THE GODREJ SUCCESS STORY: MARKETING CONCEPTS THAT CONTINUE TO STAY RELEVANT IN THE 21ST CENTURY
The origin of unique marketing concepts can be tied to a series of events, some of it even found in entrepreneurial ventures of market players who made it big in the space. While Godrej is now recognized as a leading FMCG player in India that has scaled globally, what were the strategies that set it apart from competitors? Let’s take a look.
FROM MAKING LOCKS TO SELLING SOAPS
Amidst rising nationalism and campaigning for independence, the late nineteenth and twentieth century witnessed a swathe of radical ideas that backed the Swadeshi concept. It was at a time when two lawyers had just returned from South Africa; Gandhi and Ardheshir Godrej, who shared their passion for a free India. While the latter placed his focus on the political front, Ardheshir wanted to contribute by inculcating self-sufficiency in India
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The Godrej story started with Ardheshir working with a company that mass-produced surgical instruments. This was a struggle, due to the Britishers constantly shutting down local brands, marking them as unsafe to use to strengthen their own products. This struggle led to the formation of Godrej, with Ardheshir setting out on his own to build a company that manufactured products with the made-in-India label.
He spotted an opportunity in producing locks for safety amid the surging burglary incidents in Bombay, with the state commissioner considering ways to improve security. He approached Merwanji Cama, a prominent Bombay trader for seed funding and promised the addition of his nephew, Boyce to the new company's name.
The growth of Godrej and Boyce from here saw the replacement of Chubb in Wolverhampton, UK, who was then exporting their locks and safes to the British government. Ardeshir purchased steel from Tata, invested in sophisticated machinery, and manufactured the best locks, which were tested for fire and burglary. This was a major success with many customers testifying for the product at the time - a kind of word-of-mouth advertising that popularized the brand. One such incident involved the safekeeping of funds amidst the fire at Dharamtala, Calcutta, demonstrating the product's superiority and quality. The British government and railways became their clients soon after. The company replaced any foreign brands exporting locks into the country, making it a win for the Swadeshi movement.
Ardeshir’s next venture was into the soap industry. In 1918, when most Indians were boycotting foreign items as part of the Swadeshi movement, there was an influx of foreign soaps made of animal fat in the Indian market. Ardeshir chose to build a product that was entirely animal fat free, by replacing the same ingredients with vegetable oil seeds. Chavi was the very first vegan soap made in India. By the 1920s, Ardeshir launched a series of soaps and rose up the ladder to become the second largest producer of soaps in the country; one of its popular brands being Cinthol, which we are familiar with. The success story witnessed Ardeshir associating the Gorej brand with a greater cause. They were not only making locks and soaps, but also propagating the Swadeshi (Made in India) message.
TAKEAWAYS FROM GODREJ’S MARKETING STRATEGIES
- Identifying Consumer Needs and Influencing Them When Required: Godrej identified the need for safety in the minds of consumers and provided them with a solution - superior-quality locks for safekeeping. They also influenced consumers towards luxury bathing with their made-in-India soaps built from natural ingredients.
- Communicating with Consumers in their Language: Godrej began by advertising their products in Gujarati to cater to the middle class - their main target audience.
- Utilizing the Best Possible Resources to Get the Message Across: Back in an age when digital communication was unavailable, Godrej made the best use of word-of-mouth advertising to generate credibility and brand recall among their audience.
- Creating a Desire for the Next Product: Godrej released their products in an increasing order of superiority to create a sense of curiosity in their consumers.
- Advocacy for a Social Cause: CSR is undoubtedly a company’s best friend even in this day and age. As the Swadeshi movement gained traction among Indians, Godrej products earned widespread support from famous figures like Gandhi and Rabindranath Tagore, due to their brand promise of a self-reliant India.
- Understanding the Market and Leveraging your Strengths to Stand Apart: Godrej utilized a classical marketing technique of highlighting the weaknesses of the competitor. While consumers were boycotting foreign soaps that used animal fat, Godrej saw this as an opportunity to introduce their product that solved this problem.
