The document provides an overview of the detergent industry in India. It discusses that the total detergent market in India is Rs 6000 crore with detergent powder being Rs 3300 crore. It also discusses industry segmentation, major players like HUL, Nirma and their market shares. Popular brands in different price segments like Surf Excel, Ariel, Wheel, Nirma are also mentioned along with their marketing strategies.
2. 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
5. Industry Structure
Very High Penetration
Growth
Upgradation from bars to powder
Increasing per capita consumption
Increasing use of premium powders
6. Industry Segmentaion
Detergent powders segmentation
Premium
Surf Excel, Ariel, Henko (Surf Excel + Ariel ~ 90%)
Rs 75 per Kg
Economy
Henko White, Rin, Tide, Sunlight
Rs 35-50 per Kg
Popular
Nirma, Wheel, Ghadi
Rs 18-22
7. Categorization
Washing
Powder
Super Lower
Popular
Premium Price
Surf
Ariel Tide Rin Wheel Nirma Fena Ghadi
Excel
8. Category Spends
500 468
452
450
400
350
300
250
200
150
100
50 17
0
2008
Print TV Total
Source: MAP 2008
Period: Jan - Sep 08
All Spends in Crs
9. Important Markets for Category
Source: MAP 2008
Period: Jan - Sep 08
All Spends in Lakhs
11. 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
12. 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
13.
14. 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
15. 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
16. Business strategy
Value for
money
Backward Marketing
Market
and
Creation Integration distribution
17. SWOT Analysis
1. Strong brand equity developed over the years
2. Wide distribution network
3. Market leadership in detergent market
Strength 4. Highly successful initial advertising campaign
5. In 2004, Nirma's detergent approached 800,000 tonnes
1. Limited export market as compared to international
brands
Weakness 2. Unable to completely penetrate in premium segment
because of image
1. Export to developing /neighboring countries
Opportunity 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&G
Threats 3. Growing income levels of India can cause shift to
premium segment washing powders
22. 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
24. On ground activity
Nirma sponsors Navratri
Best dressed girl is winner
Presents
Navratri 2009
25.
26. 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.
27. 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
28. Surf Excel Quick Wash Surf excel blue
Detergent Powder
Surf excel gentle wash
surf excel bar Surf Excel Matic Top Load
29. Price
The pricing Strategy for Surf Excel have always
been in accordance with its competitors.
30. 16 LITRE BUCKET PACK Surf Excel quickwash 1 kg Rs. 146
FREE WITH 3.3 KG SURF + Comfort fabric
EXCEL BLUE conditioner 200ml Rs. 29 = Rs. 175
Pay Rs. 163*/- for the combi pack
and save Rs. 12/-
34. Catchy taglines
Dirt is good:
“Daag achhe hain”
“Phir waqt hai khelney ka”
“The machine is not guilty , use
the right detergent”
“Surf Excel hain na”.
35. Place and distribution
HUL 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.
37. RIN Surf Excel Surf Excel
TIDE
Blue
WEIGHT 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
38.
39. 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
40. 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
41. Understanding Indian
Environment
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.
42. Understanding Indian
Environment
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
43. 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
44. 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
45. 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.
47. 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
48. Place
Tide detergent is manufactured by a Kochi
based third-party.
The product is available at kirana
stores, big retail outlets, convenience
stores.
49.
50. 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
51. 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.
52. Products
Wheel Lemon Power
Active Wheel Lemon & Orange
Active Wheel Bar
Active Wheel Gold
Active Wheel Powder Foam
53. 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
54. 1991-1994
Un organized Market
Competition with Local Player
Establishing Rural Distribution Center
Grew strong customer base in Maharashtra and MP
55. 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
56. Place
34,000 distribution outlet opened in 34,000 villages
12.56% in volume in India
25% of HUL’s total sales in volume
57. Door-to-Door Promotion
Colorful Flyers Posters
Street performances
Jingles
Travelling Cinema
Video Van Adds
Magicians Singers
& Dancers
58. 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
59. 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.