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Transcript of Detergent
Detergents
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
Marketing in Practice Detergent Powders
Industry Structure
National Sales Distribution• Urban – 60%
• Rural – 40%
38%
28%
18%
16%
Marketing in Practice Detergent Powders
Industry Structure
Detergent Demand in India (th MT)
0200400600800
100012001400160018002000
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
Marketing in Practice Detergent Powders
Industry Structure
Very high penetration Growth
• Upgradation from bars to powder
• Increasing per capita consumption
• Increasing use of premium powders
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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럿 strategy by lowering prices. HLL trying to build brand loyalty for Surf by innovative ad
campaign.
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
Major Players
Premium• Surf Excel• Ariel• Henko Stain Champion
Economy/Mid Priced• Tide• Rin Shakti• Henko Mr. White
Popular• Nirma• Wheel
Marketing in Practice Detergent Powders
Positioning Map - Detergents
Price
Cleaning Power
Whiteness
Concentrates
Economy
Popular
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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)
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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
Marketing in Practice Detergent Powders
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