The Rs 7,500 crore Godrej Group announced a new marketing and branding strategy at its headquarters today.
The strategy outlines a roadmap for the group to invest in a new Godrej master brand and corporate identity to support its targeted revenue growth of 25 to 30 per cent annually for the group.
Adi Godrej, chairman Godrej Group said “We are aiming to triple our turnover by 2012 by focusing on our fast moving consumer goods (FMCG) business — Godrej Consumer Products (GCPL), Godrej Sara Lee and Godrej Hersheys. At present the consumer goods turnover is Rs 2,300 crore and the group aims to reach revenues of Rs 8,000 crore for this business in the next four years. We will also look at inorganic growth as a medium to grow.”
As part of its new marketing strategy, the company has formed a Strategic Marketing Group (SMG) which would look at maximizing the value of the Godrej Brand and its constituent businesses.
The Godrej logo has now been turned from bright red into three colours: green blue and ruby. The main objective of changing the logo was to modernize the brand identity and to make it distinctive and vibrant, that has better connect with youth.
Tanya Dubash of Godrej Group, who initiated the idea of this rebranding exercise said: “The SMG would look at how the individual brands and the master brand can gain in terms of brand equity from each other. We will also work on how the various companies which are now functioning as separate FMCG companies can benefit from cross-business synergies from each other. We will invest in creation of powerful platform of brands and sub-brands to create a strong Godrej brand franchise.”
This step by the company would involve greater presence of Godrej master brand on its sub-brands.
In this process the company would be investing Rs 100 crore a year on communication itself to complete the rebranding process.
This exercise is a result of 18 months of quantitative analysis done in association with Interbrand, a UK-based firm.
The SMG would also keep a tab on the key performance indicators linked to its business performance in following aspects: corporating branding, consumer branding and brand valuation.
The group has also identified four “hero businesses”: personal grooming, properties, furniture and appliances that would enable the group leverage Godrej’s scale, talent, experience and equity.
The company clarified that this coherence culture that it is aiming at would be mainly at the level of branding and it would not be structural.