FUNDAMENTALS OF MARKETING

(MKT 101)
Term Assignment On

“ANALYSIS OF MARKETING ENVIRONMENT”

FMCG-GODREJ

POST GRADUATE DIPLOMA IN MANAGEMENT

(Term-I; Batch 2019-21)

Under the Supervision of

Dr. DEEPAK SINGH

Associate Professor- Marketing & Strategy

Submitted by

NISHTHA MEHRA

PGFC1920

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)

AUGUST 5, 2019
Industry Important Potential impact on the
forces players firm/business unit
Current direct 1. DABUR INDIA There is high level of competition in the FMCG
competitors 2. MARICO industry. There is a tough price war between
3. P&G HYGINE the competitors as a result of which profits
4. COLGATE-PALM. declines.
New direct 1. PITANJLI There is no major restriction that governs
competitors 2. NYKAA the entrance of the new companies in this
3. WHALEYWASHER sector so that it results in decreasing
profits.

Indirect 1. VIVEL SHOWER As there are large no of substitute available

competitors GEL(ITC) in consumer goods which results in huge
2. BLACK ROSE level of competition which ultimately
3. GILLETTE reduces the profits.
4. OLD SPICE

Suppliers 1.farmers The bargaining power of suppliers in FMCG

2.Shree Ashthavinayak industry is low as there are large no of suppliers
3.khutale Engg available that provides the input for the
4.Ajay poly production of consumer goods.

Buyers 1.. D-MART The bargaining power of buyer is high as these

2. BIG-BAZAR retail units buy the products in bulk from the
3. RELIANCE FRESH company and hence can easily reduce the
profits of a company by reduce the margin of
the product.
FORCE SUMMARY OF IMAPCT OF ENVIRONMENTAL
FORCE
POLITICAL 1. GOODS AND SERVICE TAX -skin care, body wash, baby food of Godrej comes
under the 28% bracket.
many products are taxed under the 18% bracket are taxed lower rate than
use to be this helps in increase the consumption of these products.
2. DEMONETIZATION -Godrej used this opportunity to tie with the
e-payment services and selling the products on their platform.
3. AADHAAR –help to enable e-payment account.
it does not have direct impact on the Godrej fmcg products.
4. MAKE IN INDIA –helps in ease of doing business.
helps in providing employment opportunities in Godrej.
5. FOOD AND SECURITY BILL –provides midday meals to the rural school
children.
6. CSR POLICY –Godrej initiates to good and green India.
7. RISE IN FUEL PRICES –As the fuel prices are increasing the cost of
transportation also increases thereby decreases the profit margin.

ECONOMIC 1. PERFORMANCE OF COMPANY - Godrej is regarded as a seventh largest

company of fmcg industry in India.
2. EMPLOYMENT- Godrej is one of the company which creates major
employment in service sector it employees around 28000 people.
3. HIGH INFLATION RATE - As a result of high inflation rate the cost of the input
increases which ultimately raises the cost of production and as a result of that
price increases which lowers the demand.
4. MONETARY POLICY –Monetary policy have both positive as well as negative
impact on the companies demand as there is reduction in interest rate there
will be more supply of money in the market which in turn increases the
demand for the product and on contrary when the interest rate increases the
flow of money in the market decreases which lowers the demand in the
market.

SOCIOCULTURE 1. POPULATION SIZE –with increase in population the demand of Godrej

consumer products also increases.
2. INCREASE IN INCOME–as a result of increase in income which thereby
changes the lifestyle of people which in turn increase the consumption of skin
care products.
3. EDUCATION AMOUNG RURAL people – by increasing the awareness among
the rural people the consumption of hygiene related products such as soaps
increases.
4. SKILL LEVEL –Godrej initiates in skill development by providing skill
development trainings to their employees.
5. DIVERSITY –with increase in the diversity among the Indian population
companies like Godrej have to produced diversified products to fulfil the
diversified needs of the customers.
 6. CHANGING FAMILY SYSTEM – NOW DAYS FAMILIES ARE SHIFTED FROM
JOINT TO NUCLEAR SO THE CONSUPTION OF CONSUMER PRODUCTS ARE
INCREASED.

TECHNOLOGICAL 1. ARTIFICIAL INTELIGENCE – The artificial intelligent is an innovation that

company is planning to toying with.
2. SMART HOMES –The company is currently working on building connected
home solution that will allow the users to control security, lighting and
appliances at home through smart phones.
3. AUTOMATED LOGISTICS – Godrej is a leader in offering the automated
logistic solution.
4. ROBOTICS –Godrej has come up with a robotic locker `Autovault’
.
LEGAL 1. GOVERNMENT POLICIES –The government forbids the company to
artificially increase the price of the products by making the product scarce.
2. The government forbids the company to mock the products of other
company by explicitly taking its name or showing its picture.

ENVIROMENT Godrej achieve zero waste to landfill, carbon neutrality, a positive water
(PHYSCIAL) balance, 30% reduction in energy consumption through the greener India
project.
Opportunities
 INCREASE IN POPULATION – As the population increases at a rate of
7% thereby the demand for the consumer goods also increases.
 INCREASE IN AWARENESS – As the awareness among the rural
people increases related to hygiene thereby the consumption of
the consumer product also increases.
 Decrease in tax compliance – some of the consumer products comes
under the 18% tax bracket have slightly increase the demand.
 RISING PER CAPITA INCOME LEVEL – As our economy is growing at a
rate of 1.1% as a result the per capita income of the consumers also
increases which rises the demand of the consumer products.

CHALLENGES
 Easy entrance – There are no major restriction that governs the
entrance of the new companies in this sector so it is the one of the
major threat to a company.
 Rise in fuel prices – As the price of the fuel increases the
transportation getting costlier thereby reduces the profits of
the firm.
 EASY AVAILABILITY OF SUBSTITUTE -There are many big
companies providing the exact substitute of the products at
nominal prices which is also a big threat to the company.
 POWER OF BUYERS- the buying power of the buyer of
products is also influence the profits of the firm thereby act as
a threat to a company.
INDRODUCTION
Godrej was established in 1897 it was founded by Ardeshir Godrej.
Today Godrej is having a patronage of 1.1 billion consumers globally.
Now Godrej footprints extend even beyond the earth with their
engines now powering many of the Indian space missions.

GODREJ FMCG PORTFOLIO

PERSONAL CARE HAIR CARE HOME CARE

CONFECTIONARY GROCERY
INTERNAL ENVIRONMENT ANALYSIS
S.NO RESOURCES/STRUCTURE/ H M L REMARKS
CULTURE

1. PHYSICAL RESOURCES
 There is no huge
difference between the
physical resources of ITC
and GODREJ. As ITC is at
second position in FMCG
industry in physical
resources on contrary
GODREJ is having fifth
position in terms of the
physical resources.
2. FINANCIAL RESOUCES
 ITC is having more
financial resources as
compared to GODREJ.
The turnover of ITC is
$8.31 billion and market
capital of $50 billion on
contrary GODREJ is
having turnover of $6
billion and market
capital of $30 billion.

3. HUMAN RESOURCES
 The Godrej is having
more human resources
as compared to the ITC.
The number of
employees in Godrej is
27279 as compared to
ITC is having 28000
employees.
4. TECHNOLOGICAL
RESOURCES  Technological resources
of both companies are
almost equal. Both the
companies are using
high level of
 technologies such as
robotics, artificial
intelligent etc.

5. 4 P’s + CUSTOMERS +
REPUTATIONAL ASSET+  PRODUCT- Both the
companies offer almost
OTHER RESOURCES AND same consumer products
COMPETENCIES to the customers.
PRICE- The price of the
product offer by both
the companies is almost
equal.
Profits margins are low
because of high level of
competition.
ITC is having more
customer loyalty as
compared to Godrej.
Godrej consumer goods
6. ORGANISATION
STRUCTURE  get the first stakeholders
value rating as per the
&RELATIONSHIPWUTH stakeholder value and
OTHER DEPARTMENT governance rating ltd. On
contrary ITC is also having
/STAKEHOLDERS good stakeholder rating
but Godrej get the first in
stakeholder value rating.

7. COMPANY CULTURE AND

INCENTIVE SYSTEM  On the basis of company
culture Godrej is having
high rating as compared
to ITC. Godrej is having
3.7 rating on contrary
ITC is having 3.4 rating.
On the basics of
incentive also Godrej is
having 63% of employee
satisfaction with salary
and incentive scheme as
compared to ITC
employee satisfaction is
50%.
INTERNAL ANALYSIS OF ITC
S.NO RESOURCES/STRUCTURE/CULTURE REMARKS

1 PHYSICAL RESOURCES ITC is at second position in

FMCG industry in terms
physical resources. ITC is
having 6900 E-choupal
(warehouse) across the
India.
2 FINANCIAL RESOUCES The turnover of ITC is
$8.31 billion and market
capital of $50 billion.

3 HUMAN RESOURCES ITC is having 28000

employees.
ITC businesses and value
chain creates sustainable
livelihood for more than 6
billion.
4 TECHNOLOGICAL RESOURCES ITC uses high class
technology such as
robotics, artificial
intelligent, etc.
5 4 P’s + CUSTOMERS + REPUTATIONAL 1. The company is selling
ASSET+ OTHER RESOURCES AND product related to skin
COMPETENCIES care, home care, personal
care, stationary etc.
2. ITC is having 81% of
market share in terms of
selling cigarettes.
 3. ITC uses digital media
for promotion of their
products.
4. ITC is one of the best
companies in the world
with the experienced and
strong management
distribution network.
5. ITC is having highest
customer loyalty as
compared to rest of the
FMCG companies.

6 ORGANISATION STRUCTURE ITC goods get the

&RELATIONSHIPWUTH OTHER third largest
DEPARTMENT /STAKEHOLDERS stakeholders value
rating as per the
stakeholder value
and governance
rating ltd.
7 COMPANY CULTURE AND INCENTIVE On the basis of company
SYSTEM culture ITC is rated as 3.4
out 5. In ITC only 50%
employees are satisfied
with their salary and
incentive scheme.
 STRENGTHS AND WEAKNESSES
Strengths
1. Godrej is the seventh largest brand in FMCG industry in the world.
2. Godrej is using high class technologies such as Robotics, AI, etc.
3. Godrej consumer goods get the first stakeholders value rating as per the
stakeholder value and governance rating ltd.
4. Provides good salary and incentive scheme to their employees.
5. Godrej initiates to good and green India.

Weaknesses
1. PROFITS MARGINS ARE LOW- As there are large no of competitors in the FMCG
industry the profit margin reduces.
2. HIGH TECHNOLOGICAL COST – as the company involve sophisticated
technologies the cost of operating and maintenance is also high.
3. Stiff competition – As there are many companies producing the same or substitute
products which results in declining the profits.
4 Low financial resources as compared to competitors- the company is having low
financial resources as compared to its competitors.
News related to company
NEWSPAPER-THE HINDU

Godrej security solution has introduced the robotic locker solution

called Autovault . It is modern and sophisticated it is very much easy
to install and require less space .it does not need large space for
storage like other lockers .it is very easy to access one can easily
access through its cabin also.it offers easy accessibility and high
security. In event of burglary an SMS alert is send to the eight
registered numbers including nearest police station.
References
1. https://www.ibef.org/industry.aspx
2. https://www.godrej.com/
3. https://en.wikipedia.org/wiki/Godrej_Group
4. https://www.itcportal.com/
5. https://www.thehindu.com/business/godrej-security-unveils-robotic-locker-
autovault/article28809280.ece