GoodKnight: Safe & Secure
Q] Recently, FMCG companies have been increasing their A&P spends. What is the percentage of A&P to your revenue and do you think increasing advertisement spends would help revive volume growth? Q] During extreme heat waves, the consumption of household insecticides category was a bit low. Do you think this new campaign will help revive sales? Q] GCPL has increased its ad spends by around 32 percent in the March quarter. Do you see that continuing this quarter and the year as well? Q] In this quarterly update, GCPL has mentioned that their Park Avenue and Kamasutra brands have been doing very well. So, are there new campaigns coming up for these brands? Q] GCPL has been increasing ad spends in the Raymond portfolio which also houses the deodorant category. Do you still see potential in the deodorant category in India? Q] How has the reception been on the launch of the anti-mosquito agarbatti? Q] GCPL has launched its in-house ad agency, Lightbox. How has the experience been? Is it better to work with an in-house agency than outsourcing? Q] Can you give an overview of your marketing mix? Is Digital your preferred way of marketing or are you spread across categories? Q] Are there any new campaigns for the festive season in India? Do you think it will be a high-consumption festive season? PROFILE ABOUT THE BRAND FACTS
Our A&P spends ranges between 10 to about 11 and a half percent. If you break up volume growth into three components, you get category growth or consumption growth, market development, and brand-led growth. Marketing spends cannot fundamentally alter consumption patterns in well-penetrated categories. But what we can do is invest in market development to expand categories beyond their current size.
For GCPL’s portfolio in India, we have many underpenetrated categories. For example, GoodKnight is present in one-third of Indian households. With GoodKnight Flash which has Renofluthrin, we’ll invest to reach more consumers, offering them safer and more effective solutions. And while this will increase marketing spends, it will also increase the available pie for the category.
The third way is to strengthen our brand. In deeply penetrated areas, we aim to make our brands more salient, available, and accessible, driving growth. This is where marketing spends will increase to support this strategy.
We are quite hopeful it will because the house insecticides category is fast-growing. The slow growth for registered players like us is due to the outdated Transfluthrin molecule which was the leading mosquito resistance for the last 15 to 20 years. New molecules are needed every 7-8 years to boost efficacy. Consequently, consumers were dissatisfied with products like GoodKnight. Over the past 6-7 years, illegal Chinese molecules, unregistered and unsafe, infiltrated the market, used by local manufacturers in incense sticks. These were effective but not safe.
After 10 years of development, we’ve introduced Renofluthrin, an Indian innovation patented in India, across GoodKnight products. This molecule is twice as effective as Transfluthrin and equally safe, validated by over 100 independent lab tests and approved by the government.
The ad spends and the mediums on which we have been spending will continue. Our commitment to category development, building stronger brands, and infusing creativity into our advertising and marketing will continue, with ad spends and related efforts remaining a key focus in our plan.
Yes, for Park Avenue and KS Deo - the Kamasutra Deo, we had launched new campaigns this month.
As far as Park Avenue is concerned, we are altering the view of the brand by elevating it to a degree of sophistication. So, we shot this advertisement in New York, which shows the rise of a young Indian CEO who makes it big in the global world. KS Deo is more in the space of seduction, which is core to the brand.
We acquired the business because deodorant penetration and consumption in India are low, with only 12-14% penetration in urban areas. This indicates significant growth potential in a hot, tropical country where deodorants are essential. We are confident this category will expand significantly.
We are the only government-registered agarbatti brand, giving us a 100% share of voice in the category. Feedback has been positive, as our agarbatti with Renofluthrin is more effective than current options, including illegal ones. Consumers appreciate the reduced smoke and pleasant fragrance, and we are pleased with the product’s reception and progress.
Lightbox has been fantastic, producing 100% of GCPL’s advertising in India and nearly all globally, from Latin America to South Africa and Indonesia. Lightbox’s approach brings creativity closer to brand problems without external pressures. We emphasize on quality briefs, insights, and creativity, pushing Lightbox to deliver its best work. The team has found this freeing, and we’re very pleased with the results so far.
It’s less about whether the function is insourced or outsourced and more about how close you want creativity to be within your business. By creating an inclusive culture, the creative team feels they belong, can contribute, and are part of the process alongside brand marketers.
We don’t prioritize specific media for our advertising. Instead, we follow reach-based planning to fund campaigns that reach the most relevant consumers within budget. While TV remains the most cost-effective and scalable medium for our large brands, digital spending is increasing. This is driven by affluent consumers using smart TVs and OTT platforms and also by lower-income consumers accessing video content on smartphones with high-speed data. Additionally, we use wall paintings to reach rural India and a large door-to-door programme to promote product samples and drive penetration in various categories.
The festive season is important to us, so there will be some campaigns. We invest in line with where consumers are. So, some of our categories are seasonal, for example, insecticide is a seasonal category, and spends go up during the season. Similarly, air care, which is a category used when guests come over also sees an uptick. So, during the festive season, those categories do well, and their spends will be in line with how we feel the consumer will behave in that period.
Ashwin Moorthy is a dynamic marketing and advertising professional with over 10 years of experience in media, marketing, and sales within the consumer products industry. As the Chief Marketing Officer at Godrej Consumer Products Limited (GCPL), he is responsible for driving the company’s marketing strategy, brand management, and digital transformation initiatives.
Godrej Consumer Products is a leading company in emerging markets, ranked among the top players in Household Insecticides, Air Care, and Hair Care in India, Indonesia, and Africa. The company is the leader in Household Insecticides in India, the second largest player in Indonesia, and is expanding its presence in Africa.
Creative Agency: LightBox
PR Agency: Adfactors PR
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