Detergents
BY :- Akshay Dhamankar
Abdullah Chunnawala
Annesh Shetty
Karan Bhagat
Rachit Shiv
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
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
Categorization


                                       Washing
                                       Powder



         Super                                                   Lower
                                 Popular
        Premium                                                   Price



Surf
                  Ariel   Tide             Rin   Wheel   Nirma            Fena   Ghadi
Excel
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
Important Markets for Category




                             Source: MAP 2008
                             Period: Jan - Sep 08
                             All Spends in Lakhs
Market players
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
                                 and
Creation       Integration   distribution
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
Consumer products
 Soaps
 Detergents
 Edible Salt
 Scouring Products
Detergents

 Nirma Washing Powder
 Nirma Detergent Cake
 Nirma Popular Detergent Powder
 Nirma Clean Dish Wash Bar
 Nirma Bartan Bar
 Super Nirma Detergent Cake
 Nirma Popular Detergent Cake
Price

 Super Nirma Blue 5oo Grams -:   32 RS
 Nirma Popular -: 30 Rs
 Nima Green Powder-: 28 Rs
 Nirma Shakti Detergent powder-: 20 Rs
Agency Handling Nirma


 Creative & Media Agency - Purnima Advertising


 Latest Agency - Taproot
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
Target Market


 Female 25 +
 Housewifes


 Market:
    Gujarat,    Rajasthan,      Uttar    Pradesh,   Madhya
     Pradesh, Chattisgarh and Jharkhand
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
Surf Excel Quick Wash                            Surf excel blue
Detergent Powder




                        Surf excel gentle wash




     surf excel bar                        Surf Excel Matic Top Load
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. 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/-
Promotional activities

Print media

Electronic media

Live Demonstrations

Social Events

Dirt is good website
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”.
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.
Distribution Network




                 Factory




                 Market




     Company
                           Distributor
    Warehouses
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
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 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.
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
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.
Rachit s04

Rachit s04

  • 1.
    Detergents BY :- AkshayDhamankar Abdullah Chunnawala Annesh Shetty Karan Bhagat Rachit Shiv
  • 2.
    Industry Information  World’sthird 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
  • 3.
    Industry Structure  NationalSales Distribution  Urban-: 60%  Rural-: 40%
  • 4.
    Industry structure  Strongand Consistent Growth
  • 5.
    Industry Structure  VeryHigh Penetration  Growth  Upgradation from bars to powder  Increasing per capita consumption  Increasing use of premium powders
  • 6.
    Industry Segmentaion  Detergentpowders 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 forCategory Source: MAP 2008 Period: Jan - Sep 08 All Spends in Lakhs
  • 10.
  • 11.
    Consumer Behavior  ConsumerBehavior 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  Withina 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
  • 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 – thebrand  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
  • 18.
    Consumer products  Soaps Detergents  Edible Salt  Scouring Products
  • 19.
    Detergents  Nirma WashingPowder  Nirma Detergent Cake  Nirma Popular Detergent Powder  Nirma Clean Dish Wash Bar  Nirma Bartan Bar  Super Nirma Detergent Cake  Nirma Popular Detergent Cake
  • 20.
    Price  Super NirmaBlue 5oo Grams -: 32 RS  Nirma Popular -: 30 Rs  Nima Green Powder-: 28 Rs  Nirma Shakti Detergent powder-: 20 Rs
  • 21.
    Agency Handling Nirma Creative & Media Agency - Purnima Advertising  Latest Agency - Taproot
  • 22.
    Our Communication  Toreiterate 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
  • 23.
    Target Market  Female25 +  Housewifes  Market:  Gujarat, Rajasthan, Uttar Pradesh, Madhya Pradesh, Chattisgarh and Jharkhand
  • 24.
    On ground activity Nirma sponsors Navratri  Best dressed girl is winner Presents Navratri 2009
  • 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 hasa 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 QuickWash Surf excel blue Detergent Powder Surf excel gentle wash surf excel bar Surf Excel Matic Top Load
  • 29.
    Price  The pricingStrategy for Surf Excel have always been in accordance with its competitors.
  • 30.
    16 LITRE BUCKETPACK 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/-
  • 32.
    Promotional activities Print media Electronicmedia Live Demonstrations Social Events Dirt is good website
  • 34.
    Catchy taglines Dirt isgood: “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 HULdistribution 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.
  • 36.
    Distribution Network Factory Market Company Distributor Warehouses
  • 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
  • 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 inIndia 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  TheIndian 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  Consumerresearch 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 brandoffers 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 itexhausts 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.
  • 46.
  • 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 detergentis manufactured by a Kochi based third-party.  The product is available at kirana stores, big retail outlets, convenience stores.
  • 50.
    Wheel  World’s largestselling 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  UnknownFacts 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 LemonPower  Active Wheel Lemon & Orange  Active Wheel Bar  Active Wheel Gold  Active Wheel Powder Foam
  • 53.
    Price  MRP ofWheel 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 organizedMarket  Competition with Local Player  Establishing Rural Distribution Center  Grew strong customer base in Maharashtra and MP
  • 55.
    1995-1997  Established saleschannels 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  ColorfulFlyers Posters  Street performances  Jingles  Travelling Cinema  Video Van Adds  Magicians Singers  & Dancers
  • 58.
    Market share  HLLis 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 Detergentmarket 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.