A Case Study on Branding Strategies Implemented by Godrej

Table of Contents

1 Introduction ...2
2 Brand Audit ...2
2.1 Customer Based Brand Equity (CBBE) Model ..........................................5
Brand Equity Pyramid ......................................................................................5
2.1.1 Brand Salience ........................................................................................5
2.1.2 Brand Performance & Brand Imagery .................................................6
2.1.3 Judgement and Feeling ...........................................................................6
2.1.4 Brand Resonance .....................................................................................7
3 Brand Development & Strategy ........................................................................8
3.1 Brand Product Matrix ....................................................................................8
3.2 Global branding .............................................................................................10

4 Branding Performance and Metrics....12

5 Conclusion

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 A Case Study on Branding Strategies Implemented by Godrej

1. Introduction
Established in 1897, Godrej is still young even after 116 years of existence. The brand
has come a long way from manufacturing its first safe in 1902 till creating Gojiyo, a
free browser-based 3D virtual world in 2010.
The brand has 7 major companies with significance in real estate, FMCG (Fast
Moving Consumer Goods), industrial engineering, appliances, furniture, security and
agriculture with turnover crossing 4.1 billion dollars. The brand is present in 60
countries and overall overseas business is around 26%. (The Godrej Group, 2013)

2. Brand Audit
This helps in measuring the health of the brand and revealing the sources of brand
equity. It is conducted in two parts, first the brand inventory, which is companys
perspective to understand how their products and services are sold and marketed.
Godrej rebranded them with the theme called brighter living for the strength
to dazzle consumer with their wide range of products and unparalleled services.
Through brighter living the company is targeting to bring their brand to life. In past
lustrum Godrej focuses on building value pillars of progression, expression, empathy
and experience, which results in creating more contemporary entity from their
perspective. (Issue, 2014).

Figure 1. Value pillars of 'Godrej'

By Progression they mean taking steps forward with customers. It means challenging
prejudice and confronting convention. The company projects themselves as constant

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innovator to race for the future, with the tagline tomorrow is ours, own it today.
(Issue, 2014).
Expression is giving customers the products and services to express themselves.
An initiative called Bedhadak bolo was implemented where the thoughts
(expressions) from the customers and the employees from the company are welcomed.
This enables internal marketing by word of mouth which they believe is more reliable
than any TV commercial. The company thinks that in open speaking of the mind lays
the power of all transformation. (Issue, 2014).
Empathy means taking time to connect with their customers and thanking them.
The agenda is to know the customers thought and understanding how their product is
part of the world.
And finally experience denotes looking at the bigger picture by going beyond
the basic needs. Godrej tries to deliver excellent products and services that customers
cant forget and they believe this will make them hunger for more and they will come
back. (Issue, 2014).
The value pillars mentioned above has forged a stronger connect with the 500
million Indians whose lives are touched by Godrej group of companies every day.
(Issue, 2014).
To market the master brand Godrej took the initiatives like Khelo Jito Jiyo-
an exclusive TV game show where contestants comprising 3 family pairs contend to be
the one worthy pair who can win a home and everything in it.
Godrej Power play- a consumer connect initiative which allows its consumers
to participate in the very reputed cricket league called IPL (Indian premier league) by
making their teams and win prizes while creating a lifestyle of their own using the
products in the process.
And finally, Gojiyo- an online 3-dimensional world. (The Economic Times, 2014).

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Godrej is well aware that they have a strong and unique association in
consumers mind. People prefer their products because they are convinced of the
advantages over other brands. The PODs are created due to functionality of their
products and services which delivers good performance. Further Brand Godrej is
difficult to attack; their marketing strategy is defensible hence competitive POPs are
established due to eliminated disadvantages.
The second part is brand exploratory, which is consumers perspective to
understand their perceptions and beliefs to discover the true meaning of Godrej and
its products to them.
The consumers respect the brand Godrej and prefer buying its products. In
order to understand the reasoning behind the influence, 20 primary surveys were carried
out using certain brand related questionnaires with diverse respondents. Also, to gather
more inside information, 2 interviews were also carried out with existing employees of
the company. Data was analysed by comparing responses in percentage basis.
The outcome of the survey helped in getting a coherent picture of the brand as
the collected information relate very well to the outcomes of brand inventory. Some of
the analysed data is shown below.

Figure 2. Godrej's current performance outcomes by consumers.

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Because of the century long history and still on, Godrej has strong association
with its consumers. In words of Keller, Customer-based brand equity occurs when
the consumer has a high level of awareness and familiarity with the brand and holds
strong, favorable, and unique brand associations in memory. (Lupisella, April 2014)
Hence CBBE is used to further understand the customers actual perspective for the
brand Godrej.

2.1 Customer Based Brand Equity (CBBE) Model

The pyramid (shown in Fig1) is segregated into four levels: Salience,
Performance and Imagery, Judgment and Feeling, and Resonance. It helps in
understanding how the foundation involves achieving brand salience with the ultimate
goal to reach at the summit of accomplishing brand resonance.

Brand Equity Pyramid

Figure III Brand Equity Pyramid

2.1.1 Brand Salience

People are well aware and relate sincerely with the brand Godrej as its
products are considered to be iconic. Their products are the first that comes to the

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consumers mind. when considering a commodity in that category. E.g. Godrej locks
and safes are considered as first option. (Insights Godrej, 2014) (Survey data- Fig II,)

2.1.2 Brand Performance & Brand Imagery

The company is in operation since past a century certainly because it is
performing and satisfying customer needs through the products offered. Their products
are Reliable due to the consistency maintained till date; and durable which was proved
when only Godrej safes survived the devastating blast at SS Fort Stikine in 1944. (The
Godrej Group, 2013), but the shortcomings lie with effectiveness of the serviceability
as company do not provide delivery and installation option in all the places. (Insights
Godrej, 2014) (Survey data- Fig II)
The consumers have a robust love and passion for the brand Godrej due to its
quality, and hence they buy its products despite of knowing the fact that its prices are
higher compared to its competitors. They also have nostalgic attachment with the brand
as it its products generates a symbolic connection with the preceding generations.
Based on the above-mentioned facts the consumers have formed positive
judgements and feelings about Godrej which is the subsequent level up on the
pyramid.

2.1.3 Judgement and Feeling

They consider it to be more superior to its rivals. Brand credibility is extremely
high. At present Godrej is the market leader in almost all the sectors they operate.
Trustworthiness of the brand is reflected as the company priorities the old
suppliers more than the new, despite of the fact that they give less business to the
company but yet former were there when company was working on its foundations.
(Insights Godrej, 2014)
Finally, the likeability is due to the new wash of colors in the iconic logo. The
change-hungry, tech reliant youths are now able to recollect brand easily. (Business
line, 2013)
Brand feeling and emotion
From the survey and the interviews conducted (Insights Godrej, 2014), it was
concluded that Godrej generates a positively outward feeling in the hearts of their

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consumers. Positive feeling is due to the sentimental attachment, warm heartedness and
love with the brand. This is because the brand was used by consumers parent which
makes them nostalgic. This builds the right emotion. Godrej commodities were used as
gifts and was considered as a token of love
Further Outward feeling is due to the excitement generated by the brighter
living that has pervaded the brand identity with high energy level.

Figure IV Feeling and emotion for Godrej

2.1.4 Brand Resonance

To an extent Godrej have achieved brand nirvana in customers mind. This is
because of the strong relationship that results in loyalty by the users and stronger ability
to defy competitive actions taken by rivals.
Godrej fulfil almost all the categories for brand resonance. For instance, the
behavioral loyalty is extremely high in FMCG sector. E.g. four of companys brands
(Good Knight, Cinthol, Godrej No.1 and Godrej Expert Hair Colour) were ranked
among the 100 Most Trusted Brands in
India. (Times, 2012); the attitudinal attachment is high for Godrej properties;
the active engagement with the Godrej Industries is high because of growing share
value which promises good returns to the investors.
The current position still not makes them complacent as they keep on innovating
and upgrading themselves because constant vigilance is indispensable to sustain the
present position in the minds of the users.
Hence from the CBBE model, it is concluded that Godrej has two
shortcomings which they need to tackle through their branding strategy. First is

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serviceability in brand performance and the second is creating sense of community

through brand resonance. Further the strategy should also target to cater different
market segments and also to explore the possible opportunities such as penetrating
market of different countries. (Survey data)

3. Brand Development & Strategy

Brand development is a determined endeavor entrenched with the combination of
strategic thinking and tangential creativity which drives the business ahead. Out of the
seven main companies of Godrej group FMCG sector has most number of brands and
maximum potential, hence for brand development focus is done on this sector only.
Also, as mentioned above Godrejs FMCG products were ranked among Top 100
brands of India.
The shortcomings observed from the CBBE model has to be targeted while
developing strategy for the company. Considering FMCG, serviceability doesnt play
any role and not even require for creating brand community. But do have a immense
scope for extension and going global.

3.1 Brand Product Matrix

Table 1 Brand Product Matrix

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The branding strategy adopted by the company has both breadth and depth as
they have many brands across different product categories. Godrej has a huge brand
line and brand mix in various categories. They leveraged on their existing brand equity
by using Brand Extension Strategy. The company launched brand Cinthol through
just soaps but then ventured into powder, deo spray, gel etc. The outcomes were very
fruitful and now the company excels in the all the fields they operate. The company
keeps on extending the range of varied products in their list but capping them under the
same brand name.
Further the company extended their product line by launching a sub-brand
called Godrej No.1 (Ref Tab 1) in the soap category. The product mix was increased
by soaps Jasmine, Lavender, Lime, aloevera & sandal. This was done to pursue
numerous market segments who desired for a cheaper alternative. (Aperia, Keller, &
Georgson, 2012) Similarly in the hair dye category Colour soft brand was launched in
a cheaper segment of Godrej expert. Both of these steps were taken because the
company wants to increase their shelf presence. The retailers can be persuaded easily
to stock and promote the products because of parent brands image. The strategy behind
this is that they dont want consumers to shift to other brands and hence provide variety.
This also helps them in achieving economies of scale in brand development,
advertisement, merchandising and obviously, sales.
The company is sagacious about market conditions and their brand extension strategies
doesnt cannibalize their sales.

Recommendation
Presently the company has adopted the brand extension strategy and is following it
safely but they can also opt for product flanking for certain brands. This may cover
many market segments by offering same product in different size and prices to tap the
infinite market opportunities. E.g. launching Cinthol shower gel or Colour soft hair
colour in small sachets. This will make the product more affordable to lower segment
of consumers. Further the regular customer can use them as a trial or for travel which
might build more market in long run.

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3.2 Global branding

As mentioned above presently, Godrej operates in 60 countries but yet generates
only 26% of the revenue overseas. (The Godrej Group, 2013) The group must try to
cater international opportunities by expanding their global reach.
One of the reasons to go global is the increased competitors in the domestic
market. Companies such as Emami, Marico Ltd, Dabur India ltd, Hindustan Unilever
ltd, and ITC ltd. etc. have restricted the market size and hence push to explore new
market overseas. Further due to globalization MNCs like P&G, Nestle, Colgate
Palmolive etc. have also ventured in India and are giving them tough competition.
Although Godrej is still at No. 4 (Top 10 FMCG Companies in India 2013, 2014).
The company can diversify their risk by targeting the less developed and developing
nations because of their affordable prices compared to their rivals, on which they can
compete.
Another reason for Godrej to go global is that their products are advanced,
useful, reliable and most important low priced which is the requirement of the target
nations. To venture into such market, Godrej needs to adapt the locally followed
requirements for optimizing their brand effectiveness. E.g. Amendments in the packing
and names to fit local populace and market needs. Godrej should specifically notice
that the product with an Indian name doesnt imply some bizarre meaning in the local
market of different country.
The company should understand the similarity and differences between Indian
and foreign market. They should retain their thematic consistency but upgrade their
presentation for developing countries and alter them for other less developed countries.
To go global, Godrej needs to build strong brand equity. It involves a lot of
considerations and risks. Customized marketing campaigns are required to satisfy the
local market segment. These marketing campaigns involve identification of consumers
behavior and making corresponding adjustments to the brand which can be different
even in neighboring countries.
Creating a marketing infrastructure in a new country is time consuming and
involves lots of complications. Godrej can do geographic extension as their existing
brand is competent for less developed nations. They can cultivate further brand
relationship by creating alliance with companies in developed nations as their product
might require up gradation for these markets. The company should adapt to capitalize

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on existing marketing infrastructure which can be done by joint ventures or acquiring

certain stakes in others holdings. In fact the Godrej already approached this global
branding but in a developed country by acquiring Keyline brands of UK. (The Godrej
Group, 2013). This was a poor decision as huge investment was involved and is not
successful (Insights Godrej, 2014) hence not a recommended option for global
branding.

FACTO
STRATEGY NATION RS
Speed Control Investment
Geographic extension Developing Slow High Medium
Brand Acquisition Not recommended
Brand Alliance Developed Moderate Low Low
Table 2 Brand relationship
factors for Godrej

The above table shows impact of recommended branding strategy for Godrej on
speed, control and investment when done in different types of nations.

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4. BRAND PERFORMANCE & METRICS

These brand development strategies are evaluated on the basis of market performance.
The brand value will be created by building profitable sales. To identify the brands
future performance through brand flanking and global branding is as under:

OUTCOMES CHARACTERISTICS
It will be more, due to product flanking,
people will
prefer buying 'Godrej' products even when

DIRECTREV
Price Premium the prices

STREAM
ENUE
Market Share
would be on a higher side

It will be more because of competition.

Customers might
shift to other brand due to price increase but
on the
Price Elasticity contrary sales would be augmented on
decreasing price

It will increase in developing nations due to

the
geographic extension strategy

Presently 'Godrej' follows line and Category

extension
and is very successful. This adds revenue to
Brand Expansion the
company.
Initially this would be high because of
advertising. Once

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'Godrej' establishes itself in target customers

Cost Structure mind, cost
can be cut due to economies of scale.
Initially it will be low but once the brand
awareness and
its products are established in the target
Profitability global market,
profits would start flowing.

Table 3 Future Market performance for 'Godrej'

CONCLUSION:

Godrej is currently following brand extension strategy with huge brand line and brand
mix in various categories. They have also increased the product line but for further
development they should opt for product flanking for Indian market by offering their
product in small sachets/ packs in order to cater lower segment of consumers.

Another recommended strategy for Godrej is to target the opportunities of

their international market using global branding. This is due to the shrinking domestic
market because of competition and competency of their products to compete globally.
Building global brand equity and understanding consumer behavior is important before
venturing into a different country. The returns from the global branding strategy would
be low initially but would be beneficial for the company in long run.

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