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Motilal Oswal Report
We met the management of Godrej Consumer Products Ltd. for an update on the business and its strategy. Here are the key takeaways:
Creating relevance has been identified as the first step in deepening penetration in Godrej Consumer's categories. The company's marketing spends have historically been under-indexed versus its peers, but recent quarters have seen an uptick in advertising and promotion spends. The goal is to continue investing in marketing, even at times of volatile input costs, with market development at the forefront.
Innovation will now be a focused process, with fewer disruptive innovations in Godrej Consumer's core categories. A recent example has been the launch of the magic body wash that comes in a gel-to-liquid format and follows the successful launch of magic hand wash.
The new Chief Executive Officer views the complexity of operations and structure as cumbersome, and is working towards streamlining various business processes.
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