Marketing Warfare to destroy Mosquitoes

Abhinit-61Anand-65Brian-72

Devasheesh-76Gourav-78Kalpak-85

Kaustav-87Kishan-89

Somaiah-113

-The Godrej Challenge

Household Insecticides: Indian Scenario

Coils Vaporisers Aerosols0

10

20

30

40

50

60

70

80

57

36

5

19

4

Uban Rural

Household Insecticides Industry Overview

•Mosquitoes Repellent Market Size as of 2010 is ~ Rs 2,100 crore•5 year CAGR (2010 to 2013) ~ 12%•Total number of players in the HI market: 32 industry players.

Figures in percentage of total penetration

Source: IMRB Household Panel (2010)

Rural and Urban penetrations of each product category in India

Growth Trends and Component Distribution from Godrej’s balance sheet

FY 08 FY 09 FY 100

102030405060708090

100

51.4 50.2 49.6

32.7 33.2 33

8.6 9.6 10.17.2 7 7.3

Coils Electrics Aerosols Others

Coils Electricals Aerosols0

5

10

15

20

25

13.117.6

24.2

% Growth

• Aerosols have seen the major growth of 24.2% over the 3 years though the volume as a total of the whole is still small.

• The usage of Coils has seen a gradual decreasing trend but also accounts for the maximum sales revenue.

• The Others segment Includes Creams, Sprays and Gels.

Background of both companies

Godrej Group

Consists of two corporate entities: Godrej Consumer Products and Godrej Industries.•Godrej Industries Ltd. (GIL) is India's leading manufacturer of oleo-chemicals. •A major presence in food products such as refined oil and tetra pack fruit beverages.•Operates businessesin medical diagnostics and real estate.

GCPL

GCPL now the largest ‘Indian’ home and personal care (HPC) company in IndiaMosquito Repellents: No. 1 in Coils, Mats and Aerosols Format. Overall Category leader• Air Fresheners (Ambipur): No. 1 in

Car Air care• Hair Gels (Brylcreem): No. 1 in the

segment• Shoe Polish (Kiwi): No. 2 in the

segment• Scourers (Kiwi Kleen): No. 1 in the

segment

The Good Knight brand was launched by Transelektra Domestic Products Limited (TDPL) in 1984.

In a very short span of time the product had gained huge success in towns, cities and metros, all of which had a high incidence of mosquitoes and happily, rapidly growing per capita incomes, Good Knight was the right product at the right time.

The Good Knight strategy to manufacture and market products that offered great value worked wonders till a competitor launched a coil.

But as markets grew and evolved Good Knight discovered another need gap and ushered in the era of the liquid vaporiser.

This addressed three key consumer needs: greater convenience, enhanced safety and improved efficacy.

Today, these are available in solutions for 45 nights, 60 nights and 90 nights.

Good Knight has been synonymous with innovation and product superiority.

Identifying a need gap at the extreme top end, Good Knight entered the aerosol format with the launch of Good Knight Advanced Mosquito Spray.

Good Knight extended the Good Knight brand as a moisturizing mosquito repellent cream under Good Knight Naturals.

Continuous improvement on existing products among the success factors for the company. Some examples are :-

• Good Knight mats re-launched as silver power mats. This new technology plugged the need to change mats every day.

• It helped the brand to increase the share in mat market to 60%.

• Good Knight Turbo refill was launched with the latest technology of a turbo pump wick enabling better active release, led to a faster and better effect .

• Good Knight announcing the arrival of Maha Jumbo – the biggest coil in the world. The coil provided the most value for money and came in an attractive consumer pack.

• The coil stand was also modified to suit the larger size of the product.

Strategy - Model

Defining Corporate Mission

Situation Analysis

Resource Allocation

(BCG Matrix)

according to Product Category

Assessing Growth

Opportunities (Ansoff's

Grid) according to Product Category

Vision

To make

Goodknight a

Rs.1000 crore

brand by 2013.

GCPL - MISSION

Situation Analysis

• Current market share of Rs.500 crores as of FY 2010• Current market potential as of FY 2010 is Rs.2100

crores• Current CAGR as of 2010 over last three years is 12 %• Assuming same rate of growth for next three

consecutive years the expected market potential is at Rs.2950 crores

Task at hand

The task is to have a lion’s share of Rs.500 crores in a possible growth area of Rs.850 crores. Since this is difficult to achieve in domestic market alone, it is important to have strategies for international markets also.

Bottom line: Strategies must be construed for both Indian and international market to achieve the mission

Strategies in the Indian Market

Resource Allocation (BCG matrix) according to Product CategoryData

Results of Market Research on prices of mosquito repellent market segment

  Coil 10 no. Vapouri

ser ml

Cream

100 gms

Gel gms Spray ml Mats 30  

Good

knight

Minijumbo-

25(Rs)

Silver

45 ml-49

Advance

d-64

-na- 125 gms-75 250 ml

Goodknight

advanced- 75

Silver

power-50

 

All out -na- 45 ml-60 -na- -na- -na- -na-  

Mortei

n

Power 25

Deep reach

22

35 ml-45 na na 425 ml-155 Deep reach

action-45

 

Tortois

e

20 na na na na na  

odomo

s

    58 80 gms-50      

BCG Matrix

Vaporiser

Invest

Aerosol

Coil

Mat Liquidate

Business Growth rate

Market Share

Low

High

High Low

Assessing Growth Opportunities (Ansoff's Grid) according to Product Category

NA Product – development strategy

Market-development Strategy

NA

New Product Current Product

Curr

ent

Mar

kets

Ne

w

Mar

kets

Market – Penetration Strategy

NA

Market-development

NA

Current Product New Product

Curr

ent

Mar

kets

N

ew

Mar

kets

Coil Vaporizer

Ansoff’s Grid (Contd..)Aerosol

Market Penetration strategy

NA

Market-development Strategy

NA

Ne

w

Ma

rke

ts

Current Product

Cu

rre

nt

Ma

rke

ts

New Product

Mats

This segment is dwindling, so minimum amount of effort and resources must be used in this segment even as a strategic move the same unit can be divested.

Strategies for International Market

GCPL- Need for Globalization • HI globally is a $8 billion dollar industry• Huge untapped markets in third world

nations and developing nations• To meet objective of doubling revenues by

2013, expansion is necessary• Untapped market potential. Only 10%

revenues come from foreign markets

Acquisitions and External PresenceRest of Asia Includes operations in Indonesia and Middle East Megasari continues to enjoy its number two position in household

insecticides markets and leadership positions in air care and wipes markets in Indonesia Megasari’s sales stood at ` 182

Africa Includes operations of Rapidol, Kinky and Tura Africa business continues strong growth with revenues at ` 44 crores Legal merger of Rapidol and Kinky has been initiated

Latin America Completed the acquisition of 100% stake in Argencos, a mid-sized

Argentine hair care company on 8th July 2010 Sales stood at ` 59 crore

Other Geographies UK business revenues stood at 48 crore Sales (ex. cuticura, which had a high base effect due to H1N1 last year)

recorded good performance, despite tough environment in European markets

GCPL – Globalization Strategy ObjectivesBusiness Focus:

Primary focus – IndiaTap growth opportunities available in attractive

emerging markets – largely through acquiring strong local brand

Investment thesis:Leverage fundamental proposition in markets with

significant middle and bottom of the pyramid populationGoal for International business:

Not more than 30-40% of GCPL’s revenues and profits in long term

Look at strong regional brands with a relative market share > than 0.5

3 X 3 Strategy Markets and Categories

Asia, Africa and South America are the world’s fastest growing continents Focus on three core categories in scanning the 3 identified continents -

household care, hair care and personal wash Based on the development of these categories in the countries in these 3

continents, further shortlist countries – China, Indonesia, South Africa, Nigeria, Argentina and the SAARC countries

Values based Partnering approach Strength of management teams Taking local businesses to full potential Ensure that autonomy is maintained

Disciplined M & A Rigorous screening of opportunities Strong understanding of each market Robust investment thesis Detailed due diligence

Global Markets

Benefits of focusCategories of focus

Home care built around Household insecticidesHair care built around hair colour and hair extensionsPersonal wash

Benefits of focus & scaleLeverage a common innovation pipelineCompete effectively against global competitorsLeverage scale and scope synergies in sourcing and operationsLaunch other GCPL categories in these geographies over time

Cross pollination between geographiesOperational efficiency strengths in Indian insecticide operations

transferred to Indonesia, Bangladesh, etc.Common purchase of active ingredients and perfumes in both

household insecticides and hair colours across global portfolio

Success story of acquisitions

Expansion in Indonesia•Acquisition of MEGASARI Group.

•11 branches, 619 salesman, 90000 outlets and 74 regional distributors.

•This acquisition helps in using the strong distribution network of Megasari.•Key brands :

•Hit•Stella•Mitu

•Main mosquito repellents in Indonesia include scented vaporizers and repellent creams.•Ideal positioning of Good knight Naturals as a moisturizing mosquito repellent cream and vaporizers as perfumed repellents.•Main competitors in Indonesia are Mortien, Dabur Odomas

Expansion in NigeriaAcquisition of Tura-local bar soap brand business.

30% market share in medicated soaps category. Distribution reach is above 69% in its key grocery and open

market channels, and has grown significantly across all distribution channels over the past two years.

Main competitors are Dabur Odomos, Bugbam (mosquito repellent wrist bands), All Out, Insecticide Treated Nets, mosquito repellent candles.

Ideal positioning of Good knight Naturals as a non-sticky moisturizing mosquito repellent cream on-the-go. Coils should be positioned as easy to use economical mosquito repellent for the house.

Expansion in South AfricaAcquisition of Rapidol InternationalMarket share of Rapidol -70% in ethnic hair color market. COMPETITORSTarget Mortien-outdoor protection, insect repellent with a

combination of germ protection (+Dettol)TOUBA, JUZHONGWANG, LION - Chinese brands of

mosquito repellent liquid, incense, mat and mosquito coils.Tabard-world class mosquito and insect repellent.

Available in a 70g Aerosol and a 50ml Lotion.Doom-Insect repellent available in the form of spray.

MARKET PENETRATIONIntroduction of entire range of Good Knight products in

RSA. Campaigns and education about mosquito related diseases. Positioning similar to that in India.

Thank You