"With two prominent waves of COVID-19, we witnessed the biggest leapfrog in consumer behaviour – vast digital adoption owing to easier access to products and the convenience of home delivery. Further, the rise of social media has accelerated this phenomenon," says Mehernosh Pithawalla, Senior Vice President and Head of Brand and Strategic Insights, Godrej & Boyce. He was speaking to e4m about the company's 125-year journey and how it has been closely associated with India's quest for self-reliance.
“The company continues to pioneer progress for generations having introduced a number of firsts in India from locks, safes, refrigerators, almirahs, and typewriters to vital parts for India's journeys to the Moon and Mars, as well as its advances into clean technology. The firm's strong commitment to the cause of sustainability and community development has also been integral to its journey,” Pithawalla added.
On evolving marketing strategies
The use of online retail, digital wallets, free online video apps such as YouTube and Hotstar, and OTT media services has also increased. Adapting to this trend, G&B has undertaken various initiatives across its diverse group of companies with the objective of being more consumer-centric and aiding the process of cross-selling.
As for our current marketing activities, our focus as a brand has shifted sharply to conversion, reaching out to a larger audience, and gaining back brand recall with mass media. We head into the festive season with strong campaigns across OTT, digital, and print that focuses on our wide range of offerings and a specially crafted consumer offer to capitalize on the festive sentiment.
Consumers are looking for the next great experience and brands no longer compete only on price or product. Reaching consumers has never been simpler thanks to new platforms, tech breakthroughs, and social media, but given the popularity of this space, it can also be challenging to retain consumers’ attention.
To cut through the digital noise, everyone is trying to make their mark and come up with creative marketing campaigns and are making optimum use of digital sources and platforms.
On festive spend
Every festive season, various brands like Godrej Appliances, Godrej Security Solutions, Godrej Locks, and Godrej Interio, under the aegis of Godrej & Boyce, are known to offer attractive discounts, cashback incentives, and more. This year, as the flagship company of the Godrej Group, celebrates its 125th year, Godrej & Boyce ensured that its consumers had a grand festive celebration.
Consumers not only had the choice to purchase from across an array of innovative and new products with exciting offers but also could participate in a lucky draw and win a cash reward of up to INR 1 lakh daily. 125 lucky entries win cash rewards of up to Rs 1 Lakh every day. With this offer, we hope to have built greater category awareness and affinity across our offerings. G&B’s B2C businesses, on average, increased spending between 20-30% in Q2 given the onset of the festive period.
On digital spend
G&B is spending 40% of ad budget on digital media which includes spends on e-commerce platforms. Over the last three years, the digital ad spend has surged from 20% to the current 40%.
On expansion & growth
There is plenty of room for growth in the existing sectors. We are looking to strategically tap into opportunities in the sectors we operate in and move into adjacencies where possible. We have also invested in startups across construction, appliances, and energy, which support our growth plans.
From a consumer products point of view, in appliances, for example, we are seeing a trend where the premium and mid-level segments of products are doing very well. Godrej Appliances is targeting overall 50 percent growth over last year in this festival season, with higher levels of growth expected in the premium segment.
Godrej Interio has also witnessed an uplift in demand across categories like home furniture, storage, kitchens, and mattresses. In spite of increasing price sensitivity, in one segment the brand expects its brand equity and value proposition to continue fuel growth.