Godrej Consumer eyes rural India
Godrej Consumer Products Ltd, the consumer goods arm of Godrej, is slowly increasing its footprint in the country’s villages to garner larger sales from rural areas.business Updated: Feb 09, 2010 22:59 IST
Godrej Consumer Products Ltd, the consumer goods arm of Godrej, is slowly increasing its footprint in the country’s villages to garner larger sales from rural areas.
“The company is looking to expand its direct reach to 50,000 villages. We are targeting to garner around 50 per cent sales from the rural markets of India in the next two-three years,” said Rakesh Sinha, COO (marketing & operations), Godrej Consumer Products Ltd.
Rural areas account for 42 per cent of the company’s sales now.
He said the company has also been focusing on smaller SKUs (stock keeping units) —the smallest unit of a product that is bought and used by an individual — to tap a larger customer base in the rural areas.
“We are increasingly introducing smaller SKUs as people in smaller towns and rural areas are quite price sensitive. They aspire for a brand and its product but the price points are above their purchasing capacity. For instance, the company introduced Cinthol brand of soaps for Rs 5 and Rs 10 that received good response,” said Sinha.
In Tamil Nadu, the smallest soap bar of Cinthol was priced at Rs 23, which was not able to give good sales figures. However, after the company introduced Cinthol soap bars for Rs 6 it found its support from the masses. “We are planning on similar lines in other markets as well.”