Wednesday, September 17, 2008

“Development of strategies for Cinthol Soap”

CHAPTERIZATION

Chapter no.

TABLE OF CONTENTS

Page no.

---

Acknowledgement

02

A

Executive Summary

03

B

Objectives

04

C

Research Methodology

05

1

Introduction: Toilet soap Industry of India

06

2

Part A: Godrej consumers product limited

Part B: Cinthol- The super brand

10-15

3

Data Tabulation

16-18

4

Analysis

19-29

5

conclusion

30

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Recommendation

31

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Annexure

------

Limitations


(A) EXECUTIVE SUMMARY

The report is divided into 6 chapters.

Chapter 1 provides a basic introduction to toilet soap industry.

Chapter 2 is divided into two parts where part A provides information about the Godrej consumers products limited and , while part B introduces about- Cinthol the super brand.

Chapter 3 provides the data collected from both primary and secondary sources and analysis of the data.

Chapter 4 analysis of the strategies adopted by Cinthol, external environment of Cinthol and opportunities and threats for Cinthol.

Chapter 5 provides some suggestions and strategic control tactics to be followed and other suggestions to make its strategies successful.

(B) OBJECTIVES

1. To identify and analyse the opportunities and threats for Cinthol soap.

2. To identify existing strategies of Cinthol Soap.

3. To bring a match between the opportunities & threats and the strategies to be adopted by Cinthol soap.

(C) RESEARCH METHODOLOGY

The research methodology in this project is empirical and also involves doctrinal study. Data were collected through field study. Most of the data used in the project are from primary sources and secondary sources like books, websites, etc. are also considered.

Foot note style will be followed as given by National Law University, Jodhpur.

CHAPTER – 1

INTRODUCTION

Toilet Soaps- An Introduction

The toilet soaps market is estimated at 530,000 tpa including small imports. The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. Hindustan Lever is, of course, the market leader.

The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma.

Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume media campaign, which sustain them. A consequence is that the market is fragmented. It is obvious that this must lead to a highly competitive market. Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas. The incremental demand flows from population increase and rise in usage norm impacted as it is by a greater concern for hygiene. Increased sales revenues would also expand from up gradation of quality or per unit value[1].

As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. However, by value it is as much as 30%.

The personal wash can be segregated into:

  • Premium- Lux, Dove
  • Economy- Nirma Bath, Lifebuoy
  • Popular- Nirma, Cinthol

Market Segmentation

The price of the premium segment products is twice that of economy segment products. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. However, by value it is as much as 30%. The economy and popular segments are 4/5ths of the entire soaps market. The penetration level of toilet soaps is 88.6%. However, the per capita consumption of soap in India is at 460 gms per annum, while in Brazil it is at 1,100 gms per annum.

Soaps are also categorized into men's soaps, ladies' soaps and common soaps. There are a few specialty soaps as transparent Glycerine soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are high valued but enjoy only a small share of the market in value terms.

The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth. With increasing awareness of hygienic standards, the market could grow at a rate higher than 8% annually. Interestingly, 60% of the market is now sourced from the rural sector. This means that the variance between the two segments is not very large. Since upper-end market focus is the urban areas, margins come from the urban sector.

Market Share [2]

Market Share in Toilet Soap Industry

In terms of market share, the data indicates that HLL had a market share of 64 per cent in the soap market, followed by Nirma at 16.8 per cent and Godrej at 4.4 per cent. Hindustan Lever is the largest contributor to the toilet soaps market of India. It enjoys almost a two-thirds share, with the second ranked Nirma Soaps placed at a distantly low share of 16.8%.

Godrej Soaps had a disappointing experience in forging an alliance with Procter & Gamble (P&G). Infact P&G is withdrawing itself from the premium soap segment like Camay.

P & G has now a fully-owned subsidiary in India and now it is concentrating more on personal care products. Godrej retained all soap brands and transferred detergent brands to P&G in 1993. Godrej found it convenient to shed the detergent brands - Ezee, Key, Biz and Trilo - as they represented a losing portfolio.

Godrej is promoting a number of brands, Cinthol, Ganga, Shikakai, Fairglow, No.1 and Crowning Glory, while it has others to bother about such as Vigil and Fresca. Cinthol ranks third and accounts for 60% of all Godrej Soap's brands. It is an old brand launched about five decades ago in early 1950s. New Cinthol Lime and Cologne gave it a new look in 1985. Two variants were introduced in 1989 placing an added emphasis on their brand of soaps. Its deodorant and complexion soap is styled as Cinthol Spice. Cinthol is perceived largely as a male soap, as Lux is a lady's soap. The company expects a very high growth for Cinthol in 1997-98. Ganga did well and a new version Doodh Ganga has been introduced. Ganga had notched up a 5% market share but declined to 2% later with sales at Rs 350 mn. Godrej wants to revive it. Godrej Soaps was giving a tough competition to Hindustan Lever. Crowning Glory was pitched for hair care.

CHAPTER -2

GODREJ CONSUMER PRODUCTS LIMITED

Godrej Consumer Products has created business value by working on and enhancing the multiple facets of business. Sharpening its core competence to get the cutting edge in the market and polishing its strategies further to radiate brilliant success.[3]

Started in 1897 as 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. Today 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 [4]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. Currently even when the market is declining Godrej is recording a high sale in terms of value of 24% by competing vigorously in the marketplace. A correction in the prices of inputs resulted in better margins in the soaps business as compared to the previous year. Godrej has come out with a number of innovative consumer and trade offers.

The highlight was the launch of Fairglow which is the first innovative breakthrough soap offering in the Indian market for many years. The product meets a stated need of the consumer at no extra cost or effort and has met with universal acceptance by the trade and consumers.[5] Sandal and Natural variants of No.1 soap launched keeping with the rising popularity of ‘natural’ variants in the soap industry. Renewed focus on Institutional sales and sales to Canteen Stores Department led to growth in sales value in this segment.

Godrej has the distinction of being the first company in the world to develop technology to make soap with vegetable oils, way back in 1930. It is also manufacturing for other players in the Industry. Contract manufacturing of toilet soaps registered a 20% volume growth but grew by only 7% in value terms to Rs618mn. Capacity utilization in the industry varies from as low as 50% to 80%.

GCPL continues to be one of the fastest growing companies in the FMCG sector. Company in line with the changing times is focusing on a profile makeover. The Godrej group recently unveiled its new corporate logo with new colours that are more relevant to today’s young India. Your Company relaunched its flagship brand ‘Cinthol’ across the soap, talc and deo segments in trendy new packaging. GCPL also relaunched it’s Powder hair Dye as ‘Godrej Expert Powder Hair Dye’. During the year, the Company acquired Godrej Global Mideast FZE, a 100% subsidiary of Godrej International.

The products manufactured by Godrej Consumers Products [6]

  • Soaps
    • Cinthol deo soaps
    • Cinthol
    • Godrej No. 1
    • Evita

  • Toiletries
    • Cinthol talc
    • Cinthol deodorant
    • Godrej shaving cream
    • Godrej after shave
    • Godrej No. 1 talc

  • Hair Care
    • Renew Hair Color
    • Colorsoft Hair Color
    • Godrej shampoo-based hair-dye
    • Godrej herbal hair dye
    • Godrej kali mehendi

  • Household Care
    • Godrej Dish Wash
    • Godrej Glossy

  • Fabric Care
    • Ezee

Cinthol- The Super brand

Cinthol, the flagship brand of Godrej Consumer Products Ltd., is now recognised as a Superbrand by the Superbrands Council, U.K. The criteria for winning this prestigious award were:[7]

· Perceived brand image

· Brand mind share

· Consumer goodwill

· Consumer loyalty

· Trust and emotional bonding with the brand

Cinthol, with its rich heritage of more than five decades, has been extremely successful in creating a niche in the consumer’s mind. Superbrands India had identified 101 Indian brands from 700 entries across 98 sectors for inclusion in the first ever "Indian Consumer Superbrands 2004".

Today, despite the presence of global corporations, the Cinthol brand has carved out a consumer base of more than 17 million users. The soap market in India is determined to be of the order of Rs. 41.75 billion and Cinthol commands a turnover of Rs 1.05 billion with a market share of 2.5% by value.

When needs change, brands need to change as well, to remain contemporary and desirable. Cinthol has kept pace with evolving markets. It has reinvented and rejigged its portfolio without compromising on its core values.

Today in the market, Cinthol has three distinct variants, borne out of market needs and consumer studies. Cinthol Deodorant & Complexion soap continues to operate in the 'healthy skin' category.

The soap offers numerous 'do-good' benefits such as total and complete skin protection.

Cinthol Fresh is a strong player in the 'freshness' category. The lime extract provides deep cleansing properties and the excellent long-lasting lime fragrance keeps one feeling fresh. [8]

Cinthol Deo Soap is the latest offering from the Godrej stables. This new soap-on-the-block is aimed at satisfying a latent problem: hesitation to get close because of body odour. It has a unique long lasting deo formula that prevents body odour all day long. It comes in four exciting fragrances:[9]

1. Deo Cologne,

2. Deo Sport

3. Deo Classic

4. Fresh

Each of these sub-brands has helped extend the durability and youthfulness of the mother brand.

CHAPTER-3

DATA TABULATION

For the data collection the researcher went to Mr. Summit Bagai the regional sale and marketing head of Rajasthan foe Godrej Consumers Product Limited. The researcher was welcomed by Mr. Bagai. All questions were asked in the form of interview the main questions are:-

Q.1. Good morning sir, can u please tell me what is the Cinthol all about for Godrej Consumers Products Limited?

Answer : Cinthol, the flagship soap brand of Godrej Consumer Products Ltd. (GCPL), has come a long way since the early 1950s when it was launched. Ever since its launch in 1952, Cinthol has been the perfect embodiment of the expression 'confidence personified'. It addresses the need for effective body odour removal through the unique proposition of deodorant in soap.

Q.2. Sir, Can you please elaborate on recent developments of Cinthol?

Answer: The company has relaunched its entire range of soaps, in three fragrances — Classic, Cologne and Sport. To send one cohesive brand message across price points and variants a “24-hour confidence” stamp is also affixed on all products carrying the Cinthol nameplate. The New Cinthol range will be available across the country at modern retail and other outlets and will be supported by high-impact advertising on television, print, out-door, on-line and radio. The key recent development for Cinthol are:

1. Re-launch of Cinthol soap.

2. An interactive website for Cinthol soap -www. Cinthol.com

3. Hritik Roshan as the brand ambassador for Cinthol soap.

Q.3 In present competitive market of bathing soap, relaunch of a soap which is already completed its life-cycle how can Godrej rely on its old aged product rather than launching a new product?

Answer: Good question asked, a brand valuation exercise undertaken by international brand valuation consultants, Brand Finance for the group. The report card showed that there was immense scope for improvement. While the potential value of its top five brands — Cinthol, Fairglow, Godrej No 1, Ezee and Godrej Powder Hair Dye — was Rs 3,900 crore, their realised value was at only Rs 2,600 crore. What explained the Rs 1,300-crore gap? Brands like Cinthol. The brand had a huge equity, but that was hardly being reflected in sales. For instance, in 2007, retail audits pegged the market share of Cinthol at less than 3 per cent in the Rs 6,000-crore toilet soap category. Godrej is now taking another shot at reinvigorating the brand. Cinthol is the flagship brand of Godrej. But we haven’t given it due attention. We stretched it too much without a unified platform. We now intend to bring it under one umbrella while making it more relevant to the young male audience.

Q.4. What is the strategy behind taking Hritik Roshan as brand ambassador?

Answer: Hrithik Roshan with his boundless energy and passion to excel was our obvious and most appropriate choice for Brand Ambassador. He exudes Confidence and doesn’t stop till he meets the high benchmarks he sets for himself.

Cinthol has always stood for confidence. We, therefore, needed to decode what confidence meant to youngsters, which helped us develop a clearer position. This position needs to be attitudinal, therefore, the new 24-hour confidence and the ‘don’t stop’ concept,” adds Dubash.
The new ad represents just that. The racy campaign features Roshan pulling off dare-devil stunts. The ad starts off with the actor running through the wilderness and across roof tops. This is followed by the actor indulging in incredible feats of bungee jumping, rafting, and horse riding.
The campaign ends with Hrithik playing football. He looks into the camera and says “Don’t stop.” We saw a complete fit between what Cinthol stands for and Hrithik’s values. He exemplifies energy, passion, and the ‘don’t stop’ attitude to achieve what he wants to. That is exactly what our brand represents, as well. Hrithik has sex appeal and Cinthol has always used celebrities with that kind of appeal. Be it Imran Khan or Vinod Khanna. Moreover, after Jodhaa Akbar, Hrithik’s appeal has only widened. He is a great fit with the brand.

Q.5. What is motive behind the website for a soap?

Answer: Godrej wanted us to create a platform where the youth could find out about Cinthol’s brand values and which they would find entertaining enough to continue their interaction with the brand. In simple words, ‘take the real life freshness and energetic Cinthol experience online.

The site will be modified in phases. Currently, what you see on it is part of Phase 1. In the second phase, we will be tying up with portals such as Yahoo!, Rediff, Google and Zapak in order to direct traffic to our site. For instance, a game will be launched on Zapak.com, which will divert consumers to our site. More games will be added later to the site.

Q.6.Future development for Cinthol soap?

Answer: We believe the shower gel category will grow handsomely in the near future. Today, the category is just about 1% of the total personal wash segment. The potential to grow is very high so Godrej is actively considering to get into the category with brand name Cinthol. We are conducting consumer research right now.

CHAPTER -4

ANALYSIS

The opportunities & threats for Cinthol soap

ISSUE PRIORITY MATRIX

ISSUES

1. Demographic environment of India –

The total population of India is above 1.3 billion and out of this near about 33% are of youth people age between 16 -30 . The sex ratio in this category is 59: 31 of male and female. This shows we are on right path to identify our target segment and this is good opportunity for Cinthol.

2. Social practice of purchase of soap-(Female purchase)

In India it is our social practice that female member of family is responsible for purchasing especially in rural of suburban market. The Cinthol is targeting youth and especially male consumers so this is a threat for Cinthol.

3. Males are getting more conscious about their look and appearance-

Looking good or attractive is area which now a days just not belongs to females only. Now males are also getting more concerned about their look and appearance. This shift in thinking pattern of Indian youth male is a opportunity for Cinthol.

4. Brand switching or easily substitutable

Soap industry or rather to say all FMCG categories have this brand switching phenomenon. The consumers doesn’t wait for the product because substitutes are available easily.

5. Soap noodles (High Inflation & fluctuating Exchange rates)

Indian economy is going through the inflation phase and basic raw material for soap is soap noodle and prices are increasing very drastically. To maintain the price of soap it is challenge for soap producer.

6. Oraganised Retail sector

Booming retail sector and mentality of peoples of India is now changing. Now peoples are ready to pay for good quality and in these modern retail stores the youth is also coming for purchasing all this is the great opportunity for Cinthol.

7. Animal fat cannot be used in soaps

Initially fatty acids used for soap manufacturing were of animal fats but due to legal obligation no organisation can use the animal fats in their soaps. The option left in front of manufacturers is natural fats like Pam oil. This Pam oil is imported from Malaysia and other countries increases the coat of production; fluctuating exchange rates of dollars are also a problem.

8. Less direct competition-

In popular segment of soaps their not much competitors’ for anti body-odor. The main competitor is liril and that is targeting female consumer so this niche segment is totally open for Cinthol.

OPPRORTUNITIES

1. Demographic environment of India –

2. Males are getting more conscious about their look and appearance-

3. Oraganised Retail sector

4. Less direct competition

THREATS

5. Social practice of purchase of soap-(Female purchase)

6. Brand switching or easily substitutable

7. Soap noodles (High Inflation & fluctuating Exchange rates)

8. Animal fat cannot be used in soaps

ISSUES PRIORITY MATRIX

IMPACT

HIGH

MEDIUM

LOW

PROBBLILITY

CRITICAL ISSUE

Less-direct competition

HIGH PRIORITY ISSUE

Oraganised Retail sector

LOW PRIORITY ISSUE

4- THREAT TO SUBSITUTE

HIGH

MEDIUM

HIGH PRIORITY ISSUE

Males are getting more conscious about their look and appearance-

HIGH PRIORITY ISSUE

Demographic environment of India

Social practice of purchase of soap-(Female purchase)

LOW PRIORITY ISSUE

LOW

TO BE WATCHED ISSUE

Less-direct competition

LOW PRIORITY ISSUE

Soap noodles (High Inflation & fluctuating Exchange rates)

LOW PRIORITY ISSUE

Animal fat cannot be used in soaps

EFAS- EXTERNAL STRATEGIC FACTOR ANALYSIS.

ISSUE NO.

WEIGHT

RATING

WEIGHTED SCORE

COOMENTS

OPPORTUNITY

Cinthol HAVE GOOD STANDING IN RESPECT TO ENVIRONMENTAL CHANGES

4

.3

5

1.5

2

.2

5

1.0

1

.1

4

.4

3

.1

3

.3

THREATS

5

.1

2

.2

6

.1

4

.8

7

.05

2

.1

8

.05

3

.1

EW=1

4.4

Current Strategies of Cinthol soap

Brand Rejuvenation or Revitalization-

Brand Rejuvenation or Revitalization is a major overhaul of a brand, starting with its positioning and proceeding through creative regeneration of the brand identity.

Brands like Cinthol pursue an ideal whereby they simply peel off their old skin and relaunch themselves as a new brand. Considering the fact that product life cycle and brand life cycle are related, we can understand the requirement of brand rejuvenation by the following figure. Here we see that the rejuvenation strategies are named as injections of new life. These help the company increase the sales and thus improve the brand image of the product.

Revitalizing a once-popular dormant brand can be a highly profitable strategy under the right circumstances. Over time, brands build up awareness and name recognition among consumers. People connect emotionally with a brand that reminds them of a specific time, place or experience, and old brands often have a reputation of reliability that new brands cannot match. Bringing back a dormant brand that consumers already recognize and are loyal to can save a lot of money. These savings are in the development, marketing and advertising expenditures that are required to launch a new brand. Making use of pre-existing awareness can also increase a product’s success rate by helping to cut through the clutter of products in the media.

In this strategy they followed three steps.

The first step (“Brand Discovery”)

This is a very drastic audit of the company and the different levels of management, to understand, what the company stands for, and what their core competence is. From here, they look at their marketplace, the distribution, everything, how it works across the country. In the case of Cinthol the godrej’s called a international brand audit firm and ask them to evaluate their brands.

NEXT (“Brand Practices”)

Then, they make an in house Perceived and Potential (P&P) values research, which is very important. Customers’ perceptual mapping in relation to the competition throughout the country has to be brought. The real sale was much less than what it should be according to the brand value calculated. Then the godrej decided the target or potential sale.

The Last step ( Brand Maintenance)

This is the finished artwork and the strategic orientation: how it should be communicated. All advertising, all communication strategy, whatever it is in the share market, everything should include the core benefit of the product. At this stage, they interact with the marketing team of the client for the training programme, telling them how to implement, which is very important.

1. Back to basics

2. Associate the Brand with New Usage

3. Strategy of offensive war fair by a challenger.

4. Some things are not for everybody

5. Youth icon Hritik

6. Interactive website

7. Pricing & promotional strategy

8. Attractive packaging

9. Advertisement

· Don’t Stop.

· 24 hours

Cinthol is all about 24- Hour confidence, energy and a 'Don’t Stop' attitude it was very natural for me to associate with this brand. Its in perfect sync with my lifestyle & attitude”

The new Cinthol range brings 24-Hour Confidence through Active Deo Formula, which controls body odor, Powerful DryShield that absorbs sweat, UltraScent Technology for long lasting fragrance and Freshness that revitalizes you 24x7.

1. Back to basics

Godrej took shot at reinvigorating the brand. Cinthol is the flagship brand of Godrej. The company haven’t given it due attention. They stretched it too much without a unified platform. They now intend to bring it under one umbrella while making it more relevant to the young male audience. Earlier cintol was know for its masculine image then the company give it the the full family make-over but it doesn’t work and market share was diluted so the best option is to get back to basics.

2. Associate the Brand with New Usage

By expanding the perceived usage situations for a mature product, product sales can rise, or at least be protected. Cinthol sales increased when it was marketed as toilet soap with deodorizer for the body. This repositioning was vital for Cinthol since the competition was increasing and the market share was shrinking every year.

3. Strategy of offensive war fair by a challenger

Cinthol is the brand of godrej and godrej is having second position in toilet soap industry basically the organisation is challenger and according to offensive warfare strategy the challenger must look in the weakness of the leader and try to convert that in its opportunity. Likewise HUL is having leader position but is not very good in the particular segment for male product so Cinthol is utilizing this weakness to create the niche market for saling the product.

4. Some things are not for everybody

Cinthol is now using the new strategy that is some things are not for every body. There are few important peoples to whom Cinthol is catering. This gave the feel to the consumer of Cinthol that they are special and not ordinary one. The masculine feel for people who want to be confidant for 24 hours.

5. Youth icon Hritik

Hritik is well known and most successful actor of this generation. His image is masculine and have sporting image as well. The youth want to be like Hritik so this the strategy to attract youth more and more towards the Cinthol brand.

6. Interactive website

The pace of technological change, which is shortening product life spans, can act as an issue during rejuvenation. From product innovation to parity to obsolescence is a much faster route, making effective brand rebuilding at the product level more difficult. Ever-increasing channels of communications, the Internet and new global markets, provide an opportunity and a threat to the brand builders. They create new opportunities to create truly global brands, but they need a lot of contemplation, as they are not stable.

Website is to create a platform where the youth could find out about Cinthol’s brand values and which they would find entertaining enough to continue their interaction with the brand.

7. Pricing & promotional strategy-

Although there is high inflation rate is going on and raw material prices are increasing but still the prices are kept in control. The 125gm of Cinthol costs 22 INR and it is coming in combo pack with money saving offers.

8. Attractive packaging-

Cinthol is now coming with its new packaging that is more attractive, when a person open the packet he can feel the fragrance of the soap. the material used in this is of good quality and can assure the buyer that product will also be of good quality. “24-hour confidence” stamp is also affixed on all products carrying the Cinthol.

9. Advertisement

The communication had to be relevant to the target audience — the confident achiever who wants to live an active lifestyle.Yet because of the varying price points, the company needed to ensure that it delivered a single message to consumers of brand Cinthol, rather than design variant specific communication, he adds. Cinthol has always stood for confidence, therefore, needed to decode what confidence meant to youngsters, which helped us develop a clearer position. This position needs to be attitudinal, therefore, the new 24-hour confidence and the ‘don’t stop’ concept. The new ad represents just that. The racy campaign features Roshan pulling off dare-devil stunts. The campaign ends with Hrithik playing football. He looks into the camera and says “Don’t stop. This exemplifies energy, passion, and the ‘don’t stop’ attitude to achieve what he wants to. That is exactly what Cinthol represents as well.

Apart from the conventional TV, print, and cinema promotions, the company’s 360-degree campaign includes outdoor visibility, modern retail activation, digital marketing initiatives and communication through short messaging service (SMS). It also plans to beef up its rural distribution.



CHAPTER-5

Conclusion

Cinthol, with its rich heritage of more than five decades, has been extremely successful in creating a niche in the consumer’s mind. Superbrands India had identified 101 Indian brands from 700 entries across 98 sectors for inclusion in the first ever "Indian Consumer Superbrands".

The Cinthol is more than 50 years brand but the sales were declining. This has led to the re-launch of Cinthol targeted for the entire family unit but this policy worked not properly now Cinthol is take back or u-turn for its alpha male. It was initially positioned as a “soap for men.” Later it was repositioned as a “family soap.” Now it seems that the company wants to again reposition it as a “soap for the youth.”

Major Cinthol Activities
1. Understand changed consumer needs
'Cinthol has always been associated with the alpha male personality. They have revived it, but in a more contemporary manner'
2. Reflect the change in product communication
'The new communication has a masculine tonality, but it is targeted at young adults who aspire to an active lifestyle.'
3. Have a distinctive celebrity endorsement (which according to me was the right thing to do)
4. Reflect the change in packaging (view).
5. Run a planned campaign for 12-18 months bringing together all the above elements
6. Have a website for interacting with customers and creating tribes of like minded users.

CHAPTER-6

RECOMMENDATION

“U-turn to alpha youth personality” this is the basic strategy of Cinthol right now in this the Godrej have considered the youth as their target market segment this is right to some extent but there are always chance of improvement and after studying about the opportunities and threats and recent strategy undertaken by Cinthol. There are some suggestions of mine-

1. Consideration to Rural Area

2. Big Retail outlets

3. Local or state level sponsorship,

4. Backward Integration

5. Purchase in Futures or Derivatives

6. “Cinthol Partner” contest

1. Consideration to Rural Area

the whole advertisement and promotion is designed by taking urban youth in focus but there is large no of youths in rural sector as well and they can be their future consumers. Taking Hritik Roshan as brand ambassador is good decision. But godrej can further use recent bronze medalist Boxer Vijendra kumar as there endorsement. Vijendra is having good lookin personality and he belongs to rural area so in this way rural people will start associating themselves with Cinthol.

2. Big Retail outlets retail sector is booming and Cinthol is using these resource in good manner but these should be used optimally like, Cinthol should be placed in the right rakes of the store. The promotion should not only be restricted in the personal care zone but it can be extended to sports zone because the Cinthol can be used by these youth players which face the problem of body-odor.

3. Local or state level sponsorship

The godrej do have option of sponsoring local or state level sport tournaments according to the popularity in particular zone like hockey or boxing in Punjab cricket in Maharashtra or tennis in Andhra-Pradesh etc. this strategy will increase the craze and awareness of Cinthol in rural and urban areas in very little amount of expenses.

4. Backward Integration

The Pam oil prices are increasing very drastically. So company can think to take over any middle size Pam oil producing firm in Malaysia this back-ward integration will help in the frequent and economic supply of raw material. Organisation can earn profit by supplying the Pam oil to other companies as well.

5. Purchase in Futures or Derivatives

The prices are also fluctuating in international market so company can use the futures and derivatives for reducing the risk.

6. “Cinthol Partner” contest

As the problem in Indian families is the femail partner purchase soaps. So we can run a Cinthol partner contest for user. In this the Cinthol soap can contain a female ring that is a gift from cinthol to a lady whose partner is using Cinthol. In this way we can motivate ladies to purchase our product more and more.

Bibliography:

Books:

  1. Wheelan Thomas L & Hunger David J, Strategic Management & Business Policy: Entering 21 Century Global Society, Sixth Edition, Addison- Wesley, 1998.
  2. Kzmi Azhar, Business Policy, Tata McGraw Hill, 2000.
  3. Prasad LM, Business Policy: Strategic Management, Sultan Chand & Sons, 2001.
  4. Mamoria & Mamoria, Business Planning & Policy, First Edition, Himalaya Publishing House, 1987.

Website:

  1. http://www.businessworldindia.com/JUNE1206/coverstory01.asp#
  2. http://www.netmba.com/site/search
  3. http://www.thetimes100.co.uk/theory/theory.php?tID=319



[1] http://www.naukrihub.com/india/fmcg/overview/soaps/

[2] www.marketplace.com

[3] www.godrejgroup.com

[4] www.globalgodrej.com

[7] http://www.change.godrej.com/2005/janfeb/GodrejIndustries.htm

[8] http://cinthol.com

[9] http://business.mapsofindia.com/india-company/g/godrej-consumers-products.html

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