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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
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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).
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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A Case Study on Branding Strategies Implemented by Godrej
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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A Case Study on Branding Strategies Implemented by Godrej
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.
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A Case Study on Branding Strategies Implemented by Godrej
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A Case Study on Branding Strategies Implemented by Godrej
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
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,)
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A Case Study on Branding Strategies Implemented by Godrej
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
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.
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A Case Study on Branding Strategies Implemented by Godrej
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
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)
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A Case Study on Branding Strategies Implemented by Godrej
Recommendation
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A Case Study on Branding Strategies Implemented by Godrej
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.
3.2Global 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
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A Case Study on Branding Strategies Implemented by Godrej
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
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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A Case Study on Branding Strategies Implemented by Godrej
OUTCOMES CHARACTERISTICS
It will be more, due to product flanking,
people will
VENUE DIRECTRE
prefer buying 'Godrej' products even when
Price Premium the prices
STREAM
Market Share
would be on a higher side
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A Case Study on Branding Strategies Implemented by Godrej
the
geographic extension strategy
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.
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A Case Study on Branding Strategies Implemented by Godrej
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