company suffered a loss in sales for its toiletries division primarily due to the failure of its FairGlow cream. Admits Press, "FairGlow cream did badly, leading us to withdraw the product. Our toiletries margins have been affected by its failure." Besides, Godrej Shave Gel for men has also failed to register any significant volumes.
The relaunch of FairGlow soap is expected to add weight to Godrej's soap portfolio. Says Anand Shah, FMCG Analyst at ICICI Securities, "FairGlow has been registering declining sales over the past two years. The All New Godrej FairGlow is aimed at female teenage college students instead of the previous positioning of that for women in their early 20s. This move could help GCPL build a younger clientele and broaden its target base."
Besides, the largest soap brand in Godrej's kitty, Godrej No. 1, managed to maintain robust growth and today accounts for nearly 60 per cent of GCPL's toilet soap volumes. Its low pricing and value-for-money proposition has worked for the company and it has been steadily increasing its variants with an ayurvedic offering.
Observes Shah, "Toilet soaps are likely to maintain robust growth of 15-20 per cent on the back of FairGlow's relaunch and the continuing growth of Godrej No.1." The new unit for toilet soaps in Himachal Pradesh would also lead to an improvement in profitability, as it is located in a tax-free zone. The unit would provide income-tax relief and exemption from excise duty, which is likely to improve the company's soap margins.
Meanwhile, its Cinthol soap franchise has taken a backseat, primarily due to lack of proper positioning. "Cinthol as a brand has been over-extended and we are in the process of redefining the positioning," says Press. This is being done through a new campaign and positioning statement which is likely to be unveiled soon through its advertising agency, Orchard. Last year, Godrej decided to stretch the Cinthol brand to a hand sanitiser. "There is heightened hygiene consciousness emerging among consumers and we realised it would be ideal to introduce the hand sanitiser, a revolutionary concept for germ-free hands," says Press. Godrej already supplies hand sanitisers under the Cinthol brand to West Asia. The SARS epidemic did help in gaining sales for the product.
Beefing up its rural initiatives to accelerate sales growth, Godrej also decided to increase its rural penetration by introducing small unit packs of its soap brands in the Bimaru States of Bihar, Madhya Pradesh and Uttar Pradesh. By introducing its three power soap brands - Cinthol, FairGlow and Godrej No.1 - in 50gm SKUs (stock keeping units), the prices of these respective brands have been pegged between Rs 4 and Rs 5.
"We have decided to target these States with low per capita incomes through our small unit packs. This will be a great opportunity to grow since consumption levels of soap are still low in these parts. These small pack sizes will not be made available nationally and are meant specifically for these three States," says Press.
Conclusion....
It is estimated that one in three Indians uses a Godrej product every day. And it is very likely that Godrej Properties will be among the top three retailers in the country over the next few years considering its awesome land bank. this is the reason why Godrej is becoming famous today and used extensively in India. There are several products of Godrej and thus cover good market of India.
: BIBLIOGRAPHY
Reports and Magazines
Saket Industrial Digest
CMIE year book
RBI yearly report
Economic Survey
Online data
www.indiainfoline.com
www.worlddentalfoundation.com
www.euqitymaster.com
www.Godrej .com
www.colgate-palmolive.com
www.p&g.com
Search Engine
www.google.com
www.khoj.com
Mohammadarif.A.Shaikh 08OPREFACE
Today if we go through the managerial concept then we can say recruitment has become the base of every organization and the most important platform has been given to recruitment process is by the Indian economy and the economical development in different states of American as well as in various part of the world. Today a recruitment consultancy institute has become the care base of students who wish to enter in the organization without recruitment we can not function in any organization.
Today achieve mastery in the performance in the field one need to take practical knowledge training and experience of the work our recruitment process help us in learning the various aspects that a manager perform in managing an organization. So the study of recruitment process helps the student to do better in there H.R career life after MBA.
We have tried the best to explain this in formation in our project report. We hope this project may serve overall information about the student’s perceptions.
Recruitment is overall to satisfy organization to through creating and changing education styles and value with the student’s has a days the world in becoming small and it us coming to the doorstep of every house in the world through the great and unimaginable development of recruitment process and it concept.
ACKNOWLEDGEMENT
We sincere attempt has been made to include everything regarding the subject that was within reach. We will consider our effort rewarded if this shot piece of work being better under standing of the subject.
We are highly thankful to our Prof. Cdr.L.Radhakrishnan. for guided us in understanding different recruitment process of Bank of Baroda as a part of our study required at MBA level. The detailed information of various functional and operation department has helped us a lot in submitting the report.
This report is fruit of many people’s effort and thoughts, directors indirect each has contributed inside facts, experience and personal support during its preparation.
PURPOSE OF THIS REPORT
The student of MBA have to make a group report for the purpose of our live-project so our group has selected to make a report on the
This has helped the students to enrich their theoretical knowledge about the working and functioning of all departments in the particular area of the management and we have achieved the opportunities to do a work group report.
In this report we are very thankful to our professor Cdr.L.Radhakrishnan who gave us important guidance to fulfill the need of the report.
INDEX
Sr.No
Title
Page No.
01
Introduction
01
02
Recruitment Needs
02
03
Purpose & Importance of Recruitment 03
04
Recruitment Process 04
05
Recruitment Policy Of a Company
06
Recruitment in Bank of Baroda
07
Educational qualifications and experience
08
Selection procedure
Introduction
According to EDWIN B FLIPPO, "Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization."Thus, recruitment enables the organization to select suitable employees for different jobs. It is the most important function of the personnel department.
It is concerned with the discovery of the sources of manpower and tapping of these sources so that the potential employees are properly evaluated and the new employees are placed and inducted to fill up the vacant position in the organization.
Recruitment aims at developing and maintaining adequate supply of labor force according to the need of the organization. It is the process of attracting qualified applicants for a specific job. The process begins when applications are brought in and ends when the same is finished. The result is a pool of applicants, from where the appropriate candidate can be selected.
It is the process to discover sources of manpower to meet the requirement of staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force. Recruitment of candidates is the function preceding the selection, which helps create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. The main objective of the recruitment process is to expedite the selection process. Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified applicants for the future human resources needs even though specific vacancies do not exist. Usually, the recruitment process starts when a manger initiates an employee requisition for a specific vacancy or an anticipated vacancy.
RECRUITMENT NEEDS
There are three types of recruitment needs Viz:
µ PLANNED:- The needs arising from changes in organization and retirement policy.
µ ANTICIPATED:- Anticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment.
µ UNEXPECTED:- Resignation, deaths, accidents, illness give rise to unexpected needs.
Purpose & Importance Of Recruitment Ø Attract and encourage more and more candidates to apply in the organization.
Ø Create a talent pool of candidates to enable the selection of best candidates for the organization.
Ø Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
Ø Recruitment is the process which links the employers with the employees.
Ø Increase the pool of job candidates at minimum cost.
Ø Help increase the success rate of selection process by decreasing number of visibly under qualified or overqualified job applicants.
Ø Help reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.
Ø Meet the organizations legal and social obligations regarding the composition of its workforce.
Ø Begin identifying and preparing potential job applicants who will be appropriate candidates.
Ø Increase organization and individual effectiveness of various recruiting techniques and sources for all types of job applicants
Recruitment Process The recruitment and selection is the major function of the human resource department and recruitment process is the first step towards creating the competitive strength and the strategic advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews and requires many resources and time. A general recruitment process is as follows:
Identifying the vacancy: The recruitment process begins with the human resource department receiving requisitions for recruitment from any department of the company.
These contain:
§ Posts to be filled
§ Number of persons
§ Duties to be performed
§ Qualifications required
§ Preparing the job description and person specification.
§ Locating and developing the sources of required number and type of employees (Advertising etc).
§ Short-listing and identifying the prospective employee with required characteristics.
§ Arranging the interviews with the selected candidates.
§ Conducting the interview and decision making
1. Identify vacancy.
2. Prepare job description and person specification.
3. Advertising the vacancy.
4. Managing the response.
5. Short-listing.
6. Arrange interviews.
7. Conducting interview and decision making.
The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision making, conveying the decision and the appointment formalities.
Sources of Recruitment Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment.
Sources of Recruitment
Internal Sources Of Recruitment F TRANSFERS:- The employees are transferred from one department to another according to their efficiency and experience.
F PROMOTIONS:- The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience.
F Others are Upgrading and Demotion of present employees according to their performance.
F Retired and Retrenched employees may also be recruited once again in case of shortage of qualified personnel or increase in load of work. Recruitment such people save time and costs of the organizations as the people are already aware of the organizational culture and the policies and procedures.
F The dependents and relatives of Deceased employees and Disabled employees are also done by many companies so that the members of the family do not become dependent on the mercy of others.
External Sources Of Recruitment F PRESS ADVERTISEMENTS:- Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach. F EDUCATIONAL INSTITUTES:- Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment. F PLACEMENT AGENCIES:- Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. Theseagencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing) F EMPLOYMENT EXCHANGES:- Government establishes public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable candidates. F LABOUR CONTRACTORS:- Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs. F UNSOLICITED APPLICANTS:- Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization. F EMPLOYEE REFERRALS / RECOMMENDATIONS:- Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union. F RECRUITMENT AT FACTORY GATE:-Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.
Factors Affecting Recruitment The recruitment function of the organizations is affected and governed by a mix of various internal and external forces. The internal forces or factors are the factors that can be controlled by the organization. And the external factors are those factors which cannot be controlled by the organization. The internal and external forces affecting recruitment function of an organization are: Factors Affecting Recruitment
Internal Factors Affecting Recruitment The internal forces i.e. the factors which can be controlled by the organization are:
1. RECRUITMENT POLICY
The recruitment policy of an organization specifies the objectives of recruitment and provides a framework for implementation of recruitment programmers. It may involve organizational system to be developed for implementing recruitment programmers and procedures by filling up vacancies with best qualified people.
FACTORS AFFECTING RECRUITMENT POLICY:-
• Organizational objectives. • Government policies on reservations.
• Personnel policies of the organization and its competitors. • Preferred sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications. 2. HUMAN RESOURCE PLANNING:- Effective human resource planning helps in determining the gaps present in the existing manpower of the organization. It also helps in determining the number of employees to be recruited and what qualification they must possess.
3. SIZE OF THE FIRM:- The size of the firm is an important factor in recruitment process. If the organization is planning to increase its operations and expand its business, it will think of hiring more personnel, which will handle its operations.
4. COST:- Recruitment incur cost to the employer, therefore, organizations try to employ that source of recruitment which will bear a lower cost of recruitment to the organization for each candidate.
5. GROWTH AND EXPANSION:- Organization will employ or think of employing more personnel if it is expanding it’s operations.
External Factors Affecting Recruitment The external forces are the forces which cannot be controlled by the organization. The major external forces are:
1. SUPPLY AND DEMAND:- The availability of manpower both within and outside the organization is an important determinant in the recruitment process. If the company has a demand for more professionals and there is limited supply in the market for the professionals demanded by the company, then the company will have to depend upon internal sources by providing them special training and development programs.
2. LABOUR MARKET:- Employment conditions in the community where the organization is locatedwill influence the recruiting efforts of the organization. If there is surplus of manpower at the time of recruitment, even informal attempts at the time of recruiting like notice boards display of the requisition or announcement in the meeting etc will attract more than enough applicants.
3. IMAGE / GOODWILL:- Image of the employer can work as a potential constraint for recruitment. An organization with positive image and goodwill as an employer finds it easier to attract and retain employees than an organization with negative image. Image of a company is based on what organization does and affected by industry. For example finance was taken up by fresher MBA’s when many finance companies were coming up.
4.POLITICAL-SOCIAL-LEGALENVIRONMENT:-Various government regulations prohibiting discrimination in hiring and employment have direct impact on recruitment practices. For example, Government of India has introduced legislation for reservation in employment for scheduled castes, scheduled tribes, physically handicapped etc. Also, trade unions play important role in recruitment. This restricts management freedom to select those individuals who it believes would be the best performers. If the candidate can’t meet criteria stipulated by the union but union regulations can restrict recruitment sources.
5. UNEMPLOYMENT RATE:- One of the factors that influence the availability of applicants is the growth of the economy (whether economy is growing or not and its rate). When the company is not creating new jobs, there is often oversupply of qualified labor which in turn leads to unemployment.
6. COMPETITORS:- The recruitment policies of the competitors also effect the recruitment function of the organizations. To face the competition, many a times the organizations have to change their recruitment policies according to the policies being followed by the competitors.
Recruitment Policy Of a Company In today’s rapidly changing business environment, a well defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process. It specifies the objectives of recruitment and provides a framework for implementation of recruitment programme. It may involve organizational system to be developed for implementing recruitment programmes and procedures by filling up vacancies with best qualified people.
COMPONENTS OF THE RECRUITMENT POLICY
The general recruitment policies and terms of the organization
Recruitment services of consultants
Recruitment of temporary employees
Unique recruitment situations
The selection process
The job descriptions
The terms and conditions of the employment
A recruitment policy of an organization should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with dignity and respect.
Unbiased policy.
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weightage during selection given to factors that suit organization needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and employment relationship.
Integrates employee needs with the organisational needs.
FACTORS AFFECTING RECRUITMENT POLICY
Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization.
Recruitment costs and financial implications.
Recent Trends in Recruitment The following trends are being seen in recruitment:
OUTSOURCING:-In India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organizations for their services.
Advantages of outsourcing are:
1. Company need not plan for human resources much in advance.
2. Value creation, operational flexibility and competitive advantage
3. turning the management's focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
5. Company can save a lot of its resources and time
POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organization might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.
E-RECRUITMENT:- Many big organizations use Internet as a source of recruitment. E- Recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.
Advantages of recruitment are:
Low cost.
No intermediaries
Reduction in time for recruitment.
Recruitment of right type of people.
Efficiency of recruitment process.
E-Recruitment The buzzword and the latest trends in recruitment is the “E-Recruitment”. Also known as “Online recruitment”, it is the use of technology or the web based tools to assist the recruitment process. The tool can be either a job website like naukri.com, the organization’s corporate web site or its own intranet. Many big and small organizations are using Internet as a source of recruitment. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements. The internet penetration in India is increasing and has tremendous potential. According to a study by NASSCOM – “Jobs is among the top reasons why new users will come on to the internet, besides e-mail.” There are more than 18 million resume’s floating online across the world.
The two kinds of e- recruitment that an organization can use is –
Ÿ Job portals – i.e. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization.
Ÿ Creating a complete online recruitment/application section in the companies own website. - Companies have added an application system to its website, where the ‘passive’ job seekers can submit their resumes into the database of the organization for consideration in future, as and when the roles become available.
Ÿ Resume Scanners: Resume scanner is one major benefit provided by the job portals to the organizations. It enables the employees to screen and filter the resumes through pre-defined criteria’s and requirements (skills, qualifications, experience, payroll etc.) of the job.
Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the “passers-by” applicants. Online recruitment helps the organizations to automate the recruitment process, save their time and costs on recruitments.
Online recruitment techniques
Giving a detailed job description and job specifications in the job postings to attract candidates with the right skill sets and qualifications at the first stage.
E-recruitment should be incorporated into the overall recruitment strategy of the organization.
A well defined and structured applicant tracking system should be integrated and the system should have a back-end support.
Along with the back-office support a comprehensive website to receive and process job applications (through direct or online advertising) should be developed.
Therefore, to conclude, it can be said that e-recruitment is the “Evolving face of recruitment.”
RECRUITMENT IN Bank of Baroda:-
Post
Scale
Age as on 01.01.2009Min 21 years Max
Chartered Accountant
III
35
Civil Engineer
III
35
Economist
III
35
Security Officer
II
45
Computer Officer
II
30
Law Officer
II
35
Chartered Accountant
II
30
Civil Engineer
II
30
Electrical Engineer
II
30
Industrial Development Officer
II
32
Hindi Officer
I
30
ASSISTANT GENERAL MANAGER
IV
40
Chief Information Security Officer
V
48
Clerical Staff
-
28
Other staff
-
28
RESERVATIONS
SC
Scheduled Caste
ST
Scheduled Tribe
OBC
Other Backward Classes
GEN
General Category
OH
Orthopaedically Handicapped
HI
Hearing Impaired
VI
Visually Impaired
Details of Reservation:
1. The number of vacancies as also the number of reserved vacancies is provisional and may vary according to the actual requirement of the Bank.
2. The reserved vacancies of SC/ST/OBC as above also include the backlog vacancies, if any of the respective category and adjustment of excess representations in SC and OBC categories.
3. * The reservation for Persons with Disabilities (PWD) is on horizontal basis and the selected candidates will be placed in appropriate category (viz. SC/ ST/ OBC/General) to which they belong.
4. Reservation for Persons with Disabilities: The definitions of the Hearing Impaired (HI) and Orthopaedically Handicapped (OH) and Visually Impaired (VI) are as prescribed in “The Persons with Disability (Equal Opportunities, Protection of Rights & Full Participation) Act, 1995”
(a) It is clarified that Persons with Disabilities will have to work in branches/offices which have posts identified by the Bank, as suitable for them.
(b) Wherever written examination is held, candidates who are visually impaired and such others whose writing speed is affected by cerebral palsy can use own scribe at their cost during the written examination. In all such cases where a scribe is used, the following rules will apply:
i) The candidate will have to arrange his/her own scribe at his/her own cost.
ii) The academic qualification of the scribe should be one grade lower than the stipulated eligibility criteria.
iii) The scribe should be from an academic discipline other than that of the candidate. The scribe should possess less mark than the candidate and not more than 60% marks in his own academic stream which has to be different from that of the candidate.
iv) Both the candidate as well as the scribe will have to give a suitable undertaking, confirming that the scribe fulfils all the stipulated eligibility criteria for a scribe as mentioned above, Further, in case it later transpires that he did not fulfill any of the laid down eligibility criteria or suppressed material facts, the candidature of the applicant will stand cancelled, irrespective of the result of the written test.
v) Such candidates who use a scribe shall be eligible for extra time of 20 minutes for every hour of the examination.
Note: It is clarified that it may not be possible to employ Persons with Disabilities in all Offices / Branches of the Bank and they will have to work in the post identified by the Bank suitable for them. Candidates belonging to Reserved Category, including persons with Disabilities, for which no reservation has been announced, are free to apply for vacancies announced for General Category.
EDUCATIONAL QUALIFICATIONS AND EXPERIENCE:
a. For posts where experience is essential/ desirable, it should be on full time basis.
b. Candidates must possess the qualifications/ experience as on the last date stipulated for the submission of application.
c. Experience in the relevant field of the post applied for will only be counted.
d. The candidates for all posts / scales should have proficiency in computer skills /working knowledge of application packages used in Automation such as MS-Office, Foxpro etc.,
Post
Essential Qualification / Relevant full time post qualification
experience
Chartered
Accountant
Qualification: Graduate of any recognized university with a pass in the final examination of the Institute of Chartered Accountants of India.
Experience: 2 years experience in Commercial Banks / Finance Companies / Industrial Undertakings.
Civil
Engineer
Qualification: Degree in Civil Engineering (B.E., B.Tech, B.Sc, Engg full time course from a recognized university)
Experience: Minimum 7 years experience in the respective field preferably in Central / State Government / PSUs / reputed companies.
Economist
Qualification: Postgraduate degree in Economics/Econometrics with a minimum of 50% marks from a UGC/AICTE recognized / accredited University / Institution. Desirable: Ph.D in Economics
Experience: Minimum 5 years experience in Planning Dept. of a Bank/ Financial Institution.
Security
Officer
Qualification / Experience: 5 years commissioned service in Army / Navy / Air Force or a Police Officer not below the rank of Assistant Superintendent of Police / Deputy Superintendent of Police with 5 years of Service or an Officer of identical rank in paramilitary forces with 5 years of service.
Computer
Officer
Qualification : (any of the following from a recognized university/Institution)
(1) B.E/ B.Tech in CSE/IT/ECE
(2) M.Sc in S/W or I.T
(3) M.C.A
Experience: (in any one or more areas of the following)
(1). Oracle Data Base administration.(2). System administration with exposure in UNIX/ WINDOWSSERVERS.(3). Network management and monitoring.(4). Data Centre administration/ infrastructure management.(5). Internet and other web enabled applications (development and maintenance)(6). Application programmers (with exposure in .NET, VB, ASP, ORACLE, JAVA, etc.(7). Hardware management and maintenance.(8). IT Security administration and compliance.(9). Server and storage management (IBM systems and storage)(10). Performance measurement.(11). Tandem switch maintenance(12) BASE24 software
Legal Officer
Qualification: Degree in Law (B.L / L.L.B) from a recognized University.
Experience: Must have enrolled as an Advocate with at least 5 years of active practice at Bar (or) Must have enrolled as an Advocate with at least 3 years active practice at Bar plus 2 years experience as Legal Officer in PSUs / reputed companies / Legal Department of Central /State Governments / Judicial Service.
Civil Engineer
Qualification: Graduate of any recognized university with a pass in the final examination of the Institute of Chartered Accountants of India. Experience: Not compulsory.
Electrical
Engineer
Qualification : Degree in Civil Engineering (B.E., B.Tech, B.Sc Engg. full time course from a recognized university)
Experience: Minimum 5 years experience in the respective field preferably in Central/ State Government/ PSUs / reputed companies.
Industrial
Development
Officer
Qualification: First class Engineering degree from a recognized University preferably with MBA in finance.
Experience: Minimum 4 years in industry or banking
Hindi Officer
Qualification: Post Graduate Degree in Hindi with English as a subject in Degree level or Post Graduate Degree in Sanskrit with English and Hindi as subjects in the Degree level.
Experience: 2 years Experience in translation in a full time period post in an organization.
Clerical Staff
A 10 + 2 / Intermediate / HSC pass with 60% marks (55% for SC/ST/PWD & XSM OR A Degree with minimum of 50% marks (45% for SC/ST/PWD & XSM)
SELECTION PROCEDURE:
1) The selection will be based on Interview for Post Code 1 to 4 (For these posts, the Bank at its discretion may relax the eligibility criteria in case of deserving candidates). The Bank reserves the right to call only the requisite number of candidates for the interview after preliminary screening / short listing based on qualification/ suitability and experience etc.
2) The selection will be based on Written Examination and Interview for Post Code 5 to 12. Depending upon the number of vacancies, only those candidates who rank sufficiently high in the written examination will be called for the interview. The written examination comprises of Objective and Descriptive papers.
3) OBJECTIVE TEST: (Duration 135 minutes) Sl.No. Name of the Test Medium of Exam
1 Test of Reasoning English & Hindi
2 Quantitative Aptitude English & Hindi
3 English Language English
4 Tests of Professional Knowledge English & Hindi
4) DESCRIPTIVE PAPER of one hour duration consisting of 5 questions with internal options on subject of specialisation. The candidates have the option to answer the descriptive paper also in Hindi or English.
NOTE: Candidates have to pass in each of the objective and descriptive tests separately. Depending on the number of vacancies the qualified candidates will be merit ranked on the basis of total marks obtained in Objective Test and Descriptive Paper together. All candidates will be subjected to Objective Test followed by Descriptive Paper for respective specialisation. The final selection would be on the basis of the aggregate marks obtained by the candidates in the written examination and Interview and strictly in the order of Merit. Mere eligibility / pass in the test shall not vest any right in a candidate for being called for the Interview.
CALL LETTERS:-
The date of the written examination is TENTATIVELY FIXED. However, it will be intimated in the call Letter along with the Centre/Venue for the Examination, well in advance of the date of the Written Examination. The Date of Interview will be informed later. Call letter for the Written Examination/ Interview and any other communication in future will be sent to the eligible candidates at the correspondence address given in their application form by ordinary post/ courier. Requests for sending letters to a different address subsequently will not be entertained.
APPOINTMENT, PROBATION AND TRAINING:-
The candidates selected will be subject to such terms and conditions as existing in the Bank at the time of appointment.
ACTION AGAINST CANDIDATES FOUND GUILTY OF MISCONDUCT:-
Candidates are warned that they should not furnish any particulars that are false, tampered, fabricated or suppress any material information while filling up the application form and submitting the certified copies/ testimonials. At the time of interview, if a candidate is (or has been) found guilty of 1. Impersonating or procuring impersonation by any person or 2. Resorting to any other irregular or improper means in connection with his/her candidature for the selection or 3. Obtaining the support of his/her candidature by any means; such candidate may, in addition to, rendering himself/herself liable to criminal prosecution will be liable (a) to be disqualified from the interview for which he/she is the candidate (b) to be debarred either permanently or for a specific period from any examination or selection held by the Bank. The Bank would be analyzing the responses of a candidate with other candidates, who appeared for the examination to detect patterns of similarity. If as per the laid down procedure it is suspected that the responses have been shared and the scores obtained are not genuine/ valid, the Bank reserves the right to cancel his/her candidature.
Conclusion:
We arrive at the conclusions that the recruitment process in the Bank of Baroda is so good and it is effective in work. It take the help of internal sources and external sources for the recruitment in the bank. It helps Bank of Baroda to reduce there burden of recruiting wrong people in the bank.
Marketing Projects of MBA
This is your new blog post. Click here and start typing, or drag in elements from the top bar. PREFACE
Today if we go through the managerial concept then we can see different products of the same company the base of every organization and the most important platform has been given to product-mix and productline is by company for the economical development of the company in different states country as well as in various part of the world. Today a product line has become the base of FMCG company who wish run there business successfully without product and productline the company cannot sustain in the present market.
Today achieve mastery in the performance in the field one need to take practical knowledge training and experience of the work our productline process help us in learning the various aspects of customer preferences. So the study of product-mix productline process helps the company to do better in there marke shares.
We have tried the best to explain this in formation in our project report. We hope this project may serve overall information about the student’s perceptions.
Product-mix and Productline is overall to satisfy organization to through creating and changing customers styles and value with the customer has a days the world in becoming small and it us coming to the doorstep of every house in the world through the great and unimaginable development of product-mix and productline and it concept.
ACKNOWLEDGEMENT
We sincere attempt has been made to include everything regarding the subject that was within reach. We will consider our effort rewarded if this shot piece of work being better under standing of the subject.
We are highly thankful to our Prof. Mr.AnkurGangel for guided us in understanding the product and productlines of Godrej company as a part of our study required at MBA level. The detailed information of various functional and operation department has helped us a lot in submitting the report.
This report is fruit of many people’s effort and thoughts, directors indirect each has contributed inside facts, experience and personal support during its preparation.
PURPOSE OF THIS REPORT
The student of MBA have to make a group report for the purpose of our live-project so our group has selected to make a report on the.
This has helped the students to enrich their theoretical knowledge about the working and functioning of all departments in the particular area of the management and we have achieved the opportunities to do a work group report.
In this report we are very thankful to our professor Mr.AnkurGangel who gave us important guidance to fulfill the need of the report. INDEX
1. Introduction of company.
2. Classification of products.
3. Product Mix and Line Decisions.
4. Growth strategies for FMCG.
5. Managing line extensions-A closer look.
6. Conclusion.
Introduction of Company
Godrej Group Profile
Started in 1897 as locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej success has been driven by the company's commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability.
In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization's history. Today Godrej is delivering consumers exciting innovations across a spectrum of businesses. The company's pursuit of excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents were unharmed; an equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej management understands that the company's greatest asset is the trust and faith that consumers have reposed in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does.
Godrej ethical and visionary practices have allowed the company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agro products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth.
The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.
We shall operate in our existing and new businesses which profitably capitalize on our corporate image of quality and integrity. Our objective is to delight our customers both in India and abroad. We shall achieve this objective by re-engineering our businesses and through continuous improvement in quality, cost and customer service. We shall strive for excellence by nourishing, developing and empowering our employees and suppliers. We shall encourage an open atmosphere for conducive learning and teamwork"
Mr. A.B.Godrej, Chairman of Godrej
We are in the business of household and environmental pest control solutions. We have a mission to accomplish, and this is our mission:
Accelerate the growth of the Indian household insecticides market,
Strengthen our leadership position in India and
Rapidly globalize our business.
We shall achieve this objective by:
Understanding, continuously tracking and satisfying changing customer needs,
Continuous improvement in quality, cost and distribution,
Nurturing, developing and empowering our employees and
Encouraging an open atmosphere conducive to learning and teamwork.
The management philosophy of GSLL can be expressed in a single word: “PRIDE”
· Passion
· Respect for people
· Integrity
· Dedication
· Extraordinary Creativity
Product of Godrej company:
When applying the generic product concept, two key issues shoud be kept in mind. First, it is the consumer’s view of what a given product represents. Thus, a marketer shoud determine what that product means to the consumer befor desigining the product. Secoundly, aspirations of consumes differ from place to place and time. Thus , the same product (such as a soap) may satisfy different generic requirements (such as amean of bathing; washing cloth etc). The marketer shoud design the product after considering the impact of different possible generic requirements.
At the next level, a marketer identify many tangible aspects in the form of features, style, packaging, quality, etc.
CLASSIFICATION OF PRODUCTS:
Depanding on the tangibility and durability found in an offering, products are typically classified as service, durable and non-durable products. As the name sugggests, service has more of intangibless, whereas durable products offer both tangibility and durability. Non-durabile products are normally consumed fast and hence purchased regularly. Here, consumers tend to spend the minimum of effort in comparisons and buying the item.
Items of Goderj are as follow:
Consumer products
(1)Appliance(2)Locks(3)Furniture(4)Security Equipment (5)Office Automation(6)Conferencing Solutions(7)Typewriters (8)Vending Machines(9)Soaps & Personal care(10)Foods (11)Air Care(12)Household Insecticides(13)Housing(14)Pest Management Services
Industrial products
1)Storage solutions(2) Automated Warehousing(3) Material Handling Equipment(4) Process Equipment(5) Precision Components & System(6) Machine Tool Service(7)Electrical & Electronics(8) Tooling(9)IT Solutions(10) PLM Solutions(11) Medical Diagostics(12) Agro Products(13) Chemical(14) Construction Material & Services(15)Lawkim Motors Group
Product Mix and Line Decisions:
Product Mix:
It is the set of all product lines and items that a particular company offers to buyers. The width of a product mix refers to how many different product lines a company carries. The Godrej have different product mix in India consists of appliances, Soaps & Personal care etc.
The depth od a product mix refers to how many variants of each product are offered in the line,eg the cinthol soaps are coming in diferent formulations and in different colours and hence has aproduct mix depth of nine or ten. This kind of assortment is popularly referred asa stock keeping units (SKUs).
The consistency of a product mix refers to how closely related the various product line are in end use. Hence, Godrej product lines are consistent in the sense that are all food products.The width, depth and consistency of product mix enables a company to define its product portfolio, appeal to different consumer needs/segments and encourage one-stop buying. A broad width or dep mix goes tosatisfy the needs of several consumer groups and maximise shelf-space and sustain dealer support.
A consistent mix is generally easier to manage that diversified mix. It allow the marketer to concentrate on its core competence, build or create a strong image among consumers and trade channels. However, excessive consistency may leave the marketer to a narrow rang of business.
Product Line:-
It is a group of products that is closely related because thay perform a similar function, targeted at the same customer groups, and marketed through the same channels.
1. Line streching: Decisions pertaining to line stretching are taken whenever the marketer feels he can increase his profits by either adding or dropping items from the line. It can be upwards, downwards or both ways.
Downward stretch takes place when the company finds that its offerings are at the high price end of the market and then stretch their line downwards.For example Cinthol plan soap began at premium end and then the downmarket cinthol limebar was introduce to tap the lower segment.
Conversely, upward stretch occurs when a company enters the upper end through a line extension. The reasons for this may be a higher growth rate, better margins or simply a wish to be a full line marketer. A successful upward strech would be that of Cinthol, which started from a hygenic bath soap for the masses to a premium quality like sinthol lime for the higher strata of society. Throughout this stretch the brand has used hygienie as its core benefit, so that there was no dissonance in the mind of consumers.
2.Line filling:- A product line can also be lengthened by adding more items within the present product range. There are reveral reasons for line filling.
· Reaching for incremental profits.
· Trying to satisfy dealers who complain about lost sales because of missing items on the line.
· Trying to utilise excess capacity.
· Trying to offer a full line of the product.
· Trying to plug holes in the positioning map.
The launch of Cinthol, in different variants is an example of line filling. Today Cinthol is a lime shop with yellow packaging and a cologne cariation with blue wrapping apart from the initial Cinthol fresh. There is also a Cinthol International, packed in a red pack with a picture of mountains depicting freshness.
The company needs to diferentiate each item must possess a difference which sets it apart from the others. We have later on discussed various significant dimensions relating to product positioning and differentiation.
3.Line modernization:- Even when the product line length is adequent, the line might to be modernized. The issue is whether to overhaul the line completely or one at a time. A piecemeal approach allows the company to see how customers and dealers react to the new style. Piecemeal modernization is less of a drain on the company’s cash flow. A mojor disadvantage of picemeal modernization is that it allows competitors to see changes and start re-designing their own line.
In the repidly changing market, product modernization is carried out continuously. Because competitors are constantly upgrading their options,each company must redesign their own offering. A Godrej woud like to upgrade customers to higher-valued, higher-priced items. A major issue is the timing of the product line improvements so that thay do ot happen too early and damage the sales of their current product line, or come out too late so that the competition can establish a strong foothold.
4.Line featuring:- In the case of durible products, marketers at times select one or a few items to “feature”. The idea is to attract consumers into the showrooms and then try to get them exposed to other models. At times, the marketer will feature a high end item to lend prestige to the product line. These products act as “flagships” to enhance the whole line.
Sometimes a company find one end of its line selling well and the other poorly. The company may try to boost the demand for the slow-moving items, especially if they are produced in a factory that is lying idle due to the lack of demand.
GROWTH STRATEGIES FOR FMCG
The fundamental characteristics of fast moving consumer goods and their markets. We shall now consider the various growth strategies follwed ny Godrej FMCG company.
Typically, the success of an Godrej FMCG depends greatly on its marketing strategy. Typically, a marketer pursues a wide combination of strategies. For instance, when prices are competitive the company would use an extensive distribution network, design suitable advertising and sales promotion schemes from time to time. However, what is it that can make am Godrej FMCG brand sell more than its competitor? What makes some outstanding brands? How does a marketer convert a customer from buying a generic soap to buying a particular brand, say Godrej No1. Or what makes Godrej sheving cream a symbol of good sheaving cream for over a century? Let us now discuss various methods employed by the Godrej in an FMCG market.
1.Multibrand Strategy:- A company often nurtures a number of brands in the same category. There are various motives for doing this. This main retionale behind this strategy is to capture as much of the market share as possible by trying to cover as many segements as possible, as it is not possible for one brand to cater to the entire market. This also enables the company to lock up more distributor shelf space.
Take, the strategy adopted by Godrej company. They have introduced many brands in the soaps and other products so that no segement is left untouched. It has Godrej No1 Rose, in the ultra-premium segment, Godrej No.1 for the economy segement and brands like Cinthol lome, cinthol fresh for the intervening segments. In the hair care market also.It has thus covered itself agenst any form of attack and captured market shares in every possible segment.
Another reasos to adopt multiple brand strategy is to protect its major brand by setting up flanked brands. Sometimes the company inherits different brand names in the process of acquiring other companies and each brand name has a loyal following.
2.Product flanking:- Product flanking refers to the introduction of different combitions of products at different prices, to cover as many market segements as possible. It is basicaly offering the same product in different sizes and price combinations to tap diverse market opportunities. The introduction of Ezee in small sachet has, for example, made them affordable to the lower segment of consumers who previously could not afford to spend anywhere between Rs.30 and Rs.40 for astandard bottel of a Ezee. Another the sachet wereinitially launched to guard the main brand surprisingly they have now become a big success among new and small quantity users.
The idea behind this concept is to flank the core product by offering different variations of size and price so that the conaumer finds some brand to choose from.
3.Brand extensions:- Marketers like to have aloyal consumer base so that those particular brands enjoy high brand equity in the market. In such cases, companies make brand extensions will be able to ride on the successful brands, and that the new brrand will stand in its own right in the course of time. At times, the idea does not work and the result is the strong preference for the original brand itself gets diluted in the bargain. However, if this strategy works, it has been of tremendous value leading to the formation of a number of umbrella in a variety of products. Brand extension strategy offers a number of advantages. A well respected brand name gives the new product instant recognition and easier acceptance. It enables the company to enter new product categories.Today this brand has a number of extensions like GodrejNo.1sandle,Godrej No.1 rose,FairGlow.All these brands have been positioned at different segements.
4.Building product lines:- Some companies add related new productlines to give the consumer all the products he/she would like to buy under one umbrella.The Godrej added products in the cosmetics range so as to offer their customers a one stop shop for all the necessary goods like appliance, moisturising creams to face scrubs and delicately shaded eye colours. Godrej has adopted a strategy. It has introduced different kinds of shoaps,appliance,food care in last 10 years.By adding a number of flovers in each product line the company grew in the industry. Building related product lines is today the market leader in the appliance, and food products industry.
5.New product development:- Given the intrnse competition in most products today, Godrej has to face some problem in developing new products because of competeshion in the market and the brand is also not getting proper recognisation also.There existing products are vuliable to change consumer needs and tastes, new technology, shortened product life cycles and increased domestic copmetition.By devoting one’s efforts on new product development. With the help of new products a company can enter a growing market for the first time, and supplement its existing product line.New product could also mean offering improved performance like small Refregirator to big to doar sets or greater perceived value and replacing existing products or relaunching old products which are tangeted at new market segments.
6. Innovations in core products:- In the Godrej FMCG products, the life of a product is short. Godrej therefore, continually try to introduce new brands to offer some thing new and meet the changing requirements of the customer. A consumer is also open to try out new options and, on the other hand, brand loyal segment is presuaded to upgraded their choice.Hence it is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumer’s or dealers feedback. Such innovations are tried out around the core product of a company.
7.Long term outlook:- Many companies adopt a long term outlook towards growth in an FMCG market. In the process, short term gains which might adversely affect the long prospects of the company are sacrificed.
8.Extending the PLC:- During a product’s life of Godrej company for its FMCG may have to reformulate its marketing strategy because economic conditions are not good this time all round the world, competitors launch new assaults, and the product encounters new types of buyers and new requirements. Consequently, an Godrej FMCG try to extend the PLC and plan successive strategies appropriate in each stage in the new environment. In the maturity stage of the PLC, some companies abandon their weaker products. They prefer to concentrate their resources on their more profitability products and quickly develop new products. The main loophole in this is due to ignoring the high potential that many old products still have. For example, existing models in products like refegrater and microwave oven etc. In India have experienced a good demendwhenever new options were offered. Here older models become more attractive in the popular price segement or first time buyres.
9. Expanding markets by usage:- A company usually expands the market for its brand in two ways. That is, either to increase the number of customers or by encouraging more consumption per intake. Note that Sales volume = number of brand users * usage rate per user.
The usage rate of the consumers can be increased in a number of ways. For instance, it may try to educate or persuade customers to use the product more frequently. Godrej did this with soap Godrej No1. The concept of soaps in India was limited to hygienic only and takes bath. By aggressively promoting fragrances more as a medium of attraction than as a way to bath, Godrej has increased the usage of Fair Glow to cover consumption of Godrej soaps.
Secondly, Godrej Company tries to induce users to consume more of the product on each occasion. Say, a haircolour marketer might convince the users that the haircolour is more effective with one rinses rather than two or more.
Thirdly, Godrej Company tries to discover new product uses and convince customers to use the product in more varied ways. Rim Locks and Good Knight were bothconsumer products. Rim Locks came out with consumer friendly small tubes locks and pad lock to suit the individual consumer who would not buy the inferior quality of locks which were sold to customers. Good Knight also positioned itself as an anti-mosquito purpose. By extending their consumer base to the individual consumers and by convincing them of the product benefits Godrej have greatly increased their market shares. Keo-Karpin was initially introduced as a remedy for falling hair. It was later on extended to cover prevention of falling hair also. Finally, it was repositioned as cosmetic and not just hair oil. Different ways of styling hair were shown in its advertisements. The usage has increased from that of pure hair oil, to that of a part of a lady's total styling kit
10.Wide distribution network:- A very simple way of increasing an FMCG market share is by developing a strong distribution network, preferably in terms of more locations. Once the reach of the product has been extended, it is likely to gain in market share because of its deep penetration. An extensive distribution system can be developed over time, or the Godrej may acquire another company which has an extensive distribution network. As stated earlier, Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network. This stands as the prime reason behind their market leadership in respective businesses. But because of some problem Godrej have failed to maintain the strong distribution network.
11.Monitoring the pulse of the consumers:-Companies spend considerable effort to find out the what, where, how and when of their consumers. They figure out all sorts of things about them that the latter arc not even aware of. Godrej frequently undertake marketing research to find out more about their consumers and how to satisfy their needs and wants in a better manner. It helps them to monitor the pulse of their buyers so that they are able to identify and/or anticipate the needs of the consumers and be able to satisfy them in a better manner than the competitors.
12. Advertising and media coverage:- Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it. Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand. Persuasive advertising becomes important in the competitive stage, where the company's objective is to build a selective demand for a particular brand. Most advertising falls into this category. For example, Pantene shampoo attempts to persuade consumers that it delivers more benefits than any other brand of shampoo. Marketers try to establish the superiority of its brand through specific comparisons with one or more brands in the product class. The basic idea about growth through advertising by a company is to increase market share through more share of mind as more information about the company and its products will induce the viewer at the time of actual demand.
13.Sales promotion:-Sales promotions offer a direct incentive to buy more in the short term. They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade. However, a few points have to be kept in mind. They yield faster and more measurable responses in sales than advertising docs. They mainly attract the deal prone consumers who switch brands as deals become available. Loyal buyers normally do not change their brand as a result of competitive promotion
MANAGING LINE EXTENSIONS-A CLOSER LOOKThere arc several factors which can explain why Godrej Company has pursued line extensions as their marketing strategies.
1. Customer segmentation:- Managers perceive line extensions as a low-cost, low-riffc way to meet the needs of various customer segmentsand by using more sophisticated and lower-cost market research and direct marketing techniques, they can identify and target finer segments more effectively than ever before. In addition, the quality of audience-profile information for television, radio and print media has improved; managers can now translate complex segmentation schemes into effective advertising plans.
2.Consumer desires:- Consumers are switching brands and trying products they have never used before. Line extensions try to satisfy the desire for "something different" by providing a wide variety of products under a single umbrella. Such extensions, Godrej companies hope, fulfill customer desires while keeping them loyal to the brand franchise. Godrej launched its refrigerator in different sizes and AC in different tons, Soaps in different verity. Line extensions can help a brand increase its share of shelf space, thus gaining higher visibility and attracting consumer attention. When marketers coordinate the packaging and labeling across all items in a brand line, they can achieve an attention-getting billboard effect on the store shelf or the display stand and thus leverage the brand's equity. However, building enough volumes to offset the additional costs required for such extensions is also necessary.
3.Pricing breadth:- Marketers often extend the line on superior quality platform and set higher prices for the new offerings than their core items. In markets subject to slow volume growth, marketers can increase unit profitability by attracting current customers move up to the "premium" products. In this way a marketer also lends "prestige" to its product-line. Similarly, some line extensions are priced lower than the lead product. For example, American Express offers its Optima card for a lower annual fee than its standard card. Extensions give marketers the opportunity to offer a broader range of price-points in order to capture a wider audience, and—thereby serve as "volume builders."
4.Excess capacity.On some occasions companies added new product lines to make use of their excess capacity or to improve efficiency and the quality of existing products. In fact, excess capacity encourages the introduction of line extensions that require only minor adaptations to current products.
5.Short-term gain:-Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk of introducing new products in this crowded market.
6.Short-term gain:- Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk of introducing new products in this crowded market.
7.Energizing a brand:- A line extension can be an effective way to make a brand more relevant, interesting, and visible. In doing so, it can create a basis for differentiation, build the audience for the advertising of an old brand (though the brand may be healthy), and stimulate sales. This would give new as well as old customers sufficient reason to buy the brand.
8.Exploitation of variety fulfillment:- A brand may be stretched across multiple product categories to take advantage of a common and important consumer benefit existing in both, the products and the consumer perceptions. This is the common benefit of exploitation strategy which ensures that sales in the other categories do not affect the parent brand. Line extensions can also increase a brand's consumer share of requirements within a given product category.
9. Expanding a brand's core promise to new users:- A brand may have a strong image that promotes loyalty and exclusiveness. A line extension can extend that promise. In fact, line extensions can perform the role of continually improving the core brand. Intelligent line extensions may be used as means to attract users who buy multiple brands.
10. Managing true innovation:-. Line extension is an effective way to foster and manage true innovation, thereby enhancing the value proposition, expanding the usage contexts, and blocking competitive entry.
11. Blocking or inhibiting competitors:- Although niche markets may represent marginal businesses, they may strategically represent important footholds for competitors. Line extensions have the potential of inhibiting or neutralizing moves by competitor. Failure to sec this aspect may result in adverse consequences for market leaders, as can be seen from what happened to the present situation of Godrej FMCG industries.
12.Testing ground for national launch:- Product line extensions can also be effective ways to test-market product improvements and at the same time enter emerging segments. Thus, logic seems to be on the rise for any new launch to assess the pulse of the market in a competitive environment.
Consumer products
Appliances :-
1. Refrigerators.
2. Washing Machines.
3. Air-Conditioners.
4. Microwaves.
5. DVD Players.
L Locks
1. Pin Cylinder Locks.
2. Lever Mortise Locks.
3. Rim Locks.
4. Furniture Locks.
5. Ultra Locks.
6. Padlocks.
7. Cylindrical Locks.
Furniture :-
1. Office Furniture:-
i) Interiors.
ii) Techno series.
iii) Storage:-Common storage, Personal/ Aisle, Conventional storage, System storage, Display storage.
iv) Seating:-General purpose chairs, High performance, Lounge furniture, Multi task, Office/Multipurpose chairs, Public seating, Task intensive seating, Training Room.
v) Desking.
vi) OPOS.
2. Special Solutions:-
i) Marin Solutions.
ii) Lab Solutions.
3. Home Furniture:-
i) Living room.
ii) Dining room.
iii) Kid’s room.
iv) Study room.
v) Modular kitchen.
vi) Bedroom.
Security Equipment :-
1. Physical Security Products:-
b) Record Protecting Equipment:-Centiguard-fire safes, Dataline-data safes, Fire Resisting Record cabinet, Record Room Doors, Fire resisting filing cabinet.
c) Burglary Resisting Safes:- Popular Safes, D-tel depository cabinet, Defender Plus safes.
d) Vault Equipments:-Steel Fabrication Strong rooms, High Security Door, Defender Plus strong room doors, Currency bin cabinet, Vault Accessories.
2. Currency Handling Systems:-
a) Crusader currency counting machine
b) Swift CCM
c) Currency sorting machine
d) 3rd Eye fake note detectors
3. Electronic Security System.
4. Home Safes.
5. Premises Security Solution.
6. Marine Products.
7. Fire Doors.
8. Godrej Entranza Doors.
Office Automation :-
1) MFP.
2) Fax Machines.
3) Production Printing Equipment.
Conferencing Solutions:-
1) Display Solutions.
2) Audio/Video Conferencing.
3) Integrated Solutions.
4) Electronic Copy Boards.
Typewriters:-
1) Manual Typewriters.
Vending Machines:-
1) Godrej2CVM
2) Godrej Mini Café 4000.
Soaps & Personal care:-
1) Soaps:- Cinthol, Fair Glow, Evita, Shikakai, Vigil, Godrej NO.1.
2) Toiletries:-Cinthol, Shaving Cream, Power, save lotion, Body spray.
3) Hair Care:-Godrej Nupur, Hair colours.
4) Household Care:-Godrej dish wash, Glossy.
5) Fabric care:-Ezee.
Foods:-
1) Sofit Soymilk.
2) Edible oils and vanaspati.
3) Fruit drinks and nectar.
4) Bakery fats.
Air Care:-
The Ambi Pur Range
Household Insecticides :-
1) Good Knight.
2) Hit.
3) Jet.
Housing:-
1) Commercial.
2) Retail.
3) Residential.
Pest Management Services:-
1) Rodex.
2) Termin-8.
3) Intelligel.
4) Wood Borer Management.
5) Bed Bugs Management.
Industrial products
Storage solutions:-
1) Warehouse solution.
2) Document and record management solution.
3) Shop floor solution.
4) Consultancy services.
5) Digital picking solutions.
Automated Warehousing:-
1) Automated Storage and Retrieval System (AS\RS).
2) Stacker Cranes.
3) Miniload System
4) AGV Stackers.
5) Automated Guided Vehicles.
6) Rail Guided Vehicles.
7) Baggage\ Cargo Handling.
8) Warehouse Management Systems.
Material Handling Equipment:-
1) Counter Balance Trucks.
2) Warehousing Products.
3) Access Equipment.
4) Tyre Handlers.
5) All Terrain Trucks.
6) Tennant Cleaning Equipment.
7) HUBTEX Side loaders.
8) Attachment & Accessories.
Process Equipment:-
1) Heavy Walled Reactors.
2) High Pressure Vessels.
3) Distillation/Fractionationg Columns.
4) Rector/Tower Internals & Trays.
5) Custom Built Equipment.
6) High Pressure Shell & Tube Heat Exchanges.
CONCLUSION:-
In this project, we have defined generic, tangible and augmented facilities attached to Godrej product. Different types of consumer products, we looked at the special characteristics of fast moving consumer goods (popularly known as FMCG) in detail. The Godrej has highlighted the wide range of strategies adopted by FMCG in their quest for growth in this highly competitive and evidently low involvement purchase decision. Finally, we took a closer look at product line decision and various dimensions considered in the line extension.
PREFACE
Today if we go through the managerial concept then we can see different products of the same company the base of every organization and the most important platform has been given to product-mix and productline is by company for the economical development of the company in different states country as well as in various part of the world. Today a product line has become the base of FMCG company who wish run there business successfully without product and productline the company cannot sustain in the present market.
Today achieve mastery in the performance in the field one need to take practical knowledge training and experience of the work our productline process help us in learning the various aspects of customer preferences. So the study of product-mix productline process helps the company to do better in there marke shares.
We have tried the best to explain this in formation in our project report. We hope this project may serve overall information about the student’s perceptions.
Product-mix and Productline is overall to satisfy organization to through creating and changing customers styles and value with the customer has a days the world in becoming small and it us coming to the doorstep of every house in the world through the great and unimaginable development of product-mix and productline and it concept.
ACKNOWLEDGEMENT
We sincere attempt has been made to include everything regarding the subject that was within reach. We will consider our effort rewarded if this shot piece of work being better under standing of the subject.
We are highly thankful to our Prof. Mr.AnkurGangel for guided us in understanding the product and productlines of Godrej company as a part of our study required at MBA level. The detailed information of various functional and operation department has helped us a lot in submitting the report.
This report is fruit of many people’s effort and thoughts, directors indirect each has contributed inside facts, experience and personal support during its preparation.
PURPOSE OF THIS REPORT
The student of MBA have to make a group report for the purpose of our live-project so our group has selected to make a report on the.
This has helped the students to enrich their theoretical knowledge about the working and functioning of all departments in the particular area of the management and we have achieved the opportunities to do a work group report.
In this report we are very thankful to our professor Mr.AnkurGangel who gave us important guidance to fulfill the need of the report. INDEX
1. Introduction of company.
2. Classification of products.
3. Product Mix and Line Decisions.
4. Growth strategies for FMCG.
5. Managing line extensions-A closer look.
6. Conclusion.
Introduction of Company
Godrej Group Profile
Started in 1897 as locks manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej success has been driven by the company's commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability.
In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization's history. Today Godrej is delivering consumers exciting innovations across a spectrum of businesses. The company's pursuit of excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents were unharmed; an equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej management understands that the company's greatest asset is the trust and faith that consumers have reposed in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does.
Godrej ethical and visionary practices have allowed the company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agro products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth.
The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.
We shall operate in our existing and new businesses which profitably capitalize on our corporate image of quality and integrity. Our objective is to delight our customers both in India and abroad. We shall achieve this objective by re-engineering our businesses and through continuous improvement in quality, cost and customer service. We shall strive for excellence by nourishing, developing and empowering our employees and suppliers. We shall encourage an open atmosphere for conducive learning and teamwork"
Mr. A.B.Godrej, Chairman of Godrej
We are in the business of household and environmental pest control solutions. We have a mission to accomplish, and this is our mission:
Accelerate the growth of the Indian household insecticides market,
Strengthen our leadership position in India and
Rapidly globalize our business.
We shall achieve this objective by:
Understanding, continuously tracking and satisfying changing customer needs,
Continuous improvement in quality, cost and distribution,
Nurturing, developing and empowering our employees and
Encouraging an open atmosphere conducive to learning and teamwork.
The management philosophy of GSLL can be expressed in a single word: “PRIDE”
· Passion
· Respect for people
· Integrity
· Dedication
· Extraordinary Creativity
Product of Godrej company:
When applying the generic product concept, two key issues shoud be kept in mind. First, it is the consumer’s view of what a given product represents. Thus, a marketer shoud determine what that product means to the consumer befor desigining the product. Secoundly, aspirations of consumes differ from place to place and time. Thus , the same product (such as a soap) may satisfy different generic requirements (such as amean of bathing; washing cloth etc). The marketer shoud design the product after considering the impact of different possible generic requirements.
At the next level, a marketer identify many tangible aspects in the form of features, style, packaging, quality, etc.
CLASSIFICATION OF PRODUCTS:
Depanding on the tangibility and durability found in an offering, products are typically classified as service, durable and non-durable products. As the name sugggests, service has more of intangibless, whereas durable products offer both tangibility and durability. Non-durabile products are normally consumed fast and hence purchased regularly. Here, consumers tend to spend the minimum of effort in comparisons and buying the item.
Items of Goderj are as follow:
Consumer products
(1)Appliance(2)Locks(3)Furniture(4)Security Equipment (5)Office Automation(6)Conferencing Solutions(7)Typewriters (8)Vending Machines(9)Soaps & Personal care(10)Foods (11)Air Care(12)Household Insecticides(13)Housing(14)Pest Management Services
Industrial products
1)Storage solutions(2) Automated Warehousing(3) Material Handling Equipment(4) Process Equipment(5) Precision Components & System(6) Machine Tool Service(7)Electrical & Electronics(8) Tooling(9)IT Solutions(10) PLM Solutions(11) Medical Diagostics(12) Agro Products(13) Chemical(14) Construction Material & Services(15)Lawkim Motors Group
Product Mix and Line Decisions:
Product Mix:
It is the set of all product lines and items that a particular company offers to buyers. The width of a product mix refers to how many different product lines a company carries. The Godrej have different product mix in India consists of appliances, Soaps & Personal care etc.
The depth od a product mix refers to how many variants of each product are offered in the line,eg the cinthol soaps are coming in diferent formulations and in different colours and hence has aproduct mix depth of nine or ten. This kind of assortment is popularly referred asa stock keeping units (SKUs).
The consistency of a product mix refers to how closely related the various product line are in end use. Hence, Godrej product lines are consistent in the sense that are all food products.The width, depth and consistency of product mix enables a company to define its product portfolio, appeal to different consumer needs/segments and encourage one-stop buying. A broad width or dep mix goes tosatisfy the needs of several consumer groups and maximise shelf-space and sustain dealer support.
A consistent mix is generally easier to manage that diversified mix. It allow the marketer to concentrate on its core competence, build or create a strong image among consumers and trade channels. However, excessive consistency may leave the marketer to a narrow rang of business.
Product Line:-
It is a group of products that is closely related because thay perform a similar function, targeted at the same customer groups, and marketed through the same channels.
1. Line streching: Decisions pertaining to line stretching are taken whenever the marketer feels he can increase his profits by either adding or dropping items from the line. It can be upwards, downwards or both ways.
Downward stretch takes place when the company finds that its offerings are at the high price end of the market and then stretch their line downwards.For example Cinthol plan soap began at premium end and then the downmarket cinthol limebar was introduce to tap the lower segment.
Conversely, upward stretch occurs when a company enters the upper end through a line extension. The reasons for this may be a higher growth rate, better margins or simply a wish to be a full line marketer. A successful upward strech would be that of Cinthol, which started from a hygenic bath soap for the masses to a premium quality like sinthol lime for the higher strata of society. Throughout this stretch the brand has used hygienie as its core benefit, so that there was no dissonance in the mind of consumers.
2.Line filling:- A product line can also be lengthened by adding more items within the present product range. There are reveral reasons for line filling.
· Reaching for incremental profits.
· Trying to satisfy dealers who complain about lost sales because of missing items on the line.
· Trying to utilise excess capacity.
· Trying to offer a full line of the product.
· Trying to plug holes in the positioning map.
The launch of Cinthol, in different variants is an example of line filling. Today Cinthol is a lime shop with yellow packaging and a cologne cariation with blue wrapping apart from the initial Cinthol fresh. There is also a Cinthol International, packed in a red pack with a picture of mountains depicting freshness.
The company needs to diferentiate each item must possess a difference which sets it apart from the others. We have later on discussed various significant dimensions relating to product positioning and differentiation.
3.Line modernization:- Even when the product line length is adequent, the line might to be modernized. The issue is whether to overhaul the line completely or one at a time. A piecemeal approach allows the company to see how customers and dealers react to the new style. Piecemeal modernization is less of a drain on the company’s cash flow. A mojor disadvantage of picemeal modernization is that it allows competitors to see changes and start re-designing their own line.
In the repidly changing market, product modernization is carried out continuously. Because competitors are constantly upgrading their options,each company must redesign their own offering. A Godrej woud like to upgrade customers to higher-valued, higher-priced items. A major issue is the timing of the product line improvements so that thay do ot happen too early and damage the sales of their current product line, or come out too late so that the competition can establish a strong foothold.
4.Line featuring:- In the case of durible products, marketers at times select one or a few items to “feature”. The idea is to attract consumers into the showrooms and then try to get them exposed to other models. At times, the marketer will feature a high end item to lend prestige to the product line. These products act as “flagships” to enhance the whole line.
Sometimes a company find one end of its line selling well and the other poorly. The company may try to boost the demand for the slow-moving items, especially if they are produced in a factory that is lying idle due to the lack of demand.
GROWTH STRATEGIES FOR FMCG
The fundamental characteristics of fast moving consumer goods and their markets. We shall now consider the various growth strategies follwed ny Godrej FMCG company.
Typically, the success of an Godrej FMCG depends greatly on its marketing strategy. Typically, a marketer pursues a wide combination of strategies. For instance, when prices are competitive the company would use an extensive distribution network, design suitable advertising and sales promotion schemes from time to time. However, what is it that can make am Godrej FMCG brand sell more than its competitor? What makes some outstanding brands? How does a marketer convert a customer from buying a generic soap to buying a particular brand, say Godrej No1. Or what makes Godrej sheving cream a symbol of good sheaving cream for over a century? Let us now discuss various methods employed by the Godrej in an FMCG market.
1.Multibrand Strategy:- A company often nurtures a number of brands in the same category. There are various motives for doing this. This main retionale behind this strategy is to capture as much of the market share as possible by trying to cover as many segements as possible, as it is not possible for one brand to cater to the entire market. This also enables the company to lock up more distributor shelf space.
Take, the strategy adopted by Godrej company. They have introduced many brands in the soaps and other products so that no segement is left untouched. It has Godrej No1 Rose, in the ultra-premium segment, Godrej No.1 for the economy segement and brands like Cinthol lome, cinthol fresh for the intervening segments. In the hair care market also.It has thus covered itself agenst any form of attack and captured market shares in every possible segment.
Another reasos to adopt multiple brand strategy is to protect its major brand by setting up flanked brands. Sometimes the company inherits different brand names in the process of acquiring other companies and each brand name has a loyal following.
2.Product flanking:- Product flanking refers to the introduction of different combitions of products at different prices, to cover as many market segements as possible. It is basicaly offering the same product in different sizes and price combinations to tap diverse market opportunities. The introduction of Ezee in small sachet has, for example, made them affordable to the lower segment of consumers who previously could not afford to spend anywhere between Rs.30 and Rs.40 for astandard bottel of a Ezee. Another the sachet wereinitially launched to guard the main brand surprisingly they have now become a big success among new and small quantity users.
The idea behind this concept is to flank the core product by offering different variations of size and price so that the conaumer finds some brand to choose from.
3.Brand extensions:- Marketers like to have aloyal consumer base so that those particular brands enjoy high brand equity in the market. In such cases, companies make brand extensions will be able to ride on the successful brands, and that the new brrand will stand in its own right in the course of time. At times, the idea does not work and the result is the strong preference for the original brand itself gets diluted in the bargain. However, if this strategy works, it has been of tremendous value leading to the formation of a number of umbrella in a variety of products. Brand extension strategy offers a number of advantages. A well respected brand name gives the new product instant recognition and easier acceptance. It enables the company to enter new product categories.Today this brand has a number of extensions like GodrejNo.1sandle,Godrej No.1 rose,FairGlow.All these brands have been positioned at different segements.
4.Building product lines:- Some companies add related new productlines to give the consumer all the products he/she would like to buy under one umbrella.The Godrej added products in the cosmetics range so as to offer their customers a one stop shop for all the necessary goods like appliance, moisturising creams to face scrubs and delicately shaded eye colours. Godrej has adopted a strategy. It has introduced different kinds of shoaps,appliance,food care in last 10 years.By adding a number of flovers in each product line the company grew in the industry. Building related product lines is today the market leader in the appliance, and food products industry.
5.New product development:- Given the intrnse competition in most products today, Godrej has to face some problem in developing new products because of competeshion in the market and the brand is also not getting proper recognisation also.There existing products are vuliable to change consumer needs and tastes, new technology, shortened product life cycles and increased domestic copmetition.By devoting one’s efforts on new product development. With the help of new products a company can enter a growing market for the first time, and supplement its existing product line.New product could also mean offering improved performance like small Refregirator to big to doar sets or greater perceived value and replacing existing products or relaunching old products which are tangeted at new market segments.
6. Innovations in core products:- In the Godrej FMCG products, the life of a product is short. Godrej therefore, continually try to introduce new brands to offer some thing new and meet the changing requirements of the customer. A consumer is also open to try out new options and, on the other hand, brand loyal segment is presuaded to upgraded their choice.Hence it is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumer’s or dealers feedback. Such innovations are tried out around the core product of a company.
7.Long term outlook:- Many companies adopt a long term outlook towards growth in an FMCG market. In the process, short term gains which might adversely affect the long prospects of the company are sacrificed.
8.Extending the PLC:- During a product’s life of Godrej company for its FMCG may have to reformulate its marketing strategy because economic conditions are not good this time all round the world, competitors launch new assaults, and the product encounters new types of buyers and new requirements. Consequently, an Godrej FMCG try to extend the PLC and plan successive strategies appropriate in each stage in the new environment. In the maturity stage of the PLC, some companies abandon their weaker products. They prefer to concentrate their resources on their more profitability products and quickly develop new products. The main loophole in this is due to ignoring the high potential that many old products still have. For example, existing models in products like refegrater and microwave oven etc. In India have experienced a good demendwhenever new options were offered. Here older models become more attractive in the popular price segement or first time buyres.
9. Expanding markets by usage:- A company usually expands the market for its brand in two ways. That is, either to increase the number of customers or by encouraging more consumption per intake. Note that Sales volume = number of brand users * usage rate per user.
The usage rate of the consumers can be increased in a number of ways. For instance, it may try to educate or persuade customers to use the product more frequently. Godrej did this with soap Godrej No1. The concept of soaps in India was limited to hygienic only and takes bath. By aggressively promoting fragrances more as a medium of attraction than as a way to bath, Godrej has increased the usage of Fair Glow to cover consumption of Godrej soaps.
Secondly, Godrej Company tries to induce users to consume more of the product on each occasion. Say, a haircolour marketer might convince the users that the haircolour is more effective with one rinses rather than two or more.
Thirdly, Godrej Company tries to discover new product uses and convince customers to use the product in more varied ways. Rim Locks and Good Knight were bothconsumer products. Rim Locks came out with consumer friendly small tubes locks and pad lock to suit the individual consumer who would not buy the inferior quality of locks which were sold to customers. Good Knight also positioned itself as an anti-mosquito purpose. By extending their consumer base to the individual consumers and by convincing them of the product benefits Godrej have greatly increased their market shares. Keo-Karpin was initially introduced as a remedy for falling hair. It was later on extended to cover prevention of falling hair also. Finally, it was repositioned as cosmetic and not just hair oil. Different ways of styling hair were shown in its advertisements. The usage has increased from that of pure hair oil, to that of a part of a lady's total styling kit
10.Wide distribution network:- A very simple way of increasing an FMCG market share is by developing a strong distribution network, preferably in terms of more locations. Once the reach of the product has been extended, it is likely to gain in market share because of its deep penetration. An extensive distribution system can be developed over time, or the Godrej may acquire another company which has an extensive distribution network. As stated earlier, Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network. This stands as the prime reason behind their market leadership in respective businesses. But because of some problem Godrej have failed to maintain the strong distribution network.
11.Monitoring the pulse of the consumers:-Companies spend considerable effort to find out the what, where, how and when of their consumers. They figure out all sorts of things about them that the latter arc not even aware of. Godrej frequently undertake marketing research to find out more about their consumers and how to satisfy their needs and wants in a better manner. It helps them to monitor the pulse of their buyers so that they are able to identify and/or anticipate the needs of the consumers and be able to satisfy them in a better manner than the competitors.
12. Advertising and media coverage:- Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it. Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand. Persuasive advertising becomes important in the competitive stage, where the company's objective is to build a selective demand for a particular brand. Most advertising falls into this category. For example, Pantene shampoo attempts to persuade consumers that it delivers more benefits than any other brand of shampoo. Marketers try to establish the superiority of its brand through specific comparisons with one or more brands in the product class. The basic idea about growth through advertising by a company is to increase market share through more share of mind as more information about the company and its products will induce the viewer at the time of actual demand.
13.Sales promotion:-Sales promotions offer a direct incentive to buy more in the short term. They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade. However, a few points have to be kept in mind. They yield faster and more measurable responses in sales than advertising docs. They mainly attract the deal prone consumers who switch brands as deals become available. Loyal buyers normally do not change their brand as a result of competitive promotion
MANAGING LINE EXTENSIONS-A CLOSER LOOKThere arc several factors which can explain why Godrej Company has pursued line extensions as their marketing strategies.
1. Customer segmentation:- Managers perceive line extensions as a low-cost, low-riffc way to meet the needs of various customer segmentsand by using more sophisticated and lower-cost market research and direct marketing techniques, they can identify and target finer segments more effectively than ever before. In addition, the quality of audience-profile information for television, radio and print media has improved; managers can now translate complex segmentation schemes into effective advertising plans.
2.Consumer desires:- Consumers are switching brands and trying products they have never used before. Line extensions try to satisfy the desire for "something different" by providing a wide variety of products under a single umbrella. Such extensions, Godrej companies hope, fulfill customer desires while keeping them loyal to the brand franchise. Godrej launched its refrigerator in different sizes and AC in different tons, Soaps in different verity. Line extensions can help a brand increase its share of shelf space, thus gaining higher visibility and attracting consumer attention. When marketers coordinate the packaging and labeling across all items in a brand line, they can achieve an attention-getting billboard effect on the store shelf or the display stand and thus leverage the brand's equity. However, building enough volumes to offset the additional costs required for such extensions is also necessary.
3.Pricing breadth:- Marketers often extend the line on superior quality platform and set higher prices for the new offerings than their core items. In markets subject to slow volume growth, marketers can increase unit profitability by attracting current customers move up to the "premium" products. In this way a marketer also lends "prestige" to its product-line. Similarly, some line extensions are priced lower than the lead product. For example, American Express offers its Optima card for a lower annual fee than its standard card. Extensions give marketers the opportunity to offer a broader range of price-points in order to capture a wider audience, and—thereby serve as "volume builders."
4.Excess capacity.On some occasions companies added new product lines to make use of their excess capacity or to improve efficiency and the quality of existing products. In fact, excess capacity encourages the introduction of line extensions that require only minor adaptations to current products.
5.Short-term gain:-Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk of introducing new products in this crowded market.
6.Short-term gain:- Line extensions offers the most inexpensive and least imaginative way to increase sales quickly. The development time and costs of line extensions arc far more predictable than they arc for altogether new products. In fact, few brand managers arc willing to spend the time or assume the career risk of introducing new products in this crowded market.
7.Energizing a brand:- A line extension can be an effective way to make a brand more relevant, interesting, and visible. In doing so, it can create a basis for differentiation, build the audience for the advertising of an old brand (though the brand may be healthy), and stimulate sales. This would give new as well as old customers sufficient reason to buy the brand.
8.Exploitation of variety fulfillment:- A brand may be stretched across multiple product categories to take advantage of a common and important consumer benefit existing in both, the products and the consumer perceptions. This is the common benefit of exploitation strategy which ensures that sales in the other categories do not affect the parent brand. Line extensions can also increase a brand's consumer share of requirements within a given product category.
9. Expanding a brand's core promise to new users:- A brand may have a strong image that promotes loyalty and exclusiveness. A line extension can extend that promise. In fact, line extensions can perform the role of continually improving the core brand. Intelligent line extensions may be used as means to attract users who buy multiple brands.
10. Managing true innovation:-. Line extension is an effective way to foster and manage true innovation, thereby enhancing the value proposition, expanding the usage contexts, and blocking competitive entry.
11. Blocking or inhibiting competitors:- Although niche markets may represent marginal businesses, they may strategically represent important footholds for competitors. Line extensions have the potential of inhibiting or neutralizing moves by competitor. Failure to sec this aspect may result in adverse consequences for market leaders, as can be seen from what happened to the present situation of Godrej FMCG industries.
12.Testing ground for national launch:- Product line extensions can also be effective ways to test-market product improvements and at the same time enter emerging segments. Thus, logic seems to be on the rise for any new launch to assess the pulse of the market in a competitive environment.
Consumer products
Appliances :-
1. Refrigerators.
2. Washing Machines.
3. Air-Conditioners.
4. Microwaves.
5. DVD Players.
L Locks
1. Pin Cylinder Locks.
2. Lever Mortise Locks.
3. Rim Locks.
4. Furniture Locks.
5. Ultra Locks.
6. Padlocks.
7. Cylindrical Locks.
Furniture :-
1. Office Furniture:-
i) Interiors.
ii) Techno series.
iii) Storage:-Common storage, Personal/ Aisle, Conventional storage, System storage, Display storage.
iv) Seating:-General purpose chairs, High performance, Lounge furniture, Multi task, Office/Multipurpose chairs, Public seating, Task intensive seating, Training Room.
v) Desking.
vi) OPOS.
2. Special Solutions:-
i) Marin Solutions.
ii) Lab Solutions.
3. Home Furniture:-
i) Living room.
ii) Dining room.
iii) Kid’s room.
iv) Study room.
v) Modular kitchen.
vi) Bedroom.
Security Equipment :-
1. Physical Security Products:-
b) Record Protecting Equipment:-Centiguard-fire safes, Dataline-data safes, Fire Resisting Record cabinet, Record Room Doors, Fire resisting filing cabinet.
c) Burglary Resisting Safes:- Popular Safes, D-tel depository cabinet, Defender Plus safes.
d) Vault Equipments:-Steel Fabrication Strong rooms, High Security Door, Defender Plus strong room doors, Currency bin cabinet, Vault Accessories.
2. Currency Handling Systems:-
a) Crusader currency counting machine
b) Swift CCM
c) Currency sorting machine
d) 3rd Eye fake note detectors
3. Electronic Security System.
4. Home Safes.
5. Premises Security Solution.
6. Marine Products.
7. Fire Doors.
8. Godrej Entranza Doors.
Office Automation :-
1) MFP.
2) Fax Machines.
3) Production Printing Equipment.
Conferencing Solutions:-
1) Display Solutions.
2) Audio/Video Conferencing.
3) Integrated Solutions.
4) Electronic Copy Boards.
Typewriters:-
1) Manual Typewriters.
Vending Machines:-
1) Godrej2CVM
2) Godrej Mini Café 4000.
Soaps & Personal care:-
1) Soaps:- Cinthol, Fair Glow, Evita, Shikakai, Vigil, Godrej NO.1.
2) Toiletries:-Cinthol, Shaving Cream, Power, save lotion, Body spray.
3) Hair Care:-Godrej Nupur, Hair colours.
4) Household Care:-Godrej dish wash, Glossy.
5) Fabric care:-Ezee.
Foods:-
1) Sofit Soymilk.
2) Edible oils and vanaspati.
3) Fruit drinks and nectar.
4) Bakery fats.
Air Care:-
The Ambi Pur Range
Household Insecticides :-
1) Good Knight.
2) Hit.
3) Jet.
Housing:-
1) Commercial.
2) Retail.
3) Residential.
Pest Management Services:-
1) Rodex.
2) Termin-8.
3) Intelligel.
4) Wood Borer Management.
5) Bed Bugs Management.
Industrial products
Storage solutions:-
1) Warehouse solution.
2) Document and record management solution.
3) Shop floor solution.
4) Consultancy services.
5) Digital picking solutions.
Automated Warehousing:-
1) Automated Storage and Retrieval System (AS\RS).
2) Stacker Cranes.
3) Miniload System
4) AGV Stackers.
5) Automated Guided Vehicles.
6) Rail Guided Vehicles.
7) Baggage\ Cargo Handling.
8) Warehouse Management Systems.
Material Handling Equipment:-
1) Counter Balance Trucks.
2) Warehousing Products.
3) Access Equipment.
4) Tyre Handlers.
5) All Terrain Trucks.
6) Tennant Cleaning Equipment.
7) HUBTEX Side loaders.
8) Attachment & Accessories.
Process Equipment:-
1) Heavy Walled Reactors.
2) High Pressure Vessels.
3) Distillation/Fractionationg Columns.
4) Rector/Tower Internals & Trays.
5) Custom Built Equipment.
6) High Pressure Shell & Tube Heat Exchanges.
CONCLUSION:-
In this project, we have defined generic, tangible and augmented facilities attached to Godrej product. Different types of consumer products, we looked at the special characteristics of fast moving consumer goods (popularly known as FMCG) in detail. The Godrej has highlighted the wide range of strategies adopted by FMCG in their quest for growth in this highly competitive and evidently low involvement purchase decision. Finally, we took a closer look at product line decision and various dimensions considered in the line extension.
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