Godrej made a major mistake by not capitalising on ‘No.1’
T he Godrej Group had strong roots in India’s freedom struggle. Founder Ardeshir Godrej was fanatically inspired by Gandhi’s Swadeshi movement and felt a genuine commitment towards making India economically self-reliant. Ardeshir laid the foundation of diversification for Godrej from locks to soaps in 1920. Christened as ‘No.2’ and made from vegetable oils, this soap stole the show from foreign soaps, as it respected religious sentiments by replacing animal fats from which foreign soaps were made. Moreover, it was promoted by the then freedom-fighters and renowned social reformers like Rabindranath Tagore, Dr. Annie Besant, Mahatma Gandhi et al! He later launched ‘No.1’ soap with a lingering rose perfume. The reason behind launching ‘No.2’ first and then ‘No.1’, is explained in the book ‘Godrej – A Hundred Years’ in Ardhesir’s own words, “If people find No.2 so good, they’ll believe No.1 to be even better!”
So where was the blooper? Ardeshir was a deft marketer; but he didn’t care much about minting money from the venture. So our restless protagonist moved on to newer avenues. In 1929, HLL entered and rolled out Lux in India, with the punch line ‘the beauty soap of the film stars’; followed by the entry of Pears Glycerine soap. Godrej Soap was overshadowed by these new players. Post independence, the entry of more global biggies (like Procter & Gamble), put a stymie in the success of ‘No.1’ and ‘No.2.’ Later Godrej came back to the soap arena with brands like Cinthol, but by that time, HLL was miles ahead.
T he Godrej Group had strong roots in India’s freedom struggle. Founder Ardeshir Godrej was fanatically inspired by Gandhi’s Swadeshi movement and felt a genuine commitment towards making India economically self-reliant. Ardeshir laid the foundation of diversification for Godrej from locks to soaps in 1920. Christened as ‘No.2’ and made from vegetable oils, this soap stole the show from foreign soaps, as it respected religious sentiments by replacing animal fats from which foreign soaps were made. Moreover, it was promoted by the then freedom-fighters and renowned social reformers like Rabindranath Tagore, Dr. Annie Besant, Mahatma Gandhi et al! He later launched ‘No.1’ soap with a lingering rose perfume. The reason behind launching ‘No.2’ first and then ‘No.1’, is explained in the book ‘Godrej – A Hundred Years’ in Ardhesir’s own words, “If people find No.2 so good, they’ll believe No.1 to be even better!”
So where was the blooper? Ardeshir was a deft marketer; but he didn’t care much about minting money from the venture. So our restless protagonist moved on to newer avenues. In 1929, HLL entered and rolled out Lux in India, with the punch line ‘the beauty soap of the film stars’; followed by the entry of Pears Glycerine soap. Godrej Soap was overshadowed by these new players. Post independence, the entry of more global biggies (like Procter & Gamble), put a stymie in the success of ‘No.1’ and ‘No.2.’ Later Godrej came back to the soap arena with brands like Cinthol, but by that time, HLL was miles ahead.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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