Consumers want to try new disruptive formats: Sunil Kataria, Godrej
CEO – India & SAARC, Godrej Consumer Products Limited (FMCG Business), shared the idea behind the company's new innovation and how it helps bring about a change in society
In an initiative to combat issues of poor hygiene, affordability and availability, Godrej Consumer Products is now empowering consumers with Protekt Mr.Magic, a powder to liquid hand wash.
Sunil Kataria, CEO – India & SAARC, Godrej Consumer Products Limited (GCPL FMCG Business) shared the idea behind the innovation and how it helps bring about a change in society.
What was the idea behind launching this product?
We at Godrej have always dreamt of a future where every home can afford a liquid hand wash and I think with this product we are close to it. Now people can afford a liquid hand wash and with this powder sachet priced at Rs 15 which is one third of the existing refills in the market, now everyone can buy a 15 Rupees sachet and make a liquid hand wash at home in just a matter of a minute and use it.
Launching Protekt Mr.Magic at such a competitive price, what is your marketing strategy and what are the targets in terms of revenue that you are looking at?
The handwash market in India is pegged at Rs 740 crore, with the category growing at 15 per cent. The market estimate for handwashing soaps stands at Rs 8000 crore. However, the penetration of handwash is very low and restricted to the higher SECs which is around 20 per cent in urban India. This means only about 2 crore households use a liquid hand wash.
We make things that are good for the environment and consumers and obviously us. We are not looking at the liquid hand wash perspective only, since it's a powder that gets converted in a liquid by customers, so we are not selling the water and that's how it becomes a cost effective product for us. Hence we are passing those benefits to the consumers. Estimated revenue from this product in two years may be Rs 200 crore or in four years it may be Rs 500 crore.
What is your target segment- Rural India or Urban India?
Liquid hand wash has only 20 per cent penetration right now and the awareness level is 55 per cent. So very clearly we need the urban users to start adopting hand washing and parallelly rural is also a very open market.
What are the markets you are considering to launch this product?
In the first phase we are launching in India, worldwide we will have to take care of different geographies as per portfolio requirements, which will happen eventually.
What are the three marketing shifts happening in FMCG Industry?
The biggest shift is that consumers are doing two way conversations with the brands on the digital platforms and social media. Initially there was only a message propagated from television to consumers that being one way, Secondly, viewers are wanting to pay premiums so premiumisation is picking up, the only thing is consumer needs a reason to pay that premium, thirdly there needs to be a differentiating factor so it’s not only being affordable but it should also create a value and experience for customers.
How are today's FMCG players catering to customer experiences?
Today, consumers want to try new disruptive formats and it’s happening because firstly, online they are able to interact with the brand. Secondly, they learn a lot about the brand from reviews and word of mouth from other consumers rather than the brand itself. Thirdly, they get information on how to use a product and especially for new formats. We at Godrej are doing a lot of interactive stuff through our digital marketing thereby creating virtual experiences with the consumer online. We have created shorter interesting videos to teach the consumer how to use our products with new formats like Protekt Mr.Magic as well. With virtual reality, artificial intelligence we can create any experience for a consumer on the digital plain.
What are the other products you plan to launch this year?
Innovation has been a big cornerstone of our strategy and this year we are looking at 7-9 launches across our four categories, Protekt Mr.Magic being the fourth launch of this year.
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