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Industry Information World’s third largest detergent market Total detergent market: Rs 6000 crore Detergent powder: Rs 3300 crore 23 lakh tonnes/ annum is manufactured Other forms: Detergent bars (43%) Liquid detergents Compacts Industry Structure Market Per capita consumption: 3.2 Kg Industry growth rate: 6-8% per annum
Industry Structure National Sales Distribution Urban-: 60% Rural-: 40%
Industry structure Strong and Consistent Growth
Industry Structure Very High Penetration Growth Upgradation from bars to powder Increasing per capita consumption Increasing use of premium powders
Categorization Washing Powder Super Lower Popular Premium PriceSurf Ariel Tide Rin Wheel Nirma Fena GhadiExcel
Category Spends500 468 452450400350300250200150100 50 17 0 2008 Print TV Total Source: MAP 2008 Period: Jan - Sep 08 All Spends in Crs
Important Markets for Category Source: MAP 2008 Period: Jan - Sep 08 All Spends in Lakhs
Consumer Behavior Consumer Behavior Across all segments: The main attributes that consumers look for in a detergent are: Value for money (how effective the detergent is in cleaning clothes vs affordability) Ease of use (must dissolve fast) – this was specific to households which do not have washing machines Apart from the cleansing action, detergents should also be easy on the skin and must have a fragrance: Ariel Spring Clean (roses), Ariel Fresh Clean (mogra) Main factor influencing consumers’ expectations: Improved affordability Ad campaigns
Consumer Behaviour Within a Segment: Very little perceived difference in a particular category and a price point Consumers are more or less indifferent among leading brands as long as prices are comparable This commoditization is forcing players with lower prices superior quality detergents at an affordable price Between two segments: With price cuts, upgradation With slowdown, downgradation
The company• Gujrat based Karsanbhai Patel• An independent detergent• Attractive package at an affordable price• Its price-based strategies have already spawned case studies in business schools across the world
NIRMA – the brand It’s the third largest detergent player selling after HUL & P&G Nirma rules in lower price segment Its market share has grown from 38% to 43% over the past years It believed in the power of positive word of mouth from satisfied users of our products
Business strategy Value for money Backward Marketing Market andCreation Integration distribution
SWOT Analysis 1. Strong brand equity developed over the years 2. Wide distribution network 3. Market leadership in detergent marketStrength 4. Highly successful initial advertising campaign 5. In 2004, Nirmas detergent approached 800,000 tonnes 1. Limited export market as compared to international brandsWeakness 2. Unable to completely penetrate in premium segment because of image 1. Export to developing /neighboring countriesOpportunity 2. Increase market share in premium segment by launching variants 1. Guerilla attack from local and independent producers 2. Broad attack from HUL and P>hreats 3. Growing income levels of India can cause shift to premium segment washing powders
Our Communication To reiterate the softer, mood uplifting emotions that Brand Nirma has always stood for since it was launched To contemporize and refresh the core of the brand without eroding its basic essence of simplicity, sincerity and joyful upliftment
On ground activity Nirma sponsors Navratri Best dressed girl is winner Presents Navratri 2009
Surf Excel,launched in 1959,is one of the oldest detergent powders in India and Pakistan. Initially the brand was positioned on the clean proposition of “washes whitest”. This is in line with the global communication platform of „Dirt Is Good‟ , which is a communication strategy of Unilever for its premium detergent products, sold under various brand names; such as Omo in Brazil and Persil in UK and France. Now the mothers have the freedom to let their kids experience life without worrying about stains.
Product It has a wide product range which includes- - Surf Excel Top Matic - Surf Excel Front Matic - Surf Excel Blue - Surf Excel Quick wash - Surf Excel Bar - Surf Excel Gentle wash
Price The pricing Strategy for Surf Excel have always been in accordance with its competitors.
16 LITRE BUCKET PACK Surf Excel quickwash 1 kg Rs. 146FREE WITH 3.3 KG SURF + Comfort fabricEXCEL BLUE conditioner 200ml Rs. 29 = Rs. 175 Pay Rs. 163*/- for the combi pack and save Rs. 12/-
Promotional activitiesPrint mediaElectronic mediaLive DemonstrationsSocial EventsDirt is good website
Catchy taglinesDirt is good: “Daag achhe hain”“Phir waqt hai khelney ka”“The machine is not guilty , use the right detergent”“Surf Excel hain na”.
Place and distributionHUL distribution network – key strength (Which helps reach out its product across the length and width of the vast country) Direct coverage in over 1 million retail outlets 7000 Stockist 2000+ Suppliers & Associates.
Distribution Network Factory Market Company Distributor Warehouses
RIN Surf Excel Surf Excel TIDE BlueWEIGHT PRICE(RS) WEIGHT PRICE(RS) WEIGHT PRICE(RS) WEIGHT PRICE(RS) 500g 35 500g 35 500g 79 750g 83 1 kg 70 1 kg 55 1 kg 154 1.5 kg 178
About the brand Tide is the name of a popular laundry detergent in the market of Canada, the United States and other countries. It is manufactured by Procter &Gamble. First introduced in test marketed in1946 with national distribution reached in 1949 Tide is the World’s Oldest & Most Trusted Detergent brand and is the Market Leader in 23 Countries around the world. The brand regularly introduces new products and technologies to beat the laundry blues
History Launched in India in mid-2000 It gives outstanding whiteness due to its deposition global technology Anti-redeposition Agents help keep soils from re-settling on clothes after they have been removed duringthe wash itself It offers solution to virtually any stain
Understanding IndianEnvironment The Indian laundry market is estimated to be Rs 5,000crore in size Making India world’s third largest detergents market. Detergent bars comprise 43per cent of the total market and detergent powders comprise the balance 57 per cent. However, the detergent bar market is shrinking in India.
Understanding IndianEnvironment Consumer research indicates- Indian women take decisions regarding home products In many houses, people even use Tide bars to wash their cooking utensils She wants maximal value from her brands She believes that one of the ways she can contribute to the family is by making the most of her budget They use these bars for the results and the quality of wash they get Indians love tough and long lasting things in all our choices
Products The brand offers products under six different concepts namely- Tide power detergents, Tide liquid laundry detergents, Tide stain release, Tide to go, Tide washing machine cleaner, Tide laundry care accessories
Promotion Worldwide it exhausts benefits of both the print and electronic media. It uses Information Technology to derive benefits of many new advertising opportunities This is done mainly for product improvements The product variations are neatly classified, ensuring easy navigability
Promotion in India The campaigns have a desi touch and are well executed. TV and radio advertising are important channels to promote Tide which involves a good opening punch line Advertisements have a good recall value.
How Distribution Channel Works
Prices in India India is a price sensitive market. It uses cost plus pricing strategy The laundry market is classified into premium (Surf, Ariel), mid price(Rin, Henko, Tide) and popular segments (Nirma, Wheel, Mr. Clean) . The price charged for products low in order to gain market share Rs. 5 for a 75gm bar Rs. 35 for a 500 gm Rs. 70 for a 1 kg Rs. 140 for a 2 kg
Place Tide detergent is manufactured by a Kochi based third-party. The product is available at kirana stores, big retail outlets, convenience stores.
Wheel World’s largest selling detergent in volume terms Wheel is the largest brand in the Hindustan Lever portfolio. Wheel is the tenth largest FMCG brand in India Wheel is the largest detergent franchise across the fabric wash category in India
Unknown Facts Unknown Facts If Wheel were to be a standalone company it would rank 228 on the ET 500. CEO, HUL Unilever manufactures enough Wheel detergent to wash every garment in India for 45 days.
Products Wheel Lemon Power Active Wheel Lemon & Orange Active Wheel Bar Active Wheel Gold Active Wheel Powder Foam
Price MRP of Wheel Active Powder brought down from Rs 75 to Rs 67 on a 2 kg pack. Rs 10 pack of Wheel Active has been raised to 275 gm from 250 gm. 275 gm and 560 gm Wheel Green detergent powder to 300 gm and 600 gm
1991-1994 Un organized Market Competition with Local Player Establishing Rural Distribution Center Grew strong customer base in Maharashtra and MP
1995-1997 Established sales channels through thousands of small storefronts Subsequently achieved better return than higher-end cleaning products. Strong hold at Karnataka, Bihar, MP, Maharashtra, Part of Gujarat
Place 34,000 distribution outlet opened in 34,000 villages 12.56% in volume in India 25% of HUL’s total sales in volume
Door-to-Door Promotion Colorful Flyers Posters Street performances Jingles Travelling Cinema Video Van Adds Magicians Singers & Dancers
Market share HLL is the largest player. Operates in all segments Nirma leader in the popular segment P&G present in the economy and premium segments
Recommendations Industry Detergent market has good penetration – but slow growth Saturation hits urban areas Bar form of detergents are losing out. Premium quality synthetic detergents are experiencing growth. Compact detergents meant for washing machines are getting slow entry. Price competition among major manufacturers getting more intense. South India offer good potential and growth. HLL trying to build brand loyalty for Surf by innovative ad campaign.