Godrej to create new growth categories
The Hindu, Hindu Business Line, 18 December 2014
Godrej Consumer Products Ltd (GCPL) is looking at a mix of mass and premium products to further its growth in the FMCG segment.
According to Sunil Kataria, COO – sales, marketing and SAARC, the company will not just look to foray into “adjacent products”, but will also aim at creating new categories.
One such recent move saw Godrej enter the mass face-wash segment under the ‘No. 1’ brand. Previously, its presence was restricted to soaps only. Another first has been the introduction of ‘Good Knight fast card’ – which, when burnt, acts as a mosquito repellent.
“We created the mass face-wash category by extending the No 1 brand; and the Good Knight fast card has been another success. Similar ideas are being explored in the premium segment, too,” he told Business Line.
Interestingly, Godrej’s experimentation with the Cinthol brand of personal care offerings focuses primarily on its journey towards “premiumisation”.
Apart from soaps, the Cinthol portfolio now includes bodywash and other products. Some products of Cinthol, however, continue to cater to the mass premium segment.
Other product categories – such as hair gels – may be explored too. “We will not be in a segment for the heck of it. But will be there only when we can make a difference,” he said.
There are also plans to introduce premium hygiene products under the ‘Godrej Protekt’ brand to kirana or mom and pop stores. Currently, such offerings are restricted to organised retail formats only.
“Over the next six months, we hope to introduce the Protekt brand in neighbourhood stores,” Kataria said.
The product portfolio consist of an anti-mosquito skin spray, specialised handwash to take care of kitchen odour, spray hand sanitizer and a regular hand sanitizer. Products come at a 10 to 20 per cent premium.
According to Kataria, GCPL will also focus on taking to e-commerce to reach out to a wider customer base. It is also in discussion with some e-commerce players. A new organisational structure has already been put in place to explore the online model.
“Although e-commerce has little impact on the FMCG sector, I believe there is huge scope here,” he said.