B2B Marketing Strategy at

Godrej Interio
Gr ou p 4
Anshoo Saini 15PGP008
Shipra Singh 15PGP047
Ta n m a y Ya d a v 1 5 P G P 0 5 4
Pa v a n S a n d e e p A d a r i 1 5 P G P 0 6 3
Ru c h i Ta l l e w a r 1 5 P G P 1 1 3
Ro h i t K a w d e 1 5 P G P 1 3 3
Mu ku n d K ha t o d 1 5 P G P 1 4 2

Industry Analysis and About

About Godrej Interio

Business unit of Godrej & Boyce Mfg. Co. Ltd.-part of
the Godrej group(www.godrejinterio.com)
Indias largest furniture brand
50 exclusive showrooms in 18 cities with 800 dealers
across India
200 exclusive retailers, in which 51 are COCO rest are
franchise stores
A new retail channel in Pune and named it as U&US
home design studio
Offerings can be broadly classified into:
Retail office and home furniture
Contract Manufacturing

Product line
B2C
Home furniture
Home accessories
Storage

B2B

Solutions for Laboratories

Hospitals and Healthcare establishments
Education and Training Institutes
Shipyards and Navy
Auditoriums and Stadiums

37,000 stock keeping units across 17 categories

Home

Office

Bedroom
Living
Room
Study
Room
Dining
Room
Kids Room
Kitchen
Mattress
Home
Accessori
es

Desking
Workstati
ons
Seating
Storage

Special
Solutio
ns
Laborato
ry
Furniture
&
Engineeri
ng
Solutions
Marine
Solutions
Healthcar
e

Carpet
s

Interio
rs

Export
s

Industry Analysis
Bargaining Power of
Suppliers Low

Barriers to Entry Low

No legal or regulatory barrier

However becoming a leader is
No differentiation in raw material
difficult extensive distribution
supplied
and economies of scale
Industry
Industry Rivalry
Rivalry
Moderately
Moderately competitive
competitive
Wipro,
Wipro, Vista,
Vista, Featherlite,
Featherlite,
Zuari,
Alder,
Zuari, Alder, Durien,
Durien, and
and
IKEA(or
even
Pepperfry
IKEA(or even Pepperfry and
and
UrbanLadder)
UrbanLadder)
Bargaining

Threat of Substitutes
Low
Since this covers all kinds of
furniture catering to various
market segments,

Power of
Buyers High

New players offering more

innovative products and services
Moderate Price sensitivity
Zero switching cost

Market Analysis

Market Analysis
Sales

Market Size Rs 58,000 crore

3 tier S & D model: distributor, wholesaler, retailer
Concentrated in A, B , C category cities (top 589
cities)
Home furniture

Office furniture

Contract
segment

15%
85%

largest segment with 65% sales

Consumers affluence a major factor
High-end home furniture, catering to the upper
middle class and affluent urban households.
number of such households increasing at about a
10 per cent CAGR
20% of total sales
Real estate and office construction major avenues
Demand for office space in India expected to grow
at a CAGR of 20 per cent over the next 3-5 years
Accounts for 15% of sales
Caters to hotels and other institutional bodies

Organised
Unorganised

Market Share of Godrej Interio

Current market share : 8%
Want to surpass the Rs 2,000-crore mark with a 20
per cent growth
During 2015-16, the company's revenue stood at
around Rs 1,930 crore
Growing at about 23% for the last three years

Clientele for B2B segment of Godrej Interio

Client
Segments

MNCs

PSU

Large
Corporation
s

Arcelor
Mittal
Lubrizol
Aventis
Schawk
Honeywell
TCS

IFFCO
NTPC
BHEL
GAIL

Reliance
M Junction
Vedanta
ITC

Governmen
t
Organisatio
n

East Coast
Railway
Bombay High
Court
Nagpur High
Court
Charity
Commissioner

Sports
Bodies

BCCI
Mumbai Cricket
Association
Indian Premier
League (IPL)

Total Cost ownership & Value creation

at

Total Cost of Ownership by Godrej

Pre- Sales:

Total Cost of
Ownership

After - Sales:

One Stop Solution-

Annual Maintenance Contract-

Focus on providing the best

solution to the customers rather
than going for push strategy.

They generally provide one year

warranty to the client and apart
from that they also provide
AMCs for a period of 2-3 years.

Demo After enquiry generation from

the client, they provide demo
presentations so as to make
sure that the client get complete
satisfaction with what they are
going to have.

Free service Check Up Considering the relationship

they share and based on
account volumes, they also
provide free service check ups.

Value Creation of Godrej

Value Exploration

Dealers representative along with a Sales

executive visit the site and take MEASUREMENT.

Value Creation

At Back office, using software tools, experts

come up with the designs using the taken
measurement and form presentation or print
outs and present them to the client.

Value
Communication

They sit with the prospective clients and pitch

them with the designs which the experts have
come up with.

Value Delivery

Chart out order schedule with the client after

confirmation of the order and also decide the
after sales service being provided by the
company along with Dealer Service Engineers
(DSE)

Value Capture

Pricing is DYNAMIC in B2B scenario and being

quoted based on the variation from the
standardized product.

Channel Management
at

Channel Management
Based on conversation with Goutam Das,
Senior Manager - Marketing- Mumbai
Godrej Interio:
Channel partners have detailed contract laid out with
clear territory allocations.
Channel conflict (specifically horizontal) is not common
and if any is dealt by sales reps and managers through
relationships; if required warnings is also given

Channel Management
The channel management process of the company:
Sales process at Godrej Interio
Lead
Generati
on

Lead
Qualificatio
n

Bid and
Proposal

Negotiati
on &
Sales
closure

Fulfillme
nt

Custome
r Care &
Support

Channel motivation

Taking them for company

sponsored tours
Forming advisory council
Building trust
Best distributor awards.

Trade discounts are offered

for better performing
distributors.
All India meets of top 50
distributors where they share
time with the Godrej Interio
top management

Channel Management
Role of Channel Manager
Support sales team

New product dev. & PLC

management

Market analysis for latest consumer

trends
Work closely with
sales/product/branding/
supply chain verticals
Channe
to ensure timely
l
completion of the
Manage
display centers with
r
strict adherence to
Godrej interio brand
guidelines

Competition Mapping & Order Lost

Analysis
Product Management & Range
Rationalization

Drive sales at dealer channel

through ATL/BTL activities to
get brand visibility &
conversion
Develop cordial professional
relationship with architects/
interior designers/
contractors/ association
heads of key industrial areas
for promoting products
Promote Express Delivery
Programme (EDP)
Increase revenue from
ecommerce sites (indiamart)

Distributor selection
Ware house area : min 3000 Sq ft.
Financial
Capabiliti
es

Warehous
e
Capacity

Show Room area : min 4500 Sq ft.

Approx Territory Covered : 4-5 Km
radius.

Market
Reputatio
n

Exclusivit
y

Security deposit of 2L to 8L.

Selection is done majorly through
scouting

ERP Usage
at

ERP at Godrej Interio

Streamlining & monitoring end-to-end business Speedy search of the design data, reduced
processes and support decision-making
Implemented BaaN ERP system to monitor end-

paper based documentation, design data

access to the cross-functional roles Plus, it
has automated engineering changes, and

to-end business process

Windchill PLM solution has been deployed along
with the existing BAAN ERP.

provided better synchronization of design

data with the ERP data.

Overview of the INFOR LN system

CRM
Contact Mgmt..
Lead Tracking
Opportunity
Tracking
Sales
forecasting
Campaign
Mgmt..

Sales & Order

Mgmt.
Quote/Order
Mgmt.
Pricing/Commiss
ions/Discounts
Order
configuration

Supply Chain
Mgmt.
Sourcing
Procurement
Inventory Mgmt.
Shipping &
Receiving
EDI
Barcoding

ERP at Godrej Interio

Enterprise
Planning
Forecasting
Item plans
Channel planning
Scheduling
Project Mgmt.
Quoting &
Estimation
Billing & Accrual
Earned value
prop.
Engineering
change notice
Master Data
Mgmt.
Forecasting
Item plans
Channel planning
Scheduling

Service Mgmt.
Warranty
Call center mgmt.
RMA Depot repair
Mobile service
Product Mgmt.
Serial/Lot control
Prod.
configuration
Product costing
Ship floor control
Plan maintenance

Human Capital
Mgmt.
Human resources
Payroll

Performance
Mgmt.
Home pages
Business
intelligence
Fin reporting
Planning &Mgmt.
Financial
Budgeting
Fixed assets
Expense mgmt.
Inventory costing
Project accounting

Event mgmt. &

Config. platform
Workflow
Real-time alerts
Notifications

Godrej Interio Takes Virtual Interior Design to New Heights with Dassault
Systemes

Data Mining Techniques

at

Data Mining Techniques

CAPA (Corrective and Preventive Actions)
1. Verify that CAPA system procedure(s) that address the requirements of the quality system regulation have
been defined and documented
2. Determine if appropriate sources of product and quality problems have been identified.
3. Determine if sources of quality information having unfavorable trends have been identified.
4. Challenge the quality data information system. Verify that the data received by the CAPA system are
complete, accurate and timely
5. Determine if results of analyses are compared across different data sources to identify and develop the extent
of product and quality problems
6. Determine if failure investigation procedures are followed
7. Determine if appropriate actions have been taken for significant product and quality problems identified from
data sources
8. Confirm that corrective and preventive actions do not adversely affect the finished device.
9. Verify that corrective and preventive actions for product and quality problems were implemented and
documented
10. Determine if information regarding nonconforming product and quality problems and corrective and
preventive actions has been properly disseminated for management review

Lost-order analysis

Organizational Buying Behaviour

at

General Need Description and Product Specification

New Customer
It is generally a new task.
Enquiry generated by the client by calling nearby dealers or
through godrejinterio.com.
To be followed up by Dealer or Godrej Interios sales
executives.
The client organization comes out with its own specifications
or,
Asks Godrej interio Sales executives to take measurements
and present solutions.

General Need Description and Product Specification

Existing Customer
Generally, a straight or modified re-buy
Godrej interios Sales Executives and dealers get involved at this stage
only and offer pre sales consultancy.
Enquiry generation from clients side or,
Regular Visits by Dealer or Companys sales executive.
Follow up with Contact Person in the Client Organization.
Sales Executives leverage relationship to:
Incorporate Specifications suiting their product portfolio.
Incorporate Certification compliances which their competitors do not
possess.

Proposal Solicitation by Godrej Interio

At this stage, the client either requests for
quotes for tendering process through dealer
calls and Print Media or

Pursues Direct Buying and directly asks

Godrej Interio for Price Quotes.

If tendering, Technical Specifications and

Price quotes are submitted by the Sales
Executives.

Supplier Selection at Godrej Interio

Tendering

Direct Buy

Technical Bid:
Shortlisting of vendors
on the basis of best
technical specs

Client Negotiates
with GI on price and
discounts

For existing customers,

GI has a competitive
advantage at this
stage

Offers contract to GI

Price Bid: The lowest

bidder L1 is offered the
contract.

Brand and continued

relationship are major
reasons for Direct Buy

Supplier Selection at Godrej Interio

Order Routine Specification:

After GI receives the order, the delivery schedules are negotiated and
documented.
GI is highly known for meeting its delivery deadlines.

Performance Review:

GI receives regular feedbacks from its Clients regarding the products and after
sales service through sales executives.
It also conducts market researches to gain insights into institutional buyers
decision making process.

Sales Process
at

Sales Process
The Sales executives and Sales Managers get the leads or file
tenders for the deal
Enquiry &
Lead
Generatio
n

Customize
d design
layout

Design
engineers
Involveme
nt

The right
product is
suggested
using a
presentati
on

Pricing Strategy
at

Pricing
A company regulated catalogue is present which specifies the prices for
each model
Generally a standardized product is used, which is selected based on the
space & the layout
The prices are also standard
Customization is done for specific clients if they ask for it & if the standard
goods do not fit the layout.
Pricing is done based on:
Competition Faced other vendors like home town & IKEA
Relationship with the Customer - Discounts
Mode of Purchase All Cash, EMI & Payment cycles

Basis for Pricing

Direct
Discounts based on
Mutual Understanding
Discounts for Key and
long relationship
customers

Indirec
t
Customized pricing
based on volumes and
submit tender.
Dealers margin are
generally 18% but it can
go till 6% (Minimum
Retention) at times
during high discounts
being given to the client
due to competition faced.

Customer Discount Sanction

If tenders are filed and the discounts amount to less
then the required margins

Sales Executives need to raise it through

internal portal, where they put the following
details:
Business
volume

Previous
business with
the client

Relationship
being shared
with the
client

And it needs to be sanctioned by the

following
Branch Head

Regional
Head

Marketing
Headquarter
(HO,
Mumbai)

Why the
discount is
required

Buyer-Seller Relationships
at

Buyer Seller Relationships

There are 3 types of Buyer-Seller Relationships
Transactional Relationships
Collaborative Relationships
Value added Relationships
The buyer-seller relationship evolves across 5
stages:
1. Pre-relationship stage
2. Exploratory stage
3. Development stage
4. Stable stage
5. Final stage

Long-term mutually benefiting relationship

Buyer Seller Relationships

There are 2 basic buyer seller relationships -

Client relationships

Types
Types of
of
relationships
relationships

Client
Client
Relationship
Relationship
s
s

Dealer
Dealer
Relationship
Relationship
s
s

o The sales representatives do some sales through nodal agencies like

PWD & other govt. agencies.
o They achieve these sales by the means of participation in trade shows
& organising seminars.
o Regular visits to the clients periodic greetings on festivals like Diwali.
o They also sponsor some events of some of the educational institutes
to maintain the relationship.

Buyer Seller Relationships

Dealer relationships
GI conducts Annual Dealer meets where the top
performing dealers get a reward of an all expenses
paid trip to a destination abroad.
GI conducts regular dealer visits in the following
manner A Category Dealers(>2 crores in revenue)
Up to 2 visits per month by Godrej representatives
B category Dealers(<2 crores in revenue)
At least 1 visit per month by the Godrej

representatives.

Marketing
By

Marketing
Mass customisation - where there are products with standard shapes
and sizes with customised exteriors and colour shades.
Ex.- Special mattresses range for hotels & hospitals,
Bamboo furniture etc.
One-stop solution wide range of products
GIs major marketing efforts in the B2B space are realized by the
means of providing the customers with specially designed
catalogues & customized presentations to clients
Occasional direct marketing is also observed @ GI

Marketing @GI (Catalogue)

Exclusive series for offices government institutions and other
organizations

Performance Review
at

Performance Review
KRA Key Responsibility Areas
Regular quarterly review 4 times a year || Final review & Grading
end of the year

Meeting Sales Target

Measurement of number
of wins and sales amount
over the specific time
period
Comparing with the
target & past performance
Revenue from Projects
Project A task to be
executed within a
stipulated time Ex:
Furniture solutions for a
new building coming up for
Airport Authority of India

Revenue from Key

Accounts
Should maintain a
minimum % of revenue
from the major key
accounts
Comparing with the past
performance
Revenue from Nodal
Agencies
Nodal agencies
Government departments
which place the order on
behalf of some government
institutions

Performance Review
Channel Management
Wholesale Dealer management
Coverage check
Are the dealers covering all the customers in a
territory?
Do they follow up regularly?
In a Month,
A-Category Customer- Visit twice||B-Category
Customer- Once
New account generation
How many new accounts have they generated at
the end of each year?
Also includes appointment of new dealers.

Performance Review
Working Capital Management
Regular follow up till the payment is
made
Outstanding payment within norms
Within 6 months from the bill date
of sales
Inventory or Stock within norms
Should also ensure whether inventory
pile up with the dealers is within norms.

Challenges Faced
By

Challenges Faced By GI Sales

Reps
Pricing Competitors are ready to reduce the price as
low as possible
Settlement of payment Payment delays government
institutions
Out of stock situation OOS is common at dealers end

Recommendations
Should have in between delivery points for B2B furniture as well.
Transportation from Mumbai incurs lot of delays.
Proper and timely information exchange between HO, branch office
and dealers can also improve out of stock situations.
Increased focus on post sales service to retain existing customers .
The dealers need to be more responsive to the post sales issues
reported by the client (before and after installation).
These create points of differentiation for GI which is the only way
to counter low prices offered by competitors.

Learning
Knowledge about end-to-end B2B sales process by one of the market
leaders and how they have sustained their position
How Godrej Interio creates, deliver and communicates value
How companies and their processes evolve during dynamically changing
environment
Usage and benefits of ERP in B2B context
GI does not have high channel conflict, this indicates robustness in their
processes
Measuring performance effectively
Insights on
Pricing strategies
Fostering buyer-seller relationships
Supplier and dealer selection process

Click icon to add picture