CHAPTER 1

Introduction
Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the most accomplished
and diversified business houses in India. Godrej's 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. Tody 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's 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 agri 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.
The Godrej Group

The Godrej Group has interests in a wide range of businesses. Apart from GCPL, the major Companies In
the Group include:

Godrej & Boyce Manufacturing Co. Ltd. – a leading manufacturer of office and home Equipment including
appliances, furniture, locks, security equipment, storage solutions and Industrial equipment

Godrej Industries Ltd. – a leading manufacturer of oleo chemicals that are used in more than two dozen
industries. The Company also has a presence in the foods business.

Godrej Agro vet Ltd. – the market leader in animal feeds and innovative agri products in India. The
Company also has a presence in the branded poultry, rural retailing and oil palm sectors.

Godrej International Ltd. – engaged in international trading.

Godrej Sara Lee Ltd. – a joint venture with Sara Lee Corporation, USA and a leading Manufacturer of
household insecticides.

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Geometric Ltd. – a specialist in Product Lifecycle management software solutions for the Mechanical
design, manufacture and industrial markets.

Godrej Properties Ltd. - a leading developer of residential and commercial premises.

Godrej Hershey Ltd. – markets juices, fruit drinks, soya milk based drinks, edible oil and Packaged tea. In
FY 2006, GBFL has acquired 100 percent stake in ‘Nutrine Confectionery Company Pvt. Ltd.’ (Nutrine). In
April 2007, the company entered into a joint venture with the Hershey Company, North America’s leading
chocolate and confectionery manufacturer, to Manufacture and distribute confectionery, snacks and
beverages across India. Being part of the Godrej Group allows Godrej Consumer Products to draw upon the
rich heritage and Experience of the Group.

In line with GCPL’s vision and long-term business objectives, all corporate Decisions are independently
taken by the Company’s highly respected Board in conjunction with Competent management teams,
keeping in view the best interest of all its stakeholders.

Ardeshir Godrej (1868-1936) 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 of industry in India. He produced the first finest
security equipment, and 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.

On 7th May, 1897, Ardershir Godrej gave up law and took up lock making. Godrej and Boyce Mfg. Co.
Ltd., was established at Lalbaug, Mumbai. This was the holding company of the Godrej Group. On 3rd
March, 1932, it was incorporated with limited liability. Even though Boyce was a business partner for a
limited period only, his name was retained for legal purposes.

The Godrej Name displaced well established foreign brands from the Indian market. The name 'Godrej'
engraved into the shiny metal of the Godrej Locks came to be known as a symbol of self reliance, trust-
worthiness, assertiveness and progressiveness for a new generation of Indians.

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Ardeshir Godrej's relentless quest of self-reliance made him explore newer avenues of opportunities.
Manufacturing Soap was one of them. In the year 1918, Godrej Soaps Limited came into being. In 1920, he
revolutionized the Soap industry by manufacturing the first toilet soap purely from vegetable oils. Before
that, animal fat was used in soap manufacture. For his achievement, Ardeshir Godrej was bestowed with
praises from India and from foreign lands too.

In April 2001, Godrej Industries was formed the consumer products division of Godrej Soaps Limited was
de-merged to form Godrej Consumer Products Limited. In the same year, Godrej Soaps was renamed
Godrej Industries Limited. Godrej Industries expanded its portfolio of products. It added a slew of
investments to its associate companies, while re-in forcing its existing businesses that include oleo
chemicals, veg oils and medical diagnostic equipments.

As they say no guts, no glory. But at Godrej, we must say it has been a glorious 106 years of being the face
of Indian industry. We have always set the trends, always defined the market place and always achieved our
glory. Here is a quick preview of the various milestones we have crossed in the past 106 years.
AWARDS AND HONOURS

• Godrej Consumer Products Limited ranks 9th in the Great Place to Work Survey for 2008. • GCPL, the
Highest Ranked Indian FMCG in Asia's Hot Growth Companies' List by Business Week. • Godrej
Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For study. This study was
jointly conducted by Business Today, Mercer and Taylor Nelson Sofres (TNS) . • Godrej Consumer
Products Ranks 6th in ET-Hewitt Best Employers of India survey . • GCPL ranked 15th in Great Places to
Work 2006 survey . • The Corporate Citizen of the Year Award given by Economic Times. • Flagship
brands Good knight, Cinthol and Ezee selected Super brands by the Super brands Council. • Godrej Sara
Lee, the JV between the Godrej Group and Sara lee Corporation, USA is acknowledged the World's largest
mat manufacturers and South Asia's largest manufacturers of Coils. • Godrej Consumer Products Limited,
adjudged as a Business Super brand by the Super Brands Council. • The Return on Capital Employed and
Return on Net Worth ratios of Godrej Consumer Products - the highest in corporate India. • Godrej
Consumer Products was awarded the "Best Managed Workforce" award given by Hewitt Associates and
CNBC TV18. • Godrej Consumer Products features in the Top 25 list of Great Places to Work (survey
conducted by Grow Talent in association with Business World) for four years in a row. • Lifetime
Achievement Award for Godrej Industries from CHEMEXCIL, the Basic Chemicals Pharmaceuticals and
Cosmetics Exports Promotion Council.

2006 ❖ Lalji Mehrotra Foundation Award for Excellence, conferred by National Society for Equal
Opportunities for the Handicapped. ❖ Great Son of India Award given to Sohrab Godrej by National
Convention for Protection of India's Resources and Environment. 2005 ❖ BNHS Green Governance Award
for the Category - Conservation & Restoration of Habitat, awarded to Godrej & Boyce Mfg. Co. Ltd
Objective
To know the dealers perceptions towards their sale of home appliances.

➢ To study and evaluate the various complaints of consumers on various aspects like after sales services,
pricing, and quality.

➢ To know the customers needs and wants.

➢ To know that how many customers are satisfied or dissatisfied?

➢ To find the awareness among the customers about GODREJ and its new products.

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➢ To find out the strength and weakness of product and its competitors

➢ To make suggestion, if any to improve existing condition.

Segmentation, targeting, positioning in the Marketing strategy of Godrej–
Catering to the needs of such large array of consumer segments is only possible when the population is
segmented based on the similar population characteristics. Godrej uses the mix of demographics geographic
and psychographic segmentation variables such as income class, profession, age, gender, behavior, region
etc.
Selective and differentiated targeting strategy is used by the company for offerings of different group
companies.

Godrej uses value-based and user benefit based positioning strategy to highlight the intrinsic culture and
attachment that the brands have with the customers over the years.
• Competitive advantage in the Marketing strategy of Godrej

1. Big Conglomerate:- Godrej have become a big conglomerate offering services

and products ranging from agri products to security to real estate solutions. Experience in such a
diverse nature of businesses is helping the company supporting the businesses hand in hand and
emerge as a prominent player in the market.
2. Vast experience::- More than 120 years old company, extensive experience in the business it operates
into, properties at some of the prominent locations, financially strong and deep-rooted to understand the
need and wants of the customers, is what helps the company in being competitively ahead of its peer

• BCG Matrix in the Marketing strategy of Godrej

Godrej business segments are categorized into three businesses Godrej Consumer Products (GCPL), Godrej
Properties (GPL) Godrej Agrovet Limited (GAVL).

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Out of these businesses the consumer products business vertical and Godrej properties are Stars in BCG
matrix while Agrovet is still emerging and is facing tough competition from the peer companies, therefore,
it is the question mark in the BCG matrix.

Distribution strategy in the Marketing strategy of Godrej

The Company operates with its own sales channel along with the authorized distributors, resellers, retailers
and e-commerce websites who help the brand in making its offerings available to the remotest location of
the country under consumer goods and electrical appliances segment.

While in those of industrial products and real estate business, the Company have its own sales team for
growth and popularization of the business.

Marketing Strategy Of Godrej Interio Brand And The Reasons Behind Success

Godrej has been in business for a large period of time and therefore developed a lot of experience. This
experience favours such a brand to develop unique strategies for the marketing of its products. Some of
the reasons that can be cited for its success are:

• Analysing The Target Market: It is important for any business to understand the dynamics of
the target market. If it is clear for whom you are making the commodities it is easier to do the
marketing. Target market can be divided into two categories- household and institutions. The
demand for furniture is further determined by three major factors-market population, income level
and industrialization level. By planning a compact market strategy Godrej Interio has achieved
great heights

• Segmenting, targeting and positioning: Godrej Interio in order to cater to the needs of such
overwhelmingly populated country has made divisions like demographics geographic and
psychographic segmentation variables like income class, profession, age, gender, behaviour, etc.
Godrej Interio also uses value based and user benefit based positioning strategy to highlight the
intrinsic culture and attachment that the brands have with the customers over the years.

• Distribution: The Company operates with its own authorized distributors, resellers, retailers, e-
commerce websites that helps in the process of distribution of its products even in the remotest of
locations in the country making it accessible even to them.

• Brand equity: Godrej has been ranked 51 in Forbes magazine list of innovative growth
companies. The brand has also been ranked second most trusted brand in India and is among the
most diversified and trusted conglomerate.

• Competitive Analysis: Godrej being present with a number of options in the market helps it to
remain ahead of its competitors. Godrej Interio too keeping tab with the changing times has able
to cater to the demands of the people but also faces competition from brands like usha lexus, zuari
who are right behind it.

• Customer Analysis: Godrej has reached people from the age group ranging from 20-60 years.
The brand Godrej Interio has acquired its customers for years through the brand recall and strong
brand image that the company has built through hard work and achieving customer satisfaction.

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 • High Quality Products: Godrej is known for its high quality products. Godrej Interio is no
exception. With its reach in home accessories from table, chests, drawers, modular kitchen it has
showed its class in each and every product it has made.

• Promotionn: Godrej Interio has used digital technology to attract potential customers. This
resulted in the company drawing over 20 lakh customers in the year 2013-14. This also resulted in
boosting many visitors to the company’s website and more than 5000 queries every month.

Godrej Industries Product Strategy:

The product strategy and mix in Godrej Industries marketing strategy can be explained as follows:
Godrej Industries is one of the biggest companies in India. Being a large conglomerate Godrej Industries
manufactures a wide variety of products in its marketing mix product strategy.

• Godrej Consumer Products:

It is a house of brands, few of them are Good Knight, HIT, Cinthol, aer spray, nupur and ROBY. Godrej
Properties, a giant in the real estate business, builds properties in three segments namely; residential
projects, commercial projects and township projects.

• Godrej’s Nature Basket:

It is a retail segment from Godrej, which provides foods sourced across the globe. Product segments for
Godrej Nature Basket include fruits, vegetables, meat, snacks and dairy products. This gives an
overview on the product portfolio of Godrej Industries.
• Godrej Chemicals:
There products are used by other industries and factories to manufacture their products. The product
width of Godrej Chemicals include fatty acids, glycerine and surfactants.
• Godrej Agrovet:
It provides animal feeds so as to support the agriculture, as it is the backbone of Indian economy. The
products it manufactures are Bovine feed, Poultry feed, Aqua feed and feeds for other animals. It
promotes oil palm cultivation, manufactures herbicides, insecticides and organic manure. It also
produces high yield variety of crops, dairy products like milk, curd and yoghurt.
The company has also diversified into housing finance by providing affordable loans for buying houses

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Godrej Industries Price/Pricing Strategy:
Below is the pricing strategy in Godrej Industries marketing strategy
Godrej Industries has got a huge business portfolio, and its pricing is dependent upon the
Sector it is in. poultry feed are sold exclusively by dealers in bulk to farmers, this reduces the prices of
these products. Consumer products are priced low because most of the purchases comes from these
segments and market skimming is done by all brands. Price of Good Knight mosquito repellent packs
costs around ₹70, the price of Godrej Cinthol products range from ₹32 to ₹175.

Price of real estate properties depends on the type of city, the location and the purpose for which it is
built. Price of residential properties typically starts from ₹50 lakhs. In the food retail segment; i.e.
products of Godrej Nature Basket, which sells goods for daily consumption, price is less, also they
provide frequent discounts on special occasions. This gives an understanding of the marketing mix
pricing strategy of Godrej industries. The company has an annual revenue of more than $4 billion across
all its business operations.

Godrej Industries Place & Distribution Strategy:

Following is the distribution strategy in the Godrej Industries marketing mix:
Godrej Industries has got a presence across India. Being a large conglomerate, the presence of Godrej is
felt at any business environment. The extensive reach of Godrej brand is a part of its marketing mix
place strategy. Chemicals are sold by authorized dealers only, as they are mostly purchased in bulk
orders. In the case of agribusiness, the feeds can be purchased of retailers and dealers located in the rural
areas. Godrej has a vast distribution and retail network, be it urban or rural. Godrej products are
primarily sold via retailers. In the case of Godrej Properties, it is the job of sales team to listen to
prospective buyers and also to look out for them. These are sold primarily in Business to Business sales
in the case of commercial properties. Godrej website provides prospective customers an easy platform to
reach out to Godrej Properties in case of any enquiry or discuss any business deals.

Godrej Industries Promotion & Advertising Strategy:

The promotional and advertising strategy in the Godrej Industries marketing strategy is as follows:
Godrej spends a huge sum of money when it comes to advertisement and promotional expenses. Such
promotional activities help Godrej to be connected with customers and help build up a good relationship
with them. Primary promotional activities include Television advertisement, newspaper, magazines,
billboard, hoardings and distribution of Pham plates in strategic locations. Over the years, Godrej has
roped onto famous personalities and Bollywood stars to play the role of their brand ambassador. Godrej
is involved in various Corporate Social Responsibility projects, which gives them build trust among
consumer and government enterprises. Activities include GoGreen projects which help revive the
dwindling Mangrove cover. They are also involved in educational activities. They are also

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manufacturing innovative products like smokeless mosquito repellent cards and huge investments in
green buildings. Hence, this summarizes the marketing mix of Godrej Industries.
Godrej Industries:
Godrej Industries is an Indian conglomerate headquartered in Mumbai. Godrej was founded in the year
1960 and since then had been involved in plethora of business activities which has made them one of the
most prestigious holding groups in the country. Godrej’s business is spread over 18 countries. It
primarily started as a chemical manufacturing company, but their businesses are now diversified across
consumer goods, agribusiness, real estate and IT consulting.
Innovation focused business strategy of Godrej
In 1922, Godrej – the makers of the world’s first vegetable oil soap Chavi, amidst the Swadeshi fervor,
introduced Godrej No. 1. This breakthrough by Godrej, given that the European soaps were generally
made of animal fat against the principles of non-violence & vegetarianism in India, received
endorsements by the likes of Rabindranath Tagore, Annie Besant, and C. Rajagopalachari.
This was amongst the first of many brushes with success for Godrej in the fast-moving consumer goods
space, having struck a chord with the masses. GCPL ranks first in household insecticides in India and
Indonesia and currently expanding its footprint in Africa. It is the number one player in hair color
products in India and Sub-Saharan Africa and among the leading players in Latin America. Godrej stands
second in air fresheners, soaps, and liquid detergents in India, and first in air fresheners and wet wipes in
Indonesia, according to their annual report 2020-21.

The FMCG industry has witnessed myriads of disruption on the back of innovative products from the
house of Godrej. Few examples – Good Knight Fast Card (the first 1 rupee insecticide product), Godrej
Expert Rich Crème (first hair color crème in a sachet in India), or Aer Pocket (First paper-based gel
bathroom air freshener), Goodknight Fabric Roll-On (first fabric dot-based insect repellent), Godrej
Protekt Magic (first powder to liquid handwash), Hit Anti Roach Gel (innovative gel solution to destroy
roach nest).

Such innovative products have resulted from the design-led thinking at the heart of GCPL’s brand
strategy. Started by Nisaba Godrej, the design-led thinking of the combined entity was given a structure,
known as ‘RIDE’ – Research & Development, Innovation, Design, and Expertise – where all teams come
together, bringing in new perspectives to product formulations, packaging, and marketing communication
The company has refashioned its approach by accelerating its innovation pipeline, ramping up internal
capabilities, investing significantly in R&D and sharing learning across geographies to create more
exciting products.

Innovation Strategy of Godrej

In an interview in 2014, Nisaba Godrej, who oversees innovation strategy, stated that Godrej spends up to
1% of sales on R&D. GCPL’s Innovation is a two-pronged approach: in-house and collaboration based.
The former cashes in on the in-house expertise and know-how. At the same time, the latter capitalizes on
external tried-and-tested technologies, which, when married to GCPL’s scale, reach, and equity, deliver
trailblazing yet relevant products to value-seeking consumers.

Frugal innovation focuses on delivering more value at lower costs to more people. It is about adopting a
mindset of simplicity and meager cost without compromising the quality of the user experience, stripping
away the extras, and delivering simple, hardy, and less resource-intensive products of good quality.

While innovation has traditionally meant the development of new products with more advanced features
at premium prices, in emerging markets, for products to appeal to the millions who don’t have millions,
companies have begun realizing the need of mastering the art of frugal innovation.

For Godrej, the hair color industry pioneers, the ideology of constantly innovating and making hair color
with care accessible to the masses proved to be a recipe for renewed success. The portfolio has seen
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experiments with new formats and packaging for years and GCPL struck gold. In 2012, India saw its first
crème hair color launched in convenient pre-measured sachets, making hair coloring extraordinarily
suitable. The disruptive pricing made upgrading almost irresistible, forcing competitors to play catchup
with their offerings.

Take the example of another dominant space for GCPL, the Rs 3600 crore- household insecticide
category. Around 56% population of the country (the figure as high as 70% in rural India) does not use
mosquito repellent. Godrej identified consumers’ need to move away from the coil format and understood
the hindrance of high pricing of non-coil designs and an insufficient supply of electricity

Godrej- Continuing product diversification to solve real problems

An inspiration from its Indonesia business, the product was substantially modified for the Indian market
giving birth to one of the fastest-growing products for the company.

An instant hit across rural areas where power supply is erratic and inadequate; the innovation was a step
in the right direction away from the mosquito repellent coils. Hence, it sold like hotcakes and touched
a Rs 100-crore turnover in less than a year.

The focus on innovation helped Godrej soar in its core categories and discover its footing in
adjacencies, thereby broadening its portfolio and driving additional sales. Case in point, the air care
category. Did you know that GCPL was selling Ambi Pur through a joint venture with US-based Sara
Lee? However, they exited in 2010 when Sara Lee sold its personal care business to Procter & Gamble,
bringing the 15-year-old partnership to an end. Cut to 2012, Godrej announced its re-entry into the air
care category with a new brand, ‘aer.’

This was their independent foray into the Rs. 300-crore category which ironically, they had been
instrumental in developing for the past decade and a half. This lifestyle category was then growing by
20%. The launch of Godrej Aer funnily involved Nisaba Godrej clarifying at press conferences that it
wasn’t a spelling mistake.

Little did the competitors know that GCPL aimed at spelling out a revolution in the air freshener category
– home, car, bathroom. The brand promised contemporary design, an on/off feature, and gel
technology at the core of the products. The category was mainly restricted to block and room freshener
spray formats.

However, they exited in 2010 when Sara Lee sold its personal care business to Procter & Gamble,
bringing the 15-year-old partnership to an end. Cut to 2012, Godrej announced its re-entry into the air
care category with a new brand, ‘aer.’

This was their independent foray into the Rs. 300-crore category which ironically, they had been
instrumental in developing for the past decade and a half. This lifestyle category was then growing by
20%. The launch of Godrej Aer funnily involved Nisaba Godrej clarifying at press conferences that it
wasn’t a spelling mistake.

Little did the competitors know that GCPL aimed at spelling out a revolution in the air freshener category
– home, car, bathroom. The brand promised contemporary design, an on/off feature, and gel
technology at the core of the products. The category was mainly restricted to block and room freshener
spray formats.

The innovation was combined with a focus on experiential marketing. The idea was to spread fragrance
via print and awaken a fragrance brand’s sense of smell. Perusing the Bombay Times on September 18,
2012, the readers experienced a pleasant aroma. The front page in The Times of India led the reader with

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a slug stating, ‘Fresh news and fresh aer in Bombay Times today. Check it out. The fragrance effect in the
supplement was created through a fragrance spray technique at The Times of India Press, while Godrej
provided the fragrance mix of the brand essence. Other such features followed this in print in the rest of
the metros. In 2016, Godrej aer pocket was launched to redefine bathroom fragrances with power gel
technology in a paper-based format and propagated it with the tagline, Happy Bathrooms! As reported by
BusinessWire in 2020, overall, the bathroom segment had grown historically at a CAGR of over 9%. In
the car freshener category, the Godrej Aer click and then Aer twist launched in 2017 overtook
incumbents’ market leadership in no time.

Disneyland is not famous for its world-class rides or high-end retail merchandise. Disney is famous for its
integrated experiential marketing strategy. How?

All in all, the innovative click, twist, and spray formats coupled with slim-gel, clever gel technologies
distinguished Aer on the lines of design and fragrance and put GCPL in the first spot in air freshener
products in India and Indonesia. Currently, the air freshener industry in India is estimated at Rs 1,200
crores, and GCPL succeeded in commanding more than 50% market share in this segment by 2020,
according to their 2019-20 annual report. As of 2020, air fresheners were amongst the fastest-
growing products in GCPL’s portfolio at 35% CAGR.

An anecdote here from my B-school days might add to the point I am trying to make. Godrej Aer came up
during a pre-placement talk, as did its clever gel technology. I still remember the speaker saying, “How
hard is it to imagine a spill-proof solution for a drive on Indian roads?” There it was again, in plain sight.

Staying true to its principle of constantly innovating, the latest addition to the portfolio is India’s first-
ever mobile-enabled fragrance diffuser. The device is Bluetooth-enabled and can be controlled via a
mobile app available for Android and iOS. With this feature, the consumer can adjust spraying schedules
and get timely notifications about refill and battery replacements.

Yet again, hand wash was not a GCPL dominated category. The category was still finding its feet due to
its perception of being expensive, keeping it out of reach, or considering many households.

An innovation that managed to break this barrier and take the category by storm was Protekt Mr. Magic,
the first-ever powder to liquid handwash. Its disruptive pricing of Rs 15 (for refill), one-third the cost of
existing liquid handwash refills, aimed to nudge the Indian households across segments and geographies
to adopt this innovative format. The handwash market in India was pegged at Rs 740 crore in 2018, with
a CAGR of 15 percent. So, the market was wide open and the opportunity lucrative.

Interestingly, the COVID wave significantly commoditized the category of handwashes. The penetration
of hand washes went up to 32.9% during January-September in 2020 from 11.9% a year ago. Even
with the dynamics shifting tremendously, leaving little to no differentiation among competitors, Mr.
Magic still manages to stand out in its format as well as pricing.

Godrej industries limited source

Godrej Industries is a subsidiary company of Godrej Group, a manufacturer and marketer of consumer
goods. The company has significant interests in consumer goods, real estate, agriculture, chemicals, and
financial services across 18 countries. The company has its headquarters in Mumbai, India.
The company was founded in 1963 by an enthusiastic and determined businessman, Ardeshir Godrej.
Today, the company is listed on the National Stock Exchange of India (NSE) with the stock name
GODREJIND. The company owns a 23.8% stake (as on 31 March 2018) in Godrej Consumer Goods
which is an FMCG subsidiary. It owns a 56.7% stake (as on 31 March 2018) in Godrej Properties, a real
estate development firm. It also owns a 58% stake (as on 31 March 2018) in Godrej Agrovet which is an
agri-business company.
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Quick Stats on Godrej Industries –
CEO Nadir Godrej
(MD)

CMO Arvinder Singh

Area Served Across 18 Countries

Industry Chemicals

Market Revenue ₹15,064 crores (US$1.9 billion) (2022)

Vision Enriching quality of life everyday, everywhere

Tagline Let’s make Goodness

Segmentation, Targeting, and Positioning

The needs of the growing population could be catered to if and only if the target audience is segmented
based on similar characteristics. The company uses various demographics, including income class,
profession, age, region, etc.
Godrej Industries segments into –
• Godrej Agrovet
• Godrej Chemicals
• Godrej Consumer Products
• Godrej Capital
• Godrej Properties
Godrej uses a selective and differentiated targeting strategy for the offerings of different group
companies. Godrej mainly caters to the age group of 20-60 years.
Godrej is efficiently positioning its brand following the user-based and value-based strategy to highlight
its overwhelming relationship with the consumer for years.
Godrej Industries Limited’s brand-neutral lifestyle platform, Godrej L’Affaire, launched the intriguing
digital video #RespectAllBandhans on the occasion of Raksha Bandhan to encourage people to treat all
relationships with love and respect.
Influencers like Simone Khambatta, Shashank Sanghvi, and actor/RJ/TV host Salil Acharya are included
in the video, and they powerfully portray the idea of daily sharing of love and respect for everyone.

Godrej launched a new tv ad in which the actress Anushka Sharma was discussing the problems of
greying hair and discouraging posts on social media with her friend. But the actress assures her that it’s
not a ‘badi problem’ and can be solved with little money.
As per the CMO of Godrej Consumer Products, their collaboration with actress Anushka Sharma is
helping them to amplify the awareness of the category as well as their product across rural and urban
markets.

Influencer Marketing

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Godrej Industries have a strong grip over influencer marketing tactics. They have collaborated with many
celebrities from different backgrounds. Anushka Sharma, a famous Bollywood actress, worked with them
on their TV campaign for their hair colour brand. Considering the impact of this digital era, they also
collaborated with another Bollywood actress and chef, Tara Deshpande for their campaign contest
#SahiShuruaat asking their audience to share the food items which connected them to their partner.

E-commerce Strategies

Godrej sells all its products on its official website and it also aims to sell its products to the consumer
through online marketplaces like Flipkart, Amazon, and Snapdeal. They are utilizing different digital
platforms to their best. Moreover, they are available in the nearest shops, malls, and stores which
encourages the consumer to buy their product and this makes them more trustworthy.

Mobile Apps

Godrej Industries have different mobile apps for different work. They have developed their well-equipped
system to combat Android, IOS, and Windows with specialized features for tablets, mobile phones, and
PCs.
Some of the applications developed by the company are as follows:
• Godrejite – 3.6 ratings and 10T+ downloads
• Godrej Aer Smart Matic – 2.0 ratings and 1L+ downloads
• Godrej Yoddha – 4.1 ratings and 10T+ downloads
• Godrej Inventory Application – 4.0 ratings and 1T+ downloads
• Training Godrej Yoddha – 4.0 ratings and 5T+ downloads
• Godrej Bandhan – 4.5 ratings and 1T+ downloads

Content Marketing Strategies

The main aim of Godrej Industries is to capture a big portion of the market. Keeping that in mind, they
are very active in Television run ads and somewhat on social media. They are well known for the market
they are capturing and thus, run advertisements focusing on every household in the country. Being
budget-friendly, they get more attention from the public and more consumers for the product. Godrej is
fairly active on its social media handles and along with that, there are various websites which post blogs
and articles about godrej industries.
This brings an end to the insightful marketing strategy of Godrej Industries.

GCPL makes strategic moves

Jayashree Mendes, Manufacturing Today, 01 May 2016
When you work with a company that has been around for more than 100 years and offers a combination
of great careers and rewards, a good work environment and intelligent engagement, it's half the battle
won. Pack in innovation and a spree of global acquisitions and strong on-ground execution, and you are
set. With a keen eagerness, we set out to Godrej One, the company's new global headquarters at Vikhroli,
to meet the two key people at Godrej Consumer Products Ltd (GCPL) - Vivek Gambhir, MD, and Dr
Rakesh Kumar Sinha, head (global supply chain, manufacturing and IT), and understand how the
imperativeness of globalisation has tempted them to acquire and absorb far-off competitors to achieve

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global presence. Importantly, and a tough one to meet, is the manner in which the duo have created great
synergies and a respectful courtship.
Companies do not simply snap together like plastic building blocks. This is particularly true where
different national cultures are involved, but even a cross-town merger can disrupt the key driver of value
creation. The most important asset in any company is esprit de corps: the motivation of individual
employees and their ability to collaborate in teams. And Gambhir understood that early on when he joined
the Godrej Group in 2009 and was responsible for enhancing the strategic capabilities within the Group
companies, guiding overall Group strategy, conducting portfolio analysis, leading M&As and driving
special projects. He says, "What we have been trying to do over the last few years across the globe and at
GCPL is bring in cohesiveness and focus into our strategy. So we took a good look at our portfolio,
determined our strengths and looked at ways to become stronger. The first part was to understand places
we have leadership positions. The second part was to plant seeds for the future and look at areas that
could be new growth vectors for us over the next 10 years, while understanding what bets to place going
forward."
In keeping with this, Gambhir set about defining the goals for the company through CREATE, the 10×10
objective and the 3×3 strategy. "CREATE is about defining the set of businesses we want to remain
focused on, 10×10 was a goal in terms of the financial vision for the company over the next 10 years, and
3×3 is building a presence in three emerging markets (Asia, Africa, Latin America) across three
categories (home care, personal care, hair care).

Innovating for growth

GCPL garners about 35-40% of its incremental growth through innovations. Gambhir says, "Besides
looking at disruptive new products, there is a constant effort to invigorate the core portfolio through
renovations."
One of its biggest successes in India, and it has been the first company to do so, is to launch a hair colour,
Godrej Expert Crème, in a sachet. Recently it launched the deodorant gel In India in a tube format under
the Cinthol brand. Gambhir says that besides being the first to the market, they are sold at disruptive price
points. Most of the company's innovative products involve collaboration between R&D, packaging,
manufacturing, marketing, and design.
GCPL does not follow the staid industry practices in its manufacturing too. For one, it refrains from
looking for key trends it can spot through demand forecasting techniques. Dr Sinha says, "We run our
supply chain largely without the need for a robust demand forecasting. Immaterial of the forecast
accuracy, we run an efficient supply chain and meet consumer demand. That comes through cultivating
an agile supply chain. We believe in tracking the market place on a daily basis through sale of our
products and consider that as the trigger."
A little known fact in the industry is that GCPL is one of the few FMCG companies in India to implement
a replenishment model based on Theory of Constraints (TOC). The fact that it eliminated forecasting
implied that it needed to switch to a model like TOC to identify and empower the bottlenecks in the
supply chain for quicker replenishment.
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Dr Sinha stresses that the efforts of the whole organisation are directed towards fulfilling consumer
requirements. "The first process is telling the employees that their main KPI is not shop floor
productivity, but recognising and fulfilling consumer demand," he adds.
So how does the company realise if they are missing out if they are losing a certain amount of consumer
demand in the absence of demand forecasting? Dr Sinha says with a smile: "When we start TOC
implementation in a new country, we find that about 15-20% of consumer demand is unmet. We take
steps to bring that to as low as 2-3%. That's a straight 12-13% increase in top line. The other factors that
matter to us in manufacturing are steps to cut down costs, and make manufacturing more responsive. But
overall, the employees must believe that we are here for the consumer."
GCPL manages 20 in-house manufacturing facilities across Baddi (Himachal Pradesh), Puducherry and
has its biggest plant in Malanpur (Madhya Pradesh). A major chunk of the plants are in the North East. A
facility in North East might increase logistics cost, but it is not concerned with that. So long as the cost to
serve the consumer is lower, it makes good sense. Gambhir says, "The excise tax benefits we accrue are
more than the logistics cost we incur. Our manufacturing strategy globally is also largely local. The main
differentiator between us and other players is that we have kept manufacturing close to the consumer. So
whether it is Indonesia, Africa, or India, our belief is that closer the manufacturing is to a consumer the
more relevant we can be to tailor products to a consumer's needs and agile in serving them. Not only have
we managed to increase production capacity and reduce conversion costs, but we are also making our
overall system more 'green' by lowering specific energy consumption."
Dr Sinha is quick to jump upon the flexibility of manufacturing processes it has adopted in terms of Just-
in-Time. It prefers that one assembly line make 20-30 different kinds of products instead of being
dedicated to one product. Homing in on his favourite subject, Dr Sinha says, "This allows us to make
production schedules switches, and now we have the capability to switch at short notice. We are the only
company that makes daily changes in production schedule. Typically companies talk of freezing
production to a particular schedule for a certain number of days. But we believe that the moment you
freeze production schedule, you are doing a disservice to consumers. Some demand could go unmet.
Hence, this flexibility allows some freedom. And we are talking about 100 different lines across the 20
facilities we have."
Acquiring global companies offers another advantage - strategic sourcing of raw materials, and if the
same material is being sent to other factories, GCPL stands to gain as it can negotiate with suppliers as
volumes increase.

Backend integration
An agile facility requires responsive software that will allow the manufacturing unit to plan and schedule
production, implement lean processes, and manage lifecycle quality levels of goods. GCPL has turned to
the SAP platform to run its operations in India and other geographies too. SAP manages the entire
workflow right from the ordering system to distribution, also helping the company manage its supply
chain. It uses APO (advanced planning and optimisation), a module of SAP to plan efficiently and
manage the front-end distribution system. Since the company manufactures multiple products at a facility,
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SAP's Manufacturing Operations Solutions help them execute batch-managed materials precisely with
continuous in-process control. Built-in reports detail batch lifecycles and quantities enabling product
traceability. Some benefits the company has gained are: Higher asset utilisation; shorter manufacturing
cycle time; improved on-time delivery performance; and lower procurement and manufacturing costs.
For its distributor network, the company has installed a separate package, G One (Godrej One), which is
integrated in a seamless manner with SAP.
Across its global acquisitions, aiming at alliance and absorption was important to taste success. Gambhir
says the principle it used was values based partnering. “We require strong local brands, and it is important
that we do not over-integrate. We begin with selective integration where operational autonomy continues
to remain with the local business, even when we feel the tremendous opportunity for synergies. So after
an acquisition, we spend time in integrating the backend, which starts with IT and then finance.”This is
followed by working with the local teams to identify synergies – mainly in the supply chain. “It could be
helping the companies to reduce cost, improve manufacturing efficiency and productivity, and improve
workforce engagement. We tell them that savings generated should partly flow to the bottom line and a
certain amount ploughed back into brand building. It’s remarkable that a few years later the foreign
company would have seen a significant improvement after becoming a part of the Godrej group,” says
Gambhir.

Global benefits
The increasing global footprint could also mean a neck-and-neck competition against players who are
also global in their approach. Hence, GCPL quickly needed to cater to customers who began demanding
global packaging, global fragrances and global design. "We follow a multi-local model, centred on
values-based partnering and operational autonomy at the local level. What has worked well for us is that
in our categories we have become innovation leaders. As we start looking at bringing in more global
benefits, it allows us to up the ante in terms of quality and innovation we can create in our products," says
Gambhir.
The company is quite clear about the kind of acquisitions it wants to make: Remain focused in areas
where it has a competitive advantage. The first choice would be the geographies it wants to focus on,
followed by the category. "Typically, we acquire largely market leaders, who are strong and can be made
stronger. Then we figure out whether the acquisition makes strategic sense before getting into due
diligence. We tend to retain as many of the management team as possible. So lot of time is spent on the
fit, the chemistry and the cultural alignment. An important metrics is economic value added (EVA). So
we look for acquisitions that will break even or become EVA positive in 5-7 years. We are fairly
conservative in the kind of valuations we need to pay; the reason we don't participate in bidding
situations," says the Harvard educated Gambhir.
He reiterates that the advantages of working in a company that fosters the entrepreneurial spirit helps
make a difference to people's lives, which is what GCPL wants to do.

Godrej's strategy for growth

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Godrej Consumer Products is implementing a two-pronged strategy for growth, going forward.
On the one hand, it is planning to expand its product portfolio and augment its market share in the
domestic market.
On the other hand, it has set sail for overseas markets. With the acquisition of Keyline brands in
the UK in October 2005, it has made a strong entry into the UK market and is trying for a couple
of more acquisitions.
On the domestic turf, it is leveraging its leadership position in hair colourants and is diversifying
its soap brands. Easing of competition pressure to some extent and a resurgence in FMCG sales
will only aid the company post better numbers.
Godrej brands posted a 20 per cent growth in FY06. Analysts peg the sales growth in FY07 and
FY08 at over 40 per cent and 25 per cent, respectively. With control over raw material costs
through in-house production of fatty acids (highest in India), Godrej is expected to register better
bottom line growth in the coming years.

Outward bound
Godrej is going in for international acquisitions with twin strategies - diversifying risk and tapping new
markets. It expects good synergies from the Keyline acquisition and a double-digit growth in these
brands. It plans to introduce one brand in India in FY07. Moreover, Keyline outsources half its
production, a major chunk of which could come to Godrej.
"We would use the existing distribution channel of Keyline brands to market Godrej products, with an
eye on the Indian diaspora in Europe and the Caribbean," says Hoshedar Press, executive director and
president.
Analysts believe that Godrej is in the advanced stage of making a couple of acquisitions this year.
The Keyline brands garnered a revenue of £5.2 million (about Rs 44.08 crore) during November 2005-
March 2006, while PBT was £0.6 million (about Rs 5.09 crore). Major Keyline brands include Adorn
(hair spray), Aapri (skin care), Cuticura (talcum powder), Erasmic (shaving products) and Nulon (hand
creams).
Sunil Sapre, executive vice-president (finance & commercial), says, "Although exports account for a
minuscule 3 per cent of the business, at present, we see a big opportunity in South East Asia and Africa."
Analysts see exports growing to 20 per cent of the total business, including the Keyline brands.

Segment sense
The company is the leader in hair colourants with 40 per cent market share. It witnessed a 22 per cent
growth in this business in FY06. It is setting up a new facility in Sikkim with a capex of Rs 10 crore (Rs
100 million).
An analyst at HDFC Securities expects the company to maintain its market share, even as modern day
evils like pollution are likely to create more users. The fashion segment in hair colours would be another
driver.
Sapre says, "Our focus would be on converting non-users into users, especially in the hair colour
business."

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The soaps business of Godrej, which accounts for 63 per cent of its revenues, posted a 17.5 per cent
growth in FY06, compared with the industry growth of 3.2 per cent.
The company sees good growth potential in the business and stable vegetable oil prices (the chief raw
material). With a 9 per cent market share in this segment, it stands second, though way behind the market
leader - Hindustan Lever - which has about 45 per cent share.
Godrej aims to increase its share by 1 per cent every year with focus on freebies, which, however, could
lead to some margin loss. Analysts feel that the high total fatty matter in Godrej's soaps at 76 per cent,
vis-a-vis 60-70 per cent in most other soaps, is a positive. In liquid detergents, the company is a market
leader with its Ezee brand at over 80 per cent market share. But this segment may see limited growth,
according to analysts. In the shaving cream category, the company is trying to grow with higher-end
products and improved advertising, while its talcum powder business, where it banks on freebies, is likely
to remain stagnant, according to them.

Competition
The company operates amid stiff competition. HLL is in a resurgent mode and ITC has plans to enter the
soap business. There is competition from regional players as well. To fight competition, Godrej has been
introducing new variants and brands. It recently launched its age control soap - Evita.
Group chairman Adi Godrej says, "We plan to enter one new category of personal care segment every
year, provided we are able to differentiate our products." In hair colourants, the company has products at
all price points, from the Rs 7 powdered hair colour to the higher-end Renew and Coloursoft.
Price wars in FMCG will remain and exert pressure on margins. But, Godrej hopes to maintain margins
relying on certain internal economies. For example, it manufactures fatty acids, used in soaps, in-house
and enjoys economies of scale in buying vegetable oils. Vegetable oil prices are likely to remain soft this
year.

Tax benefits
The company will get 100 per cent excise exemption for 10 years in the north-east and Himachal and 100
per cent income tax exemption for five years and 30 per cent for another five years.
Sapre says the extent of actual benefit from tax exemption will depend on sales. Analysts add that some
states also offer transport/ power subsidies. To expand existing facilities and set up new ones, Godrej has
earmarked a capex of about Rs 105 crore (Rs 1.05 billion) this year.

Sector story
Of late, the FMCG sector has been moving faster. The sheer size of the market in India provides good
opportunities, despite competition and possible cost pressures if international raw material prices
fluctuate.
The sector is expected to grow to Rs 50,000 crore (Rs 500 billion) by 2010. Adi Godrej recently said,
"Rising demand with higher disposable incomes, implementation of VAT in more states and tax-free
zones would drive growth."

Valuation & financials

For FY06, the company posted 17 per cent growth in net sales to Rs 657.32 crore (Rs 6.57 billion), while
the operating profit rose 36.8 per cent.
The analyst at HDFC Securities says, "We expect the operating profit margin to grow to 21 per cent and
21.9 per cent, and net profit to rise 48 per cent and 34 per cent in FY07 and FY08 respectively."
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On trailing 12-month earnings, the stock trades in line with its peers. While Godrej trades at 25.5x, the
competitors trade at - HLL: 28.62x, ITC: 24.7x, Colgate: 30.98x and Nestle: 29.30x.
According to Prabhudas Lilladher estimates, Godrej Consumer trades at 24.9x and 21x its FY07E and
FY08E earnings. Analysts expect a 8-10 per cent rise in the share price after the upcoming stock split.
Marketing Strategy of godrej
marketing does not only include advertising and publicizing about a particular product or services, but
also means keeping up vidhayak changing trends in the market and consumer tastes and preferences. thus,
it include 4 p's of marketing namely PRODUCT PRICING PROMOTION AND
PLACE(DISTRIBUTION) this project is based on the marketing strategies adopted by Godrej company
with references to Godrej interio and Godrej consumer products Ltd (GCPL) . Godrej interio is the largest
company in the Rs 3000 crore organised furniture market it has been upgrading its product to match
consumer taste and preference

Analysis of Godrej Consumer Products Ltd

About 4Ps Model

The 4p model of marketing comprises elements of the product, price, promotion, and place (Chernev,
2018; Kucuk, 2017). The model is commonly referred to as the marketing mix. The marketing mix of the
Godrej Consumer Products Ltd A allows and facilitates it in achieving its marketing objectives as well as
in positively influencing the target audience (Baines, Fill, & Rosengren, 2017). The elements identified in
the marketing mix are typically used by the Godrej Consumer Products Ltd A for marketing its product
and service, and for brand development and building activities. These elements are critically fundamental
for the development and creation of marketing plans and marketing strategies by the Godrej Consumer
Products Ltd A – especially for developing and sustaining competitive advantage (Chernev, 2018; Stead
& Hastings, 2018; Grewal & Levy, 2021). Godrej Consumer Products Ltd A ensures that the elements
identified for the marketing mix model work together cohesively, and complement each other in all its
marketing strategies and plans (Abratt & Bendixen, 2018; Deepak & Jeyakumar, 2019).

1. Product

The product refers to the actual good or service that is being marketed to the consumers by Godrej
Consumer Products Ltd A, and which will be consumed by the target audience of the Godrej Consumer
Products Ltd A (Groucutt & Hopkins, 2015). The product or the service being offered by Godrej
Consumer Products Ltd A largely aims to fulfill a market need and demand, as well as works to create
demand by providing a unique and fulfilling customer experience (Stead & Hastings, 2018; Sahaf, 2019).

Quality
Product quality for Godrej Consumer Products Ltd A largely refers to how well the company is able to
satisfy the customers’ needs and demands through its product and service offerings (Baines, Fill, &
Rosengren, 2017; Deepak & Jeyakumar, 2019). In addition to this, the product quality for Godrej
Consumer Products Ltd A further includes the adherence of the company and its product and service
offerings to industry standards and benchmarks as well as the ability of the same to serve its meaning and
purpose comprehensively (Iacobucci, 2021; Groucutt & Hopkins, 2015; Chernev, 2018).

Customer demand fulfillment

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The ability of the product and service to fulfill customer demands as well as its purpose, and to work
efficiently and effectively are important facets of product quality for Godrej Consumer Products Ltd A
(Iacobucci, 2021; Deepak & Jeyakumar, 2019). Godrej Consumer Products Ltd A ensures that its
products are available for customers at affordable prices by controlling internal costs (Wu & Li, 2018).

Warranty
The warranty extended by Godrej Consumer Products Ltd A includes the guarantee that the company to
its customers regarding the functioning and the quality of the purchased food and service (Abratt &
Bendixen, 2018). In addition, Godrej Consumer Products Ltd A’s warranty also includes any
compensation that the company has promised to give the customers in case the product and service fall
short of the marketed benefits and functionalities (Išoraitė, 2016; Grewal & Levy, 2021; Kucuk, 2017).

Packaging
Godrej Consumer Products Ltd A focuses thoroughly on the packaging and makes sure it includes the
process of designing, evaluating, and developing a container for the products and services being
manufactured and marketed (Deepak & Jeyakumar, 2019; Baines, Fill, & Rosengren, 2017). The
packaging of the product and the service allows Godrej Consumer Products Ltd A to highlight the
product’s purpose, as well as provides ease in transportation, gives room for more prolonged shelf life,
and creates a unique and delightful customer experience (Kareh, 2018; Park, 2020).

Brand
The Godrej Consumer Products Ltd A invests in developing brands out of its products and service
offerings. This means that the Godrej Consumer Products Ltd A engages in brand-building activities for
its offerings i.e. associating specific designs and communications with its products to ensure
differentiation, and easier communication with the target audience (Gillespie & Swan, 2021)

Building the brand

The branding-building activities undertaken by the Godrej Consumer Products Ltd A ensure that its target
audience is better able to relate to the offerings (Abratt & Bendixen, 2018). Through this, the Godrej
Consumer Products Ltd A ensures higher loyalty and repeat purchases, as well as positive perception
creation for its offerings (Khan, 2014; Kareh, 2018).

Features
Product features or characteristics refer to the product traits and attributes present in the offerings of
Godrej Consumer Products Ltd A that allow the company to successfully deliver unique value to
customers through the products and services manufactured and offered (Varadarajan, 2015; Kotler &
Keller, 2021). The product traits and features also allow Godrej Consumer Products Ltd A to create points
of differentiation from the competition for its offering (Kotler & Keller, 2021; Park, 2020).

Product style
Godrej Consumer Products Ltd A makes sure to focus on the design and the look of the product, and the
ability of the same to meet the expectations and lifestyle of the target audience (Groucutt & Hopkins,
2015). The Godrej Consumer Products Ltd A ensures that the product style and design complement its
features and purpose.

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Functionality
Godrej Consumer Products Ltd A makes sure that the product manufactured fulfills its purpose, and
meets customer expectations (Abratt & Bendixen, 2018). Godrej Consumer Products Ltd A focuses on
the product design, and how well it is able to fulfill the demands of the customers, as well as fill in the
market gap (Baines, Fill, & Rosengren, 2017)

Experience
Godrej Consumer Products Ltd A products provide the customers with an exceptional and unique
experience upon consumption (Kotler & Keller, 2021). This experience includes interaction with the
products that leads to different unique and positive customer feelings and helps the Godrej Consumer
Products Ltd A maintain differentiation from the competition (Varadarajan, 2015; Kotabe & Helsen,
2020).

Availability
Godrej Consumer Products Ltd A ensures that its product and service offerings are available for its target
consumers at various retail setups. The easy availability ensures that consumers are able to purchase the
offerings of Godrej Consumer Products Ltd A from various locations, allowing the Godrej Consumer
Products Ltd A to create an advantage over competing players (Kotler & Keller, 2021; Chernev, 2018).

Convenience
One point of focus for Godrej Consumer Products Ltd A in its product offering is convenience. The
Godrej Consumer Products Ltd A ensures that its products and service are easy and convenient to use.
The factor of convenience allows Godrej Consumer Products Ltd A to enjoy a higher consumption rate,
as well as increased sales and trials (Kotabe & Helsen, 2020; Kucuk, 2017).

After-sales service
Godrej Consumer Products Ltd A caters to after-sales queries and demands of customers, which also
includes processes of returns as well as exchanges. The after-sales service of company Godrej Consumer
Products Ltd A is detrimental and critical in determining customer satisfaction with its offerings
(Iacobucci, 2021; Chernev, 2018).

Sizes
Godrej Consumer Products Ltd A has different SKUs in the product available. Godrej Consumer Products
Ltd A has its products available in various SKU sizes which helps the company boost its sales, as
different customer groups have different demands for the product quantity – depending on their usage,
income as well as lifestyle (Grewal & Levy, 2021; Deepak & Jeyakumar, 2019).

2. Price

The element of price in the marketing mix refers to the value that customers pay for the service or the
product offered by Godrej Consumer Products Ltd A. The pricing strategy and the price of the offerings
are critical because it determines three success for Godrej Consumer Products Ltd A by directly
influencing the profit levels and revenue for the company (Kotabe & Helsen, 2020; Kotler & Keller,
2021; Deepak & Jeyakumar, 2019).
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Discounts
One of the ways through which the Godrej Consumer Products Ltd A influences its pricing strategies is
through offering discounts on its product and service offerings. Discounted pricing for the Godrej
Consumer Products Ltd A means that Godrej Consumer Products Ltd A decreases the price of the product
and service in order to generate interest, or even unload excessive inventory and stock; as well as for
boosting sales (Baines, Fill, & Rosengren, 2017).

Margins
Godrej Consumer Products Ltd A makes room for margins through the additional value charged in price
over the cost – which allows the Godrej Consumer Products Ltd A to build profit for its offerings (Kucuk,
2017). The margins available to the Godrej Consumer Products Ltd A largely depend on the offering and
its quality itself, in addition to the brand equity and brand value of the company.

Payment method
A significant factor of the pricing element of the marketing mix for the Godrej Consumer Products Ltd A
includes the payment methods that the company offers (Kotler & Keller, 2021; Abratt & Bendixen,
2018). Since the Godrej Consumer Products Ltd A largely operates distribution to retail via agents and
retailers, it ensures the inclusion of different payment methods. This includes digital payment, cash
payment, as well as credit allowances (Grewal & Levy, 2021; Groucutt & Hopkins, 2015).

Pricing strategy
Penetrative pricing strategy
For Godrej Consumer Products Ltd A, the penetrative pricing strategy is adopted as it allows the
company higher trial generation of its products and services in the desired target market, as well as allows
the building of a broader reach for its product offerings by ensuring easier affordability (Baines, Fill, &
Rosengren, 2017).

Introductory pricing strategy

For new products that the company launches, Godrej Consumer Products Ltd A ensures to adopt an
introductory pricing strategy. This means that the company prices its products and service offerings at
relatively lower prices than the competition. This introductory pricing strategy allows the company to
increase trial generation, achieve higher penetration, as well as lead to the generation of increased brand
awareness and recall (Kucuk, 2017).

Aggressive/competitive pricing strategy

For existing products, Godrej Consumer Products Ltd A uses a competitive and aggressive pricing
strategy. This ensures that the products are available readily at competitive prices. Aggressive and
competitive pricing strategies allow the Godrej Consumer Products Ltd A to experience high rates of
growth and experience by allowing the buildup of consumer loyalty and following based largely on
product attributes and quality instead of price– leading to the generation of higher brand equity and value
for Godrej Consumer Products Ltd A (Deepak & Jeyakumar, 2019).

3. Place
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The element of place within the 4Ps model of the marketing mix largely refers to the locations where
company Godrej Consumer Products Ltd A stocks its product and service offerings for consumers’
accessibility and purchase. Godrej Consumer Products Ltd A ensures to include all possible placements
which are easily accessible to and available for the company’s target audience (Iacobucci, 2021; Išoraitė,
2016). With the advancement of technology, Godrej Consumer Products Ltd A has expanded the
placement of its products beyond the traditional brick-and-mortar retail spaces, to include modern Omni
channel retail platforms as well (Iacobucci, 2021).

Physical stores/retail
The physical retail and stores i.e. the traditional brick and mortar spaces continue to be the prioritized
locations for product placement by Godrej Consumer Products Ltd A (Iacobucci, 2021; Groucutt &
Hopkins, 2015; Abratt & Bendixen, 2018).

Retail type
These include hypermarkets, upper markets, and smaller grocery stores – all of which allow increased
accessibility and availability of Godrej Consumer Products Ltd A’s products and services to its target
audience. Physical retail has a higher footfall and allows direct interaction of the Godrej Consumer
Products Ltd A brand and its product offerings with the consumers (Groucutt & Hopkins, 2015; Groucutt
& Hopkins, 2015; Chernev, 2018).

E-commerce
E-tailers
The Godrej Consumer Products Ltd A also stocks its products on e-commerce retail shops – such as
amazon. This allows the Godrej Consumer Products Ltd A higher access and penetration in other markets,
as well as in secondary consumer groups. Moreover, e-commerce retailing is more cost-effective for the
Godrej Consumer Products Ltd A (Wu & Li, 2018; Chernev, 2018; Baines, Fill, & Rosengren, 2017).

Company-owned website
In addition to stocking products with other e-trailers, the Godrej Consumer Products Ltd A also manages
orders through its own website, where consumers can place orders for Godrej Consumer Products Ltd A’s
products directly. This allows the Godrej Consumer Products Ltd A greater control over stock and
inventory management, as well as distribution networks – allowing the buildup of stronger relations with
consumers.
Lastly, the Godrej Consumer Products Ltd A also takes limited orders through social media pages and
platforms (Wu & Li, 2018; Baines, Fill, & Rosengren, 2017).

Aggregators
Another way through which Godrej Consumer Products Ltd A uses e-commerce is by stocking its
offerings with aggregators (Kucuk, 2017). This allows the Godrej Consumer Products Ltd A to maximize
its reach and increase penetration. At the same time, it also allows increased trial generation and repeats
purchases for the Godrej Consumer Products Ltd A product offerings (Išoraitė, 2016; Groucutt &
Hopkins, 2015).

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Specialty stores
Interestingly, the Godrej Consumer Products Ltd A also stocks its products with specialty stores (Grewal
& Levy, 2021). This gives the company direct exposure to its target market and audience and allows the
consumers to directly interact with the brand and its offerings- without too much clutter (Kotler & Keller,
2021; Gillespie & Swan, 2021). The specialty stores are located in prime locations, and allow Godrej
Consumer Products Ltd A higher penetration and reach, leading to increased brand awareness for its
product offerings (Groucutt & Hopkins, 2015; Išoraitė, 2016).

Direct sales
The Godrej Consumer Products Ltd A also has a trained sales team for making direct sales (Kotler &
Keller, 2021). Godrej Consumer Products Ltd A targets not only B2C consumers but also B2-B
consumers (Chernev, 2018; Grewal & Levy, 2021). Both these categories, also make use of direct
marketing whereby the sales agents and teams visit the target audience and business directly and detail
the product features and benefits (Kotler & Keller, 2021; Groucutt & Hopkins, 2015).

B2B and direct sales

Godrej Consumer Products Ltd A’s team makes sales instantly during field visits for the company (Sahaf,
2019; Stead & Hastings, 2018). The target audience is carefully profiled and selected by the Godrej
Consumer Products Ltd A so that the sales representatives are able to filter out the clutter (Gillespie &
Swan, 2021; Išoraitė, 2016). Godrej Consumer Products Ltd A is able to easily contact and communicate
with the desired business groups only (Groucutt & Hopkins, 2015; Abratt & Bendixen, 2018).

Inventory management
Godrej Consumer Products Ltd A effectively manages its inventory and fulfills the retailer’s demand in
time to ensure that it manages customer relations efficiently – and does not lose any customers. Godrej
Consumer Products Ltd A has also introduced automation in inventory management which allows it to
improve efficiency and speed, and reduce error rates (Park, 2020; Gillespie & Swan, 2021; Kucuk, 2017).

Transportation
For Godrej Consumer Products Ltd A, this includes choosing cos effective transportation means for
inventory handling, as well as order deliveries to customers, as well as retailers. The company uses third-
party transportation, as well as manages its own in-house transportation networks for ensuring on-time
order deliveries (Abratt & Bendixen, 2018; Chernev, 2018; Grewal & Levy, 2021).

4. Promotion

The element of promotion in the marketing mix for Godrej Consumer Products Ltd A largely refers to the
tactics and activities of communication that the company has adopted for promoting its products and
services – including the brand, and its offerings, as well as other product features, characteristics, and
activities (Varadarajan, 2015; Gillespie & Swan, 2021). The communication is largely targeted toward the
Godrej Consumer Products Ltd A’s target audience and is aimed to increase brand awareness, brand
loyalty as well as sales of the company (Wu & Li, 2018; Grewal & Levy, 2021).

Direct marketing

23
For its more specific products and offerings, Godrej Consumer Products Ltd A uses direct marketing.
Godrej Consumer Products Ltd A directly emails potential customers- especially its B2B consumers for
detailing its product offerings and features. Godrej Consumer Products Ltd A uses personalized messages
and captures new clients and customers for the business. In addition to direct emailing, the Godrej
Consumer Products Ltd A also makes use of telemarketing and direct mail for targeting audiences
through direct marketing (Chernev, 2018; Sahaf, 2019).

In-store promotion
Godrej Consumer Products Ltd A also focuses on in-store promotions for appealing to the customers, and
boosting sales as well as raising brand awareness and profile of its offerings (Baines, Fill, & Rosengren,
2017). For Godrej Consumer Products Ltd A, the in-store promotions include offering price discounts,
loyalty points, and flash sales for its products. In addition, the company also invests in building up the
POS within the store locations (Stead & Hastings, 2018; Groucutt & Hopkins, 2015).

Social media marketing

One of the more contemporary forms of marketing and promotion for Godrej Consumer Products Ltd A
includes social media marketing. The company has an official presence and profiles on social media
platforms such as Facebook and Instagram, and regularly uses these platforms to promote its offerings,
and product features and characteristics (Stead & Hastings, 2018). In addition, these platforms are also
used by Godrej Consumer Products Ltd A to inform consumers about using sales and discounts to
increase in-store footfall.

Traditional advertising
The Godrej Consumer Products Ltd A continues to use traditional marketing tactics and promotional
platforms as well – largely for mass marketing purposes. The company especially focuses on TV
advertisements, ad print media advertising for this purpose (Išoraitė, 2016; Iacobucci, 2021).

TV
TV advertisements are generally placed in prime time for higher visibility and reach by Godrej Consumer
Products Ltd A. The TV advertisements use functional as well as emotional appeals to communicate the
message of the Godrej Consumer Products Ltd A to the audiences (Iacobucci, 2021; Stead & Hastings,
2018).

Print
Print media and advertisements are published in newspapers and magazines – both of which are generally
consumed in high proportion by the broader target audience of the Godrej Consumer Products Ltd A
(Chernev, 2018; Iacobucci, 2021; Stead & Hastings, 2018).

Radio
The Godrej Consumer Products Ltd A also places advertisements on the radio to appeal to a segment of
the target population. The radio communications by the Godrej Consumer Products Ltd A are usually
shorter and focus on functional appeal only (Park, 2020; Išoraitė, 2016; Groucutt & Hopkins, 2015).

Integrated marketing communications

24
The advertisement and promotional messages by Godrej Consumer Products Ltd A for all mediums and
channels however are built on an integrated plan, and ensure that they reflect messages and
communication that is similar to the overall campaign to void confusion and discrepancies (Gillespie &
Swan, 2021; Kotler & Keller, 2021). The use of integrated marketing and integrated media has allowed
the Godrej Consumer Products Ltd A to build strong relations with the consumers through prompting
conversations and discussions directly with them (Deepak & Jeyakumar, 2019; Sahaf, 2019; Stead &
Hastings, 2018).

CHAPTER 2

RESEARCH METHODOLOGY
1. RESEARCH

Meaning of Research
The word ‘Research’ is derived from the French word ‘Researcher’ meaning to search back. Broadly
research refers to search for knowledge. Research is an attempt find answer to problem both theoretical
and practical, through the application of scientific methods. Essentially, research is a systematic inquiry
looking for facts through verifiable methods in order to establish the relationship among them and to
conclude from them broad principles or laws. research motivates a person to undertake critical evaluation
and thinking. “Research is an inquiry into the nature of the reason for and the consequence of any
particular set of circumstances, whether they are experimentally controlled or recorded as they take place.
“Research is an organised effort.
Precisely, research is also an academic exercise. It provides new findings base on elaborate
investigation. research probes from known to unknown premises. Hence, research is a search for
knowledge through objective and systematic approach to find solution to a given problem.
25
Research research is a continuous process. it has to obtain knowledge about any natural or human
phenomena research place to important roles firstly it adds to the existing knowledge and secondly it has
to solve many complex problems. research involve blending of an enormous range of skills and activities

Definitions of research:
“Research is an organised enquiry design and carried out to provide information for solving a problems.”
-Fred kerlinger
“Research is a systematic and objective analysis and recording of controlled observations that may lead to
the development of generalization, principles or theories, resulting in prediction and possibly ultimate
control of events.”
-John w. Best
“Research is an organise enquiry or examination to discover new information or relationship and to
expand hand to verify existing knowledge.”
-Francis Rummel
“Research is essentially and investigation are recording and analysis of evidence for the purpose of
gaining knowledge.”
-Robert Ross

FEATURES/NATURE/CHARACTERISTICS OF RESEARCH :
1. Develops principles:- research is always scientific in its approach it rice to unfold the fact not
known to US through observation and experimentation. the knowledge thus collected is translated
in principles to deal with similar situations in future such principle help both organisation and
individuals to effectively and efficiently deal with situations.
2. Uses scientific methods:- good research is based on sound reasoning scientific method enable us
to solve business, social, economic and political problems. often scientific method is described as
puzzle solving activity. For the researcher, puzzles are solvable problems that are resolved through
reasoning process, scientific method assess the validity of conclusion about observable events.

3. Maintains objectivity:- the ability of the respondents is often distorted by questions whose
content is biased by what is included or excluded. the question may mention only the positive or
negative aspect of the topic or make unwanted assumptions about the respondent's position. All
these are likely to give doubtful informations leading to inferior quality of research work.
maintaining objectivity in the process of collecting information will certainly improve the quality
of research.

4. Purposeful investigation:- research is not confident to collection of data it's scope is much wider.
it is required to conduct purposeful investigation into a phenomena or a situation e.g., data on
domestic violence does not only indicate the extent of prevalence but it also pin points reasons
responsible and suggest preventable measure. Thus research reflect going on in the society and
explain and interpret the situation making individuals aware about their role in minimising the
wrong.

5. Studies complex human behaviour:- No two persons think and behave alike. they display little
or major variation in their behaviour. because of change in human behaviour the responsibility of
26
 the researcher increases as he has to record actual happening and role of people as they take place.
It is an Uphill task of any researcher. research makes it possible to study complex human
behaviour for future reference.

6. Continuous process:- research is a continuous process. It only has the beginning but no end.
Research covers every walk of life. It not only studies the old fact but also discover new facts. by
making relevant informations available it tries to control future events and ends with reasonable
success. research identifies casual relation among variable. Research is growing strength by
strength.

7. Conducts observation and experimentation:- research takes it origin through observations of

events, issues, phenomena and happening. As a certain aspect of these observations require more
information research is undertaken. once information is collected it is put to test to established it
validity and reliability.

8. Changes in environment:- the style of research has also undergone changes. earlier face- to- face
interview was considered the best way of collecting information but now online interviews are fast
becoming popular. research has to adapt itself to the changing times.

9. Ensures practical use:- research providing only theoretical information is only half of the
exercise. it’s mission becomes complete when it ensure practical use. This is the reason that
applied research is considered more important than pure research. research must bring about all
round progress and benefits.

OBJECTIVES OF RESEARCH:
1. To identify the problem:- The basic responsibility of a researcher is to correctly in identify the
problem. A correct problem definition is the key to getting the most out of the research. By
contrast, a wrong identification of problem will miss direct the entire research process. this
exercise of identification will help to achieve new inside into the problem.
2. To collect information:- the researcher must remain alert while collecting information to make it
reliable adequate and complete in all respect this will unable the researcher to arrive at correct
conclusion and make useful recommendation

3. To adopt scientific approach:- one of the main objective of research is to find answer to question
through the application of scientific method. scientific method attempt to solve problems it adopt
step- by- step logical and organised method to identify the problems, gather data, analyse them
and to draw valid conclusion.

4. To present benefits of research:- The benefits of research must be made available to one and all.
It could be a social study such as high incidence of suicide among the urban youth in India. the
finding and recommendation of such a research will be eye opener to the society Enabling
responsible people to take preventive measures. like wise, research in functional areas of business
will help corporate thinkers.

5. To examine relationship between variables:- variable is a characteristics that can be measured.

variables are subject to change. we can consider a variable like absenteeism e.g., In an office on
the first day of the month three employees remained absent; on the second day 5 employees did
not report to work and on the third day all employees where present. Thus, absenteeism variable is
not fix and its shows changes.

27
 6. To maintain objectivity:- objectivity means conclusion should be based on the facts of the
finding and not on our subjective or emotional value e.g., there is a hypothesis that greater
employee participation and decision making will increase organizational commitment and this is
not supported by the results. There is no point the researcher still pushing this idea. If it does so, it
becomes subjective. along with objectivity the researcher must also avoid personal bias.

7. To make future predictions:- Based on the finding the researcher is called upon to make future
productions. depending on the nature of issue it will ring warning bell to the higher authorities in
the government and corporate world. several studies pointed out the serious problem of traffic
congestion on the City road and predicted further traffic bottleneck. the construction of metro is to
ease the traffic which has come as a solution to the problem.

8. To study variable:- our life is influenced by numerous variable. research is conducted to study
the relationship between variables e.g., we make conclude a correlation between lower attendance
and active participation in cultural programs is a result of another factor i.e. lifestyle reference In
this example, lifestyle preference become dependent variable.

9. To help in framing general laws:- research is based on observation and experimentation

observation is a basis for collecting knowledge observation becomes a scientific enquiry when it is
conducted to answer a research question experiment Asian is a scientific method to established
cause effect relationship E.g., the law of demand and supply. when there is good rainfall water cut
is removed or axcess supply of agricultural produce depresses the price

NEED/IMPORTANCE OF RESEARCH IN BUSINESS:

1. To remove doubts: Knowledge is highly organised and systematic. According to Hudson Maxim
All progress is ‘born of inquiry.” When we face doubts we conduct inquiry to remove such
doubts. Mostly it leads to formation and establishment of new knowledge which is based on
research.

2. To solve operational and planning problems: Business decisions are influenced by three main
areas of research viz., operations research, marketing research and motivation research.
Operations research is a scientific approach to problem solving for executive decision making. It
is concerned with the design and operation of the man-machine system usually dealing with
allocation of scarce resources.Marketing research is a systematic and comprehensive study of
different aspects of marketing problems and challenges for decision making and policy framing.
Motivation research deals with why aspect of consumer behaviour. These studies are of great help
to people in business who are responsible for making vital decisions e.g., supply of goods and
services are adjusted as per the projected future demand.

3. To help social scientists: Social research is the scientific analysis of the nature and trends of
social phenomena of human behaviour so as to formulate broad principle and scientific concepts.
The researcher makes study of the collective processes, social change, social structure etc. In
addition, it makes study of human beings, human behaviour and collects data about various
aspects of the social life of men and formulates laws in this regard.

4. To enable the government in making policies: The, government is required to exercise

diversified nature of work, Performing the work properly it requires feedback from the people and
the market e.g., budget preparation is an important assignment to. the government where it
requires analysis of the needs and desires of the people. Similarly, it needs information on issues
or matters needing pruning of ‘expenses and identifying the sources of raising additional revenues.
28
5. To exercise better control over issues/phenomena:- knowledge is Power. by collecting first-
hand knowledge about the organisation and working of the economy and its institutions, a
researcher exercises better control over issue/phenomena

6. To predict and suggest remedial measures:- Research provides a sound bases for prediction. A
layman’s remedies may create other new problems but researcher provides sound guideline to
suggest remedial measures on reforms. problem also so solved that no new difficulties are created.
this required scientific treatment to the problems.

7. To facilatete scientific planning:- knowledge is enlightement. knowledge removes superstitions.

It promotes better understanding. it brings to light oneness of findings. scientific planning depends
on a systematic knowledge of the resources and liabilities of the people e.g., similarities and
difference in the needs and the culture of The people.

8. To keep businesses updated:- Research helps the business to determine what potential customer
want the developing better product and service. it keeps business abreast of competition and
identifies features trends. It enable business to evaluate the performance of departments. research
can compare their programme against projection to determine if there is need to make
adjustments.

9. To facilitate application:- Research help business manager to find new market and to make
optimum use of resources. its important to start-ups and investor. business can find new areas of
growth. examination of both old and new survey data allows exploring weather or not a particular
idea will succeed. also it is important to know if there is a large enough customer base to support
the ideas

10. To test new products:- Research can test the possible success of fresh product. before goods are
produced, business likes to know what the requirement of customer are. research reduces business
risks. new product are develop which are highly target towards demand. business can use research
to ensure adequate and even distribution of their products.

11. To avoid future failure:-Research equips business with Several measures to avoid future failure.
It helps a small Business to decide if there is need to change process or if More needs to be done
to meet requirements of customers. It Enables a business to determine if this is the right time to
Expand or the business needs to raise more finance. Research Offers a chance to business to
examine its competitors and to Prepare better strategies so that no mistakes are made in Future.

12. To facilitate overseas research:- For companies trying to Enlarge their operations beyond the
national boundaries Research is but compulsory. Changes in the global Environment are
presenting organisations with both new Opportunities and challenges. After research has given
Positive feedback, the exact mode of operation is determined. The risks concerning operating in
foreign markets is often Dependent on the level of control a firm has along with Capital employed.
Research may enlist modes of business as (a) Exporting (b) joint ventures and (c) direct
investment.

(2) TYPES OF RESEARCH

A. PURE RESEARCH:
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 Often pure research is called ‘theoretical’, ‘basic’ or ‘fundamental’ research. It is not directly
concerned with solving Marketing problems. Primarily it aims at improving academic Knowledge
about the subject matter. Pure research is for Expanding the frontiers of knowledge and does not
directly Involved in dealing with pragmatic problems. Pure research does Not deal with
commercial problems but it relates to fundamental Problems concerning the business and allied
subjects. Pure Research may address itself to issues like drug addiction among The youth or
reasons for youngsters fleeing to Mumbai to make Career in Bollywood. It is not concerned with
problems with Immediate commercial potential. Pure research is conducted out of intellectual
curiosity for the sake of knowledge.its finding constitutes the foundation of applied research. pure
research may also involve improvements in the existing knowledge contributing to
reinterpretation of the existing theory e.g., Malthusian Theory of population Later developed
optimum theory of population. Similarly, Taylor’s “one best way” of doing work in scientific
management was altered to “there is no one best way of doing work”. In the words of the Dixey
“natural knowledge pursued for its own sake without any direct view of future utility will often to
results of most unexpected and of very highest practical significance.”

Objectives of pure, Basic and Fundamental Research:

1. Direction of study: The main objective of pure research is to determine the area, perspective and
subject matter of the Determine the area, perspective Research study. Pure resea Rch makes
distinction between Relevant and irrelevant facts. It guides research to move in the Right direction
to achieve desired objectives.

2. Summarisation: The material collected for pure research can Be divided into two categories viz.
general and specific. Pure Research summarises data and information to make the Process of
research easy and smooth.

3. Gaps in the knowledge: Pure research not only summarises The available knowledge but it also
directs which of the facts Have already been collected and which are yet to be collected. It helps to
complete research study by filling the gap in the Knowledge.

4. Forecast of facts: Pure research forecasts about the facts which are essential for the research
work. It indicates the fators are going to. Influence a particular situation. It also Gives direction to
the researcher to collect and study those Facts.

5. Classification of facts:- pure research provides classification and tabulation of the knowledge,
fact and materials. it also make available base for defining cause and effect relation ship among
the factor. personal information or demographic details of the respondent such as age, material
status, income, educational level etc. are classified

6. stisfies thirst for knowledge: Pure research explores basic a oa fundamentals laws which is of
great help in the developinent of knowledge and provides new direction to the future investigation.
With rapid changes taking place in the environment, theories and principles become outdated.
Hence it is necessary to revise and update them from time to time. Pure research, in this way,
satisfies thirst for knowledge.

B. APPLIED RESEARCH:

30
Applied research (also called ‘decisional research) directly deals with commercial problems. It tackles
the business problems and attempts to find alternative solutions to the problems. Applied research
may relate to locating reasons for fall in sales or to introduce a new brand of product. It suggests
alternative Solutions (for specific marketing problem) and the possible outcomes of each alternative.
As against basic research, it is promoted by commercial considerations.

Applied research can be of two types (a) problem-solving research and (b) problem-oriented research.
As the name indicates problem-solving research relates to a specific problem. This research can be
conducted either by the marketing research department of the firm or by an outside research agency.
By contrast, problem-oriented ‘research deals with problems that may be of interest to many firms.
This type of research puts into practice the knowledge obtained through basic research.

This is the age of applied knowledge and not pure knowledge. Business research being a practical
subject it gains importance because it can be applied to varied organisational aspects. Business
research requires professionally qualified persons who can observe, analyse and give decisions based
on goings-on in the Market. Basic research is time consuming whereas applied research is action-
oriented. Basic research is conducted on table and chair whereas applied research is conducted out in
Business research is considered an invaluable practical application. ‘

Applied research is more practical, result-oriented and Directly useful to the company for dealing with
specific marketing problem. Such applied research can be distinguished from the basic research. some
companies maybe engage in basic research which may not have an immediate commercial use.
However, it may be potentially commercial to the company. In the absence of such future use, the
company would not have undertaken such research. In this sense, the distinction between basic
Research and applied research get blured.

Utility of Applied Research

1. Applied research develops such theories which are useful for pure research.
2. It clarifice as to how and which of the facts are useful to the society and in what way.
3. It promotes the process of socialization and empower social institution.
4. It studies social problems and issues it makes available for probable solution to the policy
makers.
5. It collect useful information and facts based on experiments and empirical knowledge about
human behaviour and social relations

C. EMPIRICAL RESEARCH

Empirical research uses “empirical evidence.” it is a way of gaining knowledge by means of direct
and indirect observation or experience search is based on observe and measured phenomena. it
derives knowledge from actual experience rather than from theory or belief. Empirical research
is publish in books and journal. Empirical research is defined as “research based on experimentation
or observation (evidence).” such research is conducted to test a hypothesis. The term Empirical means
information gained by experience, observation or experiment. In every scientific method, evidence
must be empirical meaning that it is best on evidence. Empirical evidence can be analyse
quantitatively or qualitatively. some researcher combine qualitative and quantitative forms of analysis
to better answer question which cannot be studied in laboratory setting, particularly in the education
and social science the word empirical is attributed to Greek medical practice dictionary for rejected
dogmatic doctrine and preferred to relay on the observation of phenomena research to describe
accurately the interaction between the instrument human sense and the entity being observe this type
of research has empirical cycle consisting of
i. Observation:- Collecting and organizing empirical facts and forming hypothesis.
ii. Induction:- Formulating hypothesis.
iii. Deduction:- Deducting consequences of hypothesis as testable predictions.
iv. Testing:- Testing the hypothesis.
31
 v. Evaluation:- Evaluating the result of testing.

D. SCIENTIFIC AND SOCIAL RESEARCH

SCIENTIFIC RESEARCH:- Scientific research is application of scientific method to the

Investigation of relationships among neutral phenomenon or to Solve a medical or technical
problem. Research is fundamental to Modern business. Scientific research is a r stions Posed by
scientific theories and hypotheses. Requires huge capital investment but provides significant
results. Scientific research is scientific investigation Of the “Known” for the purpose of
discovering the “unknown”. It is undertaken with a clear purpose and objectives to lead into
problem identification. The conclusion drawn through data analysis and interpretation of the
results should be objective based on the fact and not on subjective evaluation. Scientific research
focuses on solving problems.It is an objective method and pursues step-by-step logical approach.
It analysis situational factors surrounding a problem. It monitors phenomena through prediction
and explanation.

Essentials of scientific Research

i. A clearly defined goal:- A scientifically conducted study tries to answer a clearly defined
research goal. The nature of study has to determine methodology, analysis of data and how the
finding will be stated. questions relating to the study should be pinpointing e.g., what are the top 3
qualities associated with our brands? or how does the cells visits correlate to the converting of
potential customers? enquiry of this types unable the researcher to move close it to the goal.

ii. Neut ral wordings:- At times, it is found that that researcher Prepares the questionnaire in such a
way that he gets the answer that he wants to read. This is being dishonest. This problem is solved
when the researcher uses neutral wording giving adequate scope to the respondents to present their
unbiased opinion

iii. Proper sampling:- Sampling is the process of selecting items from the population so that th
sample characteristics can be generalized to the population. Sampling involves both design choice
and sample size decisions. Any difference between the test group and population are known as
“sampling bias” e.g, the researcher takes into account only the customer list and emails the survey
to find out market acceptance of the new product. In this case there are two types of sampling bias
that takes place, Firstly, he is asking only the regular customers and secondly, responses are
analysed only of those who carried to reply. Hence, Proper sampling will facilitate scientific
research.

iv. Controlled research:- scientific research attempts to test the effect of one change by attempting to
prevent the effects caused by other changes. Often researcher use “control groups”. These groups
are subjects similar the group being studied but for whom either the studied change is not made or
a neutral change is made e.g., advertising campaign increase sales in a season. A right way would
be to compare The sales behaviour of one market which was exposed to the campaign with that of
a similar market which was notbexposed to the campaign over the same period of time.

v. Statistical significance: It is not always true that every change in data actually means something.
Phenomena involving humans will vary randomly. Statistical tests for the significance of a
change, such as chi-square test, will indicate whether the change you have measured is really an
effect of the factor under study or merely a random variation.

SOCIAL RESEARCH:
32
 Social research is conducted by social scientists following a systematic plan. Social research
methods can be classified along a quantitative or qualitative dimension. Social scientists use various
methods to study social phenomena from census survey data derived from millions of individuals to the
in-depth analysis of a single issue such as family break-up. Social research is the scientific study of
society. Social research examines a society’s attitudes, assumptions, beliefs, trends and rules. Social
research has vast scope as it covers the entire race or country. Popular topics of social research include
poverty, racism, class issues,
voting pattern, criminal behaviour, sexuality etc. Social research determines the relationship between one
of more variables e.g., girls’ education and higher family income. Researchers will look for underlying
concepts and cause and effect relationships of a social issue. Social researchers use wide range of
qualitative and quantitative methods to explore attitudes and experiences and to understand patterns of
social behaviour.

Man by nature is inquisitive. Men have an extraordinary capacity to exercise rational judgement and
investigate the Tealities of the world around us. Social researchers are preoccupied with research
methods. In social research, being human beings, our bias and emotions interfere with the observed
reality. Social researcher deals with the issue of influence of observer on the objects and impact of such
influence on producing valid knowledge. Aristotle emphasized on the faculty of reasoning of human
mind. He used the most elementary form of deductive logical inquiry to understand social realities.

E. HISTORICAL RESEARCH:

Historical research is objective valuation and synthesis of evidence and fact helping the researcher
to draw conclusion relating to the past. Historical research is commonly used in both business
research and social research. some business problems can be effectively studied only through
historical research e.g., problems in economics, management and related areas. In order to study
rise of family business in India researchers have to go through historical data. historical reason
have contributed to the rice of certain business e.g., Henry Ford started to manufacture motor
cars at Detroit because it was his hometown. Lord Nuffield selected A place Cowley because the
school in which his father was educated happened to be on sale. Mumbai, Kolkata and Chennai
have developed as a prime industrial cities because of the historical reason as they are port cities
and foreign visitor landed in this city by sea route looking for business opportunities.

Historical research is used with equal priority in both basic and applied research. many are time to
understand the present happening explanation from the past happening are derived historical
research is founded on fact and figures e.g., A study of factors contributing to the growth of sugar
factors in Maharashtra is a part of historical research. The researcher would mainly consider factor
like social, economic, political, financial, technical, marketing, personal and demographic. These
factor are of historical significance. the evaluation of Such research done by taking into account
development at different times source of document and interpretation of the hypothesis.

Historical research exclusively depends on secondary data. It is not possible for the researcher to
other control or manipulate variables. He is expected to report as a thing stand.

In the process of identification, selection and formulation of the research problems, The researcher
has consultation of past record the constitute historical data such as recording Includes :
i. Newspaper and magazine.
ii. Memories and diaries.
iii. Archives.
iv. Diplomatic agreements.
v. Time capsules.
vi. Autographics.
vii. Statistical data.
33
 viii. Books and documents.
ix. Charts and maps.
x. Carving etc.

F. EXPLOATORY RESEARCH

Exploratory research is Undertaker when not much is known about the problem of how similar
problems were solved in the past. In such cases, extensive preliminary work is needed to get
familiar with the problem before the researcher developed a model for complete investigation.
exploratory research is conducted to understand the problem in the right perspective since very
few studies might have been done in that area. In order to get correct field of the problem,
extensive interviews with many people might have to Undertaken. In exploratory research data is
collected through observation and interviews. when data reveal some pattern, theories are
developed and hypothesis are formulated for subsequent testing. accelerator research is also under
taken when some fact or known but more information is needed to prepare and acceptable
theoretical model. The importance of accelerator research life in unableing the researcher to have
good hold on the problem and advancing knowledge through theory building and hypothesis
testing e.g., a study relating to advancement of women executives in managerial positions. the past
study indicating that women executives are competitive, assertive, honest and independent.
managerial decisions need strong person at the top and women are considered soft. under
exploratory research there is need to interview women manager who are successful in there
assignment to explore relevant variables. Such an exercise will unable to build a reliable theory.

TYPES OF DATA

THERE ARE TWO TYPES OF DATA USED IN THE RESEARCH PROCESS

Primary data, and secondary data . A Researcher has to explore first the secondary data available from
different sources. If such data are incomplete, outdated or unreliable, he has to supplement it by collecting
primary data. A researcher has to prepare his plan for data collection and collect required data
accordingly. for this, different sources are available and can be used as per need.

Example of primary data:- Data collected through observation, experimentation, surveys, questionnaire,
interviews.
Example of secondary data :- census reports, repost of committees and published information through
print media

PRIMARY DATA

Meaning of primary data

Primary data constitute first hand information which is collected for the first time in order to solve
research problem. It is the data collected from primary sources which are original sources. the researcher
himself collect primary data or collect it through trained assistant. such data are not collected earlier by
anybody for any other purpose. It is fresh data collected for the first time directly from the respondents.
Primary data is important as it gives reliable factual first hand information for research purpose.
Researcher collect primary data as per the need of his research project and from the source or source
which he considered appropriate primary data collection is time consuming and costly. Appropriate
organisation, well trained staff, suitable questionnaire and co-operation of respondent are necessary for
reliable primary data collection.
primary data are collected for digital information on certain aspect of research project. Such
data are also collected when the secondary data available are old, outdated or inadequate. primary data
are always fundamental, original, fresh and genuine as data are collected directly from the original
sources. The researcher has to make maximum possible care while collecting primary data. Moreover, the
34
researcher is fully responsible for any deficiences or mistakes in the primary data collected by him. The
quality of research work will be adversely affected if primary data collected his inadequate or unreliable
or incomplete.

Primary data maybe defined as “The data that is collected by a researcher from first hand sources using
method like a service, interviews or experiment. It is collected with the research project in mind directly
from primary sources.”

Advantages/Benefits of primary Data:

1) Primary data provides first-hand information:- as primary data are collected directly from the
respondents. Data are collected from the original source and hands primary data provide first-hand
information.

2) Availability of detailed (in-depth) information:- Here, researcher get detail information with the
help of projective techniques. The researcher uses well drafted questionnaire and well trained staff
for the collection of primary data. Information is collected directly from the respondent. Cross
questioning is also possible for verification of information supplied.

3) Accurate and reliable data available:- the data collected are accurate as it is collected from
primary sources. Researcher check the accuracy of data during the interviews the data collected
are reliable as it is collected directly from the primary sosource. Latest data are collected from the
respondent and such data accurate and reliable.

4) Availability of specific data:- Here, the researcher collects data exactly as for the specific needs
office research prprojec. As a result, data collected are specific and facilitate the completion of
research project in time.

5) Act as supplement to secondary data:- primary data are superior to secondary data as such that
are collected for the first time and also buy using proper method. Such primary data reliable and
dependable. Conclusions are drawn from the primary data analysis. Primary data are more specific
accurate reliable and compensave. It supports secondary data used in the research project.

6) Additional information from respondents:- interviewer collect additional/supplementry

information from respondent and not such information for the benefit of researcher. An
interviewer can bring flexibility in the data collection work. Additional information can be used
fruitfully by the researcher. Methods of primary data collection (e.g., interview) help to overcome
the assistant of respondent specific and data collection work.

7) Improve the quality of research work:- primary data provide first hand reliable and
comprehensive information about the subject of research work. Such data improve the quality of
research work and make the research work result-oriented and useful for solving the business
problem.

Limitations/Disadvantages of primary Data:

1) Primary data collection is costly as lengthy procedure, interviews, questionnaire etc. are required
to be prepared.

2) Primary data collection is time consuming due to huge paper work involved.

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 3) Supervision and control are also required during the process of primary data collection for
reliability of data collected (e.g. respondents).

4) The bias of interviewer or other (e.g. respondents) connected with data collection work maybe
reflected in the primary data cocollecte. This makes primary data collection defective.

5) Poor response from the respondents may bring limitations of primary data collected.

6) Primary data collected need further processing (editing, coding, tabulation et.) for drawing
conclusions. This processing of primary data collected is time consuming but is necessary for its
accuracy and meaningful use in the research project.

7) Primary data collected mein proof inadequate for research purpose if sample decided for data
collection is not appropriate.

8) Primary data may not permit quick decision making in regard to marketing problem as such data
need lengthy processing after data collection for decision-making.

Importance / significance of primary Data in Research work :

1. Foundation of research work:- primary data at as a base or foundation of research work.
Conclusions and recommendations are mainly based on the primary data ananalysis. Research
work will be incomplete or unreliable in the absence of support of primary data as a primary data
provide first hand, reliable and specific information required for the study of subject matter of
research.

2. Indispensable Input:- this data improve the quality of research work and make recommendations
practical and result-oriented. There is no alternative to primary data collection for research work.
It is a must even when collection of primary data is costly and time-consuming. Reliable, specific
and adequate primary data act as a foundation of whole research work.

3. Useful to society:- the basic purpose of conducting research is to solve the society's issues. Data
collection is an avoidable to ensure that future planning is facilitated. Data is important because it
provides unused and fresh information to determine future line of business. Primary data has
social benefits.

4. First hand information:- primary data is a only choice when the researcher is trying to find out
perception and attitude of employees, information about events and people and matters relating to
socio-economic issues. Respondent are served with questionnaires to obtain their opinion.

5. Greater control:- primary data unable the researcher to have a higher level of control over how
the information is collected. The researches can decide on matter like a sample size location of
research and time frame for completing the work.

6. Proprietary information:- Information collected by the researchers using primary data is there
on and his general is not Shad with others. Information is safe and its secrecy is maintained. Such
information is hidden from competitor the company enjoys “information advantage”.

7. Efficient spending:- primary data collection focus on specific issues. It shortlists the issues and
concentrates on matters that require ininvestigatio. This approach improve the chance that
research research find its friend efficiently.
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 8. Participation of respondents:- Questionnaires are interviews facilitate full participation of
respondents. It is easy to understand the responding feeling, attitude, experience, opinion and
perception towards the issues under consideration. In order to ensure that valid responses are
obtained interview question are design, evaluated and tested carefully.

SECONDARY DATA
Meaning of secondary data
Along with primary data, secondary data are also useful in marketing research. Such data collected by
some other agency for some other purpose. Secondary data are easily or readily available in the published
form and are used for the conduct of research activity. This data are not collected by the researcher
through survey, etc. but are actually forward by the researcher for his research for purpose. Initially, such
data maybe primary data but when used for research purpose, they are to be treated as secondary data
such data are used extensively in academic research. However, in marketing and business research they
are used in a limited way.
Secondary data are easily available in census reports and other reports and publications of
banks, financial institution, business association and so on. Secondary data are available from internal
sources (old records of the companies, sales invoices, financial records etc.) and external sources (trade
journals, publications of trade association, banks, financial institutions and so on.)
A researcher can use secondary data to support primary data collected for research pupurpos. It is
desirable to examine the secondary data before using in the research project. This Avoids the use of old,
outdated and and reliable secondary data for research work.

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