Chapter 20 (Detergents).ppt

Marketing in Practice Detergent Powders
Industry Structure
 Market
 Per capita consumption: 3.2 Kg
 Industry growth rate: 6-8% per
annum
World’s third largest detergent market
Total detergent market: Rs 6000 crore
Detergent powder: Rs 3300 crore
23 lakh tonnes/ annum
Other forms:
Detergent bars (43%)
Liquid detergents
Compacts
3300 crore
55%
6000 crore

Industry Structure
 National Sales
Distribution
• Urban – 60%
• Rural – 40%
38%
28%
18%
16%

Industry Structure
Detergent Demand in India (th MT)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
 Strong and consistent growth

Industry Structure
 Very high penetration
 Growth
• Upgradation from bars
to powder
• Increasing per capita
consumption
• Increasing use of
premium powders

84%
14% 2%
Popular Economy Premium
Industry Structure
 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, Check
- Rs 18-22
• Compacts
•T

Industry Structure
 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
42%
21%
7%
4%
12%
14%
HLL
Nirma
R&B
Henkel SPIC
P&G
Others

Industry Trends
 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 due to drop in unit price.
 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.
 P&G has chosen an expans‫ﭩ‬绿ｷ럿strategy by lowering prices.
 HLL trying to build brand loyalty for Surf by innovative ad
campaign.

Consumer Behaviour
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 nature of detergent business that is forcing
players to fall in line with lower prices superior quality detergents at
an affordable price
Between two segments:
 With price cuts, upgradation
 With slowdown, downgradation

Major Players
 Premium
• Surf Excel
• Ariel
• Henko Stain Champion
 Economy/Mid Priced
• Tide
• Rin Shakti
• Henko Mr. White
 Popular
• Nirma
• Wheel

Positioning Map - Detergents
Price
Cleaning Power
Whiteness
Concentrates
Economy
Popular

Surf Excel
 ‘Surf’ launched in 1959: first in Indian detergent market
 Surf Excel launched in 1992
 Complete migration of Surf to Surf Excel Blue in 2004
 Premium segment: Market leader
 Positioned as very effective with any kind of stains: ‘Surf Excel Hai Na’
• Less effort in cleaning and lower water consumption
 Focus on building brand loyalty through emotional connect: ‘Daag Acche
Hain’campaign
• Positioned against generic hate stains attitude
• Assurance: Go ahead and get dirty
• Latest campaign: Colour
 Variants:
• Surf Excelmatic: Specially for washing machines
• Surf Excel Blue: Stain removal with fabric care (midpriced segment)
• Surf Excel Liquid: Liquid concentrate

Ariel
 Launched by P&G in India in 1991
 First to bring compact detergent technology
 Premium: Positioned as a stain remover that is easy to use
P&G: Slashing prices of Ariel to expand its consumer base, more
affordable.
 Two variants, Ariel Spring clean and Fresh clean (scented)
 “A to Z daag ke liye jo de taaza khushboo”.
• A man cooks dinner for his wife, who is away. He stains his shirt in the
process, but uses Ariel to remove the stain
• Key emphasis: Ease of use, fragrance, stain removal
 Target segment: Women, age group 25-35 years
 Variant: Ariel Front-o-Mat (front loaded washing machines)

Henko Stain Champion
 Launched in ’94 in the South: Direct competition to Surf
 Top end premium: Market share ~9%
 Focused on stain removal (highest order need for Indian consumer):
Pre-treater powerpearls (proprietary technology)
 High-on-quality, relatively low-on-price proposition
 Earlier campaigns: Positioning Henko as a better option (usage of
Surf was more a habit than conviction)
• Celebrities; Freebies; Regional association to strike emotional chord
 “Iske power pearls kapro mein geheraee tak jaye aur daag ko jar se
nikal”
• Focus on product performance superior as compared to rivals
• Technological aspect: No social/emotional angle as such

Tide
 Launched in 2000: Mid priced ; Price cuts: moved to
popular
 “Fastest growing and one of the most deeply penetrated
detergents in households across India” – ORG-AC
Nielsen
 Target: "superior whiteness" and "whiteness
maintenance" laundry needs of a homemaker in India
 “Chaunk gaye? White ho to Tide ho…”
• Showcase its cleaning power; superior whitening
• Focus on value proposition: High performance at low cost
• No emotional aspect: Beg stage of PLC
• Social consciousness of white clothes

Rin Shakti
 Re-launched in 2004 as Rin Advanced to counter Tide
 Mid-priced brand
 May lead to cannibalization of other HLL customers due to
forced price cuts of Surf Excel Blue
 “Double safedi”
• Focus on whitening: Direct competition with Tide
• Pure clean technology: Absence of residue
• Social acceptability due to white clothes
• Focus different from Surf Excel Blue: However, does not completely
eliminate cannibalization given similar prices

Henkel Mr White
 Mid priced: Market share ~14%; No 2 in segment
 Only eco-friendly detergent in its segment: not emphasized
 Promises superior product performance;unique dazzling whiteness
• Mr White - personifying the brand clearly
 Relaunched this year: enhanced formulation, a fresh new fragrance,
in an all-new pack
 “Thoda sa green thoda sa blue. Thoda sa jadoo. Mr. White. Sabse
white”.
• Social consciousness: Ensure that clothes are the whitest
• Uses expert: Research on voices of authority
• Promises the “Power of 2 - Lime + Blue”
• Focus on premium values: Good quality at a reasonable price

Wheel
 Launched in 1987 by HLL to counter Nirma
 Single largest detergent brand by value
 Popular segment: Mass market
 Superior formulation to Nirma
• Promise: Clean tough stains easily; not harmful to hands
• Lemon fragrance
 ‘Mehnat kum, phir bhi dhulai No. 1’.
• Positioned as the smart housewife’s choice for the mass market
 Introduced a fresh fragrance along with Wheel Green: “Naya
khushboodaar Wheel. Mehengi wali dhulai, budget mein samayi”.
 Premium variant: Active Wheel
• Quality Clean and Care at affordable price
• Brightness of coloured clothes, fresh fragrance

Nirma
 Caused a marketing miracle when introduced
• Targets bottom of the pyramid
• Priced 1/3rd of competitors; caused immediate trial
• Unique environment-friendly, phosphate-free formulation—
consumers become loyal
• 0% of the market share in 1976 to 61.6% of market share in 1987
• HLL launches Project STING
 Unique marketing mix: Lowest pricing, distribution
through small retailers and heavy advertising
 Communication of Value: Simple messages and catchy
jingles
 Has a variant in the premium segment
• Priced almost 40% lesser - 25g, 500g, 1000g

Future Trends
 Detergent industry set to grow at 10% per annum
 With penetration already high, growth to come largely
from:
• Upgradation from bars to powder
• Increasing per capita consumption
• Increasing use of premium powders
 Effort by firms to avoid the commoditization of the
product
 Greater stress on branding and emotional connect

Chapter 20 (Detergents).ppt

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Chapter 20 (Detergents).ppt