While TV is the lead medium, GCPL is looking to increase its spending on digital,

BTL, print & radio.

Godrej Consumer Products whose brands include Cinthol, Godrej No1, Good Knight, HIT,
Renew, Godrej Expert, and Godrej Aer is aiming big on innovation, and its flagship brand
Cinthol was rearranged as a premium personal-care brand. The company's strength lies on its
strong brand platforms across its three major categories of home (Good Knight and HIT),
personal (Cinthol and Godrej No1), and hair care (Cinthol and Godrej No1) (Godrej Expert).

It has had five back-to-back releases in the last year, displaying its commitment to innovation.
Indeed, GCPL increased its advertising and PR expenses by 48% in the previous quarter, owing
largely to these new launches. GCPL has also improved its R&D capabilities and identified areas
where it can improve its knowledge and skills.

While television remains the most popular media, GCPL wants to enhance its investments in
digital, consumer activations, print, and radio. In fact, the company sees the digital domain as a
potential growth area and has its own sales team for growth and popularisation of the business.

The company stated that it will continue to invest in innovations, and that every product
introduction would be accompanied by the appropriate level of investment. The company wants
to be digitally ready and maintain a high digital quotient. They're staffing their teams differently,
increasing competencies, and making digital a focal point of their overall media strategy.

BUILDING DEDICATED DIGITAL TEAMS

Our Global Digi Cell brings together digital marketers from all around the world to exchange
their knowledge and ideas. In addition, we collaborate on digital priorities with other internal and
external teams. In critical areas of search engine marketing and measurement, our online
education collaboration with Circus Street resulted in a 32% rise in competency levels.

LEVERAGING GLOBAL PARTNERSHIPS

To enhance learning and experimentation, they are forming and leveraging worldwide
collaborations (such as Google and Shopalyst). The strategic connection with Facebook allows
the company to gain access to the best practises and beta testing for Facebook's critical
platforms. The core team attended deep immersive sessions in Google and Facebook
headquarters in September 2018, bringing closer to our key partners and revealing important
consumer insights. They also took part in workshops with a number of consumer-facing start-ups
to gain a better understanding of digital-first thinking.

STRENGTHENING DIGITAL ECOSYSTEM

Seventy percent of brand websites have been modified to improve the user experience, organic
traffic, and conversion for our customers. The average amount of time spent on each site has
significantly increased. The bounce rate has decreased, owing to more interesting content and
deeper linkage of articles, which has resulted in increased engagement. Articles, photos, and
how-to videos are available on the site to assist and inspire all over the world.

CRAFTING CONSUMER- GENERATED CONTENT

The ultimate goal of marketing ROI is peer-to-peer product recommendation. The company can
explore on a large scale thanks to social media. We've been collaborating with influencers to
bring our items in front of our target demographic on the social media sites where they hang out
(Instagram, Facebook and YouTube). The generated consumer content is genuine and believable,
as well as written in a tone and language that our customers understand. We're continuing to
speed up this effort and will shortly open The Light Box, an internal production studio that will
allow us to work with influencers, celebrities, and consumers to create cost-effective, engaging,
and on-brand content.

BTL

As a result of rising commodity costs, manufacturers of large packaged consumer goods are
postponing promotional offers to retailers and consumers while boosting product pricing.
Companies frequently provide incentives to retailers and consumers in order to increase sales.
Extra units of a product, for example, or discounts are given to shops to encourage them to sell
more.

Some trade incentives and promotions offered to retailers for stocking items that include extra
packs as well as below-the-line initiatives with retailers and distributors were reduced by the
company.

The company has raised prices selectively in some portfolios and has provided some benefits
while reversing some trade discounts and schemes, resulting in a 6% increase in input costs in
the March quarter. As a result, the cost of commodities such as palm oil, detergent raw
ingredients, and packaging materials has risen.

To pass on the cost inflation, most businesses have raised prices and decreased promotions. As a
result, more incentives are being provided to enable the workforce. To maintain strong
availability, brands have begun to focus more on core products rather than a broad range. As a
result, the number of stock-keeping units in circulation has decreased, as it simplifies
manufacture and aids in ensuring continuous distribution.

Leveraging technology and analytics:

In India, we adopt a micro-marketing strategy to tackle inefficiencies and concentrate

expenditure on specific niches rather than spreading it thin across bigger segments. For example,
the company had a successful targeted Maharashtra launch for our Godrej No. 1 Abhyang Snan
soap range, which was supported by on-ground and TV/digital advertising and was the first
regional soap launch by a large national brand. They want to reach consumers throughout the
festive season for Godrej Expert Rich Crème, so we designed #NayaAvatar, a Maharashtra-
specific ad for the Ganapati festival. Through regionally relevant print advertising, a large digital
push to crowdsource #NayaAvatar of the popular Ganesh Arti, and a special TVC, the campaign
was able to reach a wide audience for the category, there was a significant rub-off on brand
marks in the months ahead.

Fostering win-win partnerships

The involvement of channel partners through our ‘Unnati' and ‘Bandhan' loyalty programmes is
one of our top focuses in India. At forums such as new product launches and outbound meetings,
we also get together and share ideas and feedback. We intend to strengthen these programmes
even more in the future so that our partners may flourish alongside new disruptive distribution
models.

For example, in modern trade, it will be through collaborative business planning with important
partners. We'll test concepts like WhatsApp connect forums and direct pay-out transfers for long-
term loyalty programmes like Parivaar and Golden Club. As a result, they are looking into new
approaches to improve these collaborations, such as leveraging technology to increase efficiency.

Evaluation of Channel effectiveness:

The GCPL's (rural) distribution network is divided into six levels. A super-stockist is a person
who receives stocks from multiple CFA agents. There are 12 Sub-stockists for every Super-
stockist. The hub and spoke model is used to transport items from the Super-stockist to the Sub-
stockist. Each Sub-stockist is responsible for 15 retail outlets.

Rationale of the Distribution Model

This is the most efficient and cost-effective supply and cost structure, allowing the organisation
to operate at maximum efficiency and at the lowest feasible cost. The company uses a carrying
and forwarding agency (CFA) because of the enormous number of SKUs they have to deal with.
Godrej Consumer Products Ltd. has about 250 different SKUs. Work would be impossible
without it for a company with so many SKUs. GCPL's structure, in addition to the CFA, is a Hub
and Spoke Model.

Hub and Spoke Model

For effective distribution of commodities from Distributor (Urban)/Super stockist (Rural) to

Wholesalers (Urban)/Substockist, GCPL uses the hub and spoke model (Rural). The following
are the reasons why this model is used:

Reaching out with efficiency

Lower Transportation Costs

Economies of scale are a type of economy that occurs when a large number of people work

Carrying and Forwarding Agent:

A person who is involved in clearing and forwarding operations in any way to another person,
either directly or indirectly, and includes a consignment agent. This is the company's distribution
and holding point between its manufacturing facilities and super stockists/distributors.

GCPL has assigned one C&FA member to the Delhi division.” They are in charge of reaching
out to distributors, providing them with merchandise, and resolving any issues that arise during
normal operations. Their main responsibilities include bulk-breaking, spatial convenience,
assortment, and waiting time.

C&FA is given with one-year or three-year contracts in which a set amount of items is put for a
set price.

Super-Stockist:

They're mostly found in rural areas as part of the hub-and-spoke model, and they're uncommon
in major areas. Every super-stockist covers about 10-15 communities, each with a population of
around 5,000 people. They provide products to sub-stockists (generally 20 such members) from
the CFAs.

This channel's main purpose is to reach out to a large number of households, which can be
accomplished by utilising existing sub stockists in rural areas. The following are the main
expectations for this channel member:

Possession in the physical sense

Ownership

Payment and Ordering

Information on the market

Financing

For GCPL's Delhi division, there are 21 distributors on board. It is the responsibility of
distributors to provide products to wholesalers. 5 percent margins are offered to distributors.

Due to their near proximity, sub-stockists typically cater to roughly 25 local businesses in a
given area. The more rural communities are served by a variety of transit modes that make 15-
day trips to service local stores.

Sub-Stockist:

Sub-stockists do not invest in brand promotion. ISRs, or GCPL's sales agents, visit Sub-stockists
and conduct sales calls to shops. This channel member's major responsibility is to:

Promotion

Ordering
Information on the market

Financing

Wholesalers are people who purchase large amounts of items from various vendors, warehouse
them, and then resell to retailers.

A wholesaler's primary responsibility is to provide a smooth downward flow of material in the

channel while also ensuring an efficient upward flow of information and money. Wholesalers are
given a 2 percent profit margin.

Retailers:

A retailer is a company or individual that sells things directly to the end user. In the Delhi sector,
GCPL has roughly 20,000 retailers who reach out to end customers. The margins for retailers
range from 2% for hair colour to 25% for deodorants. The following are the main expectations
for this channel member:

Possession in the physical sense

Promotion of Ownership

Information about the Payment Market

Risk Taking

Distributor Salesman:

The GCPL Distributor Salesmen are divided into two groups based on sales and the number of
SKUs they sell. The following are the two categories:

PRO- Premium Retail Outlet

GRO - General Retail Outlet.

In a single day, a PRO salesman visits 12 stores, each of which has a higher sales value and bills
a greater number of SKUs. A GRO salesman, on the other hand, visits roughly 20-30 stores per
day, each of which has a lesser sales value.

In Delhi, a salesman's productivity (the highest number is GRO) is approximately 15-20 shops
per day. This indicates that roughly 15-20% of the total number of bills are cut in a day.